California SB 54: What the Source Reduction Requirements Actually Mean for CPG Companies

Written By Eli Kowalkowski

California isn't simply asking companies to use less plastic.

With the passage of SB 54, California created one of the most comprehensive packaging Extended Producer Responsibility (EPR) programs in the United States. While many companies immediately focus on producer registration and EPR fees, another significant component of the law is Source Reduction—the requirement to reduce the amount of plastic entering the marketplace over time.

For many CPG companies, the challenge isn't understanding the regulation. The challenge is understanding what it means for day-to-day packaging operations.

What is Source Reduction?

SB 54 establishes statewide targets that require the Producer Responsibility Organization (PRO), working with participating producers, to reduce plastic covered material compared to a 2023 baseline.

The law establishes the following milestones:

  1. 10% plastic source reduction by January 1, 2027

  2. 20% plastic source reduction by January 1, 2030

  3. 25% plastic source reduction by January 1, 2032

A portion of these reductions must come from reuse, refill systems, or elimination of plastic components, while the remainder may be achieved through approaches such as lightweighting, right-sizing, concentrating products, shifting to bulk formats, or replacing plastic with non-plastic materials.

What changes inside a CPG company?

A packaging redesign is only one piece of the puzzle.

Every packaging change creates operational work that often spans multiple departments.

Examples include:

  • Updating packaging specifications

  • Collecting new supplier declarations

  • Revising material composition information

  • Tracking recycled content

  • Updating packaging weights

  • Determining how changes affect EPR reporting

  • Maintaining documentation for future audits

  • Communicating changes across procurement, product development, and regulatory teams

As product portfolios continue to grow, these activities become increasingly difficult to manage without a centralized system for packaging information.

The real challenge isn't the regulation.

Most organizations can understand the regulation.

The greater challenge is maintaining accurate packaging information as products, suppliers, packaging materials, and regulations continue to evolve.

Packaging compliance has become an ongoing operational responsibility—not a one-time project.

How Cedarline helps

At Cedarline, we focus on the operational side of packaging compliance.

Rather than providing legal advice, we help companies organize and maintain the information needed to support packaging compliance activities, including:

  • Packaging component data

  • Material specifications

  • Supplier documentation

  • Regulatory applicability

  • Reporting-ready packaging information

  • Change management as products and packaging evolve

Our goal is simple:

Create one reliable source of truth for your packaging compliance operations.

If your organization is navigating packaging regulations across multiple states or countries, we'd be happy to learn more about your current process.

Eli Kowalkowski