A coalition of 17 states, led by Nebraska Attorney General Mike Hilgers and joined by the National Association of Wholesaler-Distributors, filed a federal lawsuit this week challenging California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act, commonly known as SB 54. The lawsuit seeks to block enforcement of the law, arguing that California has exceeded its constitutional authority by imposing packaging-related mandates with nationwide economic and operational effects.

SB 54, enacted in 2022, creates an extended producer responsibility program for packaging and single-use plastic food service ware sold in California. The law shifts end-of-life management costs for covered materials to producers and requires participation in a Producer Responsibility Organization. CalRecycle’s final implementing regulations were approved and became effective May 1, 2026.

The lawsuit alleges that SB 54 violates the U.S. Constitution’s Commerce Clause, principles of federalism, and due process by effectively regulating conduct beyond California’s borders. Plaintiffs argue that because many companies use uniform packaging and distribution systems nationwide, California’s requirements may force businesses operating outside the state to alter packaging practices or absorb higher compliance costs.

While the lawsuit does not immediately eliminate SB 54 compliance obligations, it adds another layer of uncertainty to California’s rapidly evolving packaging regulatory framework. Businesses that sell, ship, or distribute packaged products into California should continue evaluating whether they qualify as “producers” or otherwise fall within SB 54’s scope, while monitoring the litigation for any stay, injunction, or change in enforcement timing.

Western Growers members are encouraged to refer to Western Growers’ SB 54 Resources and Updates page for additional compliance resources and ongoing updates.