Editor’s note: EPR and packaging design will be explored in sessions during the 2027 Plastics Recycling Conference, March 1-3 near Washington, DC. Register now for the best rates!
Two groundbreaking recycling laws in California incorporate guidance from a key resource from the Association of Plastic Recyclers (APR), speakers said during a recent webinar on packaging design compliance.
The labeling law, SB 343, uses the APR Design Guide to define recyclability, while the sweeping SB 54 establishes the state’s packaging EPR law, and refers to the guide both in defining recyclability and for setting some fees.
In a recent webinar, Kate Bailey, chief policy officer for APR, provided detailed steps to prepare for the legislation, which requires compliance with the APR Design Guide for Plastics Recyclability.
“California is the first state to put a price tag on packaging design choices,” she said.
APR owns Resource Recycling, Inc., publisher of Plastics Recycling Update.
Several lawsuits — the “elephants in the room,” as Bailey said — are challenging the implementation of both SB 54 and SB 343. And in mid-July, a judge ruled that California cannot enforce SB 343 until further notice.
Even so, APR recommends that companies continue pursuing packaging innovations and design changes, because the fee side of the law continues to progress, Bailey said. California is among seven states covering 20% of the US population that have passed EPR laws that will charge higher fees for packaging that is less recyclable, while new regulations in Canada and the EU are driving the market in a similar direction. In addition, implementing design changes takes time, and it’s important to maintain momentum, she said.
Bailey stressed that records must be retained even while the injunction is in place.
Curt Cozart, chief operating officer of APR, said that in the meantime, companies can:
- Understand how the APR Design Guide works
- Build out data
- Assess risk
- Prioritize design changes
- Stay up-to-date on program updates
SB 343 – accurate labeling
In short, SB 343 requires that packaging meet four criteria: curbside recycling access is available to at least 60% of California residents; at least 60% of the state’s recycling programs sort the package or product; the package or a component of the package does not render the package unrecyclable under the APR Design Guide; and the package does not contain heavy metals or added PFAS above a certain level.
The law isn’t limited to plastic packaging — it also applies to products, Bailey said. Nor does it require packaging to be labeled for recycling, or ban products from being sold into the state.
SB 54
The Design Guide has wide influence, with retailers such as Walmart, organizations including the Ellen Macarthur Foundation, and international associations such as RecyClass referring to it for various uses. So it’s not surprising that California chose to embed it within its regulations, Cozart said.
In the state’s signature packaging EPR bill, SB 54, the APR Design Guide influences four areas: definition of recyclability, base fees, additional fees (eco-modulation), and source reduction of plastics, Bailey said.
Base fees reflect the cost to recycle products, and are determined according to major categories of plastic packaging known as covered material categories, or CMCs. APR tools are also referenced in defining small formats and other areas of the base fee structure, she added.
More recyclable formats — determined by size, color and resin — have lower fees in California, Oregon, and Colorado, as well as future EPR states, Bailey added.
In addition to base fees, the June draft program plan for SB 54 proposes “eco-modulation malus” fees for hard-to-recycle packaging elements as early as 2028, Bailey said. A 10% surcharge would be on top of base EPR fees and will rise even higher over time.
As an example, proposed EPR fees are 29 cents/lb ($639/metric ton) for clear PET bottles, but 69 cents/lb ($1,521/mt) for colored PET bottles — more than double the fee for the preferred format.
The producer responsibility organization (PRO) Circular Action Alliance (CAA) has not specified which design elements would be targeted first, only that malus amounts will be based on “severity, prevalence in the recycling stream, and availability of alternatives,” Bailey added. The plan is scheduled to be finalized in October 2026, and the higher fees could take effect as early as 2028.
Assessing recyclability of plastic packaging
SB 54 requires all packaging to be 100% recyclable or compostable by 2032, with “recyclability” defined by SB 343, excluding packaging components that “prevent recyclability,” according to the APR Design Guide.
APR’s free, online tool provides design guidelines for each packaging component, created using recycler and packaging expert input and scientific research.
Companies will need to look beyond just the product type or material to assess if their full packaging — including caps, labels, colors, and more — is designed for recyclability.
APR’s PCR certification provides independent third-party verification that recycled content comes from post-consumer sources. Two standards cover the full recycling process, validating resin pellets through finished goods. Starting Jan. 1, 2027, APR PCR certification will be required in California for companies using recycled content as virgin plastic source-reduction credits under SB 54.
As implementation draws near, a few areas continue to cause confusion, such as the status of detachable components including labels, adhesives, pumps and sprayers, Cozart said.
SB 54 assesses fees per component, but the APR Design Guide treats the whole package as one unit, with a label or closure “riding along” with the bottle through the recycling stream. CAA’s draft plan has proposed “de minimis” categories to exempt some components from that mismatch, but the definitions of detachable versus non-detachable remain unsettled ahead of the plan’s October finalization.
APR said it plans to raise the issue in its own communications with CAA and CalRecycle, and asked companies to share their implementation challenges with its policy team.
The next APR webinar is Sept. 16, on PCR certification.
