Newsom vetoes bill mandating recycled content in thermoform containers

California Gov. Gavin Newsom has vetoed A.B. 2784, which would have mandated the use of postconsumer recycled content in thermoformed containers sold in California.

In a letter dated Sept. 19 to the members of the California State Assembly, Newsom writes that while he “strongly support efforts to advance California's transition to a circular economy,”  he is “concerned this bill imposes confusing requirements in conflict with some of S.B. 54's key provisions, which could unfairly result in duplicative fees and penalties for the same material.”

S.B. 54, which Newsom signed into law earlier this year, “was specifically designed to create a comprehensive regulatory framework for all recycled materials, in lieu of piecemeal approaches for individual products,” he writes. “With this objective in mind, we should allow CalRecycle to begin its work to implement the reforms required by S.B. 54 before contemplating any new recycling requirements for individual materials.”

S.B. 54 creates several amendments to the state’s Integrated Waste Management Act of 1989 and is designed to address plastic litter issues and low recycling rates.

The text of SB 54 sets reporting requirements for transfer station and “disposal facility” operators to provide “periodic information to the [state] on the types and quantities of materials that are disposed of, sold or transferred to other recycling or composting facilities or specified entities.”

Matt Seaholm, president and chief executive officer of the Plastics Industry Association, Washington, has voiced his support of the veto, saying, “We appreciate the action taken by Gov. Newsom to veto AB 2784. Gov. Newsom rightly points out in his veto message that AB 2784 would have caused confusing laws following the passage of S.B. 54 earlier this year.

“Our industry encourages policy that promotes a responsible, circular economy. While we support reasonable recycled-content requirements where they make sense, thermoform to thermoform recycling, in the manner mandated by AB 2784, does not,” Seaholm says.

While a percentage of thermoformed polyethylene terephthalate (PET) containers can be included in PET bottle bales that are sent to reclaimers for recycling, the thermoformed containers have a lower bulk density than PET bottles and use pressure-sensitive labels that can be difficult to remove in the washing process, presenting challenges during recycling, according to reclaimers. Additionally, few material recovery facilities produce thermoform-only bales.