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E-edition: February 2010

Review >NJ REGULATORY UPDATES

 

THE NEW JERSEY LSRP PROGRAM AND DUE DILIGENCE

BY GLENNON C. GRAHAM, JR., P.G.

On May 7, 2009, Governor Corzine signed into Law the Site Remediation Reform Act which established a Licensing Program for site remediation professionals. The Licensed Site Remediation Professional (LSRP) program established under the Site Remediation Reform Act (SRRA) went into effect on November 4, 2009. The Act fundamentally changes the way contaminated site in New Jersey will be cleaned up. Under the Act the NJDEP will no longer be issuing a "No Further Action Letter" (NFA) and will reduce the DEP oversight on the cleanups of contaminated sites. The DEP will accept LSRP certifications that contaminated sites have been fully investigated and remediated. Once the LSRP has certified that sites have been fully investigated and remediated, the LSRP will issue a Response Action Outcome (RAO), this replaces the DEP NFA letters. The NJDEP has three years to conduct an Audit once the RAO is submitted. The DEP is required to conduct at least one review of documents submitted by each LSRP within the next two years.

Generally, responsible parties will have two options: the first is to stay under the existing oversite program, which will have an indefinite time frame for completion, but will not be subject to DEP Audit since the DEP will be involved with the remediation. The second option is to switch to the LSRP program, which will have a much quicker time frame, since the LSRP is directing the remediation. However, once the RAO is issued the DEP have three years to Audit the site.

Prior to performing Due Diligence work on behalf of one's clients, the first question to ask the client is if they want an LSRP performing the Due Diligence or a Non-LSRP performing the Due Diligence. If an LSRP is performing the Due Diligence and identifies any discharge on the site, the LSRP must notify both the party responsible for the remediation as well as the NJDEP, except for discharges resulting from historic fill. If an "immediate environmental concern" (IEC) is identified during the Due Diligence the LSRP must notify the party responsible for the remediation as well as the NJDEP immediately.

For more information on the LSRP program please contact Gary R. Brown, P.E., L.S.R.P. at 610-265-1510 ext.234 or Glennon C. Graham, Jr., P.G. at 856-467-2276 ext.122 or visit the following website: www.state.nj.us/dep/srp/srra.

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RT ESTABLISHES NON-LSRP DUE DILIGENCE GROUP

Due to client concerns that using an LSRP on a site where certain environmental conditions may be found, RT has established a non-LSRP Due Diligence Group, headed up by Justin Lauterbach. Several environmental professionals in RT's New Jersey office report to Justin, who have in-depth experience in completing Phase I and Phase II Environmental Site Assessments, and Preliminary Assessments and Site Investigations under NJAC 7:26E.

NJDEP’s unusual added provision to the Site Remediation Reform Act and LSRP program, requires certain Immediate Environmental Conditions (IEC) to be immediately reported, by the professional, which blurs the distinction between the professional and his or her clients. Requirements for immediately released reporting are not new, but it has become clear that NJDEP has not provided enough of an objective guidance of what constitutes an IEC condition, and problems with reporting apparently will only be reported to a Licensed Site Remediation Professional Board, which is not really set up yet.

We at RT believe that these situations can be handled professionally, and, when there are planned property transactions, there is almost always a way to deal with environmental conditions and address concerns. In our New Jersey Due Diligence Group headed by Justin, we offer more than seven years of in-depth experience throughout the state, and we recently completed non-LSRP work at more than a dozen sites, in Central New Jersey, for a utility. This work was completed in a relatively short timeframe, to meet all environmental, regulatory and business transaction objectives.

For more information on this group, you can reach Justin at 215-370-6554.

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