CalRecycle’s current packaging regulations are too costly and simply unimplementable | Opinion

California’s small businesses, entrepreneurs and key industries — including manufacturing, retail and agriculture — have worked tirelessly to adapt to regulatory changes while continuing to provide essential goods and services. When Senate Bill 54 was passed, which mandates that all single-use plastic packaging and food service ware be recyclable or compostable by 2032, the California Asian Pacific Chamber of Commerce supported the law’s vision for a circular economy.

Yet, in its current form, CalRecycle’s proposed regulations will impose significant financial burdens that could jeopardize businesses, jobs and economic stability. California should commit to the necessary time to get these regulations right to ensure the economic success of both businesses and consumers.

SB 54 set an ambitious goal requiring businesses to undertake massive operational shifts. While our members support responsible environmental stewardship, the economic realities of CalRecycle’s implementation plan cannot be ignored. The agency’s own analysis estimates direct costs of $36 billion over ten years — an annual burden of roughly $3.6 billion that will be shouldered by businesses across the state. These figures are likely an underestimation of the true costs and operational challenges businesses will endure as the agency’s own economic analysis was on a previous draft of the regulations.

Beyond the staggering overall costs, the financial strain on individual businesses is even more concerning. CalRecycle estimates that 5,741 companies will face compliance costs as high as $790,248 per year — an unsustainable burden, especially for small and mid-sized businesses. Our state’s business environment is already difficult for small businesses. Rising costs have tightened tight margins, and recent wildfires in Southern California have negatively affected supply chains and customer bases.

As a state, we should support policies that make it easier for businesses to get ahead while protecting our environment. The current reality, however, is that California cannot afford to implement SB 54 without a regulatory framework that balances environmental goals with economic viability. Without a more thoughtful and data-driven approach, these regulations risk driving businesses out of the state, reducing job opportunities and placing undue financial strain on communities.

The state has a history of leading on both economic prosperity and environmental responsibility, but only when policy is crafted with both in mind.

The California Asian Pacific Chamber of Commerce urges CalRecycle to continue working on regulations that better balance economic costs and sustainability mandates. The success of SB 54 depends on ensuring businesses have the flexibility and support needed to implement a circular economy without facing untenable financial hardship.

By prioritizing economic viability alongside environmental progress, California can create a regulatory model that fosters innovation, protects jobs and enhances long-term sustainability.