Seventeen States Challenge California’s Environmental Law

On Monday, a group of seventeen Republican attorneys general initiated a federal lawsuit opposing California’s environmental regulations, arguing that they have implications beyond state lines.

This lawsuit is spearheaded by Nebraska Attorney General Mike Hilgers and takes aim at California’s Plastic Pollution Prevention and Packaging Manufacturer Liability Act. This law, signed into effect in 2022 by Governor Gavin Newsom, imposes comprehensive demands on companies, manufacturers, and distributors that package or ship products into California.

The lawsuit contends that “this action violates national sovereignty,” asserting that California lacks the authority to dictate national policies or impose its regulations on other states.

According to a press release from Hilgers’ office, the law could compel “companies across the country to comply with California’s artificial environmental priorities,” thereby impacting nearly all businesses utilizing plastic packaging. The press note added that “the Plastics Act’s onerous requirements are expected to drive up the prices of everyday items, disproportionately impacting low-income and vulnerable populations.”

Joining Alabama in this lawsuit are states such as Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah, and West Virginia; notably, each of these states has a Republican attorney general.

In response to inquiries, CalRecycle stated that it “does not comment on pending or potential litigation” and continues to focus on enforcing the law.

Hilgers expressed concern that California’s actions could, once again, impose negative effects on consumers nationwide, stating, “If California goes unchecked, consumers will be forced to pay more for basic necessities.” Eric Hoplin, president of the National Association of Wholesale Distributors (NAW), emphasized that “no state should restrict interstate commerce,” highlighting the implications of such policies.

Hoplin further noted that the law infringes upon federal principles, asserting that it extends California’s regulatory reach beyond its borders. The law also requires businesses to register with and pay a fee to the Circular Action Alliance (CAA), a nonprofit organization focused on implementing extended producer responsibility laws for packaging materials.

According to the press release, the CAA is authorized to collect fees up to $500 million from companies wanting to enter the California market.