Federal judge upholds Oregon recycling responsibility law

Court rejects constitutional claims

U.S. District Judge Michael H. Simon ruled on Aug. 27, 2026, that Oregon’s Plastic Pollution and Recycling Modernization Act does not violate the Dormant Commerce Clause or the Due Process Clause. His findings and legal conclusions followed a five-day bench trial in July 2026 and post-trial filings from the National Association of Wholesaler-Distributors and Leah Feldon, director of the Oregon Department of Environmental Quality.

The wholesalers’ association argued that the law discriminates against interstate commerce. It also argued that burdens on interstate commerce are excessive compared with the law’s benefits within Oregon. Simon concluded that the law does not violate the constitutional limits raised in the case.

How Oregon’s program works

Oregon enacted the law to restructure its recycling system. It took effect Jan. 1, 2022, and places part of the financial responsibility for managing packaging, printing and writing paper, and food-service ware on producers.

The system uses producer responsibility organizations to administer major parts of the program. Circular Action Alliance currently serves that role in Oregon. DEQ approves the organization’s program plan and regulates the system, while the alliance handles producer participation and calculates membership fees under the approved plan.

The wholesalers’ association described Circular Action Alliance as a financially interested private organization exercising government regulatory power over businesses that have no practical alternative to contracting with it. DEQ countered that the Legislature could assign administrative duties to such an organization and that the alliance operates under state requirements, an approved plan, agency oversight, and administrative and judicial review. The program’s structure and the extent of DEQ’s oversight were central to Simon’s conclusions.