Establishes timeframe for adoption of, and requires public comment on, proposed annual economic benefits for certain solid waste facilities; authorizes residents to petition State to establish or adjust annual economic benefit.

A2263

ASSEMBLY, No. 2263

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblywoman ANDREA KATZ

District 8 (Atlantic and Burlington)

SYNOPSIS

���� Establishes timeframe for adoption of, and requires
public comment on, proposed annual economic benefits for certain solid waste
facilities; authorizes residents to petition State to establish or adjust
annual economic benefit.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning annual economic benefits for certain
solid waste facilities, and amending P.L.1975, c.326 and P.L.1987, c.449.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 19 of P.L.1975,
c.326 (C.13:1E-28) is amended to read as follows:

���� 19.� a.� Any municipality
within which a sanitary landfill facility is located pursuant to an adopted and
approved district solid waste management plan shall be entitled to an annual
economic benefit not less than the equivalent of $1.00 per ton of solids on all
solid waste accepted for disposal at the sanitary landfill facility during the
previous calendar year
,
as determined by the department.�

���� The owner or operator of the
sanitary landfill facility shall annually pay to the relevant municipality the
full amount due under this subsection
,
and each relevant municipality
[
is
]

shall be

empowered to anticipate this amount for the purposes of preparing its annual
budget.� For the purposes of calculating the payments, the owner or operator of
the sanitary landfill facility may, subject to the prior agreement of the
relevant municipality and the approval of the Department of Environmental
Protection, provide the municipality with any of the following benefits in
consideration for the use of land within its municipal boundaries as the
location of a sanitary landfill facility:�

���� (1)�� The receipt of annual
sums of money in lieu of taxes on the land used for the sanitary landfill
facility;�

���� (2)�� The exemption from all
fees and charges for the disposal of solid waste generated within its
boundaries;�

���� (3)�� The receipt of a lump
sum cash payment; or

���� (4)�� Any combination thereof.

���� b.��� (Deleted by amendment,
P.L.1994, c.27).

���� c.���� Every owner or operator
of a sanitary landfill facility required to make annual payments to a
municipality pursuant to subsection a. of this section may petition the
Department of Environmental Protection for an increase in its tariff which
reflects these payments. The department,
[
within
]

not more
than
60 days
[
of
]

after

the receipt of the petition, shall issue an appropriate order
stating

that these payments shall be passed along to the users of the sanitary landfill
facility as an automatic surcharge on any tariff filed with, and recorded by,
the department for the solid waste disposal operations of the facility.�

���� d.��� In issuing any order
required by
subsection c. of
this section, the Department of
Environmental Protection shall be exempt from

the provisions of R.S.48:2-21.�

����
e.���� Not more than 10
days after commencing negotiations pursuant to subsection a. of this section in
association with the

payment of an annual economic benefit, the
municipality shall provide written notice to the department of the date on
which negotiations were commenced.

����
f.���� Negotiations
undertaken pursuant to subsection a. of this section shall be completed not
more than 180 days after being commenced.� If negotiations cannot be completed
within the timeframe specified by this subsection, the parties may jointly
apply to the department for an extension of up to 180 days to complete the
negotiations.� The joint application shall identify the reasons why
negotiations were not completed within the initial 180-day timeframe required
by this subsection.� The department shall approve an application for extension,
submitted pursuant to this subsection, provided that there is no reasonable
basis for the commissioner to believe that the municipality or sanitary
landfill facility are acting in bad faith with respect to the negotiations.�
Notice of an extension authorized pursuant to this subsection shall be posted
on the Internet websites of the department and the municipality not later than
10 days after the extension is granted.

����
g.��� Not more than 10 days
after negotiations are completed pursuant to subsection f. of this section, and
before the proposed

annual economic

benefit
�
is submitted
to the department for approval pursuant to subsection a. of this section, the
municipality shall publish the proposed

annual economic

benefit

on its Internet website and provide a minimum 45-day period for public
comment on the proposed annual economic benefit.� Not more than 45 days after
the public comment period is closed, the municipality and sanitary landfill
facility shall consider the comments received and incorporate changes to the
proposed

annual economic

benefit, in accordance with those
comments, as is deemed by the parties to be appropriate.� Upon submission of
the proposed annual economic benefit

to the department for approval,
pursuant to subsection a. of this section, the municipality shall also transmit
the public comments to the department for consideration.
�

����
h.��� If a request for
extension, submitted pursuant to subsection f. of this section, is denied by
the department on the basis of bad faith negotiations undertaken by either
party, or if the parties otherwise cannot agree on the terms of the

annual
economic benefit

within the initial and extended timeframes provided by
subsection f. of this section, the department shall issue an order establishing

an annual economic

benefit in the municipality, as the commissioner
deems appropriate.� When establishing the

annual economic

benefit,
the commissioner shall consider, and shall incorporate to the greatest extent
possible, consistent with the other provisions of the order, any terms on which
the parties were able to reach agreement during the course of negotiations.

����
i.���� A resident of a
municipality within which a sanitary landfill facility is located may petition
the department for an order establishing or adjusting

an annual economic

benefit pursuant to this section.� The petition shall be presented in a form
and manner prescribed by the department and shall:� (1) indicate the level of
benefit that the petitioner believes should be imposed; (2) include supporting
information and documentation explaining why the proposed level of benefit is
both reasonable and necessary; and (3) include any other information required
by the department.� The department shall issue a decision on the petition no
later than 180 days after receipt thereof.

(cf: P.L.1994, c.27, s.1)

���� 2.��� Section 2 of P.L.1987,
c.449 (C.13:1E-28.1) is amended to read as follows:

���� 2.��� a.� Any municipality
within which a transfer station is located pursuant to an adopted and approved
district solid waste management plan shall be entitled to an annual economic
benefit to be paid or adjusted not less than quarterly in an amount established
by agreement with the owner or operator of the transfer station or by order of
the Board of Public Utilities, but not less than the equivalent of $0.50 per
ton of all solid waste accepted for transfer at the transfer station during the
1987 calendar year and each year thereafter.�

���� The owner or operator of the
transfer station shall, not less frequently than quarterly, pay to the relevant
municipality the full amount due under this subsection
,
and each
relevant municipality
[
is
]

shall be

empowered to anticipate this amount for the purposes of preparing its annual
budget.� For the purposes of calculating the payments, the owner or operator of
the transfer station may, subject to the prior agreement of the relevant
municipality and the approval of the Board of Public Utilities, provide the
municipality with any of the following benefits in consideration for the use of
land within its municipal boundaries as the location of a transfer station:�

���� (1)�� The receipt of quarterly
payments of annual sums of money in lieu of taxes on the land used for the
transfer station;�

���� (2)�� The exemption from all
fees and charges for the acceptance for transfer of solid waste generated
within its boundaries;

���� (3)�� The receipt of quarterly
lump sum cash payments; or

���� (4)�� Any combination thereof.

���� b.��� Every owner or operator
of a transfer station required to make payments not less frequently than
quarterly to a municipality pursuant to subsection a. of this section may
petition the Board of Public Utilities for an increase in its tariff which
reflects these payments.� The board,
[
within
]

not more
than
60 days
[
of
]

after

the receipt of the petition, shall issue an order that these payments shall be
passed along to the users of the transfer station as an automatic surcharge on
any tariff filed with, and recorded by, the board for the solid waste disposal
operations of the transfer station.�

���� c.���� In issuing any order
required by
subsection b. of
this section, the Board of Public Utilities
shall be exempt from the provisions of R.S.48:2-21.�

����
d.��� Not more than 10 days
after commencing negotiations pursuant to subsection a. of this section in
association with the

payment of an annual economic benefit, the
municipality shall provide written notice to the Board of Public Utilities of
the date on which negotiations were commenced.

����
e.���� Negotiations
undertaken pursuant to subsection a. of this section shall be completed not
more than 180 days after being commenced.� If negotiations cannot be completed
within the timeframe specified by this subsection, the parties may jointly
apply to the board for an extension of up to 180 days to complete the
negotiations.� The joint application shall identify the reasons why
negotiations were not completed within the initial 180-day timeframe required
by this subsection.� The board shall approve an application for extension,
which is submitted pursuant to this subsection, provided that there is no
reasonable basis for the board to believe that the municipality or transfer
station are acting in bad faith with respect to the negotiations.� Notice of an
extension authorized pursuant to this subsection shall be posted on the
Internet websites of the board and the municipality no later than 10 days after
the extension is granted.

����
f.���� Not more than 10
days after negotiations are completed pursuant to subsection e. of this
section, and before the proposed

annual economic benefit is submitted to
the board for approval pursuant to subsection a. of this section, the
municipality shall publish the proposed annual economic`benefit on its Internet
website and provide a minimum 45-day period for public comment on the proposed
annual economic benefit.� Not more than 45 days after the public comment period
is closed, the municipality and transfer station shall consider the comments received
and incorporate changes to the proposed annual economic benefit, in accordance
with those comments, as is deemed by the parties to be appropriate.� Upon
submission of the proposed annual economic benefit

to the board for
approval, the municipality shall also transmit the public comments to the board
for consideration.�

����
g.��� If a request for
extension, submitted pursuant subsection e. of this section, is denied by the
board on the basis of bad faith negotiations undertaken by either party, or if
the parties otherwise cannot agree on the terms of the annual economic

benefit
within the initial and extended timeframes specified by subsection e. of this
section, the board shall issue an order establishing

an annual economic benefit
in the municipality, as it deems appropriate.� When establishing the annual
economic benefit, the board shall consider, and shall incorporate to the
greatest extent possible, consistent with the other provisions of the order,
any terms on which the parties were able to reach agreement during the course
of negotiations.

����
h.��� A resident of a
municipality within which a transfer station is located may petition the board for
an order establishing or adjusting

an annual economic benefit pursuant
to this section.� The petition shall be presented in a form and manner
prescribed by the board and shall:� (1) indicate the level of benefit that the
petitioner believes should be imposed; (2) include supporting information and
documentation explaining why the proposed level of benefit is both reasonable
and necessary; and (3) include any other information required by the board.�
The board shall issue a decision on the petition no later than 180 days after
receipt thereof.

(cf: P.L.1991, c.381, s.40)

���� 3.��� This act shall take
effect immediately.

STATEMENT

����� This bill would amend the law pertaining to the
establishment of annual economic benefits for municipalities in which sanitary
landfill facilities or solid waste transfer stations operate, in order to
provide for greater public input with respect to the establishment and terms of
such annual economic benefits and greater transparency and finality in the
annual economic benefits negotiation process.�

����� Current law provides that any municipality in which a
sanitary landfill facility or transfer station is located is entitled to
receive an annual economic benefit, to be paid by the owner or operator of the
facility or transfer station.� The amount and form of the benefit are to be
established pursuant to an agreement that is executed between the municipality
and the sanitary landfill facility or transfer station and is approved by the
Department of Environmental Protection (DEP) or the Board of Public Utilities
(BPU), as appropriate.� This bill would:� (1) establish a specific timeframe
for the completion of annual economic benefit negotiations between a
municipality and a sanitary landfill facility or transfer station; (2) require
the municipality to publish the proposed annual economic benefit online, for
public comment, prior to submitting the proposed annual economic benefit to the
DEP or BPU for approval; (3) require the DEP or BPU to establish the annual
economic benefit for a municipality in any case where the parties are
negotiating in bad faith or otherwise fail to come to an agreement on the
annual economic benefit; and (4) authorize any resident to petition the DEP or
BPU for an order establishing or adjusting an annual economic benefit in the municipality.�

����� The bill provides, in particular, that, not more than
10 days after negotiations are commenced between a municipality and a sanitary
landfill facility or transfer station to establish an annual economic benefit,
the municipality will be required to provide written notice to the DEP or BPU,
as appropriate, indicating the date on which negotiations were commenced.�
Negotiations are to be completed not more than 180 days after being commenced;
however, if negotiations cannot be completed within this timeframe, the parties
may jointly apply to the DEP or BPU for an extension of up to 180 days to
complete the negotiations and publish the proposed annual economic benefit.� An
application for extension is to identify the reasons why negotiations were not
completed within the initial 180-day timeframe required by the bill.� The DEP
or BPU, as appropriate, will be required to approve an application for
extension, so long as there is no reasonable basis for the commissioner or the
board, as appropriate, to believe that the municipality or the sanitary
landfill facility or transfer station, as appropriate, are acting in bad faith
with respect to the negotiations.� Notice of an extension authorized under the
bill is to be posted on the Internet websites of both the municipality and the
DEP or BPU, as appropriate, within 10 days after the extension is granted.

����� The bill also provides that, not more than 10 days
after negotiations are completed in accordance with the timeframes specified by
the bill, and before the proposed annual economic benefit is submitted to the
DEP or BPU for approval, the municipality is to publish the proposed annual
economic benefit on its Internet website and provide a minimum 45-day period
for public comment on the proposed annual economic benefit.� Not more than 45
days after the public comment period is closed, the parties will be required to
consider the comments received and incorporate changes to the proposed annual
economic benefit, in accordance with those comments, as is deemed by the
parties to be appropriate.� Upon submission of the proposed annual economic
benefit to the DEP or BPU for approval, the municipality will also be required
to transmit the public comments to the DEP or BPU for consideration.�

����� If an application for extension of the negotiation
period is denied by the DEP or the BPU on the basis of bad faith negotiations
undertaken by either party, or if the parties otherwise cannot agree on the
terms of the annual economic benefit within the initial and extended timeframes
specified by the bill, the DEP or BPU, as appropriate, will be required to
issue an order establishing an annual economic benefit in the municipality as
the commissioner or board deems appropriate.� When establishing an annual
economic benefit, the commissioner or board will be required to consider, and
incorporate to the greatest extent possible, consistent with the other
provisions of the order, any terms on which the parties were able to reach
agreement during the course of negotiations.

����� Finally, the bill authorizes any resident of a
municipality in which a sanitary landfill facility or transfer station is
located to, at any time, petition the DEP or the BPU for an order establishing
or adjusting an annual economic benefit in the municipality.� Any such petition
is to:� (1) indicate the level of benefit that the petitioner believes should
be imposed; (2) include supporting information and documentation explaining why
the proposed level of benefit is both reasonable and necessary; and (3) include
any other information required by the DEP or BPU, as appropriate.� The DEP or
BPU, as the case may be, will be required to issue a decision on the petition
no later than 180 days after receipt thereof.