LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4630
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 17, 2025
SUMMARY
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Synopsis: |
Directs DEP to establish scrap tire hauler license and scrap tire storage, collection, and disposal site permit. |
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Type of Impact: |
Annual State revenue and expenditure increases. |
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Agencies Affected: |
Department of Environmental Protection. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
FY 2026 |
FY 2027 & Thereafter |
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State Expenditure Increase |
$1 million |
$350,000 to $640,000 |
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State Revenue Gain |
Indeterminate |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that this bill will increase annual State expenditures as the Department of Environmental Protection implements a new scrap tire hauler licensing program, a scrap tire site permitting program, and a scrap tire management and manifest system. The OLS estimates one-time development costs to be around $1 million.
· After implementation, the department would incur annual maintenance expenses, including system hosting, software updates, technical support, and ongoing system improvements. The OLS estimates that these recurring operating costs would likely range from $250,000 to $500,000 per year, depending on the scale of usage, enforcement tools incorporated, and whether the department relies on in-house or contracted technical support.
· The OLS anticipates that the department would require at least one full-time staff member to administer the program. The full salary, including benefits, for such a position would likely fall within a range of $100,000 to $140,000 annually. If the number of licensees or permitted sites is high, or if enforcement demands increase, the department may require additional staff or contractual support, which would increase recurring expenditures.
· An indeterminate amount of revenue will accrue annually to the department from application and application renewal fees for the scrap tire hauler licensing program and for the scrap tire storage, collection, and disposal permitting program. Additionally, the department will realize an indeterminate amount of revenue from the civil and civil administrative penalties levied for violating the bill’s provisions.
· To the extent that stronger oversight of tire hauling reduces illegal dumping or abandoned tire stockpiles, the State, counties, and municipalities may experience long-term savings associated with fewer cleanup or remediation actions, although these savings are indeterminate at this time.
BILL DESCRIPTION
This bill prohibits persons from engaging in scrap tire collection unless they possess a license issued by the Department of Environmental Protection. To that end, the department would establish a new scrap hauler license program, including an application process and eligibility requirements for applicants. An application for a scrap hauler license or renewal license shall be accompanied by an application fee established by the department that is required to cover all costs of processing the application and issuing the license or license renewal. The department may also establish an annual fee that shall be charged to a person who qualifies for a license. The revenue from the annual fees is to be sufficient to cover all costs of administering and enforcing the license program. The bill would also require the department to establish a system for the manifesting, tracking, collection, recycling, and disposal of scrap tires, and would authorize the department to require licensed scrap tire haulers to utilize the system.
The bill would also require the department to establish a permit for scrap tire storage, collection, and disposal sites. The application for this permit is to include a fee established by the department sufficient to cover all costs of processing the application and issuing the permit or permit renewal. The department may also establish an annual fee that shall be charged to a person who qualifies for a permit.
Finally, the bill would establish a civil administrative penalty of not more than $7,500 for a first offense, not more than $10,000 for a second offense, and not more than $25,000 for a third and every subsequent offense, for violations of the bill's provisions. The bill would also establish a civil penalty of up to $7,500 for violations of the bill's provisions, and a civil penalty of up to $50,000 for persons who fail to obey administrative orders, court orders, or pay civil administrative penalties in full. The penalties would be assessed for each day during which the violations continued.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that this bill would result in both one-time and ongoing increases in State expenditures as the Department of Environmental Protection establishes and administers a new regulatory framework for scrap tire haulers and scrap tire storage, collection, and disposal sites. Because the bill requires the department to implement a statewide scrap tire management system, including a manifesting and tracking component, licensing and permitting infrastructure, and new enforcement capabilities, the department will likely incur information technology development costs, staffing costs, and other annual operating costs. Fees and penalties authorized under the bill may offset some or all of the ongoing expenditures, but the magnitude of the revenue increase will depend on the number of licensees, permitted sites, and the level of enforcement activity, which cannot currently be predicted.
A major cost driver associated with the bill is the requirement that department establish a scrap tire management system capable of tracking the movement of scrap tires through an electronic manifest or similar system. The department has previously established similar programs, such as for the Environmental Protection Agency’s e-Manifest management platform for hazardous waste generators. In 2018, the year this program was announced by the department, the department spent $991,092 on hazardous waste management and surveillance. Separately, the department monitors and regulates tire recycling and disposal activities through the Solid Waste Program. To the extent that the State already monitors and regulates tire recycling and disposal activities through the Department of Environmental Protection’s Solid Waste Program, which enforces State laws and regulations related to the proper management of tires, the development costs will be reduced. The department’s Bureau of Solid Waste Compliance and Enforcement manages the Statewide Tire Project, which addresses inspections, compliance assistance, and enforcement at illegal tire dumps, exempt scrap tire facilities, and Class B Approvals at facilities that receive scrap tires.
For New Jersey to develop a similar system, either through custom software development or modification of a commercial regulatory tracking product, the OLS estimates one-time development costs up to $1 million. These costs would reflect system design work, database creation, development of manifesting and reporting modules, user interface development, cybersecurity integration, and testing. After implementation, the department would incur annual maintenance expenses, including system hosting, software updates, technical support, and ongoing system improvements. The OLS estimates that these recurring operating costs would likely range from $250,000 to $500,000 per year, depending on the scale of usage, enforcement tools incorporated, and whether the department relies on in-house or contracted technical support. As mentioned, these costs could be lower depending on the extent to which the State already monitors and regulates tire recycling and disposal activities through the Department of Environmental Protection’s Solid Waste Program.
In addition to information technology expenses, the department will likely require additional staffing to manage the scrap tire licensing and permitting programs established under the bill. Responsibilities would include processing applications, reviewing financial assurance materials, coordinating data entry and manifest oversight, communicating with licensees and permitted facilities, conducting compliance reviews, and supporting enforcement actions. The OLS anticipates that the department would require at least one full-time staff member to administer the program. The full salary, including benefits, for such a position would likely fall within a range of $100,000 to $140,000 annually. If the number of licensees or permitted sites is high, or if enforcement demands increase, the department may require additional staff or contractual support, which would increase recurring expenditures.
Although the bill authorizes the department to establish application fees for licenses and permits, as well as annual licensing and permitting fees sufficient to cover the cost of administering and enforcing the programs, the OLS cannot determine whether fee revenue will fully offset annual operating expenses without knowing the number of entities that will seek licensure or permitting. The bill also authorizes civil administrative penalties and civil penalties, which could result in additional State revenue depending on compliance levels and enforcement activity; however, penalty revenue is unpredictable. Finally, to the extent that stronger oversight of tire hauling reduces illegal dumping or abandoned tire stockpiles, counties and municipalities may experience long-term savings associated with fewer cleanup or remediation actions, although these savings are likewise indeterminate at this time.
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Section: |
Environment, Agriculture, Energy, and Natural Resources |
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Analyst: |
Senior Fiscal Analyst |
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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.).