More than 4 million small businesses exist in California, and almost half of them are minority-owned. With the state facing a fiscal crisis and uncertainty, we cannot afford to implement flawed or costly regulations. Negative impacts on businesses will cause potential harm to the most at-risk and disadvantaged communities in our state.
With these considerations in mind, Governor Newsom recently asked the state’s recycling agency to go back to the drawing board to create equitable and innovative regulations around plastic recycling.
There is no doubt that California is in the midst of a plastic waste crisis, which has become impossible to ignore. Every year, 5.4 million tons of plastic waste are buried in landfills, while another 625,000 tons are burned in incinerators or turned into certain types of fuel. For Californians who live in underserved communities, this crisis is particularly noticeable. After all, plastic plays an essential role in our daily lives. Thousands of minority entrepreneurs rely on plastic to make ends meet for their small businesses, and neighborhoods dotted across the state are no stranger to these landfills located in their own backyards.
In 2022, the passage of S.B. 54, a piece of legislation aimed at reducing plastic pollution and enhancing recycling, marked a new way forward to building a robust and state-of-the-art recycling infrastructure. Finalizing the law’s draft rules is integral to laying the groundwork for implementation and ensuring that California is set up for success now and into the future.
Thanks to Governor Newsom, California has a new opportunity to pave the right path forward by working actively and collaboratively alongside stakeholder organizations like the Hispanic Chamber of Commerce and brands, as well as the environmental groups and industry partners that are committed to practical, effective solutions to ensure that S.B. 54 can be successful in meeting its ambitious recycling targets to make meaningful impacts for all Californians. This is especially crucial, since the previous rulemaking was not as inclusive as it could have been of voices from underrepresented groups like the Hispanic business community.
Our voices are critical because of our experiences, which do not exist in a vacuum, but are directly tied to the economic and environmental wellbeing of the state. The simple truth is, that for minority communities, the stakes are high, and we have to get this right for our next generation.
Hispanic-owned businesses, particularly in industries such as food service, retail, and manufacturing, are disproportionately affected by the rising costs and operational challenges of fulfilling California’s recycling and packaging waste regulations. The previous draft regulations would have placed financial and logistical burdens on our minority-owned small businesses – many of which operate on razor thin margins and are still recovering from the economic impact of the COVID-19 pandemic and the recent wildfires across Los Angeles County – that could have spelled disaster.
Many of those burdens were brought on by the initial draft regulations placing significant roadblocks in the way of recycling innovation, making California reliant on a narrow set of existing mechanical recycling technologies, despite their limitations.
We know our state’s recycling infrastructure can do better, and while single use plastic continues to be an essential part of Californians’ daily lives, we need an answer that acknowledges that fact and confronts the deeply rooted, systemic challenges we face. Californians understand that mechanical recycling alone is insufficient, due to its inability to process the vast majority of hard-to-recycle plastic packaging that is very commonly used by our small businesses, like small grocery stores, medical facilities and others.
We need leading-edge technologies to address the critical problems posed by a lack of recycling infrastructure, including how recycling costs impact minority businesses and consumers. What’s clear is that this moment calls for more than just business as usual – it requires innovative solutions. The recycling technology exists today that can make that solution a reality for California. As a leading organization in the state’s Hispanic community, we recognize the importance of harnessing that technology for our businesses and our families, and working collaboratively with state and local agencies as well as community voices to find the best answers to the hard questions around economic sustainability and growth. Hispanic businesses must have a seat at the table – ensuring that the solutions that are developed, are developed holistically.
This is about ensuring that no community is left behind in California’s transition to a more sustainable future. It’s time for the state to begin championing innovative recycling solutions that protect both our environment and the economic well-being of Hispanic businesses. By working with Hispanic and other minority stakeholders, as well as other partners across industry, California can maintain its national leadership in environmental sustainability while fostering economic equity for everyone.
Author’s Bio:
Julian Cañete serves as the President and CEO of the California Hispanic Chambers of Commerce. Through its network of over 80 Hispanic chambers and business associations, the CHCC is a leading voice on issues impacting business in California.
Copyright © 2025 California Business Journal. All Rights Reserved.
For California Business Journal Disclaimers, go to https://calbizjournal.com/terms-conditions/.
