ISRI awaits progress on rail, mutilated coins issues

The Washington-based Institute of Scrap Recycling Industries (ISRI) continues to lobby for clarity on freight railcar switching procedures and for auto shredder operators to be able to work directly with the United States Mint to redeem damaged coins collected via the shredding process.

In an update sent by ISRI President Robin Wiener, the association’s chief lobbyist Billy Johnson characterizes the rail issue as one that might be addressed by a government agency yet this spring. On the mutilated coins front, however, it says its attempt to improve that situation has been blocked by Congress’ inability to pass a 2024 appropriations package.

Last September, the federal Surface Transportation Board (STB) issued a notice regarding a proposed rule approving reciprocal switching for inadequate service, which the agency says focuses on providing rail customers with access to reciprocal switching as a remedy for poor service.

According to ISRI, however, recyclers who ship by rail will benefit more clearly if the STB either revokes or partially revokes commodity exemptions found within the proposed rule. Ferrous scrap is the most widely shipped recyclable shipped by rail, although shippers of some nonferrous grades and old corrugated containers (OCC) also tap into the freight rail network.

According to Johnson, ISRI submitted formal comments and met with the STB regarding that aspect of its Competitive Switching policy.

“We anticipate a decision from the STB in late spring [that] will affect exempt shippers and may lead to a partial revocation,” ISRI says, adding, “The railroads are expected to contest the decision.”

The mutilated coins issue has been on ISRI’s agenda since July 2019. That month, a program formerly operated by the U.S. Mint that made partial payment for coins harvested by metals shredding plant operators was suspended. (Operators of automobile shredding plants recover mutilated coins in their downstream sorting systems.)

According to ISRI, it worked with lawmakers to insert language into the U.S. Treasury Department’s 2024 appropriations package to restart the mutilated coin redemption program.

However, the U.S. government is currently funded by a continuing resolution, since Congress has not passed a 2024 Treasury appropriations bill, notes ISRI.

“We are working with congressional staff to reintroduce language to resume the program into the 2025 Treasury appropriations bill,” ISRI says.