New Jersey Financial Responsibility regulations & environmental compliance analysis

New Jersey Financial Responsibility: What you need to know

Governing Law and Regulations

Hazardous waste treatment, storage, and disposal facilities (TSDFs): New Jersey Administrative Code (NJAC) 7:1E-4.4, NJAC 7:26G-8.1, and NJAC 7:26G-9.1

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Solid waste sanitary landfills: NJAC 7:26-2A.9

Underground injection wells (UIWs): NJAC 7:14A-8.10

Underground storage tanks (USTs): NJAC 7:14B-2.2 and NJAC 7:14B-15.1 to 7:14B-15.4

Wetlands: NJAC 7:7A-15.13

Regulatory Agencies

New Jersey Department of Environmental Protection (DEP)

U.S. Environmental Protection Agency (EPA) Region 2

See national section for basic information and federal regulations.

Comparison: State vs. Federal

Rules. New Jersey generally follows the federal financial responsibility requirements, with additional requirements for certain activities in wetlands, underground injection wells (UIWs), underground storage tanks (USTs), and hazardous waste treatment, storage and disposal facilities (TSDFs). See the national section FINANCIAL RESPONSIBILITY for federal rule guidance.

Administration and enforcement. The DEP is responsible for the administration and enforcement of the state's financial responsibility rules. Both the DEP and the EPA regulate UST facilities in New Jersey.

State Requirements


In New Jersey, there are several financial assurance mechanisms that owners or operators may use alone, or in combination, to demonstrate that they meet financial responsibility requirements sufficient to cover costs of cleanup of environmental damage caused by a spill or a leak, and third-party claims of personal injury or property damage.

Although specific rules should be reviewed to determine allowable instruments, financial mechanisms generally include:

  • Financial test
  • Guarantee
  • Insurance
  • Letter of credit
  • State funds
  • Surety bond

Read more about Financial Responsibility