ASSEMBLY, No. 882

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen BLEE and LEFEVRE

An Act concerning the remediation and redevelopment of municipal landfill sites, and revising parts of the statutory law.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. (New section) This act shall be known and may be cited as the "Municipal Landfill Site Remediation and Redevelopment Act."

    2. (New section) As used in this act:

    "Closing costs" or "closure" means all activities and costs associated with the design, purchase, construction or maintenance of all measures required by the department, pursuant to law, in order to remediate, prevent, minimize or monitor pollution or health hazards resulting from municipal solid waste landfills subsequent to the termination of operations at any portion thereof, including, but not necessarily limited to, the costs of the placement of final earthen or vegetative cover, groundwater remediation, the installation of methane gas vents or monitors and leachate monitoring wells or collection systems, and long-term operations and maintenance, at the site of any municipal solid waste landfill that ceased operations prior to January 1, 1982 and that is not listed on the National Priorities List pursuant to the "Comprehensive Environmental Response, Compensation, and Liability Act of 1980," at 42 U.S.C. §9605. Any activity necessary to remediate ground or surface water contamination caused by a municipal solid waste landfill shall be considered a closure activity. As appropriate, closure activities shall be conducted in accordance with the remediation standards developed by the department pursuant to section 35 of P.L.1993, c.139 (C.58:10B-12).

    "Commercial solid waste" means any nonhazardous solid waste derived from wholesale, retail or service establishments, including stores, markets, theaters, offices, restaurants, warehouses, or from other non-manufacturing commercial activities.

    "Developer" means any person that enters or proposes to enter into a redevelopment agreement with the State pursuant to the provisions of section 3 of P.L. , c. (C. )(pending in the Legislature as this bill).

    "Director" means the Director of the Division of Taxation in the Department of the Treasury.

    "Household solid waste" means any solid waste derived from households, including but not limited to single and multiple residences, hotels and motels, bunkhouses, ranger stations, crew quarters, campgrounds, picnic grounds and day use recreation areas, except that "household solid waste" shall not include septic waste as defined in section 3 of P.L.1970, c.40 (C.48:13A-3).

    "Industrial solid waste" means any solid waste derived from manufacturing, industrial and research and development processes and operations that is not a hazardous waste as defined in section 1 of P.L.1976, c.99 (C.13:1E-38), except that "industrial solid waste" shall not include mining waste, oil waste, gas waste, or cement kiln dust waste.

    "Municipal solid waste landfill" means a landfill that received for disposal household solid waste and at least one of the following: (1) commercial solid waste; (2) industrial solid waste; or (3) waste material that was received for disposal prior to October 21, 1976 and that is included within the definition of hazardous waste adopted by the federal government pursuant to the "Resource Conservation and Recovery Act," at 42 U.S.C. §6921; except that "municipal solid waste landfill" shall not include any landfill that is approved for disposal of hazardous waste and regulated pursuant to Subchapter III of the "Resource Conservation and Recovery Act," 42 U.S.C. §6921 et seq.

    "Project" or "redevelopment project" means a specific work or improvement, including lands, buildings, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, undertaken by a developer within an area of land whereon a municipal solid waste landfill is or has been located under a redevelopment agreement with the State pursuant to section 3 of P.L. , c. (C.          )(pending in the Legislature as this bill).

    "Redevelopment agreement" means a contract between the State and a developer for any work or undertaking for the remediation or environmentally sound closure, clearance, development or redevelopment, construction or rehabilitation of any structure or improvement of commercial, industrial or public structures or improvements that provide a public benefit within an area of land whereon a municipal solid waste landfill is or has been located

pursuant to section 3 of P.L. , c. (C. ) (pending in the Legislature as this bill).

    3. (New section) a. The provisions of any other law, or rule or regulation adopted pursuant thereto, to the contrary notwithstanding, any developer may enter into a redevelopment agreement with the State pursuant to the provisions of this section.

    The Commissioner of the Department of Commerce and Economic Development shall negotiate the terms and conditions of any redevelopment agreement on behalf of the State.

    b. In negotiating a redevelopment agreement with a developer, the commissioner shall consider the following factors:

    (1) the economic feasibility of the redevelopment project;

    (2) the funding source or sources for the closure element of the redevelopment project;

    (3) the projected closing costs of the closure element of the redevelopment project, as certified by the Commissioner of Environmental Protection pursuant to section 4 of P.L. , c. (C.        )(pending in the Legislature as this bill);

    (4) the extent of economic and related social distress in the municipality and the area to be affected by the redevelopment project;

    (5) the degree to which the redevelopment project will advance State, regional and local development strategies;

    (6) the likelihood that the redevelopment project shall upon completion be capable of repaying all or part of any financing costs incurred;

    (7) the relationship of the redevelopment project to a comprehensive local development strategy, including other major projects undertaken within the municipality; and

    (8) the degree to which the redevelopment project enhances and promotes job creation and economic development.

    4. (New section) a. The provisions of any other law, or rule or regulation adopted pursuant thereto, to the contrary notwithstanding, any developer that commences a business operation within a redevelopment project, the sales receipts of which are subject to the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), may be eligible for a reduction in the tax otherwise due and payable under P.L.1966, c.30 pursuant to the provisions of this section.

    b. To be eligible for a reduction in the tax otherwise due and payable under P.L.1966, c.30, a developer shall submit an application, in writing, to the director for review and certification of the reduction. The director shall review the request for the reduction upon receipt of an application therefor, and shall approve or deny the application for certification on a timely basis.

    The director may certify a developer to be eligible for the reduction if the director shall find that:

    (1) the developer owns or operates a place of business located in the area subject to the redevelopment agreement for the purpose of making retail sales;

    (2) non-exempt items are regularly exhibited and offered for retail sale at that location;

    (3) the place of business is not utilized primarily for the purpose of catalogue or mail order sales; and

    (4) the developer has obtained the approval from the Commissioner of Environmental Protection of a financial plan for the closure of the municipal solid waste landfill located on the site of the redevelopment project pursuant to section 5 of P.L. , c. (C. ) (pending in the Legislature as this bill).

    5. (New section) a. To qualify for the reduction in the tax otherwise due and payable under P.L.1966, c.30 authorized pursuant to section 6 of P.L. , c. (C. )(pending in the Legislature as this bill), a developer shall submit to and receive the approval of the Commissioner of Environmental Protection of a financial plan for the closure of the municipal solid waste landfill located on the site of the redevelopment project.

    b. The financial plan for closure required to be submitted pursuant to this section shall include an inventory of all specific closure activities or closing costs associated with environmental or health measures required by the Department of Environmental Protection, pursuant to law, to be undertaken by the developer or the governing body of the municipality within which the municipal solid waste landfill is or has been located, in the case of delegated closure responsibilities pursuant to section 7 of P.L. , c. (C. )(pending in the Legislature as this bill), at the landfill site in order to prevent, minimize or monitor pollution or health hazards resulting from the municipal solid waste landfill subsequent to the termination of disposal operations at the landfill site, and an estimate of the total closing costs likely to be incurred by the developer in undertaking these activities. Any activity necessary to remediate ground or surface water contamination caused by a municipal solid waste landfill shall be considered a closure activity.

    c. The Commissioner of Environmental Protection shall have 30 days from the date of receipt to approve or reject a financial plan for closure submitted by a developer pursuant to this section. Upon approval, the commissioner shall submit a copy thereof, including a statement of the projected closing costs of the municipal solid waste landfill located at the site of the redevelopment project, to the developer, the Commissioner of the Department of Commerce and Economic Development, and the director.

    6. (New section) a. Upon approval of certification of the reduction by the director pursuant to section 4 of P.L. , c. (C.        )(pending in the Legislature as this bill), the taxpayer shall impose and collect the full amount of the tax due under section 3 of P.L.1966, c.30 (C.54:32B-3), but shall be entitled to a reduction in the tax otherwise due and payable to the State with each return filed pursuant to section 18 of P.L.1966, c.30 (C.54:32B-18) in an amount equal to $0.03 of the amount of tax collected on each $1.00 of non-exempt sales.

    b. The reduction authorized pursuant to this section shall remain in effect until such time as the aggregate dollar amount of the reductions indicated on the tax returns equal the dollar amount of the closing costs incurred by the developer, as certified by the Commissioner of the Department of Environmental Protection, pursuant to the redevelopment agreement.

    c. When filing a tax return that includes an initial claim for a reduction pursuant to this section, the developer shall include a copy of the certification and a statement that the claim is based on a redevelopment agreement entered into with the State pursuant to the provisions of section 3 of P.L. , c. (C. ) (pending in the Legislature as this bill).

    7. (New section) Upon application by the governing body of a municipality within which a municipal solid waste landfill is or has been located, or as a predicate to a developer entering into a redevelopment agreement with the State pursuant to the provisions of section 3 of P.L. , c. (C. )(pending in the Legislature as this bill), the Commissioner of Environmental Protection may delegate to the municipal governing body the closure responsibilities that would otherwise be required of the developer pursuant to the provisions of section 5 of P.L. , c. (C. )(pending in the Legislature as this bill), upon a finding that the municipality is capable of administering those responsibilities. This delegation shall be in accordance with rules and regulations adopted by the department pursuant to law.

    8. (New section) a. Any municipality proposing to undertake the environmentally sound closure of a municipal solid waste landfill pursuant to section 7 of P.L. , c. (C. )(pending in the Legislature as this bill) shall submit to and receive the approval of the Commissioner of Environmental Protection of a financial plan for the closure of the municipal solid waste landfill located on the site of the proposed redevelopment project.

    b. The department shall make available moneys from the Sanitary Landfill Facility Contingency Fund established pursuant to section 6 of P.L.1981, c.306 (C.13:1E-105) for loans to municipalities within which municipal solid waste landfills are or have been located to undertake municipal solid waste landfill closure projects.

    c. The department may make a loan from the Sanitary Landfill Facility Contingency Fund to a municipality to which closure responsibility has been delegated sufficient to cover the closing costs of the delegated closure responsibilities.

    d. Any loan made by the department to a municipality pursuant to this section shall be repaid to the Sanitary Landfill Facility Contingency Fund out of moneys received by the municipality from the developer pursuant to section 9 of P.L. , c. (C. )(pending in the Legislature as this bill).

    9. (New section) In the case of delegated closure responsibilities pursuant to section 7 of P.L. , c. (C. ) (pending in the Legislature as this bill), the developer shall make payments to the chief fiscal officer of the municipality to which closure responsibility has been delegated utilizing moneys derived from the reduction authorized pursuant to section 6 of P.L. , c. (C. )(pending in the Legislature as this bill) until such time as the aggregate dollar amount of the payments equal the dollar amount of the closing costs incurred by the municipality.

    10. Section 9 of P.L.1981, c.306 (C.13:1E-108) is amended to read as follows:

    9. Moneys in the fund shall be disbursed by the department for the following purposes and no others:

    a. Administrative costs incurred by the department pursuant to section 6 of P.L.1981, c.306 (C.13:1E-105)[;].

    b. Damages as provided in section 7 of P.L.1981, c.306 (C.13:1E-106)[;].

    c. Grants for landfill mining demonstration projects as provided in section 1 of P.L.1994, c.99 (C.13:1E-34.1)[; and].

    d. Loans for municipal solid waste landfill closure projects as provided in section 8 of P.L. , c. (C. )(pending in the Legislature as this bill).

    e. Administrative costs incurred by the Attorney General, the department or any other State agency to implement the provisions of P.L.1983, c.392 (C.13:1E-126 et seq.), as amended and supplemented by P.L.1991, c.269 (C.13:1E-128.1 et al.), on a timely basis, except that the amounts used for this purpose shall not exceed $5,000,000.00. Any moneys disbursed by the department from the fund for this purpose shall be repaid to the fund in equal amounts from the fees collected by the department pursuant to section 3 of P.L.1971, c.461 (C.13:1E-18), in annual installments beginning July 1, 1990 and annually thereafter until the full amount is repaid according to a schedule of repayments determined by the State Treasurer. For the purposes of this subsection, "State agency" means any State department, division, agency, commission or authority.

(cf: P.L.1994, c.99, s.2)

    11. This act shall take effect immediately.

STATEMENT

    This bill provides for the remediation and redevelopment of municipal landfill sites under the terms and conditions of a redevelopment agreement negotiated by a developer and the State.

    The bill would authorize an eligible developer to receive a sales tax reduction of up to $0.03 per $1.00 of non-exempt sales generated from any business located within the area subject to the redevelopment agreement as reimbursement for the remediation costs incurred in properly closing the municipal landfill site and redeveloping the area.

    The developer would negotiate with the Commissioner of the Department of Commerce and Economic Development over the terms and conditions of the redevelopment agreement. The developer would undertake the environmentally-sound closure of the municipal landfill in accordance with a financial plan approved by the Commissioner of Environmental Protection.

    To be eligible for the reduction, a developer must submit an application, in writing, to the Director of the Division of Taxation for review and certification. The director would review the request for certification on a timely basis.

    The director may only certify a developer to be eligible for the reduction if: (1) the developer owns or operates a place of business located in the area subject to the redevelopment agreement for the purpose of making retail sales; (2) non-exempt items are regularly exhibited and offered for retail sale at that location; (3) the place of business is not utilized primarily for the purpose of catalogue or mail order sales; and (4) the developer has obtained the approval from the Commissioner of Environmental Protection of a financial plan for the closure of the municipal solid waste landfill located on the site of the redevelopment project.

    The sales tax reduction authorized under this bill would remain in effect until such time as the developer recovered the dollar amount of the closing costs incurred by the developer, as certified by the Commissioner of Environmental Protection.

    The bill also provides that the Commissioner of Environmental Protection may delegate to the municipal governing body the closure responsibilities that would otherwise be required of the developer. This delegation could be either at the initiative of the municipality or as a predicate to a developer entering into a redevelopment agreement with the State.

    Any municipality proposing to undertake a municipal solid waste landfill closure project must submit to and receive the approval of the Commissioner of Environmental Protection of a financial plan for the closure of the municipal solid waste landfill located on the site of the proposed redevelopment project.

    The Department of Environmental Protection would make available moneys from the Sanitary Landfill Facility Contingency Fund established pursuant to section 6 of P.L.1981, c.306 (C.13:1E-105) for loans to municipalities to undertake such closure projects. A loan would be in an amount sufficient to cover the closing costs of the delegated closure responsibilities. Any loan made by the department to a municipality must be repaid to the Sanitary Landfill Facility Contingency Fund out of moneys received by the municipality from the developer.

    Accordingly, the bill provides that in the case of delegated closure responsibilities, the developer would make payments to the chief fiscal officer of the municipality to which closure responsibility has been delegated utilizing moneys derived from the sales tax reduction authorized under the bill. The payments would continue until such time as the aggregate dollar amount of the payments received by the municipality equal the dollar amount of the closing costs incurred by that municipality.

"Municipal Landfill Site Remediation and Redevelopment Act."