What does California's SB 54 require from a brand?
A brand that owns or licenses the brand on packaged products sold in California is a producer under SB 54, and producers had to register by June 1, 2026, through CAA, as an independent producer, or by applying for the small producer exemption. The full program starts on January 1, 2027, once CalRecycle approves CAA's program plan, and final fee rates are expected this month. Penalties can reach $50,000 per day for each violation.
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Who is a producer
SB 54 covers single use packaging and plastic single use food service ware. A producer is a person who makes a product using covered material and owns or licenses the brand it is sold, distributed or used under in California. The definition follows the brand, not where the brand is based.
What was due on June 1, 2026
California's permanent regulations were approved on May 1, 2026 and took effect when they were filed. Producers then had 30 days, which ran to Monday, June 1, to take one of three steps:
- register with CAA and submit supply data, if participating in CAA's plan
- register with CalRecycle and apply to be an independent producer
- register with CalRecycle and apply for the small producer exemption, available if gross California sales were under $1 million in the most recent year
CalRecycle runs an online system for this, the Packaging Extended Producer Responsibility System. CAA is the only producer responsibility organization approved in California.
Dates to know
- June 15, 2026: CAA submitted its draft program plan, with public comment open until August 14
- By October 13, 2026: CAA submits the final plan to CalRecycle
- October 2026: CAA is expected to publish final fee rates for 2027
- January 1, 2027: the program begins once CalRecycle approves the plan
The law also requires the program to put $500 million into the Plastic Pollution Mitigation Fund each year until January 1, 2037, paid through the producer responsibility organization.
What fees are built on
CAA published illustrative low and high fee estimates on May 1, 2026, and the final rates are expected in October. Fees are driven by how much of each material a producer supplies, so the supply report sets the invoice. California also counts plastic components, which is why component level data matters. The kits guide shows how that record is built: kits, sets and bundles in an EPR report.
What happens if a producer does not comply
CalRecycle can issue a notice of violation and an administrative penalty of up to $50,000 per day for each violation. For a first offense that is not egregious, the statute tells CalRecycle to consider a penalty of no more than $25,000 per day. A producer that follows an approved corrective action plan is not penalized for the material it covers.
The law also bars a producer from selling covered materials in California unless the producer takes part in an approved producer responsibility organization plan or has been approved as an independent producer.
Legal challenges
Legal challenges to the program are pending. Three environmental groups sued CalRecycle on June 2, 2026, and a wholesale trade group, the National Association of Wholesaler-Distributors, filed a federal suit against SB 54 the same month. The regulations are in effect while they continue.
Primary sources
- CalRecycle, Packaging EPR (SB 54): the program page, the online portal and guidance
- California Public Resources Code section 42081: the penalty rules and corrective action plans
- Circular Action Alliance, California: the program plan timeline for producers
- Packaging Dive, California approves SB 54 regulations: the three June 1 options and the plan timeline
- Verdant Law, California finalizes packaging EPR regulations: the small producer exemption and the registration paths
- Mayer Brown, SB 54 regulations take effect: deadlines and how penalties accrue
- Holland and Knight, federal court upholds Oregon's EPR law in full: the trade group's California suit and how the Oregon ruling relates to it
- Holland and Knight, California's final EPR regulations now in effect: the effective date and the regulated producers
- Buchalter, California's new plastics recycling laws: the definition of a producer
- Sidley, businesses subject to SB 54 must join the PRO: the bar on selling without a plan
- DLA Piper, California's EPR program plan: the plan and the June 2 lawsuit
FAQ
Did a brand miss a deadline if it has not registered?
The first registration date was June 1, 2026. A brand that has not taken one of the three steps is out of step with the regulation. Registration runs through CalRecycle's system or through CAA.
Is there an exemption for small brands?
Yes. A producer with gross California sales under $1 million in the most recent year can be exempt, but it still has to register with CalRecycle and apply for the exemption.
Does SB 54 apply to a brand that sells only online to California customers?
The producer definition turns on owning or licensing the brand of a product sold, distributed or used in California, not on where the brand is based. A brand elsewhere that sells to California customers can therefore be a producer.
When do fees start?
CAA is expected to publish final rates in October 2026, and the program begins on January 1, 2027 once CalRecycle approves the plan.
Who can answer questions?
CalRecycle's packaging team at packaging@calrecycle.ca.gov, and CAA's Producer Services team for reporting guidance.
This guide is general information, not legal advice. We build the packaging record, prepare and file the report each cycle and keep it current. Check your exposure to see where you stand in California and the other states, or talk to us.