A recent decision by the Appellate Division (Drytech, Inc. v. NJ DEP) highlights unintended consequences in the Department of Environmental Protection’s site remediation program and the need to tweak the system to avoid unnecessary costs and delays to the regulated community.
In 2009, the Legislature enacted the Site Remediation Reform Act, which was designed to privatize the environmental cleanup of contaminated properties. The act created “licensed site remediation professionals” (LSRPs), private sector professionals authorized to act instead of DEP to evaluate contamination and supervise and approve remediation efforts at industrial sites. LSRPs do what DEP formerly did, but more efficiently and expeditiously. At the conclusion of a cleanup, LSRPs issue an approval called a “response action outcome” (RAO), which is the functional equivalent of the “no further action” (NFA) approval formerly issued by DEP under the prior system. DEP maintains limited oversight over LSRPs, and charges a $900 annual fee, which must be paid by the property owner while an LSRP cleanup is underway.
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