When an industrial establishment closes or undergoes a qualifying transaction, the Industrial Site Recovery Act (ISRA) may require environmental investigation and, when appropriate, remediation before the matter can be completed. Early planning is essential.

Why do ISRA site closures become delayed?

Delays often result from late evaluations of ISRA applicability, incomplete environmental investigations, unresolved remediation issues, missing documentation, or failure to coordinate required NJDEP submissions.

How can businesses reduce delays?

Determine whether ISRA applies as early as possible, engage qualified environmental professionals, organize historical environmental records, develop realistic project timelines, and coordinate legal, technical, and regulatory requirements throughout the process.

What should businesses review before closing?

Review the facility’s operational history, applicable NAICS classification, prior environmental reports, remediation status, existing permits, and all NJDEP filing requirements that may affect the transaction or closure.

Common mistakes to avoid

Waiting until a closing date is scheduled to evaluate ISRA, assuming every facility is automatically subject to ISRA, overlooking historical site information, or underestimating the time required for environmental review.

Common misconceptions

ISRA compliance is not limited to contamination cleanup. The law establishes procedural obligations that may apply even before remediation issues are fully resolved.

Key Takeaways

  • Evaluate ISRA applicability early.
    • Organize environmental records.
    • Coordinate legal and technical professionals.
    • Build environmental review into transaction timelines.
    • Address compliance issues proactively.

When should you contact an attorney?

Consult an environmental attorney when planning an industrial facility closure, business sale, asset transfer, or other transaction that may trigger ISRA obligations or require coordination with NJDEP.

Contact The Law Office of Alan S. Ashkinaze

The Law Office of Alan S. Ashkinaze advises businesses, developers, buyers, and sellers throughout New Jersey on ISRA compliance, site remediation, environmental due diligence, regulatory compliance, and commercial transactions.