The National Association of Wholesaler-Distributors has joined a 17-state coalition in a federal lawsuit challenging California’s extended producer responsibility packaging law.

NAW announced June 22 that it is the only business plaintiff in the case (State of Nebraska et al. v. Heller et al., Case No. 2:26-at-01047, E.D. Cal.), which is being led by Nebraska Attorney General Mike Hilgers. The lawsuit targets California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act, known as SB 54, and seeks to block the law from taking effect while the case proceeds.

The coalition includes the attorneys general of Nebraska, Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah and West Virginia.

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California’s SB 54 establishes an EPR program for packaging and single-use plastic food service ware. Under the law, businesses must register with and pay fees to Circular Action Alliance, a private Washington, D.C.-based producer responsibility organization appointed by the state to administer the program.

NAW said the law applies to packaging materials beyond plastic, including glass, aluminum, paper and cardboard. The association said California has delegated authority to CAA to create a confidential fee methodology and collect fees from companies selling into the state.

“No state should limit interstate commerce, let alone delegate the power to set and collect taxes to a third party outside of the scope of public scrutiny,” NAW President and CEO Eric Hoplin said in the association’s announcement. “A federal court blocked enforcement of a similar law in Oregon earlier this year, and we are asking the court to do the same in California.”

The lawsuit argues that California’s law violates constitutional principles by discriminating against businesses selling into the state, imposing content-based speech restrictions, compelling NAW members to join CAA and delegating government authority to a private entity.

“California cannot reach across state lines and force businesses in Nebraska, or any other state, to adopt California’s preferred environmental policies,” Hilgers said. “California does not get to set national policy. Nebraska is leading this coalition because the constitutional problem here belongs to every state.”

The California challenge follows a February ruling in Oregon, where a U.S. district court granted NAW members preliminary injunctive relief against enforcement of that state’s Plastic Pollution and Recycling Modernization Act. NAW said that ruling marked the first time a court blocked a state EPR law.

California’s SB 54 regulations took effect May 1. The merits trial in the Oregon case is scheduled for July 13-17 in Portland, OR.