This bill mandates that businesses receiving economic development subsidies from the State of New Jersey forfeit a portion of those subsidies or make a payment to the State if they are found to be responsible for violating environmental laws. Specifically, if the Commissioner of Environmental Protection determines that a recipient business is responsible for an environmental incident, the business must choose between forfeiting 20% of the total value of the subsidies awarded for that tax year or paying the total costs incurred to address the environmental incident. These costs can include environmental remediation, housing relocation for affected residents, and mental health counseling, among others. The bill also stipulates that the Commissioner, in consultation with the State Treasurer and the New Jersey Economic Development Authority, will assess the costs associated with the environmental incident and notify the recipient business of the required forfeiture or payment.

Additionally, the bill establishes the Environmental Incident Recovery Fund, which will be funded by payments made by businesses under this legislation. The fund is intended to reimburse residents of communities impacted by environmental incidents for their incurred costs. If a recipient business fails to comply with the forfeiture or payment requirements, it will forfeit all economic development subsidies awarded to it and its affiliates until compliance is achieved. Future agreements for economic development subsidies will also include provisions that hold recipient businesses accountable under this bill.