The Chamber of Commerce Southern New Jersey (CCSNJ) 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 $1,849 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.

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 a five-year period, this translates to a per-household cost of approximately $1,849.93. 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 harmonize environmental 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.

To read the York Impact Study, click here

To view press coverage of the study, click here.