A federal judge will rule on the constitutionality and future of Oregon’s Recycling Modernization Act, which requires manufacturers to cover packaging disposal costs, with potential implications for similar laws in other states.
A federal judge in Oregon will determine the future of the state’s Recycling Modernization Act (RMA) by the end of August, following a lawsuit filed by the National Association of Wholesaler-Distributors. The law requires product manufacturers and distributors to cover some of the packaging disposal costs currently borne by municipal and specialty waste systems.
The case, National Association of Wholesaler-Distributors v. Feldon, challenges the constitutionality of the RMA, claiming it inhibits interstate commerce. The plaintiffs represent hundreds of companies, including food, beverage, and electronics wholesalers.
Key issues under review include the cost allocation system, the role of the nonprofit Circular Action Alliance in setting fees, and comparisons with similar producer responsibility systems in the EU, Canada, and other U.S. states. Testimony highlighted potential consumer impacts, operational feasibility, and legal challenges associated with implementing a fee-based recycling system.
Under the Oregon law, packaging fees are based on material type, weight, and recyclability, with exemptions for producers earning under $5 million in gross revenue. Products with reusable or lighter packaging carry lower fees. The Circular Action Alliance oversees the collection and allocation of funds to improve recycling infrastructure, in coordination with the Oregon Department of Environmental Quality.
The lawsuit and upcoming ruling are expected to influence similar packaging and recycling legislation in other U.S. states. The federal judge, Michael Simon, has not yet announced a decision, and both sides presented experts analyzing economic, operational, and environmental aspects of the law.
- Law: Oregon Recycling Modernization Act (2021)
- Issue: Constitutionality and interstate commerce concerns
- Plaintiffs: National Association of Wholesaler-Distributors
- Defendants: Oregon DEQ, Environmental Quality Commission, Attorney General Dan Rayfield
- Key features: Packaging fees based on weight, material, and recyclability; oversight by Circular Action Alliance
- Timeline: Federal judge decision expected by end of August
The case reflects broader debates in the U.S. over producer responsibility, fee structures, and the role of private organizations in managing recycling programs, as well as the challenges of balancing environmental goals with commercial and legal concerns.
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