This bill mandates that businesses awarded economic development subsidies by a State public body must forfeit a portion of those subsidies or make a payment to the State if they are found to be in violation of the State's 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 economic development 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.

Additionally, the bill establishes the Environmental Incident Recovery Fund, which will receive payments from businesses that opt to pay instead of forfeiting subsidies. This fund is intended to reimburse residents of communities impacted by environmental incidents for their incurred costs. The bill also stipulates that if a recipient business fails to comply with the forfeiture or payment requirements, it will lose all economic development subsidies awarded to it and its affiliates until compliance is achieved. Future agreements for economic development subsidies must include a provision that subjects the recipient business to these new requirements.