Key Insights on Proposed Exemptions in Oregon Rulemaking for 2026.

 Oregon’s Department of Environmental Quality (“DEQ”) is currently drafting its third rulemaking as it implements its extended producer responsibility law for packaging, paper, and food service ware. Last year, DEQ accepted requests for product-specific exemptions from the definition of “covered products” — the materials for which producers must report data and pay fees. Here, we provide an update on the various exemptions emerging in 2026.

A challenge to Oregon’s program is currently being litigated. But implementation continues for producers not represented in the lawsuit, including data reporting and fee payment obligations.

Exemptions are intended for materials that do not burden the commingled recycling system Oregon’s EPR law is designed to improve or for materials otherwise constrained by their highly-regulated nature, such as certain medical device packaging.

DEQ exempts materials either through rulemaking or by granting a producer’s exemption request. The rulemaking exemptions include categories that apply to producers generally, such as certain materials used or sold on farms. A producer’s exemption request applies to that producer individually.

Rulemaking Exemptions

Of the twenty-nine requests submitted to DEQ in 2025, DEQ recommends granting the following three: (1) five forms of specialty packaging used exclusively in industrial or manufacturing processes, such as industrial totes and Intermediate Bulk Containers; (2) labels that need to be removed before using a product, such as apparel hang tags; and (3) garbage bags not marketed for any recycling purpose.

DEQ also recommended denying exemption requests for various categories of secondary/tertiary business-to-business packaging, printing and writing paper, and food-contact packaging, among others. The statute and adopted regulations already exempt certain materials in these categories.

Otherwise, DEQ explained its denial recommendations by noting how a given material ends up burdening the commingled recycling system for which producers need to pay and not free-ride, or how subjection to federal laws does not preclude compliance with Oregon’s EPR law. Responding to the federal conflict point, DEQ emphasized that because Oregon’s law does not contain plastic source reduction and material substitution requirements, exemption rationales developed for California’s EPR law do not necessarily apply in Oregon.

These are initial recommendations. DEQ’s forthcoming proposed rulemaking will clarify their scope and requirements.

While these exemption requests unfold at the regulatory level subject to DEQ’s discretion, legislative amendments can also add exemptions to Oregon’s EPR program. At the start of the 2026 legislative session, Oregon House Bill 4030 proposed to add statutory exemptions for packaging for specific fruits sold as raw agricultural commodities and for non-compostable packaging directly contacting meat, poultry, fish, or seafood.

Individual Exemption Requests

Producers may submit an Exemption for Private Recycling to receive a fee credit for materials that are: (1) collected through a private collection program; (2) not separated at commingled recycled processing facilities; and (3) recycled at a responsible end market.

DEQ has identified certain statewide volumes of tertiary corrugated cardboard, non-consumer pallet wrap, and shredded paper that qualify for this exemption. Producers can submit an exemption request for these materials by indicating the quantities they use in their annual data reports. They then receive a credit for their material proportional to the statewide total volume DEQ identified.

Producers may also submit exemption requests for additional types or quantities of material not reflected in DEQ’s statewide assessment. But this means the producer needs to substantiate that its material satisfies the three-part standard for “private recycling” above. DEQ is accepting individual exemption requests through March 31, 2026, for material producers used in 2025. The credit will apply to the 2027 fee year.

EPR Group helps producers understand and utilize appropriate exemptions across the different state programs as part of its array of compliance support for EPR programs and related packaging laws and initiatives.