California鈥檚 landmark plastic pollution reduction law could deliver $32 billion in net benefits and slash plastic waste by 1.9 billion pounds, according to a new state analysis that underscores what鈥檚 at stake with the upcoming implementation of Senate Bill 54 (Allen, 2022) regulations.
SB 54 is a groundbreaking, first-in-the-nation law that forces producers to take responsibility for reducing plastic in how they design packaging, investing in effective recycling infrastructure, and paying for the waste they produce. The law aims to shift the cost and burden of reducing waste from California residents, local businesses, and local governments to the companies that produce the waste and profit from the products it delivers.
The new analysis comes as CalRecycle prepares to re-launch formal rulemaking for the law, and after the agency had been criticized for pulling back on developing and implementing SB 54鈥檚 required regulations and failing to enforce the law鈥檚 ban on polystyrene foam cups, plates, and bowls that took effect this year.
CalRecycle鈥檚 updated costs and benefits analysis associated with SB 54鈥檚 implementation estimates it will produce more than seven times the benefits than previously reported. CalRecycle transmitted the 鈥淪tatement of Regulatory Impact Assessment鈥� for SB 54 to the Department of Finance on June 30 and made it public on July 11. Among its key findings are that SB 54 will generate:
- Avoided costs (aka benefits) for California consumers and businesses of $53.3 billion, compared with $21 billion in costs. Estimated implementation costs fell by nearly 50 percent thanks to the availability of more precise data about the amount of single-use packaging and plastic foodware in the state than was available when CalRecycle completed its 2023 analysis;
- Avoided damage costs associated with PFAS in the environment and our bodies of more than $25 billion; and
- An increase of more than $14 billion in personal income.
State lawmakers who have called for strong SB 54 enforcement applauded the analysis and encouraged CalRecycle to tighten its draft regulations. A letter signed by 23 state legislators and sent to Gov. Gavin Newsom in May said the earlier draft regulations came up short of meeting the intent of the law.
鈥淭his analysis makes clear that robust implementation and enforcement of SB 54 is critical to deliver significant benefits to consumers, ratepayers, businesses, communities, and the environment,鈥� said Senator Ben Allen (D-Santa Monica), the lead author and architect of SB 54. 鈥滻t鈥檚 time for us to deliver on our promises so we may simultaneously improve public health, environmental health, and affordability across the board.鈥�
鈥淲eaker implementing regulations excluding products that SB 54 requires be covered does nothing to lower the costs of managing packaging and plastic foodware waste — it just shifts who bears those costs from producers back to consumers and residents,鈥� said Senator Catherine Blakespear (D-Encinitas), chair of the Senate Environmental Quality Committee.
鈥淪B 54 was carefully crafted to protect California consumers and local governments, and its full implementation is essential to achieving that vision,鈥� said Assemblymember Gregg Hart (D-Santa Barbara). 鈥淚 stand with my colleagues in urging a path forward that fully honors the intent of the law.鈥�
鈥淟ocal governments, and ultimately ratepayers, have long shouldered the cost of managing packaging waste,鈥� said Timothy Burroughs, Executive Director of Alameda County Waste Management Authority, known as StopWaste. 鈥淪B 54 offers a transformative opportunity to shift those costs to the producers, where they belong. If implemented as intended, local governments can finally see relief on behalf of their ratepayers 鈥� financially, environmentally, and operationally.鈥�
Lawmakers and advocates for Californians, our environment and our state鈥檚 economy urge Gov. Newsom and CalRecycle to maximize the public benefits of SB 54 by faithfully following the law so polluters, not Californians, pay for waste.