THE
MARKETING OF RECYCLABLE MATERIALS
This concerns the application of the Local Public Contracts
Law, specifically the meaning of N.J.S.A. 40A:11-5(s), to
the collection of the most common recyclable materials (glass, tin-plated
steel cans, plastic, aluminum, newspaper, corrugated cardboard,
newsprint and various other paper grades) at curbside or from a
contracting unit’s public works’ facility or any other recycling
drop off location operated by the contracting unit. The question is whether the collection at these
locations are part of the 40A:11-5(s) exemption , or subject to
the solicitation of quotations or receipt of bids, depending on
the dollar value.
There is a further question as to the type of facility that
qualifies as an end user or end processor market (“market”) for
the various types of recyclable materials.
Does a facility, which directly receives recyclable materials
from the curbside, or from various recycling drop off locations
operated by the contracting unit qualify as a market?
According to the Bureau of Recycling and Planning (Bureau)
in the State Department of Environmental Protection, recyclable
materials do not necessarily go directly to a market from pick up
at curbside, public works yards, or any other recycling drop off
location operated by the contracting unit. Most local programs in our State take or have
a hauler deliver this type of recyclable materials to a “Class A
Recycling Center.” A Class
A Recycling Center is typically where commingled recyclable materials
are separated by material or grade and otherwise manually or mechanically
processed as required by an end user or transportation specifications.
The material is then ready for shipment to a market. It is at that “market facility” where the actual
conversion to another product(s) takes place.
It is the Bureau’s position that as long as a local contracting
unit finds a Class A Recycling Center for processing as required
by end user or transportation specifications, that facility meets
the requirements of N.J.S.A. 40A:11-5(s) as a market, therefore,
requiring bidding as the basis for a contract is not necessary.
The exception in the law applies even though the Class A
Recycling Center would eventually transport the recyclable materials
as noted above to an actual market.
Class A Recycling Centers are not licensed by the State,
but are subject to the provisions of the Municipal Land Use Law
and the Uniform Construction Code at the local level. However, the State does have regulations regarding
the operations of such centers.
This exception applies only when the collection is done by
contracting unit employees. Conversely,
contracts for curbside pick up by a private hauler or transportation
by a private hauler from a public works yard or any other recycling
drop off location to a Class A Recycling Center or a market would
be subject to either the solicitation of quotations or the receipt
of bids. Both are examples
of a hauling contract and do not fall under the exception.
If
a local contracting unit wishes to establish a recycling program,
or a recycling cooperative program by combining the collection (subject
to the solicitation of quotations or receipt of bids) and marketing
(an exemption from receipt of bids) components, it may do so pursuant
to the provisions of N.J.S.A. 40A:11-5(5).
This provision of law authorizes a negotiated contract process
subject to approval of the Director of the Division of Local Government
Services.
There are other classifications for facilities handling various
types of recyclable materials that meet the exception of N.J.S.A.
40A:11-5(s). The classifications are as follows:
| Class
A. Recycling Center |
Glass,
tin-plated steel cans, plastic, aluminum, newspaper, corrugated
cardboard, newsprint and various other paper grades |
|
Class
B. Recycling Center |
Concrete,
asphalt, tree stumps, tree parts, logs and tires |
|
Class
C. Recycling Center |
Brush,
vegetative growth, leaves and grass |
|
Class
D. Recycling Center |
Electronic
parts (computers), used oil, fluorescent light bulbs and similar
lighting applications |
Materials approved for acceptance at Recycling Centers are
governed by regulations found at N.J.A.C. 7:26A-1.1 et seq.
The regulations may be found on the website at: www.state.nj.us/dep/dshw/resource/rules.
If a local contracting unit concludes that other types of
material (street sweepings, pond sediment, etc.) can qualify under
the “marketing” exemption of N.J.S.A. 40A:11-5(s), it can
apply to the Bureau of Resource Recovery and Technical Programs
in the Division of Solid and Hazardous Waste for a determination.
For more information, visit the Division of Solid and Hazardous
Waste’s website at www.state.nj.us/dep/dshw.
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