Commercial recycling laws have been spreading across the United States in recent years. And while they’re obviously in place to help the environment, it’s important for businesses to understand how recycling laws directly impact waste management costs.
As more states and cities continue to implement mandatory recycling and organic diversion requirements, it’s important for you to have a firm grasp of your responsibilities to help your business avoid hefty penalties.
What Exactly Are Commercial Recycling Laws?
Commercial recycling laws require businesses to separate specific types of materials from regular trash and arrange for proper recycling or composting services. These state and city-specific candidates often apply to businesses based on how much waste they generate, which is typically measured in cubic yards per week (or other volume metrics).
Materials commonly covered in commercial recycling laws include:
- Paper and cardboard
- Glass containers
- Plastic bottles
- Plastic containers
- Aluminum cans and metals
- Organic waste (like food scraps, yard waste, and food-soiled papers)
Many of these laws have been enacted with ambitious environmental goals. States are passing these laws to try and reduce landfill waste and address climate change.
States With Commercial Recycling Laws
There are no federal laws governing commercial recycling. But many states and local cities have implemented their own mandatory recycling requirements for businesses, including:
- California — AB 341 requires businesses generating 4+ cubic yards of solid waste per week to implement a recycling program, and SB 1383 requires organic waste recycling for all businesses.
- Connecticut — Commercial food wholesalers, industrial food manufacturers, supermarkets, resorts, conference centers, and other institutions generating 26+ tons of organic waste per year must compost at a state-authorized facility under CGS 22a-226e.
- Illinois — Facilities hosting large events (3,500+ capability) must provide recycling and composting services defined by SB 2876, with penalties up to $2,500 per violation.
- Massachusetts — MassDEP bans the disposal of commercial organic waste from businesses generating more than half a ton of certain materials per week.
- Maine — MRS 38.24 defines waste reduction and diversion policies, recycling of waste laws, and composting guidelines.
- Minnesota — Statute 115A.151 requires businesses generating 4+ cubic yards of trash per week to recycle at least three different types of recyclable materials.
- New Jersey — Businesses are required to separate recycling from the municipal solid waste streams under NJSA 13:1E-1et seq.
- Ohio — Rule 3745-27-90 sets standards for solid waste management and commercial recycling opportunities.
- Washington — HB 1799 governs how businesses are required to recycle organic waste based on how much volume they generate in an effort to reduce organic waste disposal by 75% by 2030.
- New York — Businesses that produce 2+ tons of food waste per week must donate edible excess food and recycling scraps if they’re located within 25 miles of an organic recycling facility (with thresholds phasing in 2027 and 2029).
- Oregon — Has multiple recycling laws and organic waste requirements at both the state and local levels with waste diversion programs and bans on certain materials (like polystyrene foam containers).
- Pennsylvania — Has various city-level recycling requirements, like mandatory recycling laws for businesses in Pittsburgh to separate paper, cardboard, plastics, metal, glass, and leaf waste. There are also special event recycling laws for events expecting 200+ individuals per day.
- Rhode Island — Bans food service establishments from providing, selling, or processing food or beverages in containers made with polystyrene foam or plastic beverage stirrers, with fines up to $100 per violation.
- Texas — State-level recycling requirements with several local variations from city to city.
- Vermont — Act 148 bans recyclable materials, leaves, yard waste, and food scraps from landfills.
Note: This information is for reference only, and requirements vary significantly by location, organization type, and waste volume. This is a general overview that does not constitute legal advice, and businesses should confirm local laws directly with their state, city, and county.
How Commercial Recycling Laws Increase Business Costs
Commercial recycling mandates can create a wide range of both direct and indirect costs for businesses.
While the exact costs obviously depend on your state, business type, and applicable laws, you’ll see some costs appear as line items on your hauling invoice while others will be baked into your operational costs.
Here’s a closer look at the fees that are impacted due to commercial recycling laws:
Equipment Costs
If your business is required to recycle, you’ll likely need additional containers since everything can’t be disposed of into a single dumpster.
In some cases, you’ll need multiple containers for recyclables for situations where things like cardboard, organics, and plastics need to be separated on site.
Purchasing your own containers is always cheaper over the long run. But many waste haulers require you to rent dumpsters and recycling containers from them, which will drive up your monthly costs.
Additional Service Costs
Since your trash and recycling can’t be hauled away in the same container, you’ll also need to pay for extra pickups. To comply with local and state laws, your business may need a separate service for each type:
- Standard trash collection
- Recycling collection
- Organics (composting) collection
Each of these services will have its own pickup fees.
And it’s common for organics collections to cost more than standard trash collections due to the specialized handling and processing requirements.
Instead of a single truck coming to your facility twice per week, you might need three trucks each coming twice per week.
Penalties and Fines
Extra fees for non-compliance can come directly from your waste hauler or from the government body that regulates your local recycling laws. But these penalties are very different from each other.
Waste haulers often charge contamination fees if you have the wrong types of items mixed into your recycling containers. Or if you put recyclable goods into your standard trash.
These fines can range anywhere from $50 to $500 per incident.
And if you fail to comply with mandatory recycling laws in your area, you can be fined by your state or city (typically $500 to $2,500 per violation).
The biggest thing to understand here is that your waste hauler can charge you penalties even if you technically aren’t breaking the law. That’s where we see these fees add up the most.
Administrative Costs
These are the indirect costs that don’t necessarily show up on a particular invoice. I’m referring to things like:
- Training employees on proper waste sorting procedures
- Conducting regular waste audits
- Maintaining documentation for compliance recording
- Monitoring and managing potential contamination in your containers
Larger businesses with multiple facilities may need to dedicate upwards of 10-20+ hours per week for this stuff. It adds up quickly.
Space and Operational Costs
Right now your dumpsters may all fit nicely in a dedicated space outside of your buildings. Maybe you even have a commercial trash compactor installed.
If a new recycling law passes in your state, you may need to get additional containers for plastics, paper, and compost.
Do you have the space for these containers? This can be an expensive problem to figure out.
How Businesses Can Save Money on Commercial Recycling
You obviously can’t change the commercial recycling laws in your state or city. Laws and regulations are just something you’ll have to deal with.
But that doesn’t necessarily mean your business is forced to pay exorbitant prices on waste management. Here’s what you can do to combat recycling costs and keep your bills lower:
- Understand Your Specific Requirements: Knowing your local laws will help you avoid non-compliance penalties and determine which waste volume thresholds may impact your business.
- Train Your Staff Accordingly: You probably can’t oversee every single item that’s disposed of at your business. So your people on the ground are your last line of defense before items reach the appropriate (or incorrect) dumpsters and recycling containers.
- Negotiate Your Rates: While state and city-specific non-compliance fines are non-negotiable, the rates imposed by your waste haulers are 100% negotiable.
- Monitor Future Legislation: Laws don’t just go into effect overnight. So monitor the progress of bills introduced in your state so you can prepare accordingly, long before you’re officially forced to make changes.
- Get Expert Help: Working with a cost reduction consultant can help you identify other overages on your waste management bill that can save you thousands of dollars every month, offsetting potential increases related to commercial recycling.
Recycling is just one aspect of commercial waste management. You should also keep an eye out for other signs you’re overpaying for waste removal services to get more control over your costs.
Final Thoughts
Commercial recycling laws have become the new norm. States and cities definitely aren’t going backwards when it comes to how they govern recyclable materials.
So even if you’re currently in a location that doesn’t have the strictest recycling laws, you should plan on those laws changing within the next 5-10 years at the absolute max.
Getting control over your costs and operations now can save you tens of thousands of dollars down the road.
More Commercial Recycling FAQs
Is there a federal law that requires commercial recycling?
No, there are no federal laws in the US that mandate commercial recycling. All recycling requirements are established at the state, county, and municipal levels, which means regulations vary significantly depending on location.
The US Environmental Protection Agency (EPA) oversees certain waste water issues, including hazardous waste regulation and helps set national recycling goals, but they don’t mandate any commercial recycling programs.
Do commercial recycling laws apply to hazardous waste?
Commercial recycling laws for standard recyclable items (paper, cardboard, plastics, cans, organics) are separate from hazardous waste regulations. Hazardous waste is regulated under federal law through the EPA’s Resource Conservation and Recovery Act (RCRA) and has its own requirements for handling, storing, and disposing of hazardous items.
Materials that are commonly classified as hazardous waste include chemicals, batteries, electronics, medical waste, and industrial byproducts are governed by laws much stricter than standard recycling laws.
What is organic waste in commercial recycling?
Organics (in the context of commercial recycling) refers to biodegradable materials that can be composted or processed through anaerobic digestion. This typically includes food scraps, food-soiled paper products, and yard waste.
Many states with organics mandates require businesses that generate significant amounts of organic waste to separate those materials from regular trash and arrange for composting (or other approved methods). The goal of organic waste removal related to commercial recycling is to reduce methane emissions from landfills.