FARGO, N.D. (Valley News Live) – North Dakota is one of 17 states suing to stop a California law that would require sweeping changes to how plastic packaging is made, sold, and recycled across the country.
The lawsuit, filed Monday in the U.S. District Court for the Eastern District of California, targets the state’s Plastic Pollution Prevention and Packaging Producer Responsibility Act, which was enacted in 2022. The states argue California is overstepping its authority by effectively forcing businesses nationwide to overhaul their products and supply chains just to access the California market.
Nebraska is leading the coalition, which also includes Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, Oklahoma, South Carolina, South Dakota, Texas, Utah, and West Virginia. The National Association of Wholesaler-Distributors, which represents roughly 35,000 companies operating nearly 150,000 locations across the country, also joined the suit.
What the Law Requires
California’s law sets aggressive mandates for businesses that sell, distribute, or import products in plastic packaging into the state.
Under the law, all plastic packaging must be reduced by 25% by weight by 2032. Recycling rates must hit 30% by 2028, 40% by 2030, and 65% by 2032. For context, the recycling rate for common plastic bottles currently sits at just 16%, according to data cited in the complaint.
The law also requires producers to join and fund the Circular Action Alliance, a private organization designated by California as the sole body responsible for implementing the law. That organization is required to collect a $500 million annual “environmental mitigation surcharge” from producers and pass it on to the state.
The Cost Concern
A central argument in the lawsuit is that the law will drive up prices on everyday goods, and that those costs won’t stay in California.
Because the fees cannot be listed as a separate line item, the states argue producers will simply fold the costs into higher prices across the board, hitting consumers in all 50 states. The complaint cites a study of Maine’s similar, but less stringent, packaging law that projected price increases of up to 5.57% on many common products.
The states say low-income consumers will feel the impact hardest, since many of the affected products are everyday necessities.
The Other Side: CAA Defends the Law
The Circular Action Alliance, named as a defendant in the lawsuit, has defended the law as a necessary step toward reducing plastic waste.
In a May 28 statement, CAA California Executive Director Emily Coven said the law “establishes a new framework to better align responsibility, funding, and performance as California looks to improve waste reduction and recycling outcomes statewide.”
Coven said the organization views the law as a shared responsibility model, one that works alongside existing local recycling systems rather than replacing them.
“Producers, governments, service providers and communities each have defined roles, with the goal of reducing waste, increasing recycling rates and minimizing environmental impacts over time,” Coven wrote.
The CAA said it submitted its program implementation plan on June 15 and that a public comment period runs through Aug. 14. The organization said it is committed to “transparency, collaboration and responsible stewardship” as it moves forward with implementation.
What They’re Asking the Court to Do
The states are seeking a declaratory judgment that the law is unconstitutional under both the U.S. and California constitutions. They are also asking the court to issue a permanent injunction blocking CalRecycle Director Zoe Heller and the Circular Action Alliance from implementing or enforcing the law.
Valley News Live requested comment from the North Dakota Attorney General’s Office, but had not received a response as of publication.
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