LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 1954

STATE OF NEW JERSEY

217th LEGISLATURE

 

DATED: DECEMBER 20, 2017

 

 

SUMMARY

 

Synopsis:

Makes changes to funding provisions for financial assistance and grants from Hazardous Discharge Site Remediation Fund.

Types of Impact:

Reallocation of Hazardous Discharge Site Remediation Fund resources.  Indeterminate fiscal impact on municipalities and counties.

Agencies Affected:

Department of Environmental Protection, New Jersey Economic

Development Authority, municipalities, and counties.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

Reallocation of Hazardous Discharge Site Remediation Fund Resources

Indeterminate

 

Local Government Revenue Impact

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that this bill would reallocate available Hazardous Discharge Site Remediation Fund (HDSRF) resources among qualified applicants for HDSRF grants and loans for the remediation of eligible contaminated sites.  Given that demand for assistance exceeds available resources, the OLS anticipates that the bill would not alter the total amount of financial assistance provided annually.   

·         The reallocation of available HDSRF resources may affect the revenues of municipalities and counties.  The OLS, however, cannot determine to what extent the bill would alter:  a) the total amount of HDSRF financial assistance that will be awarded to counties and municipalities; and b) amounts of financial assistance that will be awarded to a particular municipality or county. 

·         The HDSRF is capitalized by constitutionally dedicated moneys from the State Corporation Business Tax.  These moneys are appropriated to the New Jersey Economic Development Authority (EDA) for site cleanups on a formulaic basis in the Annual Appropriations Act.  Approximately $10 million in FY 2017 Corporation Business Tax collections was appropriated for this purpose and $11 million is appropriated therefor in FY 2018.

BILL DESCRIPTION

 

      This bill revises the criteria for the awarding of HDSRF grants and loans for the remediation of eligible contaminated sites.  The bill reduces maximum award amounts for individual remediation projects; restricts eligibility criteria; revises the priority for the awarding of loans and grants from the fund; limits individual grant awards available to municipalities, counties, and redevelopment entities for projects in brownfield development areas; and establishes a minimum percentage of available HDSRF resources that must be used for grants to municipalities, counties, and redevelopment entities for remediation projects that are not sited in brownfield development areas.

      HDSRF grants and loans are available to public entities, private entities, and non-profit organizations at various stages of the remediation process.  The Department of Environmental Protection and the EDA co-administer the program.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that this bill would reallocate available HDSRF resources among qualified applicants for HDSRF grants and loans for the remediation of eligible contaminated sites.  Given that demand for assistance exceeds available resources, the OLS anticipates that the bill would not alter the total amount of financial assistance provided annually.  

      The reallocation of available HDSRF resources may affect the revenues of municipalities and counties.  The OLS, however, cannot determine to what extent the bill would alter:  a) the total amount of HDSRF financial assistance that will be awarded to counties and municipalities; and b) amounts of financial assistance that will be awarded to a particular municipality or county.  The establishment or reduction of caps for individual projects, for example, may allow additional municipalities and counties to receive HDSRF support; however, the bill may reduce the award amounts that other municipalities and counties would have received under current law.

      The HDSRF is capitalized by constitutionally dedicated moneys from the State Corporation Business Tax.  These moneys are appropriated to the EDA for site cleanups on a formulaic basis in the Annual Appropriations Act.  Approximately $10 million in FY 2017 Corporation Business Tax collections was appropriated for this purpose and $11 million is appropriated therefor in FY 2018.

 

Section:

Environment, Agriculture, Energy and Natural Resources

Analyst:

Neha Mehta Patel

Associate Fiscal Analyst

Approved:

Frank W. Haines III

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).