CalRecycle’s draft regulations have broadened exemptions for FDA- and USDA-regulated packaging, including dairy products, raising concerns that the law could lose up to half its funding.

USA – The International Dairy Foods Association has requested a temporary exemption for dairy plastics from California’s SB 54 recycling targets, arguing that food safety requirements and 2032 performance timelines make compliance unworkable for perishable dairy packaging.
The proposal, submitted to California’s Packaging Producer Responsibility Advisory Board, would exclude widely used rigid and flexible plastics in dairy packaging from the law’s 25 percent single-use plastic reduction mandate and 65 percent recycling rate target by 2032.
Danielle Quist, IDFA vice-president of regulatory affairs, testified that many standard dairy packaging materials, including HDPE, PET, polypropylene, gable-top cartons and aseptic cartons, cannot meet short-term recycling benchmarks.
The association also requested a three-year waiver from producer responsibility organisation-level source reduction rules, citing constraints posed by dairy’s perishability and strict food safety requirements.
How SB 54’s FDA and USDA Exemption Pathway and Material-Specific Challenges Shape the Request
California’s SB 54 includes a categorical exemption pathway for food and agricultural packaging where compliance conflicts with federal FDA or USDA regulations.
CalRecycle’s draft regulations have broadened exemptions for FDA- and USDA-regulated packaging, including dairy products, raising concerns that the law could lose up to half its funding.
The IDFA argues that packaging development, recycling system upgrades and investment needed to address food safety and product quality issues require more time than the current timeline allows.
Flexible films and other lower-recyclability materials would need longer transition periods and workable improvement plans before compliance is feasible.
The association also expressed concern over SB 54’s use of a 2023 baseline for source reduction, which does not reflect future sales growth of dairy products that depend on plastic packaging.
What Temporary Relief and PCR Compliance Mean for Dairy Industry and Packaging Innovation
If granted, the exemptions could temporarily shield covered materials from state enforcement measures or material bans tied to missed statutory benchmarks.
The IDFA also urged the Circular Action Alliance and advisory board to keep post-consumer recycled content available as a compliance route once supply becomes sufficiently pure and reliable.
Quist stated that the timeline for meeting SB 54’s performance goals is out of step with current market and recycling system realities, and the proposed exemptions are necessary to give producers additional time to meet requirements in a more practical way while protecting safe, nutritious and perishable dairy foods.
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