LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 4526

STATE OF NEW JERSEY

221st LEGISLATURE

DATED: JUNE 23, 2025

SUMMARY

Synopsis:	Requires certain facilities that store or process automotive shredder residue to obtain DEP permit; defines "hazardous waste" to include automotive shredder residue.
Type of Impact:	Annual State expenditure and revenue increases.
Agencies Affected:	Department of Environmental Protection.

Office of Legislative Services Estimate
Fiscal Impact	Annual
State Expenditure Increase	Indeterminate
State Revenue Increase	Indeterminate

· 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. 

BILL DESCRIPTION

      This bill would prohibit the operator of a scrap processing facility from storing or processing automotive shredder residue without first obtaining a permit from the Department of Environmental Protection.  The bill would require the department to establish a permitting program to determine appropriate limits for the volume, height, and length of time that 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 its storage 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 by the department pursuant to a permit issued under the bill.  The bill would also amend current law to include certain definitions for "hazardous waste" and automotive shredder residue.

      By including automotive shredder residue in the definition of hazardous waste, the bill would make persons who transport, store, or process it 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.

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The 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.

      Additionally, 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.  The OLS notes, however, that there are 440 known scrap processing facilities in the State, but it is unclear how many currently process automotive shredder residue and would need to be newly licensed under the bill.

      The State may also experience an indeterminate annual revenue increase, as owners of scrap processing facilities that store or process automobile shredder residue would be subject to civil actions, civil administrative penalties, or civil penalties under the Solid Waste Management Act. Under the act, the department is authorized to assess a civil administrative penalty of up to $50,000 for each violation, with each day of the violation constituting a separate offense.  Moreover, those in violation of this act who receive an administrative order issued by the department are subject to a fine of up to $100,000 per day. 

Section:	Environment, Agriculture, Energy, and Natural Resources
Analyst:	Anna Heckler Assistant Fiscal Analyst
Approved:	Thomas Koenig Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).