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 in violation of 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 outlines the process for determining these costs and requires the Commissioner to notify the business of the decision.

Additionally, the bill establishes the Environmental Incident Recovery Fund, which will be funded by payments made by businesses in violation of environmental laws. This fund is intended to reimburse residents of communities impacted by environmental incidents for costs incurred due to those incidents. If a recipient business fails to comply with the requirements of the bill, it will forfeit 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 the stipulations of this bill.