As California's pioneering 'Plastic Pollution Reduction Act' takes effect, a dramatic showdown has unfolded in US courts: 17 states have launched a lawsuit against the state's bold plan to hold plastic manufacturers accountable for their waste. The legislation, signed by Governor Gavin Newsom in 2022, is the first of its kind in the world, and aims to revolutionise the way companies produce and dispose of packaging.
The law requires all California-based businesses with a turnover exceeding £500 million to register with Circular Action Alliance (CAA), a state-appointed private organisation tasked with overseeing plastic waste management. Companies will also be forced to foot an estimated £4 billion bill to mitigate the devastating impact of plastic pollution, including costs associated with cleaning up litter and restoring damaged ecosystems. By 2032, every packaging item sold in California must either be recyclable or compostable – a game-changer for the industry.
Industry groups claim that the law unfairly burdens businesses outside California who wish to operate within the state's borders, arguing it restricts interstate commerce. Critics point out that manufacturers will have to register and pay fees to the CAA, sparking fears about tax collection powers being delegated to a private entity. Eric Hoplin, president of the National Association of Wholesaler-Distributors, asserts that no state should dictate how businesses operate across borders.
But proponents of the law, including Heidi Sanborn, executive director of the National Stewardship Action Council, counter that the real issue is not about costs but who bears them. Currently, local governments, taxpayers, and small businesses disproportionately shoulder the burden of packaging waste, while manufacturers reap the profits. The new legislation seeks to rebalance this equation by making polluters pay.
Interestingly, even some environmental groups express reservations about the law's efficacy, citing its compromises with industry representatives and the fact that it doesn't go far enough in addressing the plastic crisis. Judith Enck, a former EPA administrator and head of Beyond Plastics, questions why companies are now suing to undermine a bill they helped negotiate.
The stark reality remains: despite claims about increased recycling rates, only 5-6% of plastic is ever recycled globally due to the economic viability of producing new plastic and the limited market for recycled materials. Experts warn that this figure is unlikely to shift significantly anytime soon.