SENATE, No. 1815

 

STATE OF NEW JERSEY

 

INTRODUCED JANUARY 27, 1997

 

 

By Senator SINGER

 

 

An Act concerning contaminated sites and amending P.L.1996, c.124.

 

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

 

    1. Section 1 of P.L.1996, c.124 (C.13:1E-166.1) is amended to read as follows:

    1. This act shall be known and may be cited as the "Brownfield and Municipal Landfill Site Closure, Remediation and Redevelopment Act."

(cf: P.L.1996, c.124, s.1)

 

    2. Section 2 of P.L.1996, c.124 (C.13:1E-116.2) is amended to read as follows:

    2. As used in this act:

    "Closure" means all activities associated with the design, purchase, construction or maintenance of all measures required by the department, pursuant to law, in order to 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 placement of final earthen or vegetative cover, 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 is not listed on the National Priorities List pursuant to the "Comprehensive Environmental Response, Compensation, and Liability Act of 1980," 42 U.S.C. 9605.

    "Closure and remediation costs" means all reasonable costs associated with the closure and remediation of a municipal solid waste landfill, or the remediation of an eligible brownfield site except that "closure and remediation costs" shall not include any costs incurred in financing the closure or remediation.

    "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.

    "Contaminant" or "contamination" means any discharged hazardous substance as defined pursuant to section 3 of P.L.1976, c.141 (C.58:10-23.11b), hazardous waste as defined pursuant to section 1 of P.L.1976, c.99 (C.13:1E-38), or pollutant as defined pursuant to section 3 of P.L.1977, c.74 (C.58:10A-3).

    "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.1996, c.124 (C.13:1E-116.3).

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

    "Eligible brownfield site" means a former industrial or commercial property in a qualifying municipality as defined pursuant to section 3 of P.L.1982, c.303 (C.52:27H-62) that is currently underutilized or abandoned and at which there has been, or there is perceived to have been, a discharge, or threat of a discharge, of a contaminant.

    "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 ceased operations prior to January 1, 1982 and 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," 42 U.S.C. 6921 et seq.; 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, or on an eligible brownfield site, under a redevelopment agreement with the State pursuant to section 3 of P.L.1996, c.124 (C.13:1E-116.3).

    "Redevelopment agreement" means an agreement between the State and a developer under which the developer agrees to perform any work or undertaking necessary for the environmentally sound and proper closure and remediation of the municipal solid waste landfill or a remediation of an eligible brownfield site located at the site of the redevelopment project, and for the clearance, development or redevelopment, construction or rehabilitation of any structure or improvement of commercial, industrial or public structures or improvements within an area of land whereon a municipal solid waste landfill is or has been located or on an eligible brownfield site pursuant to section 3 of P.L.1996, c.124 (C.13:1E-116.3), and the State agrees that the developer shall be eligible for the reimbursement of 75% of the costs of closure and remediation of the municipal solid waste landfill or 75% of the costs of the remediation of the eligible brownfield site from the fund established pursuant to section 6 of P.L.1996, c.124 (C.13:1E-116.6) (pending in the Legislature as this bill) as authorized pursuant to section 4 of P.L.1996, c.124 (C.13:1E-116.4).

    "Remediation" or "remediate" means all necessary actions to investigate and clean up any known, suspected, or threatened discharge of contaminants, including, as necessary, the preliminary assessment, site investigation, remedial investigation, and remedial action, as those terms are defined in section 23 of P.L.1993, c.139 (C.58:10B-1).

(cf: P.L.1996, c.124, s.2)

 

    3. Section 4 of P.L.1996, c.124 (13:1E-116.4) is amended to read as follows:

    4. a. The provisions of any other law, or rule or regulation adopted pursuant thereto, to the contrary notwithstanding, any developer that enters into a redevelopment agreement pursuant to section 3 of P.L.1996, c.124 (C.13:1E-116.4), may be eligible for reimbursement of 75% of the costs of the closure and remediation of the municipal solid waste landfill or 75% of the costs of remediation of an eligible brownfield site pursuant to the provisions of this section upon the commencement of 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.).

    b. To be eligible for reimbursement of 75% of the costs of closure and remediation, or 75% of the costs of remediation, as the case may be, a developer shall submit an application, in writing, to the director for review and certification of the reimbursement. The director shall review the request for the reimbursement upon receipt of an application therefor, and shall approve or deny the application for certification on a timely basis.

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

    (1) a place of business is 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 entered into a memorandum of agreement with the Commissioner of Environmental Protection for the environmentally sound and proper closure and remediation of the municipal solid waste landfill, or the remediation of the eligible brownfield site located on the site of the redevelopment project pursuant to section 5 of P.L.1996, c.124 (C.13:1E-116.5) and is in compliance with the memorandum of agreement.

    c. When filing an application for certification for a reimbursement pursuant to this section, the developer shall submit to the director a certification of the total closure and remediation costs incurred by the developer for the closure and remediation of the municipal solid waste landfill , or the total remediation costs of the eligible brownfield site, as the case may be, located at the site of the redevelopment project as provided in the redevelopment agreement.

(cf: P.L.1996, c.124, s.4)

 

    4. Section 5 of P.L.1996, c.124 (13:1E-116.5) is amended to read as follows:

    5. a. To qualify for the certification of reimbursement of 75% of the closure and remediation costs , or 75% of the remediation costs, as the case may be, authorized pursuant to section 4 of P.L.1996, c.124 (C.13:1E-116.4), a developer shall enter into a memorandum of agreement with the Commissioner of Environmental Protection for the environmentally sound and proper closure or remediation of the municipal solid waste landfill or the remediation of the eligible brownfield site located on the site of the redevelopment project.

    b. Under the memorandum of agreement, the developer shall agree to perform and complete any closure activity or remediation as may be required by the Department of Environmental Protection, pursuant to law, to ensure the environmentally sound and proper closure and remediation of the municipal solid waste landfill or the remediation of the eligible brownfield site located at the site of the redevelopment project. Any activity necessary to remediate ground or surface water contamination caused by a municipal solid waste landfill or by contamination at an eligible brownfield site shall be undertaken in compliance with the remediation standards adopted by the Department of Environmental Protection pursuant to P.L.1993, c.139 (C.58:10B-1 et al.).

    c. After the developer has entered into a memorandum of agreement with the Commissioner of Environmental Protection, the commissioner shall submit a copy thereof to the developer, the clerk of the municipality in which the municipal solid waste landfill or the eligible brownfield site is located, the Commissioner of the Department of Commerce and Economic Development, and the director.

(cf: P.L.1996, c.124, s.5)

 

    5. Section 6 of P.L.1996, c.124 (13:1E-116.6) is amended to read as follows:

    6. a. There is created in the Department of the Treasury a special fund to be known as the Brownfield and Municipal Landfill Closure and Remediation Fund. Moneys in the fund shall be dedicated to the purpose of reimbursing a developer who enters into a redevelopment agreement pursuant to section 3 of P.L.1996, c.124 (C.13:1E-116.3) and is certified for reimbursement pursuant to section 4 of P.L.1996, c.124 (C.13:1E-116.4) in an amount equal to 75% of the closure and remediation costs of the municipal solid waste landfill or 75% of the remediation costs of the eligible brownfield site. A special account within the fund shall be created for each developer upon approval of a certification pursuant to section 4 of P.L.1996, c.124 (C.13:1E-116.4). The Legislature shall annually appropriate the entire balance of the fund for the purposes of reimbursement of closure and remediation costs as provided in section 7 of P.L.1996, c.124 (C.13:1E-116.7).

    b. The fund shall be credited with one half of all taxes due and payable pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) by any person required to collect the tax at the site of a redevelopment project which is the subject of a redevelopment agreement with the State pursuant to section 3 of P.L.1996, c.124 (C.13:1E-116.3) until the amount credited equals 75% of the dollar amount of the closure and remediation costs, or 75% of the remediation costs of an eligible brownfield site, as the case may be, actually and reasonably incurred by the developer, as certified to the director by the developer.

(cf: P.L.1996, c.124, s.6)

 

    6. Section 7 of P.L.1996, c.124 (C.13:1E-116.7) is amended to read as follows:

    7. a. The State Treasurer shall reimburse the developer for 75% of the closure and remediation costs of the municipal solid waste landfill or 75% of the remediation costs of an eligible brownfield site, as the case may be, from the Brownfield and Municipal Landfill Closure and Remediation Fund upon approval of certification of the reimbursement pursuant to section 4 of P.L.1996, c.124 (C.13:1E-116.4). The developer shall be entitled to periodic payments from the fund in an amount equal to one half of the taxes due and payable pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from any person required to collect the tax at the site of a redevelopment project which is subject to a redevelopment agreement between the developer and the State pursuant to section 3 of P.L.1996, c.124 (C.13:1E-116.3). Payments from the fund shall be made to a developer at the same frequency in which the payments are made to the State from the persons required to collect the tax. Payments to the developer shall be made within 15 days of receipt by the State of the taxes.

    b. A developer shall submit to the director updated closure and remediation costs actually incurred by the developer for the closure or remediation of the municipal solid waste landfill or the remediation of an eligible brownfield site, as the case may be, located at the site of the redevelopment project as provided in the redevelopment agreement. The reimbursement authorized pursuant to this section shall continue until such time as the aggregate dollar amount of the reimbursement equals 75% of the dollar amount of the closure and remediation costs or 75% of the dollar amount of the remediation costs of an eligible brownfield site actually incurred by the developer, as certified to the director by the developer. To remain entitled to the reimbursement authorized pursuant to this section, the developer shall perform and complete all closure and remediation activities during the closure and post-closure periods as may be required pursuant to the memorandum of agreement entered into with the Commissioner of Environmental Protection pursuant to section 5 of P.L.1996, c.124 (C.13:1E-116.5). The Department of Environmental Protection may review the closure and remediation costs incurred by the developer to determine if they are reasonable.

(cf: P.L.1996, c.124, s.7)

 

    7. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill would expand the "Municipal Landfill Site Closure, Remediation and Redevelopment Act" to apply its provisions to brownfield sites in qualifying municipalities. Under the bill, a developer who enters into an agreement with the State to redevelop an eligible brownfield site would be entitled to reimbursement of 75% of the costs of remediation from one-half of the sales taxes generated at the site. An eligible brownfield site is a former industrial or commercial property in a qualifying municipality as defined pursuant to section 3 of P.L.1982, c.303 (C.52:27H-62) that is currently underutilized or abandoned and at which there has been, or there is perceived to have been, a discharge, or threat of a discharge, of a hazardous substance.

 

 

                             

Authorizes partial reimbursement for remediation costs of certain brownfield sites.