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A1.<\/strong> The Spill Fund (N.J.A.C. 7:1J et seq.<\/em>) was established by the New Jersey Legislature when it enacted the Spill Compensation and Control Act (Spill Act) in 1976 (N.J.S.A. 58:10-23.11 et seq.). A courtesy copy of the rules and regulations can be viewed and downloaded at: CSRR Rules<\/a>.\u00a0 A copy of the Spill Act may also be reviewed at the State Library or some other libraries.<\/p>\n The purpose of the Spill Compensation Fund (Spill Fund) is to provide compensation for damages to property and persons resulting from the discharge of hazardous substances, including all cleanup and removal costs and all direct and indirect damages arising in connection with a discharge of a hazardous substance.\u00a0 However, if a responsible party is identified or known, then they remain strictly liable for all cleanup and removal costs.<\/p>\n Spill Fund revenues are generated primarily from a tax on the initial transfer of each barrel of petroleum and other hazardous substances from major facilities.\u00a0 Since its inception, the Fund has paid out over $86 million in claims to individuals, businesses and governmental entities for damages relating to potable well treatment systems, public waterline installations, remediation of contaminated sites, and other real and personal property damages caused by discharges of hazardous substances.\u00a0 Additionally, the Fund has been used to pay for publically funded cleanup projects and emergency response actions.<\/p>\n Back to the Questions<\/a><\/p>\n A2.<\/strong> The Fund pays for, but is not limited to: clean up and removal costs incurred by the Department for contaminated sites and compensation paid for damage claims relating to potable well treatment systems, public waterline installations, remediation of contaminated sites, and real and personal property damages caused by discharges of hazardous substances.\u00a0 Monies in the Fund are limited, therefore, eligible claims are paid in priority order.\u00a0 The Fund rules at N.J.A.C 7:1J-2.2(b) provides that the administrator prioritize the categories of claims that are eligible for compensation in the following order:<\/p>\n Back to the Questions<\/a><\/p>\n A3.<\/strong> Any individual, business or governmental entity can file a claim if they are damaged as a result of the discharge of a hazardous substance.<\/p>\n Back to the Questions<\/a><\/p>\n A4.<\/strong> Claims can be filed by contacting the Environmental Claims Administration (ECA) at 609-984-2076 or via email at srp_spillfund_gq@deptest.nj.gov<\/a> and requesting a Spill Fund claim application by mail or by downloading an application from the ECA Claims Forms<\/a> website.<\/p>\n Claims should be filed by Certified Mail Return Receipt Requested or other means that provides a receipt as proof of mailing. By law, all claims must be filed within one year of the date of discovery of damage. Therefore, proof of the date of mailing is essential.<\/p>\n Back to the Questions<\/a><\/p>\n A5.<\/strong> There are specific regulations, rules, and guidelines which govern the filing and processing of Spill Fund damage claims.<\/p>\n Residential Well Water:<\/i><\/strong> Claims for more complicated damages must include sufficient supporting evidence and documentation necessary for the ECA to evaluate the damages based on site specific conditions and information.\u00a0 Such proofs may include, but are not limited to: engineering reports, environmental site assessments, remedial investigations, remedial action workplans, cost estimates and invoices.<\/p>\n Property Value Diminution\u00a0<\/i><\/strong> The rules for property value diminution claims require, generally, that:<\/p>\n After reviewing the documents and information provided, the ECA may have real estate appraisals conducted which reflect the market value of the property with and without consideration to the discharge.<\/p>\n Claims for property value damages are difficult to evaluate and claimants must keep in mind that claims for property value diminution shall be eligible for compensation from the Fund only to the extent that such diminution is attributable to the discharge of a hazardous substance.\u00a0 It is the claimant\u2019s responsibility to assemble and provide all the documentation necessary to support the claim.<\/p>\n Back to the Questions<\/a><\/p>\n A6.<\/strong> Generally speaking there are certain limitations on claims imposed by law:<\/p>\n There are also provisions in the rules that may affect the filing of claims.\u00a0 One important provision is N.J.A.C. 7:1J-2.4(b), which provides that \u201cThe claimant shall exercise best efforts to obtain compensation from any other source from which compensation is reasonably likely to be available, including, without limitation, insurance policies, court awards, contractual rights, grants or other financial assistance\u2026and any other remedies provided under statutory or common law (including, without limitation, remedies with respect to a potentially responsible party under N.J.A.C. 7:1J-7).\u00a0 This means that before a claim can be considered for payment by the Spill Fund, claimants must exhaust other available remedies, including pursuing a settlement with a potential responsible party, if one is identified.<\/p>\n Back to the Questions<\/a><\/p>\n A7.<\/strong> Any person, including potential responsible parties, can contest a denial or amount or validity of a claim by requesting arbitration within 20 days of the date of receipt of the final written decision.\u00a0 The request must be in writing and contain relevant information, including the reasons for contesting the claim.\u00a0 Arbitration requests are referred to the Department\u2019s Office of Legal Affairs which refers the case to the Office of Administrative Law (OAL) for scheduling of an arbitration hearing.\u00a0 The Spill Fund is represented in OAL by the Office of the Attorney General.<\/p>\n Back to the Questions<\/a><\/p>\n A8.<\/strong> You do not need an attorney to file a claim or for the arbitration process.\u00a0 Filing simple potable well claims are straight forward and are usually resolved within a few weeks of receiving the pertinent information.\u00a0 More complex claims and claims that go through the arbitration process, especially if there is a potential responsible party, may benefit from attorney representation because of the complex legal and technical issues involved.\u00a0 However, there is no requirement to hire an attorney.<\/p>\n Back to the Questions<\/a><\/p>\n A9.<\/strong> When the ECA receives a claim, a preliminary review is performed to determine if anyone has been named in the claim application or is noted in the Department\u2019s files as being potentially responsible for the discharge that allegedly caused the claimed damages.\u00a0 In accordance with the Spill Act, if a PRP is named or identified, \u201cUpon receipt of any claim, the administrator shall as soon as practicable, inform all affected parties of the claim.\u201d \u00a0However, the Spill Act also provides that, \u201cBoards of arbitration shall be convened by the administrator when persons alleged to have caused the discharge, the administrator or other persons contest the validity or amount of damage claims or cleanup and removal costs presented to the fund for payment.\u201d\u00a0 This means that if anyone contests a claim, payment of the claim must be suspended until the claim matter is resolved through the arbitration process.\u00a0 It is also possible that the claim may not be paid after arbitration is completed, depending on the ruling.\u00a0 Therefore, it may be in the claimant\u2019s best interest to resolve the matter directly with a PRP rather than go through a court process.<\/p>\n Back to the Questions<\/a><\/p>\n A10.<\/strong> The filing and review of a Spill Fund claim can be as simple or complex as the nature of the claim itself.\u00a0 Most claims are quickly decided and paid or denied.\u00a0 However, environmental damages and the reading of the Spill Act can be complicated and open to interpretation.\u00a0 The ECA\/Spill Fund bases its rules, regulations and policies on its statutory responsibility and authority.\u00a0 Is also guided by numerous court decisions, which have been rendered by various courts over many years.\u00a0 For this reason, it is important that you review the rules at N.J.A.C 7:1J et seq. and if your situation warrants, the Spill Compensation and Control Act at N.J.S.A. 58:10-23.11 et seq.\u00a0 A courtesy copy of the rules and regulations can be viewed and downloaded at: CSRR Rules<\/a>.\u00a0 A copy of the Spill Act may be reviewed at the State Library or some other libraries.<\/p>\n It is also important to note that the Fund has limited resources for which the administrator, by law, has a fiduciary duty to manage in a proper and responsible manner.\u00a0 Accordingly, eligible claims are paid in the most cost-effective, environmentally sound way possible. For this reason, requests by claimants for a more aesthetically pleasing or expensive fix to a particular damage is usually denied.\u00a0 For example, claimants may request that more expensive or heavier duty equipment or materials be used in mitigation systems.\u00a0\u00a0 However, the Fund is mandated to pay for the least expensive solution, as long as the remediation method meets the applicable environmental standards.<\/p>\n As noted in Q7<\/a> and Q9<\/a>, a PRP has the right to contest the amount and validity of a claim.\u00a0 Therefore, if a PRP does exist for a particular claim, it may be in the claimant\u2019s best interest to negotiate and settle directly with the PRP because such a settlement is not constrained by limitations and requirements of the Spill Act or Fund rules and regulations. Moreover, direct settlement with a PRP can be more flexible and is not hindered by the often lengthy Spill Fund arbitration process.\u00a0 For instance, the Fund can only consider payment of a claim if there is an actual confirmed exceedance of a hazardous substance over the applicable standard.\u00a0 In a private agreement, a PRP may wish to provide a treatment system or payment to a resident as a precaution or gesture of good will, even if the applicable standard has not yet been exceeded.<\/p>\n Finally, it should be understood that filing a claim with the Fund does not constitute a right to compensation.\u00a0 All claimants must show \u201cby a preponderance of the evidence that the claim satisfies all requirements for eligibility under the Act and this chapter, and that the amount of the claim correctly reflects and is reasonable in relation to the damages which the claimant has sustained.\u201d<\/p>\n Back to the Questions<\/a><\/p>\n Disclaimer:<\/strong> These FAQs are intended to provide a general overview of the Spill Fund claims process. The Spill Act and\/or rules and regulations should be consulted for more specific information and guidance. Any questions should be directed to the ECA at 609-984-2076<\/span> or via email at srp_spillfund_gq@deptest.nj.gov<\/a>.<\/p>\n [\/vc_column_text][\/vc_column][vc_column offset=”vc_col-lg-3 vc_col-md-3″ el_class=”order-1 swap-on-mobile”][vc_column_text]<\/p>\n [\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row][vc_column offset=”vc_col-lg-9 vc_col-md-9″ el_class=”order-2″][breadcrumb-shortcode][vc_column_text css=””] Environmental Claims Administration (ECA) NJ Spill Compensation Fund (Spill Fund) Frequently Asked Questions (FAQs) Q1. What is the Spill Fund? Q2. What does the Spill Fund pay for? Q3. Who can file a claim? Q4. How do I file a claim? Q5. What do I need to do to qualify […]<\/p>\n","protected":false},"author":131,"featured_media":0,"parent":5156,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"fullwidth.php","meta":{"footnotes":""},"class_list":["post-5163","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/pages\/5163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/comments?post=5163"}],"version-history":[{"count":3,"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/pages\/5163\/revisions"}],"predecessor-version":[{"id":9246,"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/pages\/5163\/revisions\/9246"}],"up":[{"embeddable":true,"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/pages\/5156"}],"wp:attachment":[{"href":"https:\/\/deptest.nj.gov\/srp\/wp-json\/wp\/v2\/media?parent=5163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a>Q2. What does the Spill Fund pay for?<\/h5>\n
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<\/a>Q3. Who can file a claim?<\/h5>\n
<\/a>Q4. How do I file a claim?<\/h5>\n
<\/a>Q5. What do I need to do to qualify for Spill Fund compensation?<\/h5>\n
\nTypical residential contaminated well claims require a certified laboratory test indicating that the water does not meet the applicable drinking water standards for hazardous substances and requires installation of a treatment system. If the laboratory test is over the applicable standards, the claim for installation of the treatment system may be eligible for payment. The laboratory test fee may also be eligible for reimbursement. If public waterlines are available for hookup, claimants will be asked to provide three estimates from licensed plumbers for the cost to interconnect the property to the waterline. If no waterlines are available, claimants will be asked for three estimates from qualified water treatment vendors for the cost to install, monitor and maintain an appropriate point-of-entry treatment (POET) system. In some cases, claimants will be asked to provide cost estimates for both, interconnection to the waterline and POET installation.\u00a0 Additional information for claims related to contaminated drinking water wells can be downloaded at:\u00a0 The NJ Spill Compensation Fund Claims Program (Spill Fund)<\/a>.<\/p>\n
\nExcept for claims settled under N.J.A.C. 7:1J-4.6 (legal inability to sell) or 4.7 (emergency relocation), claims for diminution of property value are not eligible for compensation by the Fund unless the claimant has sold the property and the administrator determines that the claimant’s sale was in good faith based upon the Department\u2019s appraisals, and documents and information submitted by the claimant.\u00a0 In addition, a claim for property value diminution is not eligible for compensation where a water treatment system has been installed or the property has been connected to the public water supply system at the expense of the Fund.<\/p>\n\n
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<\/a>Q6. Are there any limitations on the filing of claims?<\/h5>\n
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<\/a>Q7. Can I appeal a claim decision if I disagree?<\/h5>\n
<\/a>Q8. Do I need an attorney to file a claim or to contest a claim?<\/h5>\n
<\/a>Q9. What if there is a potentially responsible party (PRP) for the discharge?<\/h5>\n
<\/a>Q10. What else should I know about the Spill Fund claims process?<\/h5>\n
Topics<\/h5>\n
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