Oregon Federal Court Enjoins EPR Law Enforcement

On February 6, 2026, Sidley prevailed on behalf of the National Association of Wholesaler-Distributors (NAW) in securing a preliminary injunction against Oregon’s first-of-its-kind plastic packaging extended producer responsibility (EPR) law.  Judge Michael H. Simon of the U.S. District Court for the District of Oregon granted a preliminary injunction prohibiting the Oregon Department of Environmental Quality (DEQ) from enforcing the Plastic Pollution and Recycling Modernization Act (often referred to as Oregon’s “Recycling Modernization Act” or “RMA”) against NAW and its members, while the case proceeds to trial.  The injunction represents a significant milestone, with the federal court acknowledging that producers would likely be injured by the Act’s violations of due process and impacts caused on interstate commerce.

Background

The RMA requires, in general, obligated “producers” to pay fees for virtually all types of packaging materials sold in or distributed into Oregon.  The requirements, which took effect on July 1, 2025, set fees for manufacturers, brand owners, and importers, including downstream entities in supply chains such as distributors (typically, retailers are excluded unless they are also the brand owner).  The fees include a base fee component and an “eco-modulated” component, which must be paid to Circular Action Alliance as the sole Producer Responsibility Organization (PRO) for Oregon.  However, the RMA does not prescribe a uniform methodology for calculating fees, giving the PRO significant discretion in implementation.  Producers have reported impacts on interstate supply networks and exorbitant charges, among other difficulties in complying with the law.  Similar laws are set to take effect in other states.

NAW filed suit in Oregon federal district court challenging the RMA on July 30, 2025, alleging multiple constitutional violations based on, among other things, the Act’s broad sweep, delegation of authority to a private entity, and use of a confidential methodology to set the fees imposed on producers.  On November 24, 2025, NAW requested a preliminary injunction stopping DEQ from enforcing the RMA based on impacts from recently issued invoices to producers.

The Court’s Order

After hearing the parties’ arguments on NAW’s motion for preliminary injunction and Oregon’s motion to dismiss, the court granted NAW an injunction against enforcement of the RMA.  The injunction prohibits DEQ, through its director in her official capacity, from enforcing the RMA against NAW or any of its members pending resolution of the case on the merits.

Applying the Ninth Circuit’s preliminary injunction framework, the court found that NAW raised “serious questions” about whether the RMA violates the Due Process Clause and the Dormant Commerce Clause of the U.S. Constitution.  The court further found that NAW demonstrated that its members faced irreparable injury and the balance of hardships tips sharply in NAW’s favor.

What Happens Next

The court has scheduled a trial on the merits of NAW’s claims to begin on July 13, 2026.  Meanwhile, the court’s injunction applies to NAW and its members, meaning that DEQ may still enforce the RMA against non-member companies.  The RMA requirements took effect in July 2025 for “producers” in the state, and Circular Action Alliance, which implements the requirements, recently issued its second round of invoices to producers for 2026 fees.  The case is, NAW v. Feldon et al., Case No. 3:25-cv-01334-SI.

In addition to Oregon’s program, EPR programs continue to take effect in other states—including, most immediately, Colorado and California.  Companies should continue to monitor developments in the Oregon litigation and assess their compliance approaches for state EPR programs more generally.  Sidley recently discussed the status of EPR programs in 2026 here and continues to advise companies in navigating these requirements.

This post is as of the posting date stated above. Sidley Austin LLP assumes no duty to update this post or post about any subsequent developments having a bearing on this post.