DISCUS, Wine Institute Challenge Oregon Recycling Law

One of the most popular theories among progressive interests is that the producers of products should bear whatever cost is incurred to clean up after them. So, when Oregon's recycling program needed modernization, the Oregon legislature came up with a scheme to shift the cost of waste management and recycling from local governments to the producers of packaging, paper producers and food service ware.

The mechanism for this is fairly straight forward: Make the producers pay a fee based on the weight of the package.

The Distilled Spirits Council of the U.S. and the Wine Institute Monday filed an Amicus Curiae brief in a lawsuit filed by the National Association of Wholesalers-Distributors challenging the statute.

In the brief, they make several points:

1. Because the fees are based on the weight of packaging, products, glass bottles used by wine and spirits producers will pay significantly more per bottle than if the product was packaged in a plastic container. Glass is already being successfully recycled in the state. The creates a perverse incentive less sustainable materials that happen to be lighter, contrary to the core objectives of the act and harming consumers.
2. The act has significant Commerce Clause issues because in practice it favors some in-Oregon producers over out-of-state producers because Oregon's small producer and bottle bill exemptions will apply to most in-state producers while leaving many out-of-state wine and spirits producers subject to the full costs of the EPR program. 
3. Because of the three-tier system, producers often cannot adjust prices only for a single state, meaning EPR costs imposed in Oregon may ultimately be spread across consumers in other states. 

The trial in the case was filed on Monday (7/13).