58:10A-37.5 LEGISLATIVE HISTORY CHECKLIST Compiled by the NJ State Law Library LAWS OF: 2001 CHAPTER: 22 NJSA: 58:10A-37.5 (Underground storage tanks – delays cap on grants) BILL NO: S1173 (Substituted for A2376) SPONSOR(S): McNamara and Vitale DATE INTRODUCED: March 27, 2000 COMMITTEE: ASSEMBLY: Solid and Hazardous Waste; Appropriations SENATE: Environment; Budget AMENDED DURING PASSAGE: Yes DATE OF PASSAGE: ASSEMBLY: December 11, 2000 SENATE: October 23, 2000 DATE OF APPROVAL: February 2, 2001 FOLLOWING ARE ATTACHED IF AVAILABLE: FINAL TEXT OF BILL (1st reprint enacted) S1173 SPONSORS STATEMENT: (Begins on page 4 of original bill) Yes COMMITTEE STATEMENT: ASSEMBLY: Yes 11-13-00 (Sol. & Haz.) 12-7-00 (Approp.) SENATE: Yes 5-4-00 (Envir.) 10-19-00 (Budget) FLOOR AMENDMENT STATEMENTS: No LEGISLATIVE FISCAL ESTIMATE: Yes 11-1-00 12-20-00 A2376 SPONSORS STATEMENT: (Begins on page 4 of original bill) Yes Bill and Sponsors Statement identical toS1173 COMMITTEE STATEMENT: ASSEMBLY: Yes 11-13-00 (Sol. & Haz.) 12-7-00 (Approp.) SENATE: No FLOOR AMENDMENT STATEMENTS: No LEGISLATIVE FISCAL ESTIMATE: Yes 10-18-00 12-15-00 FINAL VERSION (Assembly Committee Substitute) Yes VETO MESSAGE: No GOVERNOR’S PRESS RELEASE ON SIGNING: Yes FOLLOWING WERE PRINTED: To check for circulating copies, contact New Jersey State Government Publications at the State Library (609) 278-2640 ext.103 or mailto:refdesk@njstatelib.org REPORTS: No HEARINGS: No NEWSPAPER ARTICLES: No SENATE, No. 1173 STATE OF NEW JERSEY 209th LEGISLATURE INTRODUCED MARCH 27, 2000 Sponsored by: Senator HENRY P. MCNAMARA District 40 (Bergen and Passaic) Senator JOSEPH F. VITALE District 19 (Middlesex) SYNOPSIS Removes cap on grants from Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. CURRENT VERSION OF TEXT As introduced. (Sponsorship Updated As Of: 5/5/2000) S1173 MCNAMARA, VITALE 2 1 AN ACT concerning financial assistance for underground storage 2 tanks, and amending P.L.1997, c.235. 3 4 BE IT ENACTED by the Senate and General Assembly of the State 5 of New Jersey: 6 7 1. Section 5 of P.L.1997, c.235 (C.58:10A-37.5) is amended to 8 read as follows: 9 5. a. The authority may award financial assistance from the fund 10 to an eligible owner or operator in the form of a loan or a conditional 11 hardship grant as provided in this section. An award of financial 12 assistance, either as a loan or a grant, or a combination of both, may, 13 upon application therefor, be for 100% of the eligible project costs. 14 However, a loan that any applicant may receive from the fund for an 15 upgrade, remediation, or closure, or any combination thereof, for any 16 one facility, may not exceed $1,000,000 and a grant that any applicant 17 may receive from the fund for any one facility, may not exceed 18 $250,000. The total amount of financial assistance awarded as grants 19 in any one year may not exceed one third of the total amount of 20 financial assistance awarded in that year except that this limitation 21 upon the award of grants shall not apply to financial assistance 22 awarded between January 1, 1999 and [March 31, 2000] March 31, 23 2001. 24 b. A public entity applying for financial assistance from the fund 25 may only be awarded financial assistance in the form of an interest free 26 loan. 27 c. An applicant, other than a public entity, may apply for and 28 receive a conditional hardship grant as provided in paragraph (1) of 29 this subsection, or a loan for an upgrade, closure, or remediation as 30 provided in paragraph (2) of this subsection. Financial assistance 31 awarded an applicant pursuant to this subsection may consist entirely 32 of a conditional hardship grant, a loan for an upgrade, or loan for a 33 closure, or a loan for a remediation, or any combination thereof, 34 except that the total amount of the award of financial assistance shall 35 be subject to the per facility dollar limitation enumerated in subsection 36 a. of this section. Notwithstanding any other provision of this 37 subsection to the contrary, no tax exempt, nonprofit organization, 38 corporation, or association shall be awarded a conditional hardship 39 grant pursuant to paragraph (1) of this subsection. 40 (1) A conditional hardship grant for eligible project costs of an 41 upgrade, closure or remediation shall be awarded by the authority 42 based upon a finding of eligibility and financial hardship and upon a 43 finding that the applicant meets the criteria set forth in this act. EXPLANATION - Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law. Matter underlined thus is new matter. S1173 MCNAMARA, VITALE 3 1 In order to be eligible for a conditional hardship grant, the applicant 2 shall have owned or operated the subject petroleum underground 3 storage tank as of December 1, 1996 and continually thereafter or shall 4 have inherited the property from a person who owned the petroleum 5 underground storage tank as of that date. No applicant shall be 6 eligible for a conditional hardship grant if the applicant has a taxable 7 income of more than $100,000 or a net worth, exclusive of the 8 applicant's primary residence, of over $100,000. 9 A finding of financial hardship by the authority shall be based upon 10 a determination that an applicant cannot reasonably be expected to 11 repay all or a portion of the eligible project costs if the financial 12 assistance were to be awarded as a loan. The amount of an award of 13 a conditional hardship grant shall be the amount of that portion of the 14 eligible project costs the authority determines the applicant cannot 15 reasonably be expected to repay. 16 In making a finding of financial hardship for an application for the 17 upgrade, closure, or remediation of a petroleum underground storage 18 tank, where the petroleum underground storage tank is a part of the 19 business property of the owner, the authority shall base its finding 20 upon the cash flow of the applicant's business, whether or not any part 21 of the applicant's business is related to the ownership or operation of 22 that petroleum underground storage tank. In making a finding of 23 financial hardship for an application for the upgrade or remediation of 24 a petroleum underground storage tank, where the petroleum 25 underground storage tank is not a part of the business property of the 26 owner, the authority shall base its finding upon the applicant's taxable 27 income in the year prior to the date of the application being submitted. 28 If the authority awards a conditional hardship grant in combination 29 with a loan pursuant to this subsection, the authority shall release to 30 the applicant the loan monies prior to the release of the conditional 31 hardship grant monies. 32 Conditional hardship grants awarded to an applicant shall be subject 33 to the lien provisions enumerated in section 16 of P.L.1997, c.235 34 (C.58:10A-37.16). 35 (2) A loan to an eligible owner or operator for the eligible project 36 costs of an upgrade, closure, or remediation shall be awarded by the 37 authority only upon a finding that the applicant other than a public 38 entity is able to repay the amount of the loan. 39 In making a finding of an applicant's ability to repay a loan for the 40 upgrade, closure, and remediation of a regulated tank, or for the 41 remediation of a discharge from a petroleum underground storage 42 tank, the authority shall base its finding, as applicable, upon the cash 43 flow of the applicant's business, the applicant's taxable income and the 44 applicant's personal and business assets, except that the authority may 45 not consider the applicant's primary residence as collateral, except that 46 the authority may consider the applicant's primary residence as S1173 MCNAMARA, VITALE 4 1 collateral with the permission of the applicant or where the subject 2 petroleum underground storage tank or regulated tank is located at the 3 primary residence. 4 d. The authority shall, where applicable, require an applicant 5 applying for financial assistance from the fund to submit to the 6 authority the financial statements of the applicant's business for three 7 years prior to the date of the application, the most recent interim 8 financial statement for the year of the application, the applicant's 9 federal income tax returns, or other relevant documentation. 10 e. Nothing in this section is intended to alter the priority or criteria 11 for awarding financial assistance established pursuant to section 4 of 12 P.L.1997, c.235 (C.58:10A-37.4). 13 f. An eligible owner or operator may only be awarded that amount 14 of financial assistance issued as a loan for which the applicant 15 demonstrates he could not qualify for and obtain as a commercial loan. 16 The provisions of this subsection shall not apply to an owner or 17 operator or petroleum underground storage tank used to store heating 18 oil for onsite consumption in a residential building. 19 (cf: P.L.1999, c.89, s.1) 20 21 2. This act shall take effect immediately. 22 23 24 STATEMENT 25 26 This bill would remove the limit on the total amount of grant money 27 that may be made available from the Petroleum Underground Storage 28 Tank Remediation, Upgrade and Closure Fund for one additional year. 29 The total annual amount of financial assistance that may be awarded 30 as grants is one third of the total annual amount of financial assistance 31 awarded. However, as of January, 2000, the applications for grants 32 exceed the total amount of applications for loans. Therefore, this bill 33 would remove the cap to assure that the available funds may be 34 awarded. SENATE ENVIRONMENT COMMITTEE STATEMENT TO SENATE, No. 1173 STATE OF NEW JERSEY DATED: MAY 4, 2000 The Senate Environment Committee reports favorably Senate Bill No. 1173. This bill would remove the limit on the total amount of grant money that may be made available from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund for one additional year. The total annual amount of financial assistance that may be awarded as grants is one third of the total annual amount of financial assistance awarded. However, as of January, 2000, the applications for grants exceed the total amount of applications for loans. Therefore, this bill would remove the cap to assure that the available funds may be awarded. SENATE BUDGET AND APPROPRIATIONS COMMITTEE STATEMENT TO SENATE, No. 1173 with committee amendments STATE OF NEW JERSEY DATED: OCTOBER 19, 2000 The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 1173. This bill, as amended, would delay until March 31, 2004 the implementation of a limit on the proportion of financial assistance from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund that can be awarded in the form of grants. The law that established the underground storage tank fund provides that the amount of financial assistance from the Fund that may be awarded as grants cannot exceed one third of the total annual amount of financial assistance awarded, but delays implementation of this limit until March 31, 2000. As of January 2000, however, the applications for grants exceeded the total amount of applications for loans. Therefore, this bill would postpone implementation of the cap to assure that the available funds may be awarded. In addition, the bill as amended revises a current prohibition against the award of reimbursement for prior expenditures to correct storage tank problems by permitting such reimbursements in the case of prior expenditures for tank remediation measures by individuals and small businesses meeting the qualifications for grants from the fund. COMMITTEE AMENDMENTS: Committee amendments to this bill (1) postpone the date to which implementation of the cap is to be delayed from March 31, 2001 under the bill as introduced to March 31, 2004, and (2) incorporate the provision authorizing reimbursement for prior expenditures on tank remediation. FISCAL IMPACT: The Office of Legislative Services (OLS) estimates that the bill's enactment will have no fiscal impact on State moneys because the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund is primarily supported by an annual dedication of revenues generated from the Corporation Business Tax (CBT). This allocation is part of the annual 4 percent constitutional dedication of 2 total CBT collections for environmental purposes. With respect to the Fund itself, the OLS estimates that the removal of the cap on grants through March 31, 2004 will not significantly affect the availability of loan monies. LEGISLATIVE FISCAL ESTIMATE SENATE, No. 1173 STATE OF NEW JERSEY 209th LEGISLATURE DATED: NOVEMBER 1, 2000 SUMMARY Synopsis: Removes cap on grants from Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. Type of Impact: No impact on Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. Agencies Affected: N.J. Economic Development Authority. Office of Legislative Services Estimate Fiscal Impact Year 1 Year 2 Year 3 State Cost None None None ! The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund awards grants and loans to owners of underground storage tanks to help them comply with State and federally-mandated upgrade and remediation projects. Grants are awarded to applicants who prove financial hardship. ! The Fund is supported by Corporation Business Tax revenues annually dedicated for this purpose pursuant to a constitutional amendment approved in 1996. Approximately $20 million is dedicated annually to the Fund. ! The bill extends the period, under which an unlimited number of grants may be awarded, to March 31, 2001. Thereafter, in any one year, the Fund may only award grants totaling one- third of the total annual amount of financial assistance awarded. ! The Office of Legislative Services (OLS) estimates that the bill will have no fiscal impact on State funds nor on the availability of monies for both loans and grants awarded by the Fund. BILL DESCRIPTION Senate Bill No. 1173 of 2000 temporarily removes the limit on the total amount of grant money that may be made available from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund by extending the waiver period to March 31, 2001. The previous waiver period was January 1, 1999 to March 31, 2000. Notwithstanding this waiver, current law requires that the total annual amount of financial assistance that may be awarded as grants (as Office of Legislative Services Legislative Budget and Finance Office State House Annex Phone (609) 292-8030 P.O. Box 068 Fax (609) 777-2442 Trenton, New Jersey 08625 www.njleg.state.nj.us S1173 2 opposed to loans) from the Fund be no more than one third of the total annual amount of financial assistance awarded. However, as of January, 2000, applications for grants had significantly exceeded applications for loans. The bill would therefore ensure that available funds could be awarded to all eligible applicants who apply for grants by March 31, 2001. The Fund was created by P.L1997, c.235, as amended, and is supported by constitutionally dedicated revenues from the Corporation Business Tax. This assistance program, as administered by the N.J. Economic Development Authority (with technical assistance from the Department of Environmental Protection), provides grants and loans to owners of underground storage tanks for State and federally-mandated upgrades and remediation projects. Successful applicants for grants must prove financial hardship in meeting compliance measures. FISCAL ANALYSIS EXECUTIVE BRANCH None received. OFFICE OF LEGISLATIVE SERVICES The Office of Legislative Services (OLS) estimates that the bill's enactment will have no fiscal impact on State monies because the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund is primarily supported by an annual dedication of revenues generated from the Corporation Business Tax (CBT). This allocation is part of the annual 4 percent constitutional dedication of total CBT collections for environmental purposes. With respect to the Fund itself, the OLS estimates that the removal of the cap on grants through March 31, 2001 will not significantly affect the availability of loan monies. This estimate is based on statements made by the Economic Development Authority during committee hearings on the bill in which it indicated that the Fund has sufficient balances to accommodate all applicants for both grants and loans during the time period designated in the bill that waives the grant award restrictions. Section: Environment, Agriculture, Energy and Natural Resources Analyst: Richard M. Handelman Senior Fiscal Analyst Approved: Alan R. Kooney Legislative Budget and Finance Officer This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note. This fiscal estimate has been prepared pursuant to P.L.1980, c.67. [First Reprint] SENATE, No. 1173 STATE OF NEW JERSEY 209th LEGISLATURE INTRODUCED MARCH 27, 2000 Sponsored by: Senator HENRY P. MCNAMARA District 40 (Bergen and Passaic) Senator JOSEPH F. VITALE District 19 (Middlesex) Co-Sponsored by: Assemblymen Felice and Russo SYNOPSIS Delays implementation of cap on grants from Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund; authorizes reimbursement grants for remediation costs. CURRENT VERSION OF TEXT As reported by the Senate Budget and Appropriations Committee on October 19, 2000, with amendments. (Sponsorship Updated As Of: 12/12/2000) S1173 [1R] MCNAMARA, VITALE 2 1 AN ACT concerning financial assistance for underground storage 2 tanks, and amending P.L.1997, c.235. 3 4 BE IT ENACTED by the Senate and General Assembly of the State 5 of New Jersey: 6 7 1. Section 5 of P.L.1997, c.235 (C.58:10A-37.5) is amended to 8 read as follows: 9 5. a. The authority may award financial assistance from the fund 10 to an eligible owner or operator in the form of a loan or a conditional 11 hardship grant as provided in this section. An award of financial 12 assistance, either as a loan or a grant, or a combination of both, may, 13 upon application therefor, be for 100% of the eligible project costs. 14 However, a loan that any applicant may receive from the fund for an 15 upgrade, remediation, or closure, or any combination thereof, for any 16 one facility, may not exceed $1,000,000 and a grant that any applicant 17 may receive from the fund for any one facility, may not exceed 18 $250,000. The total amount of financial assistance awarded as grants 19 in any one year may not exceed one third of the total amount of 20 financial assistance awarded in that year except that this limitation 21 upon the award of grants shall not apply to financial assistance 22 awarded between January 1, 1999 and [March 31, 2000] 1[March 31, 23 2001] March 31, 20041. 24 b. A public entity applying for financial assistance from the fund 25 may only be awarded financial assistance in the form of an interest free 26 loan. 27 c. An applicant, other than a public entity, may apply for and 28 receive a conditional hardship grant as provided in paragraph (1) of 29 this subsection, or a loan for an upgrade, closure, or remediation as 30 provided in paragraph (2) of this subsection. Financial assistance 31 awarded an applicant pursuant to this subsection may consist entirely 32 of a conditional hardship grant, a loan for an upgrade, or loan for a 33 closure, or a loan for a remediation, or any combination thereof, 34 except that the total amount of the award of financial assistance shall 35 be subject to the per facility dollar limitation enumerated in subsection 36 a. of this section. Notwithstanding any other provision of this 37 subsection to the contrary, no tax exempt, nonprofit organization, 38 corporation, or association shall be awarded a conditional hardship 39 grant pursuant to paragraph (1) of this subsection. 40 (1) A conditional hardship grant for eligible project costs of an 41 upgrade, closure or remediation shall be awarded by the authority EXPLANATION - Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law. Matter underlined thus is new matter. Matter enclosed in superscript numerals has been adopted as follows: 1 Senate SBA committee amendments adopted October 19, 2000. S1173 [1R] MCNAMARA, VITALE 3 1 based upon a finding of eligibility and financial hardship and upon a 2 finding that the applicant meets the criteria set forth in this act. 3 In order to be eligible for a conditional hardship grant, the applicant 4 shall have owned or operated the subject petroleum underground 5 storage tank as of December 1, 1996 and continually thereafter or shall 6 have inherited the property from a person who owned the petroleum 7 underground storage tank as of that date. No applicant shall be 8 eligible for a conditional hardship grant if the applicant has a taxable 9 income of more than $100,000 or a net worth, exclusive of the 10 applicant's primary residence, of over $100,000. 11 A finding of financial hardship by the authority shall be based upon 12 a determination that an applicant cannot reasonably be expected to 13 repay all or a portion of the eligible project costs if the financial 14 assistance were to be awarded as a loan. The amount of an award of 15 a conditional hardship grant shall be the amount of that portion of the 16 eligible project costs the authority determines the applicant cannot 17 reasonably be expected to repay. 18 In making a finding of financial hardship for an application for the 19 upgrade, closure, or remediation of a petroleum underground storage 20 tank, where the petroleum underground storage tank is a part of the 21 business property of the owner, the authority shall base its finding 22 upon the cash flow of the applicant's business, whether or not any part 23 of the applicant's business is related to the ownership or operation of 24 that petroleum underground storage tank. In making a finding of 25 financial hardship for an application for the upgrade or remediation of 26 a petroleum underground storage tank, where the petroleum 27 underground storage tank is not a part of the business property of the 28 owner, the authority shall base its finding upon the applicant's taxable 29 income in the year prior to the date of the application being submitted. 30 If the authority awards a conditional hardship grant in combination 31 with a loan pursuant to this subsection, the authority shall release to 32 the applicant the loan monies prior to the release of the conditional 33 hardship grant monies. 34 Conditional hardship grants awarded to an applicant shall be subject 35 to the lien provisions enumerated in section 16 of P.L.1997, c.235 36 (C.58:10A-37.16). 37 (2) A loan to an eligible owner or operator for the eligible project 38 costs of an upgrade, closure, or remediation shall be awarded by the 39 authority only upon a finding that the applicant other than a public 40 entity is able to repay the amount of the loan. 41 In making a finding of an applicant's ability to repay a loan for the 42 upgrade, closure, and remediation of a regulated tank, or for the 43 remediation of a discharge from a petroleum underground storage 44 tank, the authority shall base its finding, as applicable, upon the cash 45 flow of the applicant's business, the applicant's taxable income and the 46 applicant's personal and business assets, except that the authority may S1173 [1R] MCNAMARA, VITALE 4 1 not consider the applicant's primary residence as collateral, except that 2 the authority may consider the applicant's primary residence as 3 collateral with the permission of the applicant or where the subject 4 petroleum underground storage tank or regulated tank is located at the 5 primary residence. 6 d. The authority shall, where applicable, require an applicant 7 applying for financial assistance from the fund to submit to the 8 authority the financial statements of the applicant's business for three 9 years prior to the date of the application, the most recent interim 10 financial statement for the year of the application, the applicant's 11 federal income tax returns, or other relevant documentation. 12 e. Nothing in this section is intended to alter the priority or criteria 13 for awarding financial assistance established pursuant to section 4 of 14 P.L.1997, c.235 (C.58:10A-37.4). 15 f. An eligible owner or operator may only be awarded that amount 16 of financial assistance issued as a loan for which the applicant 17 demonstrates he could not qualify for and obtain as a commercial loan. 18 The provisions of this subsection shall not apply to an owner or 19 operator or petroleum underground storage tank used to store heating 20 oil for onsite consumption in a residential building. 21 (cf: P.L.1999, c.89, s.1) 22 23 12. Section 7 of P.L.1997, c.235 (C.58:10A-37.7) is amended to 24 read as follows: 25 7. a. The authority shall award financial assistance to an owner or 26 operator of a facility only if the facility is properly registered with the 27 department pursuant to section 3 of P.L.1986, c.102 (C.58:10A-23), 28 where applicable, and if all fees or penalties due and payable on the 29 facility to the department pursuant to P.L.1986, c.102 have either been 30 paid or the nature or the amount of the fee or penalty is being 31 contested in accordance with law. 32 b. The authority may deny an application for financial assistance, 33 and any award of financial assistance may be recoverable by the 34 authority, upon a finding that: 35 (1) in the case of financial assistance awarded for a remediation, 36 the discharge was proximately caused by the applicant's knowing 37 conduct; 38 (2) in the case of financial assistance awarded for a remediation, 39 the discharge was proximately caused or exacerbated by knowing 40 conduct by the applicant with regard to any lawful requirement 41 applicable to petroleum underground storage tanks intended to 42 prevent, or to facilitate the early detection of, the discharge; 43 (3) the applicant failed to commence or complete a remediation, 44 closure, or an upgrade for which an award of financial assistance was 45 made within the time required by the department in accordance with 46 the applicable rules and regulations, within the time prescribed in an S1173 [1R] MCNAMARA, VITALE 5 1 administrative order, an administrative consent agreement, a 2 memorandum of agreement, or a court order; or 3 (4) the applicant provided false information or withheld 4 information on a loan or grant application, or other relevant 5 information required to be submitted to the authority, on any matter 6 that would otherwise render the applicant ineligible for financial 7 assistance from the fund, that would alter the priority of the applicant 8 to receive financial assistance from the fund, that resulted in the 9 applicant receiving a larger grant or loan award than the applicant 10 would otherwise be eligible, or that resulted in payments from the fund 11 in excess of the actual eligible project costs incurred by the applicant 12 or the amount to which the applicant is legally eligible. 13 Nothing in this subsection shall be construed to require the 14 authority to undertake an investigation or make any findings 15 concerning the conduct described in this subsection. 16 c. An application for financial assistance from the fund for an 17 upgrade or closure of a regulated tank shall include all regulated tanks 18 at the facility for which the applicant is seeking financial assistance. 19 Once financial assistance for an upgrade, closure or a remediation is 20 awarded for a facility, no additional award of financial assistance may 21 be made for that facility. However, if an applicant discovers while 22 performing upgrade or closure activities that a remediation is 23 necessary at the site of a facility, and if financial assistance was 24 previously awarded for that site only for an upgrade or closure of a 25 regulated tank, the applicant may amend his application and apply for 26 financial assistance for the required remediation subject to the 27 limitations enumerated in section 5 of this act. An application for 28 financial assistance for an upgrade or closure of a regulated tank shall 29 be conditioned upon the applicant agreeing to perform, at the time of 30 the upgrade or closure, any remediation necessary as a result of a 31 discharge from the regulated tank and commencement of the 32 remediation within the time prescribed and in accordance with the 33 rules and regulations of the department. 34 d. Except as provided below, no financial assistance for upgrade 35 or closure shall be awarded for any regulated tank required to meet the 36 upgrade or closure requirements pursuant to 42 U.S.C. s.6991 et seq. 37 or P.L.1986, c.102 (C.58:10A-21 et seq.), or for the remediation of a 38 discharge from any such regulated tank except as provided in 39 subsection c. of this section, unless the application is filed with the 40 authority prior to January 1, 1999 and the application is complete and 41 the application fee is received by August 1, 1999. No financial 42 assistance for upgrade or closure shall be awarded for any 43 underground storage tank with a capacity of over 2,000 gallons used 44 to store heating oil for onsite consumption in a nonresidential building 45 required to be upgraded pursuant to P.L.1986, c.102 (C.58:10A-21 et 46 seq.) but not pursuant to 42 U.S.C. s.6991 et seq. or for the 47 remediation of a discharge from any such regulated tank except as S1173 [1R] MCNAMARA, VITALE 6 1 provided in subsection c. of this section, unless the application is filed 2 with the authority prior to August 31, 1999 and the application is 3 complete and the application fee is received by March 31, 2000. 4 e. The date of occurrence of a discharge shall not affect eligibility 5 for financial assistance from the fund. Except for a preliminary 6 assessment or a site investigation performed after the effective date of 7 P.L.1997, c.235 (C.58:10A-37.1 et seq.), and except as provided in 8 [subsection] subsections g. and h. of this section, no award of 9 financial assistance shall be made from the fund for the otherwise 10 eligible project costs of a remediation, closure, or an upgrade, or parts 11 thereof, completed prior to an award of financial assistance from the 12 fund. 13 f. No financial assistance may be awarded from the fund for the 14 remediation of a discharge from a petroleum underground storage tank 15 if financial assistance from the Hazardous Discharge Site Remediation 16 Fund established pursuant to section 26 of P.L.1993, c.139 17 (C.58:10B-4) has previously been made for a remediation at that site 18 as a result of a discharge from that petroleum underground storage 19 tank. No financial assistance may be awarded from the fund for the 20 remediation of a discharge from a petroleum underground storage tank 21 if the discharge began subsequent to the completion of an upgrade of 22 that petroleum underground storage tank, which upgrade was intended 23 to meet all applicable upgrade regulations of the department, no matter 24 when the upgrade was performed. 25 g. Notwithstanding any provision of P.L.1997, c.235 26 (C.58:10A-37.1 et seq.), where an eligible owner or operator has filed 27 an application for financial assistance from the fund, and there are 28 either insufficient monies in the fund or the authority has not yet acted 29 upon the application or awarded the financial assistance, the eligible 30 owner or operator may expend its own funds for the upgrade, closure, 31 or remediation, and upon approval of the application, the authority 32 shall award the financial assistance as a reimbursement of the monies 33 expended for eligible project costs. 34 h. Notwithstanding any provision to the contrary of P.L.1997, 35 c.235 (C.58:10A-37.1 et seq.), if an applicant has expended the 36 applicant's own funds on a remediation prior to filing an application 37 for financial assistance from the fund for the eligible project costs of 38 the remediation, the authority, upon approval of the application, may 39 make a grant from the fund pursuant to paragraph (1) of subsection c. 40 of section 5 of P.L.1997, c.235 (C.58:10A-37.5) to reimburse the 41 eligible owner or operator for the eligible project costs of the 42 remediation.1 43 (cf: P.L.1999, c.89, s.3) 44 45 1[2.] 3.1 This act shall take effect immediately 1and section 2 shall 46 be retroactive to January 1, 20001. ASSEMBLY, No. 2376 STATE OF NEW JERSEY 209th LEGISLATURE INTRODUCED MAY 8, 2000 Sponsored by: Assemblyman NICHOLAS R. FELICE District 40 (Bergen and Passaic) Assemblyman DAVID C. RUSSO District 40 (Bergen and Passaic) SYNOPSIS Removes cap on grants from Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. CURRENT VERSION OF TEXT As introduced. (Sponsorship Updated As Of: 5/9/2000) A2376 FELICE, RUSSO 2 1 AN ACT concerning financial assistance for underground storage 2 tanks, and amending P.L.1997, c.235. 3 4 BE IT ENACTED by the Senate and General Assembly of the State 5 of New Jersey: 6 7 1. Section 5 of P.L.1997, c.235 (C.58:10A-37.5) is amended to 8 read as follows: 9 5. a. The authority may award financial assistance from the fund 10 to an eligible owner or operator in the form of a loan or a conditional 11 hardship grant as provided in this section. An award of financial 12 assistance, either as a loan or a grant, or a combination of both, may, 13 upon application therefor, be for 100% of the eligible project costs. 14 However, a loan that any applicant may receive from the fund for an 15 upgrade, remediation, or closure, or any combination thereof, for any 16 one facility, may not exceed $1,000,000 and a grant that any applicant 17 may receive from the fund for any one facility, may not exceed 18 $250,000. The total amount of financial assistance awarded as grants 19 in any one year may not exceed one third of the total amount of 20 financial assistance awarded in that year except that this limitation 21 upon the award of grants shall not apply to financial assistance 22 awarded between January 1, 1999 and [March 31, 2000] March 31, 23 2001. 24 b. A public entity applying for financial assistance from the fund 25 may only be awarded financial assistance in the form of an interest free 26 loan. 27 c. An applicant, other than a public entity, may apply for and 28 receive a conditional hardship grant as provided in paragraph (1) of 29 this subsection, or a loan for an upgrade, closure, or remediation as 30 provided in paragraph (2) of this subsection. Financial assistance 31 awarded an applicant pursuant to this subsection may consist entirely 32 of a conditional hardship grant, a loan for an upgrade, or loan for a 33 closure, or a loan for a remediation, or any combination thereof, 34 except that the total amount of the award of financial assistance shall 35 be subject to the per facility dollar limitation enumerated in subsection 36 a. of this section. Notwithstanding any other provision of this 37 subsection to the contrary, no tax exempt, nonprofit organization, 38 corporation, or association shall be awarded a conditional hardship 39 grant pursuant to paragraph (1) of this subsection. 40 (1) A conditional hardship grant for eligible project costs of an 41 upgrade, closure or remediation shall be awarded by the authority 42 based upon a finding of eligibility and financial hardship and upon a 43 finding that the applicant meets the criteria set forth in this act. EXPLANATION - Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law. Matter underlined thus is new matter. A2376 FELICE, RUSSO 3 1 In order to be eligible for a conditional hardship grant, the applicant 2 shall have owned or operated the subject petroleum underground 3 storage tank as of December 1, 1996 and continually thereafter or shall 4 have inherited the property from a person who owned the petroleum 5 underground storage tank as of that date. No applicant shall be 6 eligible for a conditional hardship grant if the applicant has a taxable 7 income of more than $100,000 or a net worth, exclusive of the 8 applicant's primary residence, of over $100,000. 9 A finding of financial hardship by the authority shall be based upon 10 a determination that an applicant cannot reasonably be expected to 11 repay all or a portion of the eligible project costs if the financial 12 assistance were to be awarded as a loan. The amount of an award of 13 a conditional hardship grant shall be the amount of that portion of the 14 eligible project costs the authority determines the applicant cannot 15 reasonably be expected to repay. 16 In making a finding of financial hardship for an application for the 17 upgrade, closure, or remediation of a petroleum underground storage 18 tank, where the petroleum underground storage tank is a part of the 19 business property of the owner, the authority shall base its finding 20 upon the cash flow of the applicant's business, whether or not any part 21 of the applicant's business is related to the ownership or operation of 22 that petroleum underground storage tank. In making a finding of 23 financial hardship for an application for the upgrade or remediation of 24 a petroleum underground storage tank, where the petroleum 25 underground storage tank is not a part of the business property of the 26 owner, the authority shall base its finding upon the applicant's taxable 27 income in the year prior to the date of the application being submitted. 28 If the authority awards a conditional hardship grant in combination 29 with a loan pursuant to this subsection, the authority shall release to 30 the applicant the loan monies prior to the release of the conditional 31 hardship grant monies. 32 Conditional hardship grants awarded to an applicant shall be subject 33 to the lien provisions enumerated in section 16 of P.L.1997, c.235 34 (C.58:10A-37.16). 35 (2) A loan to an eligible owner or operator for the eligible project 36 costs of an upgrade, closure, or remediation shall be awarded by the 37 authority only upon a finding that the applicant other than a public 38 entity is able to repay the amount of the loan. 39 In making a finding of an applicant's ability to repay a loan for the 40 upgrade, closure, and remediation of a regulated tank, or for the 41 remediation of a discharge from a petroleum underground storage 42 tank, the authority shall base its finding, as applicable, upon the cash 43 flow of the applicant's business, the applicant's taxable income and the 44 applicant's personal and business assets, except that the authority may 45 not consider the applicant's primary residence as collateral, except that 46 the authority may consider the applicant's primary residence as A2376 FELICE, RUSSO 4 1 collateral with the permission of the applicant or where the subject 2 petroleum underground storage tank or regulated tank is located at the 3 primary residence. 4 d. The authority shall, where applicable, require an applicant 5 applying for financial assistance from the fund to submit to the 6 authority the financial statements of the applicant's business for three 7 years prior to the date of the application, the most recent interim 8 financial statement for the year of the application, the applicant's 9 federal income tax returns, or other relevant documentation. 10 e. Nothing in this section is intended to alter the priority or criteria 11 for awarding financial assistance established pursuant to section 4 of 12 P.L.1997, c.235 (C.58:10A-37.4). 13 f. An eligible owner or operator may only be awarded that amount 14 of financial assistance issued as a loan for which the applicant 15 demonstrates he could not qualify for and obtain as a commercial loan. 16 The provisions of this subsection shall not apply to an owner or 17 operator or petroleum underground storage tank used to store heating 18 oil for onsite consumption in a residential building. 19 (cf: P.L.1999, c.89, s.1) 20 21 2. This act shall take effect immediately. 22 23 24 STATEMENT 25 26 This bill would remove the limit on the total amount of grant money 27 that may be made available from the Petroleum Underground Storage 28 Tank Remediation, Upgrade and Closure Fund for one additional year. 29 The total annual amount of financial assistance that may be awarded 30 as grants is one third of the total annual amount of financial assistance 31 awarded. However, as of January, 2000, the applications for grants 32 exceed the total amount of applications for loans. Therefore, this bill 33 would remove the cap to assure that the available funds may be 34 awarded. LEGISLATIVE FISCAL ESTIMATE ASSEMBLY, No. 2376 STATE OF NEW JERSEY 209th LEGISLATURE DATED: OCTOBER 18, 2000 SUMMARY Synopsis: Removes cap on grants from Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. Type of Impact: No impact on Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. Agencies Affected: N.J. Economic Development Authority. Office of Legislative Services Estimate Fiscal Impact Year 1 Year 2 Year 3 State Cost None None None ! The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund awards grants and loans to owners of underground storage tanks to help them comply with State and federally-mandated upgrade and remediation projects. Grants are awarded to applicants who prove financial hardship. ! The Fund is supported by Corporation Business Tax revenues annually dedicated for this purpose pursuant to a constitutional amendment approved in 1996. Approximately $20 million is dedicated annually to the Fund. ! The bill extends the period, under which an unlimited number of grants may be awarded, to March 31, 2001. Thereafter, in any one year, the Fund may only award grants totaling one- third of the total annual amount of financial assistance awarded. ! The Office of Legislative Services (OLS) estimates that the bill will have no fiscal impact on State funds nor on the availability of monies for both loans and grants awarded by the Fund. BILL DESCRIPTION Assembly Bill No. 2376 of 2000 temporarily removes the limit on the total amount of grant money that may be made available from the Petroleum Underground Storage Tank Remediation, Office of Legislative Services Legislative Budget and Finance Office State House Annex Phone (609) 292-8030 P.O. Box 068 Fax (609) 777-2442 Trenton, New Jersey 08625 www.njleg.state.nj.us A2376 2 Upgrade and Closure Fund by extending the waiver period to March 31, 2001. The previous waiver period was January 1, 1999 to March 31, 2000. Notwithstanding this waiver, current law requires that the total annual amount of financial assistance that may be awarded as grants (as opposed to loans) from the Fund be no more than one third of the total annual amount of financial assistance awarded. However, as of January, 2000, applications for grants had significantly exceeded applications for loans. The bill would therefore ensure that available funds could be awarded to all eligible applicants who apply for grants by March 31, 2001. The Fund was created by P.L. 1997, c.235, as amended, and is supported by constitutionally dedicated revenues from the Corporation Business Tax. This assistance program, as administered by the N.J. Economic Development Authority (with technical assistance from the Department of Environmental Protection), provides grants and loans to owners of underground storage tanks for State and federally-mandated upgrades and remediation projects. Successful applicants for grants must prove financial hardship in meeting compliance measures. FISCAL ANALYSIS EXECUTIVE BRANCH None received. OFFICE OF LEGISLATIVE SERVICES The Office of Legislative Services (OLS) estimates that the bill's enactment will have no fiscal impact on State monies because the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund is primarily supported by an annual dedication of revenues generated from the Corporation Business Tax (CBT). This allocation is part of the annual 4 percent constitutional dedication of total CBT collections for environmental purposes. With respect to the Fund itself, the OLS estimates that the removal of the cap on grants through March 31, 2001 will not significantly affect the availability of loan monies. This estimate is based on statements made by the Economic Development Authority during committee hearings on the bill in which it indicated that the Fund has sufficient balances to accommodate all applicants for both grants and loans during the time period designated in the bill that waives the grant award restrictions. Section: Environment, Agriculture, Energy and Natural Resources Analyst: Richard M. Handelman Senior Fiscal Analyst Approved: Alan R. Kooney Legislative Budget and Finance Officer This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note. This fiscal estimate has been prepared pursuant to P.L.1980, c.67. ASSEMBLY COMMITTEE SUBSTITUTE FOR ASSEMBLY, No. 2376 STATE OF NEW JERSEY 209th LEGISLATURE ADOPTED NOVEMBER 13, 2000 Sponsored by: Assemblyman NICHOLAS R. FELICE District 40 (Bergen and Passaic) Assemblyman DAVID C. RUSSO District 40 (Bergen and Passaic) SYNOPSIS Delays implementation of cap on grants from Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund; authorizes reimbursement grants for remediation costs. CURRENT VERSION OF TEXT Substitute as adopted by the Assembly Solid and Hazardous Waste Committee. ACS for A2376 FELICE, RUSSO 2 1 AN ACT concerning financial assistance for underground storage tanks, 2 and amending P.L.1997, c.235. 3 4 BE IT ENACTED by the Senate and General Assembly of the State of 5 New Jersey: 6 7 1. Section 5 of P.L.1997, c.235 (C.58:10A-37.5) is amended to read 8 as follows: 9 5. a. The authority may award financial assistance from the fund to 10 an eligible owner or operator in the form of a loan or a conditional 11 hardship grant as provided in this section. An award of financial 12 assistance, either as a loan or a grant, or a combination of both, may, upon 13 application therefor, be for 100% of the eligible project costs. However, 14 a loan that any applicant may receive from the fund for an upgrade, 15 remediation, or closure, or any combination thereof, for any one facility, 16 may not exceed $1,000,000 and a grant that any applicant may receive 17 from the fund for any one facility, may not exceed $250,000. The total 18 amount of financial assistance awarded as grants in any one year may not 19 exceed one third of the total amount of financial assistance awarded in 20 that year except that this limitation upon the award of grants shall not 21 apply to financial assistance awarded between January 1, 1999 and 22 [March 31, 2000] March 31, 2004. 23 b. A public entity applying for financial assistance from the fund may 24 only be awarded financial assistance in the form of an interest free loan. 25 c. An applicant, other than a public entity, may apply for and receive 26 a conditional hardship grant as provided in paragraph (1) of this 27 subsection, or a loan for an upgrade, closure, or remediation as provided 28 in paragraph (2) of this subsection. Financial assistance awarded an 29 applicant pursuant to this subsection may consist entirely of a conditional 30 hardship grant, a loan for an upgrade, or loan for a closure, or a loan for 31 a remediation, or any combination thereof, except that the total amount 32 of the award of financial assistance shall be subject to the per facility 33 dollar limitation enumerated in subsection a. of this section. 34 Notwithstanding any other provision of this subsection to the contrary, no 35 tax exempt, nonprofit organization, corporation, or association shall be 36 awarded a conditional hardship grant pursuant to paragraph (1) of this 37 subsection. 38 (1) A conditional hardship grant for eligible project costs of an 39 upgrade, closure or remediation shall be awarded by the authority based 40 upon a finding of eligibility and financial hardship and upon a finding that 41 the applicant meets the criteria set forth in this act. 42 In order to be eligible for a conditional hardship grant, the applicant 43 shall have owned or operated the subject petroleum underground storage EXPLANATION - Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and intended to be omitted in the law. Matter underlined thus is new matter. ACS for A2376 FELICE, RUSSO 3 1 tank as of December 1, 1996 and continually thereafter or shall have 2 inherited the property from a person who owned the petroleum 3 underground storage tank as of that date. No applicant shall be eligible 4 for a conditional hardship grant if the applicant has a taxable income of 5 more than $100,000 or a net worth, exclusive of the applicant's primary 6 residence, of over $100,000. 7 A finding of financial hardship by the authority shall be based upon a 8 determination that an applicant cannot reasonably be expected to repay all 9 or a portion of the eligible project costs if the financial assistance were to 10 be awarded as a loan. The amount of an award of a conditional hardship 11 grant shall be the amount of that portion of the eligible project costs the 12 authority determines the applicant cannot reasonably be expected to 13 repay. 14 In making a finding of financial hardship for an application for the 15 upgrade, closure, or remediation of a petroleum underground storage 16 tank, where the petroleum underground storage tank is a part of the 17 business property of the owner, the authority shall base its finding upon 18 the cash flow of the applicant's business, whether or not any part of the 19 applicant's business is related to the ownership or operation of that 20 petroleum underground storage tank. In making a finding of financial 21 hardship for an application for the upgrade or remediation of a petroleum 22 underground storage tank, where the petroleum underground storage tank 23 is not a part of the business property of the owner, the authority shall base 24 its finding upon the applicant's taxable income in the year prior to the date 25 of the application being submitted. 26 If the authority awards a conditional hardship grant in combination 27 with a loan pursuant to this subsection, the authority shall release to the 28 applicant the loan monies prior to the release of the conditional hardship 29 grant monies. 30 Conditional hardship grants awarded to an applicant shall be subject 31 to the lien provisions enumerated in section 16 of P.L.1997, c.235 32 (C.58:10A-37.16). 33 (2) A loan to an eligible owner or operator for the eligible project 34 costs of an upgrade, closure, or remediation shall be awarded by the 35 authority only upon a finding that the applicant other than a public entity 36 is able to repay the amount of the loan. 37 In making a finding of an applicant's ability to repay a loan for the 38 upgrade, closure, and remediation of a regulated tank, or for the 39 remediation of a discharge from a petroleum underground storage tank, 40 the authority shall base its finding, as applicable, upon the cash flow of the 41 applicant's business, the applicant's taxable income and the applicant's 42 personal and business assets, except that the authority may not consider 43 the applicant's primary residence as collateral, except that the authority 44 may consider the applicant's primary residence as collateral with the 45 permission of the applicant or where the subject petroleum underground 46 storage tank or regulated tank is located at the primary residence. ACS for A2376 FELICE, RUSSO 4 1 d. The authority shall, where applicable, require an applicant applying 2 for financial assistance from the fund to submit to the authority the 3 financial statements of the applicant's business for three years prior to the 4 date of the application, the most recent interim financial statement for the 5 year of the application, the applicant's federal income tax returns, or other 6 relevant documentation. 7 e. Nothing in this section is intended to alter the priority or criteria for 8 awarding financial assistance established pursuant to section 4 of 9 P.L.1997, c.235 (C.58:10A-37.4). 10 f. An eligible owner or operator may only be awarded that amount of 11 financial assistance issued as a loan for which the applicant demonstrates 12 he could not qualify for and obtain as a commercial loan. The provisions 13 of this subsection shall not apply to an owner or operator or petroleum 14 underground storage tank used to store heating oil for onsite consumption 15 in a residential building. 16 (cf: P.L.1999, c.89, s.1) 17 18 2. Section 7 of P.L.1997, c.235 (C.58:10A-37.7) is amended to read 19 as follows: 20 7. a. The authority shall award financial assistance to an owner or 21 operator of a facility only if the facility is properly registered with the 22 department pursuant to section 3 of P.L.1986, c.102 (C.58:10A-23), 23 where applicable, and if all fees or penalties due and payable on the facility 24 to the department pursuant to P.L.1986, c.102 have either been paid or 25 the nature or the amount of the fee or penalty is being contested in 26 accordance with law. 27 b. The authority may deny an application for financial assistance, and 28 any award of financial assistance may be recoverable by the authority, 29 upon a finding that: 30 (1) in the case of financial assistance awarded for a remediation, the 31 discharge was proximately caused by the applicant's knowing conduct; 32 (2) in the case of financial assistance awarded for a remediation, the 33 discharge was proximately caused or exacerbated by knowing conduct by 34 the applicant with regard to any lawful requirement applicable to 35 petroleum underground storage tanks intended to prevent, or to facilitate 36 the early detection of, the discharge; 37 (3) the applicant failed to commence or complete a remediation, 38 closure, or an upgrade for which an award of financial assistance was 39 made within the time required by the department in accordance with the 40 applicable rules and regulations, within the time prescribed in an 41 administrative order, an administrative consent agreement, a memorandum 42 of agreement, or a court order; or 43 (4) the applicant provided false information or withheld information 44 on a loan or grant application, or other relevant information required to 45 be submitted to the authority, on any matter that would otherwise render 46 the applicant ineligible for financial assistance from the fund, that would ACS for A2376 FELICE, RUSSO 5 1 alter the priority of the applicant to receive financial assistance from the 2 fund, that resulted in the applicant receiving a larger grant or loan award 3 than the applicant would otherwise be eligible, or that resulted in 4 payments from the fund in excess of the actual eligible project costs 5 incurred by the applicant or the amount to which the applicant is legally 6 eligible. 7 Nothing in this subsection shall be construed to require the authority 8 to undertake an investigation or make any findings concerning the conduct 9 described in this subsection. 10 c. An application for financial assistance from the fund for an upgrade 11 or closure of a regulated tank shall include all regulated tanks at the 12 facility for which the applicant is seeking financial assistance. Once 13 financial assistance for an upgrade, closure or a remediation is awarded 14 for a facility, no additional award of financial assistance may be made for 15 that facility. However, if an applicant discovers while performing upgrade 16 or closure activities that a remediation is necessary at the site of a facility, 17 and if financial assistance was previously awarded for that site only for an 18 upgrade or closure of a regulated tank, the applicant may amend his 19 application and apply for financial assistance for the required remediation 20 subject to the limitations enumerated in section 5 of this act. An 21 application for financial assistance for an upgrade or closure of a regulated 22 tank shall be conditioned upon the applicant agreeing to perform, at the 23 time of the upgrade or closure, any remediation necessary as a result of a 24 discharge from the regulated tank and commencement of the remediation 25 within the time prescribed and in accordance with the rules and 26 regulations of the department. 27 d. Except as provided below, no financial assistance for upgrade or 28 closure shall be awarded for any regulated tank required to meet the 29 upgrade or closure requirements pursuant to 42 U.S.C. s.6991 et seq. or 30 P.L.1986, c.102 (C.58:10A-21 et seq.), or for the remediation of a 31 discharge from any such regulated tank except as provided in subsection 32 c. of this section, unless the application is filed with the authority prior to 33 January 1, 1999 and the application is complete and the application fee is 34 received by August 1, 1999. No financial assistance for upgrade or 35 closure shall be awarded for any underground storage tank with a capacity 36 of over 2,000 gallons used to store heating oil for onsite consumption in 37 a nonresidential building required to be upgraded pursuant to P.L.1986, 38 c.102 (C.58:10A-21 et seq.) but not pursuant to 42 U.S.C. s.6991 et seq. 39 or for the remediation of a discharge from any such regulated tank except 40 as provided in subsection c. of this section, unless the application is filed 41 with the authority prior to August 31, 1999 and the application is 42 complete and the application fee is received by March 31, 2000. 43 e. The date of occurrence of a discharge shall not affect eligibility for 44 financial assistance from the fund. Except for a preliminary assessment or 45 a site investigation performed after the effective date of P.L.1997, c.235 46 (C.58:10A-37.1 et seq.), and except as provided in [subsection] ACS for A2376 FELICE, RUSSO 6 1 subsections g. and h. of this section, no award of financial assistance shall 2 be made from the fund for the otherwise eligible project costs of a 3 remediation, closure, or an upgrade, or parts thereof, completed prior to 4 an award of financial assistance from the fund. 5 f. No financial assistance may be awarded from the fund for the 6 remediation of a discharge from a petroleum underground storage tank if 7 financial assistance from the Hazardous Discharge Site Remediation Fund 8 established pursuant to section 26 of P.L.1993, c.139 (C.58:10B-4) has 9 previously been made for a remediation at that site as a result of a 10 discharge from that petroleum underground storage tank. No financial 11 assistance may be awarded from the fund for the remediation of a 12 discharge from a petroleum underground storage tank if the discharge 13 began subsequent to the completion of an upgrade of that petroleum 14 underground storage tank, which upgrade was intended to meet all 15 applicable upgrade regulations of the department, no matter when the 16 upgrade was performed. 17 g. Notwithstanding any provision of P.L.1997, c.235 (C.58:10A-37.1 18 et seq.), where an eligible owner or operator has filed an application for 19 financial assistance from the fund, and there are either insufficient monies 20 in the fund or the authority has not yet acted upon the application or 21 awarded the financial assistance, the eligible owner or operator may 22 expend its own funds for the upgrade, closure, or remediation, and upon 23 approval of the application, the authority shall award the financial 24 assistance as a reimbursement of the monies expended for eligible project 25 costs. 26 h. Notwithstanding any provision to the contrary of P.L.1997, c.235 27 (C.58:10A-37.1 et seq.), if an applicant has expended the applicant's own 28 funds on a remediation prior to filing an application for financial assistance 29 from the fund for the eligible project costs of the remediation, the 30 authority, upon approval of the application, may make a grant from the 31 fund pursuant to paragraph (1) of subsection c. of section 5 of P.L.1997, 32 c.235 (C.58:10A-37.5) to reimburse the eligible owner or operator for the 33 eligible project costs of the remediation. 34 (cf: P.L.1999, c.89, s.3) 35 36 3. This act shall take effect immediately and section 2 shall be 37 retroactive to January 1, 2000. ASSEMBLY SOLID AND HAZARDOUS WASTE COMMITTEE STATEMENT TO ASSEMBLY COMMITTEE SUBSTITUTE FOR ASSEMBLY, No. 2376 STATE OF NEW JERSEY DATED: NOVEMBER 13, 2000 The Assembly Solid and Hazardous Waste Committee favorably reports an Assembly Committee Substitute for Assembly Bill No. 2376. The Assembly Committee Substitute for Assembly Bill No. 2376 would delay until March 31, 2004 the implementation of a limit on the proportion of financial assistance from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund that can be awarded in the form of grants. The law that established the underground storage tank fund provides that the amount of financial assistance from the Fund that may be awarded as grants cannot exceed one third of the total annual amount of financial assistance awarded, but delays implementation of this limit until March 31, 2000. As of January 2000, however, the applications for grants exceeded the total amount of applications for loans. Therefore, the substitute bill would postpone implementation of the cap to assure that the available funds may be awarded. In addition, the substitute bill revises a current prohibition against the award of reimbursement for prior expenditures to correct storage tank problems by permitting such reimbursements in the case of prior expenditures for tank remediation measures by individuals and small businesses meeting the qualifications for grants from the fund. The Assembly Committee Substitute for Assembly Bill No. 2376 is identical to Senate Bill No. 1173 (1R). ASSEMBLY APPROPRIATIONS COMMITTEE STATEMENT TO ASSEMBLY COMMITTEE SUBSTITUTE FOR ASSEMBLY, No. 2376 STATE OF NEW JERSEY DATED: DECEMBER 7, 2000 The Assembly Appropriations Committee reports favorably Assembly Bill No. 2376 (ACS). Assembly Bill No. 2376 (ACS) delays until March 31, 2004 the implementation of a limit on the proportion of financial assistance from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund that can be awarded in the form of grants. The law that established the underground storage tank fund provides that the amount of financial assistance from the Fund that may be awarded as grants cannot exceed one third of the total annual amount of financial assistance awarded, but delays implementation of this limit until March 31, 2000. As of January 2000, however, the applications for grants exceeded the total amount of applications for loans. Therefore, the bill postpones implementation of the cap to assure that the available funds may be awarded. In addition, the bill revises a current prohibition against the award of reimbursement for prior expenditures to correct storage tank problems by permitting such reimbursements in the case of prior expenditures for tank remediation measures by individuals and small businesses meeting the qualifications for grants from the fund. As reported, the bill is identical to Senate Bill No. 1173 (1R), as also reported by the committee. FISCAL IMPACT: The legislation delays the cap on grants from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. There will be no fiscal impact on State funds nor on the availability of monies for both loans and grants awarded from the fund. LEGISLATIVE FISCAL ESTIMATE ASSEMBLY COMMITTEE SUBSTITUTE FOR ASSEMBLY, No. 2376 STATE OF NEW JERSEY 209th LEGISLATURE DATED: DECEMBER 15, 2000 SUMMARY Synopsis: Delays implementation of cap on grants from Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund; authorizes reimbursement grants for remediation costs. Type of Impact: Lowers future balance of the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. Agencies Affected: N.J. Economic Development Authority. Office of Legislative Services Estimate Fiscal Impact Year 1 Year 2 Year 3 State Cost None None None ! The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund awards grants and loans to owners of underground storage tanks to help them comply with State and federally-mandated upgrade and remediation projects. Grants are awarded to applicants who prove financial hardship. ! The Closure Fund is supported by Corporation Business Tax revenues annually dedicated for this purpose pursuant to a constitutional amendment approved in 1996. Approximately $20 million is dedicated annually to the Closure Fund. ! The committee substitute extends the period, under which an unlimited number of grants may be awarded, to March 31, 2004. At present, grant awards may not total more than one-third of the total annual amount of financial assistance awarded. The committee substitute also allows remediation costs incurred prior to a grant application to be eligible for grant reimbursement. ! The Office of Legislative Services (OLS) estimates that the committee substitute will have no fiscal impact on the General Fund, but will affect the Closure Fund's future balance by awarding more grants than loans during the period when the grant/loan allocation cap is suspended. Office of Legislative Services Legislative Budget and Finance Office State House Annex Phone (609) 292-8030 P.O. Box 068 Fax (609) 777-2442 Trenton, New Jersey 08625 www.njleg.state.nj.us ACS for A2376 2 BILL DESCRIPTION Assembly Committee Substitute for Assembly Bill No. 2376 of 2000 temporarily removes the limit on the total amount of grant money that may be made available from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund by extending the waiver period to March 31, 2004. The previous waiver period was January 1, 1999 to March 31, 2000. Notwithstanding this waiver, current law requires that the total annual amount of financial assistance that may be awarded as grants (as opposed to loans) from the Fund be no more than one-third of the total annual amount of financial assistance awarded. However, as of January, 2000, applications for grants had significantly exceeded applications for loans. The committee substitute would therefore ensure that available funds could be awarded to all (or at least a greater number of) eligible applicants who apply for grants by March 31, 2004. The committee substitute also amends a current prohibition against awarding grants that reimburse applicants for prior expenditures to correct storage tank problems. The committee substitute would permit such reimbursements for tank remediation measures paid by individuals and small businesses who otherwise qualify for grants from the Fund. The Fund was created by P.L. 1997, c.235, as amended, and is supported by constitutionally dedicated revenues from the Corporation Business Tax. This assistance program, as administered by the N.J. Economic Development Authority (with technical assistance from the Department of Environmental Protection), provides grants and loans to owners of underground storage tanks for State and federally-mandated upgrades and remediation projects. Successful applicants for grants must prove financial hardship in meeting compliance measures. FISCAL ANALYSIS EXECUTIVE BRANCH None received. OFFICE OF LEGISLATIVE SERVICES The Office of Legislative Services (OLS) estimates that the committee substitute's enactment will have no fiscal impact on the General Fund because the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund is primarily supported by an annual dedication of revenues generated from the Corporation Business Tax (CBT). This allocation is part of the annual 4 percent constitutional dedication of total CBT collections for environmental purposes. With respect to the Closure Fund, the OLS estimates that the removal of the cap on grants awarded through March 31, 2004 will lower the available, long-term balance of the Fund but not significantly affect the availability of loan monies. This estimate is based on statements made by the Economic Development Authority during committee hearings on the bill in which it indicated that the Fund had sufficient balances to accommodate all applicants for both grants and loans during the designated time period in which grant award restrictions are waived. While this may be true, the OLS estimates that the decrease in loans awarded during this period will also cause a corresponding decrease in loan repayments, thus affecting future Fund balances. In addition, the lower demand for loans may be exacerbated by the committee substitute's provision to expand eligible reimbursement costs than can be covered by grants. ACS for A2376 3 Section: Environment, Agriculture, Energy and Natural Resources Analyst: Richard M. Handelman Senior Fiscal Analyst Approved: Alan R. Kooney Legislative Budget and Finance Officer This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note. This fiscal estimate has been prepared pursuant to P.L.1980, c.67. §3 - Note P.L. 2001, CHAPTER 22, approved February 2, 2001 Senate, No. 1173 (First Reprint) 1 AN ACT concerning financial assistance for underground storage 2 tanks, and amending P.L.1997, c.235. 3 4 BE IT ENACTED by the Senate and General Assembly of the State 5 of New Jersey: 6 7 1. Section 5 of P.L.1997, c.235 (C.58:10A-37.5) is amended to 8 read as follows: 9 5. a. The authority may award financial assistance from the fund 10 to an eligible owner or operator in the form of a loan or a conditional 11 hardship grant as provided in this section. An award of financial 12 assistance, either as a loan or a grant, or a combination of both, may, 13 upon application therefor, be for 100% of the eligible project costs. 14 However, a loan that any applicant may receive from the fund for an 15 upgrade, remediation, or closure, or any combination thereof, for any 16 one facility, may not exceed $1,000,000 and a grant that any applicant 17 may receive from the fund for any one facility, may not exceed 18 $250,000. The total amount of financial assistance awarded as grants 19 in any one year may not exceed one third of the total amount of 20 financial assistance awarded in that year except that this limitation 21 upon the award of grants shall not apply to financial assistance 22 awarded between January 1, 1999 and [March 31, 2000] 1[March 31, 23 2001] March 31, 20041. 24 b. A public entity applying for financial assistance from the fund 25 may only be awarded financial assistance in the form of an interest free 26 loan. 27 c. An applicant, other than a public entity, may apply for and 28 receive a conditional hardship grant as provided in paragraph (1) of 29 this subsection, or a loan for an upgrade, closure, or remediation as 30 provided in paragraph (2) of this subsection. Financial assistance 31 awarded an applicant pursuant to this subsection may consist entirely 32 of a conditional hardship grant, a loan for an upgrade, or loan for a 33 closure, or a loan for a remediation, or any combination thereof, 34 except that the total amount of the award of financial assistance shall 35 be subject to the per facility dollar limitation enumerated in subsection 36 a. of this section. Notwithstanding any other provision of this 37 subsection to the contrary, no tax exempt, nonprofit organization, 38 corporation, or association shall be awarded a conditional hardship 39 grant pursuant to paragraph (1) of this subsection. 40 (1) A conditional hardship grant for eligible project costs of an EXPLANATION - Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law. Matter underlined thus is new matter. Matter enclosed in superscript numerals has been adopted as follows: 1 Senate SBA committee amendments adopted October 19, 2000. S1173 [1R] 2 1 upgrade, closure or remediation shall be awarded by the authority 2 based upon a finding of eligibility and financial hardship and upon a 3 finding that the applicant meets the criteria set forth in this act. 4 In order to be eligible for a conditional hardship grant, the applicant 5 shall have owned or operated the subject petroleum underground 6 storage tank as of December 1, 1996 and continually thereafter or shall 7 have inherited the property from a person who owned the petroleum 8 underground storage tank as of that date. No applicant shall be 9 eligible for a conditional hardship grant if the applicant has a taxable 10 income of more than $100,000 or a net worth, exclusive of the 11 applicant's primary residence, of over $100,000. 12 A finding of financial hardship by the authority shall be based upon 13 a determination that an applicant cannot reasonably be expected to 14 repay all or a portion of the eligible project costs if the financial 15 assistance were to be awarded as a loan. The amount of an award of 16 a conditional hardship grant shall be the amount of that portion of the 17 eligible project costs the authority determines the applicant cannot 18 reasonably be expected to repay. 19 In making a finding of financial hardship for an application for the 20 upgrade, closure, or remediation of a petroleum underground storage 21 tank, where the petroleum underground storage tank is a part of the 22 business property of the owner, the authority shall base its finding 23 upon the cash flow of the applicant's business, whether or not any part 24 of the applicant's business is related to the ownership or operation of 25 that petroleum underground storage tank. In making a finding of 26 financial hardship for an application for the upgrade or remediation of 27 a petroleum underground storage tank, where the petroleum 28 underground storage tank is not a part of the business property of the 29 owner, the authority shall base its finding upon the applicant's taxable 30 income in the year prior to the date of the application being submitted. 31 If the authority awards a conditional hardship grant in combination 32 with a loan pursuant to this subsection, the authority shall release to 33 the applicant the loan monies prior to the release of the conditional 34 hardship grant monies. 35 Conditional hardship grants awarded to an applicant shall be subject 36 to the lien provisions enumerated in section 16 of P.L.1997, c.235 37 (C.58:10A-37.16). 38 (2) A loan to an eligible owner or operator for the eligible project 39 costs of an upgrade, closure, or remediation shall be awarded by the 40 authority only upon a finding that the applicant other than a public 41 entity is able to repay the amount of the loan. 42 In making a finding of an applicant's ability to repay a loan for the 43 upgrade, closure, and remediation of a regulated tank, or for the 44 remediation of a discharge from a petroleum underground storage 45 tank, the authority shall base its finding, as applicable, upon the cash 46 flow of the applicant's business, the applicant's taxable income and the S1173 [1R] 3 1 applicant's personal and business assets, except that the authority may 2 not consider the applicant's primary residence as collateral, except that 3 the authority may consider the applicant's primary residence as 4 collateral with the permission of the applicant or where the subject 5 petroleum underground storage tank or regulated tank is located at the 6 primary residence. 7 d. The authority shall, where applicable, require an applicant 8 applying for financial assistance from the fund to submit to the 9 authority the financial statements of the applicant's business for three 10 years prior to the date of the application, the most recent interim 11 financial statement for the year of the application, the applicant's 12 federal income tax returns, or other relevant documentation. 13 e. Nothing in this section is intended to alter the priority or criteria 14 for awarding financial assistance established pursuant to section 4 of 15 P.L.1997, c.235 (C.58:10A-37.4). 16 f. An eligible owner or operator may only be awarded that amount 17 of financial assistance issued as a loan for which the applicant 18 demonstrates he could not qualify for and obtain as a commercial loan. 19 The provisions of this subsection shall not apply to an owner or 20 operator or petroleum underground storage tank used to store heating 21 oil for onsite consumption in a residential building. 22 (cf: P.L.1999, c.89, s.1) 23 24 12. Section 7 of P.L.1997, c.235 (C.58:10A-37.7) is amended to 25 read as follows: 26 7. a. The authority shall award financial assistance to an owner or 27 operator of a facility only if the facility is properly registered with the 28 department pursuant to section 3 of P.L.1986, c.102 (C.58:10A-23), 29 where applicable, and if all fees or penalties due and payable on the 30 facility to the department pursuant to P.L.1986, c.102 have either been 31 paid or the nature or the amount of the fee or penalty is being 32 contested in accordance with law. 33 b. The authority may deny an application for financial assistance, 34 and any award of financial assistance may be recoverable by the 35 authority, upon a finding that: 36 (1) in the case of financial assistance awarded for a remediation, 37 the discharge was proximately caused by the applicant's knowing 38 conduct; 39 (2) in the case of financial assistance awarded for a remediation, 40 the discharge was proximately caused or exacerbated by knowing 41 conduct by the applicant with regard to any lawful requirement 42 applicable to petroleum underground storage tanks intended to 43 prevent, or to facilitate the early detection of, the discharge; 44 (3) the applicant failed to commence or complete a remediation, 45 closure, or an upgrade for which an award of financial assistance was 46 made within the time required by the department in accordance with S1173 [1R] 4 1 the applicable rules and regulations, within the time prescribed in an 2 administrative order, an administrative consent agreement, a 3 memorandum of agreement, or a court order; or 4 (4) the applicant provided false information or withheld 5 information on a loan or grant application, or other relevant 6 information required to be submitted to the authority, on any matter 7 that would otherwise render the applicant ineligible for financial 8 assistance from the fund, that would alter the priority of the applicant 9 to receive financial assistance from the fund, that resulted in the 10 applicant receiving a larger grant or loan award than the applicant 11 would otherwise be eligible, or that resulted in payments from the fund 12 in excess of the actual eligible project costs incurred by the applicant 13 or the amount to which the applicant is legally eligible. 14 Nothing in this subsection shall be construed to require the 15 authority to undertake an investigation or make any findings 16 concerning the conduct described in this subsection. 17 c. An application for financial assistance from the fund for an 18 upgrade or closure of a regulated tank shall include all regulated tanks 19 at the facility for which the applicant is seeking financial assistance. 20 Once financial assistance for an upgrade, closure or a remediation is 21 awarded for a facility, no additional award of financial assistance may 22 be made for that facility. However, if an applicant discovers while 23 performing upgrade or closure activities that a remediation is 24 necessary at the site of a facility, and if financial assistance was 25 previously awarded for that site only for an upgrade or closure of a 26 regulated tank, the applicant may amend his application and apply for 27 financial assistance for the required remediation subject to the 28 limitations enumerated in section 5 of this act. An application for 29 financial assistance for an upgrade or closure of a regulated tank shall 30 be conditioned upon the applicant agreeing to perform, at the time of 31 the upgrade or closure, any remediation necessary as a result of a 32 discharge from the regulated tank and commencement of the 33 remediation within the time prescribed and in accordance with the 34 rules and regulations of the department. 35 d. Except as provided below, no financial assistance for upgrade 36 or closure shall be awarded for any regulated tank required to meet the 37 upgrade or closure requirements pursuant to 42 U.S.C. s.6991 et seq. 38 or P.L.1986, c.102 (C.58:10A-21 et seq.), or for the remediation of a 39 discharge from any such regulated tank except as provided in 40 subsection c. of this section, unless the application is filed with the 41 authority prior to January 1, 1999 and the application is complete and 42 the application fee is received by August 1, 1999. No financial 43 assistance for upgrade or closure shall be awarded for any 44 underground storage tank with a capacity of over 2,000 gallons used 45 to store heating oil for onsite consumption in a nonresidential building 46 required to be upgraded pursuant to P.L.1986, c.102 (C.58:10A-21 et 47 seq.) but not pursuant to 42 U.S.C. s.6991 et seq. or for the S1173 [1R] 5 1 remediation of a discharge from any such regulated tank except as 2 provided in subsection c. of this section, unless the application is filed 3 with the authority prior to August 31, 1999 and the application is 4 complete and the application fee is received by March 31, 2000. 5 e. The date of occurrence of a discharge shall not affect eligibility 6 for financial assistance from the fund. Except for a preliminary 7 assessment or a site investigation performed after the effective date of 8 P.L.1997, c.235 (C.58:10A-37.1 et seq.), and except as provided in 9 [subsection] subsections g. and h. of this section, no award of 10 financial assistance shall be made from the fund for the otherwise 11 eligible project costs of a remediation, closure, or an upgrade, or parts 12 thereof, completed prior to an award of financial assistance from the 13 fund. 14 f. No financial assistance may be awarded from the fund for the 15 remediation of a discharge from a petroleum underground storage tank 16 if financial assistance from the Hazardous Discharge Site Remediation 17 Fund established pursuant to section 26 of P.L.1993, c.139 18 (C.58:10B-4) has previously been made for a remediation at that site 19 as a result of a discharge from that petroleum underground storage 20 tank. No financial assistance may be awarded from the fund for the 21 remediation of a discharge from a petroleum underground storage tank 22 if the discharge began subsequent to the completion of an upgrade of 23 that petroleum underground storage tank, which upgrade was intended 24 to meet all applicable upgrade regulations of the department, no matter 25 when the upgrade was performed. 26 g. Notwithstanding any provision of P.L.1997, c.235 27 (C.58:10A-37.1 et seq.), where an eligible owner or operator has filed 28 an application for financial assistance from the fund, and there are 29 either insufficient monies in the fund or the authority has not yet acted 30 upon the application or awarded the financial assistance, the eligible 31 owner or operator may expend its own funds for the upgrade, closure, 32 or remediation, and upon approval of the application, the authority 33 shall award the financial assistance as a reimbursement of the monies 34 expended for eligible project costs. 35 h. Notwithstanding any provision to the contrary of P.L.1997, 36 c.235 (C.58:10A-37.1 et seq.), if an applicant has expended the 37 applicant's own funds on a remediation prior to filing an application 38 for financial assistance from the fund for the eligible project costs of 39 the remediation, the authority, upon approval of the application, may 40 make a grant from the fund pursuant to paragraph (1) of subsection c. 41 of section 5 of P.L.1997, c.235 (C.58:10A-37.5) to reimburse the 42 eligible owner or operator for the eligible project costs of the 43 remediation.1 44 (cf: P.L.1999, c.89, s.3) 45 46 1[2.] 3.1 This act shall take effect immediately 1and section 2 shall 47 be retroactive to January 1, 20001. S1173 [1R] 6 1 2 3 Delays implementation of cap on grants from Petroleum Underground 4 Storage Tank Remediation, Upgrade and Closure Fund; authorizes 5 reimbursement grants for remediation costs. CHAPTER 22 AN ACT concerning financial assistance for underground storage tanks, and amending P.L.1997, c.235. BE IT ENACTED by the Senate and General Assembly of the State of New Jersey: 1. Section 5 of P.L.1997, c.235 (C.58:10A-37.5) is amended to read as follows: C.58:10A-37.5 Awarding of financial assistance. 5. a. The authority may award financial assistance from the fund to an eligible owner or operator in the form of a loan or a conditional hardship grant as provided in this section. An award of financial assistance, either as a loan or a grant, or a combination of both, may, upon application therefor, be for 100% of the eligible project costs. However, a loan that any applicant may receive from the fund for an upgrade, remediation, or closure, or any combination thereof, for any one facility, may not exceed $1,000,000 and a grant that any applicant may receive from the fund for any one facility, may not exceed $250,000. The total amount of financial assistance awarded as grants in any one year may not exceed one third of the total amount of financial assistance awarded in that year except that this limitation upon the award of grants shall not apply to financial assistance awarded between January 1, 1999 and March 31, 2004. b. A public entity applying for financial assistance from the fund may only be awarded financial assistance in the form of an interest free loan. c. An applicant, other than a public entity, may apply for and receive a conditional hardship grant as provided in paragraph (1) of this subsection, or a loan for an upgrade, closure, or remediation as provided in paragraph (2) of this subsection. Financial assistance awarded an applicant pursuant to this subsection may consist entirely of a conditional hardship grant, a loan for an upgrade, or loan for a closure, or a loan for a remediation, or any combination thereof, except that the total amount of the award of financial assistance shall be subject to the per facility dollar limitation enumerated in subsection a. of this section. Notwithstanding any other provision of this subsection to the contrary, no tax exempt, nonprofit organization, corporation, or association shall be awarded a conditional hardship grant pursuant to paragraph (1) of this subsection. (1) A conditional hardship grant for eligible project costs of an upgrade, closure or remediation shall be awarded by the authority based upon a finding of eligibility and financial hardship and upon a finding that the applicant meets the criteria set forth in this act. In order to be eligible for a conditional hardship grant, the applicant shall have owned or operated the subject petroleum underground storage tank as of December 1, 1996 and continually thereafter or shall have inherited the property from a person who owned the petroleum underground storage tank as of that date. No applicant shall be eligible for a conditional hardship grant if the applicant has a taxable income of more than $100,000 or a net worth, exclusive of the applicant's primary residence, of over $100,000. A finding of financial hardship by the authority shall be based upon a determination that an applicant cannot reasonably be expected to repay all or a portion of the eligible project costs if the financial assistance were to be awarded as a loan. The amount of an award of a conditional hardship grant shall be the amount of that portion of the eligible project costs the authority determines the applicant cannot reasonably be expected to repay. In making a finding of financial hardship for an application for the upgrade, closure, or remediation of a petroleum underground storage tank, where the petroleum underground storage tank is a part of the business property of the owner, the authority shall base its finding upon the cash flow of the applicant's business, whether or not any part of the applicant's business is related to the ownership or operation of that petroleum underground storage tank. In making a finding of financial hardship for an application for the upgrade or remediation of a petroleum underground storage tank, where the petroleum underground storage tank is not a part of the business property of the owner, the authority shall base its finding upon the applicant's taxable income in the year prior to the date of the application being submitted. If the authority awards a conditional hardship grant in combination with a loan pursuant to this subsection, the authority shall release to the applicant the loan monies prior to the release of the conditional hardship grant monies. P.L. 2001, CHAPTER 22 2 Conditional hardship grants awarded to an applicant shall be subject to the lien provisions enumerated in section 16 of P.L.1997, c.235 (C.58:10A-37.16). (2) A loan to an eligible owner or operator for the eligible project costs of an upgrade, closure, or remediation shall be awarded by the authority only upon a finding that the applicant other than a public entity is able to repay the amount of the loan. In making a finding of an applicant's ability to repay a loan for the upgrade, closure, and remediation of a regulated tank, or for the remediation of a discharge from a petroleum underground storage tank, the authority shall base its finding, as applicable, upon the cash flow of the applicant's business, the applicant's taxable income and the applicant's personal and business assets, except that the authority may not consider the applicant's primary residence as collateral, except that the authority may consider the applicant's primary residence as collateral with the permission of the applicant or where the subject petroleum underground storage tank or regulated tank is located at the primary residence. d. The authority shall, where applicable, require an applicant applying for financial assistance from the fund to submit to the authority the financial statements of the applicant's business for three years prior to the date of the application, the most recent interim financial statement for the year of the application, the applicant's federal income tax returns, or other relevant documentation. e. Nothing in this section is intended to alter the priority or criteria for awarding financial assistance established pursuant to section 4 of P.L.1997, c.235 (C.58:10A-37.4). f. An eligible owner or operator may only be awarded that amount of financial assistance issued as a loan for which the applicant demonstrates he could not qualify for and obtain as a commercial loan. The provisions of this subsection shall not apply to an owner or operator or petroleum underground storage tank used to store heating oil for onsite consumption in a residential building. 2. Section 7 of P.L.1997, c.235 (C.58:10A-37.7) is amended to read as follows: C.58:10A-37.7 Conditions for awarding financial assistance. 7. a. The authority shall award financial assistance to an owner or operator of a facility only if the facility is properly registered with the department pursuant to section 3 of P.L.1986, c.102 (C.58:10A-23), where applicable, and if all fees or penalties due and payable on the facility to the department pursuant to P.L.1986, c.102 have either been paid or the nature or the amount of the fee or penalty is being contested in accordance with law. b. The authority may deny an application for financial assistance, and any award of financial assistance may be recoverable by the authority, upon a finding that: (1) in the case of financial assistance awarded for a remediation, the discharge was proximately caused by the applicant's knowing conduct; (2) in the case of financial assistance awarded for a remediation, the discharge was proximately caused or exacerbated by knowing conduct by the applicant with regard to any lawful requirement applicable to petroleum underground storage tanks intended to prevent, or to facilitate the early detection of, the discharge; (3) the applicant failed to commence or complete a remediation, closure, or an upgrade for which an award of financial assistance was made within the time required by the department in accordance with the applicable rules and regulations, within the time prescribed in an administrative order, an administrative consent agreement, a memorandum of agreement, or a court order; or (4) the applicant provided false information or withheld information on a loan or grant application, or other relevant information required to be submitted to the authority, on any matter that would otherwise render the applicant ineligible for financial assistance from the fund, that would alter the priority of the applicant to receive financial assistance from the fund, that resulted in the applicant receiving a larger grant or loan award than the applicant would otherwise be eligible, or that resulted in payments from the fund in excess of the actual eligible project costs incurred by the applicant or the amount to which the applicant is legally eligible. Nothing in this subsection shall be construed to require the authority to undertake an P.L. 2001, CHAPTER 22 3 investigation or make any findings concerning the conduct described in this subsection. c. An application for financial assistance from the fund for an upgrade or closure of a regulated tank shall include all regulated tanks at the facility for which the applicant is seeking financial assistance. Once financial assistance for an upgrade, closure or a remediation is awarded for a facility, no additional award of financial assistance may be made for that facility. However, if an applicant discovers while performing upgrade or closure activities that a remediation is necessary at the site of a facility, and if financial assistance was previously awarded for that site only for an upgrade or closure of a regulated tank, the applicant may amend his application and apply for financial assistance for the required remediation subject to the limitations enumerated in section 5 of this act. An application for financial assistance for an upgrade or closure of a regulated tank shall be conditioned upon the applicant agreeing to perform, at the time of the upgrade or closure, any remediation necessary as a result of a discharge from the regulated tank and commencement of the remediation within the time prescribed and in accordance with the rules and regulations of the department. d. Except as provided below, no financial assistance for upgrade or closure shall be awarded for any regulated tank required to meet the upgrade or closure requirements pursuant to 42 U.S.C. s.6991 et seq. or P.L.1986, c.102 (C.58:10A-21 et seq.), or for the remediation of a discharge from any such regulated tank except as provided in subsection c. of this section, unless the application is filed with the authority prior to January 1, 1999 and the application is complete and the application fee is received by August 1, 1999. No financial assistance for upgrade or closure shall be awarded for any underground storage tank with a capacity of over 2,000 gallons used to store heating oil for onsite consumption in a nonresidential building required to be upgraded pursuant to P.L.1986, c.102 (C.58:10A-21 et seq.) but not pursuant to 42 U.S.C. s.6991 et seq. or for the remediation of a discharge from any such regulated tank except as provided in subsection c. of this section, unless the application is filed with the authority prior to August 31, 1999 and the application is complete and the application fee is received by March 31, 2000. e. The date of occurrence of a discharge shall not affect eligibility for financial assistance from the fund. Except for a preliminary assessment or a site investigation performed after the effective date of P.L.1997, c.235 (C.58:10A-37.1 et seq.), and except as provided in subsections g. and h. of this section, no award of financial assistance shall be made from the fund for the otherwise eligible project costs of a remediation, closure, or an upgrade, or parts thereof, completed prior to an award of financial assistance from the fund. f. No financial assistance may be awarded from the fund for the remediation of a discharge from a petroleum underground storage tank if financial assistance from the Hazardous Discharge Site Remediation Fund established pursuant to section 26 of P.L.1993, c.139 (C.58:10B-4) has previously been made for a remediation at that site as a result of a discharge from that petroleum underground storage tank. No financial assistance may be awarded from the fund for the remediation of a discharge from a petroleum underground storage tank if the discharge began subsequent to the completion of an upgrade of that petroleum underground storage tank, which upgrade was intended to meet all applicable upgrade regulations of the department, no matter when the upgrade was performed. g. Notwithstanding any provision of P.L.1997, c.235 (C.58:10A-37.1 et seq.), where an eligible owner or operator has filed an application for financial assistance from the fund, and there are either insufficient monies in the fund or the authority has not yet acted upon the application or awarded the financial assistance, the eligible owner or operator may expend its own funds for the upgrade, closure, or remediation, and upon approval of the application, the authority shall award the financial assistance as a reimbursement of the monies expended for eligible project costs. h. Notwithstanding any provision to the contrary of P.L.1997, c.235 (C.58:10A-37.1 et seq.), if an applicant has expended the applicant's own funds on a remediation prior to filing an application for financial assistance from the fund for the eligible project costs of the remediation, the authority, upon approval of the application, may make a grant from the fund pursuant to paragraph (1) of subsection c. of section 5 of P.L.1997, c.235 (C.58:10A-37.5) to reimburse the eligible owner or operator for the eligible project costs of the remediation. P.L. 2001, CHAPTER 22 4 3. This act shall take effect immediately and section 2 shall be retroactive to January 1, 2000 Approved February 2, 2001. PO BOX 004 TRENTON, NJ 08625 Office of the Governor CONTACT: Jayne O’Connor NEWS RELEASE Steffanie Bell 609-777-2600 RELEASE: February 2 , 2001 Acting Gov. Donald T. DiFrancesco today signed the following legislation: S-173, sponsored by Senators McNamara (R-Bergen/Passaic) and Vitale (D-Middlesex) and Assemblymen Felice (R-Bergen/Passaic) and Russo (R-Bergen/Passaic) removes the cap on grants from the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. The legislation delays the implementation of a limit on the total amount of money that can be made available as grants until March 2004. The Underground Storage Tank Finance Act, established in 1997, was created to finance loans and grants for the removal or upgrade of regulated underground storage tanks and for the costs of remediation necessary due to discharge of petroleum from regulated tanks. Originally, no more than ten percent of the monies in the Fund could be annually distributed as grants. In 1999, it was increased to one-third for distribution of funds beginning in January 2000. Applications for grants continued to exceed applications for loans. As a result loan monies were not being used and projects were idle. This bill addresses the need to make sure projects are proceeding and underground tanks are being upgraded, closed or remediated in a timely manner. S-663, sponsored by Senator Bucco (R-Morris) and Assemblyman Zecker (R-Essex/Passaic), establishes registration requirements for qualified journeymen electricians. Specifically the legislation codifies the regulatory definition of qualified journeyman electrician and authorizes the Board of Examiners of Electrical Contractors to issue certificates of registration for a period of three years to qualified journeymen electricians. As a condition of registration renewal, a 10-hour course of study related to the most recent edition of the National Electrical Code must be completed. These course programs and the instructors who teach them will be approved by the Board. Continuing education requirements can be waived on an individual basis. Any qualified journeymen electrician identification card that has been issued before the effective date of this bill will be valid for one year following the bill's effective date.