Revised single-use plastics rules are raising concerns for ratepayers. What can cities do to help

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

Last Friday, Cal Cities provided comments for what is likely CalRecycle's last 15-day comment period on its single-use plastic rules. In a rare move last year, Gov. Gavin Newsom intervened in the rulemaking process, telling CalRecycle to redo the rules to address "affordability concerns."

The agency spent the past year revising the single-use packaging regulations. This last-minute shuffling has raised concerns among Cal Cities and other stakeholders over the unintended consequences for cities and ratepayers.

Cal Cities and others urged CalRecycle to explicitly outline how manufacturers will reimburse cities and recyclers under the new law. Under the law, manufacturers must ensure their products meet recyclability and composability targets by 2032, as well as reimburse local governments for implementation costs. Since the regulations still lack this information, local governments are entering implementation without the information they need to successfully carry out the law.

The only other opportunity for policymakers to specify this reimbursement information is in the producer responsibility plan. The Producer Responsibility Organization (PRO), which represents plastic and packaging producers in California, must send the plan to the state for approval this year. The group intends to release a draft plan, informed by consultations with cities, in mid-June.

What did Cal Cities say in its public comments?

In its comments, Cal Cities reiterated that the regulations must explicitly provide clearly defined eligible costs, reimbursement schedules, payment mechanisms, and other cost recovery components. Cal Cities also stated that enforcement on local governments must be limited: Producers, not ratepayers through their utility bills, are responsible for the costs of the new regulations.

Cal Cities expressed deep concerns with how the regulations are excluding certain materials, such as certain bioplastics, from the overall costs and design of recyclable and compostable products. This loophole will create additional costs for local governments, which must separate recyclable and non-recyclable materials in the waste stream.

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.

For their part, cities and counties must include single-use plastic materials in their collection, recycling, and composting programs. The law also requires the PRO to create a plan and an annual budget for how producers will cover the costs for local governments.

What's next?

Cal Cities will work to ensure cities receive full reimbursement for the costs associated with the program. The SB 54 Advisory Board, a legislatively formed public body with diverse representatives, is an important forum where all stakeholders can contribute to the discussions around the rulemaking processes and the planning efforts - including the PRO's responsibility plan. The next meeting is on March 20 at 10 a.m.

Cal Cities will continue to alert cities about public opportunities to gain clarity and provide feedback.