California EPR: Scaling recycling infrastructure as pressure for film producers rises

The California Department of Resources Recycling and Recovery (CalRecycle) is finalizing the rules for its Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54). For producers of film and flexible packaging (FFP), SB 54 has established rapid timelines, pressuring the industry to develop a compliance strategy by April 2026.

SB 54 mandates a 25% source reduction by 2032, ensuring that all packaging is either recyclable or compostable, and requires a 65% recycling rate. The law establishes a new EPR program to manage packaging, aiming to reduce waste across the state.

Amid these ongoing regulatory developments, Packaging Insights sits down with Katherine Huded, executive director of material systems at The Recycling Partnership, a US-based NGO focusing on recycling systems, to discuss the critical steps needed to address industry challenges and opportunities.

“This legislative framework places significant pressure on FFP producers to prioritize designing their packaging for recyclability to meet the requirements. Failure to meet these requirements could result in fines potentially up to US$18 million per year per package and potential bans.”

“Simultaneously, it creates demand for pre-investment to develop and scale infrastructure and stimulates potential responsible end markets (REMs) capable of handling materials like FFP to help meet the increasing recycling rate targets.”

Driving scalable solutions

The Recycling Partnership launched the Film & Flexibles Recycling Coalition and its associated CalFFlex Initiative to support California’s packaging recycling progress. They are now working to deploy US$5 million over the next 12 months to foster compliance in the state.

“CalFFlex is specifically designed to deliver a scalable blueprint for residential FFP recycling in California. By leveraging half a decade of experience and over 50 FFP-related projects nationwide, with a systems-based approach, we are working in coordination with many organizations looking to tackle this challenge, including Circular Action Alliance (CAA) and leaders in California,” says Huded.

She explains that CalFFlex is using a three-pronged approach for FFP capture. First, CalFFlex demonstrates the viability of increased FFP capture at processing facilities that are already collecting these materials. 

Katherine Huded, executive director of material systems at The Recycling Partnership.Second, CalFFlex addresses the need to develop responsible end markets. The initiative has identified at least 10 existing end markets that need support and will work to assess their capacity, identify other end market investment opportunities, and bolster demand for recycled FFP products.

Finally, CalFFlex will provide replicable details to CAA to inform regulatory compliance strategies. 

“The insights gleaned from this California-focused work will form the foundation of a scalable blueprint intended for broader application in other EPR policy-driven states and across the nation,” says Huded.

All-hands-on-deck value chain

Huded shares that the capture rate of FFP presents a challenge, as less than 1% of the nearly 4.8 million tons of FFP generated each year is recycled.

“This low rate is driven by a variety of factors, including insufficient end markets, high costs to process the material coupled with low commodity prices, limited acceptance in curbside recycling programs, and a diverse packaging format that becomes dirty in residential recycling programs, which further limits end market availability once sorted.”

“The CalFFlex Initiative is demonstrating pathways for FFP recycling from the home to potential REMs as required in statute, with projects in Northern and Southern California at recycling facilities currently receiving material from communities already accepting residential film.”

She points out that collaboration with producers is key to prioritizing design for recyclability and actively boosting demand for PCR FFP.

“Developing responsible end markets, expanding collection networks, as demonstrated by the Circular Economy Development Center’s transportation network in rural Colorado, and fostering technological advancements in processing difficult-to-recycle films, like HydroBlox in Pennsylvania, are also important steps.”

“Pre-investment in the FFP recycling system mitigates the risk of non-compliance. Due to the mandated targets of SB 54 and the unprecedented performance improvements needed at each stage of the recycling system, engagement and funding are needed now across the value chain, from brands and retailers to processors, converters, and manufacturers,” Huded continues.Covered material categories are at risk of meeting SB 54 mandated targets.

She says that without pre-investment before CAA begins collecting fees and without data proving that capture rates can increase at each stage of the supply chain, FFP recycling will remain at risk.

“FFP recycling in California is an all-hands-on-deck moment for the value chain. With projects already underway and more in the pipeline, corporate partners are encouraged to join CalFFlex.”

Designing Californian approach

The Film & Flexibles Recycling Coalition has gained experience through its existing projects across the US. Huded notes that the team is integrating findings from prior works. 

“There needs to be a continued focus on developing strong and stable potential REMs for recycled FFP to create consistent demand. The data informs a strategic approach to engage in system improvements specific to the challenges of FFP in the context of SB 54.” 

“For examples of prior works in the US, facilities like Valemi in Southern California added a new secondary sort line to improve the quality of production, and Balcones in San Antonio, Texas, is beginning to process and resell incidental film and flexible plastics through the installation and start-up of new equipment.”

“More significant design shifts are needed to enhance the recyclability of FFP, especially the complex multi-layer structures. This requires ongoing collaboration between producers and recyclers. Corporate responsibility and consumer behavior are integral to the success of FFP recycling under SB 54.”

Expanding policies in US

EPR has already taken shape in several US states. Huded highlights that five states have already passed EPR policies, and with more considering similar legislation, it is increasingly likely that EPR will continue to expand.

“The Recycling Partnership aims to leverage its experience to support the successful implementation of EPR in other states, and the work being done in California through CalFFlex is intended to create a transferable blueprint for other regions as well,” she states.

“Other recycling policies are also gaining momentum, like PCR content mandates, and federal legislation recycling tax credits.” 

“The Recycling Infrastructure Investment Tax Credit is currently advancing within Congress’s reconciliation process and would provide a 30% tax credit for qualified investments in recycling infrastructure,” says Huded.