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A 17-state coalition led by Nebraska Attorney General Mike Hilgers and joined by the National Association of Wholesaler-Distributors (NAW)<\/a> filed a federal lawsuit challenging California’s \u201cPlastic Pollution Prevention and Packaging Producer Responsibility Act,\u201d known as SB 54. NAW is joining as the only business plaintiff in the case.<\/p>\n Along with Nebraska, 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 joined the action. The coalition is asking the court to block enforcement of California’s extended producer responsibility<\/a> (EPR) law while the case proceeds.\u00a0<\/p>\n \u201cCalifornia’s vast and complex law requires businesses to register with and pay fees to the Circular Action Alliance (CAA), a private DC-based entity appointed by the state and authorized to both set and collect fees on everything from glass and aluminum to paper, cardboard, and plastic packaging,\u201d NAW said in a statement Monday. <\/p>\n NAW added: \u201cThe founding board of CAA is composed of many of the world\u2019s largest consumer goods companies. California has delegated to CAA the power to create its own fee methodology that is declared confidential<\/em>. Businesses subject to the Act\u2019s fees cannot challenge the assessments in court. Their only recourse is binding arbitration run by CAA itself.\u201d<\/p>\n Eric Hoplin, President and CEO of NAW<\/strong>, said: “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. 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.\u201d\u00a0<\/p>\n The coalition argues California’s law violates four constitutional principles by, among other things:<\/p>\n \u201cCalifornia cannot reach across state lines and force businesses in Nebraska, or any other state, to adopt California\u2019s preferred environmental policies,\u201d said Nebraska Attorney General Mike Hilgers<\/strong>. \u201cCalifornia does not get to set national policy. Nebraska is leading this coalition because the constitutional problem here belongs to every state.\u201d<\/p>\n\n