CA’s recycling revolution must include Hispanic-owned businesses

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OPINION – Latino entrepreneurs are at the heart of communities across California, from family-owned restaurants to small logistics companies and neighborhood markets. They create jobs, bring vibrancy to our neighborhoods, and keep local economies moving. When we talk about California’s future and all of the opportunities available to our citizens, we cannot leave these businesses out of the conversation.

Yet, despite their importance, Latino entrepreneurs face systemic challenges that limit their ability to grow and thrive. Access to capital is often more difficult, and regulatory compliance can be far more burdensome for small operators without large teams or resources. These barriers can affect whether businesses can expand, hire new employees, or even keep their doors open.

This is why the implementation of SB 54, California’s ambitious plastic reduction and recycling law, is so important to get right. The environmental goals behind the law are ones we all share. We want a cleaner, more sustainable California for future generations. But if the regulations are carried out without sensitivity to the realities facing small and minority-owned businesses, we risk leaving many behind in the process.

For Latino business owners, the stakes are exceptionally high. Many operate with razor-thin margins and simply do not have the cushion to absorb major new costs. Compliance with complex rules may require investments in new systems or staff that are out of reach. Because these businesses are often deeply embedded in their local communities, owners, workers, customers, and neighborhoods feel the impact of closures or cutbacks.

The good news is that progress has already been made. Regulators and the Newsom Administration have shown a willingness to listen to the concerns of small and minority-owned businesses and to adjust proposals accordingly. This is a step in the right direction, and we appreciate the administration’s concern for business interests. But it is essential that this dialogue continue as SB 54 moves from paper to practice.

What California needs is an implementation strategy that matches ambition with equity. That means rules that account for the diversity of our economy and allow small businesses time and support to adapt. It means creating pathways for compliance that do not shut out those with fewer resources. And it means ensuring that all communities, regardless of size or wealth, can share in the benefits of a greener future.

California has long been a leader on environmental issues, but leadership is measured not only by the goals we set, but by how we achieve them. If SB 54 is implemented thoughtfully, it can serve as a model for the rest of the nation, showing that environmental progress does not have to come at the expense of small business vitality.

The California Hispanic Chambers of Commerce stands ready to partner in this process. We believe in the vision of a more sustainable California. Still, we know that vision will only be realized if Latino and other minority-owned businesses are part of the solution. Our entrepreneurs want to contribute to a cleaner future, and they should be able to do so without being pushed to the brink.

California is strongest when all its communities can thrive. The proposed SB 54 regulations present an opportunity to prove that economic growth and environmental stewardship are not at odds but can, in fact, reinforce one another. Let us seize that opportunity together.

Julian Cañete serves as the President and CEO of the California Hispanic Chambers of Commerce (CHCC).