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New Jersey Acting Governor Richard J. Codey has signed legislation that provides qualified developers liability protection against natural resource damage claims at brownfield sites across the state.
“The Governor’s action provides innocent companies assurance that they will not be held liable for costs related to natural resource injuries,” said New Jersey Department of Environmental Protection (DEP) Commissioner Bradley M. Campbell. “This new law rightly puts the costs of injuries to our groundwater
supplies and other natural resources on the backs of polluters, while encouraging
cleanup and redevelopment of blighted sites.”
The legislation also provides brownfield developers liability protection for
off-site contamination and makes changes to the statute of limitations under
which DEP can assess NRD claims.
“Because of their location and commercial zoning status, brownfield sites are becoming increasingly attractive in the eyes of commercial developers,” said Assemblyman John McKeon, chairman of the Assembly Environment and Solid Waste Committee. “These liability protections give yet another incentive for increased restoration and redevelopment while continuing to protect our region’s important natural resources.”
The liability protections apply to developers that already acquired or will acquire property on or after January 6, 1998, which is the effective date of the Brownfield and Contaminated Site Remediation Act. Developers must also have acquired the property after any discharge of a hazardous substance occurred.
In addition, developers cannot be responsible for the discharge of a hazardous
substance at the property or be corporate successors to the discharger or any
other liable person. Lastly, the liability protections do not apply to developers
that have already agreed to the payment of compensation for natural resource
damages.
The new statute also provides developers liability protection for cleanup costs
related to contamination that has migrated beyond their own property. To be
eligible for this protection, developers must meet similar conditions to those
required for NRD liability release. In addition, developers are required to
demonstrate that the off-site contamination is from more than one source and
that it will not pose a risk to public health or the environment if it is not
remediated.
DEP assesses natural resource damages to compensate the residents of New Jersey for injuries to natural resources that are held in the public trust. Injuries can include both ecological injuries such as damage to wetlands, wildlife, ground water or surface water as well as public use injuries such as the closure of a waterway to fishing, a beach to swimming or an aquifer to use as a drinking water supply.
New Jersey’s Spill Compensation and Control Act holds any entity that has discharged hazardous substances onto the land or into the waters of the state liable for cleanup and removal costs, as well as the cost of restoring or replacing natural resources injured by the discharge.