The Nickel Report

Starting in June 2027, California’s “compostable” labeling standard will prohibit certain products from being labeled as “compostable,” even if they are ASTM-certified. This is particularly important considering California’s Extended Producer Responsibility (EPR) law, which will require covered products to be either recyclable or compostable by 2032. Regulated entities should understand the contours of California’s “compostable” standard and begin developing internal mechanisms to ensure compliance and avoid unexpected production pauses or enforcement actions.

Background

In 2021, California’s compostable labeling law was enacted, prohibiting the sale of products labeled as “compostable” unless certain criteria are met.¹ The key compliance criterion is that a product labeled as “compostable” must meet the ASTM D4600-19 or D6868-19 standard certifying composability, as applicable.

The statute also includes a future requirement that all products labeled as “compostable” comport with the United States Department of Agriculture (USDA) National Organic Program (NOP).² Specifically, products labeled as “compostable” must be approved by the NOP as allowable organic agricultural input through inclusion on the National List of Allowed and Prohibited Substances. (NOP List). The original statutory compliance deadline for this requirement was January 1, 2026. However, it was extended to June 30, 2027, in anticipation of NOP rulemaking to add synthetic compostable polymers to the NOP List.

Synthetic Polymers Are Not Compostable In California

In the fall of 2025, the National Organic Standards Board (NOSB)—the advisory board authorized to recommend NOP rulemaking—unanimously voted against adding synthetic compostable polymers to the NOP List. Practically, this means that products labeled as “compostable” cannot include synthetic polymers, despite being otherwise compostable, because these products have not been approved by NOP.

Takeaways and Implications

• Regulated entities will have to comply with this new requirement by June 30, 2027, and it is unlikely that another extension will be granted given the negative NOSB determination.
• Regulated entities should monitor NOSB activities because its final recommendation report indicates a willingness to reconsider a narrower subset of synthetic polymers, such as fruit stickers, which may provide some relief.
• Retailers should begin reaching out to vendors to ensure that packaging labeled as “compostable” does not contain synthetic polymers.
• Producers should begin developing packaging and food service ware that is sufficiently compostable (i.e., no synthetic polymers) or recyclable under California’s EPR law, which will require all covered materials to be recyclable or compostable by 2032.
• Regulated entities should engage with counsel early to ensure adequate mechanisms are in place and to avoid burdensome production pauses or enforcement actions.

[1] See Cal. Pub. Res. Code § 42357.

[2] Cal. Pub. Res. Code § 42357(g)(1)(B).