NJ Regulations and Legislation and the Governor’s Race in NJ with Tony Russo, President of CIANJ [VIDEO]

New Jersey Business & Environmental Policy Outlook

New Jersey heads into election season with a crowded regulatory docket, an uncertain energy market, and a federal shutdown already rippling through day-to-day business. In this Hot Topic session, Tony Russo and Mike Egenton walked through what’s moving, what’s stalled, and how the outcomes in November could shape 2026 and beyond.

Quick takeaways

• Regulations in the queue: Expect little movement until after Election Day, then a potential surge in lame-duck activity depending on the gubernatorial outcome. Finalized rules are far harder to unwind than bills, so watch the NJ Register closely in November–January.
• A901 “broker” fix is coming: Draft legislation is circulating; it aims to narrow who’s truly a “broker,” preserve the LSRP exemption (site-specific), raise small-quantity thresholds for landscapers, and give more time to file applications—while allowing continued operation during review.
• REAL (flood hazard) rules: Still a priority. Given coastal flooding, stormwater and siting pressures, these could be pushed to the finish line in lame duck.
• Site Remediation/ARCs & public disclosure: Proposal drew heavy comment. Final action likely hinges on the election and transition discussions.
• Energy cost pressure is real: PJM demand is rising (AI/data centers), while supply from coal and gas has been retired faster than firm replacements arrived. Near-term: natural gas remains the backbone; mid-term: SMR nuclear likely returns to the conversation; offshore wind recovery is uncertain.
• Federal shutdown impacts grow with time: Grant flows, tariff waivers, EPA permitting and pass-through funding to NJ agencies slow first—then stall—if the shutdown persists.
• Elections will be close: New Jersey governor’s races without a presidential ballot typically see ~40–45% turnout. The path to victory is mobilizing base voters and winning enough unaffiliateds. Expect a margin of only a few points.

What’s moving now (and what to watch next)

1) Rulemaking: before vs. after Election Day

• Pre-election: Expect quiet. Agencies usually avoid finalizing controversial rules this close to voting.
• Lame duck (post-election → Jan 20): If the party in the Governor’s Office changes, expect heavy rule and bill activity in the short window before inauguration. Remember, finalized rules require a full rulemaking to change; bills can be amended quickly by a new Legislature.

Watch list

• ARCs/site remediation package (including public disclosure mechanics)
• REAL flood hazard updates—broad statewide impact (not just the Shore)
• Independent contractor & wage/notice rules at Labor (business-wide effects)

Action for LSRPs/PRCRs

• Keep draft comments, variance justifications, and implementation plans ready.
• Brief clients now on scenarios so they’re not surprised in December/January.

2) A901 fixes: who is a “broker”?

Why it matters: Since Superstorm Sandy, a wide “broker” definition has captured firms that schedule or coordinate contaminated soil/waste movements—even when they hire licensed haulers and LSRPs oversee the work.

Elements discussed

• Narrow the “broker” definition to true intermediaries handling disposal decisions.
• Keep the LSRP exemption site-specific (as in statute) but avoid sweeping up routine, supervised project logistics.
• Raise thresholds for landscapers/small operators (e.g., truck/yard quantities).
• Replace the 30-day filing clock with ~90 days for A901 applications.
• Allow firms with timely, complete applications to operate while under review.

If current rules were finalized as-is: expect broad compliance burdens quickly. Begin mapping your roles (generator/hauler/broker), contracts, and volumes now so you can pivot if a rule drops before a legislative fix.

3) Energy, climate, and rates

Businesses are seeing double-digit jumps in monthly electric costs. Drivers include higher demand (data centers/AI), retirement of firm generation, and uneven timing for new supply.

Outlook

• Near-term: Natural gas remains ~“half” of PJM generation; capacity additions and transmission upgrades lag demand growth.
• Mid-term: Expect serious evaluation of small modular reactors (SMRs); existing nuclear sites and transmission corridors could shorten timelines.
• Offshore wind: Mixed prospects; recent cancellations add uncertainty to project finance and supply chain timelines.

What to do now

• Update energy budgets and contract strategies for 2026–2027.
• Revisit on-site resilience (efficiency, CHP, storage) and incentives while they last.
• Track PJM queue, BPU proceedings, and any gubernatorial transition energy planks.

Tip: Inventory your projects with a federal touchpoint (funding, approvals, lab work) and communicate expected lags to clients and lenders.

5) Affordable housing meets flood risk

REAL’s higher elevations and floodplain constraints intersect with municipalities’ affordable housing obligations. Expect more local litigation and site-selection friction, with some towns weighing builder’s remedy paths. Any statewide fix likely requires new legislation in 2026.

Elections: the road to January 20

• Turnout reality: With no presidential race, expect ~40–45% turnout. Early voting and vote-by-mail spread ballots over weeks, but do not automatically raise participation.
• Gubernatorial race: Policy contrasts are sharp (energy, environment, fiscal posture). Specifics are thin in public planks today; transitions will fill in details quickly.
• Why it matters to business: The Governor appoints commissioners, shapes policy beyond statutes and rules, and wields powerful line-item and pocket vetoes (depending on the legislative calendar).

What you can do

• Verify your voting plan (early, mail, or Election Day) and deadlines via the NJ Division of Elections.
• Share operational impacts (energy, permits, grants) with your legislators—local input matters in tight races.

Practical next steps for LSRPs, PRCRs, and owners

1. Scenario plan for lame duck. Identify which of your projects are most exposed to ARCs/REAL/A901 outcomes; prep client advisories.
2. Map your roles under A901. If you coordinate soil/waste movements, be ready to adjust scopes and contracts; track the draft bill’s progress.
3. Harden schedules against federal delays. Add time cushions to grant, procurement, and EPA-tied deliverables.
4. Rebudget energy. Stress-test 2026 costs; examine demand management, hedging, and facility upgrades.
5. Engage in the transition. Industry coalitions will brief the next administration quickly; add your voice and case studies.

Watch next week: PCBs & EPA–NJ Alignment

CPES continues this discussion with a focused session on PCBs and how evolving EPA rules are being incorporated in New Jersey. Dr. Jorge Berkowitz and Roger Ferguson will unpack the technical and policy threads.

Want in? See the CPES calendar and reserve your seat.

About the speakers

• Tony Russo brings a rare blend of engineering, consulting, state agency, and advocacy experience, now leading CIANJ and COMMERCE Magazine.
• Mike Egenton is a long-time voice for statewide business at the NJ State Chamber, with a front-row view of Trenton’s fiscal and policy dynamics.

Keep learning with CPES

CPES hosts practical, fast-moving Hot Topics to keep New Jersey environmental professionals ahead of the curve – free recordings included.

Contact Us to learn more about upcoming courses or to enroll