The New Jersey State Assembly is considering changes to the Hazardous Discharge Site Remediation Fund (HDSRF) that, if enacted, will reduce the availability of funding to municipalities, counties, redevelopment entities, Brownfield Development Areas and recreation/conservation projects. These proposed changes are found in Assembly bill A-1954.
Assembly bill A-1954 moved from the Environment and Solid Waste Committee to the full Assembly on October 27th. A copy of the bill and summary statement may be accessed at the NJ Legislature web site, found at https://www.njleg.state.nj.us/.
This proposal reduces the amount of grant funding available to municipalities, counties and redevelopment entities to remediate contaminated properties that are scheduled for redevelopment from $3 million to $2 million a year. It reduces the additional amount available to Brownfield Development Areas from $2 million to $1 million a year, and places caps on the funding available for each remedial phase and for each site.
Remediation funding for park development is always difficult. It is not an eligible expense under the State Green Acres Program. One of the most significant reductions in A-1954 is the funding for conservation and recreation projects, from 75% to 50% of Remedial Action costs. Under A-1954, remediation funding for conservation and recreation projects would be capped at $500,000 a year.
In addition to the reductions in funding, A-1954 also proposes changes that may free up encumbered funds from stalled projects. Preliminary Assessments and Site Investigations must be completed within two and three years of award, respectively, or the grant is cancelled. In addition, no grant will be approved until the applicant demonstrates that it has expended or will expend the full amount of any previous grant for the same property.
A comparison between the existing HDSRF Program and the proposed changes is found on the chart below. We hope you find this useful.
|Current Provisions||Proposed Changes|
|Municipalities, Counties & Redevelopment Entities||100% of PA/SI/RI, $3,000,000 a year cap||100% of PA/SI/Ri, $2,000,000 a year cap|
|Municipalities, Counties & Redevelopment Entities||Cap of $750,000 for any one site|
|Municipalities, Counties & Redevelopment Entities||Additional $2,000,000 a year for BDA Sites ($5,000,000 a year total)||Additional $1,000,000 a year for BDA Sites ($3,000,000 a year total)|
|Municipalities, Counties & Redevelopment Entities||BDA Sites – No individual site cap for Remedial Action funding||BDA Sites – $750,000 Remedial Action funding cap for any one site|
|Municipalities, Counties & Redevelopment Entities||75% of Remedial Action costs for recreation or conservation, $5,000,000 a year cap||50% of Remedial Action costs for recreation or conservation, $500,000 a year cap|
|Municipalities, Counties & Redevelopment Entities||100% PA/SI/RI All Environmental Media||PA & SI (100%, Soil Contamination only) $30,000 cap/site
RI (100%, Soil Contamination only) $100,000 cap/site
PA & SI (100%, All Media) $75,000 cap/site
RI (100%, All Media) $250,000 cap/site
|Innocent Party [NJSA 58:10B-6(a)(4)]||$1,000,000 per project cap||$100,000 a year cap, $500,000 per project cap|
|Qualifying Persons||$1,000,000 annual cap||$500,000 annual cap|
|Qualifying Persons||25% project costs of the remediation that is specifically for the use of innovative technology, implementation of limited restricted or unrestricted use, remediation in an EOZ or those who voluntarily remediate if not otherwise eligible. $250,000 project cap||These costs are no longer eligible for HDSRF funding.|