Limitation on NJDEP Oversight Fees
Alfred E. Moffit, III CPG, Director 

Are you aware of a law New Jersey Department of Environmental Protection (NJDEP) follows that places a cap on the amount of oversight costs (fees) NJDEP can charge for a specific site?  EWMA has negotiated a refund for several clients due to excess oversight costs based on this law and other reasons. 

NJDEP typically issues invoices on a quarterly basis for oversight costs.  As stated in P.L. 2002 Chapter 37 supplementing NJSA 58:10B-1 et al., there is a 7.5% cap on the oversight costs that can be assessed by NJDEP as of July 1, 2002.  This 7.5% cap is reviewed upon issuance of the no further action (NFA) for the case but only if the consultant, attorney, or client bring this information to NJDEP’s attention.   Our clients are also receiving invoices with old or duplicate charges for oversight fees which we have successfully challenged and obtained up to 30% reduction.

On a recent case, EWMA informed NJDEP that, since July 1, 2002, NJDEP oversight fees were $23,440.95 while environmental costs associated with this project during the same timeframe were $34,566.36.  Since the site received NFA, the maximum amount of oversight fees under this regulation should only be $2,592.48 (7.5% of $34,566.36).  EWMA provided NJDEP with documentation supporting this claim to obtain a refund for the client.

EWMA strongly recommends that, upon receiving the NFA letter or Remedial Action Outcome (RAO) the NJDEP oversight invoices from 2002 on be reviewed to determine if this 7.5% cap applies to your project.  The impact of the LSRP program has yet to be determined on oversight fees as they can still be assessed for portions of a project. 

Mr. Moffit is Director, Site Assessments and Compliance Services for EWMA in the Parsippany, NJ office.  For more information, please call 800-969-3159 ext. 144 or visit our website at www.ewma.com. 1232