Latest Member Forum Warns of Potential Additional Costs to Manufacturers Due to New Law

A new member benefit that was rolled out in 2024, the live member forums have proven to be immensely popular with members, according to feedback ALA continues to receive. 

Each interactive member forum features a presentation by a guest speaker with expert insight on an issue important to membership, followed by an interactive discussion that allows participants to delve further into the topic. The member forums are also recorded so that those who are unable to watch live can benefit from the knowledge shared by the group (Members can view the recordings of the member forums in the member library on the ALA website.).

The latest member forum, Single-use Plastic and Packaging Laws Are Everywhere: What You Need to Know, was of particular interest to manufacturers and retailers alike since it raised the likelihood of a cost increase that might be passed along from government to manufacturers and, in turn, presumably to retailers and ultimately consumers. 

Proposed as a solution for reducing waste by eliminating certain forms of single-use plastics and packaging (such as plastic straws and Styrofoam take-out containers), SB 54 was passed in 2022 and puts the onus on manufacturers/producers to change their packaging to reflect these new sustainability goals. As the compliance deadline stands right now, at least 30% of a producer’s packaging has to be recyclable on or after January 2028, at least 40% by January 2030, and 60% on or after January 2032.  

Rachel Michelin, president of the California Retailers Association and a member of the Advisory Council for SB 54, detailed her concerns to the ALA membership during the member forum this month. The California Retailers Association’s mission is to promote, preserve, and enhance the retail industry in California, much like ALA’s commitment to the decorative residential lighting community as a whole.

In the past, comprehensive programs like SB 54 would have been largely funded by a state’s recycling and waste management programs. However, Michelin pointed out that the state of California is running at a significant deficit – which was not the case when SB 54 was proposed – and as a result, implementation costs will likely be passed onto manufacturers. 

The list of “covered materials” in SB 54 will be released on July 1 and involves single-use packaging that is discarded and not reused — a criteria that not only affects its intended target of “plastic food service ware,” but could also be expanded to include packaging used in shipping lighting fixtures and other consumer products. 

As the state of California is home to a number of lighting manufacturers, some of which have domestic manufacturing and shipping operations on-site, SB 54 can have a negative impact on their business costs. In addition, it is assumed that products warehoused in California will also be under this directive to some degree.

During the 45-day public comment period regarding SB 54, the ALA aligned with the California Chamber of Commerce (CalChamber) to submit concerns on behalf of the ALA membership and the lighting industry as a whole. Michael Weems, ALA’s vice president of public policy, will continue to monitor all regulatory activity, paying close attention to the “covered materials” list to examine whether any materials commonly used to package lighting products are on the preliminary list and whether exemptions can be made. 

If you haven’t participated in – or watched a replay of – one of the new ALA member forums, be sure to check the member library to watch a rebroadcast and mark your calendar to attend the next live session. To access the library, members can email Nici Juneau for the password.