A4902 1R

An Act concerning the recycling of packaging products and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

"Advisory council" means the Statewide Recycling Needs Assessment Advisory Council established pursuant to section ¹[2] 3¹ of this act.

"ASTM" means ASTM International, formerly known as the American Society for Testing and Materials, the international organization that develops and publishes technical standards.

"Commissioner" means the Commissioner of Environmental Protection.

"Compostable material" means a material designed to contact, contain, or carry a product, ¹[that] which material¹ can be collected for composting and ¹[that]¹ is capable of undergoing aerobic biological decomposition in a controlled composting system¹,¹ as demonstrated by meeting ASTM D6400, ASTM D6868, or any successor standards.

"Composting rate" means the percentage of discarded materials that are managed through composting, calculated by dividing the total weight of all packaging that is collected for composting by the total weight of all packaging sold, distributed, or served to consumers in the State during the study period.

"Covered entity" means a person or entity responsible for: ¹[(1)]¹ a single or multifamily residence, either individually or jointly through a unit of local government; ¹[(2)]¹ a public or private school ¹[for] serving¹ grades kindergarten through 12th grade; ¹[(3)]¹ a State or local government facility; or ¹[(4)]¹ a public space, including, but not limited to, a park, trail, transit station, or a pedestrian area for which the State or a unit of local government is responsible.

"Curbside recycling" means the collection of recyclable materials from covered entities at the site where the recyclable materials are generated.

"Department" means the Department of Environmental Protection.

"Drop-off recycling" means the collection of recyclable material from covered entities at one or more centralized sites.

"Hauler" means a person who collects recyclable or compostable materials and transports them to an MRF or compost facility, or to an intermediate facility from which materials are then transported to an MRF or compost facility.

"Material recovery facility" or "MRF" means the same as the term is defined in section 3 of P.L.2007, c.311 (C.13:1E-96.4).

"Overburdened community" means the same as that term is defined ¹[by] in¹ section 2 of P.L.2020, c.92 (C.13:1D-158).

"Packaging" means a discrete material or category of material, regardless of recyclability, that ¹[is]¹: ¹[(1)] is¹ used to protect, contain, transport, or serve a product; ¹[(2)] is¹ sold or supplied to consumers expressly for the purpose of protecting, containing, transporting, or serving products; ¹[(3)] is¹ attached to a product or its container for the purpose of marketing or communicating information about the product; ¹[(4)] is¹ supplied at the point of sale to facilitate the delivery of the product; or ¹[(5)] is¹ supplied to or purchased by consumers expressly for the purpose of facilitating food or beverage consumption and ¹is¹ ordinarily disposed¹-¹of after a single use or short-term use, whether or not it could be reused. "Packaging" includes packaging composed of paper, plastic, glass, metal, or ¹[multi-material] multiple types of such materials¹.

"Person" means any individual, partnership, co-partnership, firm, company, limited liability company, corporation, association, joint-stock company, trust, estate, political subdivision¹,¹ including the Department of Environmental Protection, or any other legal entity, or the entity's legal representative, agent, or assign.

"Postconsumer material" means packaging that has served its intended end use as a consumer item. "Postconsumer material" does not include a byproduct or waste material generated during or after the completion of a manufacturing or converting process.

"Postconsumer recycled content" means the portion of an item of packaging made from postconsumer material that has been recycled.

"Recycling" means a method, technique, or process designed to remove any contaminant from waste so as to render such waste reusable, or any process by which materials that would otherwise be disposed of or discarded are collected, separated, or processed and returned to the economic mainstream in the form of raw materials or products. "Recycling" does not include¹:¹ landfill disposal of packaging or the residue resulting from the processing of packaging at an MRF¹[,];¹ use as alternative daily cover or any other beneficial use at a landfill¹[,];¹ incineration, energy recovery, or energy generation by means of combustion¹[,];¹ or final conversion of packaging or their components and by-products to a fuel.

"Recycling rate" means the percentage of packaging that is recycled and returned to the economic mainstream in the form of raw materials or products¹,¹ rather than being disposed of or discarded, calculated by dividing the total weight of packaging that is collected for recycling by the total weight of packaging sold, distributed, or served to consumers in the State during the study period, not including the residue that is landfilled after processing by an MRF.

"Reusable" means that a product is¹[: (1)]¹ designed to be refilled, ¹either¹ at home or via a return system, and used repeatedly for its original intended purpose¹[;],¹ and ¹[(2)] is¹ safe for washing and sanitizing ¹,¹ according to applicable food safety laws.

"Reuse" means the return of packaging to the economic stream for use in the same kind of application intended for the original packaging¹,¹ without effectuating a change in the original composition of the package.

"Statewide recycling needs assessment" or "needs assessment" means the study of the recycling, composting, and reuse conditions for packaging in the State, conducted by an entity selected by the department pursuant to section 2 of this act.

"Study period" means the period represented by the data compiled and analyzed in the Statewide recycling needs assessment conducted pursuant to section 2 of this act.

2. a. The department shall issue a competitive solicitation to select a qualified consultant to conduct a Statewide recycling needs assessment to assess recycling, composting, and reuse conditions for packaging in the State, including identifying current conditions and an evaluation of the capacity, costs, gaps, and needs associated with recycling and the diversion of packaging. The department shall select the consultant no later than January 15, 2026. The needs assessment shall be funded by the department, using moneys appropriated for that purpose, including those appropriated pursuant to section 5 of this act.

b. Except as provided by section 4 of this act, all packaging sold, offered for sale, distributed, or imported into the State shall be included in the needs assessment.

c. The needs assessment shall address, at a minimum, the following factors for covered entities:

(1) the quantity, by weight and type, of packaging sold, offered for sale, distributed, or served to consumers in the State¹,¹ by material type and format;

(2) current ¹[collection]¹ systems for ¹the collection of¹ packaging in the State, including ¹systems that enable the collection of packaging¹ for ¹purposes of¹ reuse, recycling, composting, and disposal;

(3) the quantity, by weight, of municipal solid waste disposed of¹,¹ on a county-by-county basis¹,¹ for all counties in the State;

(4) the processing capacity and infrastructure for reusable, recyclable, and compostable packaging collected in the State, including capacity and infrastructure¹,¹ outside the State¹,¹ which serves or may serve the State;

(5) current reuse, recycling, and composting rates for packaging in the State¹,¹ by material type;

(6) current postconsumer recycled content use¹,¹ by material type¹,¹ for all ¹packaging¹ sold in the State;

(7) current reusability, recyclability, or compostability of packaging, by material type, for all packaging sold, offered for sale, distributed, or served in the State;

(8) current system-wide costs for the collection, reuse, recycling, and composting of packaging;

(9) current operational and capital funding limitations impacting reuse, recycling, and composting access and availability for packaging throughout the State;

(10) collection and processing system needs to provide access to curbside recycling services for all covered entities within municipalities ¹[with] having¹ a population of 1,500 or more¹,¹ based on the most recent United States Census, with collection provided no less frequently than once every two weeks, and ¹to provide¹ at least one drop-off location for recyclable and compostable materials within 15 miles of the municipal boundary ¹[for municipalities with] of each municipality having¹ a population less than 1,500, with needs identified on a county-by-county basis for all counties in the State, and the estimated costs to meet ¹[the] those¹ access requirements;

(11) program costs and capital investments required to achieve optimal recycling rate goals¹,¹ by December 31, 2035¹,¹ for each material type, including paper, plastic, glass, and metal, and including investment into existing and future reuse, recycling, and composting infrastructure for packaging;

(12) the market conditions and opportunities for reusable, recyclable, and compostable packaging¹, both¹ in the State and regionally;

(13) multilingual public education needs for the reduction, reuse, recycling, and composting of packaging, including, but not limited to, a scientific survey ¹[of] evaluating¹ current awareness ¹levels,¹ among residents of this State ¹[of], with respect to the¹ proper end-of-life management ¹[for] of¹ packaging and the needs associated with the reduction of contamination rates at MRFs in the State;

(14) an assessment of environmental justice and recycling equity ¹issues¹ in the State, including, but not limited to:

(a) an evaluation of current access to, and the performance of, curbside and drop-off recycling programs in units of local government designated as overburdened communities; and

(b) a comparison of the location of MRFs and compost facilities in units of local government that have been designated as overburdened communities with units of local government that are not so designated.

d. The study period of the needs assessment shall be a minimum of a one-year calendar period and shall be clearly defined in the scope of the work. If more than one year of data is used, data shall be presented on an annual basis.

e. Persons ¹[with] having¹ data or information required to complete the needs assessment shall ¹timely¹ provide the department, or the consultant contracted by the department, as appropriate, with such data or information ¹[in a timely fashion] as requested¹ to assist in completing the needs assessment.

f. No later than December 31, 2026, the consultant contracted by the department shall provide a draft needs assessment to the advisory council. The advisory council shall provide written comments to the consultant no later than 90 days after receipt of the draft needs assessment. The consultant shall include an assessment of comments received in the final needs assessment and shall provide a summary and an analysis of any issues raised by the advisory council and significant changes suggested by any such comments, ¹as well as¹ a statement of the reasons why any significant changes were not incorporated into the final needs assessment, and a description of any changes made to the final needs assessment as a result of such comments. The consultant shall present the final needs assessment to the department no later than May 1, 2027. No later than June 1, 2027, the department shall submit the report to the Governor¹[,]¹ and ¹[to the Legislature],¹ pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1)¹, to the Legislature¹.

3. a. The "Statewide Recycling Needs Assessment Advisory Council" is hereby established in the department. No later than January 1, 2026, the commissioner shall appoint members to the advisory council to provide advice and recommendations to the department in the drafting, amendment, and finalization of the Statewide recycling needs assessment conducted pursuant to section 2 of this act.

b. In appointing members to the advisory council, the commissioner shall consider representatives from all geographic regions of the State, all sizes of communities in the State, all supply chain participants in the recycling system, and the racial and gender diversity of the State.

c. The commissioner may determine the number of members of the advisory council. However, members shall include, but need not be limited to, the following voting members:

(1) four individuals representing material recovery facilities in the State;

(2) four individuals representing haulers, one of whom shall represent a Statewide organization representing haulers, one of whom shall represent a publicly traded hauler, one of whom shall represent a privately owned hauler, and one of whom shall operate a recycling drop-off facility;

(3) one individual representing compost collection and processing facilities;

(4) four individuals representing rural and urban local government entities, one of whom shall represent a county with a population of less than 50,000, one of whom shall represent a county with a population of more than 50,000 and less than 1,000,000, one of whom shall represent a county with a population of more than 1,000,000, two of whom shall represent municipalities with a population of less than 1,000,000, one of whom shall represent a Statewide organization of municipalities, and one of whom shall represent a municipality with a population of 1,000,000 or more;

(5) two individuals representing retailers, one of whom shall represent a Statewide association of retailers;

(6) two individuals representing environmental organizations;

(7) two individuals representing environmental justice advocacy organizations or environmental justice communities;

(8) one individual representing a Statewide manufacturing association;

(9) ¹one individual representing the plastics manufacturing industry and associated plastic manufacturers;

(10)¹ one individual representing manufacturers of products containing postconsumer material, or one or more associations of such manufacturers;

¹[(10)] (11)¹ one individual representing manufacturers of packaging utilizing virgin materials, or one or more associations of suppliers of substrates of packaging; and

¹[(11)] (12)¹ four individuals representing producers of consumer products.

d. An individual may be appointed to only one position on the advisory council.

e. The duties of the advisory council shall be to:

(1) provide guidance on the scope of work for the needs assessment conducted pursuant to section 2 of this act;

(2) assist in the provision of data required to complete the needs assessment;

(3) review and comment on the needs assessment prior to completion;

(4) review packaging legislation enacted in other states, including identifying the main components, implementation steps, and implementation status of the legislation¹[,]¹;

(5) evaluate and make recommendations, including legislative recommendations, on how to effectively establish and implement a producer responsibility program in the State for packaging, including recommendations regarding the responsibilities of producers under a producer responsibility program; and

(6) prepare and submit a report of its findings and recommendations, no later than December 1, 2026, to the Governor¹[,]¹ and ¹[to the Legislature],¹ pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), ¹to the Legislature,¹ which shall include an opportunity for a minority report.

f. The advisory council shall elect a chair¹,¹ from ¹among¹ its members¹,¹ by a simple majority vote. The advisory council shall meet at the call of the chair, except for its first meeting, which shall be called by the commissioner. The advisory council shall meet at least quarterly, or ¹more frequently,¹ as determined by the chair. The members of the advisory council shall serve without compensation, but shall be entitled to reimbursement for all necessary expenses incurred in the performance of their duties, within the limit of funds provided.

g. The advisory council may adopt bylaws and a charter for the operation of its business pursuant to this act.

h. The department shall provide staff and administrative support to the advisory council, as necessary to facilitate the advisory council's work and the effectuation of its purposes and duties.

i. No later than 30 days after the submission of the final Statewide recycling needs assessment¹,¹ pursuant to section 2 of this act, the advisory council shall be dissolved.

4. a. The following types of packaging shall be exempt from the provisions of this act:

(1) packaging ¹[that is]¹ included with ¹[products] any product that is¹ regulated¹, by the United States Food and Drug Administration¹: (a) as a drug, medical device, or dietary supplement ¹[by the United States Food and Drug Administration], as those terms are defined¹ under section 201 of the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. s.¹[301 et seq.] 302, as amended by the federal Dietary Supplement Health and Education Act, Pub.L.103-417¹; ¹or¹ (b) as a "combination product," as defined under 21 C.F.R. 3.2(e); ¹[or (c) or Pub.L. 103-417, known as the Dietary Supplement Health and Education Act]¹;

(2) packaging ¹included with any product that is¹ regulated¹,¹ by the United States Department of Agriculture¹,¹ pursuant to 21 U.S.C. ss.151-159, known as the Virus-Serum-Toxin Act, including animal biologics, vaccines, bacterins, antisera, diagnostic kits, and other products of biological origin; ¹and¹

(3) packaging ¹included with any product that is¹ regulated ¹[by], as an insecticide, fungicide, or rodenticide, pursuant to¹ the federal "Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. s.136 et seq.¹,¹ or ¹pursuant to¹ any other applicable federal law, rule, or regulation.

b. Packaging exempted under this section shall not be required to be included in the Statewide recycling needs assessment conducted pursuant to section 2 of this act.

5. There is appropriated from the General Fund to the Department of Environmental Protection the sum of $500,000 in order to implement the provisions of this act.

6. This act shall take effect immediately and shall expire 30 days after the submission, to the Governor and the Legislature, of the final Statewide recycling needs assessment pursuant to section 2 of this act.