august 2007
New Jersey Enacts Comprehensive Legislation To Address Global Climate Change
BACKGROUND
The Global Warming Response Act (A-3301) was signed into law by Governor John Corzine on July 6, 2007, making New Jersey the third state in the nation to enact comprehensive legislation to address the impact of greenhouse gas emissions on global climate change.
A-3301 requires NJDEP to collect statewide baseline greenhouse gas emissions data and to set standards for reducing emissions from commercial sources. Mirroring reduction targets set forth by Governor Corzine earlier this year, A-3301 requires that greenhouse gas emissions be reduced to the 1990 level by the year 2020, and to 80% less than the 2006 level by the year 2050.
NJDEP’s timeline for taking action under the new law is as follows:
Submit recommendations on measures to successfully reach the 2020 limit no later than June 2008 Establish an inventory of 1990, 2006 and current statewide greenhouse gas emissions levels no later than July 2008 Adopt rules and regulations establishing a statewide greenhouse gas emissions monitoring and reporting program no later than January 2009 Submit recommendations on measures to successfully reach the 2050 limit no later than June 2010
A-3301 further specifies that the regulations to be adopted by NJDEP must require reporting of greenhouse gas emissions by the following entities:
1- Manufacturers and distributors of fossil fuels, such as oil refineries, oil storage facilities and fuel retail distributors;
2 - Entities generating electricity in the State, and entities generating electricity outside the State that is delivered for end use in the State;
3 - Gas public utilities;
4 - Any additional entities that are significant emitters of greenhouse gases as determined by NJDEP
The breadth of this final category could bring a wide range of businesses and facilities within the scope of A-3301 and NJDEP’s future regulations.
WHAT'S NEXT
Following the adoption of NJDEP regulations as mandated by A-3301, impacted parties will be required to ascertain whether their greenhouse gas emissions fall within or exceed the limits imposed by the regulations. Many parties will need to take corrective action and potentially incur considerable expense in order to bring their operations into compliance.
Business owners should evaluate whether it is prudent to incorporate greenhouse gas emissions considerations into their core business strategies during this pre-regulatory stage. If you are planning major capital improvements or new construction which might generate significant greenhouse gas emissions, or if your business is in an industry sector that might seek to comment on the coming regulations, the value of assessing how the regulations might impact your business is especially worthy of consideration.
If you have any questions concerning these issues, please contact Maura E. Blau.