27 THE MBA REPORT ⁄ SPECIAL ADVERTISING SECTION Rachel Melissa 503.802.5675 rachel.melissa@tonkon.com tonkon.com Maureen Bayer 503.802.2115 maureen.bayer@tonkon.com tonkon.com 27 COLLABORATIVE STORY ⁄ LAW PROFILE Oregon’s Recycling Modernization Act: What Businesses Need to Know BY RACHEL MELISSA & MAUREEN BAYER, TONKON TORP LLP Long known for its progressive environmental policies, Oregon once again became a frontrunner with the 2021 passage of the Plastic Pollution and Recycling Modernization Act (RMA). The RMA is a new Extended Producer Responsibility (EPR) law requiring that businesses assume financial responsibility for the ultimate disposal of any packaging associated with their products. The RMA was fully implemented on July 1, 2025, and is having a significant impact across nearly every sector. Importantly, Oregon’s RMA applies to any covered business that sells or distributes its products in or into Oregon, regardless of where the business is located. Compliance with Oregon’s law involves annually reporting the weight of packaging and other covered materials disposed of in Oregon, and paying fees based on those quantities. Those fees will fund improvements and management of the state’s recycling program and ensure equal access to recycling services across the state. Failure to comply with the law can result in steep penalties from the Oregon Department of Environmental Quality (DEQ). Oregon’s first EPR law was the Oregon Bottle Bill, passed in 1971, which required the beverage industry to assume responsibility for the recycling of beverage containers. Since then, Oregon has implemented additional EPR programs focused on items such as electronics, mattresses, and paint. While the logistics of each law differ, they share a common goal: to shift the disposal burden away from municipalities. Although Oregon was among the first to pass a packaging EPR law, it is not alone in this effort. Since 2021, six states have passed similar legislation: California, Colorado, Maine, Maryland, Minnesota, and Washington. Numerous additional states are actively considering packaging EPR laws. EPR laws typically rely on a Professional Responsibility Organization (PRO) to coordinate and manage the law. The PRO for Oregon, Circular Action Alliance (CAA), functions as the middleman between obligated producers and DEQ. Producers must pay fees and submit supply reports to CAA, which reports information to DEQ and distributes the revenue to fund recycling services and infrastructure projects. To determine if your business is obligated under the RMA, you must determine: (1) if the materials associated with your products are covered by the law and (2) if you are the obligated “producer” of those materials. What materials are covered by the law? The RMA covers three broad categories of materials: packaging, food serviceware, and paper. Whether the material is recyclable, compostable, or otherwise “eco-friendly” is irrelevant: all disposable materials are included within the scope of the law, subject to certain limited exemptions. “Packaging” covers single-use materials that are used to contain or protect a product. This includes all disposable bags, boxes, cushioning, fasteners, labels, and shipping materials: anything that will end up in the trash, compost, or recycling in Oregon. “Food serviceware” includes disposable cups, take-out containers, plastic lids, straws, beverage trays, disposable cutlery and plates, and any other items that are used to contain or consume ready-to-eat food or beverages. The final category is printing and writing paper. This includes all printed materials, such as catalogs, coupons, flyers, and mailers. Who is a producer? If your business utilizes covered materials, you will then need to determine if your business is obligated to report those materials as a “producer” under the RMA. The first question is whether an exemption applies. For example, Oregon’s RMA exempts “small producers,” which have a total annual revenue under $5 million or generate under one ton of covered materials annually. If your business is not exempt, you must determine which materials your business is responsible for reporting. Depending on the circumstances, the producer of a covered product may be the entity that manufactures the packaged item, the licensee of a brand or trademark under which a packaged item is sold, the entity that imports the packaged item into the United States, or the entity that first distributes the material into Oregon. Because this analysis can be complex, it is vital to seek legal counsel to help determine your business’s compliance obligations under the RMA. Steps for compliance #1: Register. Once you’ve confirmed your legal obligation to report as a producer, you will need to register with CAA. You will also be required to enter into non-negotiable agreements with CAA. #2: Report. After you register, CAA will provide guidance to help you report the materials your business supplied into Oregon in 2024 by weight and type. #3: Pay fees. After you’ve reported, your business will receive an invoice from CAA. The initial deadlines for registration and reporting have passed and CAA has issued invoices to registered producers. All impacted business should act quickly to comply with the RMA to avoid the potential for enforcement action.
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