17 State AGs Move to Suspend California's Entire EPR Law

3 min readSources: National Law Review

A coalition of 17 state attorneys general and NAW filed to suspend California's SB 54 EPR law.

Why it matters: This legal challenge affects manufacturers and distributors nationwide who must comply with California's complex recycling and source reduction rules.

  • The motion was filed on August 21, 2026, in the Eastern District of California.
  • It seeks to stop CalRecycle and the Circular Action Alliance from enforcing SB 54's provisions, including fee and reporting requirements.
  • The lawsuit claims SB 54's recyclability mandates are unconstitutionally vague, citing a prior injunction against SB 343.
  • A hearing is set for January 15, 2027, before Judge Dena Coggins.

On August 21, 2026, a coalition of 17 state attorneys general and the National Association of Wholesaler-Distributors (NAW) filed a motion seeking a preliminary injunction to block enforcement of California's Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54). This filing was submitted in the Eastern District of California and targets the entire scope of the law.

The coalition's motion requests the court restrain CalRecycle Director Zoe Heller and the Circular Action Alliance (CAA), the designated producer responsibility organization (PRO), from implementing or enforcing any aspect of SB 54. The injunction would suspend fee collection, registration, reporting, source-reduction mandates, and program plan implementation.

The lawsuit centers on constitutional challenges, primarily that SB 54's provisions are unconstitutionally vague. It references a July 14, 2026, federal preliminary injunction against California's SB 343 labeling law, which the court found lacked clarity in recyclability definitions and violated the First Amendment. The coalition argues similar vagueness applies to SB 54's recyclability requirements, as well as its recycling-rate targets, producer fees, and mandatory participation in the CAA.

Nebraska Attorney General Mike Hilgers, leading the coalition, criticized California's policy as negatively impacting the entire country. The NAW is the sole business plaintiff supporting the states in this challenge.

While this lawsuit challenges the law’s enforcement, current compliance obligations remain in force until the court issues an injunction. That means deadlines, reporting, and PRO participation continue to apply. The court will hear arguments on January 15, 2027, before Judge Dena Coggins.

SB 54 was enacted in 2022 to combat plastic waste by mandating producers to reduce single-use plastics, increase recycling, and participate in a producer responsibility organization. Compliance involves complex data submissions and payment of eco-modulated fees.

By the numbers:

  • 17 attorneys general and NAW — plaintiffs filing the motion on August 21, 2026
  • January 15, 2027 — scheduled hearing date before Judge Dena Coggins
  • 2022 — year SB 54 was enacted

Yes, but: The lawsuit does not alter existing SB 54 compliance requirements until the court rules or grants injunctive relief.

What's next: The preliminary injunction hearing on the suspension of SB 54 is scheduled for January 15, 2027.