Environmental Law 2025 Comparisons

New Jersey enforces a broad range of both federal and state-level environmental laws and policies, from hazardous waste regulations to coastal permitting. The United States Environmental Protection Agency (EPA) has delegated enforcement authority under a number of federal environmental programmes, such as the Clean Air Act (CAA) and the Clean Water Act (CWA), to the New Jersey Department of Environmental Protection (NJDEP). In addition, New Jersey’s environmental standards for environmental remediation and drinking water often surpass the applicable federal standards.

In addition to the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), New Jersey has adopted its own state-level law, known as the Spill Compensation and Control Act, which governs liability of parties in any way responsible for the discharge or release of hazardous substances. Industrial establishments are further required, pursuant to the state Industrial Site Recovery Act (ISRA), to conduct an investigation, and remediation as needed, to address environmental conditions on-site upon transfer of the subject property or the ceasing of site operations. Site investigations and remediation for all programmes are governed by the state Site Remediation and Reform Act (SRRA), which authorises Licensed Site Remediation Professionals (LSRPs) to step into the shoes of the NJDEP in order to oversee the remediation of contaminated properties.

Finally, New Jersey has a robust regulatory permitting scheme for land use, especially focusing on environmentally sensitive areas such as coastal, flood hazard, wetlands, and waterfront areas. The permitting process for development in these areas can be long and arduous, depending on the scope of the project and the number of sensitive areas on site.

Appeals of NJDEP decisions throughout the state, from penalty or violation determinations to permitting denials, must be first appealed to the Office of Administrative Law, through a request for adjudicatory hearing before an Administrative Law Judge. The judge’s initial decision is thereafter approved or rejected by the Commissioner of the NJDEP in the issuance of a final decision, which can thereafter be appealed to the New Jersey Superior Court, Appellate Division.

At the state level, the key regulatory authority for environmental policy and enforcement is the NJDEP. NJDEP administers state environmental statutes and regulations over air, water, land use, waste, contaminated sites and other related areas. The New Jersey Office of the Attorney General (OAG) plays a significant role and co-ordinates with NJDEP to prosecute civil and criminal enforcement actions, including environmental crimes and environmental justice matters. At the federal level, the United States EPA maintains oversight over Region 2, which includes New Jersey, and ensures implementation of the CWA, the CAA, and other federal environmental statutes. NJDEP retains delegated authority for certain federal permits, including wetlands, National Pollutant Discharge Elimination System, CAA, the Resource Conservation and Recovery Act (RCRA) permitting programmes. Other regulatory bodies responsible for environmental policy and enforcement include county and municipal environmental and health agencies, as well as specialised boards like the New Jersey Sports and Exposition Authority (NJSEA), the Pinelands Council, and the Tidelands Resource Council, which have limited jurisdiction.

Mechanisms for co-operation between the regulated entities and environmental regulatory authorities in New Jersey are extensive. With regard to environmental permitting, NJDEP encourages early and consistent communication during the permitting process, as well as during compliance and remediation processes. Applicants and permittees communicate with NJDEP’s staff directly during pre-application and technical meetings, as well as through reporting systems that monitor permit compliance. Other formal mechanisms for co-operation with NJDEP include administrative consent orders and voluntary disclosure programmes. In the case of environmental remediation, NJDEP has also established the LSRP programme under the SRRA, which allows parties responsible for remediation of contamination to hire an LSRP to oversee remediation of a property and self-report compliance and non-compliance to NJDEP.

New Jersey’s significant environmental protection statutes include the Air Pollution Control Act, Clean Water Enforcement Act, the Soil Erosion and Sediment Control Act, and the Endangered and Nongame Species Conservation Act. The NJDEP Fish and Wildlife’s Endangered and Nongame Species Program creates lists to monitor the status of wildlife.

Additionally, the Pinelands Protection Act, Freshwater Wetlands Protection Act, Coastal Area Facility Review Act (CAFRA), and Highlands Water Protection and Planning Act regulate development in their respective regions. New Jersey also has comprehensive air permitting and water permitting programmes regulated by NJDEP. NJDEP conducts ambient air quality monitoring to assess compliance with air quality standards and monitors water standard compliance through the New Jersey Pollutant Discharge Elimination System (NJPDES).

Given New Jersey’s significant coastline, under CAFRA and the Coastal Zone Management Rules, NJDEP protects coastal ecosystems such as wetlands, dunes, and beaches through sustainable land use practices.

With respect to regulating agricultural activities, NJDEP sets forth water usage regulations for such activities but also protects such activities by reducing regulatory burdens under the Highlands Water Protection and Planning Act.

NJDEP also reviews environmental impact assessments for developments to assess interference with natural habitats and the environment.

The Spill Compensation and Control Act (Spill Act) also allows the state to recover damages to natural resources from polluters who have created such damages.

In New Jersey, strict liability typically applies in civil enforcement of breaches of environmental law. Enforcement mechanisms range from administrative settlements to civil penalties to criminal prosecution. The federal EPA Region 2 also enforces federal laws and regulations governing air, water and waste. NJDEP may revoke, modify or suspend permits and issue summons for violations that may be enforced in municipal court.

New Jersey’s Environmental Rights Act (ERA) also provides a private right of action to citizens to file actions against those who commit violations of environmental laws in the event a private party believes the government’s oversight of an environmental issue is insufficient.

The NJDEP has broad authority to investigate environmental incidents and enforce compliance with state and federally delegated programmes. Under New Jersey’s Spill Compensation and Control Act (Spill Act), Water Pollution Control Act, and Air Pollution Control Act, during both scheduled inspections and incident-specific investigations involving discharges, emissions, or other suspected violations, NJDEP inspectors may access facilities, examine records, collect samples, and interview personnel. NJDEP may issue Notices of Violation, Administrative Orders, or Directives in response to suspected violations, which require the alleged violator to respond and report or take corrective action. NJDEP often co-ordinates with the OAG and, where applicable, the EPA. Regulated entities should fully co-operate, provide access, and respond with requested information. Otherwise, violators may be charged with obstructing investigations, and/or may be subject to penalties or enforcement actions.

Environmental permits and approvals are generally required for an activity that may discharge or emit pollutants, or disturb regulated areas or waters. NJDEP administers almost all environmental permitting programmes in the state, including those that are federally delegated. The environmental permitting programmes include the NJPDES under the CWA for surface water, stormwater, and groundwater discharges; air-quality permitting for emission sources regulated by the CAA; and hazardous waste-management permits under the RCRA. NJDEP also oversees wetlands and flood hazard approvals, as well as site-remediation permits and approvals under the SRRA.

Environmental permits are obtained after the submission of applications that comply with requirements in the governing regulations, which typically include detailed technical and environmental analyses. Applicants are also encouraged to engage NJDEP early, prior to application submission, to clarify requirements. Permits issued by NJDEP impose enforceable conditions, including recordkeeping and reporting obligations.

Adverse permitting decisions or challenges to permit conditions may be challenged through an adjudicative hearing before the Office of Administrative Law, to the NJDEP Commissioner and the Appellate Division of the Superior Court.

NJDEP’s environmental policy prioritises protection of public health, natural resources and historically overburdened communities. NJDEP increasingly addresses environmental justice considerations in its permit and enforcement decisions.

Its enforcement philosophy emphasises compliance and encourages co-operation, transparency, and prompt corrective action if there is a violation. NJDEP encourages self-reporting of violations and has procedures in place that allow responsible parties to voluntarily remediate contaminated property.

Enforcement actions are typically proportionate to the type and severity of the violation, which can range from warnings and consent agreements to administrative penalties and/or civil or criminal litigation. Prompt disclosure, corrective action and engagement with NJDEP may mitigate potential penalties and facilitate resolution and compliance.

While the OAG prosecutes more significant environmental enforcement cases for the NJDEP, the NJDEP also co-ordinates with the EPA to align states’ enforcement actions with federal enforcement requirements and policies.

In New Jersey, environmental permits and approvals are generally assignable and transferable. Most permits require the incoming owner or operator to notify NJDEP and accept all permit obligations and conditions. Some permits, such as NJPDES wastewater discharge, air-emission and hazardous waste/RCRA permits, require NJDEP’s prior written approval before transfer, while others allow automatic transfer upon notice if no material changes occur. Where NJDEP approval is required, the failure to obtain such approval can void a permit and expose the parties to enforcement action.

The violation of permit terms or conditions can result in significant administrative, civil and, in certain cases, criminal liability. NJDEP may issue Administrative Orders and Notices of Civil Administrative Penalty Assessment, suspend or revoke permits or approvals, or refer matters for prosecution. Civil penalties vary by programme and can reach tens of thousands of dollars per day of violation. In addition to penalties, NJDEP can also require parties in violation of permits to make operational changes, conduct remediation, and restore affected environmental resources. In addition to regulatory enforcement actions, permit violations can expose violators to claims by private parties, including claims for nuisance, negligence, and trespass, as well as business risks. New Jersey’s ERA also allows a citizen to file a lawsuit against those who commit violations of environmental laws, including violations of permits and approvals, if those violations are not prosecuted by the governmental authorities.

In New Jersey, several forms of liability may be imposed for environmental contamination or violations of environmental law, affecting operators, property owners and other responsible parties. At the regulatory level, liability is primarily governed by statutes such as the Spill Compensation and Control Act (the “Spill Act”), the Water Pollution Control Act, and the Air Pollution Control Act, which authorise the NJDEP to pursue enforcement actions, assess penalties, and require investigation and remediation of discharges of hazardous substances or permit violations. This liability is typically strict, applying regardless of intent or negligence. While NJDEP has established and employs grace periods for certain minor regulatory violations, the failure to comply with NJDEP’s approvals or regulations may result in NJDEP’s revocation or suspension of permits or approvals. The NJDEP may also issue compliance orders, assess administrative civil penalties, file civil actions, or impose criminal penalties.

In addition to regulatory liability, parties may face civil liability from neighbouring owners, affected third parties, or the public, who assert common law claims for harm to land, water, or natural resources, such as negligence, trespass, and private or public nuisance claims, which may seek damages, resource restoration, and/or injunctive relief to stop violations.

There is also the potential for criminal liability, which generally arises where violations are knowing, wilful, or result from reckless disregard of environmental obligations. Criminal enforcement is pursued by the OAG or federal authorities, depending on the nature of the statute and the conduct involved.

Finally, liability may extend contractually through indemnities, access agreements, or transactional representations and warranties.

Environmental liability in New Jersey extends to historical incidents, including past discharges or contamination, and does not limit liabilities for same to the original polluter. Under the Spill Act, the release of hazardous substances at any time (including historical releases) may give rise to strict liability for cleanup and cost-recovery, even to property owners who acquired the site after the release occurred. New Jersey’s ISRA is a successor liability statute that ensures the remediation of property upon sale or transfer or ownership interest by requiring the purchaser or current operator of a regulated facility to investigate the need for remediation. If a prior owner or operator failed to comply with ISRA, the subsequent owner or operator of a regulated facility may become responsible for the remediation of contamination that predates current ownership. Thus, purchasers and operators in New Jersey must undertake due diligence, including historical site assessment, to ensure compliance with remedial obligations and state law, so that they do not unknowingly inherit liability for past contamination or ongoing remediation.

To defend claims of civil environmental liability in New Jersey, the key defences include the “innocent purchaser” defence, the absence of fault, intervening cause, statute of limitations, contributory or comparative negligence, or state-of-the-art or compliance with regulatory requirements at the time of release. The innocent purchaser defence provides a defence to liability for certain property owners who acquire contaminated property without knowing or having reason to know about contamination, provided they performed “all appropriate inquiries” before purchase, which includes conducting a ASTM Phase I Environmental Site Assessment before purchase and may also require the purchaser to perform a Preliminary Assessment (PA) and Site Investigation (SI) that meets the requirements of state law.

To defend claims of regulatory liability for the violations of permits or approvals, permit holders may demonstrate compliance with permit conditions, that they exercised reasonable care, or they fulfilled monitoring and reporting requirements. In New Jersey, regulatory liability and enforcement actions may also be mitigated by – eg, self-reporting and prompt action upon learning of a discharge, co-operating with the NJDEP, and demonstrating remedial progress in response to violations.

While these defences exist, they may be of limited value given New Jersey’s statutory scheme of strict liability for contamination, including for historical releases.

Under New Jersey law, corporate entities may be held liable for environmental damage or regulatory violations. Such liability can include strict liability for the release of hazardous substances, remediation obligations, permit violations and cost-recovery actions. The NJDEP and the OAG can seek civil penalties, injunctive relief and even criminal sanctions. Further, the “responsible corporate officer” (RCO) doctrine allows liability of corporate officers who had authority and responsibility to prevent violations, but failed to do so. The corporate entity itself, as operator or permit-holder, may also be subject to enforcement if it failed to comply with environmental laws or permit conditions, or caused contamination. Corporate liability for environmental violations is enforced in New Jersey, particularly in actions involving the remediation of contaminated sites and enforcement actions in overburdened communities. New Jersey’s ERA also allows private citizens to sue entities that violate environmental laws if such violations are not being addressed by the government.

New Jersey imposes several environmental taxes under various statutes, targeting specific activities and substances to address environmental concerns. 

The Spill Act levies an excise tax, known as the Spill Tax, on petroleum products and designated hazardous substances at the point of first transfer and that are located at “major facilities,” which are facilities that store, process, handle, produce, refine, transfer or transport hazardous substances and have a total storage capacity of 20,000 gallons or more of hazardous substances, excluding petroleum products, or 200,000 gallons or more of all hazardous substances, including petroleum products. The funds collected are allocated to the Spill Compensation Fund to provide funding for the remediation of hazardous substances.

The Solid Waste Management Act imposes taxes on owners or operators of sanitary landfill facilities that include a solid waste services tax, a resource recovery investment tax, and a solid waste importation tax. There is also a recycling tax on solid waste collected for transfer out-of-state.

Under New Jersey’s tax law, excise taxes are imposed on sewerage and water corporations operating in the state.

New Jersey does not have an “environmental tax” scheme like some other jurisdictions, but it dedicates a portion of corporate business tax revenues to environmental programmes. The state also has implemented mechanisms to address greenhouse gas emissions, such as emissions trading programmes and incentives for reducing carbon emissions.

Incentives for good environmental citizenship in New Jersey include those available through NJDEP’s programmes and the Environmental Stewardship Initiative that promote voluntary or “beyond compliance” environmental stewardship. Under certain programmes, operators who proactively implement best practices may benefit from recognition or reduced enforcement risk. 

While NJDEP’s Environmental Stewardship Initiative does not provide exemptions from regulation, general permits are available under certain regulations, which streamline compliance for regulated activities by providing pre-approved permits that cover a specific class of sources or activities and are less complex and time consuming than individual permits.

In the case of bad environmental stewardship, as noted, NJDEP levies penalties on entities that violate environmental laws or permit conditions and can include fines, cleanup orders, permit suspension/revocation, and criminal charges in serious cases.

Under New Jersey law, the “corporate veil” generally protects shareholders and parent companies from liability for the subsidiaries’ environmental wrongdoing. However, if a parent company exercises operational control, directs waste‐handling decisions, or is the alter-ego of the subsidiary, liability may attach. Individual directors/officers may also face personal liability under the RCO doctrine in certain circumstances.

There is no comprehensive ESG law in New Jersey, although such requirements are evolving. Recent legislative and regulatory developments increasingly mandate disclosure of corporate behaviour and reporting related to environmental justice and greenhouse gas emissions.

Implemented in 2023, the New Jersey Environmental Justice Law requires certain major facility permit applicants in or near certain overburdened communities to prepare an Environmental Justice Impact Statement, engage with affected communities, and disclose information concerning potential environmental and public health impacts. Enforcement mechanisms under the law include denial of permits for new facilities that cannot avoid disproportionate impacts to overburdened communities, issuance of special conditions on permits, and joint enforcement actions by the DEP and the OAG.

Under the Global Warming Response Act, New Jersey requires regulated entities to track and disclose greenhouse gas emissions, including carbon dioxide, methane, and other covered pollutants, through periodic NJDEP reporting. Companies that hold environmental permits or approvals must, of course, monitor and report emissions, discharges, and annual compliance data as required by state and federally delegated programmes and applicable permitting programmes, which have their own enforcement mechanisms. 

Companies in New Jersey are not subject to a comprehensive, mandatory environmental audit scheme, unless such reporting is required under a permit or as part of a remediation order. Audit requirements may be included as a permit condition, particularly for higher risk facilities or those in environmental justice communities, or they may be imposed as part of a settlement order or a remediation enforcement order.

Directors and officers may be personally liable for environmental damage or breaches of environmental law committed by the company if there is a showing that a corporate officer was in control of the events that led to the environmental harm or was personally involved in the operation and decision-making process. Penalties include civil administrative penalties, civil penalties, and potentially criminal charges. Corporations are allowed to purchase and maintain insurance on behalf of directors and officers which may cover environmental liability, as long as the terms of the policy do not preclude such coverage.

Environmental insurance is widely available in New Jersey. The most common coverage includes pollution legal liability insurance (PLL) and secured creditor insurance. PLL insurance policies typically cover activities related to pollution, waste disposal, and contamination of soil or water resources covering costs such as cleanup costs, legal expenses related to environmental lawsuits, and damages awarded by courts or regulatory agencies. Known pollution conditions are typically not covered, and many policies include express exclusions for certain contaminants such as lead. Secured creditor insurance, also referred to as “lenders environmental liability insurance”, provides coverage to lenders for unknown environmental conditions. After default, the lender may recover the lesser of the loan balance or the cleanup cost, depending on how the policy is written.

While generally there is no broad requirement for environmental insurance in New Jersey, owners and operators of legacy landfills or closed sanitary landfill facilities who accept recyclable materials, contaminated soil, wastewater treatment residual material, or construction debris must maintain general liability insurance. Further, other New Jersey statutes require an owner or operator of an industrial establishment or any other person required to perform remediation activities to establish and maintain a remediation funding source, which can take the form of an environmental insurance policy.

Lenders may face liability for environmental damage in New Jersey under federal and state statutes if found to be actively participating in the management of the property where hazardous substance were discharged.

The New Jersey legislature created safe harbour provisions to protect lenders from liability for environmental damage or violations of environmental law so long as the lenders do not participate in the management of the property. Lenders may engage in certain business activities on the property pending resale or disposition, without being subject to liability for clean-up costs. However, it is imperative that lenders carefully adhere to the statutory requirements to avoid exposure to liability.

New Jersey has enacted a significant body of environmental legislation providing various mechanisms for civil claims addressing issues such as hazardous substance discharge, solid waste management, and water pollution, to name a few. For example, the Spill Act permits any person who cleans up and removes a discharge of hazardous substances to pursue contribution claims against any other person or entity who is “in any way responsible” for the hazardous substances or discharge.

Parties may also seek contribution through the Spill Act’s federal counterpart, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which permits cost recovery or contribution actions against certain liable parties such as prior owners or operators of a property, or arrangers or transporters of hazardous substances. Of note, while CERCLA excludes petroleum products from its list of hazardous substances, the Spill Act permits claims concerning the discharge of petroleum. Both the Spill Act and CERCLA claims can seek past or future remedial costs as damages. Liable parties pursuant to CERCLA or the Spill Act can also pursue contribution claims through the New Jersey Joint Tortfeasor Contribution Act.

The federal RCRA allows two civil actions by citizens: (i) suits against any person, including federal, state, or local governments, that is violating any RCRA permit, standard, regulation, condition, requirement, prohibition, or order; or (ii) suits against any person “who has contributed or who is contributing to the past or present handling, storage, treatment, transportation, or disposal of any solid or hazardous waste which may present an imminent and substantial endangerment to health or the environment...” However, while a party may seek injunctive relief through RCRA, parties may not recover past cleanup costs under RCRA claims.

Finally, the New Jersey ERA permits claims by citizens to enforce environmental statutes and regulations in New Jersey when the NJDEP or other governmental authorities fail to proceed with enforcement actions, or if governmental actions are insufficient to address environmental harm. The ERA allows citizens to request injunctive relief, demand penalties, and potentially recover attorney and expert fees, if successful.

In addition, recovery may also be sought through traditional common law causes of action, such as private and public nuisance, negligence, trespass, strict liability, and unjust enrichment, as well as contractual claims.

Punitive damages for environmental violations are generally not imposed unless there is an intentional wrongdoing of egregious nature. Courts generally have discretion to impose punitive damages.

However, certain environmental statutes include statutory penalties, which are not discretionary. For example, the Spill Act includes a provision for treble damages under certain circumstances, such as where a party failed to comply with an order from the NJDEP. The statutory penalties are generally are imposed automatically and serve a similar purpose as punitive damages – to penalise non-compliance and deter future violations.

Class action lawsuits are permitted in New Jersey for environmental-related civil claims if the court finds the requirements for maintaining a class action are met.

New Jersey has been a leader in environmental law and has heard several landmark environmental law cases. There have been a number of landmark cases over the years concerning the applicability of the Spill Act, specifically addressing issues such as retroactivity, the nexus required for liability, liability allocation, and sovereign immunity.

• In New Jersey Department of Environmental Protection v Ventron Corporation, the New Jersey Supreme Court ruled that the Spill Act could be applied to parties responsible for environmental contamination retroactively (94 N.J. 473 (1983)).
• In New Jersey Department of Environmental Protection v Dimant, the Superior Court, Appellate Division, addressed the nexus required for liability, holding that past owners are only liable under the Spill Act if they owned the property at the time of discharge and there is a nexus between the discharge and site for which cleanup and related costs are incurred (18 N.J. Super. 530 (App. Div. 2011)).       
• In Magic Petroleum Corp. v Exxon Mobil Corp., the New Jersey Supreme Court held that a property owner or responsible parties may file contribution claims under the Spill Act and a court may allocate liability before the final resolution of a site remediation plan (218 N.J. 390 (2014)).
• In NL Industries Inc. v State, the Superior Court, Appellate Division ruled that the state cannot be held liable for claims under the Spill Act arising from discharges prior to the adoption of the Spill Act, further explaining the Spill Act does not retroactively waive the state’s sovereign immunity for discretionary governmental activities (42 N.J. Super. 403 (App. Div. 2015)).

Generally, parties in New Jersey may contractually transfer or apportion liability for environmental matters or conditions. However, such transfers are ordinarily only applicable as between the parties, rather than granting full immunity against governmental enforcement of state or federal environmental laws.

Specifically, a party may agree to immunise or hold another party harmless for environmental conditions arising out of the indemnifying party’s operations on site. This is most often seen in purchase sale agreements for the acquisition of a potentially contaminated property. However, while such contractual provisions can determine the liability of the parties as between themselves, it may not resolve liability owed to third parties. For instance, pursuant to the Spill Act, any person “in any way responsible” for hazardous substances or the discharge of such substances, may be held liable to the state, or to other parties through contribution actions, for damages arising from the release or discharge. While a new owner of a contaminated property may be protected by an indemnity agreement with the prior owner, that protection is only as strong as the solvency or availability of the prior owner. Should the prior owner become insolvent, the new owner would again be liable to the NJDEP or third parties for damages arising from the contamination on site, unless some other protection (such as innocent purchaser defences) applies.

Similarly, pursuant to the ISRA, while the current owner/operator is responsible for completing its ISRA obligations prior to closing or following ceasing of site operations, both tenants and landlords are liable to the NJDEP for this compliance. The NJDEP often leaves it to the landlord and tenant to determine, amongst themselves, which party will be expected to complete the required ISRA investigation, remediation, and monitoring. Such an apportionment of liability is typically included in the lease agreement. However, again, if one party ultimately proves to be insolvent, either party will remain liable to NJDEP.

The NJDEP is charged with overseeing contamination in order to protect public health and the environment. New Jersey’s cleanup scheme seeks to encourage efficient, complete remediation.

New Jersey’s statutes and regulations promulgated by NJDEP impose strict requirements for conducting effective remediation of contaminated land, including requiring oversight by remediation professionals and conforming to remediation standards. NJDEP may ultimately take direct oversight of a remediation if deemed necessary. The three major statutes governing contaminated land are the Spill Act, SRRA, and the Brownfields and Contaminated Site Remediation Act. Their implementing regulations provide additional guidance for investigation and remediation. However, generally, remediation is conducted through the oversight of an LSRP who steps into the shoes of the NJDEP for the majority of site investigations and remediation within the state.

New Jersey’s regulations provide for compliance with technical and administrative requirements for site remediation. In addition, a discharge may be subject to other statutes and regulations depending on the type of discharge, including federal laws such as the Toxic Substances Control Act (TSCA) or the Resource Conservation and Recovery Act.

The party or parties responsible for the discharge are responsible for remediation. Responsible parties include current owners or operators of the subject property, owners of the property at the time of discharge, or those with security interests who have actively participated in management or regulation of the site. Private parties may not delegate their liability as owed to the NJDEP to another party, but they may contractually agree to allocate liability and costs amongst themselves.

The EPA’s Region 2 also oversees federal remediations under the CERCLA. While similar to the state’s Spill Act, there are a number of differences between the two laws. For instance, while petroleum products are excluded from CERCLA liability, they are covered by the Spill Act. Moreover, while CERCLA identifies specific categories of persons who are considered potentially responsible parties, the Spill Act permits liability for any person “in any way responsible” for a discharge of hazardous substances. On the other hand, while Spill Act liability will generally only attach if the discharge is connected to the environmental damage, CERCLA’s causation standard is more relaxed and only requires “some connection” to the discharge.

Under the Spill Act, few defences for responsible parties exist, but one defence is the “innocent purchaser” exception to liability, which protects parties that unknowingly purchase contaminated property despite making “all appropriate inquiries” prior to the site acquisition. This defence requires that a prospective buyer conduct appropriate environmental due diligence prior to purchasing the property, including conducting a Phase I Environmental Site Assessment and potentially a PA or SI.

The Spill Act also permits NJDEP to recover three times the amount the parties spent on remediation if responsible parties do not participate in cleanup.

Under the Spill Act, responsible parties are jointly and severally liable, which means NJDEP can recover the full remediation cost from any one responsible party. This is true regardless of the parties’ various degrees of fault. The Spill Act provides a right to seek contribution, however, meaning a party that covers remediation costs may seek reimbursement from other responsible parties. Joint and several liability is intended to ensure the entire cost of a cleanup is paid. Like the Spill Act, liability to the EPA pursuant to CERCLA is also joint and several; however, a liable party under CERCLA may also seek a contribution action against other potentially responsible parties under the federal law.

Courts determine who is a responsible party, rather than NJDEP, so any disputes regarding liability and allocating liability for cleanup of a discharge will be decided in litigation.

NJDEP’s Site Remediation Program’s Bureau of Enforcement and Investigations is authorised to compel action from responsible parties by issuing an enforcement action.

Additionally, the ERA allows private parties to file proceedings against polluters or property owners to seek remediation when they believe government intervention has been inadequate. The ERA requires that the plaintiff demonstrate the defendant violated an environmental statute, regulation, or ordinance, and that the violation is likely to recur.

Generally, a party must notify the NJDEP, as well as the municipality, county health department, and/or local health department to respond to environmental accidents or before beginning remedial investigation of an environmental incident. NJDEP oversees investigations of spills and releases of hazardous substances. The agency sets forth procedures and timeframes for reporting accidents, conducting preliminary assessments, site investigations, remedial investigations, and remedial action.

For example, under the Spill Act, a responsible party must first conduct a preliminary assessment to determine the presence of contaminants. If so, a site investigation must occur next to assess whether remediation is necessary. Next, a remedial investigation will identify the extent of contamination. Lastly, the remediating party will conduct remedial action to treat or remove the environmental condition. As described above, pursuant to SRRA, the majority of the site investigation and remediation process is conducted under the oversight of an LSRP.

In 2020, the state launched the New Jersey Protecting Against Climate Threats (the “NJ PACT”) initiative, a series of regulations and initiatives intended to address climate change. NJ PACT includes a number of reforms generally falling into two categories: land use and flood protection, and air quality and emissions.

As to land use and flood protection, the state has proposed the Resilient Environments and Landscapes Rule Amendments (REAL rules), which would amend and update various regulations addressing land use in environmentally sensitive areas including coastal zones, flood hazard zones, wetlands, and waterfront areas. The changes also impact how stormwater is addressed on newly developed or modified properties. Among the changes proposed by the REAL rules is the revision of the elevation requirement for new or substantially improved buildings and infrastructure to four feet above base flood elevations. The rules also establish a new regulated area known as the “inundation risk zone.” This zone is defined as those areas which will be inundated with tidal waters permanently by 2100, even though now it is currently dry land. The REAL rules were originally expected to take effect in fall of 2025, but the NJDEP published a Notice of Substantial Rule Change in July of 2025, making certain changes to the proposed rules. Because of this amendment, the REAL rules are now anticipated to be adopted by January of 2026. However, even after they are adopted, NJDEP has expanded existing legacy provisions to allow applicants to continue to rely on the current regulations and requirements provided complete applications are submitted by July 2026.

As to air quality and emissions, since 2020, New Jersey has adopted various regulations to control and reduce greenhouse gas emissions, including:

• Greenhouse Gas Monitoring and Reporting Rule (GHGMR);
• Advanced Clean Truck (ACT) Program and Fleet Reporting Requirements;
• Mobile Cargo Handling Equipment at Ports and Intermodal Rail Yards;
• Control and Prohibition of Carbon Dioxide Emissions from Stationary Sources; and
• Model Year 2027 or Later Heavy-Duty New Engine and Vehicle Standards and Requirements, and Diesel Vehicle Inspection Tests and Procedures.

New Jersey is committed to achieving 100% clean energy by 2035: one of the country’s most ambitious clean energy goals. New Jersey is also one of ten states in the country with an energy storage target (2,000 MW by 2030).

In order to meet these targets, New Jersey has adopted a number of recent regulations to control greenhouse gas emissions.

For example, pursuant to the Advanced Clean Truck Program, modelled after the similar California regulations, manufacturers are required to sell zero-emission trucks as an increasing percentage of their annual sale from 2025–2035. The rule also includes a reporting requirement on shipment and shuttle services as well as their existing fleet operations.

In addition, the GHGMR requires sources of methane with a potential to emit 100 tons or more annually to report their emissions to the state. Additional methane reporting requirements have also been adopted for gas public utilities and users of halogenated gases. Other adopted regulations have set carbon dioxide emission limits for new fossil fuel-powered electric generating units, established a three-tiered emission limit for existing electric-generating units, banned the combustion of No 4 and No 6 heavy fuel oils, and established performance standards for mobile cargo handling equipment at ports and intermodal rail yards.

In addition to the federal National Emission Standards for Hazardous Air Pollutants and other federal asbestos statutes and regulations, asbestos is governed by multiple state agencies and regulations. The rules are intended to mitigate health issues associated with exposure to asbestos.

The NJDEP governs the transportation and disposal of materials containing asbestos. The Uniform Construction Code also contains regulations governing asbestos hazard abatement. Additionally, the Asbestos Control and Licensing Act (ACLA) and its regulations require that asbestos workers participate in a training course, mandate licensing for asbestos abatement contractors, and provide for permits for asbestos workers. These regulations were adopted and are overseen by the Departments of Health and Labor. Lastly, the New Jersey Department of Community Affairs regulates asbestos abatement in public buildings such as schools.

PCBs were used in industrial materials such as electrical equipment, paint and dyes until their manufacturing was banned in 1979. The United States EPA Region 2 implements federal standards for the use, cleanup and disposal of PCBs under the Toxic Substances Control Act. The New Jersey Spill Compensation and Control Act (Spill Act) also governs PCB cleanups, so responsible parties must comply with both federal and state standards.

There are various state statutes and regulations governing solid and hazardous waste in New Jersey. Counties are also statutorily authorised by the Solid Waste Management Act to develop solid waste management plans, and municipalities can participate in the adoption of such plans.

The NJDEP Division of Sustainable Waste Management oversees facilities, transporters, and others that handle waste. The Division also oversees recycling, medical waste, and food waste. The United States EPA Region 2 also oversees federal statutes and regulations governing waste, such as the RCRA.

NJDEP’s Bureau of Solid Waste Planning & Licensing regulates solid waste planning, solid waste public utilities, and licensing. Businesses in the waste, soil and fill, and recycling industries must obtain an “A-901” licence. The A-901 Unit issues licences and oversees disclosure statements and may issue revocations if a licensed company violates the rules.

NJDEP’s Bureau of Solid Waste Permitting reviews permit applications for solid waste landfills, resource recovery facilities, transfer stations and recovery facilities, and data management.

NJDEP’s Bureau of Recycling and Hazardous Waste Management oversees hazardous waste permits, recycling centres, and covered electronic device recycling.

Counties and municipalities are also statutorily authorised by the Solid Waste Management Act to develop solid waste management plans.

Under RCRA, parties that produce, transport, store, and dispose of hazardous waste are strictly liable for their hazardous waste.  Thus, waste facility owners and operators can be held liable for hazardous waste even after it has been disposed of by a third party. New Jersey imposes strict liability to promote proper disposal.

New Jersey’s Spill Act operates similarly, where strict liability applies regardless of a party’s fault. Courts will allocate joint and several liability between responsible parties, but other responsible parties may seek contribution for cleanup costs.

New Jersey’s policies seek to encourage reuse and recycling and minimise the use of landfills.

Manufacturers of certain batteries, such as mercuric oxide batteries, nickel-cadmium batteries, and sealed lead rechargeable batteries, are responsible for the collection, transportation, and recycling or disposal of the batteries.

Beginning in January 2027, New Jersey’s Electric Hybrid Vehicle Management Act will prohibit propulsion batteries from being disposed of in landfills. Liability applies to battery manufacturers, which promotes battery recycling.

Consumer appliance manufacturers must design products with readily removable batteries, and retailers of such products may have to accept used rechargeable batteries from consumers.

Waste operators are subject to regulations that provide for environmentally conscious operations and the protection of public health. Operators must register with NJDEP. Collectors and disposers of solid waste must obtain a certificate of public convenience and necessity from the NJDEP.

If waste operators do not abide by their permits or violate waste regulations, they may be subject to civil administrative penalties and compliance assistance programmes. Criminal charges are also available enforcement mechanisms. Courts may also impose injunctive relief such as properly closing landfills or abating environmental hazards.

New Jersey’s environmental statutes typically require disclosure of an environmental issue to the NJDEP. Under the SRRA, LSRPs must immediately disclose an environmental concern that poses a significant risk to public health or the environment to NJDEP. The ISRA also requires owners of industrial facilities to report the site’s closure or sale to NJDEP within five days.

Annual emissions reporting is also required for facilities that emit or have the potential to emit certain pollutants. Major facilities with permits must submit semi-annual and annual compliance certification reports. Additionally, discharge monitoring reports are mandatory for facilities with NJPDES permits.

The NJDEP further provides a self-disclosure report online for regulated entities, which requires an entity to provide a description of the violation, the events that led to the discovery of the violation and measures the entity will take to prevent future violations, among other disclosures.

NJDEP establishes and employs grace periods for certain minor violations. However, failure to comply with other reporting requirements may result in NJDEP’s revocation or suspension of permits or certificates. The NJDEP may also issue compliance orders, assess administrative civil penalties, file suit, or impose criminal penalties from fines to imprisonment.

Environmental information is available through NJDEP’s public database DataMiner. In 2025, NJDEP also launched a new DocMiner tool to add more information available to the public. These databases are intended to improve accessibility to information and transparency and to avoid filing requests under New Jersey’s Open Public Records Act (OPRA).

Benefit corporations are required to disclose their environmental performance in their annual benefit reports. Otherwise, there are no state-mandated requirements for the disclosure of environmental information in annual reports. Publicly traded corporations are subject to the Securities and Exchange Commission’s federal disclosure rules.

In April 2024, the New Jersey Economic Development Authority (NJEDA) formed the New Jersey Green Bank, a wholly owned subsidiary of the NJEDA intended to use climate-related investments and financial assistance to mobilise private capital in order to advance New Jersey’s climate goals. Certain entities, with eligible projects within New Jersey such as renewable energy generation, electric battery storage, building retrofits and new net zero buildings, as well as zero emission vehicles, zero emission vehicle charging or fuelling infrastructure, may apply for financing from the New Jersey Green Bank.

In addition, New Jersey Clean Energy Loans are available through the NJEDA for smaller companies (with fewer than 750 employees) in New Jersey seeking financing for clean energy projects. This is an USD80 million co-lending programme with funds from the US Treasury’s State Small Business Credit Initiative (SSBCI). Through these loans, the NJEDA intends to lend between USD250,000 and USD10 million for projects requesting a total loan amount of USD500,000 to USD20 million. 

Environmental due diligence is typically conducted on M&A, finance, and property transactions within New Jersey. Typically, a Phase I Environmental Site Assessment will be performed, at a minimum, which is an evaluation of the current site conditions, current and prior site operations, and potential environmental and business risks.

However, while a Phase I may provide certain defences to future liability should a previously unknown environmental condition be discovered in the future, including federal innocent purchaser or bona fide purchaser defences under CERCLA, a Phase I, alone, does not establish a defence to liability under the New Jersey Spill Act. As such, a Preliminary Assessment, in addition to the typical Phase I, is often performed. The Preliminary Assessment involves a much more in-depth analysis of potential environmental risks including whether previously generated environmental data is compliant with current regulations.

Finally, if certain environmental risks or concerns are identified in the Phase I and/or Preliminary Assessment, a Phase II Environmental Site Assessment is often conducted. This Phase II will consist of further investigation, often including sampling, to determine the existence and scope of potential contamination and other environmental issues at a property.

Sellers of properties are required to make a number of disclosures related to known environmental conditions on site, including the existence of mould, water leakage, dampness, pests, termites, lead pipes, asbestos, underground storage tanks (USTs), or any conditions that adversely affect the physical structures or air, soil, or water quality on-site. In addition, in recent years, New Jersey has adopted laws requiring the disclosure of flood risk information, including whether the property is located in a flood zone, whether it has had flood or drainage issues, and whether it is located in a mapped wetland.

The most common environmental legal issues that typically arise within the context of transactions in New Jersey involve the discovery of potential contamination pursuant to a Phase I, Preliminary Assessment, and Phase II, as described above. These issues are often solved by apportionment of liability within the purchase contract or the establishment of an escrow account by the seller in order to fund any remediation required by the buyer in the future for discovered environmental conditions.

Issues relating to the triggering of ISRA are also common. Specifically, if the property qualifies as an industrial establishment using or storing hazardous substances, the transfer of the property will require compliance with ISRA, including the completion of a site investigation and potential remediation of any identified areas of concern. While the applicable regulations ordinarily require this remediation to be completed prior to closing, sellers can sign a remediation certification, indicating that the property will be remediated after closing, and submit financial assurances, covering the estimated cost of the investigation/remediation, in order to close prior to the completion of remediation.