Establishes School Plastics Upcycling Grant Program in DEP to provide proportional awards to eligible schools based on pro rata share of plastics collected, by each school, for upcycling purposes; appropriates $5 million.

A4853

ASSEMBLY, No. 4853

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 4, 2026

Sponsored by:

Assemblywoman� CAROL A. MURPHY

District 7 (Burlington)

Assemblyman� ANTHONY ANGELOZZI

District 8 (Atlantic and Burlington)

SYNOPSIS

���� Establishes School Plastics Upcycling Grant Program
in DEP to provide proportional awards to eligible schools based on pro rata
share of plastics collected, by each school, for upcycling purposes;
appropriates $5 million.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the establishment of a grant program
to provide proportional awards to schools engaged in the collection and
donation of plastics for upcycling purposes, supplementing Title 13 of the
Revised Statutes, and making an appropriation.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Authorized upcycler� means a
person or entity, including, but not limited to, a recycling center or similar
facility, that is identified by the commissioner, pursuant to subsection d. of
section 3 of this act, as being appropriately qualified to engage in plastics
upcycling and capable of upcycling donated school-collected plastics into
school-appropriate furnishings for the purposes of this act.

���� �Collected plastics� means and
includes those used, useless, or unwanted plastic bags or other plastic
materials or products which have been collected by students or staff, for the
purposes of upcycling, either at or on behalf of an eligible applicant school
during the school year immediately preceding the date on which the school
submits its program grant application pursuant to subsection b. of section 3 of
this act.

���� �Commissioner� means the
Commissioner of Environmental Protection.

���� �Department� means the
Department of Environmental Protection.

���� �Eligible applicant school�
means an eligible school that submits an application for a program grant award,
in any year of program operations, by the deadline established pursuant to
subsection b. of section 3 of this act.

���� �Eligible costs� means the
costs set forth in subsection c. of section 4 of this act which are incurred by
a grantee, within the limits of program grant funding awarded thereto, in
association with the grantee�s purchase and acquisition of school-appropriate
furnishings produced, by authorized upcyclers, through the upcycling of
school-collected plastics.

���� �Eligible school� means a
school that satisfies the criteria, set forth in subsection a. of section 3 of
this act, as necessary to establish the school�s eligibility for a grant award,
in any year, under the School Plastics Upcycling Grant Program.

���� �Grant program� or �program�
means the School Plastics Upcycling Grant Program established pursuant to
section 2 of this act.

���� �Grantee� means an eligible
school that receives a grant award, in any year, under the School Plastics
Upcycling Grant Program.

���� �Plastic collection
activities� means and includes any activities that are undertaken or overseen
by a school�s students or staff to facilitate the collection and storage of
used, useless, or unwanted plastics, either at or on behalf of the school, for
the purposes of upcycling.

���� �Program grant award� means a
grant award issued to an eligible school under the School Plastics Upcycling
Grant Program.

���� �School� means a public or
private elementary or secondary school that is located in the State and
provides education to students in grades K-12 or any combination thereof.

���� �School-appropriate
furnishings� or �school-appropriate furniture� means and includes any
furnishings, including, but not limited to, benches, tables, desks, or chairs,
which are suitable for use by schools, have been produced by an authorized
upcycler through the upcycling of school-collected plastics, and are available
for purchase and acquisition, by an eligible school, through the use of program
grant funds awarded pursuant to this act.

���� �School-collected plastics�
means and includes the total amount of used, useless, and unwanted plastic bags
and other plastic products and materials that have been collected by schools,
for the purposes of upcycling, in the school year immediately preceding the
annual deadline established, pursuant to subsection b. of section 3 of this
act, for the submission of program grant applications.

���� �Upcycling� means the process that is used, by an
authorized upcycler, to transform and reconstitute used, useless, or unwanted
plastic bags and other plastic products and materials into new and repurposed
materials or products of higher value and greater quality.

���� 2.��� a. �Commencing at the
end of the school year next following the effective date of this act, the
Commissioner of Environmental Protection shall establish and operate a School
Plastics Upcycling Grant Program, the purpose of which shall be to annually
provide proportional grant funding to each eligible applicant school in the
State, consistent with, based on, and in proportion to, each such school�s
annual, pro rata share of school-collected plastics, in order to enable each
such school to purchase and acquire a fair, equitable, and proportional pro
rata share of school-appropriate furnishings annually produced, by authorized
upcyclers, through the upcycling of all school-collected plastics.

���� b.��� The School Plastics
Upcycling Grant Program shall be operated by the commissioner, on a pilot
basis, for a period of three years or until the funds appropriated pursuant to
section 7 of this act have been fully expended or are no longer deemed, by the
commissioner, to be sufficient to enable the issuance, in any program year, of
proportional, pro rata grant awards to all eligible applicant schools.�

���� c. �� (1) At the conclusion of
the pilot period set forth in subsection b. of this section, and upon the
commissioner�s submission of an associated report, pursuant to subsection b. of
section 5 of this act, recommending continuation of the program on a permanent,
ongoing, or year-to-year basis, the commissioner shall be authorized to
continue the School Plastics Upcycling Grant Program, in each year thereafter,
within the limits of funds annually appropriated or otherwise made available,
to the department, for the program�s purposes.�

���� (2)�� Notwithstanding the
provisions of paragraph (1) of this subsection to the contrary, the
commissioner shall temporarily discontinue the program, and shall suspend the
issuance of grant awards thereunder, in any year in which the amount of
available program funding is insufficient to enable all eligible applicant
schools to receive a proportional grant award under the program, consistent
with the requirements of subsection a. of this section and subsection c. of
section 3 of this act.

���� 3.��� a.� A school shall be
eligible for a proportional grant award under the School Plastics Upcycling
Grant Program, in at least the minimum dollar amount prescribed by paragraph
(1) of subsection c. of this section, if it establishes, to the department�s satisfaction,
in an application submitted pursuant to subsection b. of this section, that:�

���� (1)�� the school�s students or
staff were engaged in plastic collection activities, either at or on behalf of
the school, during the school year immediately preceding the submission of the
school�s grant application; and

���� (2)�� the plastics collected
by school students or staff, during the immediately preceding school year,
either have been or will be donated, by the school, to an authorized upcycler
for upcycling purposes, consistent with the purposes and goals of this act.

���� b.��� An eligible school
wishing to obtain a grant under the School Plastics Upcycling Grant Program
shall submit an application therefor to the department, in a form and manner
prescribed by the commissioner, within 30 days after the conclusion of the
school year during which its students or staff engaged in the collection of
plastics.� An application submitted pursuant to this subsection shall:

���� (1)�� identify the nature and
extent of all plastic collection activities undertaken by students or staff,
either at or on behalf of the school, during the immediately preceding school
year, including, but not limited to, the types of plastic collection activities
undertaken, the dates on which such plastic collection activities were
conducted, and the total number and percentage of students and staff who
actively participated in such plastic collection activities;

���� (2)�� identify the total
number and weight, and the types and sources, of used, useless, or unwanted
plastics that were collected by school students or staff during the school year
for the purposes of upcycling;

���� (3)�� include a statement
certifying that the school�s collected plastics either have been or will be
donated, at no cost, to an authorized upcycler for purposes of upcycling, and
identifying the name and address of each authorized upcycler that has accepted
or has agreed to accept the school�s collected plastics for the purposes of
this act;

���� (4)�� identify the number and
specific types of school-appropriate furnishings, produced by an authorized
upcycler with upcycled school-collected plastics, that the school wishes to
acquire with awarded grant funds, and provide an estimate of the eligible costs
expected to be incurred, by the school, in association with the purchase and
acquisition of such furnishings;

���� (5)�� indicate whether the
school has previously received a grant award, under the School Plastics
Upcycling Grant Program, in one or more prior years of program operations;
identify the amount of each such prior grant award, as well as the number and
types of furnishings, produced with upcycled plastics, that have been purchased
and acquired by the school with the use of previously awarded program grant
funds; and indicate whether, and the extent to which, the previously awarded
grant funds have been fully expended by the school or remain unspent and
available for roll-over use, by the school, as authorized by subsection b. of
section 4 of this act;

���� (6)�� identify all other
sources of funding, if any, that are available to finance the school�s eligible
costs; and

���� (7)�� provide any other
information required by the commissioner.

���� c.���� The dollar amount of
each grant award issued to an eligible applicant school, in each year of
program operations, shall be determined in accordance with a funding formula
developed by the commissioner.� The funding formula developed for these
purposes shall be designed to ensure, to the greatest extent practicable, the
fair, and equitable apportionment and distribution of available grant funds to
all eligible applicant schools, in each year, based on each such school�s pro
rata share of all school-collected plastics.� To that end, the funding formula
shall:

���� (1)�� provide for each
eligible applicant school to receive a minimum program grant award, in each
year, in an amount that is sufficient to enable the school to purchase and
acquire at least one piece of school-appropriate furniture produced by an
authorized upcycler through the upcycling of school-collected plastics; and

���� (2)�� provide for each
eligible applicant school to receive a proportional increase in the grant
funding being awarded thereto under the program, in each year, above and beyond
the minimum funding amount required pursuant to paragraph (1) of this
subsection, if, and to the extent that, the commissioner determines that the
eligible applicant school�s pro rata share of school-collected plastics is
proportionately higher than that of other similarly sized or similarly situated
schools.� The amount of enhanced grant funding authorized under this paragraph
may vary by eligible applicant school, but, in each case, shall be based on,
proportional to, and consistent with, the school�s pro rata share of all
school-collected plastics.

���� d.��� Within 180 days after
the effective date of this act, the commissioner shall develop, and shall
publish and maintain on the department�s Internet website, a list of authorized
upcyclers that have been determined, by the department, to be appropriately qualified
to engage in the efficient and effective upcycling of plastics, capable of
producing high quality school-appropriate furnishings through upcycling, and
capable of, and willing to, accept donations of plastics collected by schools
under the grant program.� The list maintained pursuant to this subsection shall
be regularly updated, as necessary to ensure that it contains the most
up-to-date contact information for all authorized upcyclers in the State.

���� 4.��� a.� Grant moneys awarded
under the program shall be distributed directly to the grantee for use thereby
in financing the grantee�s eligible costs.

���� b.��� Any grant moneys
awarded under the program and remaining unexpended, by the grantee, at the
conclusion of the school year next following the issuance of the grant award,
may be rolled-over and used by the grantee, for the same purposes, in one or
more subsequent school years.� Nothing in this subsection, or in any other
provision of law, rule, or regulation, shall be deemed to prohibit an eligible
school from applying for a new program grant award, in each year, regardless of
whether such eligible school is a prior grantee or has any rolled-over balance
of previously awarded grant funds remaining unexpended.� However, to the extent
that a school retains access to any such rolled-over funds at the time of its
application for a new program grant award, the commissioner shall reduce the
dollar amount of the new grant award by the same amount of rolled-over grant
funds remaining.� Notwithstanding any other law, rule, or regulation to the
contrary, a grant award reduced by the commissioner, pursuant to this paragraph,
may be reduced to a dollar amount that is less than the minimum dollar amount
required to be awarded to each eligible school, pursuant to paragraph (1) of
subsection c. of section 3 of this act, provided that the sum of moneys awarded
under the new program grant and the sum of rolled-over grant moneys remaining
unexpended by the school are, together, equal to or greater than the minimum
dollar amount established for a program grant award, pursuant to paragraph (1)
of subsection c. of section 3 of this act.

���� c.���� Of the program grant
funds annually awarded to a grantee, pursuant to this act:

���� (1)�� at least 80 percent shall
be used to finance the costs incurred, by the grantee, in purchasing, from one
or more authorized upcyclers, the grantee�s pro rata share of
school-appropriate furnishings produced through the upcycling of
school-collected plastics; and

���� (2)�� up to 20 percent may be used
to finance the administrative or other incidental costs being incurred, by the
grantee, either in association with its purchase of school-appropriate
furnishings from an authorized upcycler, pursuant to paragraph (1) of this
subsection, or in association with its successful acquisition of such purchased
furnishings, including, but not limited to, the costs associated with:� (a) the
temporary storage of the grantee�s collected plastics or of school-appropriate
furnishings purchased thereby; (b) the transfer, between the grantee and
authorized upcyclers, of any such collected plastics or grantee-purchased
furnishings; or (c) the grantee�s acquisition, maintenance, repair,
replacement, or updating of equipment, vehicles, storage facilities, or
supplies, or its employment and training of relevant staff, as may be necessary
to ensure the grantee�s cost-effective and efficient use of awarded program
funds.

���� d.��� Grant moneys awarded
pursuant to the School Plastics Upcycling Grant Program shall be used only to finance
a grantee�s eligible costs, and shall not be used to finance any such eligible
costs that are already being financed with, or are subject to reimbursement
using, other sources of State or federal funds.� In any case where another
State or federal agency or program is providing funding to cover a grantee�s eligible
costs, the commissioner may reduce the total amount of program grant funding
being awarded to the grantee, in the current year, by the amount of the other
State or federal contributions or, if necessary, may take other appropriate
action to recoup, from program grant funds already disbursed to the grantee, a
sum equal to the amount of funding made available, through other State or
federal contributions, to finance the grantee�s eligible costs.

���� 5.��� a.� Each eligible school
that receives a program grant in any year of program operations shall be
required to submit a grant expenditures report, to the department, on an annual
or more frequent basis, as required by the commissioner.� Each report submitted
by the grantee, pursuant to this subsection, shall include:

���� (1)�� the name, address, and
other contact information for, each authorized upcycler that: (a) has accepted,
for upcycling purposes, the plastics collected by the grantee during the
preceding school year; or (b) from which the grantee has purchased and acquired
school-appropriate furnishings with the use of program grant funds awarded
pursuant to this act;

���� (2)�� an accounting statement
identifying the eligible costs that have been financed, by the grantee, through
the use of program grant funding, and indicating whether, and the extent to
which, awarded grant funds have been fully expended or remain available for
roll-over use in the next year, as authorized by subsection b. of section 4 of
this act;

���� (3)�� a list identifying the
number and type of school-appropriate furnishings that have been purchased by
the grantee, with the awarded grant funds, from each authorized upcycler
identified under paragraph (1) of this subsection;

���� (4)�� appropriate receipts,
photos, or other documentation verifying the expenditures accounted for in the
report and documenting the grantee�s successful acquisition of the
school-appropriate furnishings purchased thereby with awarded grant moneys; and

���� (5)�� any other information
required by the commissioner.

���� b.��� Not more than 60 days
after the conclusion of the pilot program period established pursuant to
subsection b. of section 2 of this act, and annually thereafter in any year in
which the commissioner elects to continue program operations as authorized by
subsection c. of section 2 of this act, the commissioner shall submit, to the
Governor, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the
Legislature, a written report evaluating the success, effectiveness, and need
for continued implementation of the grant program.� Each such annual report
shall:

���� (1)�� identify the total
number of eligible applicant schools that received a program grant award during
the pilot period or the current year of continuing program operations, as the
case may be; the total number and weight of all plastics annually collected by
all such schools; the individual, pro rata share of school-collected plastics
annually collected by each such school; the number and percentage of eligible
applicant schools that received proportionally enhanced grant awards under the
program, as authorized by paragraph (2) of subsection c. of section 3 of this
act; the amount of each such proportionally increased grant award issued during
the year; the basis upon which each such proportional increase in funding was
authorized; and the number and types of school-appropriate furnishings that
have been purchased and acquired, by grantees, with the use of awarded program
funds;

���� (2)�� evaluate whether, and
the extent to which, the program has been successful both in promoting,
facilitating, incentivizing, and rewarding the increased collection of
plastics, by schools in the State, for the purposes of upcycling, and in
facilitating a concomitant increase in the total number and weight of used,
useless, and unwanted plastics made available to, and upcycled into new and
more valuable commercial products by, authorized upcyclers;

���� (3)�� include the
commissioner�s findings and recommendations regarding the necessity,
appropriateness, and feasibility of continuing the program on a permanent,
ongoing, or year-by-year basis; and

���� (4)�� identify whether, and
the extent to which, appropriated funds remain available and sufficient to
finance the issuance, in future years, of proportional program grant awards to
all eligible applicant schools, and indicate whether, and the extent to which,
additional legislative appropriations will be necessary to facilitate the
program�s continued operations in future years, consistent with the provisions
of this act.

���� 6.��� a. �The commissioner
shall adopt rules and regulations, pursuant to the �Administrative Procedure
Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary to implement
the provisions of this act.�

���� b.��� The rules and
regulations adopted pursuant to this section shall identify, at a minimum:�

���� (1)�� the procedures and
standards to be used, by the department, in identifying and publicizing, for
eligible schools, the name and contact information of authorized upcyclers;

���� (2)�� the procedures and
standards with which grantees are required to comply when donating collected
plastics to, or when expending program grant funds in association with the
purchase and acquisition of school-appropriate furnishings from, an authorized
upcycler for the purposes of this act;

���� (3)�� the procedures to be
used, by eligible schools, when submitting a program grant application, in each
year, pursuant to subsection b. of section 3 of this act, and when submitting a
grant expenditures report pursuant to subsection a. of section 5 of this act;

���� (4)�� the procedures,
standards, and funding formula that will be used by the department in
evaluating program grant applications, in determining each eligible applicant
school�s pro rata share of all school-collected plastics, and in determining
the proportional dollar amount of each grant award issued to an eligible
applicant school under the program; and

���� (5)�� any limitations,
restrictions, or other requirements, imposed by the department, in association
with the awarding or use of grant funds under the program.

���� 7.��� There is appropriated,
from the General Fund to the Department of Environmental Protection, the sum of
$5,000,000 for the purposes of issuing grants to schools, as provided by this
act.

���� 8.��� This act shall take
effect immediately.

STATEMENT

���� This bill would require the
Department of Environmental Protection (DEP), commencing at the end of the
school year next following the bill�s effective date, to establish and operate
a School Plastics Upcycling Grant Program, the purpose of which would be to
annually provide proportional grant funding to each eligible applicant school
in the State, consistent with, based on, and in proportion to, each such
school�s annual, pro rata share of school-collected plastics, in order to
enable each such school to purchase and acquire a fair, equitable, and
proportional pro rata share of school-appropriate furnishings being annually
produced, by authorized upcyclers, through the upcycling of school-collected
plastics.� The bill would appropriate $5 million, from the General Fund, to
finance initial grant awards issued under the program.

���� Pursuant to the bill�s
provisions, the School Plastics Upcycling Grant Program would be operated, by
the commissioner, for an initial pilot period lasting for three years or until
the funds appropriated under the bill are fully expended or are no longer sufficient
to enable the issuance of proportional grant awards to all eligible applicant
schools in any pilot year.� Upon the conclusion of the pilot period and the
commissioner�s submission of a report, to the Governor and Legislature,
recommending continuation of the program, the commissioner would be authorized
to continue the program, in each year thereafter, within the limits of funds
newly appropriated or otherwise made available for the program�s purposes, and
to the extent that such available program funds are sufficient, in each year of
program operations, to provide for the issuance of proportional grant awards to
all eligible applicant schools.� In any year where the amount of available
program funding is insufficient to enable all eligible applicant schools to
receive a share of funding that is proportionate to each such school�s pro rata
share of collected plastics, the commissioner would be required to temporarily
discontinue the program and suspend the issuance of grant awards thereunder in
the current year.�

���� A school would be eligible for
a program grant, in any year of program operations, if it establishes, in its
grant application, that: (1) the school�s students or staff were engaged in
plastic collection activities, either at or on behalf of the school, during the
school year immediately preceding the submission of the school�s grant
application; and (2) the plastics collected by school students or staff, during
the immediately preceding school year, either have been or will be donated, by
the school, to an authorized upcycler for upcycling purposes, consistent with
the program�s purposes.� The commissioner would be required to develop and
publish a list of authorized upcyclers to which school-collected plastics may
be donated, and from which school-appropriate furnishings may be purchased, by
eligible schools, for grant program purposes.�

���� The dollar amount of each
grant award issued to an eligible applicant school, in each year of program
operations, would be determined in accordance with a funding formula developed
by the commissioner.� The funding formula is to be designed to ensure, to the
greatest extent practicable, the fair and equitable apportionment and
distribution of available grant funds to all eligible applicant schools, in
each year of program operations, based on each such school�s pro rata share of
school-collected plastics. �To that end, the funding formula would be required
to provide for each eligible applicant school to receive: (1) a minimum program
grant award, in each year, in an amount that is sufficient to enable the school
to purchase and acquire at least one piece of school-appropriate furniture
produced by an authorized upcycler through the upcycling of school-collected
plastics; and (2) a proportional increase in the grant funding being awarded
thereto under the program, in each year, above and beyond the minimum funding
amount required by the bill, if, and to the extent that, the commissioner
determines that the eligible applicant school�s pro rata share of
school-collected plastics is proportionately higher than that of other
similarly sized or similarly situated schools.� The amount of enhanced grant
funding authorized under the grant program may vary by eligible applicant
school, but, in each case, is to be based on, proportional to, and consistent
with, the school�s pro rata share of school-collected plastics.

���� A school receiving a program
grant award, in any year, would be required to use at least 80 percent of the
awarded grant funds to finance the costs incurred thereby in purchasing, from
one or more authorized upcyclers, the school�s pro rata share of
school-appropriate furnishings produced through the upcycling of
school-collected plastics.� Up to 20 percent of the awarded grant funds may be used
to finance the administrative or other incidental costs being incurred, by the
school, either in association with its purchase of school-appropriate
furnishings or in association with its successful acquisition of such purchased
furnishings from an authorized upcycler, including, but not limited to, the
costs associated with: (1) the temporary storage of plastics collected, or of
school-appropriate furnishings purchased, by the school; (2) the transfer,
between the school and authorized upcyclers, of any such collected plastics or
school-purchased furnishings; or (3) the school�s acquisition, maintenance,
repair, replacement, or updating of equipment, vehicles, storage facilities, or
supplies, or its employment and training of relevant staff, as may be necessary
to ensure the school�s cost-effective and efficient use of grant program funds.

���� Each school receiving a
program grant award, in any year, would be required to regularly submit, to the
department, a grant fund expenditures report detailing the eligible costs being
financed thereby with grant program funds.� The commissioner would be required
to adopt rules and regulations that, among other things, specify the procedures
for the filing of such reports and the requisite information to be included
therein.� The commissioner would also be required to annually submit a written
report, to the Governor and the Legislature, evaluating the success and
effectiveness of the grant program and providing findings and recommendations
regarding the necessity, appropriateness, and feasibility of continuing program
operations on a permanent, ongoing, or year-to-year basis, within the limits of
funds or otherwise made available to the department for the program�s purposes.