Cal Cities calls for greater protections for ratepayers in revised single-use plastics rules

By Melissa Sparks-Kranz, legislative advocate (environmental quality)

In a rare move earlier this year, Gov. Gavin Newsom told CalRecycle to redo the rules for SB 54 (Allen, 2022) to address "affordability concerns." But the new single-use packaging regulations could have unintended consequences for cities and ratepayers, Cal Cities told regulators recently.

CalRecycle closed its informal public comment period on June 3. Cal Cities and other stakeholders urged CalRecycle to explicitly lay out how cities and recyclers would be reimbursed by single-use plastics producers under the new law. This would prevent cost burdens on trash utility bills for ratepayers. Lawmakers also raised red flags regarding the revised rules.

Local governments, the backbone of waste and recycling in communities, will play an essential role in implementing SB 54. However, local governments won't know how manufacturers will reimburse them to cover the costs of the program until the rulemaking is completed. Cal Cities is urging CalRecycle to restart the formal rulemaking and adopt final regulations this year so that they can uphold the deadlines identified in the statute and continue progress on this important program.

What did Cal Cities say in its public comments?

In its public comments, Cal Cities made it clear that cost recovery for local governments must be explicitly stated in the regulations - including eligible costs, reimbursement schedules, and payment mechanisms. Additionally, Cal Cities reiterated that enforcement on local governments must be limited: Producers, not ratepayers through their utility bills, are responsible for its costs.

Cal Cities and other stakeholders also noted that the costs and design of recyclable and compostable products are foundational in the law.

How should this new law work?

The regulations are the result of a 2022 landmark law authored by Sen. Ben Allen, the former chair of the Senate Environmental Quality Committee. SB 54 requires plastic and packaging producers to reimburse local governments and recycling service providers for the costs of the program, shifting the burden from ratepayers to producers. Producers must also pay for a $5 billion fund to help clean up plastic pollution.

The regulations will create the implementation framework for SB 54 and require cities and counties to include single-use plastic materials in their collection, recycling, and composting programs. The final regulation will also require the Producer Responsibility Organization, which represents plastic and packaging producers in California, to create a plan and an annual budget for how they will cover the costs for local governments.

What's next?

Cal Cities will continue to work to protect cities in the next version of the formal regulations and ensure they receive full reimbursement for the costs associated with the program. The SB 54 Advisory Board, a legislatively formed public body with diverse representatives, serves as an important forum for all stakeholders, to contribute to the discussions around the rulemaking processes. The next meeting is Friday, June 20 at 10 a.m.