Key Takeaways
- California’s extended producer responsibility (EPR) law, Senate Bill (SB) 54, is facing a broad constitutional challenge brought by 17 states and the National Association of Wholesaler-Distributors (NAW).
- The lawsuit targets core features of California’s EPR framework, including source-reduction mandates, recyclability and recycling-rate targets, producer fees, the $500 million annual environmental mitigation surcharge, and mandatory participation in the Circular Action Alliance (CAA).
- The lawsuit does not change current compliance obligations. Unless and until a court issues injunctive relief, California can enforce SB 54 deadlines, reporting requirements, and producer responsibility organization (PRO) participation obligations.
- Companies subject to California’s EPR program should continue building systems to report covered material, evaluate packaging reduction opportunities, and document assumptions underlying their producer-status determinations while the lawsuit proceeds.