On May 1, California’s S.B. 54 required packaging producers to analyze supply chains, collect accurate data, determine responsibility, pay compliance fees and integrate compliance into ongoing operations. This activation of the regulations has real consequences for the plastic packaging and recycling value chain. Companies that allow their regulated plastic packaging and food service ware into the California market now operate under binding regulatory obligations. At the same time, recyclers, material recovery facilities and end market participants must begin to adjust to a system that increasingly will influence material flows, infrastructure investment and commodity economics.
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