A 17-state federal lawsuit targeting California's SB 54 packaging fee program now puts Indiana manufacturers with California sales exposure directly on the clock — CAA registration obligations are live today, and fee assessments could begin as early as January 2027. Today's brief also covers a third DOE emergency coal order accumulating at $195,000 per day in costs that FERC has already authorized utilities to pass through to ratepayers, an IURC-approved data center power deal placing Amazon and Google in direct competition with manufacturers for MISO grid capacity, a trade petition out of Jeffersonville that could squeeze Indiana solar supply chains, and a Honda headline that looks like good news until you read what was cancelled.

California SB 54: What Indiana Manufacturers Need to Know Before July 13

On June 22nd, a 17-state coalition — including Indiana AG Todd Rokita — filed a federal lawsuit in the Eastern District of California targeting SB 54, California's packaging producer responsibility law. The lead plaintiff is the National Association of Wholesaler-Distributors, and the core legal challenge targets the Circular Action Alliance fee dispute structure, which routes disagreements to binding arbitration administered by CAA itself — no court access.

What most operators are missing: this is not a plastics-only issue. The CAA fee regime covers glass, aluminum, paper, and cardboard. If you ship any of those materials into California — directly or through a brand owner — you have potential fee exposure. The program budget could reach $1.87 billion in 2027 alone and $17.2 billion over five years.

A federal judge in Oregon already granted NAW a preliminary injunction in February, flagging the arbitration structure as raising serious constitutional questions. That injunction only protects NAW members. Non-NAW Indiana manufacturers are outside that protection, with CAA registration obligations live now and fee assessments scheduled to begin as early as January 2027.

The five-day merits trial in the parallel Oregon case starts July 13th. A plaintiff win there is the single most important near-term indicator for whether CAA fees arrive in January 2027 or get blocked first. If you ship packaging into California and you're not an NAW member, confirm your registration status before that trial concludes.

Third DOE Coal Order: $195,000 Per Day, Costs Heading to Ratepayers

On June 18th, the Department of Energy issued its third consecutive 90-day renewal under Section 202(c), keeping NIPSCO's R.M. Schahfer Generating Station in Jasper County and CenterPoint's F.B. Culley plant in Warrick County online through September 19th. The Sierra Club estimates the combined cost at $174,000 per day for Schahfer and $21,000 per day for Culley. FERC has already authorized MISO tariff changes letting both utilities recover those costs from ratepayers.

The detail that should concern industrial customers: NIPSCO's Schahfer Units 17 and 18 are currently offline for turbine and boiler work. NIPSCO's own communications put the completion target in Q3. Total compliance costs are still being evaluated.

Mark September 19th. DOE will face a fourth renewal decision entering fall shoulder season, and MISO's own capacity projections show a deficit growing from 1.4 gigawatts in 2027 to 8.2 gigawatts by 2030. The order designed to prevent a near-term reliability crisis may be delaying the capacity additions needed to prevent a longer-term one.

Amazon's Indiana Data Center: Model the Grid Capacity Pressure Now

The IURC has approved NiSource's GenCo affiliate to provide dedicated electric service to Amazon's Indiana data centers — a 2,800-megawatt commitment through 2032, with NiSource raising its five-year capital plan 45 percent to $28 billion. A second hyperscaler deal with Alphabet begins service this summer.

NiSource's argument is that the dedicated GenCo structure keeps hyperscaler load isolated from the general grid. The Citizens Action Coalition and the Indiana Office of Utility Consumer Counselor are contesting that framing in appeals they've already filed. Any appellate delay directly threatens the January 2027 initial energization target that Indiana equipment and engineering suppliers are already pricing into contracts.

Regardless of how the appeal resolves, the grid capacity pressure for manufacturers is real: MISO projects Indiana, Illinois, and Michigan growing at 2.7 percent annually, with data center peak demand in MISO climbing from 1.2 gigawatts today to 20.5 gigawatts by 2030. Transmission constraints, shared interconnection queue position, and supply-chain competition for the same turbines and transformers create headroom pressure your next capacity planning cycle needs to account for.

Two More Developments Worth Tracking

Canadian Solar / Hanwha Jeffersonville: Canadian Solar's Jeffersonville cell plant has joined an AD/CVD petition against Hanwha Qcells. The Department of Commerce has 30 days to decide whether to initiate a Korean solar cell investigation. The Southeast Asia case produced preliminary duties ranging from 103 to 234 percent — Korean margins could land materially different, but any Indiana project developer sourcing Korean cells needs a contingency plan before the initiation notice drops.

Honda American-Made Index: Honda placed five vehicles in the top ten of the 2026 American-Made Index — the strongest showing in the index's 21-year history. But Honda cited softening EV demand, policy uncertainty, and trade conditions when it cancelled three Ohio-built EV models in March. The index performance and the EV cancellations are two sides of the same strategic shift toward gas-vehicle production extension. If your contracts are tied to Honda's electrification pipeline, reforecast against that cycle now.

Questions for Your Morning Huddle

Q: Does California SB 54 apply to Indiana manufacturers that ship packaging materials into California?
A: Yes — the Circular Action Alliance fee regime covers glass, aluminum, paper, cardboard, and plastic shipped into California, not just plastics. Indiana manufacturers who are not members of the National Association of Wholesaler-Distributors are outside the current Oregon preliminary injunction's protection, with CAA registration obligations live now and fee assessments scheduled to begin as early as January 2027.

Q: What is the DOE 202(c) coal order costing Indiana ratepayers, and who pays for it?
A: The Sierra Club estimates the combined cost at approximately $195,000 per day for NIPSCO's Schahfer station and CenterPoint's Culley plant. FERC has already authorized both utilities to recover those costs through MISO tariff changes — meaning Indiana ratepayers, including industrial customers, bear the full cost.

Q: How does Amazon's Indiana data center deal affect manufacturers' access to MISO grid capacity?
A: NiSource argues the dedicated GenCo structure isolates hyperscaler load from the general system, but both the Citizens Action Coalition and the Indiana Office of Utility Consumer Counselor are appealing that approval. Regardless of outcome, manufacturers should model transmission constraints, shared interconnection queue exposure, and supply-chain competition for turbines and transformers — MISO projects data center peak demand in the region growing from 1.2 gigawatts today to 20.5 gigawatts by 2030.

These five stories aren't isolated — they're compressing simultaneously, and every one carries a deadline. Know your CAA registration status before July 13th. Model your MISO capacity exposure before your next planning cycle. Reforecast any Honda electrification contracts now. If you want a framework for evaluating how regulatory and grid developments affect your energy costs and supply chain risk, start with the TEG Energy Decision Blueprint.

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