Wholesalers Move to Pause Oregon Packaging Law
The trade group seeks to block fee collection while challenging the constitutionality of the state recycling act.
Updated on Oct. 22, 2026 in Legislative Policy
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The National Association of Wholesaler-Distributors has filed a motion to stay the enforcement of Oregon's Plastic Pollution and Recycling Modernization Act. The filing aims to prevent the Circular Action Alliance from collecting fees from members while the law remains under appeal.
Why it matters
The association argues its members face irreparable harm if forced to pay compliance fees while the constitutionality of the state law is still being contested in federal court.
The legal dispute involves a five-day bench trial and a pending appeal in the U.S. Court of Appeals for the Ninth Circuit. Fees are scheduled for collection by the Circular Action Alliance in January 2027.
The players
National Association of Wholesaler-Distributors
This trade association represents the interests of wholesale-distribution companies across the United States.
Circular Action Alliance
This is the designated producer responsibility organization responsible for overseeing Oregon's recycling fee system.
Michael H. Simon
He is a U.S. District Judge serving on the District Court for the District of Oregon.
The details
The motion requests that the U.S. District Court for the District of Oregon restore a preliminary injunction previously granted in February 2026. The association contends the law violates the Due Process Clause and the Dormant Commerce Clause, a claim rejected by Judge Michael H. Simon in his August ruling.
Timeline
February 6, 2026: Court granted initial preliminary injunction for NAW members.
August 27, 2026: Judge Simon reversed ruling and upheld the RMA law.
September 24, 2026: NAW filed notice of appeal to the Ninth Circuit.
October 16, 2026: NAW filed Motion for a Stay Pending Appeal.
January 2027: Circular Action Alliance issues invoices to members.
Political Context
Opponents of the mandate argue that the state’s approach unfairly burdens businesses and crosses into constitutional overreach. Advocacy groups backing the law maintain that the fee structure is essential for modernizing the state's waste management infrastructure.
Business owners in the state may face uncertainty regarding upcoming compliance costs if the court does not grant the requested stay before the January billing cycle. Taxpayers and residents remain affected by the ongoing legal timeline for implementing the state's recycling goals.
The takeaway
This case highlights the complex intersection of state environmental mandates and federal interstate commerce regulations. Industry participants should monitor upcoming court orders to determine their fee obligations for the next calendar year.
What happens next
The U.S. Court of Appeals for the Ninth Circuit is expected to hear arguments on the appeal following the January 2027 billing period.
Further reading
For more background on state regulatory changes, see Legislative Policy.
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