Seventeen state attorneys general are suing California over its Plastics Act, claiming the law unconstitutionally regulates packaging materials nationwide and increases consumer costs.
Nebraska Attorney General Mike Hilgers is spearheading a 17-state legal challenge against California's sweeping plastics packaging law, arguing the legislation unconstitutionally forces nationwide compliance with the state's environmental standards while driving up costs for consumers across America.
The states, each of which has a Republican attorney general, have filed the lawsuit in an effort to strike California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act. The AGs describe the act as “regulatory overreach” that extends far beyond the Golden State's borders.
The complaint, filed in the US District Court for the Eastern District of California, lists CalRecycle Director Zoe Heller and Circular Action Alliance (CAA) as defendants.
The act imposes requirements on manufacturers, distributors, and companies using plastic packaging materials. Implemented in 2022, the legislation mandates that producers reduce single-use plastic packaging by 25 percent and requires all single-use packaging and plastic food serviceware to be either recyclable or compostable by 2032.
Broad regulatory scope raises concerns
The legislation also encompasses aluminum, cardboard, paper, glass, and wood packaging. It requires companies doing business in the state to comply with its requirements to access the state's market
"Once again, California is trying to enact a policy that negatively impacts the rest of the country," stated Attorney General Mike Hilgers. "If California goes unchecked, consumers will be forced to pay more for basic necessities. Nebraska is continuing to fight for consumers against California's overreach."
The act conditions market access on radical changes to packaging design, production, and waste disposal processes — forcing businesses across state lines to adopt California's environmental preferences or lose access to the nation's most populous state.
Economic impact and constitutional questions
The coalition argues the act's onerous requirements will significantly increase prices on everyday goods, disproportionately affecting low-income and vulnerable populations. By mandating compliance from out-of-state businesses, California effectively sets national packaging policy without congressional authorization.
"California is not entitled to pronounce nationwide policies," said Eric Hoplin, president and CEO of the National Association of Wholesaler-Distributors (NAW). "Because the Act extends California's regulatory reach far beyond its borders and brings within its sweep conduct wholly unconnected to California, the Act violates principles of federalism, the horizontal separation of powers, and due process."
Additional concerns center on the act's delegation of regulatory and enforcement powers to the CAA, an unelected private organization. With minimal California oversight, the Alliance can collect up to $500 million annually from businesses, raising transparency and accountability questions.
The lawsuit seeks declaratory judgment that the act violates both the US Constitution and California Constitution, with injunctive relief stopping enforcement.
Heidi Sanborn, executive director and CEO of the National Stewardship Action Council, which advocates for the producer responsibility laws and a more circular economy, told the Los Angeles Times recently that both SB 54 and a similar law passed in Oregon are public policies that were “passed by legislatures and implemented with government oversight.”
This week’s filing comes almost a year after NAW initially filed a lawsuit challenging Oregon's newly implemented EPR law in July 2025. A federal judge blocked enforcement of that law, and the trial begins on July 13.
Mirroring NAW's challenge in Oregon, the plaintiffs in the California case argue that SB 54 breaches the Commerce Clause. The California lawsuit additionally cites First Amendment violations, along with other concerns.
Joining Hilgers are attorneys general from Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah, and West Virginia.