BY MARTIN C. DAKS, CONTRIBUTING EDITOR
WHEN PHIL MURPHY WAS running for governor, he advanced an ambitious environmental agenda. Now that he is in Trenton as New Jersey’s top executive, inquiring minds are asking how Gov. Murphy’s green agenda will affect businesses. COMMERCE asked the following experts for their insights, thoughts and observations.
PennJersey Environmental Consulting
Rodger A. Ferguson, Jr., LSRP, President
“Gov. Murphy has said he wants to focus on issues such as greenhouse gases and global warming, and coastal resiliency, and I suspect that will be the major part of his initial environmental focus,” explains Ferguson, incoming president of the Licensed Site Remediation Professionals Association (LSRPA).“It’s been our experience that when a Democratic administration takes over from a Republican one, an increase in enforcement-related activities follows.”
The increased enforcement emphasis is likely to result in more work for environmental consulting businesses, he adds, since companies that get a letter from the state will be seeking assistance. “For example, missing remediation timeframes could result in direct NJDEP oversight, which will be more costly and restrictive to the responsible party.”
Ferguson says that one of his firm’s ongoing projects involves “a prospective site buyer who called us in to doublecheck the property before he signed the deal. The seller’s consultants gave it a clean bill of health, but we investigated extensively and found significant problems. The buyer still went ahead with the deal, but “was able to negotiate a significantly lower price because of our work.”
McCarter & English, LLP
Lanny Kurzweil, Esq., Partner, Environment & Energy Practice Group
Any change in administration represents opportunities and challenges for businesses in New Jersey, according to Kurzweil, co-moderator of CIANJ’s Environmental Business Council Roundtable.
“Gov. Murphy has been outspoken about his commitments to infrastructure and clean energy, and his concern about climate change,” he says. “This can be a tremendous opportunity for developers who want to invest in offshore wind generation facilities, for example; and there will probably be opportunities in the solar segment. Murphy has a long list of environmental priorities that were first articulated during his campaign and were provided with further heft in the report issued by his environment and energy transition team in January and in his choice of Catherine McCabe as NJDEP Commissioner.”
McCarter & English’s current clients include a developer that acquired a nearly 300-acre site in mid-Jersey, that was previously used by a chemicals company. “It’s being redeveloped for light manufacturing, warehouse and e-commerce uses.”
Donald W. Richardson, CPG, President
“I expect the new governor will put a greater emphasis on environmental compliance and enforcement, given his NJDEP Commissioner appointment of Catherine McCabe, a former USEPA deputy assistant administrator in these two areas,” says Richardson.“The governor has pledged to embrace renewable energy initiatives, including solar, offshore wind and clean air through a commitment to the Regional Greenhouse Gas Initiative or RGGI.”
Richardson notes that EWMA’s real estate developer and commercial/industrial property owner clients “continue to face the challenge of project time and budget certainty to achieve final cleanup and redevelopment goals. EWMA’s SECUR-IT® Guaranteed Fixed-Price Remediation Program is unique in the marketplace and has filled this need for more than 20 years.”
EWMA is currently assisting a private water company with pre-acquisition environmental due diligence on an older municipal water and waste water system. “Aging New Jersey municipally owned and operated systems are experiencing many fiscal and regulatory compliance challenges to meet requirements in the state’s recent Water Quality Accountability Act,” he adds.
Steve Finn, Principal
“Under the new administration in New Jersey, we’re expecting to see more enforcement when it comes to cleaning up contaminated sites, as well as rivers and streams,” says Finn. “We also anticipate a step up in Natural Resource Damages claims arising from contaminated sites.”
Finn reports he’s already seeing some other trends, including increased attention to perfluorinated compounds and other emerging contaminants that are becoming a concern in ground water.
“Reliable, inexpensive energy sources continue to be crucial for business,” he adds. “We expect to see increased emphasis on renewable energy, such as solar, including solar farms on remediated sites; and possibly offshore wind farms.”
One of the significant projects Golder is working on is Berry’s Creek, a tributary of the Hackensack River in the Meadowlands. “During a century-long period of industrial use, the creek became contaminated. We’re currently assisting with a major investigation of sediments, and resulting risks, and it will probably lead to dredging and other remediation. The USEPA should arrive at a cleanup decision in a few months.”
Riker Danzig Scherer Hyland & Perretti LLP
Steve Senior, Esq., Partner, Environmental Group
Gov. Murphy has emphasized renewable energy and offshore wind facilities; responding to climate change; and natural resource damages, water infrastructure and environmental justice concerns, notes Senior. “Increased NJDEP activity could mean more work for professional services firms.”
Trenton observers have whispered that Murphy may review the LSRP program, possibly tightening the reins and giving more power to the NJDEP, but “the LSRP initiative currently rests on three well-designed legs,” he says. “The first is the Licensed Site Remediation Professional, the second is the affirmative duty to remediate a contaminated site, and the third is the timeframes for remediation. The NJDEP and licensing board have a strong oversight role. This framework has worked very well to promote cleanups. I hope that the balance will not be disturbed.”
Remediation activity will accelerate as more people live and work in urban areas, observes Senior. “Brownfields are often the only undeveloped sites in urban locations,” he adds. “We’re currently representing a client that is developing mixed-use projects along the Hudson River on land that involves remediation.”
GZA GeoEnvironmental, Inc.
William E. Hadge, P.E., CEO
“Business leaders and developers are seeing already that we can expect a more aggressive approach to environmental enforcement from the Murphy Administration, with a renewed emphasis on seeking fines for violators of natural resources protection laws and tougher scrutiny of environmental permit applications,” says Hadge. “The administration has sent strong signals by having New Jersey rejoin the Regional Greenhouse Gas Initiative (RGGI) and embrace offshore wind power. So, we expect, as we have seen across decades practicing in New Jersey, that elections and changes in leadership in Trenton will lead to changes in how project proponents throughout New Jersey must navigate environmental compliance and enforcement.”
Ileana S. Ivanciu, Senior Vice President for Environmental Services
“We’ll be looking for more win-win solutions that address a combination of the governor’s priorities,” says Ivanciu. “For example, when we take steps to restore and protect the Barnegat Bay watershed, we’ll do so mindful of long-range changes in climate and sea level rise, and we’ll avoid disproportionate impact on vulnerable communities.”
Ivanciu also sees climate resilience “being incorporated into nearly everything we do. Specifically, we expect to see more of things like simple green storm water infrastructure built into transit-oriented developments; consideration of changing floodplains being designed into roads, bridges, and rail projects; and programs such as PSE&G’s Energy Strong Program that protect and strengthen utility systems.”
Right now, Dewberry is part of a team preparing the Environmental Impact Statement for the Hudson Tunnel Project. “The project involves constructing a new rail tunnel under the Hudson River; and after the new tunnel is in service, rehabilitating the existing tunnel, which opened in 1908 and was damaged by Superstorm Sandy. The new tunnel is critical to preserving the rail link between New Jersey and New York, and intercity rail service on the Northeast Corridor.”
Greenbaum, Rowe, Smith & Davis LLP
David B. Farer, Esq., Chair, Environmental Department
“It’s expected that Gov. Murphy will be focusing on clean energy and climate change as top environmental priorities, with a renewed emphasis on enforcement and further development of clean air, clean water and site remediation regulations as key agenda items,” says Farer. “The governor has made a very strong choice in nominating Catherine McCabe as the NJDEP Commissioner. Ms. McCabe brings deep experience to the NJDEP from her impressive career at the USEPA, and I believe that she will be an effective steward of the governor’s environmental agenda.”
He adds that the “single most critical environmental threat to our state—to our public health and safety, our infrastructure, our business—is climate change.” But Gov. Murphy quickly took the important step of having New Jersey retake its seat in the Regional Greenhouse Gas Initiative and recommit to reduction in carbon dioxide emissions pursuant to the RGGI’s cap and trade program. “The coasts must be protected and fortified. Clean energy and resiliency must be center stage.”
Norris McLaughlin & Marcus, P.A.
Jeff Casaletto, Esq., Member, Environmental Law Group
“The new administration is already putting into motion its energy and climate change agenda with executive orders pertaining to clean energy and getting New Jersey back into RGGI,” says Casaletto. “The previous administration criticized RGGI and clean energy as an economic burden on utilities and consumers. The upside could be a resurgence in clean energy projects as the new administration moves toward relying on clean energy sources such as solar and wind.”
Casaletto says that key environmental issues and trends include the fact that the LSRP program is nearing the end of its breaking-in period. “Many complex site remediation projects in progress at the time the LSRP program went into effect are coming up on their cleanup deadlines over the next few years. These sites tend to rely on the use of engineering controls (a cap) and institutional controls (a deed notice) requiring a remedial action permit from the NJDEP. At the same time, we are seeing unprecedented turnover at the NJDEP that results in the loss of much-needed institutional knowledge.”
He is concerned that this could result in a backlog of cases, “depending on how much and to what degree the NJDEP continues to involve itself in the remedial action permitting process—a process that is getting longer, not shorter, to get through despite the LSRP program.”
Casaletto is currently involved in the Lower Passaic River Superfund Site. “Besides being one of the, if not the, largest Superfund Site in the country, it is a good example of how complex a cleanup site can be from any perspective—legal, technical or political.”
Panther Technologies, Inc.
Peter J. Palko, P.E., CHMM, LSRP, Executive VP, Principal Engineer in Charge
“The new administration appears to be interested in continuing the NJDEP’s previous focus on renewable energy, urban toxics emissions reduction, enhancement and further refinement of the Site Remediation Reform Act, as well as continuing to look at emerging contaminants and their regulation,” according to Palko. “But it remains too early to tell which priorities will be tackled first.”
As an environmental construction group, Panther Technologies primarily focuses on clients’ environmentally contaminated sites, but “we also perform clean construction, including the creation of new wetlands that can serve as new estuaries for wildlife and new plant species in areas that are largely dominated by uncontrolled, invasive lower quality species of plants.”
So far, he warns, permits to obtain approvals to move forward with many of these projects “appear to have slowed since the change in administration, which is, again, an example of state agencies likely determining what the new normal will be legislatively going forward before granting such permits to proceed.”
TTI Environmental, Inc.
Craig Durand, CHMM, LSRP, President
“I think Gov. Murphy will work to strengthen the NJDEP by adding or appointing experienced environmental regulators,” says Durand. “We will most likely see a tighter watch on timeframes and heightened enforcement.”
He points out that in New Jersey’s site remediation segment, “there is a growing trend toward creative solutions using engineering controls as means to solve site conditions and, at the same time, provide functionality to site improvements. Another trend we are seeing is the design and build of alternative fuel systems. Our construction division is experiencing an increase in projects involving installation of alternative fuels systems with traditional fuel stations at private and public locations.”
Last year, TTI was involved with “dozens of lead-in-water testing programs for K-12 schools throughout New Jersey,” adds Durand. “It was challenging to organize and communicate the program with all the stakeholders, including business administrators, teachers and parents, but it was rewarding to work for the benefit of safeguarding the children.”
The ELM Group Inc.
Mark D. Fisher, LSRP, Managing Partner
It may be too early to accurately say just how the Murphy administration will impact environmental businesses, according to Fisher. “However, with the overwhelming success of the LSRP program in cleaning up contaminated sites in New Jersey over the past eight years, it is unlikely that too much will change in that area.”
Meanwhile, though, he sees an increase in commercial/industrial real estate transactions, “which often involve addressing environmental issues and risks. A similar increase in transactions, like sales and divestitures, involving industrial/manufacturing companies has also been driving business to our sector.”
The ELM Group is currently involved with several large redevelopment projects “that involve the integration of remediation and new development—mixed/multi-purpose, commercial and new industrial uses—so the ability to quickly complete cleanups under the LSRP program is crucial to the success of these projects.”
Steven J. Ramiza, Vice President
“Gov. Murphy’s commitment to climate change and clean energy (solar and wind) is likely to mean opportunities for businesses,” says Ramiza, who oversees the company’s Environmental Services and Regulatory Compliance Departments. “His focus on the LSRP program could end up streamlining the relationship between the NJDEP and LSRPs, as well as increasing the focus on compliance and enforcement.
“Other key issues will include flood resiliency,” he adds. “The state clearly wants to limit or prevent development in flood-prone areas, which is understandable, but we also need to build, so a balance of smart planning and risk reduction methods must be established.”
Educational facilities are one of LAN’s leading market segments, and Ramiza notes that several large projects underway include K-12 school construction in a half-dozen municipalities in Northern and Central Jersey.
“All of the projects have some level of environmental challenge, whether land use and/or contamination and remediation,” Ramiza adds. “Ultimately, this means a strong understanding of the NJDEP regulations, along with a solid working relationship with NJDEP staff, will be needed to keep these projects moving forward.”
Coughlin Duffy LLP
Heidi Minuskin, Esq., Partner
Gov. Murphy has made it clear he embraces renewable energy concepts such as solar and wind, “but we haven’t received as many signals about his approach to brownfield redevelopment,” notes Minuskin. “There’s always some push-pull issues in redeveloping urban areas, with a need to balance the costs of remediation and traditional building and construction expenses with the level of cleanup needed to be protective. The challenge is for the state to promote policies that are affordable while offering reasonable protections.”
That’s a big issue in New Jersey, which has a shortage of developable space, “And we’re seeing a lot of redevelopment of former manufacturing and industrial sites that are being cleaned up and put back into good use, like housing and retail,” adds Minuskin.
Coughlin Duffy is currently representing some parties that have been identified as having some potential connection to the Lower Passaic River Study Area, a 17-mile tidal stretch—with a long history of industrialization—from Dundee Dam to the river mouth at Newark Bay. She calls it “a long-running case with a number of potential liabilities and remedial alternatives that are under consideration.”
Tectonic Engineering & Surveying Consultants P.C.
David Morris, LSRP, Vice President of Environmental Services, N.J.
“I think the changes will be outside the site remediation and waste management program, not in the technical or science arenas,” says Morris. “I perceive more enforcement could be requested from the NJDEP, but the licensed site remediation system is established and has matured; I do not think the governor will attempt to roll it back.”
But one key issue is the reuse of marginal materials, and the economic impacts and aspects of fill flow around and out of the state, he adds. “Alternate fill and processed dredge and historic fill materials are representative of expansive anthropogenic degradation that must be addressed appropriately and safely.”
The company is currently resolving a contaminated site for a not-for-profit client. “The proposed residential use increased NJDEP involvement for an alternate remedy,” explains Morris. “The initial response actions were not in the LSR arena and revealed a larger problem in the neighborhood. We were able to address the issues and changes seamlessly to bring the site into compliance and bundle the remedy using LSRP stewardship.”
Concrete Washout Systems
Bill McGuire, Managing Director, McGuire Marketing. Marketing Consultant to Concrete Washout Systems
Water conservation and sustainability are two key continuing environmental issues, says McGuire. “We continue to see new and established, grassroots and community organizations such as NJ Waterworks, Hackensack Riverkeeper and the Association of New Jersey Environmental Commissions taking a lead in this area.”
He notes that Concrete Washout Systems worked alongside a New Jersey construction firm on a Jersey City condominium project where 3,000 yards of concrete washout from 300 mixer trucks was pumped out and recycled.
“Concrete Washout Systems was able to help the contractor reduce operation costs by eliminating the waste water and washout material from the jobsite and reducing the contractor exposure to very costly USEPA penalties and associated civil fines,” he explains. “The bonus to New Jersey citizens is a significant reduction of urban runoff pollution, very common on construction sites, that would otherwise go directly into the storm drain and have a direct impact on local waterways and habitat living in that environment.”
Connell Foley LLP
Agnes Antonian, Esq., Chair, Environmental Law Practice Group
Gov. Murphy’s appointment of seasoned environmental officials such as Catherine McCabe and Debbie Mans to the state NJDEP demonstrates his commitment to—and tougher stance on—the environment, says Antonian.
“More state involvement in areas such as renewable energy, i.e. wind power, could be good for companies in the sustainability segment,” she explains. “Given some recent federal government actions that are detrimental to the renewable energy industry, it could become more difficult and more expensive for developers to take advantage of such sustainable measures.”
Connell Foley recently implemented a “novel approach to clean up an urban area with an extensive industrial history and low levels of contamination found beyond the property boundaries,” says Antonian. “Citing the ubiquitous and regional nature of the contamination, we implemented institutional controls to document the potential contamination in the public streets and rights of way. This approach could prove to be an efficient and effective way of dealing with ubiquitous low-level contamination where there is no present human health risk and it is unclear whether a clean edge could be found.”
Whitestone Associates, Inc.
Thomas K. Uzzo, LSRP, PEA, President
Gov. Murphy’s renewed focus on promoting offshore wind energy facilities should positively impact that industry, while his commitment to prohibiting offshore oil exploration should help alleviate the potential environmental risks associated with open water drilling, according to Uzzo.
As an LSRP, he’s focused on any potential changes to the LSRP program and any revisions to the Site Remediation Reform Act (SRRA) that could impact how contaminated sites are remediated, and ultimately redeveloped and repurposed in the state.
“As a business owner based in New Jersey, I’m concerned that companies continue to move out of the state due to the cost of doing business, and it’s important to recognize that the environmental industry is a major employer here,” he adds. “Any impact to the ability to address blighted, contaminated sites for redevelopment in a timely and thorough fashion will have ripple effects on the real estate, development, construction, retail, housing and so many other industries in New Jersey.”
An ongoing Whitestone project is a Union County site that was a heavy industrial equipment manufacturing and service center, and prior to that a foundry, that is under concurrent remediation and redevelopment by a supermarket chain.
Rose DiMeo, CEO
“Gov. Murphy’s extensive global business experience will positively impact New Jersey businesses,” explains DiMeo. “He will create better opportunities for businesses to remain in the state, while incorporating environmental policies which are agreeable to business growth via investing in abandoned manufacturing/warehouse properties and remediating, redeveloping and retrofitting these sites.”
A key environmental issue is clean water, so any plan for future development “needs to begin with improving water quality and managing the current volume, which is in excess of the water treatment plants’ capacity,” she adds.
Hampton-Clarke has been involved with the transportation industry for 25 years, servicing the environmental needs of airports, tunnels, bridges, and the New Jersey and New York ports by supporting the retrofitting and rebuilding of bridges “which enhances the shipping industry, increasing commerce and employment,” DiMeo says. “We worked with FEMA for the Sandy Cleanup by removing accumulated water from manholes and other flooded areas. HC provides environmental services to the transportation agencies, as well as engineering and construction companies.”
Sue Boyle, Senior Consultant
“Gov. Murphy has expressed his support for environmental activities,” notes Boyle. “His commitment to clean energy and infrastructure improvements could mean big opportunities for firms in the environmental services segment.”
Boyle works with several nonprofit associations that specialize in site remediation and brownfields redevelopment in New Jersey, New York City and the entire northeast region of the United States, and says she’s seen an increase in the volume and speed of cleanups. “In addition to being better for the environment, these cleanups create more developable property, which benefits job creation, and local communities, because it puts more properties back on the tax rolls.”
As its Executive Director, she’s currently assisting the Licensed Site Remediation Professionals Association (LSRPA) with a review of the 2009 Site Remediation Reform Act (SRRA), “and how to potentially make it even better. State Senator Bob Smith, one of the authors of the SRRA, asked us to develop recommendations. It’s a big, positive policy push.”
Brilliant Environmental Services, LLC
Philip I. Brilliant, CHMM, LSRP, Owner, Principal Environmental Scientist
“We’re still only a short time into the new administration so the jury is still out when it comes to Gov. Murphy,” according to Brilliant. “State Senator Bob Smith said he will revisit the 2009 Site Remediation Reform Act, which established the LSRP program, though it’s been working very well so far. I don’t anticipate any major changes.”
Brilliant’s company focuses on site remediation activity, and he says that under Murphy, the state could see “tighter enforcement on persons responsible for remediation and new restrictions on the use of professional judgement for cleanups. It could be a more prescriptive approach which could slow down remediation.”
One of the significant projects he’s working on involves a client that’s considering a purchase of a 25-plus acre site in Middletown. “The client wants to remediate it and develop it with retail. We’re heavily engaged in due diligence because the buyer will primarily be responsible for any cleanup, so we have to investigate and identify any areas of concern before a deal is finalized.”
Rutter & Roy, LLP
Christine A. Roy, Esq., Partner
There is some uncertainty about how the new administration will implement current regulations, and whether it will seek to amend them, according to Roy. “During the Christie administration, several of the permitting schemes were revamped to be consistent with one another, including the Coastal Zone Management Rules, Flood Hazard Area Control Act Rules, and, most recently, the Freshwater Wetlands Protection Act Rules.”
Roy represents several interstate natural gas pipeline companies in New Jersey, so she’s watching how the NJDEP will deal with the PennEast Project, given the recent denial of that company’s application for permits. “Increasing public participation in the permitting process results in delays in the processing of applications for such projects,” she says.
She’s also working on Transco’s Northeast Supply Enhancement Project, which includes components in Pennsylvania, New Jersey and New York. “The project matters because, among other things, it will provide additional natural gas supplies during periods of increased peak demand from increased residential and commercial usage and the phase-out of fuel oil in New York City. Our office is assisting with the environmental permitting and easement acquisition for the New Jersey components of the project.”
Sadat Associates, Inc. (SAI)
Lahbib Chibani, Ph.D., P.E., President
Gov. Murphy’s advocacy of clean energy should result in an increase in the number of wind and solar projects throughout the state, creating more business for environmental companies, according to Chibani. “SAI has been involved with a number of solar array projects at former landfills. These projects serve a twofold purpose: they not only make viable use of brownfields, but they also generate a much-needed resource.”
Like every state, New Jersey is facing critical infrastructure problems, he adds. “Aging wastewater treatment plants are a threat to our safe drinking water and natural resources, constituting a significant environmental issue that has to be addressed.”
SAI designed and/or oversaw the construction of the engineering controls for the proper closure of seven landfills in the 750-acre Meadowlands area, notes Chibani. “This is a huge project,and given not only the vast acreage involved but also because each landfill had its own set of unique environmental issues that had to be resolved. The measures taken to properly close these landfills are enormously protective of public health and the environment, and they have been designed such that various uses of what was once basically discarded and unusable land are now possible.”
Bayshore Family of Companies
Valerie Montecalvo, CEO
Montecalvo “firmly believes” Gov. Murphy’s administration will strongly support sustainable food management.
“The United Nations estimates that one-third of all food produced for consumption is wasted each year,” she says. “Closer to home, about 40 percent of food grown in the United States is not eaten, and in July 2017, the New Jersey Legislature passed S-3027, the Food Waste Reduction Act, which aims to reduce food waste 50 percent by 2030.”
Montecalvo says the NJDEP is in the process of launching a stakeholder process to develop a plan by this summer to achieve this goal. “Bayshore Recycling was invited to participate in this important work. A companion bill, S-771 is also moving in our legislature to ban the disposal of food from large generators where composting facilities are available.”
Matrix New World Engineering
Jayne Warne, P.E., President
“We anticipate an increased focus on environmental compliance and enforcement, as well as a return to policies supportive of renewable energy,” reports Warne. “These policies, combined with the governor’s focus on economic development, will put environmental and engineering consultants in a position to serve key roles in the state’s environmentally sustainable economic revitalization. Ultimately, these are quality-of-life issues that are critical to New Jersey’s future.”
Matrix Engineering is performing design, build and regulatory services for a property owner in northern New Jersey that involves site remediation and preparation for redevelopment. “Prior to our involvement, the property had been mired in years of regulatory uncertainty and was a financial liability for the owner and an unproductive tax asset for the municipality,” explains Warne. “Matrix quickly secured complex regulatory approvals and embarked on a remediation program that prepared the site for redevelopment.”
The design-build helped lead to a successful auction of the property, which will be developed with “a new and productive use over the next two years and will return the decaying industrial property to a modern and tax-ratable use.”
Dan Borgna, Vice President, Environmental Division
“You have heard the phrase ‘limitation of liability’ in the past but may not be familiar with how it fits into contracts with your customers,” notes Borgna. “As an insurance broker, we work with our insureds in fine-tuning the standard contract used with their customers. Almost always, we suggest using a limitation of liability clause whenever possible because it sets a specific dollar amount your firm can be held liable for in the event of a loss or claim. This is particularly important for small jobs such as Phase I’s or Property Condition Assessments. These are minimal profit work orders, so you shouldn’t expose your firm’s total professional liability insurance limits to qualify. With a limitation of liability clause, the most you can be held liable for is the cost of the work or some smaller amount. Do not ignore this as I have seen small jobs turn into big defense and indemnity claims.”