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2w ago

Seventeen States and Trade Group Sue to Block California’s SB 54 Packaging Law

The complaint says California’s law reaches beyond its borders by shifting rulemaking and fee power to a private producer group, a challenge that could halt enforcement and affect supply chains.

SAN FRANCISCO, CA - MARCH 15: Hundreds of recycled plastic water bottles are piled up inside the Recology recycling facility on March 15, 2011 in San Francisco, California. The multi-million dollar bottled water industry continues to prosper despite outrage from environmentalists who point out that at least half of the empty bottles end up in landfills instead of being recycled. Environmental groups are encouraging people to use reusable containers and get their water from the tap which is safe to drink in over 90 percent of the United States. (Photo by Justin Sullivan/Getty Images)
FILE - A plastic bag sits along a roadside in Sacramento, Calif., Oct. 25, 2013. (AP Photo/Rich Pedroncelli, File)
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Plastic bottles of shampoo are displayed at Compton's Market in Sacramento, Calif., Friday, June 17, 2022. A California proposal would reduce the amount of plastics used for single-use products like eating utensils, food containers and shampoo bottles. State Sen. Ben Allen, D-Santa Monica, made the bill public on Thursday, June 16, 2022. (AP Photo/Rich Pedroncelli)

Overview

  • The multistate suit and a National Association of Wholesaler‑Distributors complaint were filed in federal court on June 22 and ask a judge to declare SB 54 unconstitutional and stop CalRecycle and the Circular Action Alliance from enforcing it.
  • Plaintiffs claim the law violates the Commerce Clause and other constitutional protections by imposing nationwide design and packaging changes and by assigning core regulatory and fee‑setting powers to an unelected private Producer Responsibility Organization.
  • The complaint seeks declaratory and injunctive relief naming CalRecycle Director Zoe Heller and the CAA and argues the statute’s fee rules and reporting requirements will force costly redesigns and higher prices for producers and retailers.
  • The lawsuits do not automatically pause SB 54, so producer registration, reporting, and CAA implementation continue for now, although a limited preliminary injunction in related Oregon litigation shows courts may grant partial relief.
  • SB 54 requires a 25% source reduction of single‑use plastic and recyclability or compostability of covered packaging by 2032 and imposes a large mitigation surcharge in 2027, so litigation outcome could delay or reshape how states run extended producer responsibility programs and affect consumer costs and supply chains.