News

Lawyers and Engineers Led a Panel Discussion on the NJDEP’s New LSRP Program

August 06, 2009


FOR IMMEDIATE RELEASE

The existing backlog of contaminated properties in New Jersey requiring investigation and remediation may soon be history with the enactment of the Site Remediation Reform Act (SRRA), signed into law by Governor Corzine in May. 

According to panelists at a program held at the law offices of Porzio, Bromberg & Newman recently, the SRRA creates the framework for a Licensed Site Remediation Professional  (LSRP) program to resolve the often 10-plus years it takes to get clearance to build on a contaminated site.  According to the New Jersey Department of Environmental Protection (NJDEP), the intent of the SRRA is “to place more responsibility for remediation decision-making in the hands of highly-qualified environmental professionals.”

The seminar was co-sponsored by Porzio and the consulting firm of Haley & Aldrich.  The panelists discussed how much of the implementation is still unchartered territory and that the next 90 days, before the full implementation, are critical to understanding the full implications of the program.

Lisa M. Bromberg, one of the Porzio panelists, praised the overall goal of the SRRA to “accelerate the investigation and remediation of contaminated sites,” adding, “the devil lurking in the details, however, will, in the short term, confuse and complicate pending matters.” Nonetheless, she is pleased that the NJDEP is “actively encouraging both existing and new parties to opt into the LSRP program.”  Other critical issues Ms. Bromberg cited
involve the potential for the invalidation of Response Action Outcomes (RAOs) and the cost and responsibilities associated with permitting engineering controls and the conduct of due diligence.”  She also expressed some concerns about the extent to which the new obligations imposed on LSRPs will affect the availability, terms and costs of professional liability insurance coverage.

Thomas Spiesman, another Porzio attorney and panelist, advised the audience that “guidances are being posted on the NJDEP website regarding the number of new issues, including direct oversight, mandatory timeframes and presumptive remedies.”  It is expected, Mr. Spiesman adds, that the “efforts of many stakeholders, working with the NJDEP, will result in guidances and regulations that will, hopefully, result in greater clarity as the program matures over the estimated three years it is expected to take to bring it to full-strength.” As drafted, he pointed out, the SRRA is complex with many significant and far-reaching implications.  As such, the regulated community will have a great deal to learn and look forward to as the LSRP program gears up.

The audience of engineers, architects and insurance professionals was keenly interested in the insights of Richard Standish of Haley & Aldrich’s Hartford office who is an LEP in Connecticut and an LSP in Massachusetts.  New Jersey’s LSRP program is closely modeled after the Massachusetts program.  Both states have had programs similar to New Jersey’s new LSRP for several years.  Mr. Standish reported that “sites are moving through the system and there is no waiting on regulations review.”  He pointed out that there can be inconsistencies between regions and between the way case managers interpret their responsibilities. Unlike Massachusetts, which audits 20 percent of all sites and Connecticut, 35 percent, New Jersey’s program calls for auditing 10 percent of sites.

Sunila Gupta, a Haley & Aldrich Project Manager, is an active member of the newly-formed LSRP Association, and is chairing a committee to work with NJDEP on Permitting/Permit-By-Rule as they develop guidance/regulations for the LSRP program.  She explained that this initiative “creates a whole new world order for everyone, including consultants, RPs, developers, insurers and lenders.”   She provided a brief background of SRRA, how the schedule will affect sites and projects and the timeline for implementation of the program that is still in its first 90-day period. 

The August 6, 2009 seminar was the first of a two-part series on the LSRP program.  The second segment, on Thursday, November 19, will explore the new regulations implementing the LSRP program which are to be promulgated in early November.  For further information or to register
please click here.

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