NJDEP Financial Assurance and Remedial Funding Source: Surety Bond-Model Documents

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:

1. 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.

2. 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.

3. 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:

1. The original Surety Bond must be provided to the Department with a Remediation Cost Review and RFS/FA Form.

2. 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.

3. 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.

New Jersey-Hazardous Discharge Site Remediation Fund (HDSRF) Update-July 2016

Remedial cases in New Jersey in New Jersey often stall out due to the lack of available funds.  This is no secret, as the costs to investigate and/or remediate cases thought to be relatively benign can sometimes sky-rocket 10x, and no responsible party (or homeowner) wants to get that news.  In similar fashion, when looking for some form of assistance or relief from the state, there was the similar doom & gloom scenario where no money was available, or the funds were all dried up.  However, recent inquiries by Cardinal Environmental Consulting to the NJDEP have produced a shimmer of hope with the Hazardous Discharge Site Remediation Fund (HDSRF)…and ultimately a few of our clients.

The HDSRF fund is doing quite well with about $12 million remaining through June 2016, with another $11 million coming in July.  Review times are averaging about 30 days; however, there is still a lengthy backlog so the number one tip that we give all our clients is:

 1.      Assess whether they qualify and if so, get an application in as quickly as possible. 

Applications may take some time to complete, as a number of things are required (e.g. remedial cost estimates, funding type, demonstrated need, etc.) but be sure to take full advantage of the HDSRF County Coordinators.  They are always available to assist with the applications, and are excellent resources.  Allocating valuable time and a relatively small monetary investment to get through the process could save you thousands of dollars later on, so don’t delay!

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. For further information on how we can assist you with remedial funding solutions and/or LSRP services, please don’t hesitate to contact us at tfrancis@cardinalLSRP.com or www.cardinalLSRP.com. 

Photo of Lake Pemberton, NJ /  Courtesy of Kimberly Green Kaeser