The Most Common Recycling Exemptions in New Jersey, Explained

Wondering if your recycling business can skip the approval process? Try these!

If you’re looking to start (or grow) a recycling business in New Jersey, the word “approval” probably makes you pause. Between state regulations, paperwork, and fees, it’s easy to feel overwhelmed before you even get started. But here’s the thing: not every recycling activity needs a full-blown approval from the NJDEP.

That’s where exemptions come in.

We talk to business owners all the time who are confused about what an exemption really is, whether they qualify for one, or how to even begin figuring that out. If that’s you, don’t worry - you’re in the right place.

In this post, we’ll break down the most commonly used recycling exemptions in New Jersey, the ones we see time and time again helping folks like you save time, money, and a whole lot of red tape. While there are technically 24 exemptions on the books, we’re going to zero in on the handful that get used the most.

Still unsure which exemption might fit your situation? That’s what we’re here for. We’ve helped more people navigate New Jersey’s recycling rules than just about anyone, and we’d be happy to help you, too. Reach out to us here if you’d like expert help making sure you’re in the clear.

Table of Contents

• So... What Is a Recycling Exemption, Anyway?
  
  • Why Bother with a Recycling Exemption?
• The Most Common Recycling Exemptions in New Jersey
  
  • Exemption #1: The “RAP” or Manufacturer’s Exemption
  • Exemption #3: Small-Scale Tree Waste Recycling
  • Exemption #5: The Tire Transfer-Only Exemption
  • Exemption #7: Temporary Storage of Class B Materials
  • Exemption #13: The Yard Trimmings Composting Exemption
  • Exemption #20: The Contractor’s Exemption
  • Exemption #22: The Limited Leaf & Grass Transfer Exemption
• Where to Get Recycling Help in New Jersey

So… What Is a Recycling Exemption, Anyway?

Before we dive into exemptions, let’s take a step back and talk about what actually counts as a “recycling facility” in the eyes of the New Jersey Department of Environmental Protection (NJDEP).

If your business receives, stores, processes, or transfers recyclable materials, you’re considered a regulated recycling facility in New Jersey. And no, you don’t have to be doing all four. Even just one of those actions could mean you need to follow the rules for recycling approvals.

Now, here’s where exemptions come into play.

A recycling exemption is a specific rule written by the NJDEP that says: “Hey, if you meet these exact conditions, you don’t need to go through the full recycling approval process.” That means no lengthy solid waste permit, no General Recycling Approval - and for many businesses, that’s a game-changer.

But let’s be clear: exempt doesn’t mean totally off the hook. You might still need things like local zoning signoff, or permits related to stormwater, air emissions, or wastewater. But skipping the full NJDEP recycling approval? That can save you time, hassle, and quite a bit of money.

If you're looking for more info on recycling in New Jersey, check out our complete guide on approvals below!

Read: Everything You Need to Know About Recycling Approvals in New Jersey

Why Bother with a Recycling Exemption?

Here’s the blunt truth: applying for a full NJDEP recycling approval isn’t cheap, or quick. Between consultant fees, engineering plans, and bureaucratic back-and-forth, you could be looking at tens of thousands of dollars and a wait time of two years or more just to get the green light.

That’s why recycling exemptions matter.

Unlike a full permit, most exemptions are free, faster, and usually function more like a notification than a formal application. If your business meets the conditions for a specific exemption, you can often handle the paperwork yourself - no lawyer, engineer, or long approval process required.

For some businesses, this is a permanent solution. For example, tire recycling facilities often run smoothly under Exemption #5 without ever needing to upgrade. Others use exemptions as a kind of soft launch, a way to test their business model before diving into the deeper waters of a full NJDEP approval. (For the record, NJDEP doesn’t love that “gateway” approach, but we see it all the time.)

And sometimes, exemptions aren’t just a nice-to-have, they’re the only option. Several New Jersey counties are essentially closed off to new recycling approvals, so if you want to do business in those areas, an exemption might be the only viable path forward.

Thinking about going this route? Let’s talk through it together. Reach out to us here and we’ll help you figure out what’s possible (and what’s not).

The Most Common Recycling Exemptions in New Jersey

New Jersey has 24 recycling exemptions listed under the state’s solid waste rules (specifically NJAC 7:26A). But let’s be honest, not all of them are relevant for most businesses.

So instead of overwhelming you with the full list, we’re going to focus on the ones we see used most often, and that actually offer real value to companies trying to stay compliant without getting buried in red tape.

Oh, and if you’re wondering why we’re throwing numbers around (like “Exemption #5” or “Exemption #20”), those come straight from the state’s official list. It’s how the NJDEP tracks them, and how we’ll reference them here to keep things clear.

Let’s dive into the exemptions that might just save your business a ton of time and money.

Exemption #1: The “RAP” or Manufacturer’s Exemption

This one’s a favorite among asphalt plants and pallet companies, and for good reason.

Exemption #1 lets a business reuse its own recyclable material in its own manufacturing process. It’s what’s known as a closed-loop system, where materials don’t leave your site, get resold, or move into the broader waste stream. You’re simply repurposing what you already have, and in the eyes of the NJDEP, that can qualify you for an exemption.

Here’s how we commonly see it used:

• Asphalt plants blend Recycled Asphalt Pavement (RAP) into new asphalt mix, keeping material out of landfills and reducing the need for new raw resources.
• Pallet companies take old or broken wood pallets, break them down, and reuse the lumber to build new ones.

To qualify, there are a few clear rules:

• The same business must reuse the material. No passing it off to a sister company or third-party vendor.
• The recycled material can’t be sold, it has to stay in-house and be reused as part of your normal manufacturing process.

If your operation checks those boxes, this exemption can save you the hassle of applying for a full recycling approval. 

Exemption #3: Small-Scale Tree Waste Recycling

If you're a landscaper, tree service, or local contractor, Exemption #3 might be exactly what you’ve been looking for.

This exemption is designed for small-scale operations that handle vegetative waste - think tree trunks, limbs, branches, and wood chips. It’s ideal for businesses that generate or manage green waste but don’t want (or need) the full burden of a Class B Recycling Approval.

Here’s what you need to know to qualify:

• You can store up to 7,500 cubic yards of material on-site at any given time.
• You’re only allowed to process materials four times per year, and each processing period must be less than two weeks long.
• All material must be removed from the site within one year; no long-term storage allowed.

This exemption gives smaller operators a practical and legal way to manage tree waste without going through the full permitting process. But like all NJDEP exemptions, it’s conditional. That means you’ve got to stick to the limits, or you risk falling out of compliance.

Exemption #5: The Tire Transfer-Only Exemption

Got tires? If you’re in the business of collecting, storing, or moving used tires... but not shredding, cutting, or processing them, then Exemption #5 might be the perfect fit.

This exemption is all about transfer, not treatment. That means you’re allowed to temporarily store and move tires from point A to point B without triggering the need for a full NJDEP recycling approval.

To qualify, you’ll need to follow a few key rules:

• You can store up to 5,000 tires per month.
• All tires must be stored indoors or in covered containers or trailers. Absolutely no outdoor piles (those are a quick way to lose your exemption).
• Tires must be removed from the site within one year.

We see this exemption used all the time by tire shops, auto garages, and small-scale transfer stations. It’s one of the most straightforward and surprisingly flexible exemptions out there, as long as you stick to the conditions.

Exemption #7: Temporary Storage of Class B Materials

If you're a contractor handling concrete, asphalt, wood debris, or other Class B recyclable materials, Exemption #7 is one you’ll definitely want to know about.

This exemption allows for the short-term storage of these materials (no processing, no crushing, no grinding) just storage. It’s a great fit for businesses that need a temporary solution before hauling materials to a licensed recycling facility.

Here’s what the NJDEP expects if you want to use it:

• You can only store materials for up to 60 days, no exceptions.
• Processing is not allowed under any circumstances. This is strictly for storage.
• Materials must be kept in sealed, leak-proof containers that prevent runoff (think roll-off containers with covers or similar setups).
• You’re required to keep clear documentation showing the origin, quantity, and final destination of everything you store.

We see this used often by construction companies, demolition contractors, and site managers who just need a staging area before shipping out material. It’s simple and practical, but you’ve got to follow the rules closely, especially when it comes to time limits and recordkeeping.

Exemption #13: The Yard Trimmings Composting Exemption

If you’re looking to compost leaves, branches, and a bit of grass, Exemption #13 could be your ticket to doing it legally, without the hassle of a full Class C recycling permit.

This exemption is especially popular with municipalities, landscapers, and farmers who want to turn yard trimmings into useful compost without spending years navigating NJDEP red tape.

Here’s what the rules say:

• You can handle up to 10,000 cubic yards of yard trimmings per year.
• Grass is allowed, but it can’t make up more than 10% of your total volume.
• Compost piles (aka windrows) must be placed 50 to 500 feet from property lines, depending on your local zoning rules.
• Someone on your team must complete an NJDEP-approved composting course.
• The site must be listed in your county’s Solid Waste Management Plan.

Yes, this exemption comes with more strings attached than some of the others, but compared to a full-blown Class C permit, it’s still a much quicker and more manageable path.

Exemption #20: The Contractor’s Exemption

If you're a contractor who handles your own concrete, asphalt, brick, or block debris, this exemption can be a huge time and cost saver.

Exemption #20 - commonly known as the Contractor’s Exemption - allows you to reuse your own construction materials without needing to go through the NJDEP’s full recycling approval process. It’s one of the most widely used exemptions in the state, especially by road crews, builders, and demo companies who manage their materials in-house.

But like all exemptions, there are clear boundaries:

• You have to generate and reuse the material yourself. That means no accepting materials from third parties or other jobs.
• You can’t resell or distribute the material. This is for your own reuse only, on your own job sites.

This exemption is great for operations that want to keep things efficient, compliant, and self-contained. But if you plan to process or sell material, or handle debris from other contractors, you'll need to look at other approvals.

Exemption #22: The Limited Leaf & Grass Transfer Exemption

If you're only handling small amounts of leaves and grass, and you're not composting or processing anything, Exemption #22 might be all you need to stay compliant.

This exemption is designed for simple, small-scale operations that just need to receive, temporarily store, and transfer leaves and grass clippings. No turning piles, no screening compost, just short-term handling.

Here are the key limits:

• Up to 3,000 cubic yards of leaves per year
• Up to 1,000 cubic yards of grass per year
• Absolutely no processing - this is strictly for storage and transfer

We see this exemption used most often by DPW yards, landscapers, and local composting groups that collect materials seasonally and ship them off to larger, approved facilities.

It’s straightforward, flexible, and a lot easier to implement than a full recycling permit, as long as you stick to the volume caps and don’t do any on-site processing.

Final Thoughts: Is a Recycling Exemption Right for Your New Jersey Business?

If your operation qualifies for one of these exemptions, you could avoid months (or even years) of paperwork, permitting headaches, and hefty costs. For many businesses, exemptions offer a faster, simpler path forward.

But here’s the catch: every exemption comes with strict rules, and those rules can shift over time. In fact, some of these exemptions are currently under review by the NJDEP, which means staying compliant today doesn’t guarantee you’ll still be in the clear tomorrow.

That’s where we come in.

At RMA, we help businesses across New Jersey make sense of recycling regulations, whether you’re applying for a full recycling approval or trying to figure out if an exemption will work for your situation. We know the rules, we stay on top of changes, and we’ll give you honest advice about the smartest, most compliant path forward.

Still have questions? Get in touch with us for a free consultation. Whether it’s by phone, email, or through the form below, we’re happy to talk it out and help you get your recycling operation off the ground the right way.