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WEB EXCLUSIVE

NJEDA Speeds Approval of Brownfield Grants

New Jersey has sped up its approval process for grants up to $100,000 made under two brownfield-related programs.

The New Jersey Economic Development Authority (EDA) has taken steps to speed the approval process associated with grants made under the Hazardous Discharge Site Remediation (HDSR) Loan and Grant Program as well as the Petroleum Underground Storage Tank Remediation, Upgrade and Closure (PUST) Program. Both are administered by the EDA in conjunction with the New Jersey Department of Environmental Protection (DEP).

The EDA Board has approved the enhancements, which delegate authority to the chief executive officer or the senior vice president to approve grant awards up to $100,000 to any one grantee without Board approval. More than $112 million has been provided in HDSR grants and low-interest loans to enable municipalities and businesses to clean up brownfield properties and restore environmentally contaminated land to productive use. Another $177 million in grants and loans has been made available to businesses and homeowners to clean up, upgrade or close underground storage tanks.

"These changes will significantly reduce the time it takes for an applicant to receive a final determination on an application for assistance," says EDA Chief Executive Officer Caren S. Franzini. "We anticipate that processing time will be reduced from as long as 60 days to as little as 10 days."

Under the HDSR program, municipalities may qualify for up to $3 million per year in total grant and loan assistance for properties on which they own or hold a tax sale certificate and have a comprehensive plan or a realistic opportunity to develop within three years. Businesses may apply for low-interest loans up to $1 million.

Business owners/operators and homeowners also can obtain funding to clean up, upgrade or close underground storage tanks. Business owners/operators who have less than 10 petroleum storage tanks underground in New Jersey, have a net worth of less than $2 million and cannot obtain a commercial loan for all or a portion of the costs may qualify for 100% of the eligible project costs. Homeowners in need of remediation due to a discharge from a home-heating oil tank may also qualify for financing assistance.

The DEP first reviews applications to determine eligibility, reasonableness of costs, and the scope of work needed to investigate and remediate each site. The EDA manages the funds and makes grants or loans to projects the DEP determines are eligible.