Higher prices at the grocery aisle?
California consumers may soon feel another squeeze at the register, as a major new state recycling law moves toward implementation and raises concerns across the food industry. Dairy manufacturers, in particular, warn that the added costs could drive up prices and potentially push some companies to close or leave the state.
Senate Bill 54 is entering its first stage of rollout, with businesses expected to receive their initial invoices as soon as next month, according to SFGATE.
The law is designed to cut down on landfill waste by requiring manufacturers to take financial responsibility for the packaging they put into the marketplace once consumers throw it away.
Under the measure, companies will be charged impact fees tied to the products they sell. They will also be required to move away from packaging that cannot be sufficiently reused, recycled or composted.
Dairy producers argue they could be among the industries hit hardest, since many milk, cheese and other dairy products depend on packaging that does not yet satisfy the law’s standards.
State recycling agency CalRecycle has offered a more modest forecast, estimating that households will see annual costs rise by about $57 to $190, based on California Department of Finance data.
Backers of the law say the expense is justified, arguing that taxpayers should not be left covering the cost of packaging waste while the companies that create it avoid responsibility.
“Rather than forcing taxpayers and ratepayers to shoulder these costs, we are ensuring companies that profit from this mass pollution help pay for its cleanup,” state Sen. Ben Allen, who authored the legislation, said in a June news release.
CalRecycle has also said the program delivers roughly 2.5 times more benefits than costs by reducing waste, increasing recycling and lowering waste management costs for local governments.
SB 54 applies to most packaged consumer goods, from packaged strawberries to cosmetics, and aims to encourage manufacturers to develop more sustainable packaging while reducing unnecessary waste.
But dairy manufacturers argue the legislation fails to account for the industry’s unique food safety requirements.
It’s also facing multiple legal challenges.
A coalition of 17 Republican-led states has sued in federal court, arguing the requirements are overly burdensome and should be struck down.
Environmental groups have filed a separate lawsuit claiming the law was weakened during implementation.
For shoppers, the transition is expected to be simple: Fewer labels, fewer guesses — and, state officials hope, a lot less food ending up in the trash.
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