The American Forest & Paper Association has urged California to pause implementation of SB 54, the state's extended producer responsibility law for packaging, and reconsider its treatment of paper and paper-based packaging. The call comes amid litigation in CLFP v. Bonta that is being used to raise further challenges to the law. AF&PA argues the rules impose similar obligations on materials with very different recycling profiles, adding cost without improving existing paper recycling systems.
Why this mattersA pause or rewrite of SB 54's paper provisions would alter compliance costs and recycled-content obligations for fibre packaging producers selling into California.
- AF&PA Vice President of Government Affairs Julie Landry issued the statement responding to the CLFP v. Bonta case
- The litigation is being used as a vehicle to raise additional challenges to SB 54
- AF&PA says SB 54 applies similar obligations to materials with substantially different recycling characteristics
- The association cites decades of investment in recyclable product design, recovered-fibre mill capacity and collection infrastructure
- AF&PA warns the requirements could disrupt recycling markets and increase uncertainty for manufacturers and consumers
- The statement sets out a policy position and does not announce a court ruling
California's SB 343 truth-in-labelling law, which restricts use of recyclability symbols such as the chasing arrows, applies to products and packaging made after 4 October 2026, according to CalRecycle. A preliminary injunction granted in July suspended most enforcement, but companies that do not comply remain exposed to private lawsuits. Amcor says the resulting uncertainty is stalling moves to formats such as paper-based flexible packaging, while How2Recycle is continuing to prepare for compliance.
Why this mattersUnresolved recyclability-claim rules leave US converters exposed to private litigation and are holding back commitments to new recyclable formats such as paper-based flexibles.
- SB 343 restrictions on recyclability claims apply to products and packaging made after 4 October 2026, according to CalRecycle
- A preliminary injunction granted in July 2026 suspended most enforcement, but private lawsuits against non-compliant companies remain possible
- Under SB 343, a material may be called recyclable only if it is collected by programmes covering at least 60 per cent of California's population and sorted at facilities serving at least 60 per cent of state recycling programmes
- Recyclability determinations under SB 343 also feed into the extended producer responsibility programme created by SB 54 of 2022
- Sarah Paleg, sustainability director at Amcor's flexible packaging division, says the law has added a new level of substantiation and is stalling shifts to formats such as paper flexibles
- How2Recycle processed about 35,000 label requests this year as users migrated to How2Recycle Pro, with requests up 29 per cent year on year
US shipments of packaging and special packaging paper rose 2% year on year in September 2026, while printing and writing paper shipments fell 9%, according to the American Forest & Paper Association. Packaging paper shipments were up 4% in the first nine months of 2026, and unbleached packaging paper capacity utilisation reached 90.9% in September. Packaging paper imports rose almost 10% over the nine months, with unbleached bag, sack and multiwall imports up 24.2% and shipments of those grades from Canada up almost 30%.
Why this mattersPackaging paper demand holds while printing grades shrink, and 90.9% unbleached utilisation alongside rising Canadian imports adds competitive pressure on US domestic producers.
- US packaging and special packaging paper shipments rose 2% year on year in September 2026.
- Packaging paper shipments in the first nine months of 2026 were 4% above the same period of 2025.
- Unbleached packaging paper capacity utilisation was 90.9% in September 2026.
- Printing and writing paper shipments fell 9% year on year in September, with inventories down 6% from August.
- US packaging paper imports rose almost 10% in the first nine months of 2026.
- Imports of unbleached bag, sack and multiwall paper rose 24.2%, with shipments from Canada up almost 30%.
US packaging papers and specialty packaging shipments in the US rose 4% in August 2026 versus a year earlier, with year-to-date shipments up 5% over the first eight months, the American Forest & Paper Association reported. Unbleached bag and sack shipments hit a record of nearly 119,000 short tons in August, up 8.4% year-to-date, while the bleached packaging papers operating rate reached 91.1%.
Why this mattersRising shipments and operating rates signal firmer US demand for packaging papers, a leading indicator for converters and box makers sourcing from the sector.
- Total US packaging papers and specialty packaging shipments up 4% in August 2026 versus August 2025
- Year-to-date shipments up 5% over the same eight months of 2025
- Unbleached bag and sack shipments hit a record of nearly 119,000 short tons in August, up 8.4% year-to-date
- Bleached packaging papers operating rate reached 91.1%, above 90% for the third time in 2026
- August 2026 inventories up 1% year-on-year, the highest level in 13 months
The US House Energy and Commerce Committee voted 28 to 19 on 16 September 2026 to send H.R. 7502 to the House floor, a bill that would count advanced recycling as recycling and set a national standard for recycled-content labelling claims, overriding state rules. The American Forest & Paper Association opposes the bill. Conservative group Consumer Action for a Strong Economy has written to International Paper, Pratt Industries, Kimberly-Clark, Packaging Corporation of America, Smurfit Westrock and Procter & Gamble, all of which have executives on the AF&PA board, asking them to make the association drop its opposition or reconsider membership.
Why this mattersFederal rules on recycled-content claims would set one standard across the states and expose the split between paper and plastics recycling interests.
- The House Energy and Commerce Committee voted 28 to 19 on 16 September 2026 to advance H.R. 7502, sponsored by Republican New York Rep. Nick Langworthy.
- The bill would set a national standard for when a product can be labelled as made with recycled material and would override state rules on those claims.
- AF&PA opposes the bill, spokesperson Lindsay Murphy told Politico; the association says recycled-content claims should reflect the material actually in the product.
- Consumer Action for a Strong Economy sent September letters to International Paper, Pratt Industries, Kimberly-Clark, Packaging Corporation of America, Smurfit Westrock and Procter & Gamble.
- The letters ask each company to make AF&PA stop opposing advanced recycling legislation or reconsider its board membership.
- Texas Rep. Marc Veasey was the only Democrat to vote for the bill, and no Senate version has been introduced.
The American Forest & Paper Association is lobbying for commercial paper and packaging recycling to be excluded from extended producer responsibility (EPR) programmes in the US. The association argues these materials already move through established, privately funded recycling systems and that including them in EPR would amount to double-charging businesses that do not use residential recycling services.
Why this mattersThe position, if adopted by lawmakers, would narrow the scope and funding base of state EPR schemes for paper-based packaging.
- AF&PA is urging exclusion of commercial paper and packaging recycling from EPR programmes
- The association argues commercial packaging already achieves high recycling rates through privately funded systems
- AF&PA says inclusion in EPR would mean businesses pay for recycling services they do not use
- AF&PA represents the US paper and wood products industry
US shipments of printing and writing paper fell 7% year-on-year in August 2026, the fourth straight monthly decline, the American Forest & Paper Association reported. Underlying demand has held up better, with US purchases of the paper rising slightly in July even as net imports of the three main grades jumped 26% year-on-year that month. Domestic capacity fell 13.9% during 2025 to 7.7 million tons, pushing the industry's operating rate up to 82.8%.
Why this mattersA widening gap between resilient US demand and shrinking domestic capacity signals growing reliance on imports for printing and writing paper.
- US printing and writing paper shipments fell 7% year-on-year in August 2026, per AF&PA.
- Shipments had already fallen 9% in July, 8% in June and 14% in May 2026.
- US purchases of printing and writing papers rose slightly in July 2026 despite the shipment declines.
- Net imports of the three major grades rose 26% year-on-year in July 2026; uncoated freesheet up 38%, coated freesheet up 51%, mechanical paper up 13%.
- US domestic printing and writing paper capacity fell 13.9% in 2025 to 7.7 million tons, after a 6.9% decline in 2024, down from almost 18 million tons in 2015.
- The industry's operating rate rose from 76.8% in 2024 to 82.8% in 2025 as capacity was cut; Pixelle Specialty Solutions ceased production at its Chillicothe, Ohio mill in August 2025.
