Requires certain warehouses to obtain air pollution control permit from DEP.

A4034

ASSEMBLY, No. 4034

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Requires certain warehouses to obtain air pollution
control permit from DEP.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning greenhouse gas emissions from certain
warehouses, and amending and supplementing P.L.1954, c.212.

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

���� 1.��� Section 2 of P.L.1954,
c.212 (C.26:2C-2) is amended to read as follows:

���� 2.��� As used in
[
this act
]

P.L.1954,
c.212 (C.26:2C-1 et seq.)
:

���� "Air contaminant"
means any substance, other than water or distillates of air, present in the
atmosphere as solid particles, liquid particles, vapors, or gases;

���� "Air pollution"
means the presence in the outdoor atmosphere of one or more air contaminants in
such quantities and duration as are, or tend to be, injurious to human health
or welfare, animal or plant life, or property, or would unreasonably interfere
with the enjoyment of life or property throughout the State and in those areas
of the State as shall be affected thereby, and excludes all aspects of an
employer-employee relationship as to health and safety hazards;

���� "Antimicrobial
pesticide" means a product that destroys or repels, or prevents or
mitigates the growth of, any bacteria, fungus, virus or other micro-organism
that is defined as a pest pursuant to 7 U.S.C. s.136w (c)(1), and includes any
product required to be registered as an antimicrobial pesticide pursuant to the
"Federal Insecticide, Fungicide and Rodenticide Act," 7 U.S.C. s.136
et seq.;

���� "Commissioner" means
the Commissioner of Environmental Protection;

���� "Construct" or
"construction" means to fabricate or erect equipment or control
apparatus at a facility where it is intended to be used, but shall not include
the dismantling of existing equipment or control apparatus, site preparation,
or the ordering, receiving, temporary storage, or installation of equipment or
control apparatus.� Unless otherwise prohibited by federal law,
"construct" or "construction" shall also not include the
pouring of footings or placement of a foundation where equipment or control
apparatus is intended to be used;

���� "Consumer Price
Index" or "CPI" means the annual Consumer Price Index for a
calendar year as determined year to year using the decimal increase in the
September through August, 12-month average for the previous year of the
Consumer Price Index for All Urban Consumers (CPI-U), as published by the
United States Department of Labor;

���� "Control apparatus"
means any device that prevents or controls the emission of any air contaminant;

���� "Council" means the
Clean Air Council created pursuant to section 3 of P.L.1967, c.106
(C.26:2C-3.2);

���� "Department" means
the Department of Environmental Protection;

���� "Emission fee" means
an annual fee that is based on the emission of any regulated air contaminant;

���� "Emission statement"
means an annual reporting of actual emissions of air contaminants as prescribed
by rules and regulations therefor that shall be adopted by the department
pursuant to the "Administrative Procedure Act, " P.L.1968, c.410
(C.52:14B-1 et seq.);

����
"Emitting
vehicle" means any passenger vehicle or truck that is not a zero-emission
vehicle;

���� "EPA" means the
United States Environmental Protection Agency;

���� "Equipment" means
any device capable of causing the emission of an air contaminant either
directly or indirectly into the outdoor atmosphere, and any stack, chimney,
conduit, flue, duct, vent, or similar device connected or attached to, or serving,
the equipment, and shall include, but need not be limited to, any equipment in
which the preponderance of the air contaminants emitted is caused by a
manufacturing process;

���� "Facility" means the
combination of all structures, buildings, equipment, control apparatus, storage
tanks, source operations, and other operations that are located on a single
site or on contiguous or adjacent sites and that are under common control of
the same person or persons.� Research and development facilities that are
located with other facilities shall be considered separate and independent
entities for the purposes of complying with the operating permit requirements
of P.L.1954, c.212 (C.26:2C-1 et seq.) or any codes, rules, or regulations
adopted pursuant thereto;

���� "Federal Clean Air
Act" means the federal "Clean Air Act" (42 U.S.C.s.7401 et seq.)
and any subsequent amendments or supplements to that act;

���� "Grandfathered"
means construction, reconstruction, or modification of equipment or control
apparatus prior to the date of enactment of section 13 of P.L.1967, c.106
(C.26:2C-9.2) on June 15, 1967, or prior to the subsequent applicable revisions
to rules and regulations codified at N.J.A.C.7:27-8.1 et seq. that occurred
March 5, 1973, June 1, 1976, April 5, 1985, and October 31, 1994;

���� "HAP" or hazardous
air pollutant" means any air pollutant listed in or pursuant to subsection
(b) of section 112 of the federal Clean Air Act (42 U.S.C. s.7412);

���� "Hospital or medical
disinfectant" means an antimicrobial product registered with the United
States Environmental Protection Agency that qualifies to bear the name or claim
to be a "hospital or medical environment disinfectant" pursuant to
United States Environmental Protection Agency guidelines published pursuant to
7 U.S.C. s.136a (c)(2)(A), and shall include, but shall not be limited to,
antimicrobial pesticides used in hospitals, doctor and dentist offices, and
other medical environments;

���� "Install" or
"installation" means to carry out final setup activities necessary to
provide equipment or control apparatus with the capacity for use or service,
and shall include, but need not be limited to, connection of equipment or control
apparatus, associated utilities, piping, duct work, or conveyor systems, but
shall not include construction or reconfiguration of equipment or control
apparatus to an alternate configuration specified in a permit application and
approved by the department;

���� "Major facility"
means a major source, as that term is defined by the EPA in rules and
regulations adopted pursuant to the federal Clean Air Act at 40 CFR 70.2 or any
subsequent amendments thereto, that has the potential to emit any of the air contaminants
listed below in an amount that is equal to or exceeds the applicable major
facility threshold levels as follows:

Air Contaminant�������������������������������� Threshold
level

Carbon monoxide������������������������������ 100
tons per year

Particulate matter (PM-10)��������������� 100
tons per year

Total suspended particulates������������� 100
tons per year

Sulfur dioxide����������������������������������� 100
tons per year

Oxides of nitrogen����������������������������� 25
tons per year

VOC�������������������������������������������������� 25
tons per year

Lead��������������������������������������������������� 10
tons per year

Any HAP������������������������������������������� 10
tons per year

All HAPs collectively������������������������ 25
tons per year

Any other air contaminant���������������� 100
tons per year;

���� "Modify" or
"modification" means any physical change in, or change in the method
of operation of, existing equipment or control apparatus that increases the
amount of any air contaminant emitted by that equipment or control apparatus or
that results in the emission of any air contaminant not previously emitted, but
shall not include normal repair and maintenance;

���� "Operating permit"
means the permit described in Title V of the federal Clean Air Act (42 U.S.C.
s.7661 et seq.);

���� "Person" means an
individual, public or private corporation, company, partnership, firm,
association, society, joint stock company, international entity, institution,
county, municipality, state, interstate body, the United States of America, or
any agency, board, commission, employee, agent, officer, or political
subdivision of a state, an interstate body, or the United States of America;

���� "Potential to emit"
means the same as that term is defined by the EPA in rules and regulations
adopted pursuant to the federal Clean Air Act at 40 CFR 70.2 or any subsequent
amendments thereto;

���� "Process unit" means
equipment assembled to produce intermediate or final products.� A process unit
can operate independently if supplied with sufficient feed or raw materials and
sufficient storage facilities for the product.� The storage and transfer of
product or raw materials to and from the process unit shall be considered
separate from the process unit for the purposes of making reconstruction
determinations.� Product recovery equipment shall be considered to be part of
the process unit, not part of the control apparatus;

���� "Reconstruct" or
"reconstruction" means the replacement of parts of equipment included
in a process unit, or the replacement of control apparatus, if the fixed
capital cost of replacing the parts exceeds both of the following amounts:� (1)
Fifty percent of the fixed capital cost that would be required to construct a
comparable new process unit or control apparatus; and (2) $80,000 (in 1995
dollars) adjusted by the Consumer Price Index;

���� "Regulated air
contaminant" means the same as the term "regulated air
pollutant" as defined by the EPA in rules and regulations adopted pursuant
to the federal Clean Air Act at 40 CFR 70.2 or any subsequent amendments
thereto;

����
"Regulated
warehouse" means a warehouse that is 100,000 square feet or larger, and
that generates an average of 500 or more vehicles trips by emitting vehicles
per working day, including trips caused by employees travelling to and from
work, fleet vehicles engaged in the operations of the warehouse, and trucks
transporting cargo, goods, or products to and from the warehouse;

���� "Research and development
facility" means any facility the primary purpose of which is to conduct
research and development into new processes and products, including academic
and technological research and development, provided that such a facility is
operated under the close supervision of technically trained personnel and is
not engaged in the manufacture of products for commercial sale, except in a de
minimis manner;
[
and
]

���� "VOC" or
"volatile organic compound" means the same as that term is defined by
the EPA in rules and regulations adopted pursuant to the federal Clean Air Act
at 40 CFR 51.100 or any subsequent amendments thereto
;

����
"Warehouse" means
a building that stores cargo, goods, or products of any type on a short-term or
long-term basis for later distribution to wholesale or retail customers, and
includes, but is not limited to, a distribution center, flex-warehouse, or any
other type of warehouse; and

����
"Zero-emission
vehicle" means the same as the term is defined in section 2 of P.L.2003, c.266
(26:2C-8.16)
.

(cf:� P.L.1999, c.100, s.1)

���� 2.��� Section 8 of P.L.1954,
c.212 (C.26:2C-8) is amended to read as follows:

���� 8. a.� The department shall
have power to formulate and promulgate, amend and repeal codes and rules and
regulations preventing, controlling and prohibiting air pollution throughout
the State or in such territories of the State as shall be affected thereby,
except as provided in subsection b. of this section; provided, however, that no
such code, rule or regulation and no such amendment or repeal shall be adopted
except after public hearing to be held after 30 days' prior notice thereof by
public advertisement of the date, time and place of such hearing, at which
opportunity to be heard by the department with respect thereto shall be given
to the public; and provided, further, that no such code, rule or regulation and
no such amendment or repeal shall be or become effective until 60 days after
the adoption thereof as� aforesaid.� Any person heard at such public hearing
shall be given written notice of the determination of the department.

���� All codes, rules and
regulations heretofore adopted by the Air Pollution Control Commission shall
continue in full force and effect subject to the power of the department to
amend and repeal such codes, rules and regulations as provided by
[
this act
]

P.L.1954,
c.212 (C.26:2C-1 et seq.)
.

���� b.��� Unless otherwise
required by federal law, rule or regulation, no code, regulation, rule or
standard may be adopted by the department that diminishes the efficacy of a
hospital or medical disinfectant in killing or inactivating agents of
infectious diseases, including, but not limited to, restrictions on the
volatile organic compound content or emissions caused by the use of such
products.� No federal requirement to reduce volatile organic compound content
or emissions in general may be construed to permit the department to regulate
the volatile organic compounds found in, or released in the use of, a hospital
or medical disinfectant, unless the federal law, rule or regulation
establishing the federal requirement specifically requires the reduction of
volatile organic compounds found in, or released in the use of,� hospital or
medical disinfectants.

����
c.� The department shall
have the power to regulate air pollution and greenhouse gas emissions resulting
from activities at regulated warehouses, in accordance with the provisions of
section 3 of P.L. , c. (C. )
(pending before the Legislature as this bill).

(cf:� P.L.1999, c.100, s.2)

���� 3.� (New section) a.� No
regulated warehouse in the State shall operate unless the owner or operator of
the warehouse possesses a valid permit issued by the department pursuant to the
"Air Pollution Control Act (1954)," P.L.1954, c.212 (C.26:2C-1 et
seq.).

���� b.� The department shall
develop and implement a permit program to effectuate the provisions of this
section.� A permit issued to a regulated warehouse pursuant to this section
shall require the owner or operator of a regulated warehouse to demonstrate to
the department's satisfaction that the activities at the regulated warehouse
result in emissions of no more than 100 tons of greenhouse gases annually,
measured as carbon dioxide equivalent.� The measurement shall:

���� (1) include emissions from
emitting vehicle traffic generated by the warehouse; and

���� (2) factor in, as an offset,
any carbon credits purchased by the owner or operator of the warehouse during
the measurement year, provided that the department determines that the carbon
credits represent genuine carbon sequestration.

���� c.� The department shall
possess the same powers to administer and enforce the provisions of this
section as it possesses with respect to the other provisions of the "Air
Pollution Control Act (1954)," P.L.1954, c.212 (C.26:2C-1 et seq.), including,
but not limited to, the power to collect administrative fees pursuant to
section 9 of P.L.1954, c.212 (C.26:2C-9) and the power to enter premises
pursuant to section 5 of P.L.1962, c.212 (C.26:2C-9.1).

���� d.� An owner or operator of a
regulated warehouse that violates the provisions of this section shall be
deemed to have violated the provisions of the "Air Pollution Control Act
(1954)," P.L.1954, c.212 (C.26:2C-1 et seq.), and shall be subject to the
same penalties as provided in section 19 of P.L.1954, c.212 (C.26:2C-19).

���� e.� The Department of
Environmental Protection shall adopt, pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and
regulations as necessary to implement the provisions of this section.

���� 4.��� This act shall take
effect 18 months after the date of enactment, except that the Department of
Environmental Protection may take any anticipatory administrative action, in
advance of the effective date, as may be necessary for the implementation of
this act.

STATEMENT

���� This bill would require
certain warehouses to obtain a permit under the "Air Pollution Control Act
(1954)," P.L.1954, c.212 (C.26:2C-1 et seq.) before being allowed to
operate in the State.

���� Specifically, the bill would
apply to warehouses that are 100,000 square feet or larger and generate 500 or
more vehicle trips per working day.� The vehicle trips would include employees
commuting to and from work, in addition to truck traffic.� However, the vehicle
trips would exclude trips made by zero-emission vehicles.

���� Under the permit program, the
owner or operator of a regulated warehouse would be required to demonstrate to
the Department of Environmental Protection (DEP) that the warehouse generates
no more than 100 tons of greenhouse gases per year.� The owner or operator
could purchase carbon credits to offset the warehouse's emissions, provided
that DEP deems the credits to be legitimate.� The requirement to obtain a
permit would begin 18 months after the date the bill is enacted into law.� The
permit requirement would apply to any existing or newly constructed warehouse
that is covered under the bill.

���� The bill would provide that
the DEP has the same powers to administer and enforce the permit program as it
has under the "Air Pollution Control Act (1954)," and a violation of
the bill's provisions would constitute a violation of the "Air Pollution
Control Act (1954)."� Persons who violate the "Air Pollution Control
Act (1954)" may be liable to a civil administrative penalty of not more
than $10,000 for the first offense, not more than $25,000 for the second
offense, and not more than $50,000 for the third and each subsequent offense.