New Jersey’s history as an industrial center has left alegacy of liabilities for real estate owners and developers. As a result, buyers and sellers ofa wide range of propertiesencounter serious environmental concerns, from leaking underground storage tanks to buried industrial waste, poor quality fill material, improper handling of hazardous materials, historic PCB usage and spills. The volume of contaminated sites coupled with increased demand for efficient cleanup has led to sweeping changes in the waysite remediation is handled throughout the state.
TheSite Remediation Reform Act (SRRA), which went into effect in 2009, shifted theresponsibilityforinitiat
A Pioneer in the LSRP Program
Novak was one of the firstindividuals to be issued an LSRP licensein New Jersey.“As transaction-based environmental consultants, our firm wasaccustomed to performing remediation and consulting services on a rapid basis to facilitate a deal,and wehad success interacting with the NJDEP on fast-turnaround projects,” Novak said. With multiple LSRPs on staff, he and his team haveclosed 147 LSRP matters with Response Action Outcome (RAO) letters. AESI has 327 LSRP projects in total, ranking it high among environmental firms statewide.
Approximately 60 percent of AESI’s workload is generated by environmental due diligence and soil and groundwater remediation services. The firm’sLSRPswork with clients to investigate and remediate properties, and Areas of Concern (AOCs) must achieve full compliance with the NJDEP Technical Requirements, multiple guidance documents andRemediation standards. Transaction speed is a key consideration, and AESI is committed to expediting site cleanup as quickly as possible without compromisingquality. “Helping our customers rapidly attain full compliance is our top priority,” noted Novak.
AESI LSRP services includesoil and groundwater remedial action permits, preliminary assessments, site investigations and remediation. One of the hallmarks ofthe firm’swork is the methodology it uses when strategizing a remediation plan that is both cost effective and timely for clients. “Issuance ofRAOs signals the work has been done for the NJDEP. Thisis what everyone wants;however,there are many ways to cleanup contamination while utilizing the NJDEP’s methods for closing sites.”
AESI’sWork Ranges fromIndustrial and CRE TransactionWork to Day Care Centers and Mixed-Use Residential Projects
The volume of AESI’s production reflects its location in Hudson County and the company’s focus on the state’s industrial and commercial real estate transaction market, according to Novak. “Most of our cases are triggered by environmental due diligence investigations,” he noted.
Cessation of activity, a sale or other change in ownership of an industrial property will often activate the Industrial Site Remediation Act (ISRA). AESI’s LSRPs take property owners through the process and prepare the required documents for submission to the NJDEP.
While many former industrial facilities are redeveloped as warehouses or distribution centers, just as manyalsobecomeresidential developments, parks, schoolsand day carefacilities. “Remediation of these sites is heavily regulatedand the workmust meetan extremely high standard,” said Novak.“AESI has helped transform several hundred industrial properties into residential apartment buildings, condominium complexes, day care centers, schools and other sensitive end-uses. Our team operatesclosely with the regulators to ensuresafe and clean spaces.”
Transit villages are a substantial source of workforAESIas well,under the LSRP program. Soil and groundwater contamination are common issues for residential or mixed-use development projects built along rail linesandon sites that historically served non-residential or industrial purposes.Remediationplansar
Streamlining the remediation process has provento be effective.From the time the LSRP program was fully implemented in 2012 to the end of 2015, NJDEP reported that the number of cases closed rose from 1,200 to 7,500. This number surpassed 10,000 in 2017 and is on pace to reach 12,000 this year.
“By utilizing the knowledge and expertise of environmental professionals, the NJDEP is returning contaminated sites to beneficial use and providing assurance to owners that the workmeetscomplex rules and regulations,” said Novak. “Most importantly, firms like AESI are helping toprotect our state’s natural resources andimprove the quality of life forbusinesses andresidents.”
