As New Jersey families brace for energy bills projected to rise by 20% this summer, the Legislature is advancing a proposal that could add even more financial pressure. The Chamber of Commerce Southern New Jersey (CCSNJ) has expressed serious concerns over Senate Bill 3398 and Assembly Bill 5009, the “Packaging Product Stewardship Act,” which seeks to implement an Extended Producer Responsibility (EPR) program for packaging materials.

According to a new economic study commissioned by CCSNJ, the legislation would result in an estimated $323.5 million annual cost increase for producers, translating to more than $1 billion in added consumer costs each year, or approximately $1,649 per household over five years. These added costs come at a time when inflation, energy prices, and other living expenses continue to rise across the state.

“New Jersey families are hurting financially, and this is not the time to make their lives even more expensive,” said Christina Renna, president of the Chamber of Commerce Southern New Jersey. “We urge lawmakers to consider the real impact on working families and businesses already stretched thin.” 

While CCSNJ supports the principles of EPR and environmental responsibility, the legislation, as written, raises several red flags. The proposal would prohibit the inclusion of feedstocks derived from advanced recycling in meeting recycling goals. It will impose unrealistic plastic reduction targets and add unrelated chemical bans through amendments to New Jersey’s Toxics in Packaging law, potentially removing essential products from store shelves.

Renna continued, “This bill goes well beyond traditional EPR. Instead of a thoughtful, data-driven approach, it imposes sweeping mandates that will raise costs across the board. A statewide needs assessment should be the first step before enacting a program of this scale.”

Assemblyman Bill Spearman (D-5) has sponsored such legislation. A-4902 directs the Department of Environmental Protection to perform a comprehensive statewide assessment and establish the “Statewide Recycling Needs Assessment Advisory Council.” CCSNJ strongly supports this approach as a necessary foundation for a well-designed and effective EPR framework.

The York University study commissioned by CCSNJ reinforces the need for caution. In addition to the annual $1 billion consumer impact, the report warns that unchecked cost increases could suppress consumer spending and harm small businesses statewide.

York Impact Study Conclusions: 

The direct financial burden on producers is estimated at $323.53 million annually, based on the medium-cost scenario modeled in this study. When factoring in the consumer spending multiplier effect, conservatively assumed at 3x, the total economic impact escalates to $1.035 billion per year. Over five years, this translates to a per-household cost of approximately $1,649.93. These costs stem from producer obligations to fund the collection, recycling, and disposal of packaging materials, as well as associated administrative and educational expenses. 

While EPR holds promises for advancing sustainability, its implementation in New Jersey requires a nuanced strategy. A holistic policy approach, informed by economic modeling and stakeholder engagement, is essential to harmonizeenvironmental objectives with economic stability. By addressing the projected $1.035 billion annual impact and its disproportionate effects on consumers and small businesses, New Jersey can pursue a path that benefits both its environment and its economy.