$8 Trillion Wholesale Industry Sues Oregon Over Recycling Law

The $8 trillion wholesale product distribution industry has filed a lawsuit against Oregon just weeks after the state's Plastic Pollution and Recycling Modernization Act took effect. Passed in 2021, the law establishes statewide recycling standards and imposes packaging fees on companies based on the weight and recyclability of their packaging materials, aiming to shift disposal costs from businesses and residents to manufacturers and distributors. The fees incentivize producers to use less packaging and more sustainable materials by charging higher fees for bulky plastics and single-use packaging. The National Association of Wholesaler-Distributors, representing the wholesale industry, argues in federal court that the law is unconstitutional because it assigns regulatory authority over fee schedules and collections to entities other than the state's environmental quality department. Oregon's Department of Environmental Quality, Environmental Quality Commission, and Attorney General Dan Rayfield are named as defendants, though officials have declined to comment on the pending litigation. The lawsuit highlights the tension between environmental initiatives designed to reduce pollution and industry concerns about regulatory overreach and financial burdens.