The Industrial Site Recovery Act (ISRA) affects many industrial establishments involved in business sales, transfers, closures, and other qualifying events. Evaluating ISRA requirements early allows businesses to incorporate environmental compliance into overall project planning.

Why is early ISRA planning important?

Early planning helps determine whether ISRA applies, identify required environmental investigations, coordinate remediation activities when necessary, and integrate regulatory requirements into financing, redevelopment, and transaction schedules.

What should businesses evaluate?

Businesses should review operational history, applicable NAICS classifications, prior environmental reports, existing permits, remediation status, historical site uses, and any NJDEP filing requirements that could affect the project.

How can businesses reduce environmental risk?

Maintain organized environmental records, conduct appropriate due diligence, engage qualified environmental professionals such as Licensed Site Remediation Professionals (LSRPs) when appropriate, coordinate with legal counsel, and address potential compliance issues before major business decisions are finalized.

Common mistakes to avoid

Waiting until a transaction is nearing closing, assuming ISRA automatically applies or never applies, overlooking historical environmental conditions, or failing to coordinate legal and technical professionals throughout the project.

Common misconceptions

ISRA planning is not only for contaminated properties. Early evaluation helps businesses determine whether the law applies and identify potential compliance obligations before they affect project timelines.

Key Takeaways

  • Evaluate ISRA applicability early.
  • Conduct environmental due diligence.
  • Coordinate legal and technical professionals.
  • Incorporate environmental planning into project schedules.
  • Address compliance obligations proactively.

When should you contact an attorney?

Consult an environmental attorney before buying, selling, transferring, redeveloping, or closing an industrial establishment that may be subject to ISRA, or whenever environmental compliance issues could affect a business transaction.

Contact The Law Office of Alan S. Ashkinaze

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