A new report from the California Department of Resources Recycling and Recovery (CalRecycle) outlines practical approaches and potential investments needed to meet the state’s legally mandated source reduction targets for single-use packaging and plastics.
The publication forms a key part of California’s implementation of the Plastic Pollution Prevention and Packaging Producer Responsibility Act—commonly known as Senate Bill 54 (SB 54)—which introduces extended producer responsibility (EPR) for packaging and plastic food service ware sold in the state.
Report details actions to cut packaging waste
The 2026 An Analysis of Actions and Investments Needed to Achieve Source Reduction report (DRRR-2026-1772) identifies measures, cost actions and investment options required to reach SB 54’s source reduction requirements.
It represents the second technical component of the initial statewide needs assessment that CalRecycle must complete under SB 54.
Source reduction under the Act aims to reduce the total volume of single-use plastics and packaging sold in California. SB 54 sets binding reduction and recycling performance goals over the next decade, requiring producers to ensure smaller volumes of plastic entering the state’s economy and higher levels of recyclability and reuse.
The report examines current material flows, potential redesign strategies, and where investment may be needed to shift production and supply chains.
It also discusses options for producers and producer responsibility organisations (PROs) to fund programmes and infrastructure improvements that contribute to achieving the reduction benchmarks set in state law.
Source reduction amid statewide policy shift
SB 54 took effect to shift the responsibility for packaging waste from consumers and local governments to producers. The law requires companies that sell or distribute single-use packaging and plastic food service ware in California to participate in an EPR programme.
Producers must reduce sales of single-use plastic packaging by 25 per cent by 2032, ensure 65 per cent of it is recycled by then, and make all packaging recyclable or compostable.
The EPR framework under SB 54 also mandates annual reporting, data tracking by covered material categories and significant financial contributions from industry through the PRO.
CalRecycle’s needs assessment—including the report just published—will help determine how funds may be allocated to infrastructure and programmes to meet these targets.
Industry stakeholders have already begun preparing for compliance, including registering with the designated PRO and collecting baseline packaging data.
The report’s findings are expected to inform later stages of regulation and implementation as California refines its rules and timelines for meeting SB 54 milestones.
Implications for business supply chains and recycling
For business audiences outside California, the report signals broader shifts in packaging design, sustainability planning and regulatory compliance.
SB 54’s EPR model—one of the most expansive in the United States—encourages producers to invest upstream in material reduction and downstream in circular supply chains.
Companies operating nationally or internationally may need to adjust packaging specifications, reporting systems and supplier contracts to align with the new requirements.
The report also highlights potential financial and operational challenges, including the need for investment in new technologies, data management systems and recycling infrastructure.
Next steps include further needs assessment components from CalRecycle and ongoing regulatory rulemaking to implement SB 54 permanently. Organisations impacted by the law will watch closely as the state finalises regulations and clarifies compliance timelines.
