Attorney General Mike Hillevs is leading a coalition of 17 state attorneys general and the National Association of Wholesaler-Distributors in a lawsuit challenging California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act. The legal action aims to prevent economic impacts and cost increases that may be passed on to consumers for basic necessities.
Coalition of states files lawsuit
Joining Nebraska in the lawsuit are the Attorneys General of Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah, and West Virginia.
Arguments against packaging requirements
The lawsuit argues that California’s Plastics Act imposes extensive requirements on manufacturers, distributors, and companies using plastic containers or other packaging materials including aluminum, cardboard, paper, glass, and wood. According to the legal challenge, the act conditions access to California markets on changes to packaging design, production, and waste disposal.
Concerns over federalism and overreach
Eric Hoplin, President and CEO of the National Association of Wholesaler-Distributors, stated that California is not entitled to pronounce nationwide policies. He noted that because the act extends regulatory reach beyond state borders and includes conduct unconnected to California, it violates principles of federalism, due process, and the horizontal separation of powers.
Impact on consumer costs
Attorney General Mike Hilgers stated that if California goes unchecked, consumers will be forced to pay more for basic necessities and that Nebraska is fighting against this overreach.
Issues with private regulatory power
The lawsuit also highlights concerns regarding the delegation of regulatory power to the Circular Action Alliance, described as an unelected and unaccountable private organization. The group is empowered to collect up to $500 million annually from businesses seeking access to California's market, which has raised concerns regarding transparency.
Seeking constitutional declaratory judgment
The legal action seeks a declaratory judgment that the Act violates both the California Constitution and the United States Constitution.
