In the global race to reduce plastic pollution, manage packaging waste, and create new jobs in the process, the United States risks falling behind - not because of a lack of innovation, but because of outdated federal regulations. At the heart of the problem lies a little-known provision in the USDA’s National Organic Program (NOP) that is stifling the adoption of compostable packaging, even as states like California push forward with ambitious waste reduction goals.
The NOP was established under the Organic Foods Production Act in 1990. It sets and enforces standards for organically produced agricultural products in the U.S. including provisions for what feedstocks can be used to produce compost certified as organic. As this framework is over 25 years old, it does not contain updated definitions that allow for safe, compostable packaging now available on the market to be used in organic compost. Compostable packaging is responsible for increasing the diversion of more nutrient-rich food scraps to compost, meaning there is a valuable compost feedstock being left out of the production of organic compost.
In California, the NOP definitions have proven to be a hurdle. California statute, established by AB 1201(from 2021), requires that any product labeled as “compostable” or “home compostable” must meet certain regulatory requirements. It must obtain third-party certification. It must contain no intentionally added PFAS (a group of toxic chemicals that do not break down easily in the environment). It must be limited to packaging directly associated with food and organic waste.
This well-intentioned law also ties its definition of compostable packaging to the USDA NOP standards. That means if the USDA doesn’t define compostable products as allowable under its NOP rules, they can’t be sold as compostable in California, which is the world’s fourth-largest economy.
Instead of encouraging innovation and economic growth, the USDA’s rigid rules on compost feedstocks are instead creating confusion and uncertainty in the marketplace. Take, for example, CJ Biomaterials and its product, PHACT, which is a bioplastic made from polyhydroxyalkanoate (PHA), a naturally occurring polymer produced through fermentation of plant-based sugars. PHACT is certified as fully biodegradable in soil, freshwater and marine environments, and can be composted both industrially and at home. It represents the kind of breakthrough technology for safe, non-toxic materials that the U.S. should be championing.
California recently granted an 18-month extension on implementation of AB 1201’s NOP provision signaling recognition of the need for compostable products in California. However, the challenge now is securing a permanent federal fix. Without federal action, companies like CJ Biomaterials face the prospect of being locked out of key markets despite offering technically advanced and environmentally superior products.
In addition to the manufacturers of compostable polymers and products, a large set of stakeholders will be helped by the definition change, including restaurants, organic farmers and growers, schools and colleges that serve millions of meals per day, infrastructure and equipment manufacturers, consumers who need foodservice and food packaging, governments that want to reduce organic materials in landfills and have to manage large volumes of packaging and food waste, and the chemical industry, which has invested significantly in developing compostable alternatives.
The irony is that compostable packaging is exactly what California, and other states need to meet their climate and waste diversion goals. Compostable materials not only reduce landfill waste but also help divert food scraps — one of the largest sources of emissions of methane, a greenhouse gas — from landfills to composting facilities. Products like PHACT are particularly well-suited for food packaging, utensils and flexible films that often contain food residue and therefore are inherently ideal for composting.
The USDA must act. It should revise the NOP to allow for the use of compostable products as a feedstock. This change will reflect modern materials science and the evolving role of compost as a solution for addressing both food and packaging waste. USDA should also work with industry stakeholders, composters and state regulators to develop clear, science-based standards supporting the growth of compostable packaging while protecting compost quality and end markets.
This is not just an environmental issue; it’s an economic and national security one. Bioplastics like PHA are made from crops such as corn, canola, and sugar beets, and have the potential to create new markets for American farmers and rural communities. Bioplastics support both agriculture and domestic manufacturing.
The U.S. has the opportunity to lead in this critical sector, but only if federal policy keeps pace with innovation. We can create new jobs, build local and state economies and support an American industry that is virtually future proof. Other countries are moving quickly to support biopolymer manufacturing and compostable packaging. If the USDA does not fix outdated rules, the U.S. risks ceding industry leadership, and the jobs that come with it, to global geographies actively creating infrastructure.
The USDA’s NOP was never designed to regulate packaging. It’s time to modernize it for the 21st century. Congress and the Trump administration should direct the USDA to initiate rulemaking that reflects today’s compostable technologies and tomorrow’s economic goals.
Max Senechal is the Chief Commercial Officer for CJ Biomaterials.
