K&LNG FEBRUARY 2006 Alert Environmental New Jersey Governor Corzine Appoints New Commissioner of Environmental Protection, Considers Agenda for the Coming Years Newly elected Governor Jon S. Corzine has selected his new Commissioner of Environmental Protection, Lisa Jackson, 43, a career professional with EPA and NJDEP. Jackson is currently Acting Commissioner and will be interviewed by the New Jersey Senate Judiciary Committee on February 6, 2006. Jackson had been Assistant Commissioner for Land Use Management, a key position in the administration of former Commissioner Bradley Campbell. In that position, she has overseen critical programs such as the Highlands initiative, wetlands protection, decisions on Jersey Shore development and other programs designed to preserve open space. Previously, Jackson had been Assistant Commissioner for Compliance and Enforcement for three years. She is credited with leading several successful innovations during this time, including enforcement “sweeps” that periodically concentrated compliance and enforcement resources in selected urban communities. She has also chaired NJDEP’s Black Environmental Solidarity Team. Jackson, who grew up in the Ninth Ward in New Orleans, recently devastated by Hurricane Katrina, and who now resides in East Windsor with her husband and two children, is a chemical engineer, in contrast to her predecessor, who is a lawyer. She graduated summa cum laude from the Tulane University School of Chemical Engineering and holds a master’s degree in chemical engineering from Princeton University. Upon her nomination to be Commissioner, she was quoted in the Newark Star Ledger as saying “I am a technical person by training. I believe that with a lot of these issues, the way to solve them is to look at the technical issues and look at the risk to our environment and our health and make the sound technical choice.” Campbell, who wanted to remain in office, described Jackson as a “fabulous choice.” Jackson spent fifteen years with EPA, first at Headquarters, where she worked in the Superfund program, and later in Region 2, where she was Acting Director of the regional Office of Enforcement and Compliance Assurance. Since 2002, she has been detailed to the Department of Environmental Protection under a personnel exchange program. She is believed to be highly respected by NJDEP staff and by EPA regional and national management, as well as by Region 2 staff. Morale at the often beleaguered NJDEP can be expected to improve, perhaps dramatically, as can the fractious and often competitive relationship between NJDEP and EPA. Prior to the inauguration of Governor Corzine, Jackson issued the following statement: Governor-elect Corzine has made an extraordinary commitment to environmental issues throughout his public life. I am honored that I have been given the opportunity to work with his administration and am committed to furthering New Jersey’s status as a national leader in public health and environmental protection, and energy efficiency. Referring to the New Orleans tragedy, which drove her mother, step-father and sister out of the City before the storm hit, she was quoted in the Bergen Record as saying “That situation certainly showed what regulations can do and mean in people’s lives.” On January 25, 2006, Jackson appointed John Watson and Adam Zellner as Deputy Commissioners, thereby restructuring the NJDEP front office and “rounding out the Department’s senior leadership.” Watson, who is known as “Jay,” will deal with so-called “green” issues, having served as Assistant Commissioner for Natural and Historic Resources, where he was responsible for the Green Acres program, the Division of Parks and Forestry, Kirkpatrick & Lockhart Nicholson Graham LLP | FEBRUARY 2006 the Division of Fish and Wildlife and the Offices of Engineering and Construction, Historic Preservation and Natural Resource Restoration. He was also responsible for the acquisition and preservation of land for recreation and conservation purposes and for the development of recreational facilities throughout the state. He graduated from Florida A&M University in Tallahassee and resides in Lawrenceville with his wife and two children. According to Jackson, Zellner, who had been Executive Director of the New Jersey Highlands Council, will be responsible for assisting her “in formulating and executing our agenda over the next four years,” bringing to bear his experience in smart growth, land use and planning issues as well as his “wide-ranging experience in government.” Before leading the Highlands Council, Zellner had been Executive Director of the Office of Smart Growth, which processed $2 billion worth of redevelopment projects during his tenure. Before that, Zellner had been Chief of Staff for Congressman Steve Rothman of the Ninth Congressional District, having also worked for a number of state legislators. He graduated from Rowan University and resides in Linden with his wife. At the time of these appointments, Jackson also announced that more restructuring would be in the offing, “in these times of austerity,” leading one to wonder whether the current assistant commissioners, or their positions, will be retained. Shortly after her appointment, Jackson identified as her priorities recruiting “new leadership talent” for the NJDEP, environmental justice, “tough” mandatory safety standards for chemical plants, air quality, protection of drinking water resources, the Regional Greenhouse Gas Initiative, energy efficiency and renewable resources, “marrying” Brownfield redevelopment with the land use development program, TMDLs (particularly for phosphorous), wildlife habitat preservation, and NRD. She acknowledged that a long-anticipated NRD rule would be forthcoming. She also said that she thought a number of issues could “benefit from a new set of eyes,” including NRD, the Passaic River, chromium and Petty’s Island. Many of Jackson’s priorities have also been identified as priorities by Governor Corzine. After his election, but prior to his inauguration, Governor Corzine appointed an Environment Transition Policy Group “to develop recommendations for a six-month policy agenda.” The 26-member Group, co-chaired by Valorie Caffee, Organizing Director of WEC, Tom Gilmore, President of the New Jersey Audobon Society, and Eileen Swan, a member of the Highlands 2 Commission and former Mayor of Lebanon Township, and dominated by NGO representatives, issued its 12-page “Final Report” on January 10, 2006. The Group made thirteen major recommendations. First, the Group recommended that the Governor “reduce air pollutants from stationary and mobile sources” by immediately implementing the diesel engine retrofit program enacted last year, and by convening a carbon dioxide task force by the summer of 2006. Second, the Group recommended that the Governor “protect New Jersey’s drinking water supply” by expanding “Category One” protection to additional water bodies, updating the 1996 Water Supply Master Plan, by integrating and strengthening all the State’s water rules, by widening buffers around critical streams, by drafting regulations on community-used pesticides and by increasing watershed conservation funding through water use fees. Third, the Group recommended that the Governor “rehabilitate New Jersey’s polluted waterways by demanding environmental compliance,” by dedicating natural resource damage “collections” to restoration of natural resources in the communities of impact, by making use of the extended statute of limitations for natural resource damage claims, by clarifying and reducing reliance on “in-kind” contributions to settle NRD cases, by implementing the Lower Passaic River/Newark Bay clean-up program, and by strengthening the Raritan and Delaware River initiatives. Fourth, the Group recommended that the Governor “enforce compliance with wastewater standards,” by using the portion of corporate business tax receipts dedicated to water programs to increase municipal aid for stormwater management, and by proposing rules to strengthen waste water management and water quality management by June, 2006. Fifth, the Group recommended that the Governor “modernize the Department of Environmental Protection” by developing a coordinated, holistic review process for permits, by ending policies on “substantive reliance” by February, 2006, by encouraging worker participation with NJDEP inspectors, by implementing strong enforcement of regulated entities, by growing revenues by reviewing existing leases on state-owned properties, and by opposing budget cuts at NJDEP. Sixth, the Group recommended that the Governor “take action against polluters” by adopting a state “Polluter Pays Act,” by reviving the Spill Fund by creating a feedstock tax on particular industries, by enhancing the NRD initiative by permitting common law claims to be tried before juries, and by “restoring NJDEP’s remediation authority to pre-1993 levels.” Seventh, the Group recommended that the Governor “protect and grow our State’s communities” by opposing changes proposed by EPA to the toxic release inventory reporting system, by making Kirkpatrick & Lockhart Nicholson Graham LLP | FEBRUARY 2006 Brownfields redevelopment a priority, by strengthening the environmental justice Executive Order through legislation, and by appointing a chromium “master,” or “czar,” to coordinate the cleanup of chromium in Jersey City. Eighth, the Group recommended that the Governor “make public health a central focus of environmental policy” by fully implementing the Occupational Health Registry and Environmental Public Health Advisory Group, by creating an Office of Environmental Health, by creating authority to halt or deny pollution permits in communities known to have “disproportionate amounts of polluting facilities,” and by providing funding for innovative technology research and development. Ninth, the Group recommended that the Governor “protect and increase New Jersey’s rural and urban open spaces” by immediately repealing the controversial law enacted in 2004 known as “fast track,” by asking voters to renew the Garden State Preservation Trust in the fall of 2006, by directing NJDEP to use the Shore Protection Fund to acquire vulnerable coastal properties, by guaranteeing the preservation of open space in urban redevelopment, and by closing a “loophole” that allows preserved farms “to be paved over.” Tenth, the Group recommended that the Governor “strengthen scientific-based planning practices” by moving the Office of Smart Growth back to the Department of the Treasury, by creating a process to streamline redevelopment and growth in urban areas, by prioritizing the Highlands Master Plan, by reexamining the Pinelands Comprehensive Plan, by closing “loopholes” in CAFRA, and by expanding the trap/neuter/return program to control animal populations with non-lethal methods. Eleventh, the 3 Group recommended that the Governor “protect endangered species urban and rural habitats” by adopting critical habitat modification rules and by convening a task force to address urban habitats of endangered species. Twelfth, the Group recommended that the Governor “prioritize ecotourism and heritage tourism” by creating a “New Jersey Natural Heritage and Cultural Treasures” designation, by instituting a moratorium on horseshoe crab harvest to protect the “red knot,” and by widening public access to New Jersey’s public lands. Finally, the Group recommended that the Governor “become a steward of the State’s land” by starting a statewide stewardship initiative to increase protection and “attract Federal dollars,” by providing a stable funding source for land stewardship, by promoting non-lethal wildlife control and by rewarding farmers for maintaining forested land. Many of these recommendations are likely to viewed as unfavorable, or even hostile, by business interests, which were virtually unrepresented in the Group. The questions remain whether the Governor will embrace all or some of these recommendations, especially given the unprecedented fiscal challenges he has inherited, and whether the influence of the Group will constrain Commissioner Jackson from pursuing her own agenda. The full text of the Final Report can be found at www.nj.gov/governor/home/pdf/environment.pdf. William Hyatt whyatt@klng.com 973.848.4045 Kirkpatrick & Lockhart Nicholson Graham LLP | FEBRUARY 2006 If you have questions or would like more information about K&LNG’s Environmental Practice, please contact one of our lawyers listed below: BOSTON Michael DeMarco NEWARK 617.951.9111 mdemarco@klng.com William H. Hyatt, Jr. DALLAS NEW YORK Robert Everett Wolin 214.939.4909 rwolin@klng.com Donald W. Stever HARRISBURG PITTSBURGH R. 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