Bill
S 3398
New Jersey will require producers to fund and run a statewide packaging and paper product stewardship system aimed at reducing waste, increasing recyclability, and financing upgrad
Status and key dates
- Introduced: June 3, 2024
- Reported with committee substitute: February 10, 2025
- Passed Senate: June 5, 2025
- Passed Assembly (substituted for A4898): June 13, 2025 — Returned to Senate (current status: Returned to Senate)
Purpose
- Establish a producer-funded, statewide product stewardship system to improve end-of-life management of packaging and paper products sold, distributed, or imported into New Jersey. The bill requires producers to plan for source reduction, reuse, recycling, composting, and responsible management of covered materials and creates state oversight, financing, and enforcement mechanisms.
Scope and definitions
- Covers “packaging products” broadly (primary/secondary/tertiary packaging, service packaging, beverage containers, ancillary elements) and “paper products” (primarily wood-pulp or cellulosic fiber products), with enumerated exclusions (e.g., refillable kegs, certain unsafe/unsanitary paper items).
- “Producer” is defined by manufacture, brand owner/licensee, importer, or first distributor into the State (with special rules for remote sales).
Key program elements
- Producer Responsibility Organizations (PROs): Producers must either join a nonprofit PRO (501(c)(3)) or independently develop and implement an approved product stewardship plan. Initially only one PRO may form; from Jan 1, 2029, additional PROs may be approved. Producers must join a PRO within one year of enactment unless they file their own plan.
- Needs assessment: PRO(s) must prepare a statewide needs assessment of recycling and solid-waste infrastructure and regulations (due within two years after enactment) and update it at least every five years; this assessment will guide investments and required system upgrades.
- Stewardship plans and approvals: PROs (or non-participating producers) must submit draft plans for Advisory Council review, incorporate comments, and obtain DEP approval. Plans must include fee structures allocating costs according to environmental burden and procedures for reimbursements to service providers (collectors, processors, composters, etc.).
- Source-reduction and recyclability targets: Examples include staged reductions in single-use plastic packaging relative to baseline — 90% of baseline within 2 years after plan approval, progressively down to 50% by 10 years. By Jan 1, 2034, packaging products sold must be recyclable or compostable; by Jan 1, 2036, statewide recycling rate for packaging must reach at least 65%.
- Exemptions: Enumerated exemptions for small producers (defined by revenue, volume sold, nonprofit/public entity status, or single retail location criteria) and certain product categories (e.g., some medical, drug, or cosmetic packaging).
Governance, enforcement, and support structures
- Office of Plastics and Packaging Management (in DEP) — includes an Inspector General to coordinate enforcement and interagency cooperation.
- Toxic Packaging Task Force — to recommend additional chemicals for regulation under the Toxic Packaging Reduction Act.
- Expanded duties and membership changes for the Advisory Council on Solid Waste Management.
Finance and penalties
- Establishes the Packaging and Paper Reduction and Recycling Fund in Treasury to receive surcharges, penalties, and other revenues.
- Annual statewide surcharge assessed by Division of Taxation on PROs and non-participating producers to fund implementation and grants/loans; total statewide surcharge capped at $120 million per year. Surcharge collections begin 30 months after completion of the statewide needs assessment. Moneys are used for DEP grants/low-interest loans to improve infrastructure, administer and enforce the law, and implement approved plans.
- Civil administrative penalties: $5,000–$10,000 per violation (each day is a separate violation); additional penalties up to $7,500/day for certain toxic-packaging violations.
Fiscal and stakeholder impacts (per Legislative Fiscal Estimate)
- DEP administrative cost: estimated 6–8 additional FTEs, $900,000–$1.2 million annually to staff the new office, review plans, enforce the law, and administer grants.
- State revenue: indeterminate initially; up to $120 million annually beginning roughly in year 5 (after needs assessment and surcharge start).
- Local governments: may incur costs participating in needs assessments and adapting services, but may also receive grants/loans and see long-term savings if waste volumes decline. Consumers and businesses could face higher packaging costs depending on producer responses.
Who is affected
- Producers/manufacturers/brand owners/importers/packagers and retailers (as defined) — must join a PRO or submit independent plans and meet reduction/recyclability targets.
- Recycling and composting service providers — may be contracted/reimbursed under plans and will partner on needs assessments.
- DEP, state/local governments, and taxpayers — involved in oversight, enforcement, and potential funding of system improvements.
Procedural notes and related legislation
- The committee substitute broadened scope to include paper products and added program details. Companion bills: A5009, A4898; prior-session S8888. The bill has moved through committees and both houses, and is currently returned to the Senate for further action.
Compiled from official sources — confirm details with the bill’s official record.
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