California now joins Colorado, Maine, Maryland, Minnesota, Oregon, and Washington as states that have enacted Extended Producer Responsibility laws for packaging. SB 54 (also known as the Plastic Pollution Prevention and Packaging Producer Responsibility Act) is set to significantly impact alcohol manufacturers and retailers selling products both in and into California. The stated purpose of this law is to ensure that “producers” (as defined below, and which in some circumstances may include retailers) of single-use packaging and food service ware take responsibility for the end-of-life management of those materials and increase the use of recyclable and compostable packaging.
SB 54 established an Extended Producer Responsibility program that shifts the financial burden of recycling and packaging waste management away from consumers and local governments and onto the companies that produce and sell packaged goods.
Although SB 54 was enacted in 2022, implementation was substantially delayed while California regulators revised the complex regulations governing how the program would operate in practice. On May 1, 2026, the California Office of Administrative Law approved the permanent regulations, officially triggering the law’s compliance obligations.
For alcohol suppliers, wineries, breweries, distilleries, importers, brand owners, wholesalers, and retailers, SB 54 introduces new compliance obligations. The first major compliance deadline is May 31.
What Does SB 54 Require?
Generally, SB 54 requires “producers” of “covered materials” to:
Reduce single-use plastic packaging.
Ensure packaging is recyclable or compostable.
Participate in and fund a Producer Responsibility Organization (“PRO”), which is an industry-led, nonprofit entity that manages the collection, recycling, and disposal of waste on behalf of manufacturers.
Report packaging data and pay associated fees.
CalRecycle published a guidance webpage with helpful resources about compliance and other obligations.
Who is a “Producer” and what is a “Covered Material”?
A “producer” is generally the company that makes a product and owns (or has the rights to use) the brand name on the packaging sold in the state. However, the definition becomes more complicated when determining responsibility for in-state versus out-of-state entities. In some circumstances, responsibility may shift to the in-state brand owner, exclusive licensee, or ultimately the seller or distributor introducing the product into the state. This means that retailers should be aware that they can be considered producers if upstream manufacturers and brand owners are ruled out.
Alcohol manufacturers (and retailers) may be responsible for complying with SB 54 if they make, import, own, or sell alcoholic beverage brands in California. This means that even companies located outside California may still have obligations under the law if their products are sold in the state.
“Covered material” is broadly defined and includes most single-use packaging routinely discarded after use, as well as certain plastic single-use food service ware such as cups, bowls, plates, and straws. This means the law applies broadly to packaging materials sold or distributed in California, including many packaging and shipping materials commonly used in the alcohol industry.
However, beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act (the Bottle Bill) are not considered “covered materials.” This means beverage containers (such as glass bottles and aluminum cans) covered by the CRV program are generally exempt from SB 54’s specific fees and recycling targets. However, SB 54 applies to almost all other “covered material” used to transport and sell products, like plastic wraps and shipping boxes.
How Does This Affect Alcohol Manufacturers?
Producers are responsible for ensuring that covered materials satisfy several statutory requirements, including:
Reduce the amount of plastic used in covered materials in accordance with the source reduction requirements set forth here and here.
Ensure that, by January 1, 2032, all covered material sold, distributed, or imported into California is either:
recyclable within California’s recycling system, or
eligible to be labeled “compostable” under applicable state compostability standards.
Meet mandatory recycling rate thresholds for plastic covered materials:
30% recycling rate by January 1, 2028
40% recycling rate by January 1, 2030
65% recycling rate by January 1, 2032
May 31 Deadline
Producers have until May 31, 2026, to register with a PRO, register individually, or file for an exemption. Specifically:
If choosing to participate in the state’s approved PRO plan, Circular Action Alliance (“CAA”), the producer must register with and submit data to CAA. Joining CAA is what most businesses will do as they allow companies to collectively fulfill legal EPR requirements without individually managing complex recycling operations.
If choosing to comply individually, register with the California Department of Resources Recycling and Recovery (“CalRecycle”) and apply to be an independent producer.
If qualifying for an exemption for small producer, register with CalRecycle and apply for the small producer exemption.
Takeaways
Given the breadth and complexity of the law, confusion and inconsistent interpretations are likely during the early stages of implementation. Businesses will likely grapple with basic compliance questions, including who qualifies as a “producer,” what materials are exempt, and how California ultimately intends to enforce the law.
Companies with questions regarding producer status, exemptions, registration requirements, or packaging compliance should consult experienced regulatory counsel. Early planning and careful analysis may help businesses avoid unnecessary compliance risks as California begins implementing and enforcing this complicated program.
Copyright 2026
This blog is dedicated to occasional (and hopefully interesting) reports of state and national alcoholic beverage regulatory developments that we encounter in our practice. Booze Rules (and any comments below) are intended for informational use only and are not to be construed as legal advice. If you need legal advice please consult with your counsel.