ISRA Overview and Does It Apply To You?
New Jersey has almost 14,000 sites with known contamination from hazardous substances. New Jersey ISRA regulates the cleanup of many of these industrial sites.
Are you preparing to buy or sell industrial real estate? Will you be ceasing industrial operations? Are you wondering, does ISRA apply to me?
Learn more about ISRA here. You’ll see how to determine if the regulations apply to you.
What Is ISRA?
The New Jersey Industrial Site Recovery Act (ISRA) is a law that regulates hazardous waste cleanup. It places certain conditions on the transfer or closure of industrial property that may hold hazardous substances. The New Jersey Department of Environmental Protection (NJDEP) administers the ISRA.
The New Jersey Industrial Site Recovery Act has been in effect since 1983.
Which Businesses Does New Jersey Industrial Site Recover Act Cover?
The ISRA process starts by determining if the ISRA applies to your type of business. The New Jersey Industrial Site Recovery Act only applies to industrial establishments. The definition of industrial establishments has three parts.
A business must meet all three of these criteria to fall under The New Jersey Industrial Site Recovery Act.
1. NAICS Code
First, the business must have a specific North American Industry Classification System (NAICS) number. The federal government created the NAICS system to make collecting statistics easier. All companies have a NAICS number based on the nature of the business.
ISRA Appendix C lists the NAICS numbers that must follow The New Jersey Industrial Site Recovery Act regulations.
2. Time in Operation
Second, the business must have operated in New Jersey on or after December 31, 1983. This is the date that ISRA in New Jersey came into effect.
3. Presence of Hazardous Substances
Finally, the business operations must involve the storage or handling of hazardous substances or hazardous waste. The New Jersey Spill Compensation and Control Act defines a dangerous substance.
Which Events Trigger ISRA Compliance Requirements?
Several types of triggering events require a New Jersey Industrial Site Recovery Act filing. The most common transactions that initiate ISRA compliance are:
- Selling the property
- Selling the business
- Closing down the business
Determining if other types of transactions require ISRA compliance can be complicated. For example, a corporate reorganization or a stock transfer may be a triggering event.
Getting qualified legal advice is a good idea. You can avoid having your transaction stall at the last minute due to unexpected compliance requirements.
ISRA Compliance Exemptions
Businesses may qualify for an exemption from New Jersey ISRA. The law allows three types of exemptions.
De Minimis Quantity Exemption
Sites that hold or use only small amounts of hazardous materials may qualify for an exemption. The business must not have held or used more than:
- 500 lbs or 55 gallons of hazardous substances
- 220 gallons of hydraulic or lubricating oil
The business must not have gone beyond these limits at any one time during the owner or operator’s tenure.
Remediation in Progress Waiver
If a site has an ongoing remediation project under The New Jersey Industrial Site Recovery Act or a qualified site remediation professional, it usually doesn’t need a new ISRA filing. However, to qualify, the owner or operator must submit an ISRA Alternate Compliance Option form. A certified preliminary site assessment report is also necessary.
Regulated Underground Storage Tank Only Waiver
A property may qualify for an exemption if the only hazardous substances are in an underground storage tank (UST). This waiver may still apply even if a regulated UST has discharged. An ISRA Alternate Compliance Option form and a preliminary site assessment report are necessary for the waiver.
Determining if ISRA Applies to You
New Jersey ISRA applies to industrial establishments as defined by the law. If your business meets these criteria, you must determine if your proposed transaction triggers ISRA compliance. You should then check to see if you’re eligible for an exemption.
If The New Jersey Industrial Site Recovery Act applies and you don’t qualify for an exemption, you’ll need to start the ISRA process. Again, all American Environmental can help. Our services include site assessment and investigation as well as remediation.
Contact us today to learn more about how we can help you comply with The New Jersey Industrial Site Recovery Act.