LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 839
STATE OF NEW JERSEY
218th LEGISLATURE
DATED: APRIL 2, 2018
SUMMARY
Synopsis: |
Prohibits offshore oil and gas exploration, development, and production in State waters, and issuance of DEP permits and approvals for activities associated with offshore oil and gas activities. |
Type of Impact: |
Potential expenditure increase to the General Fund. |
Agencies Affected: |
Department of Environmental Protection. |
Office of Legislative Services Estimate |
|
Fiscal Impact |
Annual Cost |
State Expenditure Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the Department of Environmental Protection (DEP) could incur additional indeterminate costs to review each proposed lease, license, permit, or plan for exploration, development, or production of oil or natural gas in the Atlantic region of the exclusive economic zone of the United States to determine if the proposal can reasonably be expected to affect State waters.
BILL DESCRIPTION
This bill would prohibit offshore oil or natural gas exploration, development, and production in State waters (i.e., within three miles offshore), and prohibit the leasing of tidal or submerged lands in State waters for the purposes of oil or natural gas exploration, development, or production.
Additionally, the bill would prohibit the DEP from issuing any permits and approvals for any development associated with offshore drilling in State waters or outside State waters. The bill would also prohibit the DEP from permitting, approving, or otherwise authorizing any oil or natural gas exploration, development, or production in State waters, and from developing, adopting, or endorsing any plans for the exploration, development, or production of oil and natural gas in State waters.
The bill directs the DEP to implement the provisions of the bill through the enforceable policies of the State, including, but not limited to, any rules and regulations adopted pursuant to R.S.12:5-3, commonly referred to as the “Waterfront Development Law.” The bill also directs the DEP Commissioner to submit this bill, within 30 days after enactment into law, to the National Oceanic and Atmospheric Administration under the provisions of the federal “Coastal Zone Management Act of 1972” for incorporation into the enforceable policies of the approved State coastal management program.
Lastly, the bill would require the DEP to review any proposed oil or natural gas lease, license, permit, or plan for exploration, development, or production of oil and natural gas in the Atlantic region of the U.S. exclusive economic zone (i.e., within three miles offshore) to determine if the proposal can reasonably be expected to affect State waters, particularly in terms of proximity to State waters or to the Gulf Stream south of State waters. Whenever such a review results in an affirmative finding, the commissioner would be required to advise the Governor thereof and take all actions necessary to initiate a consistency review under the federal “Coastal Zone Management Act of 1972.”
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS notes that the DEP currently performs federal consistency reviews for certain other types of coastal projects; however, in recent years the DEP has not performed nor has it needed to perform any consistency reviews for a proposed lease, license, permit, or plan for exploration, development, or production of oil or natural gas in the Atlantic region of the U.S. exclusive economic zone to determine if such a proposal can reasonably be expected to affect State waters. The DEP has existing staff in place to perform federal consistency reviews, but the department will probably incur some additional administrative costs to review potentially complex offshore development proposals. The OLS has insufficient information from which to derive an estimate of the marginal costs of fully complying with the bill’s mandate.
Section: |
Environment, Agriculture, Energy and Natural Resources |
Analyst: |
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.).