ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 5535

STATE OF NEW JERSEY

DATED:  JUNE 19, 2025

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 5535 (1R).

      As reported, this bill would prohibit the owner or operator of a scrap processing facility from storing or processing automotive shredder residue without first obtaining a permit from the Department of Environmental Protection (department).  The bill would require the department to establish a permitting program to establish appropriate limits on the volume, height, and length of time automotive shredder residue may be stored at a facility, taking into consideration the hazardous and flammable nature of automotive shredder residue, as well as prohibitions on the storage of automotive shredder residue in close proximity to residential structures and critical infrastructure.  The bill would require each scrap processing facility that stores automotive shredder residue to conform to the limits and prohibitions established in permits issued under the bill.

      The bill would also amend the “Solid Waste Management Act,” P.L.1970, c.39 (C.13:1E-1 et seq.) to expand the definition of “hazardous waste” to include automotive shredder residue in the definition.  The bill would also define “automotive shredder residue” (ASR) as the nonrecyclable residue that is generated as a direct result of processing automobiles, appliances, sheet steel, and other ferrous and nonferrous scrap metals through a hammermill shredder for purposes of recycling.  In including ASR in the definition of hazardous waste, the bill would make persons who transport, store, or process ASR subject to the same rules and regulations that apply to persons who transport, store, or process other hazardous wastes under the “Solid Waste Management Act.”  The bill would take effect one year after enactment.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that the bill would result in an increase in one-time State costs for the Department of Environmental Protection to establish the new permitting program for scrap processing facilities that store or process automotive shredder residue.  This could likely be performed by current staff using existing resources. The department would also incur indeterminate annual costs thereafter related to the enforcement of the new regulations.

      An indeterminate amount of revenue may accrue annually to the State from any fees and penalties collected by the department.  The OLS cannot reliably estimate how many violations of the bill will occur in a given year, or how many licenses will be issued, to estimate the extent of these revenue collections.