ASSEMBLY, No. 186
STATE OF NEW JERSEY
INTRODUCED JANUARY 9, 1997
By Assemblyman ROONEY
An Act concerning dry cleaning businesses and the use of perchloroethylene, and supplementing P.L.1954, c.212 (C.26:2C-1 et seq.) and P.L.1966, c.30 (C.54:32B-1 et seq.), and Title 34 and 58 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "New Jersey Dry Cleaning Business Assistance Act."
2. The Legislature finds and declares that the dry cleaners in the State are some of the most industrious and productive small businesses in the State providing a commonplace but important service to the residents of the State; that the use of perchloroethylene and other hazardous substances is a necessary part of the operation of these small businesses but has resulted in a prevalence of site contamination from perchloroethylene and other hazardous substances that can result in the contamination of surface and ground waters, including potable water supplies, which poses a significant threat to the health of State residents; that the cost of remediation of this contamination is exhorbitant and would often bankrupt the average small business owner; and that the use of perchloroethylene has also raised health concerns for employees and clients of dry cleaners even though the technology currently exists in the industry that can virtually eliminate any of these concerns through the upgrade of the machines used by dry cleaners in the State.
The Legislature further finds and declares that it is in the public interest to establish a fund, to be financed by a tax on perchloroethylene and registration fees imposed on dry cleaners, wholesale supply facilities, and distributors of perchloroethylene to be used to fund the remediation of sites contaminated with perchloroethylene from dry cleaning businesses.
The Legislature further finds and declares that it is in the public interest for the State to establish a loan fund and guarantee program for owners of dry cleaning businesses who require financial assistance to purchase and install "Generation 4 dry cleaning equipment"or more advanced equipment in order to minimize the public's exposure to perchloroethylene emissions caused by the operation of such machinery; that while "Generation 4 dry cleaning equipment" incorporates several advanced features that substantially reduce the amount of such releases, the cost of purchasing and installing this equipment makes it impractical for many small business owners to finance the purchase and installation thereof without financial assistance; that the funding of a financial assistance program by the New Jersey Economic Development Authority is an appropriate use of monies available to the authority; and that such a program will assist ongoing efforts to reduce the public's exposure to the levels of perchloroethylene emissions.
3. For the purposes of this act:
"Area source dry cleaner" means any sole proprietorship, partnership or corporation that operates one or more perchloroethylene dry cleaning facility, including, but not limited to facilities with owner-operated dry cleaning machines or coin-operated dry cleaning machines operated by customers;
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4);
"Commissioner" means the Commissioner of Environmental Protection;
"Contamination" or "contaminated" means perchloroethylene contamination at levels that require remediation of the site pursuant to State law;
"Control apparatus" means any device or machine which prevents or controls the emission of any air contaminant directly or indirectly into the outdoor atmosphere;
"Department" means the Department of Environmental Protection;
"Director" means the Director of the Division of Taxation in the Department of Treasury;
"Distributor" means any business, company, corporation or person selling perchloroethylene or recycled perchloroethylene to any area source dry cleaner or dry cleaning facility in the State;
"Dry cleaning" means the process of cleaning clothing, garments, textiles, fabrics, leather goods, and the like, using perchloroethylene;
"Dry cleaning facility" means a commercial establishment operated on a specific site that is engaged primarily in the business of cleaning clothing and other fabrics by a process that involves the use of perchloroethylene, including but not limited to, an individual establishment owned by a sole proprietor, partnership or corporation, or one of a number of commercial establishments owned by a sole proprietor, or by a partnership or corporation, that operates as an area source dry cleaner;
"Dry cleaning solvents" means any and all nonaqueous substances used in the cleaning of clothing and other fabrics, including, but not limited to perchloroethylene, also known as tetrachloroethylene, or its breakdown products;
"Generation 1 dry cleaning equipment" means dry cleaning equipment that is transfer equipment that uses a cold washer and dryer, is composed of a cleaning machine and a reclaimer with a fresh air damper, and is designed to vent during door openings and the aeration cycle of the dry cleaning process;
"Generation 2 dry cleaning equipment" means dry cleaning equipment that is open dry to dry equipment with a water cooled condenser, is composed of a dry-to-dry machine with fresh air intake, and is designed to vent during the aeration cycle of the dry cleaning process;
"Generation 3 dry cleaning equipment" means dry cleaning equipment that is closed refrigerated dry to dry equipment that is composed of a dry to dry refrigerated closed loop machine with or without a door fan;
"Generation 4 dry cleaning equipment" means dry cleaning equipment that is non-vented dry to dry equipment that is composed of a dry to dry refrigerated completely enclosed machine with an integral carbon adsorber, drying sensor and spill containment, and has a reduction of the level of perchloroethylene left in the drum of the machine to 300 parts per million or less before the machine is unloaded at the end of the dry cleaning process;
"Perchloroethylene" means perchloroethylene, tetrachloroethylene, their chemical equivalents and their breakdown products;
"Perchloroethylene emissions" means any gaseous or vaporous releases of perchloroethylene, tetrachloroethylene or its chemical equivalent, whether released into the indoor environment or outdoor atmosphere;
"Program" means the "New Jersey Dry Cleaning Business Assistance Program" to be established by the authority pursuant to section 14 of P.L. , c. (C. )(now before the Legislature as this bill);
"Remediation" means remediation as defined under section 23 of P.L.1993, c.139 (C.58:10B-1) and in accordance with the standards and procedures established pursuant to P.L.1993, c.139 (C.58:10B-1 et seq.) and the rules and regulations adopted pursuant thereto; and
"Wholesale supply facility" means a commercial establishment that supplies perchloroethylene to dry cleaning facilities.
4. a. The Department of Environmental Protection shall establish a registration program for all dry cleaning facilities, wholesale supply facilities and distributors of perchloroethylene in the State. Every dry cleaning facility, wholesale supply facility and distributor of perchloroethylene shall register with the department on the January 1 immediately following enactment of P.L. , c. (C. )(now before the Legislature as this bill), and annually on January 1 thereafter. The department shall require as part of the registration the following information:
(1) From the dry cleaning facilities, the number of machines operated and the number of gallons of perchloroethylene used per month for the year preceding the registration;
(2) From the wholesale supply facilities, the name and address of each dry cleaning facility supplied and the number of gallons of perchloroethylene supplied to each dry cleaning facility per month per facility for the year preceding the registration; and
(3) From distributors, the destination of all perchloroethylene distributed, with delivery dates and amount of perchloroethylene delivered per destination for the year preceding the registration.
b. The department shall collect $100 for each registration and renewal application and shall deposit these moneys into the Dry Cleaner Site Remediation Fund established pursuant to section 5 of P.L. , c. (C. )(now before the Legislature as this bill).
c. The department shall transmit the list compiled and the information collected pursuant to subsection a. of this section to the Director of the Division of Taxation in the Department of the Treasury on January 1 of the year next following the enactment of P.L. , c. (C. )(now before the Legislature as this bill) and annually thereafter, provided that the department may update the list more frequently as it deems appropriate.
d. The director shall utilize the list compiled by the department to notify the owners or operators of the facilities thereon that they may be liable for the tax levied pursuant to section 6 of P.L. , c. (C. ) (now pending before the Legislature as this bill). The director may use the information compiled by the department for the purposes of enforcing subsection e. of this section and section 6 of P.L. , c. (C. )(now before the Legislature as this bill).
e. Any person who fails to comply with the requirements of this section or falsifies any documentation or information required pursuant to this section shall be subject to a fine of not less than $2,500 for the first offense, not more than $5,000 for the second offense and not more than $10,000 for a third or subsequent offense, in addition to any penalties imposed pursuant to subsection e. of section 6 of P.L. , c. (C. )(now before the Legislature as this bill).
5. a. The Dry Cleaner Site Remediation Fund, hereinafter referred to as "the fund," is established as a special nonlapsing revolving fund. The fund shall be administered by the Department of Environmental Protection, and shall be credited with all fees and taxes collected pursuant to P.L. , c. (C. )(now before the Legislature as this bill). Interest received on moneys in the fund shall be credited to the fund. The department shall not obligate funds in excess of the amount available in the fund.
b. Unless otherwise expressly provided for by the specific appropriation thereof by the Legislature, which shall take the form of a discrete legislative appropriations act and shall not be included within the annual appropriations act, all available moneys in the fund shall be appropriated annually solely for the following purposes and no others:
(1) Prompt investigation and assessment of the contaminated dry cleaning facility or wholesale supply facility site;
(2) Expeditious and effective treatment or restoration of potable water supplies;
(3) Remediation of contaminated dry cleaning facility or wholesale supply facility sites, which shall consist of remediation of affected soil, groundwater, and surface waters, using the most cost-effective alternative that is technologically feasible and reliable and that provides adequate protection of the public health, safety and welfare and minimizes environmental damage, in accordance with the remediation standards established by P.L.1993, c.139, except that nothing in this subsection shall be construed to authorize the use of moneys in the fund for the payment of any remediation costs that may be associated with, but are not integral to, site remediation of a dry cleaning facility. The remediation permitted pursuant to this subsection shall include contamination across property lines if the contamination is attributed to the operation of a dry cleaning facility on a nearby property currently or historically on the property;
(4) Remediation of contamination caused by the transport of perchloroethylene to or from a dry cleaning facility or wholesale supply facility if the contamination occurs within 200 feet of the property line of a dry cleaning facility to or from which the dry cleaning solvents were transported;
(5) Maintenance and monitoring of a contaminated dry cleaning facility or wholesale supply facility sites; and
(6) Payment of any other reasonable costs associated with the site remediation of sites eligible for site remediation funding pursuant to P.L. , c. (C. )(now before the Legislature as this bill), as determined by the department, including the administrative expenses of the department incurred implementing the requirements and purposes of P.L. , c. (C. )(now before the Legislature as this bill), except that in no fiscal year shall the amount transferred from the fund to the department for administrative expenses exceed 10% of the moneys collected in that fiscal year and available in the fund.
c. No moneys in the fund shall be used for the following purposes:
(1) Site remediation of sites contaminated by dry cleaning solvents where the contamination at the sites did not result from the operation of a dry cleaning facility or wholesale supply facility;
(2) Site remediation of sites that are contaminated by the transport of dry cleaning solvents to or from a dry cleaning facility or wholesale supply facility, except as provided in paragraph 4 of subsection b. of this section;
(3) Funding any costs related to the restoration of any site that has been identified to qualify for listing, or is listed, on the National Priority List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 as amended by the Superfund Amendments and Reauthorization Act of 1986, or that is under an order from the United States Environmental Protection Agency pursuant to section 3008 (h) of the Resource Conservation and Recovery Act as amended, or has obtained, or is required to obtain a permit for the operation of a hazardous waste treatment, storage or disposal facility, a postclosure permit, or a permit pursuant to the federal Hazardous and Solid Waste Amendments of 1984; and
(4) Payment of any costs associated with any fine, penalty, or action brought against a dry cleaning facility owner or operator or wholesale supply facility under local, state or federal law.
6. a. There is hereby levied upon each distributor selling perchloroethylene in the State, including but not limited to the owner or operator of a wholesale supply facility selling perchloroethylene in the State, a tax to fund the site remediation of any property in the State that was formerly the site of a dry cleaning facility or wholesale supply facility, and is currently contaminated with perchloroethylene. For any dry cleaning facility that buys perchloroethylene outside of the State or from a source not registered with the department as a distributor or a wholesale supply facility, the tax shall be levied on the dry cleaning facility. The tax shall also be levied on any distributors of recycled perchloroethylene in the State and on any dry cleaning facility that buys recycled perchloroethylene if it is bought from a source that is not registered with the department. Where such person has failed to file a return or pay the tax imposed by P.L. , c. (C. ) (now before the Legislature as this bill) within 60 days after the due date thereof, the Director of the Division of Taxation shall forthwith take appropriate steps to collect the tax from the owner of the dry cleaning facilities supplied by the wholesale supply facility.
b. The tax shall be $5 per gallon of perchloroethylene sold to dry cleaning facilities in the State. Upon receipt of the tax payment, the director shall authorize the transfer and deposit of the moneys received into the fund. Interest received on moneys in the fund shall be credited to the fund.
c. Every taxpayer pursuant to this section shall on or before the 20th day of the month following the close of each tax period render a return under oath to the director on such forms as may be prescribed by the director indicating the number of gallons of perchloroethylene sold and the taxpayer shall pay the full amount of the tax due.
d. If a return required by P.L. , c. (C. )(now before the Legislature as this bill) is not filed, or if a return when filed is incorrect or insufficient in the opinion of the director, the amount of tax due shall be determined by the director from such information as may be available. Notice of such determination shall be given to the taxpayer liable for the payment of the tax. Such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed, within 30 days after receiving notice of such determination, shall apply to the director for a hearing, or unless the director on his own motion shall redetermine the same. After such hearing the director shall give notice of his determination to the person to whom the tax is assessed.
e. Any taxpayer who shall fail to file his return when due or to pay any tax when the same becomes due, as herein provided, shall be subject to such penalties and interest as provided in the "State Tax Uniform Procedure Law," R.S.54:48-1 et seq. If the Division of Taxation determines that the failure to comply with any provision of this section was excusable under the circumstances, it may remit such part or all of the penalty as shall be appropriate under such circumstances.
f. In addition to the other powers granted to the director in this section, the director is hereby authorized and empowered:
(1) To delegate to any officer or employee of the division powers and duties assigned to the director that the director may deem necessary to carry out efficiently the provisions of this section, and the person or persons to whom such power has been delegated shall possess and may exercise all of the powers and perform all of the duties delegated by the director;
(2) To prescribe and distribute all necessary forms for the implementation of this section.
g. The tax imposed by P.L. , c. (C. )(now before the Legislature as this bill) shall be governed in all respects by the provisions of the "State Tax Uniform Procedure Law," R.S.54:48-1 et seq., except only to the extent that a specific provision of P.L. , c. (C. )(now before the Legislature as this bill) may be in conflict therewith.
7. No provision of P.L. , c. (C. )(now before the Legislature as this bill) shall not affect actions or proceedings, civil or criminal, brought by or against the Department of Environmental Protection and pending on the effective date of P.L. , c. (C. ) (now before the Legislature as this bill).
8. a. The Department of Environmental Protection shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52-14B-1 et seq.), rules and regulations providing for the awarding of grants from the Dry Cleaner Site Remediation Fund established pursuant to section 5 of P.L. , c. (C. )(now before the Legislature as this bill). The rules and regulations shall include provisions establishing the criteria for evaluating applications, the information required by the department to perform the evaluations, the application and review process to be followed, and any other provisions required to implement section 11 of P.L. , c. (C. ) (now before the Legislature as this bill). The rules and regulations may also establish a nominal fee for the processing and review of the applications.
b. Any owner of property that is currently, or formerly was, the site of a dry cleaning facility or a wholesale supply facility and is currently contaminated by perchloroethylene shall be eligible to apply for a grant pursuant to the rules and regulations established pursuant to subsection a. of this section. No grant awarded pursuant to this section shall exceed $100,000 per application, per fiscal year.
c. Prior to awarding any grant pursuant to this section, the department shall evaluate the site remediation required, the most cost effective and efficient method of remediating the site, and the cost of the remediation. The department shall also determine, to the extent practicable, whether the contamination was due to willful or negligent contamination by a dry cleaning facility or a wholesale supply facility. If the department determines that the dry cleaning facility or the wholesale supply facility willfully contaminated the site or reasonably could have prevented the contamination, the department shall require the owner or operator of the dry cleaning facility to pay one fourth of the cost of the site remediation, provided that the owner or operator of the dry cleaning facility has liquid assets equal to or greater than 4 times the estimated cost of the site remediation. For the purposes of this subsection, "liquid assets" mean any cash or personal investments that are convertible into cash and shall not include the gross receipts of the dry cleaning facility or the wholesale supply facility or the value of the business, equipment, or property of the dry cleaning business or the wholesale supply facility. The department may require a grant applicant to show to the satisfaction of the department that the grant applicant has no other source for funding the remediation, or if other sources have been used or are available, the extent to which and the reasons that the other sources are not sufficient and a grant is justified.
d. To the extent practicable and necessary, the department shall negotiate between any parties in dispute over liability for the contamination and shall assign liability and cost as necessary. Any party who is assigned liability for contamination of a site eligible for remediation funded by the Dry Cleaner Site Remediation Fund shall be eligible to apply for a grant from the fund.
e. If the party responsible for the contamination is unknown or cannot be determined, the department may approve a grant to the party seeking to remediate the property.
9. a. Within a year from the date of the discovery of the contamination, or if the date of discovery is prior to the effective date of P.L. , c. (C. )(now before the Legislature as this bill), within one year of the effective date of P.L. , c. (C. )(now before the Legislature as this bill), the person seeking or required to remediate a contaminated site may apply to the department for a grant of up to $100,000 for the cost of the remediation.
b. The department shall determine within a time frame set by rule or regulation the eligibility of the grant applicant, the amount of the grant to which the grant applicant is entitled, the availability of moneys in the fund to issue the grant, and if the grant is approved or denied. If the grant is approved but the department has determined the moneys in the fund are inadequate to issue the grant, the grant applicant shall be assigned a place on a grant waiting list and shall be issued the grant when moneys become available, subject to any other review or approvals required pursuant to P.L. , c. (C. )(now before the Legislature as this bill).
c. Prior to grant approval and issuance, the department shall determine with the grant applicant the appropriate methods of remediation and a timetable for implementing the site remediation and the cost.
d. Upon completion of the site remediation specified pursuant to subsection c. of this section, the department shall review the results of the remediation and determine if it has been sufficient to comply with State laws concerning the levels of acceptable contamination and site remediation. Within a period of time to be set by rule or regulation, the department shall notify the grant applicant in writing of the status of the remediation, any further remediation that may be required and the estimated cost of that further action.
e. Any grant applicant that has been notified, pursuant to subsection d. of this section, that further remediation is required may apply, in a subsequent fiscal year to the fiscal year in which the initial grant was approved, for an additional grant in the amount of the estimated cost to complete the remediation of the site or $100,000, whichever is less, and shall be eligible for additional grants for a total of grants received not to exceed $500,000.
f. Application for grant moneys filed pursuant to this section shall be considered good faith effort on the part of a property owner or other person seeking or required to remediate a contaminated site and no penalties or violations shall be assessed against the person concerning the contamination of the site for which the grant has been applied until final resolution of the grant application review and appeal process.
10. The commissioner, the State Treasurer and the director, respectively, are authorized to adopt, amend, repeal, and enforce such rules and regulations pursuant to the Administrative Procedure Act, P.L.1968, c.410 (C.52:14B-1 et seq.) as they may deem necessary to accomplish their respective purposes and responsibilities under P.L. , c. (C. )(now before the Legislature as this bill).
11. a. The commissioner shall prepare and submit an annual report to the Legislature and Governor, which shall describe the quantity of site remediation efforts and the quality of the remediation, the costs and damages paid by and recovered for the fund, and the economic and environmental impacts on the State as a result of the administration of P.L. , c. (C. )(now before the Legislature as this bill).
b. The department shall annually submit a written report to the Senate Environment Committee, the Senate Natural Resources and Economic Development Committee, the Assembly Agriculture and Waste Management Committee, and the Assembly Environment, Science and Technology Committee, or their successors, which shall include the information required pursuant to subsection a. of this section as well as the list transmitted to the Director of the Division of Taxation in the Department of the Treasury pursuant to subsection c. of section 4 of P.L. , c. (C. )(now before the Legislature as this bill).
12. If the United States Congress enacts legislation providing compensation for the remediation of sites contaminated with perchloroethylene, the commissioner shall determine to what degree that legislation provides the needed protection for the public health, businesses and the environment and shall make the appropriate recommendations to the Legislature for amendments to P.L. , c. (C. )(now before the Legislature as this bill).
13. The Department of Environmental Protection, in consultation with the New Jersey Economic Development Authority, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations providing for the site selection, remediation criteria, eligibility for funds, and criteria for reviewing, approving and rejecting applications for moneys from the fund.
14. There is established within the authority, the New Jersey Dry Cleaning Business Assistance Program. The purpose of the program shall be to provide financial assistance to owners of dry cleaning businesses for the purchase and installation of Generation 4 dry cleaning equipment which reduces perchloroethylene emissions or subsequent generations of dry cleaning equipment which reduce perchloroethylene emissions to the same level or lower than Generation 4 equipment. The program shall be administered by the authority in consultation with the Department of Commerce and Economic Development. The purpose and activity of the program shall be deemed to be supplementary to, and not in lieu of, the powers of the authority.
15. a. In order to effectuate the purpose of the program, the authority shall establish and maintain a special, revolving account to be known as the "New Jersey Dry Cleaning Business Assistance Account," hereinafter the "assistance account," which shall be credited with:
(1) an amount from the Economic Recovery Fund established pursuant to section 4 of P.L.1992, c.16 (C.34:1B-7.13) which the authority determines is necessary to effectively implement the program, within the limits of funding available from the Economic Recovery Fund, and based upon the response to the program by owners of dry cleaning businesses and by participating banks; (2) any moneys that shall be received by the authority from the repayment of the moneys in the assistance account used to provide direct loans or loan guarantees pursuant to this section and interest thereon; and (3) other moneys of the authority, including but not limited to, any moneys available from other business loan programs administered by the authority which it determines to deposit therein.
b. The authority may use the moneys in the assistance account established pursuant to this section for:
(1) funding direct loans, the amounts of which shall be determined by the authority in consultation with the the Department of Commerce and Economic Development, to assist eligible dry cleaning businesses with the purchase and installation of Generation 4 dry cleaning equipment or the subsequent generations specified in section 20 of P.L. , c. (C. )(now before the Legislature as this bill), and guaranteeing up to 25% of the amounts of loans to be provided by participating banks in accordance with section 17 of P.L. , c. (C. )(now before the Legislature as this bill);
(2) making payments in fulfillment of the terms of any direct loans, or guarantee agreements, entered into pursuant to section 17 of P.L. , c. (C. )(now before the Legislature as this bill); and
(3) defraying the administrative costs of the authority in carrying out the purposes and provisions of P.L. , c. (C. )(now before the Legislature as this bill).
c. The portion of the direct loans provided by participating banks may be guaranteed by the authority pursuant to section 17 of P.L. , c. (C. )(now before the Legislature as this bill) if the owner of the dry cleaning business has qualified therefor by demonstrating to the satisfaction of the authority that the funds needed to purchase the Generation 4 dry cleaning equipment or subsequent generations of equipment as specified in section 17 of P.L. , c. (C. )(now before the Legislature as this bill) would not otherwise be available to the business.
d. The maximum amount and term of a loan or guarantee made pursuant to P.L. , c. (c. )(now before the Legislature as this bill) shall be determined by the authority.
16. The authority shall establish sufficient reserves and liquid reserves, aside from those moneys required to provide a sufficient and actuarially sound basis for its pledges contained in any loan, or guarantee agreement entered into pursuant to P.L. , c. (c. ) (now before the Legislature as this bill).
17. The authority shall enter into agreements with participating banks to use the moneys from the assistance account to provide up to 25% of the direct loans to enable owners of dry cleaning businesses to purchase and install Generation 4 dry cleaning equipment.
The agreements shall further provide that the balance of the loans for financing the purchase of such systems for eligible dry cleaning businesses shall come from participating banks. The authority may also use moneys from the assistance account to guarantee up to 25% of the portion of the loans to be provided by the participating banks in those cases where the authority determines that such a guarantee is necessary for an agreement authorized by this section. The agreements shall also provide for any other terms or conditions which the authority and the participating banks stipulate to as being necessary or desirable to make loans, to guarantee loans and to otherwise effectuate the purpose of the program.
18. In addition to the duties of the authority required under section 6 of P.L.1983, c.303 (C.52:27H-65), the authority shall, in consultation with the the Department of Commerce and Economic Development, prepare a report within one year following the effective date of P.L. , c. (C. )(now before the Legislature as this bill). The report shall include, but not be limited to, a description of the demand for the program from eligible dry cleaning businesses and participating banks, the efforts made by the authority to promote the program, the total amount of loans, or guarantees issued by the authority pursuant to the program and an assessment of the effectiveness of the program in meeting the goals of P.L. , c. (C. ) (now before the Legislature as this bill). The authority shall submit its report to the Governor and the Legislature, along with any recommendations for legislation to improve the effectiveness of the program.
19. The authority and the the Department of Commerce and Economic Development shall jointly adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to effectuate the purposes of P.L. , c. (C. )(now before the Legislature as this bill) including, but not limited to, the making of loans, and the issuance of guarantees pursuant to P.L. , c. (C. )(now before the Legislature as this bill).
20. a. On and after the effective date of P.L. , c. (C. ) (now before the Legislature as this bill), any person establishing a new area source dry cleaner, installing or replacing dry cleaning equipment and machines, or expanding an existing area source dry cleaner into new locations or in the existing dry cleaning facility shall install or equip the facility with Generation 4 dry cleaning equipment or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle.
b. Within the two years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), all owners of an area source dry cleaner operating Generation 1 equipment shall replace their dry cleaning equipment with Generation 4 or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle. Within the three years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), all owners of an area source dry cleaner operating Generation 2 equipment shall replace their dry cleaning equipment with Generation 4 or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle. Within the four years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), all owners of an area source dry cleaner operating Generation 3 dry cleaning equipment shall replace their dry cleaning equipment with Generation 4 equipment, or to the extent permissible by federal law and any rules or regulations adopted pursuant thereto, retrofit the equipment with a carbon adsorber and an inward door fan which directs perchloroethylene emissions into the carbon adsorber at the rate of 100 feet per minute.
c. After seven years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), no person shall operate an area source dry cleaner in a residential building with a ventilation system for the facility that releases into the outdoor atmosphere perchloroethylene emissions greater than 50 parts per million. Area source dry cleaner ventilation systems releasing perchloroethylene emissions in excess of 50 parts per million shall be retrofitted with control apparatus or the ventilation system equipment shall be replaced with equipment that reduces the perchloroethylene emissions from the area source dry cleaner ventilation system to no greater than 5 parts per million.
21. a. The Department of Environmental Protection shall establish registration and certification procedures for persons and manufacturers installing and servicing dry cleaning equipment in the State to become authorized dry cleaner service and equipment providers. The department shall require every authorized dry cleaner service and equipment provider to provide:
(1) a five-year warranty on all parts, equipment and on-site service provided to any area source dry cleaner in the State, warranteeing that new equipment installed shall reduce the level of perchloroethylene left in the drum to 300 parts per million, and any part or service provided for dry cleaning equipment, other than installation of new equipment, shall achieve compliance with all applicable federal and State law, and,
(2) a minimum of 16 hours of training on the proper use and maintenance of the equipment to any area source dry cleaner that buys or leases Generation 4 dry cleaning equipment and a minimum of 4 hours to any area source dry cleaner that retrofits equipment to achieve a level of perchloroethylene emissions equal to or less than the maximum level permitted by P.L. , c. (C. )(now before the Legislature as this bill).
b. Every manufacturer, vendor or person involved in the sale or installation of dry cleaning equipment in the State shall register with and receive certification from the department as an authorized dry cleaner service and equipment provider.
c. No person or manufacturer may sell, offer for sale, cause to be offered for sale, lease or represent Generation 4 dry cleaning equipment or any other apparatus or equipment the installation of which is required to comply with the provisions of P.L. , c. (C. )(now before the Legislature as this bill) unless that person or manufacturer has registered with, and been certified by, the department as an authorized dry cleaner service and equipment provider.
22. Within one year of the effective date of P.L. , c. (C. ) (now before the Legislature as this bill), the Department of Environmental Protection shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing a random inspection program for area source dry cleaners. These rules and regulations shall provide for the monitoring and supervision of conversion and retrofitting of equipment, enforcement of the standards and requirements set forth in P.L. , c. (C. )(now before the Legislature as this bill), and penalties for violations of the standards and requirements. The rules and regulations may also include any other provisions deemed necessary by the department for the implementation and enforcement of P.L. , c. (C. )(now before the Legislature as this bill).
23. Nothing in P.L. , c. (C. )(now before the Legislature as this bill) shall be construed to supersede or otherwise interfere with the department's issuance of operating permits or its implementation of any federal program establishing national perchloroethylene air emission standards for dry cleaning facilities, except that, if the implementation of the program requires area source dry cleaners to retrofit or replace equipment or machines, the department shall require the area source dry cleaner to comply with the requirements of P.L. , c. (C. )(now before the Legislature as this bill), and in the event that emissions standards vary, the department shall enforce the most stringent standard for perchloroethylene emissions.
24. a. Receipts from sales of Generation 4 dry cleaning equipment, as defined in section 2 of P.L. , c. (C. )(now before the Legislature as this bill), and equipment and apparatus necessary to convert or retrofit existing dry cleaning equipment, for use directly and exclusively for the control or elimination of perchlorethylene emissions, or the reduction of such emissions to levels specified, pursuant to section 20 of P.L. , c. (C. )(now before the Legislature as this bill), are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32-B-1 et seq.).
This exemption shall not apply to tools or supplies used in connection with the installation or maintenance of equipment or apparatus described in this subsection.
b. The director, in conjunction with the Commissioner of the Department of Environmental Protection, shall promulgate regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to specifically identify, or to provide guidelines for the identification of, the equipment and apparatus which shall qualify for the exemption from taxation provided by P.L. , c. (C. )(now before the Legislature as this bill). In addition, the director shall promulgate such other regulations as are deemed necessary and appropriate for the administration of P.L. , c. (C. ) (now before the Legislature as this bill).
25. This act being necessary for the general health, safety, and welfare of the people of this State, shall be liberally construed to effect its purposes.
26. This act shall take effect on the first day of January following enactment.
STATEMENT
The bill provides assistance to dry cleaning businesses in the State for addressing problems associated with perchloroethylene by establishing a loan program and a grant program to fund the reduction of perchloroethylene emissions in dry cleaning facilities and the remediation of sites contaminated by perchloroethylene. Perchloroethylene is a hazardous substance and the solvent used in the dry cleaning industry as a cleaning agent.
The bill establishes The Dry Cleaner Site Remediation Fund,
to be administered by the Department of Environmental Protection for the funding of site remediation for dry cleaning facilities. Moneys in the fund would be collected from annual registration and renewal fees collected by the department and a tax of $5 per gallon of perchloroethylene imposed on distributors of perchloroethylene, wholesale supply facilities and dry cleaning facilities that buy perchloroethylene from sources that are not registered with the Department of Environmental Protection pursuant to the bill.
The bill further establishes a grant program for persons seeking to remediate sites that are contaminated by perchloroethylene. Sites that are, or were formerly, sites of dry cleaning facilities or wholesale supply facilities are eligible for grants under the program. The owner of the site may receive up to $100,000 for an initial remediation grant. The Department of Environmental Protection is directed to oversee the remediation and if the $100,000 is insufficient to complete the clean-up, the owner is eligible for additional grants not to exceed $100,000 in any calendar year. The total amount of grant moneys that may be awarded to any individual is $500,000. The Commissioner of Environmental Protection is directed to annually report the progress of the program to the Legislature and the Governor.
The bill also requires that dry cleaning businesses upgrade their machinery to Generation 4 equipment or subsequent generations that reduce perchloroethylene emissions below the levels attained by Generation 4 equipment. The bill allows Generation 3 equipment to be retrofitted instead of being replaced is such a retrofit is in compliance with federal law and the regulations adopted pursuant thereto. Generation 4 equipment is the stage of dry cleaning equipment that reduces the level of perchloroethylene in the machine to the minimum amount attainable with current technology, 300 parts per million. This reduction minimizes employees exposure to perchloroethylene but also reduces the public's exposure to the perchloroethylene emissions from residue on the items cleaned.
The bill further establishes a "New Jersey Dry Cleaning Business Assistance Program" in the New Jersey Economic Development Authority to assist owners of dry cleaning businesses in purchasing and installing state-of-the-art dry-cleaning equipment which reduces the amount of perchloroethylene released as part of the dry cleaning process. The program is intended to provide access to funding which might otherwise not be available to these businesses by directing the authority to make direct loans and to give loan guarantees, in conjunction with a consortium of participating banks, to eligible businesses for the purchase of more technologically advanced dry cleaning equipment.
The program will be administered by the authority in consultation with the Department of Commerce and Economic Development.
The bill establishes a special, revolving account to be known as the "New Jersey Dry Cleaning Business Assistance Account" (the assistance account), which shall be credited with such amount from the Economic Recovery Fund, established pursuant to section 4 of P.L.1992, c.16 (C.34:1B-7.13), as the authority shall determine is necessary to effectively implement the program based upon demand from eligible dry-cleaning businesses, and participating banks. The assistance account shall also be credited with other available moneys including, but not limited to, moneys in the business loan programs administered by the authority, which the authority determines to deposit therein.
The bill establishes a means to leverage the moneys in the assistance account through a public/private partnership between the Economic Development Authority and participating banks whereby up to 25% of the loan needed for the purchase of new dry cleaning equipment would be provided by the account with the balance of the loan to be provided by participating banks. Rules and regulations to administer the program would be adopted jointly by the authority and the Department of Commerce and Economic Development.
The bill requires the authority, in consultation with the department, to report back to the Governor and the Legislature within one year following the effective date of the bill on the status of the loan program and any recommendations for legislation to better effectuate the goals of the program.
Finally, the bill provides a tax exemption from the State sales tax on any Generation 4 equipment or upgrades of equipment dry cleaning businesses purchase to comply with the requirements of the bill.
The "New Jersey Dry Cleaning Business Assistance Act."