Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NJ Law Limits Availability of Remediation Grants Under HDSRF Program

Author: Daniel T. McKillop

Date: April 20, 2018

Key Contacts

Back

New Legislation May Make it More Difficult for New Jersey Entities to Obtain Financial Assistance for the Remediation of Contaminated Sites From the HDSRF Program

In his last days in office, Gov. Chris Christie signed legislation that may make it more difficult for New Jersey entities to obtain financial assistance for the remediation of contaminated sites from the Hazardous Discharge Site Remediation Fund (HDSRF). Most notably, the new law removes the Innocent Party Grant from the realm of grants offered under the HDSRF program. 

NJ Legislation Affects Ability to Gain Remediation Grants under HDSRF Program
Photo courtesy of Dakota Roos (Unsplash.com)

Hazardous Discharge Site Remediation Fund 

HDSRF grants and loans are available to public entities, private entities, and non-profit organizations who need financial assistance to perform a remediation pursuant to New Jersey Department of Environmental Protection’s (NJDEP) Site Remediation Program requirements. The program was established in July 1993 to provide funding to public and qualifying private entities for the remediation of a suspected or known discharge of a hazardous substance or hazardous waste.

The HDSRF program is funded through a constitutionally-dedicated portion of the New Jersey Corporate Business Tax and is administered through a partnership between the DEP and the New Jersey Economic Development Authority (EDA). Under the program, financial assistance may be provided for preliminary assessments (PA) for onsite inspections and to review historical ownership and site use to determine if contamination may be present at the sites; site investigations (SI) to characterize suspected contamination through preliminary intrusive investigation work; remedial investigations (RI) to determine the extent of contamination present; and remedial action (RA) to effectuate cleanup of impacted portions of the sites.

Removal of the Innocent Party Grant 

For innocent parties, the loss of funding under Assembly Bill 1954 is significant. Prior to the amendment, New Jersey’s Brownfield and Contaminated Site Remediation Act provided that “[g]rants may be made from the remediation fund to persons who own real property on which there has been a discharge of a hazardous substance or a hazardous waste and that person qualifies for an innocent party grant pursuant to section 28 of P.L.1993, c.139 (C.58:10B-6).” The statute defines an “innocent party” as a person who acquired the site prior to December 31, 1983; did not use hazardous substance/waste; and did not discharge any hazardous substance/waste at the area where the discharge is discovered.

Prior to the amendments to the HDSRF program, private parties who qualified as an innocent party were eligible for grants equal to 50 percent of the costs to complete PA, SI, RI, and RA activities, and grants were capped at $1 million per project. Assembly Bill 1954 completely eliminated the provision providing for such funding from the Brownfield and Contaminated Site Remediation Act.

Additional Changes Under Assembly Bill 1954

Assembly Bill 1954 also eliminates the availability of grants and loans to persons who would otherwise not be eligible for assistance, but who remediate a site using innovative technology or who remediate to a limited restricted use standard. The amendments also establish caps on grants to municipalities, counties, and redevelopment entities for projects in brownfield development areas. For instance, the new law:

  • Places limitations on grants to municipalities, counties, and redevelopment entities for projects in brownfield development areas. In those areas and to those government entities, the bill authorizes grants of up to 75 percent of the total costs of the remedial action.  
  • Reduces the additional amount over the annual cap on financial assistance and grants otherwise in effect, which may be awarded in any one year to those government entities for projects in brownfield development areas, from $2,000,000 to $1,000,000.
  • Lowers the cumulative total amount of matching grants that may be awarded to municipalities, counties, and redevelopment entities for projects involving the redevelopment of property for recreation and conservation purposes from $5,000,000 to $2,500,000 per year.
  • Reduces the cumulative annual cap on the maximum amount of financial assistance and grants that may be issued to a person from $1,000,000 to $500,000, and to municipalities, counties, and redevelopment entities from $3,000,000 to $2,000,000 except for projects in brownfield development areas. 

The amendments also alter the priority for the award of financial assistance or grants from the remediation fund. First priority is given to sites that have been contaminated by a discharge or a suspected discharge of a hazardous substance or hazardous waste and where the discharge poses an imminent and significant threat to a drinking water source, to human health, or to a sensitive or significant ecological area; second priority is given to sites that are owned by a municipality in a brownfield development area; and third priority is given to sites in areas designated as Planning Area 1 (Metropolitan) and Planning Area 2 (Suburban) pursuant to the State Planning Act.  The EDA is also required to adopt criteria, which must be met by a municipality, county, or redevelopment entity that applies for a grant, that the subject real property be developed within a three-year period from completion of the remediation.

Finally, Assembly Bill 1954 provides that funding for a preliminary assessment or site investigation must be expended within two years after the date of the award, while funding for a remedial investigation of a contaminated site must be expended within five years of the award date. If the financial assistance or grant is not expended within the time limits provided, the award would be cancelled. In addition, awards will not be approved until the applicant demonstrates to the satisfaction of the EDA that it has expended or will expend the full amount of any previous financial assistance or grant awarded to the applicant for the same property.

If you have any questions about the HDSRF Program, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business post image

The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business

Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]

Author: Dan Brecher

Link to post with title - "The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business"
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1 post image

Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1

The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]

Author: Brian D. Spector

Link to post with title - "Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1"
How Understanding Bankruptcy Trends Can Benefit Your Business post image

How Understanding Bankruptcy Trends Can Benefit Your Business

The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]

Author: Brian D. Spector

Link to post with title - "How Understanding Bankruptcy Trends Can Benefit Your Business"
SEC Takes Actions Against Issuers for Failure to File Form D post image

SEC Takes Actions Against Issuers for Failure to File Form D

In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]

Author: Kenneth C. Oh

Link to post with title - "SEC Takes Actions Against Issuers for Failure to File Form D"
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda post image

Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda

On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]

Author: Matthew F. Mimnaugh

Link to post with title - "Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda"
What Are FIRPTA Withholding Requirements? post image

What Are FIRPTA Withholding Requirements?

If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]

Author: Jesse M. Dimitro

Link to post with title - "What Are FIRPTA Withholding Requirements?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

Please select a category(s) below: