N.J. Admin. Code § 19:31Z-1.2

Current through Register Vol. 56, No. 12, June 17, 2024
Section 19:31Z-1.2 - Definitions

The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

"Act" means the "New Jersey Brownfields Redevelopment Incentive Program Act" sections 9 through 19 at P.L. 2020, c. 156, as amended by sections 9 through 19 at P.L. 2021, c. 160 (N.J.S.A. 34:1B-277 through 287).

"Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by, the developer. Control exists in all cases in which the entity is a member of a controlled group of corporations, as defined pursuant to the Internal Revenue Code of 1986 (26 U.S.C. § 1563), or the entity is an organization in a group of organizations under common control, as defined pursuant to the Internal Revenue Code of 1986 (26 U.S.C. § 414(c)).

"Authority" means the New Jersey Economic Development Authority established by N.J.S.A. 34:1B-4.

"Authorized agent of the developer" means the chief executive officer, or equivalent officer, for the North American operations of the developer.

"Board" means the Board of the New Jersey Economic Development Authority, established pursuant to N.J.S.A. 34:1B-4.

"Brownfield site" means any former or current commercial or industrial site that is currently vacant or under-utilized and on which there has been, or there is suspected to have been, a discharge of a contaminant, or on which there is contaminated building material.

"Building services" means any cleaning or routine building maintenance work, including, but not limited to, sweeping, vacuuming, floor cleaning, cleaning of rest rooms, collecting refuse or trash, window cleaning, securing, patrolling, or other work in connection with the care or securing of an existing building, including services typically provided by a door-attendant or concierge. "Building services" shall not include any skilled maintenance work, professional services, or other public work for which a contractor is required to pay the "prevailing wage," as defined in section 2 at P.L. 1963, c. 150 (N.J.S.A. 34:11-56.26).

"Contaminated building material" means components of a structure where abatement or removal of asbestos, or remediation of materials containing hazardous substances defined pursuant to section 3 at P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11b), is required by applicable Federal, State, or local rules or regulations.

"Contamination" or "contaminant" means any discharged hazardous substances, as defined pursuant to section 3 at P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11b), hazardous waste as defined pursuant to section 1 at P.L. 1976, c. 99 (N.J.S.A. 13:1E-38), pollutant as defined pursuant to section 3 at P.L. 1977, c. 74 (N.J.S.A. 58:10A-3), or contaminated building materials.

"Department" means the New Jersey Department of Environmental Protection.

"Developer" or "applicant" means any person that enters or proposes to enter into a redevelopment agreement with the Authority pursuant to the provisions at N.J.A.C. 19:31-27.9 and section 13 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-281), including, but not limited to, a lender that completes a redevelopment project, operates a redevelopment project, or completes and operates a redevelopment project.

"Director" means the Director of the Division of Taxation in the New Jersey Department of the Treasury.

"Discharge" means an action or omission defined as such pursuant to the Technical Requirements for Site Remediation rules, at N.J.A.C. 7:26E-1.8.

"Diverse" means being a historically under-served or under-represented identity within the following categories: race, ethnicity, gender, sexual orientation, disability status, educational attainment, veteran status, nation of origin, and language use.

"Equity" means developer-contributed capital that may consist of cash, deferred development fees, costs for project feasibility incurred within the 12 months prior to application, property value less any mortgages when the developer owns the site of the redevelopment project, and any other investment by the developer in the project, as deemed acceptable by the Authority. Property value shall be the lesser of either: the purchase price, provided the property was purchased pursuant to an arm's length transaction within 12 months of application, or the value as determined by a current appraisal acceptable to the Authority. Equity shall include Federal or local grants and tax credits. Equity shall not include State grants or tax credits.

"Government-restricted municipality" means a municipality in this State with a municipal revitalization index distress score of at least 75, that met the criteria for designation as an urban aid municipality in the 2019 State fiscal year, and that on January 7, 2021, the effective date of P.L. 2020, c. 156 (N.J.S.A. 34:1B-269 et seq.), is subject to financial restrictions imposed pursuant to the Municipal Stabilization and Recovery Act, P.L. 2016, c. 4 (N.J.S.A. 52:27BBBB-1 et seq.), or is restricted in its ability to levy property taxes on property in that municipality as a result of the State of New Jersey owning or controlling property representing at least 25 percent of the total land area of the municipality, or as a result of the Federal government of the United States owning or controlling at least 50 acres of the total land area of the municipality, which is dedicated as a national natural landmark.

"Labor harmony agreement" means an agreement between a business that serves as the owner or operator of a retail establishment or distribution center and one or more labor organizations, which requires for the duration of the agreement that: any participating labor organization and its members agree to refrain from picketing, work stoppages, boycotts, or other economic interference against the business; and the business agrees to maintain a neutral posture with respect to efforts of any participating labor organization to represent employees at an establishment or other unit in the retail establishment or distribution center, agrees to permit the labor organization to have access to the employees, and agrees to guarantee to the labor organization the right to obtain recognition as the exclusive collective bargaining representatives of the employees in an establishment or unit at the retail establishment or distribution center by demonstrating to the New Jersey State Board of Mediation, Division of Private Employment Dispute Settlement, or a mutually agreed upon, neutral, third-party, that a majority of workers in the unit have shown their preference for the labor organization to be their representative by signing authorization cards indicating their preference. The labor organization or organizations shall be from a list of labor organizations that have requested to be on the list and which the Commissioner of the Department of Labor and Workforce Development has determined represents substantial numbers of retail or distribution center employees in the State.

"Licensed or certified professional" means an individual who is licensed or certified in remediation or other activities that are not subject to the jurisdiction of the Site Remediation Reform Act, sections 1 through 29 at P.L. 2009, c. 60 (N.J.S.A. 58:10C-1 et seq.), including, but not limited to: contaminated building material abatement or removal; hazardous materials or waste disposal; building and structural remedial activities; or other infrastructure remedial activities. Such individuals may include, but are not limited to: a New Jersey licensed professional engineer, an Asbestos Hazard Emergency Response Act (AHERA) inspector, a New Jersey certified lead inspector, an industrial hygienist, or other appropriately qualified and licensed or certified professional.

"Licensed site remediation professional" or "LSRP" means an individual who is licensed by the Site Remediation Professional Licensing Board pursuant to section 7 at P.L. 2009, c. 60 (N.J.S.A. 58:10C-7) or the Department pursuant to section 12 at P.L. 2009, c. 60 (N.J.S.A. 58:10C-12).

"Minimum environmental and sustainability standards" means standards established by the Authority in accordance with the green building manual prepared by the Commissioner of the Department of Community Affairs pursuant to section 1 at P.L. 2007, c. 132 (N.J.S.A. 52:27D-130.6), regarding the use of renewable energy, energy-efficient technology, and non-renewable resources to reduce environmental degradation and encourage long-term cost reduction. The Authority shall publish these standards on its website.

"Program" means the Brownfields Redevelopment Incentive Program established by section 11 at P.L. 2020, c. 156, as amended by sections 5 through 10 at P.L. 2021, c. 160 (N.J.S.A. 34:1B-277.

"Project financing gap" means the part of the total cost of remediation, including reasonable and appropriate return on investment, that remains to be financed after all other sources of capital have been accounted for, including, but not limited to, developer contributed capital, which shall not be less than 20 percent of the total cost of remediation, and investor or financial entity capital or loans for which the developer, after making all good faith efforts to raise additional capital, certifies that additional capital cannot be raised from other sources; provided, however, that for a redevelopment project located in a government-restricted municipality, the developer-contributed capital shall not be less than 10 percent of the total cost of remediation.

"Qualified incentive tract" means either a population census tract having a poverty rate of 20 percent or more, or a census tract in which the median family income for the census tract does not exceed 80 percent of the greater of the Statewide median family income or the median family income of the metropolitan statistical area in which the census tract is situated.

"Reasonable and appropriate return on investment" means the discount rate at which the present value of the future cash flows of an investment is equal to the cost of the investment. For the purposes of the analysis of the reasonable and appropriate return on investment, an investment shall not include any Federal, State, or local tax credits.

"Redevelopment agreement" means an agreement between the Authority and a developer in accordance with N.J.A.C. 19:31Z-1.9 pursuant to which the developer agrees to perform any work or undertaking necessary for a redevelopment project, comprising of the remediation of a brownfield site, which is the site of the redevelopment project, and may involve the clearance, development or redevelopment, construction, reconstruction, or rehabilitation of any structure or improvement of commercial, industrial, or public structures or improvements within an area of land whereon a brownfield site is located.

"Redevelopment project" means a specific construction project or improvement undertaken, pursuant to the terms of a redevelopment agreement, by a developer within an area of land whereon a brownfield site is located. A redevelopment project may involve construction or improvement upon lands, buildings, improvements, or real and personal property, or any interest therein, including lands under water, riparian rights, space rights, and air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated, or improved. Redevelopment projects shall include improvements that are solely or primarily remediation related to the remediation of the site of the redevelopment project.

"Remediation" or "remediate" means all necessary actions to investigate and clean up or respond to any known, suspected, or threatened discharge of contaminants, including, as necessary, the preliminary assessment, site investigation, remedial investigation, and remedial action, or any portion thereof, as those terms are defined in section 23 at P.L. 1993, c. 139 (N.J.S.A. 58:10B-1); hazardous materials abatement; hazardous materials or waste disposal; building and structural remedial activities, including, but not limited to, demolition, asbestos abatement, polychlorinated biphenyl removal, contaminated wood or paint removal, or other infrastructure remedial activities. However, "remediation" or "remediate" shall not include the payment of compensation for damage to or loss of natural resources.

"Remediation costs" means all reasonable costs by the developer and any affiliate that are associated with the remediation of a contaminated site or other brownfield site, except: the cost of acquisition of the site at which the redevelopment project will be conducted; any costs incurred in financing the remediation, legal fees, incentive consultant fees; and Authority fees. Remediation costs may include required Department site remediation program fees and other Department permit fees. Remediation costs shall not include payment for penalties or violations. Remediation costs shall not include costs prior to application, except that remediation costs shall include costs for studies and surveys including, but not limited to, preliminary environmental assessments, environmental site investigations, and workplans incurred within the 24 months prior to date of application.

"Representative of the community" means being a heterogenous group that includes individuals sharing diverse identities with those found within the diverse population of a defined community no larger than the municipality(s) in which the redevelopment project is located.

"Response Action Outcome" or "RAO" has the meaning as defined by the Department in the Administrative Requirements for the Remediation of Contaminated Sites, N.J.A.C. 7:26C-1.3.

"Site of the redevelopment project" means the brownfield site at which the redevelopment project is located.

"Total cost of remediation" means any and all costs incurred for, and in connection with, the redevelopment project by the developer and any affiliate, until submission of the documents necessary for the issuance of certification of completion of remediation by the Department or upon such other event evidencing project completion as set forth in the redevelopment agreement. These costs may also include fees incurred for financing, penalties, and violations of the redevelopment project.

N.J. Admin. Code § 19:31Z-1.2

Recodified from 19:31-27.2 56 N.J.R. 807(a), effective 5/6/2024