New Jersey Assembly Bill A2806

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Increases Spill Compensation and Control Act cap on recovery of damages from certain dischargers.

Impact

The proposed changes to the liability caps are expected to have broad implications for environmental policy in New Jersey. By increasing the financial responsibility of dischargers, the bill aims to deter negligence and enhance the state's ability to recover cleanup costs from polluters. This adjustment could lead to improved environmental protections and more robust responses to hazardous substance incidents. However, it may also affect business operations and insurance practices related to hazardous material handling, as companies may face higher costs associated with potential liabilities.

Summary

Assembly Bill A2806 seeks to amend the New Jersey Spill Compensation and Control Act by significantly increasing the cap on damages recoverable from the owners or operators of major facilities and vessels responsible for hazardous substance discharges. Specifically, the bill proposes to raise the maximum liability from $50 million to $350 million for major facilities and from $1,200 to $2,400 per gross ton for vessels. This adjustment is intended to enhance accountability for pollution incidents and ensure sufficient funds are available for cleanup efforts and damages incurred by affected parties.

Contention

While the bill has garnered support from environmental advocacy groups who view the increased damages as a necessary step toward better pollution control, it may face opposition from industries reliant on hazardous materials. Critics argue that the increased financial liability could impose excessive burdens on businesses, potentially leading to higher costs for consumers. Additionally, there are concerns that the amendment could impact local economies, especially in sectors heavily reliant on shipping and manufacturing operations that involve hazardous substances.