Copper Recycling Law's Effect on Recycling Industry

New Copper Law Faces Legal Pushback From Recycling Industry

The Recycled Materials Association (ReMA) has filed a lawsuit against the Minnesota Department of Commerce. The suit challenges a new copper sales licensing law set to take effect in 2025. ReMA claims the law violates constitutional protections and imposes unnecessary burdens on legitimate recyclers.

Industry Pushes Back on Licensing Requirements

The Minnesota law requires anyone selling copper—including scrap metal dealers and individuals—to obtain a license. Lawmakers introduced the law to reduce theft of in-use copper materials such as wiring and public infrastructure. However, ReMA argues that the law overreaches and unfairly penalizes law-abiding sellers.

ReMA’s legal complaint focuses on the law’s delegation of authority to the Department of Commerce. According to the group, Commissioner Grace Arnold would hold excessive control over the licensing process. ReMA argues this grants vague and unchecked regulatory power without adequate legal limits, violating the separation of powers.

The group also notes the law impacts a wide range of sellers. From large scrapyards to individuals recycling old appliances or end-of-life vehicles, many would face new administrative hurdles. These groups, ReMA says, have no connection to copper theft but now face increased costs and red tape.

Industry Voices Call for Balanced Regulation

The law was created to address rising copper theft, which has led to serious public safety risks. Damaged utility infrastructure and streetlight outages are common results of stolen copper. Yet, many in the recycling industry believe lawmakers did not engage the sector during policy drafting.

Neil Byce, co-owner of CW Metals and Nordic Metals, voiced concern over the legislation. He acknowledged the state’s good intentions but criticized the lack of industry consultation. He warned that the law may unintentionally harm businesses that contribute positively to recycling and environmental goals.

ReMA has asked the court to declare the law unconstitutional. They also want the court to require the Minnesota Department of Commerce to adjust the licensing rules. ReMA’s goal is to maintain copper theft prevention efforts while protecting legal recyclers from harmful overregulation.

As this case moves forward, SuperMetalPrice will continue to provide updates and expert insight into the implications for the scrap metal and recycling sectors.