An Act concerning the recycling of food waste, and supplementing P.L.1987, c.102 (C.13:1E-99.11 et seq.).

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

1. This act shall be known and may be cited as the "Food Waste Recycling Act."

2. The Legislature finds and declares that the State has long been a national leader in recycling requiring mandatory source separation and recycling in 1987, and establishing in 1992 aggressive State Recycling Plan goals of 50 percent of the municipal solid waste stream and 60 percent of the total solid waste stream; that the 60 percent recycling goal, which was achieved for several years, steadily declined and was not met again for over 12 years, until 2011; that the municipal solid waste stream recycling rates fluctuate based on the level of State support and assistance provided to municipalities to aid their efforts; and that the current rate of municipal recycling is 40 percent of the waste stream, well below the 50 percent target established in the law.

The Legislature further finds and declares that studies of the composition of the municipal solid waste stream show that food waste comprises as much as 25 percent of solid waste after recyclables are separated; and that targeting food waste for recycling will enable the State to reach its recycling goals.

The Legislature therefore determines that it is in the public interest to support, encourage, and require the recycling of food waste, and to facilitate the development of food waste recycling infrastructure.

3. As used in this act:

"Alternative authorized recycling method" means (1) recycling food waste at the site at which it is generated as authorized by the Department of Environmental Protection, (2) treating food waste at the site at which it is generated pursuant to a permit issued by the department, (3) sending food waste for offsite use for agricultural purposes, including as animal feed, or (4) sending food waste offsite for treatment with sewage sludge in an anaerobic digester for biogas recovery as authorized by the department.

"Approved recycling center" means a recycling center within the State authorized to accept, store, process, or transfer food waste or compostable material pursuant to subsection b. of section 41 of P.L.1987, c.102 (C.13:1E-99.34), or a recycling center outside of the State authorized by the environmental regulatory agency with jurisdiction over environmental permitting to accept food waste for recycling.

"Compostable material" means source separated compostable material which requires prior approval of the department for disposal at an approved recycling center, and includes but is not limited to source separated food waste, source separated biodegradable plastic, source separated yard trimmings, source separated biomass, and lakeweed generated from cleaning aquatic flora from freshwater lakes.

"Department" means Department of Environmental Protection.

"Food waste" means food processing vegetative waste, food processing residue generated from processing and packaging operations, overripe produce, trimmings from food, food product over-runs, or soiled or unrecyclable paper.

"Large food waste generator" means any commercial food wholesaler, distributor, industrial food processor, supermarket, resort, conference center, banquet hall, restaurant, educational or religious institution, military installation, prison, hospital, medical facility, or casino that produces at least 52 tons per year of food waste.

4. a. Beginning January 1, 2015, any large food waste generator that generates at least 104 tons per year of food waste shall send for recycling all food waste to an approved recycling center, or shall recycle food waste using an alternative authorized recycling method, provided that within 35 road miles of the large food waste generator; (1) there is an approved recycling center, or (2) a facility that uses an alternative authorized recycling method, and the recycling center or facility agrees to accept the generator's food waste.

b. Beginning January 1, 2020, all large food waste generators shall send for recycling all food waste to an approved recycling center or shall recycle food waste using an alternative authorized recycling method, provided that within 35 road miles of the large food waste generator; (1) there is an approved recycling center, or (2) a facility that uses an alternative authorized recycling method, and the recycling center or facility agrees to accept the generator's food waste.

c. A large food waste generator may petition the Department of Environmental Protection for a waiver of the requirements in subsection a. or b. of this section if the disposal fee charged for solid waste disposal in the State for noncontract commercial waste by a properly licensed transfer station, sanitary landfill facility, incinerator, or resource recovery facility located within 35 road miles of the large food waste generator is less than the fee charged by an approved recycling center or facility that uses an alternative authorized recycling method within 35 road miles of the large food waste generator.

d. If an approved recycling center or a facility that uses an alternative authorized recycling method is not located within 35 road miles of a large food waste generator, or the recycling center or facility does not agree to accept the generator's food waste, the generator may send the food waste for final disposal at a solid waste facility as provided in the district's approved solid waste management plan.

5. Each large food waste generator shall maintain written records of the total amount of solid waste generated each quarter, and the amount of food waste sent for recycling or recycled onsite each quarter. The large food waste generator shall submit a written quarterly report that summarizes the records to the Department of Environmental Protection on forms developed by the department, and to the county recycling coordinator in the county in which the large food waste generator is located, and the municipal recycling coordinator in the municipality in which the large food waste generator in located.

6. a. Any municipality within which an approved recycling center or facility authorized by the Department of Environmental Protection to accept food waste is located, pursuant to an adopted and approved district solid waste management plan, shall be entitled to an economic benefit of not less than the equivalent of $0.50 per ton of food waste, to be paid and adjusted quarterly, on all food waste accepted for processing at the approved recycling center or other authorized facility during the 2015 calendar year and each year thereafter. The owner or operator of the approved recycling center or other authorized facility shall pay quarterly to the municipality the full amount due under this subsection. The municipality is authorized to anticipate this amount for the purposes of preparing its annual budget.

b. For the purposes of calculating the payments, the owner or operator of the approved recycling center or other authorized facility may, subject to the prior agreement of the municipality and the approval of the Department of Environmental Protection, provide the municipality with any of the following benefits in consideration for the use of land within the municipality's boundaries as the location of an approved recycling center or other authorized facility:

(1) Quarterly payments of money in lieu of taxes on the land used for the approved recycling center or other authorized facility;

(2) Exemption from all fees and charges for the acceptance of food waste for composting, anaerobic digestion, or other processing, as approved by the department, of food waste generated within the municipality's boundaries;

(3) Quarterly lump sum cash payments; or

(4) Any combination thereof.

7. a. There is established in the Department of Environmental Protection a Food Waste Recycling Market Development Council, which shall consist of 12 members. The members shall include the Commissioner of Environmental Protection, the President of the Board of Public Utilities, the Commissioner of Transportation, the Secretary of Agriculture, the State Treasurer, and the Attorney General, or their designees, who shall serve ex officio; and six citizens of the State appointed by the Commissioner of Environmental Protection. Of the appointed members: two shall be actively engaged in the composting industry, of whom one shall be a representative of the United States Recycling Council and one shall be a representative of the Biosolids Council of North America; two shall be actively engaged in the recycling or solid waste collection industry, of whom one shall be a representative of the Association of New Jersey Recyclers; and two shall represent the general public. The Commissioner of Environmental Protection shall appoint the chairperson and the vice-chairperson of the council from the citizen members.

b. Members of the council shall serve without compensation, but shall be reimbursed for expenses incurred in attending meetings and performing their duties to the extent funds are available therefor.

c. Within 18 months after the effective date of this act, the Food Waste Recycling Market Development Council shall prepare a report on the existing markets for any products and energy produced from food recycling facilities, food waste composting facilities, and anaerobic digestion facilities that accept food waste material. The council shall investigate the feasibility of providing preferences for products or energy produced from food recycling facilities, food waste composting facilities, and anaerobic digestion facilities in the State procurement process, including how to stimulate the use in public projects of compost or soil amendment products derived from these facilities. The council shall provide recommendations on changes needed to State laws or rules or regulations to stimulate the market for products and energy produced from food recycling facilities, food waste composting facilities, and anaerobic digestion facilities that accept food waste material. The report shall be transmitted to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature.

8. a. Every State department or agency that engages in landscaping or construction activities on State land, or for State projects or facilities, shall use, where technically feasible, environmentally sound, and competitively priced, compost, mulch, or other soil amendments produced from municipal solid waste, food waste, sludge, yard waste, clean wood waste, or other organic materials. Such compost, mulch, or soil amendments shall be used in place of chemical fertilizers or soil amendments.

b. In purchasing compost, mulch, or other soil amendments for use by the various departments or agencies of State government, the Director of the Division of Purchase and Property in the Department of the Treasury, whenever the price is competitive and the quality satisfactory for the purpose intended, shall make contracts available for compost, mulch, or other soil amendments produced from municipal solid waste, food waste, sludge, yard waste, clean wood waste, or other organic materials.

c. For the purposes of this section, "competitive" or "competitively priced" means a price of no more than 10% above the price of items which are manufactured or produced from virgin materials; except that the Director of the Division of Purchase and Property, upon consultation with the Department of Environmental Protection, may make contracts available for compost, mulch, or other soil amendments produced from municipal solid waste, food waste, sludge, yard waste, clean wood waste, or other organic materials at a price no more than 15% above the price of products manufactured or produced from virgin materials whenever the director determines that a 15% price preference is in the best interest of the State.

9. This act shall take effect immediately.

STATEMENT

This bill would require large volume generators of food waste to send their waste for disposal to an approved recycling center, or recycle food waste using an alternative method, provided that within 35 road miles of the large food waste generator, there is an approved recycling center, or a facility that uses an alternative authorized recycling method, and the recycling center or facility agrees to accept the generator's food waste. The bill would authorize a large food waste generator to apply to the Department of Environmental Protection (DEP) for a waiver from the recycling requirement if the disposal fee for noncontract solid waste disposal is less than the fee charged to recycle the food waste. The bill also allows a large food waste generator to send food waste for disposal if there is no facility within 35 road miles authorized and willing to accept the generator's food waste for recycling. The bill requires large food waste generators to maintain and send written quarterly reports of the amount of solid waste generated and the amount of food waste sent for recycling or recycled onsite, to the DEP and the appropriate county and municipal recycling coordinators.

The bill provides for a local economic benefit payment to any municipality that hosts a facility approved to accept food waste. Further, the bill establishes in the DEP a Food Waste Recycling Market Development Council that is required within 18 months of the effective date of the bill to report on existing markets for products and energy produced from food recycling, the feasibility of providing preferences for products or energy produced from food recycling in the State procurement process, and how to stimulate the use in public projects of compost or soil amendments derived from food recycling. The council is also required to provide recommendations on changes needed to State laws, rules or regulations to stimulate the market for products or energy produced from food recycling.

Finally, the bill requires every State department or agency that engages in landscaping or construction activities on State land, or for State projects or facilities, to use, where technically feasible, environmentally sound, and competitively priced, compost, mulch, or other soil amendments produced from municipal solid waste, food waste, sludge, yard waste, clean wood waste, or other organic materials.