Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    ESG

    Foreign equity is moving into North America’s e-scrap origination

    From claims to custody: PCR procurement grows up

    Certification Scorecard — Week of August 17, 2026

    Sorted: Country roads, take my recycling

    State program revamp proposal advances in Oregon

    Oregon EPR ruling looms: what legal experts think

    Triple-digit revenue gains propel ABTC’s expansion

    LFP batteries gain acceptance. Can they be recycled?

    May pricing bullish for most bales

    August pricing bearish for plastic bales

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    ESG

    Foreign equity is moving into North America’s e-scrap origination

    From claims to custody: PCR procurement grows up

    Certification Scorecard — Week of August 17, 2026

    Sorted: Country roads, take my recycling

    State program revamp proposal advances in Oregon

    Oregon EPR ruling looms: what legal experts think

    Triple-digit revenue gains propel ABTC’s expansion

    LFP batteries gain acceptance. Can they be recycled?

    May pricing bullish for most bales

    August pricing bearish for plastic bales

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home E-Scrap

New Jersey e-scrap program hits major stumbling blocks

Dan LeifbyDan Leif
March 28, 2014
in E-Scrap

Want evidence of how difficult it is to craft effective statewide laws for the rapidly evolving e-scrap landscape? Just look to New Jersey and the collection quagmire that’s unfolded there.

According to a state official and various e-scrap stakeholders in the Garden State, materials recovered under the state’s e-cycling law have piled up at some collection sites in recent months, in large part because industry consolidation and the ongoing CRT dilemma have sparked major funding deficits when it comes to moving material downstream.

Some counties in the southern part of the state have even threatened to discontinue running the collection sites that are integral to the e-cycling law’s goal of offering free and convenient e-scrap collection access to all residents.

“Towns and counties are facing large costs that should not be there, and [they] are facing the prospect of pulling out of the collection system,” said Marie Kruzan, executive director of the Association of New Jersey Recyclers.

Quotas met, material remains

The state’s e-scrap law, which was implemented in 2011 and offers free collection of computers and televisions to residents and small businesses, lays program funding responsibility at the feet of original equipment manufacturers (OEMs). Each year, the state’s Department of Environmental Protection (DEP) sets out specific collectionquotas individual OEMs must meet, but due to a variety of factors, major tonnages are remaining at municipal collection sites even after manufacturers say they’ve fulfilled their requirements.

The program’s issues are in many ways exemplified by the straits that have confronted Magnum Computer Recycling, a de-manufacturing firm based in Pennsauken, New Jersey. During the initial years of the e-cycling program, Magnum covered six counties in the southern part of the state, handling and transporting scrap collected in that region.

Magnum’s owner, John Martorano, Jr., told E-Scrap News that during 2011 and 2012 the company had deals in place with MRM, an alliance of OEMs, and other corporate groups that worked to wrangle pounds on behalf of product manufacturers, and Magnum was paid 6 cents per pound for TVs and other covered material it collected and 15 cents per pound for the material it actually de-manufactured. Those sums were enough for Martorano to profitably and efficiently maintain his link in the program.

In the middle of last year, however, the OEM alliances Magnum was relying on said they could no longer pay him for pounds. According to Martorano, one of those contractors assured him more weight would be needed soon, and Martorano kept servicing his county clients, paying from his own pocket. When the contractor finally came back to him in January of this year, it offered Martorano just a penny per pound. With 600,000 pounds of TVs, monitors and other material amassed, he was forced to take the payment, even though it didn’t come close to covering expenses.

Martorano, whose firm is certified to the R2 standard, says a number of other processing firms in New Jersey have run into similar dilemmas. “Recyclers are going out of business,” he said. “It’s like we’re eating soup with a fork. We’re tasting everything, but not getting full.”

Guy Watson, chief of the Bureau of Recycling and Planning at New Jersey DEP, confirmed many of the specifics of the Magnum case.

“Magnum got in a bind,” Watson said. “My understanding is that the company has been able to again start moving the material from the collection sites, but it’s had to charge counties around 4.5 to 6 cents a pound.” It’s those charges that have begun forcing countries to consider nixing their collection efforts.

A beguiling market

So what’s behind the economic shift that led to the funding upheaval? Watson points first to the increasingly beguiling CRT glass market. Over the last year, the well-documented shortage of options for final processing of leaded glass in North America began to have serious ripple effects on the profitability of New Jersey collection firms.

“The subsidy needed by recyclers from the manufacturers for the CRTs went up,” said Watson, “because the cost went up to market it.”

But the trend in OEM financing has been moving in the opposite direction. Kruzan of ANJR says with OEMs needing to collect weight in the more than 20 e-scrap law states, they are turning to national e-scrap firms that then subcontract out work on a state-by-state basis. Brokers have entered the picture, and competition has grown fierce, meaning OEMs are able to get their weight covered at a very low per-ton price.

Furthermore, Kruzan said the increased number of brokers and national firms working in the state makes it hard to keep track of whether manufacturers are actually collecting their proper weight allotments.

“We can’t demand numbers from someone in Philadelphia or Timbuktu,” she said. “There’s no way to audit that. That is the fallacy of the law.”

OEMs, however, say the problems in the legislation run deeper than just accounting specifics. Doug Smith, corporate director of environment, safety and health at Sony, said that in New Jersey and many other states, e-scrap mandates are passed without comprehensive economic analysis. As a result, shifts in the e-scrap marketplace inevitably lead to underfunded operations even when the OEMs pay for their required tons for TVs and other devices.

“I have to use contractors that use subcontractors,” he said. “It’s a reality when dealing with so many state laws. But these are compliance laws and we take them very seriously. The counties are faced with hiccups and that has a trickle effect that goes up to us. We take the blame, but all we’re really doing is complying.”

Program updates

Watson said DEP has made adjustments to the New Jersey system for the 2014 calendar year, increasing the state’s per capita recovery target by 13 percent and boosting the forecast of CRT material that is expected to head into the system. He also said the department is now requiring OEMs to provide estimates of what they expect to garner from individual collection sites so that regulators can make sure firms working in different areas have the financial coverage they need.

But the recycling official also admitted creating a foolproof system that will satisfy all requirements of all stakeholders — and the public — is a daunting task.

“There is this tension in the [law],” he said. “On the one hand, all consumers as defined in the act must have the ability to access a free and convenient system. That means without limitation. On the other hand, the law says we have to give each one of the manufacturers an obligation in pounds, which is a finite number. “

Martorano of Magnum and Kruzan of ANJR said New Jersey recycling stakeholders have begun a push to alter specifics of the law so that the companies responsible for collecting and processing the material are guaranteed the compensation they need.

“The program fell apart,” said Martorano. “And without the legislation changing, it’s only going to get worse.”

Tags: Legislation & Enforcement
TweetShare
Dan Leif

Dan Leif

Dan Leif is the managing editor at Resource Recycling, Inc., which publishes Resource Recycling, Plastics Recycling Update and E-Scrap News. He has been with the company since 2013 and has edited different trade publications since 2006. He can be contacted at dan@resource-recycling.com.

Related Posts

The Maine state capitol in Augusta.

Circular Action Alliance won’t bid on Maine’s PRO contract

byStefanie Valentic
August 19, 2026

Circular Action Alliance announced it will not submit an RFP to implement Maine's EPR packaging program.

Landfill seen from above with equipment moving materials.

PFAS, EPR reshape waste and recycling policy

byStefanie Valentic
August 19, 2026

A federal deregulatory pullback is colliding with a patchwork of state environmental rules, and litigation is now doing the work...

State program revamp proposal advances in Oregon

Oregon EPR ruling looms: what legal experts think

byStefanie Valentic
August 17, 2026

A ruling in NAW v. Feldon is expected by the end of August. Here's what legal experts think will happen.

End markets, policy key to RPET viability

PET in focus: Is help on the way?

byAntoinette Smith
August 17, 2026

California market payments progress State-level PCR mandates too new to evaluate India may provide look at future  The past few...

Audit finds recycling deficiencies across NY

byPaul Lane
August 11, 2026

The state comptroller found inaccuracies and omissions have made it impossible to accurately report how much material is recycled statewide.

Ron Gonen

Bicameral Truth in Labeling Act introduced in Congress

byStefanie Valentic
August 10, 2026

A new bill would set federal recyclability, compostability, reuse and refill standards and make false claims an FTC-enforceable offense.

Load More
Next Post

Novelis cracks open partnership for certified recycled can

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

PureCycle sees easing headwinds to R-PP adoption

PureCycle says H2 outlook already playing out 

August 13, 2026
State program revamp proposal advances in Oregon

Oregon EPR ruling looms: what legal experts think

August 17, 2026
Google explores how to capture 4.5 billion tons of plastic

Bale pricing diverges for August

August 18, 2026
The Maine state capitol in Augusta.

Circular Action Alliance won’t bid on Maine’s PRO contract

August 19, 2026

What nine years of acquisitions taught Coastal Waste’s CEO

August 12, 2026
End markets, policy key to RPET viability

PET in focus: Is help on the way?

August 17, 2026
May pricing bullish for most bales

August pricing bearish for plastic bales

August 17, 2026

Sorted: Country roads, take my recycling

August 18, 2026
Indorama leans into ‘local for local’ strategy

Indorama leans into ‘local for local’ strategy

August 14, 2026
Re-Teck opens site in Southeast Asia

ERI expands global footprint into Vietnam

August 11, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazine

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletter

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazine
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.