The funding comes from the companies that produce single-use plastic packaging and foodware sold in California. Under SB 54, these “producers” are required to take financial responsibility for the entire lifecycle of their products. Starting in 2027, these companies must pay a combined $500 million annually for 10 years, or $5 billion in total. This shifts the cost of cleaning up plastic pollution from taxpayers and local governments directly to these producers.

SB 54 is a comprehensive law designed to phase out single-use plastics and support a more circular economy. While much of the law focuses on recycling targets and source reduction, the PPMF is dedicated to repairing the harm of plastic pollution to the environment and California’s communities. The PPMF is a unique aspect of SB 54 because it is designated specifically for mitigation to prevent and address plastic pollution.

The law mandates that the majority of this $5 billion be spent in communities most impacted by pollution. Forty percent ($200 million annually) of the funds are directed to address the environmental impacts of plastic pollution, half of which ($100 million annually) must benefit disadvantaged, low-income, or rural communities. Sixty percent ($300 million annually) of the funds are dedicated to addressing the disproportionate public health impacts of plastics in California communities. In your neighborhood, this could look like:

• Programs to reduce plastic-related health risks, including community-based projects to reduce use and exposure to plastics
• Environmental and health monitoring for residents living near plastic production or processing facilities
• Community-led environmental restoration projects in local parks or waterways to address legacy and ongoing plastic contamination
• Nature-based solutions that reduce plastic exposure or plastic debris

Please note that costs related to implementing SB 54 and associated regulations are not eligible for the Fund. For example, the Fund cannot be used to help industry comply with source reduction, recycling, or compostability rates; research and development related to new packaging design and products to comply with SB 54; curbside collection programs; or other infrastructure to ensure the recycling and compostability of covered materials.

SB 54 provides statutory definitions for these community designations:

“Disadvantaged community” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code or an area identified as a disadvantaged unincorporated community pursuant to Section 65302.10 of the Government Code. 

“Low-income community” means an area with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.

“Rural area” has the same meaning as defined in Section 50101 of the Health and Safety Code.

As we further develop our investment plan under the PPMF, we will be providing more detailed guidance on the definitions of these communities.

While the guidelines for this question are still being established, SB 54 specifies that funds will be administered by four state agencies (CalEPA, CNRA, SGC, and CA DOJ). We anticipate administering the funds through department programs, grants, and contracts. Eligible applicants for grants and contracts are expected to include local and tribal governments, community-based organizations, public health and environmental justice 501(c)(3) organizations, and research institutions with projects focused on mitigating, monitoring, reducing, or otherwise addressing plastic pollution.

The Fund officially begins receiving payments from producers in 2027 and must be appropriated by the Legislature before funds can be administered. However, the time period between now and 2027 is critical for your input on how this Fund, including department programs, grants, and contracts, should be structured. We recommend signing up to our email list now to receive updates and notifications on engagement opportunities to inform the use of this Fund.

The PPMF supports a wide range of monitoring, mitigation, and other efforts to reduce plastic pollution. SB 54’s statutory language sets out two categories of potential projects: (1) those that reduce the environmental harms of plastics in communities that are disproportionately burdened, including monitoring and reducing the environmental impacts of plastics and to reduce, recover, and protect the natural environment; and (2) those that mitigate the health impacts of plastics on communities disproportionately burdened by plastics, including monitoring and reducing the historic and current environmental justice and public health impacts of plastics.

Yes. Recognizing that smaller community groups, tribal communities, and rural areas often lack resources to navigate complex state grants, the interagency team is committed to providing technical assistance in grants administered through the PPMF. This may include grant writing workshops and application coaching. Our goal is to ensure that communities with the greatest need would have equitable access to the funding.

Tribal and community voices are foundational to this process. The interagency team is conducting formal tribal consultations and hosting meaningful regional environmental justice engagements to ensure these voices are represented in developing this new Fund. We envision an iterative process in which the design of the investment plan for the Fund occurs in parallel with our public engagements and tribal consultation, and for feedback from our engagements to be integrated into each phase of the investment planning in 2027 and in future years. Please stay tuned for updates on our engagement opportunities and help us shape this Fund!

Yes. PPMF is intended to directly benefit communities, in part through grants. We encourage community groups to begin identifying partners such as schools, municipal waste departments, nonprofits, and research institutions to help shape these direct investments through future proposed projects.

Generally, no. Most infrastructure costs like purchasing recycling trucks are covered by a different part of SB 54, managed directly by the Producer Responsibility Organization. The PPMF is specifically for cleaning up plastic-related pollution and repairing damage, focused on restoring health and the environment.

You can stay involved by joining our email list, attending our webinars and roundtables, or providing written comment through the online survey or by emailing PPMF@calepa.ca.gov.

If you have specific plastic pollution issues in your area—such as persistent littering or concerns about nearby facilities—you can report it through our survey. Your data will help us map out priority areas in need of funding that face the environmental and public health effects of persistent plastic-related pollution.