Action Required: NJDEP Implements New Vapor Intrusion Screening Levels

The New Jersey Department of Environmental Protection (“NJDEP”) recently issued new vapor intrusion screening levels (“VISL”) and related guidelines, which will have an immediate impact on existing remediation sites. The screening levels were updated to reflect the changes in toxicity values and risk-based equations set forth in the United States Environmental Protection Agency’s (“USEPA”) most recent Regional Screening Level (“RSL”) Tables. NJDEP implemented the new VISL as of January 16, 2013. Parties conducting remediations and their Licensed Site Remediation Professionals will need to analyze how these new screening levels impact their sites.

The procedures and associated timeframes in which to conduct a site evaluation based on the new VISL varies as follows:

  • Unrestricted use final remediation documents for ground water issued prior to January 16, 2013 require no further investigation for the vapor intrusion (“VI”) pathway.
  • Restricted use final remediation documents for ground water issued prior to January 16, 2013 require an evaluation of the VI pathway as part of the biennial certification; an assessment of the order of magnitude changes using the new VISL; and, based on this information, implementation of additional remediation as required.
  • Remedial Action Workplans for ground water issued prior to January 16, 2013 require a review of existing data for order of magnitude changes using the new VISL and, based on this information, implementation of additional remediation as required.
  • If none of the aforementioned scenarios exist, there is a 90 day period to evaluate all existing site conditions and data using the new VISL. The 90-day review period terminates April 16, 2013.

A VISL implementation flowchart is available here.

As a result of the new VISL, the screening levels for some compounds, including tetrachloroethene, have increased while five others, including 1.3-dichlorobenzene, have been eliminated completely. In addition, the new VISL tables contain two new compounds: naphthalene and 2-methylnaphthalene. Accordingly, under the new VISL, certain cases may no longer meet the criteria as an Immediate Environmental Concern or Vapor Concern and may be reclassified where appropriate.

The new NJDEP master table of VISL is available here.

NJDEP will host a session on the new VISL on Wednesday, January 30th, from 1:00 - 3:00 PM in the DEP Public Hearing Room, in Trenton, New Jersey. The seminar will also be available via webinar.


Sandro G. Ocasio is an Associate in the Gibbons Real Property & Environmental Department.

Final ARRCS Rules Adoption Published in NJ Register

To fully implement the Site Remediation Reform Act, the New Jersey Department of Environmental Protection (NJDEP) has published a notice of adoption of amendments to the Administrative Requirements for the Remediation of Contaminated Sites (ARRCS rules), N.J.A.C. 7:26C in the New Jersey Register today, May 7, 2012. This adoption also amends several other rules related to site remediation in New Jersey, including the repeal and replacement of the Technical Requirements for Site Remediation, N.J.A.C. 7:26E, and amendments to the Industrial Site Recovery Act rules, N.J.A.C. 7:26B. This rule adoption is concurrent with the final May 7, 2012 deadline for almost all remediating parties to engage a Licensed Site Remediation Professional to conduct remediations in NJ.


David A. Brooks is a Director in the Gibbons Real Property & Environmental Department.

Cause for Concern? NJDEP to Score Contaminated Sites Under the Remedial Priority Scoring System

The New Jersey Department of Environmental Protection ("NJDEP") will soon release scores for contaminated properties pursuant to the Remedial Priority Scoring ("RPS") system. The RPS system was mandated by the Spill Compensation and Control Act (N.J.S.A. 58:10-23.16) as amended by the Site Remediation Reform Act ("SRRA").

Under the statute, the factors that NJDEP may consider in ranking the sites include: 

  • the level of risk to the public health, safety, or the environment;
  • the length of time the site has been undergoing remediation;
  • the economic impact of the contaminated site on the municipality and on surrounding property; and
  • any other factors deemed relevant by the NJDEP.

The RPS system is a computerized modeling system designed to help the Department to categorize sites based on potential risk to public health, safety or the environment. The RPS model utilizes a variety of information, including ground water, soil, and vapor intrusion, sampling data to determine a site score. Once the RPS score is determined, the site is catalogued for relative ranking against sites with similar scores and assigned a specific category number from 1 through 5. Category 1 represents the lowest score (least potential risk to public health) and Category 5 represents the highest score (greatest potential risk to public health).

Should the RPS scores trouble remediating parties? On the one hand, the Department states that it will use the RPS system simply to assist it in allocating its Site Remediation Program resources and that categories represent potential risk and are not indicative of compliance. On the other hand, NJDEP admits that the RPS system is a tool to help it evaluate if direct oversight of remediation activity by the NJDEP is warranted now that the typical remediation will be overseen by a private Licensed Site Remediation Professional. Indeed, N.J.S.A. § 58:10C-27(b)(4) states that a site ranked by the “category requiring the highest priority pursuant to the ranking system” may be subject to direct oversight.

But fear not. NJDEP advises that “if a Category 5 site is being actively remediated pursuant to the regulations and in compliance with the mandatory and regulatory timeframes then it would not be considered for direct Department oversight.” Additionally, the responsible party is allowed a one-time opportunity to review their initial score and category and may provide NJDEP with supplemental information that should have been submitted if it believes the initial score is based on old or incorrect data. Therefore, direct oversight is not automatic, however, a party expecting a Category 5 ranking should be diligent in ensuring it is in compliance with all regulations. A party receiving a Category 5 ranking will have the opportunity to convince NJDEP that it deserves a lower score.

NJDEP anticipates that the category determinations will be finalized and posted on the SRP website in September of 2012. Originally, NJDEP intended to send letters to responsible parties with their draft scores last November. This exercise was pushed back, but will need to occur by June in order for NJDEP to have a sufficient comment and review period prior to the September posting. After September, NJDEP will then update its listing during the first year at 6 month intervals and then quarterly from that point forward.


Sandro G. Ocasio is an Associate in the Gibbons Real Property & Environmental Department.

NJDEP Clarifies Impact of Site Remediation Reform Act on Requirements of Administrative Consent Orders and Remediation Agreements

With full implementation of the Site Remediation Reform Act on the horizon, the New Jersey Department of Environmental Protection (NJDEP) recently clarified that for parties currently proceeding with remediation under NJDEP oversight pursuant to an Administrative Consent Order (ACO) or Remediation Agreement (RA), such parties will be expected to engage a Licensed Site Remediation Professional no later than May 7, 2012. Any ACO/RA requirements to obtain NJDEP pre-approval of reports and workplans will be held in abeyance. Likewise, any ACO/RA specific timeframes will also be held in abeyance. Instead, responsible parties must meet all regulatory and mandatory timeframes prescribed in applicable rules. However, the ACO/RA will otherwise remain in effect until the remediation is complete or covered by a remedial action permit and parties will be subject to, among other requirements, the remediation funding source requirements and stipulated penalties.


David A. Brooks is a Director in the Gibbons Real Property & Environmental Law Department.

NJDEP to Issue Draft Remedial Priority Scores for Contaminated Sites

In the next few weeks, responsible parties for some 12,000 known contaminated sites in New Jersey will be receiving a letter with a draft Remedial Priority Score (RPS) for their particular site compliments of the New Jersey Department of Environmental Protection (NJDEP). The NJDEP has not specified how the rankings will be used, although the RPS system has been described by the NJDEP as “a triage tool to sort sites for further consideration.”

Under the Site Remediation Reform Act (SRRA), N.J.S.A. 58:10C-1 et seq., passed in May 2009, the NJDEP is required to establish a ranking system for active remediation sites based on risk to public health, safety and the environment, the length of time the site has been undergoing cleanup, economic impact, and other relevant factors. To that end, NJDEP designed the Remedial Priority Scoring system which uses modeling assumptions on data gathered from a number of databases on the 12,000 known contaminated sites. Certain sites are excluded from the RPS process, including homeowner sites, sites undergoing operations and maintenance monitoring, and unknown source cases.

The computerized process attempts to provide relative rankings of active sites using selected data from the Geographic Information System (GIS) tools, multiple geographic databases and layers, the New Jersey Environmental Management System (NJEMS), the Known Contaminated Sites (KCS) report, and groundwater sampling data. Ongoing development of the model will eventually incorporate contaminated soil data and corresponding pathways. All sites will receive a tiered ranking between one and five, with tier five representing the highest contamination risk.

The RPS system attempts to minimize subjective human interpretations and anecdotal data, and thus, the final score is only as reliable as the data upon which the model is based. Score accuracy thus depends on the quality and quantity of the available data. Responsible parties can take action to improve a score by submitting additional information. For example, “closed” pathways between the source of contamination and receptors, institutional and engineering controls, and the absence of an impact to groundwater all act to reduce the cumulative risk of a site. Responsible parties will have sixty (60) days to challenge the ranking by submitting new information or an explanation of why the proposed ranking is inaccurate or fails to account for certain data.

While it is not clear what use NJDEP will make of these rankings, one can be sure that creative lawyers will be analyzing potential uses for them particularly in the area of toxic torts, environmental cost recovery cases and property transfers. Responsible parties should be on the look out for these draft RPS rank letters and analyze them carefully.


Susanne Peticolas is a Director in the Gibbons Real Property & Environmental Department. Brett S. Theisen, an Associate in the Gibbons Financial Restructuring & Creditors' Rights Department, assisted in the preparation of this post.

NJDEP Proposes New Rules for Site Cleanups

On August 15, 2011, the New Jersey Department of Environmental Protection (NJDEP) issued proposed Final Rules to implement the Site Remediation Reform Act (SRRA) adopted in May 2009. These rules are intended to be the final implementation step in the phased transition of New Jersey’s site remediation process from NJDEP command and control to private oversight by Licensed Site Remediation Professionals (LSRPs). Instead of NJDEP overseeing every step of a cleanup, the LSRP, licensed by a 13-member Licensed Site Remediation Professional Board with investigative and disciplinary powers, is responsible for making day-to-day decisions about a clean-up. Certain categories of cleanups remain under NJDEP oversight, such as where the responsible party has a history of non-compliance or has failed to meet mandatory deadlines. The rule proposal appeared in the New Jersey Register on August 15, 2011 and can be viewed online. Comments can be submitted until October 14, 2011.

The proposal includes major amendments, repeals and new rules intended to fully implement the new LSRP oversight remediation paradigm. The proposed Final Rules provide for the following:

  • Amending the Administrative Requirements for the Remediation of Contaminated Sites (ARRCS) rules, the Underground Storage Tank (UST) rules and the Industrial Site Remediation Act (ISRA) Rules to remove all provisions related to the phase-in period;
  • Recodifying all administrative requirements from the ISRA Rules and UST rules to the ARRCS rules;
  • Adding mandatory timeframes for completion of remedial investigation and implementation of remedial action;
  • Repealing and replacing the current Technical Requirements with new performance-based Technical Requirements, intended to allow more flexibility in addressing contamination and potential exposure pathways. Many of the existing Technical Requirements will be recast as a new series of technical guidance documents providing direction on how to achieve the performance-based goals;
  • Amending the Discharges of Petroleum and Other Hazardous Substances rules to require compliance with both a facility’s discharge cleanup and removal plan and the ARRCs rules; and 
  • Reformatting text where needed to make the rules easier to understand, to correct typographical and grammatical errors, and to update cross-references.

According to NJDEP Commissioner Bob Martin,

It is a priority of the Christie Administration to clean the more than 16,000 contaminated sites across the State. This is an important step to help us more quickly and efficiently achieve that important goal. It will benefit public health and the environment, and will make underutilized properties available more quickly for redevelopment, benefiting economic growth.

The proposed rules were developed with the input of interested stakeholders. A public hearing on the proposed rules is scheduled for September 13 at 9 am in the first floor public hearing room at the DEP building, 401 East State Street, Trenton. NJDEP will accept written comments until October 14, addressed to Janis Hoagland, NJDEP, Office of Legal Affairs, Mail Code 401-041L, PO Box 402, 401 East State Street, 4th Floor, Trenton, NJ 08625-0402, ATTN: DEP Docket No. 12-11-07. The transition of New Jersey’s site remediation process from NJDEP command and control to private oversight by LSRPs presents complex issues for the department and the regulated community. Thus it is important for the regulated community to analyze the proposed rules and take advantage of NJDEP’s efforts to respond to stakeholder comments.


Susanne Peticolas is a Director in the Gibbons Real Property & Environmental Department.

Six New Jersey Communities Will Share $3.4 Million in EPA Brownfield Grants

The EPA has announced that six different New Jersey communities will receive a total of $3.4 million under the agency’s brownfield grant program in FY 2011. The grants will fund assessment and cleanup efforts at contaminated sites so that the sites can be returned to productive use. The grant program, part of EPA’s larger brownfield efforts, will award some $76 million in grants this year, and has awarded over $800 million since its inception. New Jersey’s grants will fund activities at thirteen sites or areas in Newark, Jersey City, Trenton, Elizabeth, Mantua Township, and Maurice River Township.

At the state level, government funding for brownfield revitalization in New Jersey has virtually dried up. As reported on this blog earlier this month, New Jersey’s Brownfield Reimbursement Program has run out of money and is temporarily shut down.


Paul M. Hauge is an Associate in the Gibbons Real Property & Environmental Department.

NJDEP Licensing Board Sets April 18 Deadline for Comments on LSRP Audit Process

The Audit Committee of the New Jersey Department of Environmental Protection’s Site Remediation Professional Licensing Board is soliciting comments on its draft process and questionnaire for the completion of statutorily required audits of the work of Licensed Site Remediation Professionals (LSRPs). The Committee is accepting comments until April 18, 2011. The Board intends to finalize the process and questionnaire at its May 2, 2011 meeting.

The New Jersey Site Remediation Reform Act created the Board to oversee the work of LSRPs. Under the statute, each year the Board must audit the submissions and conduct of at least 10% of all LSRPs. The audits will serve as a first step for gathering information on LSRP submissions and on their compliance with the statute’s code of conduct for LSRPs. The draft process and questionnaire can be found on the Board’s website.

Comments should be submitted by 5:00 p.m. on April 18, 2011 via e-mail to karen.hershey@dep.state.nj.us or via mail to:

Site Remediation Professional Licensing Board
c/o New Jersey Department of Environmental Protection/Site Remediation Program
Office of Assistant Commissioner
PO Box 420; Mailcode 401-06
401 East State Street
Trenton, New Jersey 08625-0420
Attn: Audit Committee


Paul M. Hauge is an Associate in the Gibbons Real Property & Environmental Department.

New Jersey Department of Environmental Protection Proposes Waiver Rule for Economic Growth

Today, the New Jersey Department of Environmental Protection (NJDEP) published a proposed rule outlining circumstances in which the department would consider a waiver of environmental regulations that stand in the way of economic development. NJDEP will be holding a hearing on the proposed rule on April 14, 2011, at 3:00 pm.

The rule follows the Governor’s “Common Sense Principles” outlined in Executive Order No. 2 which focused on the need to reduce the high costs and regulatory burdens that are thought to impede growth and opportunity in the State of New Jersey.

The proposed rule would allow a waiver application in the following circumstances:

  • Two or more department rules conflict, or a department rule conflicts with the rule of another State agency or a Federal agency in a way that makes compliance with both impossible or impracticable.
  • Strict compliance with the rule will be unduly burdensome because it imposes actual, exceptional hardship or excessive cost in relation to an alternative measure of compliance that achieves comparable or greater benefits.
  • A waiver could result in a net environmental benefit, for example, using innovative technology or nontraditional methods or materials.
  • When there is a public emergency declared by a Federal or State official, and waiver would best ensure protection of the public health, safety and welfare, and the environment.

The waiver is not intended to be routine or usual. Moreover, it cannot be inconsistent with NJDEP’s core mission of protecting the State’s natural resources, human health, safety and the environment. Certain rules are not eligible for a waiver under the proposed rule including those implementing certain Federal programs, the air emissions trading program, human health protection standards, endangered species designations, remediation funding sources, licensing or registration requirements, public notice requirements, and department fees or costs.

NJDEP Commissioner Bob Martin praised the proposed rule, stating:

This is an important tool that will benefit the environment and the State’s economy….One size doesn’t always fit all in government. This offers a practical flexibility in allowing us to deal with issues.

NJDEP is accepting comments to the proposed rule through May 6, 2011.


Susanne Peticolas is a Director in the Gibbons Real Property & Environmental Department.

NJDEP Site Remediation Implements Steps to Increase Permit Efficiency

One perennial criticism leveled at the Department of Environmental Protection (“NJDEP”) is that it takes too long to issue permits. There have been a long list of initiatives intended to ensure that the NJDEP makes permit decisions which are predictable and timely. Indeed, Commissioner Martin has repeatedly commented on the need to ensure that NJDEP perform efficiently and focus on servicing all stakeholders - including applicants, and included this goal in his 2010 Vision Statement for the department. At long last, NJDEP appears to be taking concrete steps to implement efficiencies in the permit process. On January 27, 2011, NJDEP announced that it would begin to tackle this problem by changing the way it processes the most common land-use permits for contaminated sites and landfill closures.

Effective February 1, 2011, applications for land use permits such as Freshwater Wetlands, Flood Hazard and CAFRA will be processed by a special unit within the Site Remediation Group. The Office of Dredging and Sediment Technology has dealt with many of these issues over the years and will now process all land use permits for remediation projects ranging from site clean-up to landfill closure.

The lack of timely permits can be especially frustrating for potentially responsible parties engaged in the process of site investigation and remediation. When clean-ups involve environmentally sensitive areas such as wetlands, flood hazard areas or riparian lands, companies can be whipsawed between the need to quickly investigate and respond to a perceived threat to human health or the environment and delays while approved clean-up plans undergo environmental permit review.

NJDEP’s announcement promises some relief to this problem. Although this change in procedures is not the “one stop shopping” which the regulated community often seeks, if it proves successful, it can only help speed the pace of clean-ups and may help return distressed real property to productive use.

NJDEP Announces Availability of New Forms for Site Remediation Program

On January 13, 2011, the New Jersey Department of Environmental Protection’s Site Remediation Program will release new and updated forms for use by those conducting site investigations and cleanups. The forms -- which already number in the dozens -- must be used when information is submitted to the Program, and were developed pursuant to the requirements of the Site Remediation Reform Act. Interested parties will be able to see the new and updated forms by visiting a dedicated webpage, scrolling down or clicking on “Current Forms,” and noting the version and date for each form.


Paul M. Hauge is an Associate in the Gibbons Real Property & Environmental Department.

NJDEP Seeks Early Input on Revisions to Site Cleanup Rules

The New Jersey Department of Environmental Protection is seeking input from all interested stakeholders as it develops proposed revisions to three separate sets of regulations that govern site cleanups: the Administrative Requirements for the Remediation of Contaminated Sites (“ARRCS”) rules,which were drafted to implement the Site Remediation Reform Act; the regulations covering cleanups under the Industrial Site Recovery Act (“ISRA”); and the rules for cleanups involving underground storage tanks. NJDEP’s call for public input represents an unusual opportunity to affect the agency’s plans as the proposals are being drafted. Three members of the Gibbons Environmental Team have already published a detailed analysis of important issues raised by NJDEP’s working drafts.

The stakeholder process is designed to incorporate the views and concerns of important segments of the public into the redesign of the regulations to make them consistent with the SRRA-created Licensed Site Remedial Professional (“LSRP”) program by the statutory deadline of May 2012. NJDEP anticipates publishing a formal proposal for revising the regulations in May 2011.

A dedicated page on NJDEP’s website includes links to working drafts of the revisions, as well as instructions on how to submit comments. Comments must be submitted by January 14, 2011 in an e-mail to SRRA@dep.state.nj.us with a subject line that reads “Stakeholder Input.”


Paul M. Hauge is an Associate in the Gibbons Real Property & Environmental Department.

USEPA Soliciting Comments on Guidance for Institutional Controls

Institutional controls, regulatory limits on human activity at a site, go by many names. The Department of Defense uses the term “land use controls.” ASTM E2091-00 has elected to use the phase “activity and use limitations.” Traditional real estate lawyers often think in terms of “covenants” or “easements.” Here in New Jersey, the Site Remediation Program uses the term “Deed Notice,” while the Freshwater Wetlands Permit Program has adopted the term “Conservation Restriction or Easement,” N.J.A.C. 7:7A-1.4. Whatever name they go by, institutional controls are intended to regulate human behavior and are used to supplement environmental remediation efforts by reducing the risk of unintended exposure to residual contamination. As a result, institutional controls are critical to the redevelopment of contaminated real estate and cost-effective clean-ups.

There is an ongoing debate over the effectiveness of institutional controls. Regulators, responsible parties and environmental practitioners are increasingly aware of the costs and challenges of using institutional controls. EPA’s Office of Solid Waste and Emergency Response has recently issued a preliminary draft second in what is intended to be a series of guidance documents governing the use institutional controls. EPA is soliciting public comment on this interim guidance document.

EPA’s November 2010 Interim Final Draft is entitled “Institutional Controls: A Guide to Planning, Implementing, Maintaining and Enforcing Institutional Controls at Contaminated Sites.” This document outlines EPA policy regarding institutional controls. The guidance document also presents a discussion of long-term site “stewardship” and enforcement options. EPA, like its state counterparts, is increasing focused on enforcement issues.

EPA is collecting comments on this guidance document. Comments must be received on or before January 14, 2011. Regardless of whether you plan to comment, environmental practitioners who advise clients on redevelopment and clean-up issues should be aware of EPA’s guidance on these issues.

What is NJ's LSRP?

After over a year since its creation, the nature of New Jersey’s Licensed Site Remediation Professional (LSRP) is still unclear. The program, signed into law in May 2009, removes the responsibility for oversight of clean-ups of contaminated sites from the New Jersey Department of Environmental Protection (NJDEP) to a cadre of licensed privately paid professionals. NJDEP will retain direct oversight of more complex sites and will resume direct oversight of LSRP sites under certain circumstances. It will take some time for the kinks in the program to be worked out. Depending on who you speak to, the view of what the LSRP is differs.

When the idea was first proposed, the environmental groups were convinced that the LSRP would be the proverbial “fox in the henhouse.” The concern was based on the fact that the LSRP is selected and paid by the responsible party - the polluter - in the view of these groups. The LSRP decides what needs to be done, how to do it, how much money will be needed to assure the clean-up and when the clean-up is finished. The final “sign off,” the Response Action Outcome (“RAO”) is issued by the LSRP. The RAO gives the responsible party a covenant not to sue by the NJDEP with respect to the property which was remediated.

In December of 2009, Jeff Tittel, Executive Director of New Jersey Sierra Club complained, “The LSRP program is much worse than the fox guarding the henhouse. It’s the fox building the henhouse and certifying that it’s safe.”

NJDEP would like the LSRP to be a deputized case manager, an environmental watchdog. NJDEP needed the program because of the extensive backlog of cases and timelines of cleanup running into years. NJDEP simply did not have the manpower to handle all of the cases. Under the program, the LSRP is not free to do what s/he pleases. A remediation of a site in the LSRP program is subject to mandatory deadlines, which recently had to be extended and the LSRP must adhere to detailed technical regulations, use presumptive remedies and follow any available and appropriate technical guidelines issued by the department. The work and the RAO are subject to audit by NJDEP for three years. The LSRP’s highest priority in his or her professional performance is the protection of public health and safety and the environment. In NJDEP’s view, apparently, the LSRP should be the environment’s loyal and dutiful guard dog.

To ensure that the highest priority is respected, the LSRP will be licensed by a professional board that has extensive authority over the LSRP, including issuing standards for professional conduct, investigating complaints, imposing discipline and maintaining lists of LSRP’s in good standing and suspended professionals. The board may revoke licenses and impose civil penalties and petition the attorney general to bring a criminal action against an LSRP.

The responsible party has a different perspective. In the past, an environmental consultant was a knowledgeable and trusted advisor. Their role included acting as the responsible party’s advocate in the face of what often seemed like excessive sampling demands and overly expensive remedies required by NJDEP. Under the LSRP program, this relationship has changed significantly. LSRP’s highest priority is not service to the client, but protection of public health and the environment. The statute imposes a duty on the LSRP to report any action or decision of the client that results in a deviation from the remedial action workplan or other report, a duty to report any discharge he sees on a site he is responsible for, and a duty to report an immediate environmental concern even for sites s/he is not responsible for. All information and documents reviewed and relied on in connection with the remediation must be disclosed to NJDEP. Moreover, the LSRP has a responsibility to make a good faith and reasonable effort to to obtain relevant facts, data, reports and other information in possession of the owner or otherwise available. Although the statue provides for protecting “confidential information” designated so in writing by the client, it is unclear whether the reporting requirement would trump that confidence. Among the responsible party group, there is a concern that the role prescribed for the LSRP by the statute and regulations is that of the rat.

And what of the LSRP’s perspective? In the face of the statutory requirements, licensing and prescriptive tech regulations, as well as scrutiny from NJDEP and a licensing board, the LSRP also finds himself on the front lines of liability. In the past, all remediation decisions had to be approved by NJDEP. If something went wrong down the line, as long as the consultant had done the work correctly, an error in where sampling took place or a remedy failure, wasn’t the consultant’s fault….the decision had been NJDEP’s. That “shield” is no longer there. All of the relevant decisions will now be made by the LSRP. Moreover, unlike other professionals, the LSRP does not have the protection of the affidavit of merit. Little wonder some of the LSRPs worry that they will end up as scapegoats, with everyone blaming them.

Only time will tell what the ultimate role of the LSRP will be. And since the use of an LSRP will be mandatory for most remediations in N.J. on or after May 7, 2012, that time is coming soon.


Susanne Peticolas is a Director in the Gibbons Real Property & Environmental Department.

Irv Freilich and Susanne Peticolas to Speak on New Jersey's LSRP Program at ABA Regional CLE Workshop

Irv Freilich and Susanne Peticolas, Directors in Gibbons Real Property & Environmental Department, will be panelists at ABA’s upcoming Regional CLE Workshop on October 27, 2010, titled "The Road Ahead: The Obstacles and Pitfalls to New Jersey’s Implementation of the LSRP Program" at Seton Hall Law School. For more information or to register for the program, click here.

The program will feature interactive panels composed of nationally known environmental lawyers, in-house counsel and consultants who will discuss the details and implications of New Jersey’s Site Remediation Reform Act (SRRA), and in particular the newly minted Licensed Site Remediation Professional (LSRP) program. The impact of the LSRP program on environmental practitioners will be far reaching and extraordinary. From the manner in which environmental consultants will be retained and site investigations and clean-ups accomplished, to the ethical, work product and litigation considerations counsel will need to evaluate and address, the LSRP Program represents a sea-change in the way environmental counsel will practice their trade in the years to come.

The program has already dramatically changed the relationship between the environmental consultant and the client and raised the specter of frivolous suits from disgruntled clients. In addition, NJ Department of Environmental Protection has had to propose revisions to the SRRA interim rules relaxing certain remediation deadlines. These developments highlight the complex issues presented by the transition of New Jersey’s site remediation process from NJDEP command and control to private oversight by LSRPs and underscore the need to keep abreast of a rapidly developing area.

NJDEP Proposes Relief From Site Remediation Reform Act Requirements

On October 4, 2010, the New Jersey Department of Environmental Protection (NJDEP) formally proposed revisions to the Site Remediation Reform Act’s (SRRA) interim rules. The revisions impact two important components of the interim rules: remediation deadlines and vapor intrusion investigations. These technical amendments are based upon stakeholder input and are intended to reduce the burden on the regulated community and New Jersey’s newly minted Licensed Site Remediation Professionals (LSRPs). The rule proposal appeared in the New Jersey Register on October 4, 2010 and can be viewed online. Comments can be submitted until December 3, 2010.

When adopting the SRRA, the New Jersey Legislature created a special enforcement mechanism called “direct oversight.” When a site, phase of the clean-up process or condition at the site warrants “direct oversight,” all of the key decisions - especially remedy selection - are made by NJDEP. In direct oversight the responsible party simply pays the bills - NJDEP makes the decisions. The SRRA also provides that when the responsible party misses a remediation milestone, then NJDEP must exercise direct oversight. N.J.S.A. 58:10C-27.

NJDEP’s pending rule proposal relaxes three important remediation milestones established by the interim rules. N.J.A.C. 7:26C-3.3.:

  • the deadline for submitting preliminary assessment reports,
  • the deadline for immediate environmental concern source control,
  • and the deadline for installing free product removal technology at sites containing non-aqueous phase liquids, (generally to March 1, 2011 at the earliest).

The proposed rule is designed to reduce the risk of triggering mandatory direct oversight because of insufficient time to meet prescribed deadlines.

The second part of the proposed rule amends NJDEP’s long-standing Vapor Intrusion Program. The proposed rule establishes a new class of vapor intrusion investigations (called “Vapor Concern Cases”) and adjusts the way indoor air screening levels are applied as well as certain deadlines for action to respond to vapor intrusion. The vapor intrusion rules remain complex and cumbersome. Nevertheless, these amendments can provide additional time to evaluate the situation and implement mitigation.

These proposed new rules underscore the complex issues presented by the transition of New Jersey’s site remediation process from NJDEP command and control to private oversight by LSRPs. The regulated community should support these rules as well as NJDEP’s general efforts to respond to stakeholder comments. All parties must be mindful that the interim package of SRRA regulations -- adopted on an emergency basis in November 2009 -- expire on May 4, 2011. The real action will happen in the coming months when the permanent SRRA rule proposal hits the streets.

The Lighter Side of LSRP: Opportunity to Reduce Remediation Funding Source in New Jersey

With the advent of New Jersey’s LSRP program comes an added financial benefit for environmental remediation matters requiring a remediation funding source (“RFS”). There is an opportunity to save on the statutory annual 1% surcharge on an RFS, especially useful for those sites subject to the requirements of the Industrial Site Recovery Act.

Among the new remediation requirements in the Administrative Requirements for the Remediation of Contaminated Sites, N.J.A.C. 7:26C (“ARRCS”) is an annual remediation cost review to be submitted to the NJDEP on a Remediation Cost Review Form. N.J.A.C. 7:26C-5.10. For new sites subject to the LSRP program and for older sites that have opted-in to the LSRP program, the form must be certified by the site’s LSRP.

Based on the revised cost of the remediation developed in conjunction with the annual review (though this can also be done at other times as well), the person required to establish it, may reduce the amount of the RFS upon submission of the remediation cost review form to the NJDEP. N.J.A.C. 7:26C-5.11. So long as its certified by the LSRP, there is no need to obtain NJDEP approval of an RFS reduction. Of course, such a reduction is ultimately subject to the NJDEP’s broad rights of review of all documents and submissions. N.J.S.A. 58:10C-21. Thus, if the RFS is reduced by the LSRP, then, the 1% RFS surcharge required by 7:26C-5.9 will accordingly be reduced. In addition, to the extent the cost of the RFS itself is driven by the amount (such as with letters of credit), there will be further cost savings. For those sites subject to an ISRA Remediation Agreement with high initial remediation cost estimates that have not been reviewed recently, there may be an opportunity for a substantial cost savings.

For those sites with a remediation trust fund as an RFS, the NJDEP is currently developing a new form of trust agreement to replace the current form which continues to require NJDEP approval for reductions and withdrawals.

Please note that by using a self guarantee as a RFS, a responsible party can continue to avoid the 1% surcharge altogether. See N.J.A.C. 7:26C-5.9.


David A. Brooks is an Associate in the Real Property & Environmental Department.

NJ LSRPs Open to Frivolous Claims

Despite the new licensing program for environmental consultants in New Jersey, they still remain open to professional tort claims without the necessity of an affidavit of merit. As required by N.J.S.A. 2A:53A-27, a plaintiff making a claim for malpractice or negligence against a “licensed person” must provide an, “affidavit of an appropriate licensed person that there exists a reasonable probability that the care, skill or knowledge exercised or exhibited in the treatment, practice, or work that is the subject of the complaint, fell outside acceptable professional or occupational standards or treatment practices.”

Fifteen different types of “licensed persons” are subject to this requirement. N.J.S.A. 2A:53A-26. However, “licensed person” does not include “environmental consultants” broadly, though environmental engineers, licensed pursuant to N.J.S.A. 45:8-27, do fall within the definition of “licensed persons.” Those environmental consultants who are geologists by education and training and/or in the past, licensed pursuant to the requirements of the Underground Storage Tank Certification Program, N.J.S.A. 58:10A-24.1-8, are not included within the definition of “licensed person.”

In establishing Licensed Site Remediation Professionals (“LSRP”) in the Site Remediation Reform Act, N.J.S.A. 58:10C-1 et seq., the legislature did not add LSRP’s to the definition of “Licensed Person” for purposes of compliance with New Jersey’s affidavit of merit statute. Perhaps the issue is the mandate of the LSRP to, first and foremost, protect the “public health and safety and the environment,” N.J.S.A. 58:10C-16, as opposed to first serving the interest of their clients, though requiring an affidavit of merit does not appear to be inconsistent with such broad goals. In any event, LSRP’s must be aware that this new license alone does not appear to afford them the potential protections from frivolous law suits afforded by the affidavit of merit statute.


David A. Brooks is an Associate in the Gibbons Real Property and Environmental Department.

Tic, TAC, No Dough for Innocent Landowner in NJ Who Sells Property Before Brownfield Grant

Last year, the Appellate Division in TAC Associates v. NJDEP, 408 N.J. Super. 117 (App. Div. 2009) had held that an applicant under the NJ Brownfield Innocent Party Grant, N.J.S.A. 58:10B-5, need not be a landowner at the time of application for such grant. In so ruling, the Appellate Division invalidated NJDEP regulations that imposed an ownership requirement, a requirement absent from the underlying statute.

In January of 2010, the legislature amended the Act to require that the landowner must acquire the property before 1983 and own it until application is made for a grant and the application is granted. On July 15, 2010, the New Jersey Supreme Court reversed the Appellate Division in TAC, holding that the “after the fact” amendment by the legislature clarified the intent of the legislation which the NJDEP gleaned in issuing its regulations.

Justice Rivera-Soto, in dissent, criticized the ruling,

The unvarnished and ugly truth is that, recognizing their error, defendants [NJDEP and NJEDA] scurried -- four years after the fact, six and one-half months after their position had been rebuffed by the Appellate Division, and while this appeal was pending before this Court -- to have the Legislature ratify rules defendants adopted that plainly exceeded the original statutory mandate.

With brownfields property, the greatest difficulty is obtaining funds. Often the purchaser is interested in obtaining the property and having it cleaned up, but not in funding it. This holding restricts who can actually get grants. Grants defray, but do not cover the costs of cleanup. Owners who may have held property for over 27 years must continue to hold it until the application is granted and cannot have the benefit of the sales proceeds until the sale is consummated. It frequently takes years to get a grant approved.

This ruling will undoubtedly limit the number of eligible grantees. Indeed, that seems to be the point. As NJDEP and NJEDA asserted in their successful argument for reversal, “the Appellate Division’s holding would create a financial strain on the State and on the HDSRF [Hazardous Discharge Site Remediation Fund] by expanding eligibility for grants to a broader array of applicants.”


John H. Klock is a Director in the Gibbons Real Property & Environmental Department.

Gulf Coast Spill Impacts Legislation in Trenton, NJ

This summer, the long shadow cast by the oil rig blow-out in the Gulf of Mexico seems to be everywhere. For example, we recently reported that EPA has written to Congress endorsing the concept of reinstating the Superfund tax which expired back in 1995. Thus, it was only a matter of time before New Jersey got into the act.

On July 15, 2010, the Senate Environment and Energy Committee in Trenton took up S-2108. If adopted in its present form this bill would raise the limit on liability pursuant to the New Jersey Spill Compensation and Control Act from $50 million to $1 billion.

It is easy to question the necessity of increasing the limit on Spill Act liability. After all, the Spill Fund is used primarily to address contamination from land based facilities. If New Jersey were to experience an event where the total damages could exceed $50 million there is already overlapping state and federal authority under CERCLA, RCRA and the Oil Pollution Act of 1990.

It remains to be seen whether this sort of legislative reaction to a long hot summer of bad news from the Gulf will resonate with the new business friendly administration in Trenton. But it is already clear that the events in the Gulf have reached Trenton.

*Photo courtesy of EPA.

Site Remediation Process - NJ to Develop Remedial Priority System

New Jersey is pressing forward with its efforts to privatize the site remediation process. Since adoption of the Site Remediation Reform Act (SRRA) in May 2009, there has been a steady stream of new regulations, new guidance documents and revised forms. Because of these changes, practitioners must constantly check the New Jersey Department of Environmental Protection’s website.

As part of the SRRA, the Legislature directed NJDEP to develop a remedial priority system. This system will combine readily available information about site specific characteristics and contamination with public data about receptors to develop a risk index. (This process should sound familiar to anyone who has worked with EPA’s Hazard Ranking System outlined in its complex Final Rule.)

The remedial priority system will dictate how NJDEP allocates its scarce resources when performing remediation outside the private Licensed Site Remediation Professional program. In addition, the priority system will impact which sites find their way into the direct oversight program.

NJDEP is forming a task force of interested parties to work on the remedial priority system. Nominations closed on June 18, 2010. Additional information is available about the mission of this novel task force at the Site Remediation Program’s website.

Keeping Up With SRRA Developments

The passage in 2009 of the Site Remediation Reform Act (SRRA) introduced a great deal of uncertainty into the site cleanup process. The procedures, paperwork, and terminology of the site cleanup process have changed. NJDEP has developed a web page to help the public to stay abreast of all SRRA developments, including information such as the new Administrative Requirements for the Remediation of Contaminated Sites (ARRCS Rules).


Paul M. Hauge is an Associate in the Gibbons Real Property & Environmental Department.