Des Champs Laboratories, Inc. v. Martin
427 N.J. Super. 84
| N.J. Super. Ct. App. Div. | 2012Background
- ISRA and SRRA regulate de minimis quantity exemptions (DQEs) for sites with small amounts of hazardous substances.
- Regulations N.J.A.C. 7:26B-5.9 were amended in 2012 to require a DQE applicant to certify, to the best of knowledge, that the site is not contaminated.
- Des Champs Laboratories operated an industrial establishment at Okner Parkway, Livingston, 1982–1996; owner(s) later sold to intervenor R & K Associates.
- In 1997 the DEP issued a no further action letter; in 2008 contamination findings prompted rescission of that action and remedial requirements.
- Appellant submitted a DQE affidavit in 2009 asserting a de minimis quantity; DEP denied the DQE in 2011
- The court held the DEP lacked statutory authority to impose the contamination-free certification condition and invalidated the challenged regulations, remanding for reconsideration without that condition.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May DQE requirements compel contamination-free certification? | Des Champs—ISRA/SRRA do not authorize such a certification. | DEP contends regulations promote cleanup and align with ISRA/SRRA goals. | No; unlawful under ISRA/SRRA, invalidated. |
| Are N.J.A.C. 7:26B-5.9 provisions invalid as ultra vires? | Regulations improperly expand statutory duties beyond ISRA. | Regulations impliedly authorized to streamline regulation. | Invalid; Department exceeded delegated authority. |
| Does cessation or transfer liability require a contamination-free condition to obtain a DQE? | DQE should relieve modest sites from broad remediation burdens. | Contamination status is relevant to efficient regulation. | Not permitted; no such statutory basis. |
Key Cases Cited
- In re Herrmann, 192 N.J. 19 (N.J. 2007) (court overturns arbitrary agency action; deference to agency but not beyond statutory bounds)
- In re Taylor, 158 N.J. 644 (N.J. 1999) (judicial review of purely legal agency interpretations)
- U.S. Bank v. Hough, 210 N.J. 187 (N.J. 2012) (agency interpretations must have statutory support; deference limited by statutory language)
- In re Adoption of N.J.A.C. 7:26B, 128 N.J. 442 (N.J. 1992) (history of environmental regulation and de minimis exemptions in ISRA context)