Plastics Updates - February 2026

Welcome to the February edition of the Plastics newsletter.Published monthly, we provide key litigation, regulatory, and newsworthy updates across the US, EU, UK, and APAC regions with regard to plastics.

LITIGATION

USA

Federal District Court Grants Preliminary Injunction in Oregon EPR Case (Feb. 6, 2026)

• On February 6, 2026, a federal district court in Oregon granted NAW's motion for preliminary injunction, while granting in-part and denying in-part the defendants' motion to dismiss in a challenge to Oregon's EPR Law (the Plastic Pollution and Recycling Modernization Act).
• NAW alleges the Act violated the Dormant Commerce Clause, Due Process Clause, and unconstitutional-conditions doctrine by burdening interstate commerce; delegating sweeping regulatory authority to a private entity (the Circular Action Alliance (CAA)); and imposing arbitrary, excessive fees that members cannot predict, control, or challenge.
• At the hearing, the court expressed three primary concerns with the structure of Oregon's law: (1) that CAA treats the Oregon fee-setting methodology as a confidential trade secret; (2) that challenges regarding the application of the fee methodology must be brought in binding arbitration; and (3) that CAA's board is primarily comprised of individuals affiliated with large companies that compete with NAW's members, and that some of the fees reportedly exceed some producers' profit margins.
• The court found that "there are serious questions" regarding whether Oregon's law violates the Dormant Commerce Clause and Fourteenth Amendment's Due Process Clause, there was a substantial likelihood of irreparable harm based on the potential substantial penalties for non-payment of fees, and that the balance of the equities tipped sharply in NAW's favor. The court thus granted the motion for a preliminary injunction. The court, however, dismissed without prejudice NAW's claims brought under the Oregon Constitution, unconstitutional-conditions, and equal-protection clause. The court also dismissed the individual defendants.
• The court's order enjoins Defendant Leah Feldon, in her capacity as Director of Oregon's Department of Environmental Quality (DEQ), from enforcing the Act against NAW and its members. CAA is not a party to the case and is not enjoined, meaning that CAA can still issue invoices, send delinquency notices, and administer the program. DEQ simply cannot enforce the law against NAW members while the injunction holds.
• Trial is scheduled for July 13, 2026.

Federal District Court Allows Claims Against California Attorney General to Proceed (Feb. 13, 2026)

• In early 2025, ExxonMobil sued California Attorney General Robert Bonta, and several U.S. environmental organizations (Sierra Club, Surfrider, Heal the Bay, and Baykeeper) and the Intergenerational Environment Justice Fund (IEJF) asserting claims related to statements made about ExxonMobil's advanced recycling practices (including business disparagement, defamation, and tortious interference with contract).
• On February 13, 2026, a Texas federal district court ruled on several pending motions, and dismissed all claims against the environmental organizations and the IEJF for lack of personal jurisdiction. The court held that the organizations' statements lacked sufficient "focal point" on Texas—i.e., the statements did not explicitly mention Texas, did not specifically reference ExxonMobil's Texas-based advanced recycling operations, and were not directed at Texas audiences—all of which failed to establish the minimum contacts for a Texas court to exert personal jurisdiction.
• The court, however, denied Bonta's motion to dismiss, finding specific personal jurisdiction based on Bonta's statements that referenced and targeted Texas-based activities. The court rejected Bonta's immunity defenses, finding that several statements fell outside of his official duties and because the suit seeks individual, not state, damages. Bonta has since filed an interlocutory appeal with the Fifth Circuit Court of Appeals, challenging the denial of his official and Eleventh Amendment immunity claims.
• The court also granted the motion of four Texas municipalities to intervene, holding that their damages were distinct from Exxon's and that their participation would aid the factual development of the case.

REGULATORY

USA

REUSE Act Heads to U.S. House for Consideration (Feb. 4, 2026)

• On February 4, 2026, the Research for Environmental Uses and Sustainable Economies (REUSE) Act was referred to the House Committee on Energy and Commerce. The bill is sponsored by Representatives Joe Neguse (D-CO), Vern Buchanan (R-FL), and Luis Correa (D-CA).
• The Senate previously passed the Act (HR 7370) unanimously. The legislation would require the U.S. Environmental Protection Agency to collect data on reuse and refill systems across multiple industries, including consumer packaging, personal care products, and wholesale shipping of retail goods.
• The Act would also direct the EPA to issue guidance on the support needed at the local, state, and federal levels to expand reuse and refill practices nationwide.

Recycled Materials Attribution Act Introduced in Congress (Feb. 11, 2026)

• On February 11, 2026, the Recycled Materials Attribution Act was introduced in the U.S. House of Representatives. The bipartisan bill aims to establish federal standards for recycling and recycled-content marketing claims. According to the Recycling Leadership Council, which supports the legislation, the Act would direct the FTC to update its Green Guides to align with the Act's standards, creating a consistent framework for companies nationwide.
• The bill is strongly backed by industry groups led by the Consumer Brands Association and the American Chemistry Council, which argue it will modernize rules, reduce misleading claims, and give manufacturers regulatory certainty to invest in advanced recycling.
• Environmental advocates criticize the bill for broadly accepting mass balance accounting tied to recycling, warning this could enable greenwashing—such as crediting plastics-to-fuel as "recycling"—and for failing to bolster existing mechanical recycling infrastructure.

New Colorado Bill Introduced to Protect Colorado Wildlife from Plastic Pollution (Bill Engrossed Feb. 12, 2026)

• The Plastic Pellet Free Waters Act (SB26-016), introduced at the start of Colorado's 2026 legislative session, passed the Senate Transportation and Energy Committee in a 5-3 vote and will now go before the full Senate.
• This bill would ban the Colorado Departments of Health and Environment from issuing permits that allow the discharge of plastic pellets. It also would make the reckless and knowing discharge of plastic pellets without a permit a class 2 misdemeanor, punishable by criminal penalties, administrative fines of as much as $15,000 per violation and civil penalties of as much as $25,000 per violation.
• Environmental advocates supporting the bill emphasize that plastic pellets can escape into the environment at every step of the supply chain, suggesting that manufacturers, transporters, and handlers of plastic pellets could all face compliance obligations under this legislation.
• Supporters frame the legislation as a measure to "hold polluters accountable" and stop pollution at its source, indicating that companies involved in spills or discharges of plastic pellets may face enforcement actions and potential penalties if the bill becomes law.

New California Bill Introduced to Require "Actual, Physical" Recycled Content Proof for Recycled-Content Claims (Feb. 19, 2026)

• On February 19, 2026, Assemblymember Tasha Boerner Horvath introduced AB 2253 in the California Assembly. The bill would amend Public Resources Code §42357.6 to clarify that any recycled-content claim must "be based on the actual physical recycled content in the product," and may not be substantiated using credit-based mass balance accounting (including free allocation and "book-and-claim" approaches).
• If enacted, AB 2253 would require manufacturers or suppliers that make claims regarding recycled-content to maintain documentation showing that recycled content was recovered or diverted from the solid waste stream (pre- or post-consumer) and that the claims conform to the FTC's Green Guides. The bill further requires companies to provide that documentation to the public upon request (or via a web link).
• The bill is backed by Californians Against Waste (CAW), a Sacramento-based environmental advocacy and research organization, and the Natural Resources Defense Council (NRDC). CAW has characterized mass balance accounting as an "accounting gimmick."

Newest Version of Tennessee EPR Bill Framed as Taking a Business Friendly Approach to Recycling

• This February, theTennessee Waste to Jobs Act gained renewed attention in the legislature as lawmakers consider an extended producer responsibility law for packaging. The extended producer responsibility bill is aimed at creating local jobs and extending the region's landfill capacity.
• Tennessee's EPR law is framed as a "business-friendly" alternative to other states' EPR programs, a change from stakeholder approaches that focus on environmental and circular economy-centric messaging.
• The Tennessee Waste to Jobs Act also emphasizes potential economic benefits. The latest draft would allow small businesses with under $10 million in annual revenue to opt out of the EPR program, which would include more than 95% of Tennessee businesses. It would also allow counties with under 200,000 residents to opt out.

EU

Amendments to Regulation (EU) 2024/3190 on the Use of Bisphenol A (Feb. 2, 2026)

• On February 2, 2026, the European Commission adopted Regulation (EU) 2026/250 amending Regulation (EU) 2024/3190 on the use of Bisphenol A ("BPA"). The amendment addresses certain inconsistencies and errors and improves the clarity of that regulation. Specifically, it clarifies the scope of the prohibition of the use of BPA and the transitional provisions concerning single-use food contact articles.
• The amendment will enter into force on February 23, 2026.

Guidance Document on the PPWR Leaked (Feb. 4, 2026)

• The European Commission is currently drafting a guidance document on Regulation (EU) 2025/40 on Packaging and Packaging Waste ("PPWR").
• The guidance document was leaked and clarifies some key aspects of the PPWR. In particular, the leaked guidance clarifies the definition of: (i) packaging; (ii) manufacturer and producer of packaging; and (iii) importer, including the status of a "branch."
• The PPWR will apply from August 12, 2026.

EU Approves Use of Mass Balance Accounting for Single-Use Bottles (Feb. 6, 2026)

• On February 6, 2026, a majority of Member States approved the use of mass balance accounting for chemically recycled single-use plastic (SUP) beverage bottles.
• The measure, adopted under the Single-Use Plastics Directive (SUPD), is expected to facilitate compliance with recycled content targets by formally recognising chemical recycling and mass balance methodologies in the implementing rules.
• Under the SUPD, PET single-use beverage bottles must contain at least 25% recycled content by 2025, increasing to 30% in all SUP beverage bottles by 2030.

Finnish Government Proposes a Circular Economy Act Addressing Plastic Waste (Feb. 10, 2026)

• The Finnish government is working on a Circular Economy Act (CEA) to amend and, eventually, replace the Waste Act.
• The CEA aims to increase the reuse of products, waste sorting and separate collection and recycling. It will be implemented in phases. The first phase focuses on improving recycling rates for municipal waste, packaging waste (in particular, plastic packaging) and bio-waste, enhancing the collection of electrical waste and electronic equipment, and reducing reliance on waste incineration.

Comments by the German Authorities on the Reporting System under the REACH Restriction on Microplastics (Feb. 19, 2026)

• The German Competent Authority has< a href="https://www.jonesday-ecommunications.com/e/neugfvegdbt7bdw" rel="noopener" target="_blank">provided feedback to the European Chemicals Agency (ECHA) on the implementation of reporting obligations under the REACH Restriction on Microplastics.
• Germany calls for mandatory use of well-established substance identifiers (in particular CAS number and CAS name) alongside Harmonised System codes and minimum requirements for free-text entries.
• These comments—particularly the request for discussions with enforcement authorities—signal that the German authorities are attentive to enforcement aspects and the practical implementation of the reporting system.

PLASTICS IN THE NEWS

USA

Reciprocal Tariffs Signal Strategic Shift in US Plastics Trade Policy

• Recently, the United States signed trade agreements with El Salvador and Guatemala regarding reciprocal tariffs on plastics. These trade agreements come on the heels of the Trump Administration raising concerns over the countries' trade with the United States.
• The agreements restored zero tariffs for 38 specific plastic materials, resins, and products, and maintained a 10% reciprocal tariff rate for all other plastics. Plastics imported for pharmaceutical and aircraft-related applications remain duty-free under the new agreements, reflecting the US focus on near-shoring efforts and national security considerations.
• Some experts contend these agreements mark an evolution in US trade policy rather than a departure from established practices, remaining consistent with longstanding cooperative trade relationships while adapting to changing economic and industrial conditions.
• The impact of the U.S. Supreme Court's February 20, 2026 ruling on these tariffs is unclear, given that the countries entered into a trade agreement and the President's announcement of another forthcoming round of tariffs.

State Attorneys General Tell Companies Their Sustainability Pacts Violate Antitrust Laws (Feb. 10, 2026)

• On February 10, 2026, the Attorneys General of Florida, Georgia, Nebraska, Iowa, North Dakota, South Dakota, Kansas, Montana, Texas, and West Virginia issued formal warning letters to nearly 80 corporations that are associated with the U.S. Plastics Pact, the Consumer Goods Forum, or the Sustainable Packaging Coalition for their involvement in alleged violations of antitrust and consumer protection laws.
• This follows October 29, 2025 letters sent by several state AGs to the Plastics Pact, the Consumer Goods Forum, and the Sustainable Packaging Coalition.
• The February 2026 letters assert that these organizations' "adherence to, coordination under, or reliance upon" plastics industry coordinated initiatives and compliance frameworks may constitute unlawful restraints of trade under the Sherman Antitrust Act, state antitrust laws, and consumer protection statutes. The letters emphasize that environmental goals do not excuse antitrust violations, and membership in industry associations does not immunize anticompetitive conduct from enforcement.
• The Attorneys General have indicated they may issue formal investigative demands or subpoenas.

Global

Canadian Federal Court of Appeal Upholds Decision Categorizing Plastic as Toxic (Jan. 30, 2026)

• The Canadian Federal Court of Appeal unanimously ruled that the Minister of the Environment and Climate Change had the authority to list plastics as toxic under the Canadian Environmental Protection Act, overturning a 2023 Federal Court decision that had deemed the listing "unreasonable and unconstitutional."
• The ruling allows Canada's regulations banning single-use plastic items—including checkout bags, cutlery, Styrofoam containers, stir sticks, and straws—to continue, affirming the government's ability to take action on plastic pollution.
• Major plastics manufacturers (Dow Chemical, Imperial Oil, Nova Chemicals) and the governments of Alberta and Saskatchewan are considering appealing to the Supreme Court of Canada to challenge the decision.
• Advocates hailed the ruling as a victory for science-based environmental protection, although the NDP urged the government to implement stronger regulations; however, the Environment Minister stopped short of committing to further action.

New Plastics Treaty Negotiation Chair Elected (Feb. 7, 2026)

• Julio Cordano of Chile was elected as the new Chairperson of the Intergovernmental Negotiating Committee (INC) at the resumed fifth session (INC-5.3) in Geneva on February 7, 2026, following the resignation of the previous chair in August 2025.
• The plastics treaty negotiations have been at a standstill since the conclusion of INC-5.2 and the departure of the previous chair. A small number of member states have employed delay tactics that have impeded progress throughout the negotiations, with environmental groups characterizing the process as being in "desperate need of a reset."
• Advocacy groups are calling on member states to commit to an ambitious, legally-binding treaty that addresses plastic pollution "at the source," and noted that governments demonstrated willingness to use voting mechanisms rather than relying solely on consensus-based decision-making.

Ross D'Entremont, Lauren Bustamante, Olga Gidalevitz and Mykala Ballard assisted with the development of this newsletter.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.