Gavin Newsom directs recycling regulators to start over on single-use plastics rules
Good morning and welcome to the A.M. Alert!
BACK TO SQUARE ONE ON PLASTICS
State regulators have spent years crafting rules to implement a landmark law phasing out single-use plastics, but Gov. Gavin Newsom ordered them back to the drawing board.
The law, SB 54, aims to reduce the amount of single-use plastic in the state’s waste stream by requiring industries to ensure their single-use plastics are 100% recyclable by 2032.
CalRecycle regulators, business and environmental groups have been working on rules to regulate the plastic phase-out since Newsom signed the law in 2022. But on Friday, the governor directed them to start over, citing concerns about costs.
The order is “to ensure California’s bold recycling law can achieve its goal of cutting plastic pollution and is implemented fairly,” Newsom spokesman Daniel Villaseñor said, with the goal of “minimizing costs for small businesses and working families as much as possible.”
The move angered environmental groups but was cheered by business groups, which called it a “prudent” decision.
“For more than three years, industry leaders have worked tirelessly on this issue to ensure that pocketbooks of consumers are protected and that businesses can rightly adapt to the new law,” a statement from CalChamber reads. “We look forward to quickly resolving a number of outstanding issues through an expedited regulatory process as California moves towards the 2027 compliance deadline.”
A coalition of environmental organizations including the Monterey Bay Aquarium accused Newsom of caving to industry groups and putting “the interests of the plastics and fossil fuel industry above the wallets and welfare of Californians and the environment.”
They also called on lawmakers to ensure the law’s goals and timelines stay on track. The governor’s office insisted the implementation timeline will not change.
Sen. Catherine Blakespear, D-San Diego, dinged Newsom’s administration for failing to adopt the rules. “The statutory timelines in SB 54 have not changed and we need to remain committed to meeting them, despite this regulatory step back,” she said.
Some parts of SB 54 have already taken effect: on Jan. 1, CalRecycle banned styrofoam food ware – like those takeout clamshells – unless a producer can prove they are recycled 25% of the time. But the agency is prioritizing education over enforcement, Villaseñor said.
TAX REVENUE STRONGER THAN EXPECTED
In a bit of good news for the state’s coffers, income tax receipts were much stronger than anticipated in February.
While corporate taxes have been coming in weaker than expected, personal income taxes in February came in $887 million above projections from the governor’s January budget proposal. That’s also despite a decision to delay the tax filing deadline for Los Angeles County residents after the devastating wildfires.
Income taxes are $3.2 billion above projections for the fiscal year to date, according to Jason Sisney, Speaker Robert Rivas’ top budget wonk.
The revenue strength “provides a perhaps temporary buffer against possible challenges,” Sisney notes in his Substack, including economic uncertainty, President Donald Trump’s tariff wars and potential cuts to Medicaid or research grants.
The Legislative Analyst’s Office also projects structural deficits of $20 billion or more in the coming years.
California entered the year with a “roughly balanced” budget, according to the Legislative Analyst’s Office, while Newsom’s office projected a “modest surplus.”
QUOTE OF THE DAY
“Shutting down these IRS locations is not just an inconvenience; it is a direct blow to working families who depend on these services to stay compliant with our tax system.”
– Assemblymember Rhodesia Ransom, D-Stockton, in a letter to Trump. Her district is home to one of seven IRS offices eyed for closure.
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This story was originally published March 11, 2025 at 4:55 AM.