Dual lawsuits challenge California's SB 54 plastics EPR law
California's SB 54 extended producer responsibility law faces two competing lawsuits: 17 US states and a wholesalers' association filed suit on 22 June 2026 arguing the law is unconstitutional, while three environmental groups sued CalRecycle on 2 June 2026 claiming the finalised implementing regulations weaken the law. The litigation leaves consumer product companies operating under SB 54's data reporting, eco-modulated fee and recycling requirements while the outcome remains uncertain. A comparable Oregon EPR law was upheld by a federal court on 27 August 2026, a precedent both sides are watching.
Why this mattersThe outcome will determine whether producers face SB 54's reporting, fee and recycling mandates or a weakened or suspended regime, shaping compliance costs across the US packaging supply chain.
- SB 54, California's Plastic Pollution Prevention and Packaging Producer Responsibility Act, was signed into law in 2022.
- CalRecycle finalised revised implementing regulations in May 2026 after a restart ordered by Governor Newsom in March 2025.
- On 2 June 2026, NRDC, Californians Against Waste Foundation and Oceana Inc. sued CalRecycle claiming the 2026 regulations create loopholes weakening SB 54.
- On 22 June 2026, 17 US states led by Nebraska and the National Association of Wholesaler-Distributors sued CalRecycle and the Circular Action Alliance, calling SB 54 unconstitutional.
- CalRecycle estimates packaging accounts for over 50% by volume of California landfill waste.
- On 27 August 2026, an Oregon federal court rejected a similar NAW challenge to Oregon's plastic packaging EPR law.