On August 27, 2026, the U.S. District Court for the District of Oregon upheld Oregon’s Plastic Pollution and Recycling Modernization Act (RMA), rejecting constitutional challenges brought by the National Association of Wholesaler-Distributors (NAW). The ruling is one of the first federal court decisions addressing constitutional challenges to a state packaging extended producer responsibility (EPR) program and provides insight into how courts may evaluate similar issues common to EPR laws, including producer responsibility organizations, fee assessments, and state oversight.
Following a five-day bench trial, the court concluded that Oregon’s EPR program does not violate either the Dormant Commerce Clause or the Due Process Clause. The ruling allows Oregon’s producer responsibility framework to move forward, requiring covered producers of packaging, paper products, and food serviceware to participate in and fund the state’s recycling program through a Producer Responsibility Organization (PRO).
The decision underscores the importance of continued compliance, as courts may be less likely to block these laws on constitutional grounds alone.
Key Holdings
- Interstate Commerce Challenges Face a High Bar
NAW argued that Oregon’s law improperly burdens interstate commerce by imposing obligations on companies operating in national supply chains and effectively projecting Oregon’s policy choices beyond state borders. The court rejected those arguments, emphasizing that states retain broad authority to address environmental and waste-management concerns, even when regulations have effects outside the state.
The decision suggests that courts may be reluctant to invalidate EPR laws simply because compliance obligations affect companies doing business across multiple states.
- Compliance Costs Alone Are Not Enough
The court acknowledged evidence that the RMA imposes significant compliance burdens, including determining producer status, gathering packaging data, and paying program fees. However, the court ultimately held that increased compliance costs and administrative burdens do not, standing alone, establish a constitutional violation.
- Court Upholds Oregon’s PRO Structure
A NAW argued that Oregon improperly delegated regulatory authority to Circular Action Alliance (CAA), the state’s only approved PRO. The court rejected that argument, concluding the RMA provides sufficient standards for PRO operations and that Oregon DEQ retains ultimate authority over program approval, oversight, and enforcement. The ruling suggests that courts may be comfortable with PRO-administered EPR programs where the state maintains meaningful supervisory authority.
The court also rejected arguments that producers are effectively forced to participate in CAA, noting that the statute contemplates alternatives, including the formation of another PRO and the availability of certain exemptions.
- Due Process Claims Failed
The court also rejected claims that producers lacked meaningful opportunities to challenge fee assessments. The decision pointed to DEQ’s administrative review procedures, hearing rights, and appeal mechanisms as providing adequate procedural protections.
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As for next steps, NAW has 30 days to appeal the decision to the U.S. Court of Appeals for the Ninth Circuit. Meanwhile, Oregon DEQ continues to develop implementing regulations under the RMA. Draft regulations are reportedly under review by the Oregon Department of Justice, and a public comment period is currently expected to begin on September 14, 2026. Producers should monitor that process closely, particularly as DEQ considers potential exemptions and other refinements to the program.
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OFW Law continues to follow developments in this litigation as well as similar lawsuits, and EPR implementation efforts across the nation. For questions regarding packaging EPR compliance, regulatory developments, or litigation trends, please contact Kyla Kaplan ([email protected]) and Nicole Bayne ([email protected]) and consider subscribing to our client updates for future insights on EPR and product stewardship issues.
