S34

SENATE, No. 34

STATE OF NEW JERSEY

INTRODUCED JANUARY 23, 1997

By Senators DiFRANCESCO, O'CONNOR and Scott

An Act concerning dredging and dredged material disposal and providing for the expenditure of monies dedicated pursuant to P.L.1996, c.70.

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

1. The Legislature finds and declares that the existence of deep water ports in both the northern and southern sections of the State have been of critical importance to the economy and growth of the region since the colonial era; that the combination of the natural silting of New Jersey's harbor areas and the building of larger oceangoing vessels that require greater water depth have resulted in a reduction of the volume of maritime commerce in the region, resulting in a loss of jobs and the potential elimination of the Port of New York and New Jersey's present status as the primary port on the Eastern seaboard; that many of these port waters contain harmful contaminants that upset the ecological balance and threaten the environment, and that must be disposed of in the most cost-efficient manner possible, using the most up-to-date technology including the possible creation of a usable end product; and that the voters, in November 1996, overwhelmingly approved a bond issue for the dredging of New Jersey's port channels.

The Legislature therefore determines that it is in the public interest that the port dredging and dredged material disposal proceed as expeditiously and efficiently as possible, and that the monies approved by the voters for this purpose be used effectively; that it is necessary for the State to establish an administrative procedure to set priorities for projects in accordance with their economic benefit to the State, and their relative potential to bring about economic growth through enhanced maritime commerce, to retain existing jobs and create new ones, and to support the continuing viability of the State's recreation and tourism industries; and that it is essential that the priorities for the dredging and dredged material disposal projects be established with the participation of the affected sectors of the State's economy, including representatives of the maritime industry, business and commercial interests, labor, and recreation and tourism industries, so

that a consensus is reached on the most effective use of the available funds.

2. As used in this act:

"Containment facility" means an upland or in-water confined disposal facility which shall consist of an artificially constructed island, a diked extension of an existing island, or a diked extension attached to land, and which is used solely for the disposal of dredged materials; "Delaware River and Bay Region" means all the State territory located within the "port district," as defined pursuant to section 1(6) of P.L.1951, c.288 (C.32:3-13.23);

"Dredge" or "dredging" means the removal of sand, silt, mud, and other materials from the bottom of a waterway in order to deepen navigation channels and ship berths;

"Dredged material" means material removed by dredging that is, in the determination of the federal Environmental Protection Agency, either unsuitable for ocean disposal or suitable for ocean disposal only with capping;

"Economic development site" means land, equipment, buildings, appurtenant infrastructure and miscellaneous site improvements designed to promote economic activity and new jobs in the Delaware River and Bay Region; and

"Port region" means the geographic area created by Article II of the Compact of April 30, 1921, creating the bi-state agency, now known as the Port Authority of New York and New Jersey, and which is commonly referred to as the Port of New York District.

3. a. There is established in the Executive Branch of the State Government a Dredging Project Facilitation Task Force. For the purpose of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the task force is allocated within the Department of Commerce and Economic Development, but, notwithstanding that allocation, the task force shall be independent of any supervision or control by the department or by the commissioner or any officer or employee thereof. The task force shall constitute an instrumentality of the State exercising public and essential governmental functions, and the exercise by the task force of the powers conferred by this or any other act shall be deemed and held to be an essential governmental function of the State.

b. The task force shall consist of 11 voting members and one non-voting member. The Business Ombudsman, or his designee, shall serve ex-officio and as a non-voting member. The voting members shall include the Commissioner of the Department of Environmental Protection, or his designee; the Commissioner of the Department of Commerce and Economic Development, or his designee; three public members appointed by the Governor; three public members appointed by the President of the Senate, one of whom the President of the Senate shall designate as chair of the board; and three public members appointed by the Speaker of the General Assembly. The appointment of the members shall be made within 45 days of the effective date of this act. The appointee of the President of the Senate designated as chair of the board shall convene an organizational meeting of the board as soon as is practicable following the appointment of at least six public members to the board. The public members shall, to the maximum extent practicable, represent one or more of the following areas of expertise and specialization: the maritime industry, the business community, the trucking industry, organized labor, marine terminal operations, the tourism and recreation industry, environmental technology, and commercial fishing.

4. It shall be the duty of the Office of Maritime Resources in the Department of Commerce and Economic Development to establish a priority list for dredging and dredged material disposal facility projects based primarily on the maintenance of the viability of the Port of New Jersey and New York as a deep water port accessible to international commerce and on the prospects for the creation and retention of jobs in New Jersey. In developing the priority list, the office shall consult with the Dredging Project Facilitation Task Force and the Department of Environmental Protection, and shall review and consider the plan for the expenditure of funds authorized pursuant to section 5 of P.L.1996, c.70 and required to be submitted by the Commissioner of Environmental Protection to the State Treasurer pursuant to section 32 of P.L.1996, c.70, and any changes to that plan made pursuant to section 33 of P.L.1996, c.70. Upon the development of the priority list, the office shall submit the list to the task force for its approval.

5. a. The Office of Maritime Resources in the Department of Commerce and Economic Development shall, in consultation with the Department of Environmental Protection and the Dredging Project Facilitation Task Force established pursuant to section 3 of P.L. , c. (C. )(now before the Legislature as this bill), develop, implement and maintain a comprehensive dredging and dredged material management and disposal plan for the navigable waters of the State located in the port region.

b. The office shall be authorized, in consultation with the Commissioner of Environmental Protection, to enter into agreements with public or private entities to designate ownership, lease provisions and other related property interests. The office may also enter into agreements with regard to:

(1) dredging projects including, but not necessarily limited to, any cost sharing, right of way or easement provisions involved;

(2) the development, operation and management of dredged material disposal, treatment and processing facilities; and

(3) the development, evaluation, certification and implementation of demonstration decontamination and treatment technologies that are cost-effective, environmentally sound and that create a usable end product.

c. The office shall be authorized to acquire by purchase, lease, grant or otherwise, any land or real property which, in the determination of the office, is reasonably necessary to effectuate the purposes of this act.

d. The office shall be authorized to solicit proposals from developers to plan, design, construct, equip, operate, finance, improve or maintain demonstration projects and dredged material disposal facilities.

e. The office shall be authorized to charge and collect fees or charges for the use of a dredged material disposal facility at such rates necessary to compensate for the costs to plan, design, construct, equip, operate, improve, maintain, close or replace the dredged material disposal facility and to ensure continued availability of the facility.

6. a. Upon the effective date of this act, the Dredging Project Facilitation Task Force shall, as soon as practicable, and thereafter from time to time, submit to the Legislature a project priority list for projects authorized to receive funding pursuant to section 5 of P.L.1996, c.70. The project priority list shall include a description of each project and its purpose, impact, cost, and construction schedule. The President of the Senate and the Speaker of the General Assembly shall cause the project priority list to be introduced in each House in the form of legislative appropriations bills.

b. Within 60 days of the introduction thereof, the Legislature shall consider the appropriations bills containing the project priority list, including any amendatory or supplementary provisions thereto. The legislation approved by the Legislature shall appropriate only those monies from the "1996 Dredging and Containment Facility Fund," established pursuant to section 18 of P.L.1996, c.70, authorized to be expended pursuant to section 5 of P.L.1996, c.70. The monies authorized to be appropriated pursuant to this subsection shall be appropriated for the specific projects, including the individual amounts therefor, on the list.

c. No monies appropriated pursuant to subsection b. of this section shall be expended for any dredging related project unless the expenditure is authorized pursuant to the priority list contained in the legislation approved in accordance with the provisions of subsection b. of this section.

7. The Department of Environmental Protection shall, as it deems necessary, submit to the Legislature a priority list of projects related to the dredging of navigation channels not located in the port region and authorized to receive funding pursuant to section 7 of P.L.1996, c.70. The order of priority for these dredging projects shall include, but need not be limited to, the maintenance of the viability of navigation channels not located in the port region to promote recreation and tourism as well as the creation and retention of jobs related to the navigability of these waterways. The Legislature shall, from time to time, appropriate monies to finance the costs authorized pursuant to the provisions of section 7 of P.L.1996, c.70. Such monies shall be appropriated to the Department of Environmental Protection from the "1996 Dredging and Containment Facility Fund," established pursuant to section 18 of P.L.1996, c.70.

8. To be eligible to receive monies from the "1996 Economic Development Site Fund," established pursuant to section 20 of P.L.1996, c.70, an economic development site project must meet at least two of the following criteria:

a. The project will support or enhance the existing economic base of the region in which it is located, which may include, but need not be limited to, the agricultural, tourism and commercial sectors, or improvements to the region's infrastructure;

b. The project will result in the rehabilitation or expansion of existing facilities in the region in which it is located;

c. The project will result in the creation or retention of jobs in the region in which it is located; and

d. The project will foster the development of business or commercial ventures which will promote long-term economic growth in the region in which it is located.

9. The Legislature shall, from time to time, appropriate monies from the "1996 Economic Development Site Fund," established pursuant to section 20 of P.L.1996, c.70, to the Department of Commerce and Economic Development for the projects designated in the legislation. Any appropriation from this fund shall specify the projects involved, all of which shall meet the requirements of section 8 of P.L. , c. (C. )(now before the Legislature as this bill).

10. The Department of Commerce and Economic Development and the Department of Environmental Protection shall establish, in consultation with the Dredging Project Facilitation Task Force, the criteria for the content of final requests for proposals for any studies, assessments, demonstration projects and dredging, and all phases in the development and construction of a dredged material disposal facility. Any request for proposals developed pursuant to this act shall include, but need not be limited to, a provision for the indemnification of the State by the contract holder. The Department of Commerce and Economic Development or the Department of Environmental Protection, as appropriate, in consultation with the task force, shall solicit requests for proposals and negotiate contracts.

11. 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.), any rules or regulations necessary to effectuate the purposes of this act.

b. The Department of Commerce and Economic Development shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), any rules or regulations necessary to effectuate the purposes of this act.

12. The Legislature may, in the annual appropriations act or in any other act, limit the amount of funds appropriated from the "1996 Dredging and Containment Facility Fund," established pursuant to section 18 of P.L.1996, c.70, that may be expended for any direct or indirect program administrative costs of the State, its departments, agencies, or authorities.

13. This act shall take effect immediately.

STATEMENT

This bill would establish guidelines and procedures for the appropriation of certain bond funds authorized pursuant to the "Port of New Jersey Revitalization, Dredging, Environmental Cleanup, Lake Restoration, and Delaware Bay Area Economic Development Bond Act of 1996," P.L.1996, c.70. The bill provides specific guidelines for the appropriation of monies from the "1996 Dredging and Containment Facility Fund" and the "1996 Economic Development Site Fund," both of which were created in the 1996 bond act and approved by the voters in November, 1996.

With regard to the appropriation and expenditure of bond monies authorized for the dredging of navigational channels in the New Jersey port region (e.g., Kill van Kull, Arthur Kill), the construction of underwater storage pits and containment facilities for the disposal of dredged materials, and dredged material decontamination projects, the bill authorizes the Office of Maritime Resources in the Department of Commerce and Economic Development to develop a priority list of dredging and dredged material disposal facility projects.

Prior to submission to the Legislature for consideration, the list would first have to be approved by a 12-member Dredging Project Facilitation Task Force established by the bill. The task force would be composed of one non-voting member, the Business Ombudsman, and eleven voting members, including the Commissioners of Environmental Protection and Commerce and Economic Development, and nine public members, three of which would be appointed by the Governor, three by the Senate President and three by the Speaker of the General Assembly. One of the Senate President's appointments would be the chair of the task force. The public members would be required to represent various sectors related to the port economy. Upon the approval of the priority list by the task force, the Legislature would then consider the list in the form of an appropriations bill listing specific projects, in accordance with the provision of the bond act.

The bill assigns primary responsibility for the development and implementation of a comprehensive dredging and dredged material management and disposal plan to the Office of Maritime Resources, in consultation with the Department of Environmental Protection (DEP) and the task force. The bill authorizes the office to manage the development and implementation of dredging and dredged disposal facility projects and demonstration decontamination and treatment technologies, as well as to charge fees for the use of a dredged material disposal facility to offset the costs of the facility.

With regard to the dredging of navigation channels not located in the port region, for which the bond act authorizes a total of $20 million, the bill requires the DEP to submit to the Legislature a priority list, as necessary, of such projects for approval. The order of priority would be based upon the maintenance of the channels so as to promote recreation and tourism and create and retain related jobs.

The bill also establishes eligibility criteria for economic development sites, for which the bond act authorizes $20 million. The project would be required to meet specific criteria related to its impact on economic development in the affected region.

Finally, the bill authorizes the Legislature to limit the amount of bond funds that may be expended for administrative costs.

Establishes process for expenditure of dredging and economic development bond monies.