Connect with us

Business

Sweeping California law on single-use plastic meets with outrage from all sides as it goes live

Published

on

Sweeping California law on single-use plastic meets with outrage from all sides as it goes live

Within days of California’s long-anticipated single-use plastic law going into effect, environmentalists, anti-waste activists and the packaging industry reacted with anger and frustration.

Anti-plastic activists say Gov. Gavin Newsom’s administration and CalRecycle inserted exemptions favoring the plastic industry into the law’s regulations that weaken it and undermine legislative intent.

“These new rules create huge loopholes for plastic packaging that violate the law,” said Avinash Kar, senior director of the toxics program at the Natural Resources Defense Council.

On the other side, the packaging industry has sued over similar laws in other states. “Our members have real concerns about cost, compliance, and constitutionality,” said Matt Clarke, spokesman for the National Assn. of Wholesaler-Distributors, which sued Oregon earlier this year over a similar waste law.

Advertisement

CalRecycle, the state’s waste agency, did not respond in time for publication. The final regulations putting the law into effect were released May 1 and posted for review Tuesday.

The environmental organizations say the law’s new final regulations open the door to what is known as “chemical recycling,” which produces large amounts of hazardous waste. The law also contains problematic exemptions for certain categories of plastic foodware, they say.

The language of the law forbids any kind of recycling that would produce significant amounts of hazardous waste. The new regulations allow for these recycling methods if the facilities are properly permitted.

The new regulations also exempt certain products if they are already covered by federal law. For instance, a packaging company, retailer or distributor can claim that they have such a preemption, Kar said, and CalRecycle might not immediately review that claim. “And as long as they don’t review it, they’ll get the exemption for as long as CalRecycle doesn’t review it,” creating a potential “forever loophole.”

“Californians were promised a system where producers take real responsibility for the waste they create,” said Nick Lapis, advocacy director for Californians Against Waste. “When regulations introduce broad exemptions and redefine key terms, that promise starts to erode. The details matter here, and right now they don’t line up with the intent of the law.”

Advertisement

Senate Bill 54, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, was signed by Newsom in 2022. It was considered landmark legislation because it addressed the scourge of single-use plastics, requiring plastic and packaging companies to use less of them and ensuring that by 2032, all food packaging is either recyclable or compostable.

Accumulating plastic waste is overwhelming waterways and oceans, sickening marine life and threatening human health.

The law’s intent was not only to reduce it, but also to put the onus and cost of dealing with it on packaging producers and manufacturers, not consumers and local governments. It was supposed to incentivize companies to consider the fate of their products and spur innovation in material redesign.

According to one state analysis, 2.9 million tons of single-use plastic and 171.4 billion single-use plastic components were sold, offered for sale, or distributed during 2023 in California.

Similar laws have been passed in Maine, Oregon, Colorado, Minnesota, Maryland and Washington. Oregon’s law, however, is on hold while a lawsuit by the National Assn. of Wholesaler-Distributors works its way through the courts.

Advertisement

“We see a lot of the same problems in California that we flagged in Oregon,” said Clarke, the trade group spokesman. “Given California’s scale, the cost implications are going to be even larger. Our legal counsel has noted that California’s proposed fees are already higher than what other states have put forward.”

Jan Dell of Last Beach Cleanup, an anti-plastic waste group based in Laguna Beach, doesn’t believe the law will work — irrespective of the final regulations — and said the “exorbitant” cost of its implementation will either spur producers to sue, or they’ll end up passing the higher costs on to consumers.

She referred to a report from the Circular Action Alliance, the state-sanctioned group established to represent and oversee the implementation of the law on behalf of the plastic and packaging industry. It finds the law will increase the cost of disposal between six and 14 times for common products, such as Windex bottles, made of polyethylene terephthalate.

“If the producers don’t successfully sue to stop the fees, this will certainly add to product inflation for CA consumers,” she said in an email. “Californians already have to pay exorbitantly high curbside collection fees for trash, recycling, and organics … so, starting in 2027, our groceries will cost a LOT more but we won’t see a reduction in our waste bills.”

Christopher “Smitty” Smith, a partner at law firm Saul Ewing in Los Angeles, who councils companies and interest groups on SB 54 and other Extended Producer Liability laws, said that although he could see areas of the law that “could be sharper and avoid the legal challenges … you can’t stop people from suing.” Environmentalists and anti-waste activists say they are preparing a lawsuit.

Advertisement

Smith said the law already has sparked changes in how companies think and respond to concerns about waste.

One of his national fast-food chain clients has realized that if its brand name is on plastic packaging, it’s that company’s responsibility, he said, so “they’ve spent the past year mapping out their franchise agreements, their supply chain agreements, their producer agreements, to figure out” what it needs to do to comply.

He said in the past, companies have paid little attention to these details and just let their franchisees figure this kind of thing out. Now, they’re spending a lot of time and money “to wrap their arms around what their supply chain looks like and like, what post consumer use of their plastic products looks like and what their regulatory obligations are.”

It’s bringing a new dialogue within companies. And that, Smith said, is what could make this law so powerful.

Times staff writer Meg Tanaka contributed to this report.

Advertisement

Business

Snap CEO Evan Spiegel and Miranda Kerr help erase $550 million in medical debt for Californians

Published

on

Snap CEO Evan Spiegel and Miranda Kerr help erase 0 million in medical debt for Californians

Snap Chief Executive Evan Spiegel and his wife, supermodel Miranda Kerr, have helped pay off $550 million in medical debt for more than 261,000 Californians.

The couple made a multimillion-dollar donation to Undue Medical Debt, a nonprofit that provides debt relief to people in financial need. The organization acquires medical debt in bulk from hospitals, physician groups, collection agencies and other groups for a fraction of the cost.

“When someone you love is sick. All you want to do is focus on helping them get better,” Kerr said in a video with Spiegel. “That’s why we wanted to support this effort and help relieve medical debt, so families can focus on caring for their loved ones and really supporting their healing.”

The couple and the nonprofit didn’t disclose the exact amount of the donation, but a small gift can go a long way. Every $10 donated to Undue Medical Debt relieves an average of $1,000 in medical debt.

The gift comes as Americans struggle with the medical debt and rising cost of living. California is one of the most expensive states to live in because of soaring housing costs and energy prices. Concerns about wealth inequality have sparked heated political debates about how much billionaires should contribute.

Advertisement

In the United States, 1 in 4 adults are in medical debt, said Undue Medical Debt President and Chief Executive Allison Sesso in a statement.

“It’s a growing crisis undermining healthcare access, economic wellbeing and mental health and we’re so grateful that Evan Spiegel and Miranda Kerr share our belief that no one should go bankrupt because of a cancer diagnosis and no family should have to choose between insulin and groceries,” she said.

Californians whose medical debt have been paid off will start receiving a letter in mid-July from Undue Medical Debt informing them of the debt relief. Individuals can’t request debt relief because the nonprofit acquires bundled debt for thousands of people at once. Those who qualify for debt relief either earn at or below 400% of the federal poverty level or have medical debt that is more than 5% of their income, the nonprofit says on its website.

San Diego County residents benefited the most from the donation with total medical debt relief through the couple’s gift totaling roughly $99 million and affecting 40,369 people. In Los Angeles County, the gift provided $26.7 million in medical debt relief to 17,466 people, according to the nonprofit.

Spiegel, whose net worth is roughly $2 billion, and Kerr have helped relieve debt for others in the past. In 2022, the couple paid off the student loans for the Otis College of Art and Design’s graduating class.

Advertisement

In 2025, Spiegel was among business leaders and philanthropists who helped form the Department of Angels, a group that aims to help L.A.’s fire recovery efforts. The California Community Foundation, Snap, Spiegel and Snapchat co-founder Bobby Murphy committed $10 million to help start that group.

Roughly 200,000 people lost their homes in the January 2025 Los Angeles County wildfires. Spiegel, who grew up in Pacific Palisades and lost his childhood home in the fires, donated $5 million in immediate aid with Snap and Murphy that month.

He said in a statement that California has given so much to him and his family and that he cares “deeply about the wellbeing of our communities.”

“At a time when many families are already facing rising costs across nearly every aspect of daily life, an unexpected medical bill can create financial stress that lasts for years,” Spiegel said.

Undue Medical Debt said it’s abolished more than $40 billion of medical debt in all 50 states.

Advertisement
Continue Reading

Business

An electric truck for less than $25,000? Deliveries begin this year

Published

on

An electric truck for less than ,000? Deliveries begin this year

The electric vehicle company Slate Auto set out in 2022 to make the most affordable electric truck in the country. This week, it unveiled the price tag: $24,950.

At a time when demand for new electric vehicles is cooling and cars are getting harder to afford, Slate’s customizable truck could bring a fresh wave of excitement to the industry.

Deliveries will begin later this year and accelerate in 2027, the company said. Slate’s vehicle is built around a simple concept — pay only for what you actually want.

Buyers will start with a basic truck without power windows or even paint and can then customize it however they like. They can tailor-make their “blank slate” by paying extra for smart phone-compatible screens, speakers, colored wrap or paint. A $5,000 kit even converts the truck into an SUV.

Slate’s design team is based in Los Angeles County and recently moved into a new space in Carson, which employs about 50 workers. The company’s headquarters are in Troy, Mich., and its vehicles will be produced in Warsaw, Ind.

Advertisement

Squeezing out as much cost as possible while making it as easy as Legos to snap on different options has required complex engineering, which is why the company decided to set up its design studio in Southern California. The region is full of experts.

“Slate has done something smart,” said auto industry analyst Brian Moody. “Their EV isn’t only about price, there’s also a strong personalization element. In Southern California, the boxy, retro look will earn it a lot of attention.”

LONG BEACH, CA - DECEMBER 19: A manual window crank comes standard in the Slate truck. The company is a new EV startup up with its design studio in Long Beach, CA. They make a low-cost, customizable truck and SUV that allows the customer to buy only the features they want. Photographed on Friday, Dec. 19, 2025. (Myung J. Chun / Los Angeles Times)
Slate is an EV startup that makes electric trucks and SUVs. Customers buy only the features they want. Photographed on Friday, Dec. 19, 2025.

Slate is an EV startup that makes electric trucks and SUVs. Customers buy only the features they want. Photographed on Friday, Dec. 19, 2025. (Myung J. Chun/Los Angeles Times)

The company is building a marketplace of accessories for customers to choose from, including 54 basic wraps that cost less than $500 each. In contrast, a paint job on a car can cost thousands of dollars. The marketplace also offers roof stacks, zip-on seat covers and stereos.

Advertisement

For just under $30,000 total, customers can get a basic SUV in a fastback or squareback style. Whether it’s configured as a truck or SUV, the EV will have an estimated range of 205 miles and will be compatible with Tesla chargers.

“This is the first time in automotive history that consumers are going to get to choose,” said Slate Chief Executive Peter Faricy, who joined the company in March after 13 years with Amazon.

“It started with design, then engineering, and eventually manufacturing, and we figured out innovations in all three of those phases that make the vehicle less expensive,” he said.

For example, Slate vehicles were designed from the beginning to be wrapped instead of painted. The company will offer more than 100 colors of wrap at its launch, or customers can choose a custom color.

Slate did not disclose financial information or how much the vehicles cost to produce. However, Faricy said the company will generate a positive gross margin on its vehicles, meaning they are selling for more than what they cost to make.

Advertisement

“Whether Slate succeeds or fails, it has already influenced the conversation … forcing the industry to ask why affordable vehicles have become so rare,” said Jesse Toprak, an industry analyst and founder of OptiCar.ai. “They are betting on making higher profit margins on the accessories and do-it-yourself angle.”

Slate says it has already received more than 180,000 reservations. The earlier a customer placed their reservation, the sooner they’ll get their vehicle. Pre-orders opened Wednesday for $300, or $250 if the customer has already paid a $50 reservation fee.

Despite the hype, Slate is still a startup that has yet to prove itself in the market. The company has about 750 employees and has raised more than $700 million from Amazon’s Jeff Bezos and others.

“For the vehicle itself, the concept is brilliant,” Toprak said. “I think the execution risk is enormous.”

The EV industry has been under fire from the Trump administration, which has removed incentives for ownership and clean-car goals. Major automakers including Ford and Stellantis have pared back their EV offerings, and other startups have struggled to turn a profit.

Advertisement

The Irvine-based EV company Rivian, which hasn’t reached profitability since its founding in 2009, recently laid off hundreds of workers. It launched its highly anticipated R2 SUV earlier this month, which will eventually be available for less than $45,000.

Lucid, the luxury electric vehicle maker based in Newark, Calif., announced this week that it’s reducing its workforce by 18%. The cuts come just months after it laid off 319 Bay Area employees in February.

Faricy, Slate’s chief executive, said the company’s vehicle will appeal to a wide range of customers.

“There will be a lot of people that are attracted to the affordability but have never had an EV before,” he said.

According to Cox Automotive, the average transaction price for a new EV in the U.S. is $55,000, compared with $49,000 for a gas-powered vehicle.

Advertisement

“The EV market at this point doesn’t have a technology problem anymore,” Toprak said. “It has an affordability problem. Slate is one of the first companies built entirely around solving that.”

Continue Reading

Business

Sony Pictures invests $100 million in virtual reality venue Cosm

Published

on

Sony Pictures invests 0 million in virtual reality venue Cosm

Sony Pictures will invest $100 million and take a minority stake in virtual reality venue operator Cosm, as the studio continues to build a business in communal experiences.

As part of the investment, Sony Pictures Chief Executive Ravi Ahuja will also join Cosm’s board of directors, the studio said Wednesday. The size of Sony’s minority stake was not disclosed.

The El Segundo-based Cosm currently operates three venues — one at Hollywood Park in Inglewood, and the others in Dallas and Atlanta. The company plans to open additional venues in Detroit and Cleveland.

Cosm bills itself as a “shared reality venue,” and its facilities center around a massive, wraparound screen that is intended to envelop viewers with additional digital effects. The company has largely focused on sports, though it has also shown Cirque du Soleil shows and done several collaborations with Warner Bros., including recent screenings of 2001’s “Harry Potter and the Sorcerer’s Stone” in honor of the film’s 25th anniversary.

Advertisement

“Cosm sits at the intersection of several trends shaping the future of entertainment,” Ahuja said in a statement. “We’ve followed Cosm since before launch and have been impressed with the quality of the experience and the enthusiasm it’s generating with audiences.”

The investment is Sony’s latest venture into experiential entertainment. In 2024, the Culver City-based studio acquired dine-in theater chain Alamo Drafthouse Cinema.

Continue Reading
Advertisement

Trending