More than two dozen California Assembly Democrats and one state senator sent a letter Wednesday to legislative leaders asking them to delay fees under SB 54, the state’s landmark plastic reduction law, for two years — an eleventh-hour push as the Legislature hurtles toward the end of session.
The letter, addressed to Senate President Pro Tempore Monique Limón and Assembly Speaker Robert Rivas, was signed by 23 Assemblymembers and Sen. Melissa Hurtado. It asks lawmakers to pause fee assessment and collection this year and next, commit to a “reform package” next session, and increase legislative oversight of the program going forward.
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The request lands amid a broader fight over how the plastics law is rolling out. Little by little California is demanding that the packages you pick up at your doorstep or at the store contain less plastic. A law Gov. Gavin Newsom signed four years ago aims to phase out 25% of non-recyclable, non-compostable plastic by 2032.
To get there, the state tasked a nonprofit, the Circular Action Alliance, with drafting a plan to meet the state goals. The group estimated the work would cost $17.2 billion over five years – and is asking for a three-year exemption from the source-reduction deadline.
But as the state moves to implement the law, questions are mounting over how the organization calculates the fees producers — and eventually consumers — will pay, and how much oversight the group actually faces.
Industry groups say the price tag for complying with the law could be tens of billions of dollars higher than California originally estimated. An industry-commissioned study found the law could cost consumers three times what the state projected — between $683 and $948 a year, rather than $190.
That means groceries, shampoo bottles and other consumer goods packed in plastic could cost a little more as the law takes effect.
The California Department of Resources Recycling and Recovery, which oversees implementation, declined an interview but said in a written statement that the law puts consumers first and pushes producers to design packaging with recycling in mind.
“Californians are facing rising costs and pollution from increasingly complex packaging that wasn’t designed for the recycling systems local governments, ratepayers, and the state developed and funded over the past four decades,” said CalRecycle director Zoe Heller. “The law’s rollout is a dial, not a switch, giving producers flexibility to redesign packaging, invest in recycling systems, reduce single-use plastics, and make adjustments along the way,” she added.
Watching the watchers
The Circular Action Alliance published its fee schedule in June, spelling out what each producer owes into the system. The fees could add up to more than $10 million for some businesses, according to the Dairy Institute of California. The Dairy Institute is a trade association that represents milk processors and dairy product manufacturers.
But unlike a state agency, the Circular Action Alliance answers to almost no one, said Katie Davey, executive director of the Dairy Institute.
“[The alliance] does not have to go through an audit by the state auditor. They’re not subject to the (California open government law) Brown Act. They’re not subject to public records requests. The Legislature does not approve their budget and does not approve how many employees they need, or how many fees they can charge,” Davey said.
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