LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 1421

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: DECEMBER 26, 2025

 

 

SUMMARY

 

Synopsis:

"Protecting Against Forever Chemicals Act"; establishes requirements, prohibitions, and programs for regulation of perfluoroalkyl and polyfluoroalkyl substances (PFAS).

Type of Impact:

Annual State expenditure and revenue increases.

Agencies Affected:

Department of Environmental Protection; Department of Law and Public Safety.

 

 

Office of Legislative Services Estimate

Fiscal Impact

FY 2027 

FY 2028

Thereafter

 

State Cost Increase

Up to $5 million

Indeterminate

Indeterminate

 

State Revenue Gain

No impact

No impact

Indeterminate

 

 

·       The Office of Legislative Services (OLS) concludes that this bill would result in a State expenditure increase of up to $5.0 million in the first year of implementation and indeterminate cost increases thereafter.  The bill appropriates $500,000 to the Department of Law and Public Safety for implementing certain of the bill’s provisions and $4.5 million to the Department of Environmental Protection to carry out a PFAS source reduction program and conduct PFAS-related research, monitoring and testing.   

·       If the full $5.0 million appropriation is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $5.0 million is exhausted.

·       The OLS finds there will be annual State cost increases to conduct enforcement activities and State revenue increases from penalties collected for violations of the bill’s provisions.  The OLS notes these increases are indeterminate because it cannot predict the frequency of violations nor the ensuing enforcement actions and penalty collections.

 

BILL DESCRIPTION

 

      This bill would prohibit the sale of certain products containing intentionally added perfluoroalkyl and polyfluoroalkyl substances (PFAS), establish a source reduction program concerning the proper management of PFAS, and appropriate money for the source reduction program and PFAS-related research. As defined in the bill, “PFAS” means substances that include any member of the class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

      Through the bill, the Department of Environmental Protection would be required to establish, no later than one year after the bill’s effective date, a source reduction program to reduce the presence of PFAS in the State’s air, water, and soil by encouraging the proper management of materials that contain PFAS and the use of safer alternatives. The bill would further require the department to conduct PFAS-related research and comprehensive monitoring and testing of the presence and impact of PFAS on the environmental media within the State, including air, ground and surface water, biota, sediment, and soil. No later than two years after the bill’s effective date, and annually thereafter, the department would be required to submit a report to the Governor and the Legislature summarizing their research findings and activities and providing recommendations for programs, policies, and legislation to address the presence of PFAS in the State.

      Under the bill, the Division of Consumer Affairs in the Department of Law and Public Safety would have the authority to audit or investigate a manufacturer of a product covered under the bill to assess the manufacturer's compliance with the bill’s provisions.  Violations of the bill would be punishable by civil action, civil administrative penalty, and civil penalties, which would be enforced by the division.

      The bill would appropriate $4.5 million to the Department of Environmental Protection, including $2.25 million for carrying out the source reduction program and $2.25 million for conducting PFAS-related research, monitoring, and testing.  The department would be required to annually request additional funds sufficient to conduct the air, water, and soil testing and PFAS-related research required under the act.  Finally, the bill would appropriate $500,000 to the Department of Law and Public Safety to implement certain of the bill’s provisions, including monitoring manufacturers’ compliance with the product labelling requirements of the bill. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that this bill would result in a State expenditure increase of up to $5.0 million in the first year of implementation and indeterminate cost increases thereafter.  The bill appropriates $500,000 to the Department of Law and Public Safety for implementing certain of the bill’s provisions and $4.5 million to the Department of Environmental Protection to carry out a PFAS source reduction program and conduct PFAS-related research, monitoring and testing.  If the full $5.0 million appropriation is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $5.0 million is exhausted.

      The OLS finds there will be annual State cost increases to conduct enforcement activities and State revenue increases from penalties collected for violations of the bill’s provisions.  The OLS notes these increases are indeterminate because it cannot predict the frequency of violations nor the ensuing enforcement actions and penalty collections.

      As indicated in public testimony on the bill, legislation in other states offers a reference point for the costs of establishing a PFAS mitigation program. For reference only, the OLS notes that fiscal analyses of Connecticut’s Senate Bill 292 of the 2024-2025 session and Colorado’s House Bill 1345 of the 2022-2023 session, which was subsequently signed into law, found that the respective bills would result in annual state expenditure increases, including for additional staff. 

 

 

Section:

Environment, Agriculture, Energy, and Natural Resources

Analyst:

Anna Heckler

Assistant Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).