A January Reset For NJ’s Regulated Community [VIDEO]

Featured guest Tony Russo, President of Commerce and Industry Association of New Jersey (and publisher/CEO of COMMERCE Magazine), walked attendees through early signals from the new governor’s team, the executive orders already signed, and the year’s biggest “watch items” for the regulated business community.

Early staffing signals from the new administration

A major portion of the discussion covered senior appointments and what those roles can mean for day-to-day work across regulated industries.

Key points raised on staffing and structure:

• Chief of staff and senior management positions are now in place, including several figures with national experience, alongside Trenton “inside” operators who understand the building’s mechanics.
• A new chief operating officer role was created via executive order. The COO portfolio, as described during the program, is expected to sit at the center of the administration’s operational and regulatory streamlining goals.
• The New Jersey Economic Development Authority (EDA) leadership shift matters for incentives, grants, and project economics. EDA decisions often influence redevelopment timelines and financing.
• DEP leadership is in transition, with attention on how the department’s priorities may align with climate, energy, permitting, and redevelopment.
• The attorney general role came up for a reason relevant to licensed professionals: the Division of Consumer Affairs houses many of the boards tied to professional licensing and enforcement.

Executive orders: energy first, then regulatory reform

The program highlighted the administration’s early use of executive orders, including moves that landed during inauguration events.

Two themes dominated:

Energy cost pressure – The first order discussed centered on energy affordability and a pause approach tied to rate cases and near-term cost relief strategies. The conversation tied rising demand to factors such as data centers and AI-driven load growth, alongside supply constraints as generation sources shift across the region.

A second order discussed prioritized renewable supply and related approvals. Solar, storage, grid modernization, and other generation options were framed as part of a broader package, with an acknowledgment that PJM’s regional grid dynamics create limits on what New Jersey can fix by state action alone.

Regulatory reform and a 90-day pause – Executive Order 5 (as referenced in the program) was presented as the administration’s clearest signal on regulatory reform. Discussion points included a new simplification effort, tools like a permit catalog/dashboard concept, and a targeted focus on housing and energy projects—at least as a starting point.

Executive Order 7 (as referenced) created a 90-day pause window for rules not yet finalized. The group noted exceptions may exist for immediate public health or environmental needs, though specifics were not pinned down in the discussion. The practical takeaway: rules already adopted are still in place; items still in the pipeline face a hold and review.

For New Jersey practitioners, that pause matters most in the gray area: proposals that would change practice standards or impose new reporting and public notification burdens.

The “real rules” and a specific SAR concern

A targeted segment addressed Site Remediation Reform Act (SRRA/SAR) amendments and a related carve-out tied to due diligence reporting and public notification concepts.

The group discussed a reproposal aimed at exempting a public notification component—an issue that can reshape real estate due diligence in NJ, especially for transactions involving older industrial properties or mixed-use redevelopment corridors near transit and former manufacturing centers.

The key caution shared: the piece that was reproposed and not fully finalized now sits inside the 90-day review window. For LSRPs, attorneys, and developers, that means staying alert to movement on the reproposal and tracking how the new front office evaluates it.

A901 “dirty dirt”: how the fix crossed the finish line

The centerpiece of the program was the late-session legislative push tied to A901, widely discussed in the regulated community as the “dirty dirt” bill.

The speakers walked through the backstory:

• The original soil licensing push was rooted in concerns after Superstorm Sandy, when contaminated material showed up where it did not belong.
• The 2019 law created a framework, but the implementation path collided with COVID disruptions and a slow regulatory process.
• DEP began leaning on FAQs as practical guidance, in effect regulating before full regulations were in place.

A 2022 law change delayed licensing requirements until DEP issued rules, with a registration approach serving as the interim path. Over time, the industry watched a major concern take shape: thresholds and definitions that would sweep in routine business activities and create licensing burdens that do not fit real-world operations.

The program explained how the fix advanced:

• A coalition formed across multiple sectors, not just environmental consultants. Utilities, landscapers, builders, transport interests, and business associations aligned around practical impacts.
• Senate and Assembly champions moved the bill during the compressed lame duck window.
• Key sticking points included soil volume thresholds and broker definitions.
• A threshold change discussed during the program moved the trigger from very low cubic yard amounts to a higher level that better reflects routine work, helping to avoid pulling small-scale activities into the licensing regime.
• The revised “broker” definition was framed as a major improvement, clarifying exemptions tied to using licensed haulers and legitimate disposal pathways.

The group emphasized how close the outcome was to collapsing due to timing and competing priorities during lame duck. The bill’s signing, described as occurring just before the administration changed over, was treated as a rare case where the compressed schedule helped rather than harmed.

Practical note shared on operations: the guidance to the regulated community was to continue operating as they had since the 2022 registration approach while new regulations are developed under the updated law.

The Reason Act: a new push tied to redevelopment outcomes

Later in the program, discussion turned to a potential next chapter: a concept referred to as the Reason Act, described as “Revitalize the Economy and Strengthen Our Neighborhoods.”

The idea is rooted in a common sight across New Jersey: underutilized and fenced-off sites that sit dormant while communities need ratables, jobs, and productive land use. The program described prior work including an event on revitalizing underutilized properties and research comparing New Jersey’s site remediation outcomes with other states.

The concept shared:

• Create a pilot program or statutory changes that allow certain low-threat sites to reach closure faster, without reopening standards debates.
• Focus on sites with low threat profiles, no sensitive receptors, and excluding complicated PFAS scenarios.
• Compare how Massachusetts handles closure and professional responsibility, then use that side-by-side evidence to support a New Jersey path.

The discussion made a point of language and politics: “risk-based” framing was described as a non-starter in the room being approached. The strategy is to stay tight to closure and redevelopment outcomes, using “low threat” language and case examples.

For NJ redevelopment corridors—from older industrial riverfront areas to rail-adjacent mixed-use zones—this is a subject with real economic weight. Faster, clearer closure frameworks can change financing decisions, redevelopment sequencing, and end-use feasibility.

Newark inauguration and the message behind it

A short but telling exchange covered the decision to hold inaugural events in Newark rather than the typical Trenton setting.

The consensus shared: it signaled a willingness to do things differently and to center visibility in a major city. For regulated industries, the bigger point is not ceremony—it’s the tone. A leadership team comfortable with breaking tradition can also be comfortable reshaping process.

The Next Big Marker: The First Budget

The program closed with a forward-looking topic that will matter to every regulated professional: the state budget.

Tony Russo framed it plainly: plans rise or fall on funding. A first budget address sets the year’s limits, especially with major baseline costs in pensions, education, and prior commitments. The discussion tied budget pressure to end-of-term spending decisions, the potential for tax policy debates, and the realities of a high-cost state trying to address affordability.

For environmental and redevelopment work, budget choices can influence:

• DEP staffing capacity and permit throughput
• grant programs and incentives
• enforcement posture and priorities
• investment signals for redevelopment and infrastructure

Takeaways For NJ, NY, PA, And CT Professionals

This CPES hot topic program delivered a fast, practical read on New Jersey’s early 2026 landscape:

• Energy affordability is driving early executive action and will stay tied to permitting and infrastructure choices.
• Regulatory reform is on the table, with a 90-day pause affecting items still in motion.
• A901 “dirty dirt” is now fixed legislatively, but regulatory follow-through is still ahead.
• A “Reason Act” concept is forming around getting low-threat sites to closure faster to unlock redevelopment.
• The state budget will be the next major signal for how ambitious the administration can be across agencies.

CPES will continue to bring these issues to the professionals who need to stay current, earn credits, and keep projects moving across New Jersey and the surrounding region.