California SB 1335 & AB 1276: Compliance Guide for Importers of Compostable Paper Cups (2026)

For importers and procurement managers supplying paper cups to the California market, the regulatory landscape has shifted decisively in 2026. Two state laws—SB 1335 and AB 1276—now impose binding obligations on the entire supply chain, from manufacturers to food service businesses. The direct answer: compliance with California's SB 1335 and AB 1276 is mandatory for all paper cup importers and food service operators, with enforcement mechanisms including administrative penalties of up to $50,000 per day per violation for non-compliance under SB 54, and escalating fines of $100 to $500 per violation for AB 1276 offenses. The June 1, 2026 registration deadline for SB 54 has already passed, and producers—including importers and brand owners—who failed to register with the Circular Action Alliance (CAA), apply for independent compliance, or claim the small producer exemption now face immediate enforcement risk.

What Is SB 1335 and Who Does It Cover?

SB 1335 (Allen, Chapter 610, Statutes of 2018) requires all food service packaging purchased by California state-owned or operated facilities—including universities, public schools, correctional facilities, airports, and state parks—to meet specific sustainability criteria. Under this law, these facilities can only purchase packaging listed on CalRecycle's sustainable packaging database, which requires third-party certification and PFAS-free status.

Who is responsible under SB 1335:

• Manufacturers and importers: Must ensure their paper cups meet the certification and PFAS-free requirements to be eligible for the CalRecycle-approved list

• Distributors: Must verify that products supplied to state facilities are on the approved list

• Food service operators at state facilities: Must purchase only from the approved list

The compliance criteria for paper cups under SB 1335 include:

• Meeting ASTM D6400 or ASTM D6868 compostability standards (for plastics and coated paper products)

• No intentionally added PFAS (per- and polyfluoroalkyl substances)

• Total organic fluorine concentration below 100 parts per million

• Being regularly collected for composting by at least 75% of organic waste recycling programs statewide and accepted by at least 75% of compost facilities (effective January 1, 2026) 

What Is AB 1276 and How Does It Impact Your Business?

AB 1276, also known as the "Skip the Stuff" law, prohibits food facilities and third-party food delivery platforms from providing single-use foodware accessories—including utensils, straws, stirrers, chopsticks, condiment packets, and cocktail sticks—to customers unless specifically requested.

Who must comply with AB 1276:

• All food service businesses in California: Restaurants, cafes, food trucks, and any establishment serving food or beverages

• Third-party delivery platforms: Uber Eats, DoorDash, Grubhub, and similar services

• Wholesale suppliers: Must ensure their paper cup and accessory packaging enables "upon request" compliance for their food service customers

Key provision: The law specifically bans bundling or packaging foodware accessories with the main item. For paper cup importers and distributors, this means:

• Cups and lids should be packaged separately from cutlery, straws, and condiments

• Wholesale packaging must not include "bundled" accessory kits

• Online ordering systems must allow customers to request accessories individually 

Enforcement and penalties for AB 1276 (as implemented in Burbank and comparable across California):

• First offense: $100

• Second offense: $200

• Third and subsequent offenses: $500 per violation

• 60-day grace period for correction before citations are issued 

What Is SB 54 and Why Does It Affect You?

SB 54 (the Plastic Pollution Prevention and Packaging Producer Responsibility Act) establishes California's Extended Producer Responsibility (EPR) program for single-use packaging and plastic food serviceware. This is the most consequential law for paper cup importers in 2026.

Key targets under SB 54 (by 2032):

• 100% of packaging sold in California must be recyclable or compostable

• 65% of single-use plastic packaging must be recycled

• 25% reduction in single-use packaging overall 

Who is a "producer" under SB 54:

• Manufacturers who produce covered materials sold in California

• Importers who bring covered materials into California for sale

• Brand owners who sell or license covered materials under their own brand

• Estimated over 5,000 producers are covered 

Important exemption: Producers with gross sales of less than $1 million in California in the most recent calendar year may qualify for a small producer exemption—but they must still register with CalRecycle and apply for the exemption. This is not automatic.

What Are the Compliance Deadlines You Must Know?

Critical note: The June 1, 2026 registration deadline has already passed. Producers who failed to act by this date are now in violation. The CAA aims to publish its draft program plan for public consultation on June 15, 2026, with the final plan solidified by October 2026.

What Are the Consequences of Non-Compliance?

The penalties under these laws are substantial and designed to compel action:

Under SB 54, CalRecycle has broad enforcement authority, including:

• Investigating compliance

• Requiring production of records

• Conducting onsite inspections

• Issuing notices of violation (30-day period before penalties begin)

• For ongoing failures (e.g., failure to register or report), each day of non-compliance after the 30-day window constitutes a separate violation 

AB 1276 enforcement follows a phased approach in most jurisdictions:

1. Written notice of non-compliance

2. 60-day correction period

3. Administrative citations if unresolved ($100 first, $200 second, $500 subsequent) 

How Can Importers and Food Service Businesses Ensure Compliance?

For paper cup importers and manufacturers:

1. Verify your producer status under SB 54 immediately. If you sell, import, or distribute paper cups in California, you are likely a covered producer. If you missed the June 1, 2026 registration deadline, contact CalRecycle or legal counsel immediately to address the violation.

2. Ensure your paper cups meet compostability standards. Under SB 1335 and SB 54, paper cups must meet ASTM D6400 (for plastics) or ASTM D6868 (for coated paper products) and be PFAS-free with total organic fluorine below 100 ppm. Cups made of "fiber-based" materials that do not contain plastics or polymers may be exempt from ASTM standards, but must meet alternative criteria.

3. Confirm your cups are accepted by composting facilities. Effective January 1, 2026, cups must be collected for composting by at least 75% of programs statewide and accepted by at least 75% of compost facilities that accept mixed materials. This is a critical practical barrier—many "compostable" cups are still not accepted by most facilities.

4. Adjust packaging for AB 1276 compliance. Ensure your wholesale packaging does not bundle accessories (cutlery, straws, condiments) with cups and lids. This allows your food service customers to comply with the "upon request" requirement.

5. Prepare for fee assessments under SB 54. The data submitted under the June 1 deadline will form the basis for fee calculations, with initial invoices possible in late 2026 and full fee collection beginning in 2027. Fees will be based on packaging types and volumes, with packaging that is easier to recycle or compost likely incurring lower costs.

For food service businesses:

1. Educate your staff that accessories may only be provided upon request. Post signage in-store, online, and at drive-through areas.

2. Update online ordering menus—including third-party delivery partners—to allow customers to request each accessory individually (not bundled).

3. Source only compliant paper cups by January 1, 2026. Verify that your supplier provides documentation showing:

   • BPI certification (ASTM D6400) or equivalent

   • PFAS-free certification

   • Acceptance by local composting facilities

4. Prepare for dine-in reusable requirements. Many cities (including Burbank) require reusable foodware for dine-in customers starting January 1, 2026. Investigate local ordinances in your operating cities.

Conclusion

California's SB 1335, AB 1276, and SB 54 represent a comprehensive regulatory framework that places binding obligations on every participant in the paper cup supply chain—from importers and manufacturers to local coffee shops. The June 1, 2026 registration deadline for SB 54 has passed, and producers who have not complied face penalties of up to $50,000 per day per violation. For importers and brand owners, the key actions are: verify your producer status, ensure your paper cups meet ASTM D6400 or D6868 standards with PFAS-free certification, confirm acceptance by at least 75% of California composting facilities, and redesign packaging to avoid bundling accessories for AB 1276 compliance. With fee assessments beginning in 2027 and enforcement already active, immediate compliance is not optional—it is a business necessity.

FAQ

1. Does SB 54 apply to me if I only sell paper cups online to California customers?

Yes. If you manufacture, import, or sell covered materials (including paper cups) in or into California—whether through physical stores, e-commerce, or wholesale distribution—you are a covered producer under SB 54. The law applies to all products sold, offered for sale, imported, or distributed in California, regardless of sales channel.

2. What is the small producer exemption under SB 54?

Producers with gross sales of less than $1 million in California in the most recent calendar year may qualify for a small producer exemption. However, this is not automatic—you must register with CalRecycle and apply for the exemption. Even exempt producers are required to register.

3. Are paper cups with PE (polyethylene) linings compliant under SB 54?

No. PE-lined paper cups are not considered compostable under ASTM D6400 or D6868 standards, and they are not recyclable in most California municipal programs. To be compliant, paper cups must use aqueous or PLA coatings that meet ASTM D6868 and be PFAS-free.

4. How do I verify that my paper cups are accepted by California composting facilities?

Under SB 1335, effective January 1, 2026, a food service packaging item is considered "compostable" only if it is comprised of materials that are regularly collected for composting by at least 75% of organic waste recycling programs statewide and accepted by at least 75% of compost facilities that accept mixed materials. Check with your supplier for facility acceptance documentation or consult CalRecycle's approved packaging list.

5. What happens if I missed the June 1, 2026 registration deadline for SB 54?

If you failed to register with the Circular Action Alliance (CAA), apply for independent compliance, or claim the small producer exemption by June 1, 2026, you are currently in violation. CalRecycle may issue a notice of violation, after which you have a 30-day period before penalties of up to $50,000 per day begin to accrue. You should immediately contact CalRecycle or legal counsel to address the violation and propose a corrective action plan.

About BTO Packfactory

BTO Packfactory is a professional food packaging factory. If you have any questions, please feel free to contact us.