Enforcement of Oregon’s Plastic Pollution and Recycling Modernization Act (RMA) now hangs in the balance after a preliminary injunction was filed challenging the law, arguing that implementation and enforcement costs could create undue hardship for affected businesses.
The National Association of Wholesaler-Distributors (NAW), which represents the $8.2 trillion wholesale distribution industry, submitted the motion with the US District Court for the District of Oregon on Nov. 24. The organization has been in ongoing litigation with the state, first suing the Oregon Department of Environmental Quality (DEQ) in July, shortly after the act went into effect.
Eric Hoplin, NAW president and CEO, said that although the association backs circular-economy initiatives, Oregon’s extended producer responsibility (EPR) law, as enacted, “is unconstitutional, creates new mandates, inhibits interstate commerce and fails at its primary goal of encouraging circularity.”
He further commented that the current law “shifts the burden to the parts of the supply chain that have little to no control over decisions to design, reduce, reuse or recycle a product,” rather than promoting sustainable economic growth.
The requested injunction would halt enforcement of all compliance mandates, from data reporting to financial assessments, while the legal challenge proceeds through the courts. The NAW alleges that its membership could “face imminent and irreparable harm, including unrecoverable compliance costs, competitive distortions, and the threat of substantial civil penalties.”
The lawsuit names the Circular Action Alliance (CAA), a producer responsibility organization playing an increasingly central role in the EPR implementation across the US.
The NAW argues the state’s EPR framework violates constitutional protections by burdening interstate commerce and delegating “sweeping regulatory authority to a private, third-party organization dominated by large corporate interests.”
“The law requires distributors to sign a mandatory, non-negotiable contract with that organization and pay retrospective fee assessments calculated under a confidential methodology not subject to meaningful state oversight,” the Washington, DC-based organization said.
The NAW alleges that fees charged on initial invoices received by distributors in July 2025 were “significantly higher than publicly projected, often exceeding product margins, especially for small and mid-sized distributors.”
Given the complexity of interstate commerce, the obligations are unclear and could cost businesses up to $25,000 per day for noncompliance with the program’s requirements, the NAW said. Furthermore, the DEQ was not required to approve upcoming assessments for January 2026, and only “the private entity’s controlling companies have seen the fee methodology.”
“Rather than improve recycling outcomes, Oregon’s program operates as a closed regulatory system run by private interests, with binding financial consequences for businesses that have no control over packaging design or disposal,” said Brian Wild, NAW’s chief government relations officer.
“Our members’ July invoices show a system that is unpredictable, opaque, and economically unsustainable. With January assessments approaching and no transparency into how fees are set, businesses are facing uncertainty, instability, and costs they cannot absorb,” he added.
CAA disputed the characterization of Oregon’s EPR program in a written response to Resource Recycling, stating:
Circular Action Alliance (CAA) is a nonprofit, producer-led organization appointment by the state of Oregon to implement the Recycling Modernization Act (RMA). CAA is committed to helping producers comply with EPR laws, delivering harmonized best-in-class compliance services and to working with governments, businesses and communities to reduce waste and recycle more.
We are aware of the recent motion seeking to temporarily halt enforcement of Oregon’s RMA filed by the National Association of Wholesaler-Distributors in its lawsuit against the Oregon Department of Environmental Quality and the Oregon Environmental Quality Commission.
CAA is proud to be leading the implementation of Oregon’s RMA and other Extended Producer Responsibility (EPR) programs that support a more circular economy. We are committed to operating transparently, in full compliance with state laws, and in alignment with best practices followed by Producer Responsibility Organizations (PROs) across the country and internationally.
