A federal district court in Oregon overseeing the industry challenge to the state's packaging extended producer responsibility (EPR) law narrowed its recent preliminary injunction ruling. The court also rejected intervention by additional industry groups likely seeking coverage by the injunction.
The injunction, originally granted in February to the National Association of Wholesaler-Distributors (NAW), temporarily blocks enforcement of the state's law only for companies that were NAW members as of February 6, 2026. According to the order, companies that joined after that date are not covered and remain subject to compliance obligations. Similarly, companies that are not NAW members are not covered by the injunction.
The court also denied motions from several trade associations, including the American Forest & Paper Association, to intervene in the case, citing timing concerns and the risk of delaying the trial, which is scheduled for July 2026. These groups may still pursue separate legal challenges but cannot participate in the current case.
This ruling arguably complicates the implementation of the nation's first packaging EPR law. With reporting deadlines and fee assessments on the horizon, companies not covered by the injunction face a difficult decision. Should they comply with a law that may be struck down or significantly revised in the near future—compliance that requires significant effort and expense—or should they bring their own lawsuit, raising identical legal challenges as NAW to obtain an injunction? The issue is more significant when you consider that several other states have similar packaging EPR laws that could face the same legal challenges. Thus, the concern impacts broader considerations than just complying with Oregon's law.
Overall, the ruling sets the stage for a significant legal determination when the case proceeds to trial in July, which may serve as a bellwether for packaging EPR laws across the country.
If you have questions on packaging EPR laws or other state laws related to the circular economy and sustainability, please reach out to David Edelstein or Jake Bartlett at Vorys.