The Nationwide Affiliation of Wholesaler-Distributors has joined a 17-state coalition in a federal lawsuit difficult California’s prolonged producer accountability packaging regulation.
NAW introduced June 22 that it’s the solely enterprise plaintiff within the case (State of Nebraska et al. v. Heller et al., Case No. 2:26-at-01047, E.D. Cal.), which is being led by Nebraska Lawyer Basic Mike Hilgers. The lawsuit targets California’s Plastic Air pollution Prevention and Packaging Producer Accountability Act, referred to as SB 54, and seeks to dam the regulation from taking impact whereas the case proceeds.
The coalition consists of the attorneys basic of Nebraska, Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah and West Virginia.
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California’s SB 54 establishes an EPR program for packaging and single-use plastic meals service ware. Below the regulation, companies should register with and pay charges to Round Motion Alliance, a non-public Washington, D.C.-based producer accountability group appointed by the state to manage this system.
NAW stated the regulation applies to packaging supplies past plastic, together with glass, aluminum, paper and cardboard. The affiliation stated California has delegated authority to CAA to create a confidential charge methodology and acquire charges from corporations promoting into the state.
“No state ought to restrict interstate commerce, not to mention delegate the facility to set and acquire taxes to a 3rd get together exterior of the scope of public scrutiny,” NAW President and CEO Eric Hoplin stated within the affiliation’s announcement. “A federal court docket blocked enforcement of the same regulation in Oregon earlier this 12 months, and we’re asking the court docket to do the identical in California.”
The lawsuit argues that California’s regulation violates constitutional rules by discriminating towards companies promoting into the state, imposing content-based speech restrictions, compelling NAW members to hitch CAA and delegating authorities authority to a non-public entity.
“California can’t attain throughout state traces and power companies in Nebraska, or some other state, to undertake California’s most well-liked environmental insurance policies,” Hilgers stated. “California doesn’t get to set nationwide coverage. Nebraska is main this coalition as a result of the constitutional drawback right here belongs to each state.”
The California problem follows a February ruling in Oregon, the place a U.S. district court docket granted NAW members preliminary injunctive reduction towards enforcement of that state’s Plastic Air pollution and Recycling Modernization Act. NAW stated that ruling marked the primary time a court docket blocked a state EPR regulation.
California’s SB 54 laws took impact Might 1. The deserves trial within the Oregon case is scheduled for July 13-17 in Portland, OR.
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