The long-anticipated legislation has major backing from lawmakers and community groups. Despite business community opposition, stakeholders such as Covanta have expressed their support.
Stakeholders say a New Jersey bill that would significantly weigh environmental justice factors in a number of decisions around industrial projects is still likely to pass despite momentarily stalling in the state legislature. The legislation could affect new permits and renewals for facilities, with major implications for the waste and recycling industry.
The bill (S232) passed the state Senate by a vote of 22 to 14 in June. But after appearing all but certain to pass the Assembly in late July, lawmakers did not bring it to the floor for a vote.
If the bill passes, it would come despite opposition from many business stakeholders, who have said the legislation is vague with unclear impacts. Some members of the industry have also said they feel singled out, as the bill directly targets waste and recycling facilities, while also expressing support for certain components.
Both Covanta and Wheelabrator operate facilities in New Jersey and the National Waste and Recycling Association (NWRA) has been closely following the bill. Steve Changaris, vice president of NWRA’s Northeast region, said the organization has expressed its concerns about the bill’s broad scope, which could impact pre-existing facilities along with new projects, including any stemming from New Jersey’s new commercial organics diversion mandate.
“We all know that people have to be heard, and we want to incorporate their views into the decision-making,” Changaris said. But waste operators, he said, “just want to know what’s going to happen in the process.”
Despite such hesitations, sources largely agree the bill is likely to succeed barring any surprise hurdles. They cite momentum around the measure, which is backed by many lawmakers and members of low-income communities of color in the state, along with growing support for recent Black Lives Matter demonstrations.
A sweeping legislative effort
Attempts to create environmental justice legislation in New Jersey stretch back over a decade, with this latest bill getting farther than any prior attempt has before and set to become the strictest law of its kind nationwide according to stakeholders.
Under S232, the state Department of Environmental Protection (NJDEP) would have to consider the impacts to “overburdened communities” posed by certain new facilities, along with expansions of those facilities or renewals of major source permits. It would be effective 180 days from enactment.
The bill singles out any sites that are major sources of air pollution, along with “resource recovery” facilities or incinerators, landfills, transfer stations, sludge processing plants, and scrap metal facilities, as well as recycling facilities receiving at least 100 tons of recyclable material per day. Impacted communities are defined within census block groups with either 35% or more of households qualifying as low-income, at least 40% of residents being people of color, or at least 40% having reduced English proficiency. Estimates by lawmakers and various groups find around 300 of New Jersey’s 565 municipalities could have at least one community that falls into those categories.
Sites in those areas would need to prepare an environmental justice statement and transmit it to the relevant municipality 60 days prior to a public hearing. A decision on the site would be delayed for at least 45 days following the hearing, and the department would ultimately be free to deny a permit on environmental justice grounds.
Experts with knowledge of the process said the legislation could prevent the creation or continuation of a number of facilities, and even several supporters said it could hinder business efforts. Some estimated the environmental justice statement and public hearing process alone could cost around $50,000 or more, before accounting for other costs, including any operational expenses that would likely be much higher.
A last-minute holdup occurred on July 30 when Assembly Speaker Craig Coughlin did not bring the bill to the floor for a vote — seemingly due to labor pushback over the inclusion of permit renewals. Trade unions have expressed fears about the implications that measure could hold for jobs, according to reporting by Politico. In the days since, lawmakers have said they are working with those groups to address their concerns and that they still hope to pass the bill by Labor Day.
The bill has buy-in from impacted communities and environmental groups, as well as Gov. Phil Murphy who has taken the unusual step of publicly throwing his support behind the effort. Other prominent names have also endorsed it. Sen. Cory Booker called into a virtual July 20 environment and solid waste committee hearing to speak in support of the legislation from his car while en route to Washington, D.C.
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