WGS Nov-Dec-2025

EXAMINING SB54'S TIMELINE IN THE WAKE OF GOV. NEWSOM'S PAUSE By Melissa Koshlaychuk, California Government Affairs Analyst

California agriculture has long been a powerhouse of innovation—delivering scientific and technological breakthroughs that have transformed not only how we grow food, but also how we think about sustainability, efficiency and resilience. There’s an old saying: “If you get too good at something, you’ll be asked to do more of it.” Well, California ag, you were too good. You solved hard problems—soil health, water use, labor efficiency, yield optimization—and now, all eyes are on you again. This time, to help solve the nation’s recycling and packaging challenges. So, while we fully agree with CalRecycle that farmers, packers and shippers are not SB54 “producers” in the legal sense, we also know the ag industry won’t sit on the sidelines. California ag will do what it has always done: lead. We’ll support packaging transitions that protect food safety and quality, that are truly sustainable (not just greenwashing) and that offer cost-effective solutions for the entire supply chain, including the end customer. 2025 Key Highlights As we get closer to wrapping up 2025, we can proudly say we made some positive impacts to California’s SB54 (Allen, 2022) “Plastic Pollution Prevention and Packaging Producer Responsibility Act” regulatory landscape. Today, we are closing in on a full year past the statutory deadline, and that is a win. It has been 10 months more than we thought we had to voice our concerns, develop solutions and continue communication with CalRecycle leadership and legislators. This extra time has allowed us to sharpen our tools, hone in on where the wins are, seek legal counsel and prepare for future packaging fights. • March 7, 2025: Gov. Gavin Newsom told CalRecycle to redo the regulations. • June 3, 2025: California Department of Food and Agriculture (CDFA) held an informational session to hear updates from agricultural organizations, policy experts and business groups concerning plastic packaging regulations. • CDFA Secretary Karen Ross stated: “We need to reduce plastic pollution in our environment. At the same time, we must consider opportunities and pathways for California’s farmers and ranchers that advance a circular economy and allows for packaging innovation that maintains quality and safety of fresh food products.” Regulations Prior and After the Governor’s Redo Directive: March 7, 2025 In December 2024, CalRecycle was working hard to publish their final SB54 Draft Regulations to meet their statutory deadline of Jan. 1, 2025. Well, that didn’t happen, and thank goodness.

SB54 Draft Regulations Details from After the Redo Directive: A Few Examples 1. Updated regulations align more closely with the statutory language of SB54. a. Most importantly, it clearly states that packaging necessary to comply with federal rules, regulations and guidelines are not covered material. b. Allows businesses to apply to CalRecycle directly for categorical exclusions and exemptions rather than with the Producer Responsibility Organization (PRO). 2. Option for CalRecycle to consult with CDFA and the California Department of Public Health (CDPH) regarding categorical exclusion determinations. 3. Reduced total program costs ($36 billion to $21 billion). 4. Lessened administrative burdens for producers (“monthly” reporting requirements of producers and the PRO to an annual reporting framework). 5. Section added that highlights empty packaging materials are not considered single-use plastic or covered materials for the purposes of this regulation. 6. Addition of alternative Phase-in Plans directly with CalRecycle for exemptions. What’s Next? Western Growers submitted comments to this latest Draft Regulation on Oct. 7, 2025. WG also had a meeting with CalRecycle’s Director Zoe Heller on October 8 to discuss the issues that remain, and they are still considerable. • CalRecycle may: • Make substantive changes to the current Draft Regulations, prompting another 15-day comment period. • Make no changes. • Make minor technical changes, not prompting another comment period. • Once CalRecycle publishes their final SB54 Regulation, producers will have 30 days from the publication date to register with CalRecycle. • PRO will submit their plan to the SB54 Advisory Board (Circular Action Alliance [CAA] estimates mid-2026 for submission). Then the PRO Plan will go on to CalRecycle with advisory comments for their review, and public comments. While we await the release of the final SB54 Regulations, likely in late December 2025, we sit with both hope and uncertainty.

8 Western Grower & Shipper | www.wga.com November | December 2025

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