Over the past year, business groups, manufacturers, and even environmental organizations and state attorneys general have filed multiple lawsuits against new state packaging extended producer responsibility (EPR) regulations. Experts point out that although no cases have been concluded yet, the outcomes of these lawsuits will profoundly affect how states consider or formulate EPR policies in the future.

Oregon: First EPR trial is about to begin

Nearly a year after filing a federal lawsuit, the National Association of Wholesaler-Distributors (NAW) successfully obtained a preliminary injunction earlier this year and is preparing to appear in court next week. This will be the first packaging EPR trial in the United States. The defendant is Leah Feldon, Director of the Oregon Department of Environmental Quality. A ruling is expected later this year.

Meanwhile, manufacturer Lollicup USA—a subsidiary of Karat Packaging focused on foodservice supplies—recently filed a class action lawsuit against Feldon as well. Similar to the NAW case, Lollicup alleges in its federal suit that Oregon's EPR implementation violates the dormant Commerce Clause and the Due Process Clause of the Fourteenth Amendment.

California: Two lawsuits in parallel, intense disputes

Nebraska Attorney General Mike Hilgers leads 17 state attorneys general in a federal lawsuit seeking to block enforcement of SB 54, alleging that the EPR and source reduction law violate the Commerce Clause and Due Process Clause. The defendants are CalRecycle Director Zoe Heller and producer responsibility organization Circular Action Alliance.

NAW joined the case as a business plaintiff. Karen Harned, NAW's Director of Litigation and Legal Policy, recently told Packaging Dive: "We just want to do something." She noted that California's impact is far greater than Oregon's, "and we are pleased to join forces with the states in this case." The case is currently under seal.

Prior to that, environmental groups Natural Resources Defense Council, Oceana, and California Against Waste Foundation also sued CalRecycle and its director. They challenge the final rules of SB 54, arguing that these rules do not align with the ambitious legislative intent reflected in the statutory text. According to the latest update in the court docket, on July 1, the American Chemistry Council and the California Farm Bureau Federation filed motions to intervene in the case.

Colorado: State-level lawsuit focuses on burden on small manufacturers

A state-level lawsuit filed by the Independent Lubricant Manufacturers Association (ILMA) challenges the implementation of Colorado's Producer Responsibility Program for Statewide Recycling Act. Although Circular Action Alliance is the primary producer responsibility organization in the state, the Colorado Department of Public Health and Environment also approved a separate plan by the Lubricant Packaging Management Association (LPMA), which aims to cover packaging for non-curbside-managed oil-based lubricants, greases, antifreeze, engine additives, and other fluids used in transportation and mechanical applications. LPMA was founded by five major oil companies. ILMA partially opposes the approval of this plan, noting that it imposes burdens on small manufacturers.

An ILMA spokesperson said the latest developments in the case are expected to be announced "in the coming weeks." Colorado is the second state, after Oregon, to begin implementing a packaging EPR law.