NJDEP’s extension of a key Recycled Content Law exemption provides short-term compliance relief while creating uncertainty across recycling markets.
By Daniel T. McKillop, Scarinci Hollenbeck
The New Jersey Department of Environmental Protection (“NJDEP”) has extended a key exemption under New Jersey’s Recycled Content Law, delaying mandatory post-consumer recycled content (“PCR”) requirements for food-contact plastic packaging and containers until January 1, 2030.
The decision, announced just months before the exemption was scheduled to expire, has prompted significant concern among recyclers, recycled resin producers, and industry trade associations, while providing short-term compliance relief for many food and consumer products manufacturers.
Although the extension affects only food-contact packaging, it represents one of the most consequential recycling policy developments in the United States this year because New Jersey’s law has been widely viewed as a major demand driver for recycled plastics and a model for similar legislation in other states.
Background: New Jersey’s Recycled Content Law
In 2021, New Jersey enacted one of the nation’s most aggressive recycled-content mandates through the enactment of P.L. 2021, c.391, codified at N.J.S.A. 13:1E-99.126 through 99.156. The law requires manufacturers of certain plastic, glass, paper, and other packaging products sold or offered for sale in New Jersey to incorporate minimum percentages of post-consumer recycled material. The statute was designed to stimulate end-market demand for recyclable materials, increase investment in domestic recycling infrastructure, and reduce reliance on virgin resin.
A key provision, N.J.S.A. 13:1E-99.144(b), granted a temporary five-year exemption for rigid plastic containers and packaging used in food-contact applications. The Legislature recognized that food-contact materials present unique FDA compliance, product safety, and technical challenges and therefore provided industry with additional time to develop compliant supply chains and processing technologies. That exemption was scheduled to expire on January 18, 2027. Instead, NJDEP has now extended the exemption through December 31, 2029, citing concerns regarding available food-grade PCR supply, technological readiness, and potential impacts on food quality.
What the Food-Contact Packaging Extension Does and Does Not Do
Importantly, NJDEP did not repeal or suspend New Jersey’s recycled-content program. Rather, the agency postponed implementation of PCR requirements for food-contact rigid plastic containers and packaging while leaving the remainder of the law intact. As a result:
- Food-contact rigid plastic containers and packaging remain exempt until January 1, 2030.
- Non-food rigid plastic containers remain subject to the current 10% PCR requirement and are scheduled to increase to 20% PCR in 2027.
- Plastic beverage containers and glass beverage containers filled with beverages remain subject to existing PCR requirements and are unaffected by the extension. They currently require 15% PCR and will increase to 20% in 2027.
- The law’s long-term progression toward substantially higher recycled-content percentages remains unchanged.
NJDEP has also reserved the right to extend the exemption further, as the statute permits.
NJDEP’s Justification
According to NJDEP, the extension was necessary because currently available technologies for producing food-grade recycled resin are not yet operating at sufficient scale to support widespread mandatory adoption. The agency also concluded that available food-grade PCR supplies remain limited and that additional research and technological advancement are needed before broader implementation can occur. NJDEP further stated that it expects food-grade PCR availability and technology development to improve significantly by 2030. Notably, NJDEP has declined to publicly release the research underlying those conclusions, characterizing the supporting analyses as confidential and deliberative.
NJDEP also acknowledged that it did not solicit input from recyclers, suppliers, brand owners, or manufacturers before issuing the extension.
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