On October 1, 2020, & October 19, 2020, the NJDEP identified that Surety Bonds are acceptable forms of a Remedial Funding Source (RFS) and Financial Assurance (FA), respectively. Both were posted in accordance N.J.S.A. 58:10C-19 & 58:10B-3i, with model documents available on the NJDEP’s RFS Guide Web Page:

https://www.nj.gov/dep/srp/guidance/rfsguide/#fa_mechanisms.

https://www.nj.gov/dep/srp/guidance/rfsguide/#rfs_mechanisms

For parties choosing to use a Surety Bond, use of the model document is required and the language, as published, cannot be modified. It should be noted that use of the model documents are currently allowed; however, future changes to the model may be required an amendment or replacement (pursuant to the Administrative Requirements for the Remediation of Contaminated Sites (ARRCS) at N.J.A.C. 7:26C-5.

If a party required to establish a Remediation Funding Source chooses to use a Surety Bond:

The original Surety Bond must be provided to the Department with a Remediation Cost Review and RFS/FA Form and, as applicable, 1% surcharge check for an initial RFS submittal or if switching from a Self-Guarantee.
The entity issuing the bond must be listed on the U.S. Department of Treasury Circular 570 as an acceptable surety and must have a surety license for the state of New Jersey.
The bond cannot be cancelled by the Principal (i.e., the person responsible for conducting the remediation) without written authorization from the Department. Cancellation by the entity issuing the bond requires a 120-day advance Notice of Cancellation sent to the Department and the Principal by certified mail or overnight courier. The cancellation cannot occur during the 120 days beginning on the date of receipt by both the Department and the Principal as evidenced by the Return receipts.

If a party required to establish Financial Assurance chooses to use a Surety Bond:

The original Surety Bond must be provided to the Department with a Remediation Cost Review and RFS/FA Form.
The entity issuing the bond must be listed on the U.S. Department of Treasury Circular 570 as an acceptable surety and must have a surety license for the state of New Jersey.
The bond cannot be cancelled by the Principal without written authorization from the Department. Cancellation by the entity issuing the bond requires a 120-day advance Notice of Cancellation sent to the Department and the Principal by certified mail or overnight courier. The cancellation cannot occur during the 120 days beginning on the date of receipt by both the Department and the Principal as evidenced by the Return receipts.

For additional information on Surety Bonds as NJDEP-approved RFS/FA mechanisms, please contact tfrancis@cardinalLSRP.com or www.cardinalLSRP.com.

At Cardinal Environmental, we have the experience to get you through your remedial situation and provide realistic costs up-front, regardless of the size, or scope. Additionally, with over two decades in the industry, we have established relationships in the environmental community to get your project on a cost-effective remedial course that meets your long-term goals.