Who must comply
If your brand sells packaged consumer goods into California and clears the state's de minimis threshold, you are a covered producer under SB 54. California applies to producers with more than $1M in annual gross revenue from covered products sold into California. Out-of-state DTC sellers are included. A physical tax nexus is not required.
Administered by Circular Action Alliance.
Covered materials and example rates
Rates below are modeled from PRO public guidance (2025-01-01). Actual rates are set annually and subject to change.
| Material | Rate (USD / metric ton) |
|---|---|
| Rigid plastic | $850 |
| Flexible plastic and film | $1,250 |
| PET bottles | $620 |
| HDPE bottles | $620 |
| Corrugated fiber | $180 |
| Paperboard and cartons | $240 |
| Glass | $120 |
| Aluminum | $90 |
| Steel | $95 |
| Multi-material / laminates | $1,100 |
| Compostable packaging | $450 |
Deadline
SB 54 timeline: Producer reporting started in 2025. First CAA invoices land in Q4 2025.
How we estimate your fee
- 1
Extract your packaging
We read your Shopify storefront (or product URLs you provide) and identify every SKU with its likely packaging components: bottles, caps, cartons, mailers, labels, and inserts.
- 2
Apply California rates
For each material family, we multiply estimated tonnage sold into California by the SB 54 per-metric-ton fee published by Circular Action Alliance.
- 3
Return a ±20% band
You get an annual fee range (low / mid / high) with a per-material breakdown you can hand to your ops or compliance team.
Example calculation
A $25M DTC skincare brand shipping 400k glass-bottle-and-carton units/year in California
Estimated fee: $18,000 – $27,000 / year
Estimates shown with a ±20% confidence band. Not audit-grade; for informational use.
Read the full text of SB 54 on the official California Department of Resources Recycling and Recovery (CalRecycle) site: https://calrecycle.ca.gov/packaging/