What's Happening?
Trade associations and industry groups are facing complex compliance obligations as Extended Producer Responsibility (EPR) programs are implemented across various states. Oregon and Colorado have fully implemented programs, while other states like Maryland,
Minnesota, and Washington are in phased implementation. The National Association of Wholesaler-Distributors (NAW) has filed a lawsuit challenging Oregon's EPR program on constitutional grounds, resulting in a preliminary injunction against enforcement for NAW members. This legal action adds uncertainty to compliance obligations, as producers must navigate differing state requirements and contractual obligations with the Circular Action Alliance (CAA), the sole Producer Responsibility Organization in multiple states.
Why It's Important?
The expanding EPR landscape presents significant compliance challenges for companies operating across multiple states, as they must adhere to varying definitions of 'producer' and differing scopes of covered materials. This patchwork of regulations can lead to different compliance outcomes and financial obligations. The ongoing litigation in Oregon could influence how other states design their EPR programs and inform future legal challenges. Trade associations play a crucial role in guiding members through these complexities, assessing litigation strategies, and advocating for harmonization across state programs to reduce compliance burdens.
What's Next?
A hearing on the remaining constitutional issues in the NAW lawsuit is scheduled for July 2026. The outcome could have implications beyond Oregon, potentially affecting EPR program designs in other states. Trade associations must monitor this litigation closely and evaluate its impact on members. They may also need to consider strategic participation in litigation and advocacy efforts to promote clarity and transparency in EPR regulations. As states continue to implement or consider EPR frameworks, associations will be pivotal in supporting member education and risk management.
