A2406

An Act concerning the regulation of scrap metal facilities as recycling centers, amending various parts of the statutory law, and supplementing Title 13 of the Revised Statutes.

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

1. Section 2 of P.L.1987, c.102 (C.13:1E-99.12) is amended to read as follows:

2. As used in sections 1 through 24 and sections 40 and 41 of P.L.1987, c.102 (C.13:1E-99.11 through 13:1E-99.32 and 13:1E-99.33 and 13:1E-99.34):

"Agricultural or horticultural land" means land deemed actively devoted to agricultural or horticultural use pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.);

"Beverage" means milk, alcoholic beverages, including beer or other malt beverages, liquor, wine, vermouth and sparkling wine, and nonalcoholic beverages, including fruit juice, mineral water and soda water and similar nonalcoholic carbonated and noncarbonated drinks intended for human consumption;

"Beverage container" means an individual, separate, hermetically sealed, or made airtight with a metal or plastic cap, bottle or can composed of glass, metal, plastic or any combination thereof, containing a beverage;

"Commingled" means a combining of nonputrescible source separated recyclable materials for the purpose of recycling;

"County" means any county of this State of whatever class;

"Department" means the Department of Environmental Protection;

"Designated recyclable materials" means those recyclable materials, including metal, glass, paper, or plastic, polycoated paperboard packaging, including beverage containers and aseptic packaging, food waste, corrugated and other cardboard, newspaper, magazines, or high-grade office paper designated in a district recycling plan to be source separated in a municipality pursuant to section 3 of P.L.1987, c.102 (C.13:1E-99.13);

"Disposition" or "disposition of designated recyclable materials" means the transportation, placement, reuse, sale, donation, transfer or temporary storage for a period not exceeding six months of designated recyclable materials for all possible uses except for disposal as solid waste;

"District" means a solid waste management district as designated by section 10 of P.L.1975, c.326 (C.13:1E-19), except that, as used in the provisions of P.L.1987, c.102 (C.13:1E-99.11 et seq.), "district" shall not include the Hackensack Meadowlands District;

"District recycling plan" means the plan prepared and adopted by the governing body of a county and approved by the department to implement the State Recycling Plan goals pursuant to section 3 of P.L.1987, c.102 (C.13:1E-99.13);

"Leaf composting facility" means a solid waste facility which is designed and operated solely for the purpose of composting leaves and shall also include leaf mulching operations on land deemed actively devoted to agricultural or horticultural use as defined in section 5 of P.L.1964, c.48 (C.54:4-23.5);

"Market" or "markets" means the disposition of designated recyclable materials;

"Municipality" means any city, borough, town, township or village situated within the boundaries of this State;

"Municipal solid waste stream" means all residential, commercial and institutional solid waste generated within the boundaries of any municipality;

"Paper" means all paper grades, including but not limited to, newspaper, corrugated and other cardboard, high-grade office paper, fine paper, bond paper, offset paper, xerographic paper, mimeo paper, duplicator paper, and related types of cellulosic material containing not more than 10[%] percent by weight or volume of non-cellulosic material such as laminates, binders, coatings, or saturants;

"Paper product" means any paper items or commodities, including but not limited to, paper napkins, towels, construction material, toilet tissue, paper and related types of cellulosic products containing not more than 10[%] percent by weight or volume of non-cellulosic material such as laminates, binders, coatings, or saturants;

"Plastic container" means any formed or molded and hermetically sealed, or made airtight with a metal or plastic cap, rigid container with a minimum wall thickness of not less than 0.010 inches, and composed primarily of thermoplastic synthetic polymeric material;

"Post-consumer waste material" means any finished product generated by a business or consumer which has served its intended end use, and which has been separated from solid waste for the purposes of collection, recycling and disposition and which does not include secondary waste material;

"Recognized academic institution" means any of the following educational or research institutions located in this State: a duly authorized institution of higher education licensed by the Board of Higher Education; a public school operated by a local school district; a private vocational school; or a nonpublic school satisfying the State's compulsory attendance requirements;

"Recyclable material" means those materials which would otherwise become solid waste, and which may be collected, separated or processed and returned to the economic mainstream in the form of raw materials or products;

"Recycled paper" means any paper having a total weight consisting of not less than 50[%] percent secondary waste paper material and with not less than 10[%] percent of its total weight consisting of post-consumer waste material;

"Recycled paper product" means any paper product consisting of not less than 50[%] percent secondary waste paper material and with not less than 10[%] percent of its total weight consisting of post-consumer waste material;

"Recycled product" or "product made from recycled material" means any nonpaper item or commodity which is manufactured or produced in whole or in part from post-consumer waste material;

"Recycling" means any process by which materials which would otherwise become solid waste are collected, separated, or processed and returned to the economic mainstream in the form of raw materials or products;

"Recycling center" means any facility designed and operated solely for receiving, storing, processing or transferring source separated recyclable materials; [except that "recycling center" shall not include a scrap processing facility;]

"Recycling services" means the services provided by persons engaging in the business of recycling, including the collection, transportation, processing, storage, purchase, sale or disposition, or any combination thereof, of recyclable materials;

["Scrap processing facility" means a commercial industrial facility designed and operated for receiving, storing, processing and transferring source separated, nonputrescible ferrous and nonferrous metal, which materials are purchased by the owner or operator thereof, and which are altered or reduced in volume or physical characteristics onsite by mechanical methods, including but not limited to baling, cutting, torching, crushing, or shredding, for the purposes of resale for remelting, refining, smelting or remanufacturing into raw materials or products;]

"Scrap metal" means ferrous and non-ferrous metal objects or products, including, but not limited, to ferrous and non-ferrous metal parts, pieces, sheets, panels, beams, girders, posts, tubes, rails, regardless of size, form, or fabrication, including appliances, vehicles, and their component parts, which, when worn or superfluous, are salvaged and recycled. "Scrap metal" does not include residues generated from smelting and refining operations, such as drosses, slags, and sludges; liquid wastes that contain metals, such as spent acids, spent caustics, or other solutions; liquid metal wastes, such as liquid mercury; or metal-containing wastes with a significant liquid component, such as spent batteries;

“Scrap metal facility” means any commercial industrial facility that receives, stores, transfers, or processes scrap metal, including those that alter or reduce the volume or physical characteristics of scrap metal by mechanical methods, including, but not limited to baling, cutting, torching, crushing, or shredding, for purposes of recycling, resale, or reuse, including for remelting, refining, smelting, or remanufacturing into raw materials or products, and includes what is commonly known as a scrapyard or junkyard;

"Secondary waste material" means waste material generated after the completion of a manufacturing process;

"Secondary waste paper material" means paper waste generated after the completion of a paper making process, such as envelope cuttings, bindery trimmings, printing waste, cutting and other converting waste, butt rolls and mill wrappers; except that secondary waste paper material shall not include fibrous waste generated during the manufacturing process, such as fibers recovered from waste water or trimmings of paper machine rolls, fibrous byproducts of harvesting, extractive or woodcutting processes, or forest residue such as bark, or mill broke;

"Source separated recyclable materials" means recyclable materials which are separated at the point of generation by the generator thereof from solid waste for the purposes of recycling;

"Source separation" or "source separated" means the process by which recyclable materials are separated at the point of generation by the generator thereof from solid waste for the purposes of recycling; and

"Vegetative waste composting facility" means a solid waste facility which is designed and operated for the purpose of composting leaves, either exclusively or in combination with other vegetative wastes authorized by the department.

(cf: P.L.1994, c.122, s.1)

2. Section 1 of P.L.1991, c.94 (C.13:1E-199) is amended to read as follows:

1. As used in [this act] P.L.1991, c.94 (C.13:1E-199 et seq.):

"Distributor" means a person who sells lead acid batteries at wholesale to retailers in this State, including any manufacturer who engages in these sales;

"Lead acid battery" means a lead acid electric storage battery designed for use in motor vehicles, aviation equipment or marine vessels;

"Manufacturer" means a person producing lead acid batteries for sale to distributors or retailers or consumers;

"Recycling" means [any process by which solid waste materials are collected, separated or processed and returned to the economic mainstream in the form of raw materials or products] the same as the term is defined in section 2 of P.L.1987, c.102 (C.13:1E-99.12);

"Retailer" means a person engaged in the sale of lead acid batteries to any person at retail and includes any manufacturer or distributor engaging in retail sales, except that "retailer" shall not include a person engaged in the sale of new motor vehicles;

"Scrap [processing] metal facility" [means a commercial industrial facility designed and operated for receiving, storing, processing and transferring source separated, nonputrescible ferrous and nonferrous metal, which materials are purchased by the owner or operator thereof, and which are altered or reduced in volume or physical characteristics onsite by mechanical methods, including but not limited to baling, cutting, torching, crushing, or shredding, for the purposes of resale for remelting, refining, smelting or remanufacturing into raw materials or products] means the same as the term is defined in section 2 of P.L.1987, c.102 (C.13:1E-99.12); and

"Solid waste container" means a receptacle, container or bag suitable for the depositing of solid waste.

(cf: P.L.1991, c.94, s.1)

3. Section 2 of P.L.1991, c.94 (C.13:1E-200) is amended to read as follows:

2. No person shall dispose of a used lead acid battery as solid waste at any time. Any person seeking to discard a used lead acid battery may deliver the used lead acid battery to:

a. a retailer of lead acid batteries, or a distributor or manufacturer engaged in the sale at wholesale of lead acid batteries;

b. a secondary lead smelter;

c. a scrap [processing] metal facility at which used lead acid batteries are received, stored, processed or transferred for the purposes of recycling; or

d. a household hazardous waste collection site established pursuant to a county household hazardous waste collection program.

(cf: P.L.1991, c.94, s.2)

4. Section 3 of P.L.1991, c.94 (C.13:1E-201) is amended to read as follows:

3. a. Every retailer, including every distributor or manufacturer offering lead acid batteries for sale at wholesale, upon presentation at any time during business hours from a member of the public, shall accept any used lead acid battery if the battery is offered as part of an exchange related to the sale of a new lead acid battery.

b. No retailer shall dispose of a used lead acid battery as solid waste at any time. Any retailer may return used lead acid batteries accepted from the public directly to the distributor. A retailer may arrange for the pickup and proper recycling of used lead acid batteries with:

(1) a secondary lead smelter;

(2) a scrap [processing] metal facility at which used lead acid batteries are received, stored, processed or transferred for the purposes of recycling; or

(3) a household hazardous waste collection site established pursuant to a county household hazardous waste collection program.

(cf: P.L.1991, c.94, s.3)

5. Section 4 of P.L.1991, c.94 (C.13:1E-202) is amended to read as follows:

4. a. No distributor or his agent may refuse to accept any used lead acid battery returned to the distributor or his agent from any retailer in the distributor's service area. Whenever a retailer or group of retailers receives a shipment or consignment of, or in any manner acquires, lead acid batteries from any distributor outside of New Jersey for sale to consumers in New Jersey, the retailer or retailers shall be subject to the provisions of [this act] P.L.1991, c.94 (C.13:1E-199 et seq.) as if they were distributors as well as retailers.

b. No distributor shall dispose of a used lead acid battery as solid waste at any time. Any distributor may return used lead acid batteries accepted from a retailer directly to the manufacturer. A distributor may arrange for the pickup and proper recycling of used lead acid batteries with:

(1) a secondary lead smelter;

(2) a scrap [processing] metal facility at which used lead acid batteries are received, stored, processed or transferred for the purposes of recycling; or

(3) a household hazardous waste collection site established pursuant to a county household hazardous waste collection program.

(cf: P.L.1991, c.94, s.4)

6. Section 5 of P.L.1991, c.94 (C.13:1E-203) is amended to read as follows:

5. No manufacturer may refuse to accept any used lead acid battery from any distributor. Every manufacturer producing lead acid batteries for distribution or sale in this State shall provide for the proper recycling of used lead acid batteries returned pursuant to [this act] P.L.1991, c.94 (C.13:1E-199 et seq.). A manufacturer may arrange for the transportation of used lead acid batteries to:

a. a secondary lead smelter permitted by the United States Environmental Protection Agency; or

b. any scrap [processing] metal facility that accepts used lead acid batteries for recycling.

(cf: P.L.1991, c.94, s.5)

7. Section 9 of P.L.1991, c.94 (C.13:1E-207) is amended to read as follows:

9. a. The Department of Environmental Protection shall establish a means of addressing consumer complaints and a public education program to assure the widespread dissemination of information concerning the purpose of [this act] P.L.1991, c.94 (C.13:1E-199 et seq.).

b. The department shall have the right to enter, at any time during normal business hours and upon presentation of appropriate credentials, any recycling center as defined in section 2 of P.L.1987, c.102 (C.13:1E-99.12), or any retail establishment or scrap [processing] metal facility at which used lead acid batteries are received, stored, processed or transferred for the purposes of recycling, in order to determine compliance with the provisions of [this act] P.L.1991, c.94 (C.13:1E-199 et seq.).

(cf: P.L.1991, c.94, s.9)

8. Section 4 of P.L.2007, c.311 (C.13:1E-96.5) is amended to read as follows:

4. a. (1) Beginning on April 1, 2008, there is levied upon the owner or operator of every solid waste facility a recycling tax of $3.00 per ton on all solid waste accepted for disposal or transfer at the solid waste facility.

The recycling tax shall not be imposed on solid waste transported from an in-State transfer station from which the recycling tax has been levied on the owner or operator thereof to an in-State solid waste facility for final disposal.

(a) The recycling tax shall not be imposed on the owner or operator of a railroad transfer station or other facility designed exclusively to transport waste on railroads.

(b) The recycling tax shall not be imposed on the owner or operator of a sanitary landfill facility for the acceptance for disposal of the ash residue resulting from the incineration of solid waste at a resource recovery facility.

(c) The recycling tax shall not be imposed on the owner or operator of a solid waste facility for the acceptance for disposal of solid waste originating from out-of-State sources under a contract awarded prior to December 31, 2007 if the contract does not include a change-in-law or similar mechanism by which the recycling tax imposed by this section may be passed through as a fee or surcharge on the rates and charges set forth in the contract.

(d) The recycling tax shall not be imposed on the owner or operator of a resource recovery facility for the acceptance for disposal of solid waste originating from in-State sources under a contract awarded prior to December 31, 2007 if the contract does not include a change-in-law or similar mechanism by which the recycling tax imposed by this section may be passed through as a fee or surcharge on the rates and charges set forth in the contract.

The recycling tax shall be imposed on the owner or operator of a solid waste facility for the acceptance for disposal of solid waste originating from out-of-State sources under any contract awarded after December 31, 2007.

(2) Beginning on April 1, 2008, there is levied upon every solid waste collector that transports solid waste for transshipment or direct transportation to an out-of-State disposal site a recycling tax. The recycling tax shall be levied on the solid waste collector at the rate of $3.00 per ton on all solid waste collected for transportation to a railroad transfer station or other facility designed to transport waste on railroads or directly to an out-of-State disposal site.

b. (1) Every person subject to the recycling tax shall, by April 1, 2008, register with the director on forms prescribed by the director.

(2) Every person subject to the recycling tax shall, on or before July 20, 2008, and quarterly thereafter with returns due the 20th day of the first month following the end of the quarter, render a return under oath to the director, on such forms as may be prescribed by the director, indicating the number of tons of solid waste accepted for disposal or transfer, or collected, as appropriate, and at that time shall pay the full amount due.

c. If a return required by this section is not filed, or if a return when filed is incorrect or insufficient in the opinion of the director, the amount due shall be determined by the director from such information as may be available. Notice of the determination shall be given to the person subject to the recycling tax. The determination shall finally and irrevocably fix the amount due, unless the person on whom it is imposed, within 90 days after the giving of the notice of the determination, shall file a protest in writing as provided in R.S.54:49-18 and request a hearing, or unless the director on the director's own motion shall redetermine the same. After the hearing the director shall give notice of the determination to the person on whom the recycling tax is imposed.

d. Any person subject to the recycling tax who fails to file a return when due or to pay any tax when it becomes due, as herein provided, shall be subject to such penalties and interest as provided in the "State Uniform Tax Procedure Law," R.S.54:48-1 et seq. If the director determines that the failure to comply with any provision of this section was excusable under the circumstances, the director may remit that part or all of the penalty as shall be appropriate under the circumstances.

e. The director shall deposit all revenues collected pursuant to this section in the State Recycling Fund established pursuant to section 5 of P.L.1981, c.278 (C.13:1E-96).

f. In addition to the other powers granted to the director in this section, the director is authorized:

(1) To delegate to any officer or employee of the division those powers and duties as the director deems necessary to carry out efficiently the provisions of this section, and the person to whom the power has been delegated shall possess and may exercise all of these powers and perform all of the duties delegated by the director;

(2) To prescribe and distribute all necessary forms for the implementation of this section.

g. (1) Every owner or operator of a solid waste facility may collect the recycling tax imposed by this section by (a) including the amount of recycling tax due as a separate line item on every customer bill or other statement presented to a solid waste collector or solid waste generator; (b) including the amount of recycling tax due as a fee or surcharge on any amount collected under a contract awarded pursuant to the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) or any other law for the provision of solid waste collection or solid waste disposal services; or (c) imposing an automatic surcharge on any tariff established pursuant to law for the solid waste disposal or transfer operations of the solid waste facility.

(2) Every solid waste collector is hereby authorized to calculate, charge and collect rates, fees or surcharges from all solid waste generators serviced by the solid waste collector sufficient to recover the recycling tax collected by the owner or operator of the solid waste facility.

(3) Every solid waste collector subject to the recycling tax is hereby authorized to calculate, charge and collect rates, fees or surcharges from all solid waste generators serviced by the solid waste collector sufficient to recover the recycling tax imposed by this section.

h. The recycling tax imposed by this section shall be governed in all respects by the provisions of the "State Uniform Tax Procedure Law," R.S.54:48-1 et seq., except only to the extent that a specific provision of this section may be in conflict therewith.

i. (1) The recycling tax imposed by this section shall not be imposed on the owner or operator of a materials recovery facility for the acceptance of Type 13C Construction and Demolition waste, provided that the facility meets or exceeds recyclable materials extraction rates as established by the department.

(2) The recycling tax imposed by this section shall not be imposed on a solid waste collector or the owner or operator of a solid waste facility for the collection or acceptance for disposal or transfer of residue resulting from the operations of a scrap [processing] metal facility as defined in section 2 of P.L.1987, c.102 (C.13:1E-99.12).

j. The recycling tax imposed by this section shall not be imposed on a solid waste collector or the owner or operator of a solid waste facility for the collection or acceptance for disposal or transfer of residue, provided that the residue is generated as a result of the use of post-consumer waste material in the manufacture of a recycled product which constitutes at least 75[%] percent of total annual sales dollar volume of the products manufactured by a manufacturer in this State as determined by the director.

k. The registration issued to any person subject to the recycling tax who violates the provisions of this section may be subject to revocation or suspension pursuant to section 12 of P.L.1970, c.39 (C.13:1E-12).

l. Subsections a. through k. of this section shall be without effect on and after the tenth day following a certification by the Director of the Division of Budget and Accounting in the Department of the Treasury pursuant to subsection b. of section 6 of P.L.2007, c.311 (C.13:1E-96.7).

(cf: P.L.2008, c.6, s.1)

9. (New section) a. The Legislature finds and declares that the scrap metal recycling industry is a longstanding vital component of the State's overall recycling efforts that provides a key service in preventing scrap metal from entering the waste stream.

b. The Legislature further finds and declares that the burden of primarily regulating facilities that receive, store, process, and transfer scrap metal, including, but not limited to, automobiles or other source separated, non-putrescible ferrous and nonferrous metals has been shouldered by municipalities, with the unintended effect of inconsistent operational and environmental controls placed on these facilities throughout the State.

c. The Legislature further finds and declares that this inconsistent regulation has led to instances where scrap metal facilities may present significant public health and safety concerns, including, but not limited to, fires, dust and other airborne contaminants, polluted stormwater discharges, and other potential environmental and public health impacts associated with facility operations, and also creates unnecessary barriers to instituting consistent, Statewide requirements to mitigate these concerns.

d. The Legislature therefore determines that it is in the public interest to require scrap metal facilities to be subject to regulation by the Department of Environmental Protection as recycling centers so that consistent and Statewide oversight may be implemented to minimize adverse impacts to public health and the environment.

10. (New section) As used in sections 11 through 15 of P.L. , c. (C. ) (pending before the Legislature as this bill):

“Department” means the Department of Environmental Protection.

“Recycling center” means the same as the term is defined in section 2 of P.L.1987, c.102 (C.13:1E-99.12).

“Scrap metal” means the same as the term is defined in section 2 of P.L.1987, c.102 (C.13:1E-99.12).

“Scrap metal facility” means the same as the term is defined in section 2 of P.L.1987, c.102 (C.13:1E-99.12).

11. (New section) a. No later than one year after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the owner or operator of each scrap metal facility shall register with the department. The registration shall be submitted in a form and manner to be determined by the department and shall contain:

(1) the name, ownership, contact information, days and hours of operation, and address of the scrap metal facility;

(2) documentation of any local, State, or federal approvals obtained by the scrap metal facility;

(3) the average weight and volume of scrap metal received at the scrap metal facility on a daily basis;

(4) information concerning whether any processing, such as bailing, cutting, torching, crushing, or shredding is conducted at the scrap metal facility; and

(5) a description on the types of materials that are processed at the scrap metal facility.

b. In submitting the registration required pursuant to subsection a. of this section, the operator of a scrap metal facility shall:

(1) certify to the accuracy of the information submitted as a part of the registration process; and

(2) pay a registration fee of $700 to the department.

c. The registration required pursuant to subsection a. of this section shall be renewed annually, except that the department may extend the renewal deadline if the department determines that there is good cause to provide an extension.

d. The department may modify the amount of the registration fee to be imposed pursuant to paragraph (2) of subsection b. of this section through the adoption of rules and regulations, provided that the registration fee only accounts for the reasonable costs of the department in administering the registration of scrap metal facilities pursuant to this section.

e. The department shall use the information received through the registrations required pursuant to subsection a. of this section to establish appropriate regulatory, operational, and management requirements for scrap metal facilities and to determine the appropriate class of recycling center permit, license, or approval that shall be required for scrap metal facility types, except that any scrap metal facility that operates a shredder shall require an individual recycling center permit of the class determined by the department.

12. (New section) a. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, a scrap metal facility shall be subject to the same requirements as a recycling center, as established under applicable State and federal law.

b. In addition to all requirements pertaining to recycling centers, scrap metal facilities that operate shredders to process scrap metal shall:

(1) prevent the accumulation of shredder residue, regardless of source, or scrap material within the confines of the facility of such volumes that would constitute a risk of fire;

(2) put in place sufficient operational controls as necessary to ensure that no ignition sources, including spent batteries and spent or unspent lithium-ion batteries, or other electrical energy storage devices, consisting of one or more individual battery modules or cells, are shredded or otherwise processed;

(3) ensure that any shredder residue on site is situated on an impervious surface, enclosed within a structure, or otherwise covered to prevent liquid runoff or stormwater discharges, and is subject to dust control technologies to limit the dispersal of fugitive dust;

(4) install, maintain, and regularly test an approved fire suppression system, including measures specifically designed to suppress fires that may occur in or around stockpiles or other areas of accumulated scrap metal, or in the vicinity of processing equipment, including shredders. An approved fire suppression system may include alarm systems, infrared heat sensors, fire retardant dispersal systems, fire breaks, as well as sufficient buffer spacing of at least 25 feet in width to facilitate emergency response and vehicle access throughout the facility. The system shall meet the requirements of applicable fire codes and standards, and shall include automatic fire detection and suppression capabilities; and

(5) train staff in the use of the fire suppression system, implemented pursuant to subparagraph (3) of this subsection at least annually and shall certify that installed fire suppression systems have been inspected by local fire officials as part of the facility’s annual reporting requirements.

13. (New section) a. No later than 18 months after the effective date of P.L. , c. (pending before the Legislature as this bill), the department shall establish a program to regulate each scrap metal facility in the State as a recycling center, in compliance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. Subject to the availability of sufficient funds appropriated by the Legislature, the department shall hire new employees as may be deemed necessary by the department to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). All employees hired pursuant to this section shall be subject to the provisions of Title 11A, Civil Service, of the New Jersey Statutes.

c. The department shall include in its annual budget a request to the Governor the moneys necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill). The Legislature shall appropriate the necessary funds to the department for this purpose.

14. (New section) a. A violation of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be considered a violation of the “Solid Waste Management Act,” P.L.1970, c.39 (C.13:1E-1 et seq.), and the Commissioner of Environmental Protection shall have recourse to any of the actions or penalties provided for in section 9 of P.L.1970, c.39 (C.13:1E-9), in order to address the violation.

b. The department shall have the right to enter, at any time during normal business hours and upon presentation of appropriate credentials, the premises of a scrap metal facility in order to determine compliance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. Any person who knowingly makes any false or misleading statement to the department on any registration or other application, record or other document required to be filed or maintained by P.L. , c. (C. ) (pending before the Legislature as this bill) shall, upon conviction, be guilty of a crime of the fourth degree and be subject to a civil administrative penalty of not more than $10,000.

15. (New section) The department shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations, as necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).

16. This act shall take effect immediately.

STATEMENT

This bill would replace the term “scrap processing facility” with “scrap metal facility” under applicable State laws and would require scrap metal facilities to register with Department of Environmental Protection (department) and comply with certain requirements established under the bill.

The bill would amend existing law to remove the exemption to regulation of scrap processing facilities as recycling centers. As defined in the bill, “scrap metal facility” means any commercial industrial facility that receives, stores, transfers, or processes scrap metal, including those that alter or reduce the volume or physical characteristics of scrap metal by mechanical methods, including but not limited to baling, cutting, torching, crushing, or shredding, for purposes of recycling, resale, or reuse, including for remelting, refining, smelting, or remanufacturing into raw materials or products, and includes what is commonly known as a scrapyard or junkyard.

The bill would require, no later than one year after the bill’s effective date, the owner or operator of each scrap metal facility in the State to register with the department and pay a registration fee of $700 to the department. The registration would be required to be renewed annually unless an extension is granted by the department. The department would be required to use the information received through the registrations to establish appropriate regulatory, operational, and management requirements for scrap metal facilities and to determine the appropriate class of recycling center permit, license, or approval that would be required for scrap metal facility types, except that any scrap metal facility that operates a shredder would require an individual recycling center permit of the class determined by the department.

In addition, the bill would establish minimum operational requirements for scrap metal facilities that operate shredders, in addition to all other requirements pertaining to recycling centers. These requirements include, but are not limited to, the prevention of the accumulation of shredder residue or scrap metal that would result in a risk of fire, the placement of shredder residue on impervious surfaces to control stormwater discharges, the enclosure of any shredder residue to prevent dust migration, and the implementation of fire suppression systems and associated training programs and inspection requirements.

No later than 18 months after the bill’s effective date, the department would be required to establish a program to regulate each scrap metal facility in the State as a recycling center, in compliance with the bill’s provisions. The bill would direct the department, subject to the availability of sufficient funds appropriated by the Legislature. to hire new staff to implement the bill’s provisions and provide that the department would be required to include in its annual budget request to the Governor for funding to implement the bill’s provisions.

The bill would provide that a violation of the bill’s provisions would be considered a violation of the “Solid Waste Management Act,” P.L.1970, c.39 (C.13:1E-1 et seq.), provide that the department would have the right to enter and inspect the premises of a scrap metal facility to determine compliance, and establish that an person who knowingly makes any false or misleading statement to the department on any registration or other application, record, or other document required to be filed or maintained by this bill would be guilty of a crime of the fourth degree and be subject to a civil administrative penalty of up to $10,000.