California has officially delayed enforcement of its compostable packaging law AB 1201, giving foodservice operators and packaging suppliers more time to comply. The California Department of Resources Recycling and Recovery (CalRecycle) has extended the compliance deadline to January 1, 2026, easing pressure as many businesses await updated federal guidance from the USDA’s BioPreferred Program.
Restrictions Delayed Until 2026
Originally scheduled to take effect in July 2024, the AB 1201 enforcement date was postponed following input from stakeholders across industry, government, and sustainability organizations. The regulation prohibits items labeled “compostable” from being sold in California unless they are third-party certified and included on CalRecycle’s approved list.
For foodservice distributors and buyers, this list currently includes products certified by the Biodegradable Products Institute (BPI) and TÜV Austria. However, it does not yet include USDA’s BioPreferred Program, despite its federal scope and long-standing role in biobased product labeling.
Until the new deadline, businesses may continue selling BPI- and TÜV-certified compostable items in California. Other products not on the list must be removed from the state’s market unless and until they are approved.
Alignment With Federal USDA Update Pending
The delay reflects CalRecycle’s intent to align with the USDA’s revised BioPreferred Program, expected to be finalized in 2025. Stakeholders, including manufacturers and industry trade groups, have called for broader acceptance of USDA labeling in California, citing regulatory inconsistencies and market access concerns.
USDA’s proposed updates aim to strengthen product testing protocols, clarify labeling claims, and enhance consumer trust in the program. Once finalized, CalRecycle may re-evaluate whether BioPreferred certifications will be considered sufficient for AB 1201 compliance.
Broader Implications For Sustainable Sourcing
AB 1201 is part of California’s broader legislative push to curb greenwashing and improve the integrity of compostable labeling. For national restaurant groups and distributors, the law underscores the need to align sustainable sourcing strategies with state-level regulatory trends that may not mirror federal standards.
While the delay offers temporary flexibility, foodservice professionals operating in or distributing to California should begin aligning with third-party certifications now. Companies pursuing USDA BioPreferred certification should monitor USDA's final rule and be prepared to navigate California’s evolving recognition policies.
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