As markets suffer, states look at mandating recycled content

As state governments grapple with how to bolster weak markets for recycled plastics and other materials, they're increasingly looking at laws requiring companies to use recycled content in packaging.

New Jersey, for example, is considering new legislation that would be among the strictest in the country in mandating recycled plastic in a wide range of beverage bottles, rigid containers, trash bags and carryout bags, along with recycled content in glass and paper packaging.

It mirrors actions underway in other states, particularly around plastic bottles.

The legislature in Washington state, for example, passed a law in March mandating recycled plastic in beverage bottles, starting at 10 percent and rising to 50 percent. Gov. Jay Inslee vetoed it, however, arguing that with coronavirus raging and revenues falling, it was not the time to consider such a plan.

Similarly, California passed a recycled content law for plastic bottles last year, but Gov. Gavin Newsom vetoed it, saying it was not strict enough.

Now New Jersey is taking it up. The bill's sponsor, Sen. Bob Smith, D-Middlesex, said legal mandates are needed to help make recycling economical for city governments and to deal with the fallout of China's 2017 decision to stop importing materials for recycling.

"The point of it is to get as much of this stuff out of landfill and the environment as possible and also to create markets for recycled materials, so that our recycling becomes more economically feasible," said Smith, who is head of the state Senate's Environment and Energy Committee.

"Since China has shut down being the dump of the world, we now have these materials either building up in locations, or municipal governments are paying higher and higher tipping fees."

The legislation would set targets for plastic, glass and paper packaging, with some supporters saying it would include the most ambitious plastic packaging requirement in the country.

It would, for example, require 35 percent recycled content in rigid plastic containers in 2022. Plastic beverage bottles would need 10 percent recycled content in 2022, 25 percent in 2026 and 50 percent in 2031.

Plastic trash bags would need to have 10 percent recycled content by 2022, and reusable plastic carryout bags would need 20 percent recycled content by 2022 and 40 percent by 2025.

The bill would allow companies to request waivers for technical issues or if they can't find enough recycled materials. It exempts refillable containers and packaging for hazardous materials, as well as banning loose fill expanded polystyrene packaging in 2022.

Environmental groups supported the measure and urged a focus on waste prevention in addition to recycling.

"Requiring recycled content in packaging is one of many steps toward the extended producer responsibility we that need, but it's not a waste prevention policy," Maura Toomey, a policy coordinator with Clean Water Action's New Jersey office, said.

The broad reach of the legislation means it will face a lot more debate, with industry officials at the June 17 hearing raising a number of objections to specific provisions, while also supporting the goals of the bill. They noted voluntary industry efforts to boost recycled content.

"While we're supportive of the use of recycled content … we believe that as written this bill won't actually achieve the stated goals of the legislation," said Brennan Georgianni, manager of state government affairs with the Plastics Industry Association. "However, we would like to work with you to craft a policy solution that will drive the use of recycled content."

He said there's not enough recycled material available to meet goals like the 35 percent requirement for rigid containers. And Georgianni noted industry support for research at municipal recycling facilities in Pennsylvania and Oregon to pull more plastic from recycling streams.

"We point to these technologies to be replicated in New Jersey in order to bring more recycled content to market," he said.

The American Chemistry Council said it was "very encouraged by the intent of this bill" but raised concerns around whether the legislation would encourage deselection to materials with higher overall environmental impacts than plastics.

Solutions need to consider new technologies like chemical recycling, which industry groups also call advanced recycling.

"Infrastructure needs to be put into place to ensure a stable, high-quality supply," Adam Peer, senior director of packaging at ACC's plastics division, said. "One of the ways to achieve the bill's manifest goals is to modernize state laws to better recognize advanced recycling as manufacturing."

Industry groups such as packaging trade association Ameripen praised the bill for allowing source reduction to count toward its environmental goals, although some other groups raised concerns about that.

While plastics and other industry groups raised concerns, waste and recycling companies in New Jersey support legally mandated recycled content.

"Content legislation is exactly what's needed to address the international market disruptions," said Gary Sondermeyer, vice president of operations at Bayshore Recycling Corp. and a representative of the Association of New Jersey Recyclers.

"We feel that [the bill] represents the most significant legislative blueprint for market development in the history of recycling in the state of New Jersey since our mandatory law 33 years ago," he said.

He noted that New Jersey's requirements for plastic beverage bottles mirror that in California's legislation that passed last year, with 50 percent recycled content required in 10 years.

The National Waste and Recycling Association, which represents private sector waste and recycling companies, also gave strong support.

"Minimum content is essential; we need markets for the material we collect," said Steve Changaris, northeast regional manager for NW&RA. "You've heard there are issues ... but at some point we have to be aspirational and look forward."

"With the loss of China and international markets, it's problematic for us," he said.

Given the broad nature of the bill, it seems likely to face considerable debate. But there was also a push in some quarters to move quickly.

Sen. Richard Codey, D-Livingston, and a former governor, urged his colleagues at the hearing to "get going on this sooner rather than later."

Legislatures around the country have been consumed in recent months with handling coronavirus, and New Jersey is no exception.

A representative of the New Jersey Chamber of Commerce urged lawmakers to consider the difficulties businesses face in the pandemic's economic crisis. The chamber also said state government faces an "extremely challenging" budget.

Plastics industry officials have argued that the pandemic has given the public more appreciation of the health and safety benefits of plastics packaging.

But some in New Jersey argued that even with the virus and tough economic times, the state should push ahead on plastics and recycling legislation.

"We believe that even in the wake of the absolutely devasting economic impacts of COVID-19, that we really need to be looking forward like this [bill]," said Sondermeyer of New Jersey Recyclers Association, who said the bill was a "very, very bold step."

Smith, the bill's sponsor, said he hoped the Legislature would take up another piece of plastics legislation as one of its first actions when it no longer is dominated by coronavirus concerns.

The state Senate in early March passed a bill banning single-use plastic and paper bags and EPS packaging.

Environmental groups told the hearing that they support the recycled content legislation but do not want it to replace the bag and EPS packaging ban. Smith agreed and wanted to make the bag bill a priority when legislators return to more normal business.

"I'm hoping that when we as a Legislature have an opportunity to start focusing on some non-COVID issues, that the plastic bag [ban] becomes one of the first things that we do," Smith said.