Episode 13 - EPR & SB 54 - A Simple Guide to the Packaging Law for Small Businesses

You’re minding your business… and suddenly a retailer, supplier, or article starts talking about EPR.

What is it?
Does it apply to you?
And should you be worried?

In this episode, I break down Extended Producer Responsibility (EPR) and California’s SB 54 in plain language - what it means, who it applies to, and what small businesses need to do now.

Because this isn’t going away… but it’s also not as complicated as it sounds once you understand it.

👤 Who This Episode Is For

This episode is for you if you:

•  Sell physical products with packaging
•  Run a food, beverage, or consumer goods business
•  Sell (or plan to sell) in California
•  Have been asked about packaging compliance and didn’t know how to respond

🧠 What You’ll Learn

In this episode, you’ll learn:

•  What EPR (Extended Producer Responsibility) means in simple terms 
•  What SB 54 requires and why it matters 
•  What counts as “covered material”
•  Who is considered a “producer”
•  What are the required submissions by 5/31/2026 
•  What the small business exemption covers

🌎 Other States to Watch

EPR laws are also active or developing in:

•  Maine 
•  Oregon 
•  Colorado 
•  Washington 

If you sell across states, this will expand.

🔗 Resources & Contact

🌐 www.3pimpactconsulting.com

 📬 anca@3pimpactconsulting.com

Transcript

What Is EPR and Does My Business Need to Know About It?

(A Guide to Extended Producer Responsibility and California’s SB 54)

Hello and welcome back

In the Episode 12 intro, I mentioned that the first topic of this season would be EPR because it’s starting to show up on small business owners’ radar whether they like it or not. Through packaging suppliers. Through retail partners asking new questions.
It’s not going away. But it’s also not as scary as it sounds once you understand it. So that’s what we’re doing today.
We’ll focus on California, because it has the most comprehensive law in the country. I’ll touch briefly on other states at the end, and if you want to know what’s happening in your specific state, reach out. My email is in the show notes and I’ll look into it.

[What Is EPR?]
EPR stands for Extended Producer Responsibility. The core idea is pretty straightforward: if you put something in packaging and sell it, you’re responsible for what happens to that packaging after the customer is done with it.
Up until now, that responsibility landed mostly on municipalities, and by extension, on taxpayers. EPR says: actually, the companies that chose the packaging in the first place should carry more of that burden. You picked the material, you should help pay for what happens to it at the end of its life.

[California’s SB 54 - What It  Says]
SB 54, officially called the Plastic Pollution Prevention and Packaging Producer Responsibility Act, was signed into law in June 2022. It’s one of the most ambitious packaging laws in U.S. history, and if you sell products in single-use plastic packaging in California, it’s relevant to you.
The law targets what it calls “covered material” - single-use plastic packaging and plastic food service ware. Think plastic bags, clamshells, bottles, wraps, and anything with a plastic coating or lining. If your product goes to customers in any of those materials, SB 54 is in your world.

How Does It Work?
Compliance runs through a Producer Responsibility Organization, or PRO - in California’s case, that’s the Circular Action Alliance, or CAA. Producers join, report their packaging data, and pay fees that fund recycling infrastructure and California’s plastic pollution mitigation program. CalRecycle oversees the whole thing.
A few important dates that are already here: the registration deadline with the CAA was September 2025, and the first reporting deadline, covering 2023 packaging data, was November 2025. If those passed before you even knew this law existed, don’t panic, but do look into your registration status sooner rather than later.

Who Is a “Producer”?
In short: the brand owner. If your name is on the product and it’s sold in single-use plastic packaging in California, you’re likely a producer under SB 54. If you manufacture products for someone else’s brand, that responsibility typically sits with the brand owner, but verify your specific situation, because it can get nuanced depending on how the relationship is structured. Retailers selling unbranded items in covered packaging are also included.

What If My Sales in California Are Under $1 Million?
There is a small business threshold built into this law. If your annual gross sales in California are under $1 million, you’re exempt from most of the reporting and fee requirements.
The exemption isn’t automatic - you need to apply for it through CalRecycle, and it’s approved in two-year increments. So even if you’re under the threshold, there’s still a step to take.

[What Should You Do Right Now?]
Okay. Now that we’ve covered the “what,” let’s talk about the “now what.” Five practical steps:
1. Know What Your Packaging Is Actually Made Of
This is the starting point, and you’d be surprised how many business owners don’t know the answer. Call your packaging supplier and ask: what’s the material composition? Is it single-use? Is it recyclable or compostable as it currently exists? That information is your foundation for everything else.
2. Figure Out Where You Stand
Do you sell in California? Is it under or over $1 million in California sales? If you’re over, you’re in the full program, check your registration with the CAA. If you’re under, you’ll want to apply for the small producer exemption. CalRecycle’s website has guidance, and your industry trade association, if you’re in one, may have already translated this into plain language for your sector.
3. Start Exploring Alternatives
You do not need to overhaul your packaging by next Tuesday. But you should start having conversations now, while you have time to make good decisions instead of desperate ones.
Ask your current supplier what recyclable or compostable options they offer. Talk to one or two other suppliers. Get a sense of what’s out there and what it costs. Some businesses are honestly surprised to find compliant options are closer in price than they expected. Others find certain materials aren’t easily replaceable yet. Either way, knowing now is better than finding out later.
4. Ask Your Packaging Suppliers the Hard Questions
Your suppliers are dealing with this too, and their response to it will eventually affect you - through pricing, through what materials they stock, through what options they can offer. Ask them directly: how are you preparing for EPR? What compliant options are you developing? If they look at you blankly, that’s a signal worth paying attention to. It connects to what we talked about in Episode 6 - your business is only as strong as the partners you depend on.
5. Start a Simple Packaging Inventory
Document what you use, how much, and where you source it. A basic spreadsheet works. This becomes your foundation for reporting if you’re in the full program. Getting it organized now, when there’s no pressure, is so much easier than scrambling to pull it together when someone’s waiting on it.

I know this episode has covered a lot of regulatory ground, and I don’t want you to walk away feeling overwhelmed. So let me flip the frame for a second.
Businesses that start this process early get to do it on their own timeline. They can compare options, test new materials, and phase changes without blowing up their costs or their operations. The businesses that wait, and some will, are going to be doing all of this under deadline pressure, at rush prices, with fewer choices.
And there’s a real upside too. Sustainable packaging is increasingly something customers notice, something retail partners ask about, and something that differentiates you from competitors who are still ignoring it. Getting ahead of this isn’t just about avoiding problems. It’s a positioning move.

Maine, Oregon, Colorado, and Washington have all passed EPR packaging laws too, with more states actively working on legislation. If you sell nationally, this landscape is worth keeping an eye on.
I’m not going deep on each state today, that’s genuinely a separate episode for each one. But if you’re in a specific state and want to know what’s happening there, email me. I’ll look into it and either answer you directly or turn it into a future episode.

This Week’s Action Items - three things:
1. Find out what your packaging is made of. Call your supplier this week and ask.
2. Figure out your California exposure - do you sell there, and are you above or below the $1 million threshold? That determines your next step.
3. If you sell in California and use single-use plastic packaging, add EPR to your risk management log from Episode 3.

[Recap]
EPR - Extended Producer Responsibility - shifts the cost and responsibility for packaging end-of-life from municipalities back to the producers who chose the packaging.
California’s SB 54 is the most comprehensive version of this in the U.S. The major targets all land at 2032: 25% source reduction in single-use plastic, 65% recyclable or compostable packaging, and 100% recyclable or compostable for all covered material. If your California sales are under $1 million, you’re exempt from most reporting and fees, but the exemption isn’t automatic.
Know your packaging, know your exposure, start having conversations with suppliers, and get your inventory documented. Do it now, while you have time to do it well.

[Closing]
Thank you for sticking with me through a topic that is, let’s be honest, not the most thrilling one. But it’s an important one, and now you know more about it than most of your competitors do.
If you have questions - about EPR, about what’s happening in your state, or about anything else you’re navigating in your business - send them to me. My email is in the show notes. That’s how this season works.
Small steps lead to big impact. Resilience isn’t just about surviving - it’s about thriving.
See you in two weeks.