Court Imposes Preliminary Injunction Against Oregon’s EPR Law
A federal court has issued a preliminary injunction temporarily blocking enforcement of the state of Oregon’s extended producer responsibility (EPR) law.
The injunction currently applies only to members of the National Association of Wholesaler-Distributors (NAW). Non-NAW member companies must still adhere to the requirements of the law, pending the outcome of a lawsuit filed by NAW against the state of Oregon. The U.S. District Court for the District of Oregon is expected to hear arguments in that case on July 13.
Last summer, Oregon became the first state to implement an EPR law, a new type of regulation that requires distributors and other businesses that sell packaged products to pay new fees to support recycling programs and the end-of-life costs of covered products. Those fees are paid to a producer responsibility organization (PRO), Circular Action Alliance, a private entity that oversees the end-of-life management for products and packaging. NAW, FEDA, and other trade associations have opposed EPR laws because they impose new and costly regulatory burdens on distributors that typically have little control over product packaging.
The NAW’s lawsuit argues that Oregon’s implementation of the law runs afoul of the state and U.S. constitutions because it delegates sweeping regulatory authority to a private, third-party organization. In the preliminary injunction, the district court concluded that there was “a likelihood of irreparable injury and the balance of hardships tips sharply in the favor of the plaintiff.”
“This ruling is a significant victory for NAW members, who face imminent and irreparable harm under the act, including unrecoverable compliance costs, competitive distortions, and the risk of steep civil penalties,” NAW President and CEO Eric Hoplin said. “This is a major win for NAW member companies who have been dramatically impacted by the exorbitant fees imposed under the law by the Circular Action Alliance. NAW looks forward to presenting its case on the merits when the court hears our case on July 13.”