CSG Law Environmental Blog: Proposed Assembly Bills Would Increase Scrutiny of Scrap Metal Facilities
The New Jersey General Assembly recently introduced two bills that would require scrap metal facilities to register with the New Jersey Department of Environmental Protection (NJDEP) and impose new operational and fire-safety obligations on facility owners and operators. The legislative push by the Assembly appears to be in response to a series of high-profile fires that have occurred at scrap metal facilities and reflects growing legislative scrutiny of scrap metal facilities.
Historically, scrap metal facilities have operated with limited oversight from the State, allowing operators to avoid the stricter permitting and inspection requirements that are imposed on other solid waste facilities by the NJDEP. The NJDEP estimates that there are approximately 440 scrap metal facilities that operate throughout the State.
Assembly Bill No. 2406-Requires NJDEP to Regulate Scrap Metal Facilities as Recycling Facilities:
On March 16, 2026, the Assembly Environment and Solid Waste Committee reported and referred Assembly Bill 2406 to the Assembly Appropriations Committee. This new legislation proposes replacing the term “scrap processing facility” with the term “scrap metal facility” in addition to requiring scrap metal facilities to register with the NJDEP and eliminating the exemption for these facilities from NJDEP regulations. The bill broadly defines “scrap metal facility” to include any commercial industrial facility that receives, stores, transfers, or processes scrap metal for recycling, resale, or reuse and includes what is commonly known as a scrapyard or junkyard.
The bill would also require the owner or operator of a scrap metal facility to register annually with the NJDEP and pay a registration fee of $700 to the NJDEP within one year of the enactment of the bill. Within 18 months, the NJDEP will be required to establish a program to regulate these facilities as recycling centers, with specific operational requirements for facilities using shredders, including (1) prevention of the accumulation of shredder residue or scrap metal that would result in a risk of fire, (2) placement of shredder residue on impervious surfaces to control stormwater discharges, (3) enclosure of any shredder residue to prevent dust migration, and (4) implementation of fire suppression systems and associated training programs and inspection requirements.
Noncompliance with the bill’s provisions would be considered a violation of the Solid Waste Management Act (SWMA). The NJDEP would have the authority to conduct site inspections of these facilities to ensure compliance with the SWMA and its implementing regulations. Notably, any person who knowingly makes any false or misleading statement to the NJDEP on any registration or other application, record, or other document required to be filed or maintained would be guilty of a crime of the fourth degree and be subject to a civil administrative penalty of up to $10,000. The bill directs the NJDEP to seek legislative appropriations to increase staffing to implement these provisions. The bill has not been introduced in the Senate yet.
Assembly Bill No. 2401- Establishes Safety Measures for Scrap Metal Facilities:
The second bill, A2401, was passed by the full Assembly on March 23, 2026. The proposed legislation would require scrap metal facilities to (1) implement emergency safety measures to prevent fires, including the installation of heat detection equipment capable of identifying fires at an early stage, (2) prepare fire safety plans in conjunction with local fire departments, and (3) limit the height of scrap material piles to not exceed 55 feet. For facilities with stockpiles of unprepared metal exceeding 200 tons, a remotely operated fire suppression system is also required, which must include overhead systems, and monitor heat detection for stockpiles of 500 tons or more. Those facilities would also be required to obtain annual certification by a fire safety engineer and the Division of Community Affairs to ensure compliance with fire prevention standards. A companion bill has been introduced in the Senate and is currently awaiting further action.
If these bills are enacted, scrap metal facility owners and operators should anticipate heightened regulatory oversight, new permitting and registration obligations, and the potential for significant capital expenditures to ensure compliance with the proposed regulatory framework. CSG Law will continue to monitor the progress of the proposed legislation to determine how to best assist our clients.
For more information on this topic, please contact the author of this article or the CSG Law Environmental Group.