Biodegradable & Compostable Plastic Regulations and Rules in North America

The regulatory landscape for biodegradable and compostable plastics in North America is complex, fragmented, and evolving rapidly. Here’s a breakdown of the key rules, standards, and trends across the United States, Canada, and Mexico.

What are “Biodegradable” and “Compostable”?

  • Biodegradable: A vague term often banned in marketing because everything eventually degrades (even if it takes 500 years).
  • Compostable: A specific legal claim meaning the item breaks down into organic matter within a set timeframe (usually 90-180 days) in a specific environment.

Key Certification Bodies & Standards in North America

1. BPI (Biodegradable Products Institute): The leading third-party certifier in the U.S. Products must meet ASTM standards to earn the BPI “Compostable” logo.

BPI certificate
  • ASTM D6400: Standard specification for compostable plastics that are designed to be composted in industrial composting facilities. To align with this standard, a product must undergoes a series of four-part tests. This includes elemental analysis, plant germination and mesh filtration of the end resulting matter.
  • ASTM D6868: Standard for biodegradable plastic film or coatings on a compostable product (e.g., coffee cups). The tests determine whether or not the entire product can be composted in an aerobic composting facility.

2. TUV Austria: European certifier with global reach. Their OK Compost INDUSTRIAL and OK compost HOME marks are respected in North America.

3. BNQ (Bureau de normalisation du Québec): The primary Canadian standard body.

  • CAN/BNQ 0017-088: The standard for compostable plastics (recently aligned with ISO 17088 and ISO 18606). Quebec’s rigorous standard, often used as a benchmark nationwide.

4. ISO 17088 & NMX-E-273 (Mexico): The standards used for compliance in Mexico.

United States: A State-by-State Patchwork

There is no comprehesive federal law governing compostable plastics in America. The Federal Trade Commission (FTC) does not make laws but provides general “Green Guides” against deceptive marketing, and the USDA has a bio-preferred program, but regulation is primarily at the state and municipal level.

Federal Level

  • FTC Green Guides

It is considered deceptive to make an unqualified “biodegradable” claim for items destined for landfills, incinerations, or recycling facilities because nothing biodegrades there within a reasonable time (one year). The “compostable” claim must be substantiated by scientific evidence. If industrial composting facilities are not available to a “substantial majority” (60%) of consumers where the product is sold, the claim must be qualified (e.g., “Compostable only in commercial facilities, which may not exist in your area”).

  • USDA BioPreferred Program

The project aims to promote “increased purchase and use of bio-based products” and “designate bio-based product categories to enjoy federal procurement priority.” It includes compostable products like compostable bags, cups, disposable cutlery, plates, food containers.

State Level

Several states have passed laws that are stricter than federal guidelines to prevent greenwashing and contamination of compost streams.

  • California

California’s Public Resources Code 42357 prohibits selling plastic products labeled as “biodegradable,” “degradable,” or “decomposable” unless they meet specific scientific standards. Product labeled or marked as “biodegradable” or “compostable” must compline with ASTM D6400 or ASTM D6868 standard. These standards means that products can break down completely within 180 days in commercial composting facilities.

In 2022, California’s SB 1383 law took effect, requiring every jurisdiction to provide organic waste collection services to all residents and businesses. Regarding collection methods, state regulations permit the use of compostable bags for holding organic materials like food scraps, paper, leaves, and green waste, provided they meet specific standards. Additionally, the law prohibits the sale or distribution within California of any compostable plastic bags that do not comply with these standards.

In 2025, California’s SB 54 legislation mandated that all single-use packaging must be recyclable or compostable by 2032.

  • Washington

Under RCW 70A.455, you may not label a plastic bag as “biodegradable,” “degradable,” “decomposable,” or “oxo-degradable.” These terms are considered misleading because they imply the bag will disappear in a landfill, which is not true. You can use the “compostable” term if the product meets specific standards. These standards include ASTM D6400 and ASTM D6868, verified by BPI. In addition, the color must be green, beige, or brown color. Because a regular plastic bag that is tinted green or brown will confuses consumers.

Under the single-use bag ban (RCW 70A.530), standard thin carryout bags are illegal. Stores can only provide specific alternatives, and most come with mandatory fee.

Bag TypeMandatory Fee
Paper carryout bags8¢ charge. (A minimum of 40% recycled content)
Plastic reusable bags12¢ charge (must be 2.25 mil thick + 40% recycled content
Produce/Meat BagsNo Charge (exempt from ban)
  • New York

In 2020, New York passed legislation prohibiting the use of plastic bags to package items in stores. The bill also encourages customers to bring their own reusable plastic bags, which must meet strict standards, including being hand-washable or machine-washable, reusable at least 125 times, and capable of holding 22 pounds of items within a distance of 175 feet. The state defines compostable/biodegradable plastic as “plastic”. Therefore, a grocery store cannot hand out a compostable plastic bag at the register.

If you are distributing or selling compostable bags (e.g., as a box of trash liners or as a restaurant takeout bag), you must follow strict labeling rules to prevent them from contaminating recycling streams.

Mandatory Text: The bag must be clearly labeled:

  • “COMPOSTABLE BAG — DO NOT PLACE IN RECYCLING BIN”
  • Recycling Status: Compostable bags are strictly prohibited in store drop-off film plastic recycling bins. They ruin the recycling batch for regular plastic.

Unlike Washington or California, New York does not currently have a fully enacted statute that explicitly bans the word “Biodegradable” on all consumer products, but using it is legally risky and generally discouraged. If you label a bag “biodegradable,” you must have scientific proof that is breaks down completely in a landfill within a reasonably short time. “Compostable” is the preferred legal term. To use it, your product should meet ASTM D6400 and ASTM D6868 standards.

  • Oregon

Under Oregon’s Sustainable Shopping Initiative (House Bill 2509), single-use checkout bags are banned statewide. This applies to all retail stores and restaurants.

Bags labeled “biodegradable,” “compostable,” or “made from plants” are not exempt from this ban. They are regarded as single-use plastic bags and are prohibited at checkout.

Allowed (With Fee):

  • Recycled Paper Bags: Must contain at least 40% post-consumer recycled content.
  • Reusable Plastic Bags: Must at least 4 mils thick and have handles.
  • Reusable Fabric Bags

Retails must charge at least 5 cents per bag for the allowed paper and reusable plastic bags. Restaurants may provide paper bags for free. Small bags for bulk items (produce, nuts, screws), meat wrapping, pharmacy prescriptions, and dry cleaning are exempt from the fee and the ban.

  • Massachusetts

There are currently over 160 cities and towns (representing roughly 70% of the state’s population) with their own bag ordinances. These local laws differ significantly regarding biodegradable and compostable bags.

In major cities like Boston, Cambridge, and Brookline, compostable plastic bags are a legal alternative to single-use thin plastic bags. Retailers may provide compostable plastic bags at checkout. But there is typically a mandatory fee that the customer must pay for the bag. In addition, these bags must meet specific certification standards, usually ASTM D6400, to prove they are commercially compostable.

Some towns have stricter bylaws that ban all thin film bags, regardless of the material.

In these municipalities, bags labeled “biodegradable,” “compostable,” or “bio-plastic,” are banned just like conventional plastic bags. Because they view these bags as a contaminant in recycling streams or litter that does not degrade quickly enough in the natural environment. The citizens of these towns can only use reusable bags (thick plastic/fabric) or paper bags.

  • Minnesota

Statute 325E.046 strictly dictates how plastic bags and packaging can be labeled. It is illegal to sell a plastic bag (or food packaging) in Minnesota if it is labeled “biodegradable,” “degradable,” “decompostable,” or implied to break down in nature. The state views these terms as misleading because there is no scientific standard for them. To legally label a bag as “compostable,” it must be third-party certified and meet ASTM D6400 standards.

Since 2010, residents have been required to use compostable bags to collect the yard waste and organic waste. It is illegal to put yard waste into standard black or white plastic trash bags for curbside collection. And waste haulers will generally refuse to pick up yard waste if it is in a non-compliant plastic bag.

Canada: National Framework & Provincial Action

Federal Regulations

The Single-Use Plastics Prohibition Regulations (SUPPR) are the primary federal rules.

The manufacture, import, and sale of single-use plastic check-out bags are prohibited. The federal government classifies “compostable” and “biodegradable” plastics as single-use plastics. Therefore, compostable checkout bags are included in the ban. You cannot legally sell or provide them at a checkout counter, even if they are certified compostable.

Fortunately, the ban does not apply to:

  • Produce bags used for loose fruit and vegetables.
  • Meat and fish bags to prevent leakage.
  • Bulk food bags for nuts, candy, flour and so on.
  • Garbage bags and bin liners.

Provincial & Municipal Variations

While the federal government bans checkout bags, provinces and cities decide what goes into the “Green Bin” (organic waste) and can have stricter local bylaws.

  • British Columbia

BC has a Single-Use and Plastic Waste Prevention Regulation. As of July 2024, it bans “hard-to-recycle” plastics. Many composting facilities in BC cannot process bioplastics (they don’t get hot enough for long enough). So BC discourages the use of compostable plastics for general packaging because they are often screened out and sent to the landfill. Compostable bin liners and produce bags are generally allowed to be sold, but check your local municipal guidelines before putting them in a green bin.

  • Quebec

Has a strict bylaw banning single-use plastic bags in retail. Montreal requires that any bag used for kitchen organic waste collection must be certified compostable by the BNQ (Bureau de normalisation du Québec). They do not accept oxo-degradable or standard plastic bags in the compost bin.

  • Ontario

Ottawa: Ottawa allows standard plastic bags in green bins. Their facility uses a mechanical ripper to open bags and then sends the plastic to the landfill.

Toronto: Generally accepts certified compostable liners in green bins, but rules are tightening as the province moves toward a standardized “Blue Box” and organic collection system.

compostable industrial garbage bags

Mexico: Emerging Regulations

Regulations and rules for biodegradable and compostable plastic bags in Mexico are a patchwork system that varies significantly by state and city.

Mexico City

Mexico City has the most comprehensive ban. All single-use plastic bags used to carry goods from a store (checkout bags). This also bans straws, cutlery, cups, lids, ballons, and styrofoam. Compostable plastics are often exempt, but they must be certified to break down in an industrial composting facility, not just “degrade” into microplastics.

If you want to sell or provide compostable plastic bags, they must be clearly labeled “Compostable” and usually require the green color coding. They generally must meet the Mexican Standard NMX-E-273-NYCE-2019 or international equivalents like ASTM D6400.

Key State Regulations

Outside the capital, rules are often less standardized.

State/CityStatusThe Rule
Nuevo León (Monterrey)RestrictedSingle-use bags are banned in supermarkets and convenience stores. Exception: Bags are often allowed if they contain 50% recycled material or are biodegradable. Recent 2025 proposals aim to tighten this, but “biodegradable” is generally still accepted.
QuerétaroStrict BanOne of the first states to ban single-use retail bags. Fines are levied on businesses, and license revocation is a risk for repeat offenders.
Jalisco (Guadalajara)Phased BanSingle-use plastic bags and straws are banned. The focus is on reducing usage, but enforcement has historically been less aggressive than in CDMX.
OaxacaLegal LimboOaxaca passed a very strict “Anti-Plastics Law” (banning even PET bottles).

Technical Standards & Certifications

If you are manufacturing or importing bags for the Mexican market, you must look for these standards:

  • NMX-E-273-NYCE-2019: The main voluntary standard for compostable plastics. This is what authorities in CDMX look for. It aligns closely with international standards like ISO 17088.
  • NMX-E-267: A standard often cited in other states for biodegradable plastics (focuses on aerobic biodegradation).
  • PROFECO (Consumer Protection): The federal consumer agency actively tests “garbage bags” and other plastics. Bags labeled “biodegradable” that do not actually break down can be pulled from the market for misleading advertising (greenwashing).

Home Compostable: The New Frontier

Most compostable plastics require high heat (industrial facility) and will not break down in a backyard pile. However, certified home compostable items can composted at home.

  • TÜV Austria (OK Compost HOME): The European certification is widely used in North America as a proxy due to the lack of a local standard.
  • BPI Home Compostable Certification: The new North American home compostable certification will provide a local standard.

Practices to Follow the Laws

  • Partner with a reliable supplier to get third-party certified compostable bags (ASTM D6400, ASTM D6868, OK Compost HOME).
  • Never use “Biodegradable” on plastic packaging in the US (especially CA/MA). Use “Compostable” and only if certified.
  • Know your local infrastructure. A certified compostable product is only beneficial if there’s a compatible collection and processing system.

Conclusion

The regulatory framework for biodegradable and compostable plastics in North America is defined by its regional fragmentation, reliance on third-party certifications, and the critical infrastructure gap. While “biodegradable” claims are largely prohibited as misleading, certified “compostable” plastics offer a compliant pathway, provided they are part of a managed system.

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