On January 21, 2014, New Jersey Governor Christie signed into law Assembly Bill No. 4543, allowing NJDEP - New Jersey Department of Environmental Protection  to grant up to 2-year extensions for the completion of environmental “remedial investigations.” Under The Site Remediation Reform Act, remedial investigations are required to be completed by May 7, 2014. The extension option would in many cases obviate the need for the State’s “direct oversight” of non-complying cases.

The looming deadline applies to cases where contamination was identified, or should have been identified, on or before May 7, 1999. Major conditions of applicability for extensions include: (1) retention of a Licensed Site Remediation Professional (2) compliance with existing regulatory “mandatory time frames” (3) posting of a “remediation funding source” or “remediation trust fund” and (4) payment of all applicable fees and penalties. Responsible parties must also be in compliance with requirements addressing “initial receptor evaluations,” “immediate environmental concerns,” “light non-aqueous phase liquid interim remedial measure reports,” “preliminary assessment reports,” and “site investigation reports.”

Applications for extensions must be submitted by March 7, 2014. The State will then have 45 days to notify the applicant of its decision. If an extension is granted, NJDEP will be required to provide notice in the New Jersey Register and include the name and location of the site, the basis for the extension, and the length of the extension.

The ramifications of the new law are widespread, particularly with respect to contractual arrangements and due diligence deadlines affecting real estate and corporate transactional matters, as well as landlord-tenant matters.