On July 1, 2025, Oregon’s Plastic Pollution & Recycling Modernization Act (RMA) will significantly change the state’s recycling system. The RMA places responsibility on “producers” to fund and manage the recycling process for the materials they introduce into Oregon. If your business produces or distributes packaging, food serviceware, or printing and writing paper in Oregon, it’s time to prepare. Here’s what you need to know.

Overview of the RMA and Its Purpose

Oregon’s RMA is attempting to address a number of the inefficiencies and failures of the current recycling system. The RMA puts this responsibility (and cost) on producers, such as inconsistent recycling standards between regions and contamination in recycling streams. Goals cited in the RMA include:

• Establishing a unified statewide list of recyclable materials.
• Expanding recycling access across urban and rural areas.
• Reducing waste and contamination.
• Setting long-term recycling and plastic reduction goals for 2028, 2040, and 2050.
• Holding producers accountable for the environmental impact of their products.

The RMA requires producers to fund improvements to recycling infrastructure and ensure proper end-of-life management for their products. By sharing recycling responsibilities, the law aims to foster innovation in packaging design and create a circular economy that benefits businesses, consumers, and the environment.

Who Is Required to Comply?

The RMA applies to producers of “covered products,” which fall into three main categories:

1. Packaging: Materials like plastic, paper, glass, and metal packaging used to contain or protect products.
2. Food Serviceware: Single-use items such as plates, cups, straws, lids, pizza boxes, and cutlery.
3. Printing and Writing Paper: Items including newspapers, magazines, brochures, catalogs, phone directories, and copier paper.

Producer Roles

Producers are defined based on their role in creating or distributing products:

• Brands: For packaging under a manufacturer’s own brand, the brand owner is responsible. If packaging lacks branding, the producer is the entity that manufactures the product.
• Licensees: If the brand owner contracts with a licensee, the licensee becomes responsible for compliance.
• Importers/Distributors: If a product is imported into Oregon and no U.S.-based producer is responsible, the importer assumes compliance obligations.

*Please note this is subject to change depending on the covered product. For example, the producer of service packaging such as single-use shopping bags, is who first sells the packaging in or into Oregon.

Exemptions and Excluded Products

Not all products and businesses fall under the law. You can find a comprehensive list of excluded products and exemptions here.

Exempt Businesses

The law also exempts specific types of businesses:

• Small producers with less than $5 million in annual revenue selling fewer than one metric ton of covered products annually.
• Restaurants, food carts, or similar businesses primarily serving food or beverages for immediate consumption.
• Small retailers operating a single store, without online sales or links to a franchise or chain.
• Public bodies and nonprofit organizations.

Compliance Requirements

The RMA places several obligations on producers of covered products. These include registration, payment of fees, and reporting to a Producer Responsibility Organization (PRO) to ensure their products are managed responsibly.

Registering with a PRO

Producers must join a DEQ-approved PRO.  In Oregon, Circular Action Alliance (CAA), is the only registered PRO. The PRO is responsible for collecting fees from producers, overseeing the collection and recycling of covered products, and ensuring producer compliance with state standards.

Fee Structure

PRO fees consist of a base rate aligned with recycling costs for specific materials. Producers who supply covered materials sold for use in Oregon greater than five metric tons with gross revenues of less than $10 million ‎may also choose to pay a flat fee ranging from $700 – $4,400 depending on the amount of supply tons sold. Adjustments incentivize producers to reduce their environmental footprint by using recyclable or sustainable materials. For example, switching to high post-consumer recycled content or reducing overall packaging volume could lower fees. The CAA has published a draft base fee rate estimate and tiered flat fee structure in their final approved plan on pgs. 196-203. The final 2025 detailed fee schedule will be published in June.

Reporting Obligations

Producers must track and report data on the quantity and types of covered products distributed in Oregon. This includes:

• Material-specific weight data.
• Information about the ultimate markets their products are recycled into.
• Biannual life cycle impact assessments (applicable to the top 25 producers).

*Non-covered products and packaging should be excluded in reported weights.

Flexibility in Compliance

Producers can reassign compliance duties within the supply chain. For example, a retailer may arrange for their supplier or distributor to assume responsibility for specific covered products as long as the arrangement is formalized and recognized by the PRO.

Risks and Penalties for Noncompliance

Noncompliance carries steep consequences, including:

• Daily fines of up to $25,000 for violations.
• Legal action by the Oregon Department of Justice prohibiting the sale of noncompliant products.

The PRO will also publish a public registry of compliant and noncompliant producers. Businesses risk damaging their reputation if flagged as noncompliant, particularly during early implementation years when scrutiny is likely to be high.

Where Are We Now in Implementation?

Oregon’s Department of Environmental Quality (DEQ) has approved the CAA’s program plan, marking a significant milestone in the RMA’s implementation. Over the next two years, the CAA will refine fee formulas, set up producer registration systems, and deploy educational resources. Producers will begin paying fees on the program start date of July 1, 2025. Businesses should monitor developments closely on the DEQ website to stay informed of updates and deadlines.

Steps for Early Preparation

Complying with the RMA may require time and resources, but proactive steps can ensure your business is ready by 2025:

1. Audit Your Products: Identify which of your products are covered under the RMA.
2. Track Data Now: Start gathering material-specific data to simplify PRO reporting.
3. Budget for Fees: Include projected PRO membership fees in your financial plans. Consider redesigning packaging to qualify for lower fees.
4. Train Your Team: Educate relevant staff on RMA compliance requirements and deadlines.
5. Engage with the PRO: If you haven’t yet,  we strongly suggest you register with the CAA and take advantage of any available resources or guidance. The CAA’s first deadline for submitting producer material supply data for the 2024 calendar year was March 31, 2025. Producers are encouraged to submit their late reports by April 30, 2025.

What’s Next?

For more nuanced guidance and to ensure compliance with the RMA, reach out to an attorney at Schwabe. Our experienced team can help you interpret the requirements, develop a compliance strategy, and mitigate potential risks. Don’t leave compliance to chance as the deadline rapidly approaches; act now to set your business on the path to success in Oregon’s evolving regulatory landscape.

This article summarizes aspects of the law and opinions that are solely those of the authors. This article does not constitute legal advice. For legal advice regarding your situation, you should contact an attorney.