LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 5537

STATE OF NEW JERSEY

221st LEGISLATURE

DATED: DECEMBER 10, 2025

SUMMARY

Synopsis:	Permits fire departments to use certain Class B firefighting foam for one year after prohibition takes effect.
Type of Impact:	Potential shift in State expenditures; potential shift in local government expenditures and revenues.
Agencies Affected:	Department of Environmental Protection; municipalities.

Office of Legislative Services Estimate
One-Time Fiscal Impact	From January 8, 2026 to January 1, 2027
Potential Shift in State Expenditures	Indeterminate
Potential Shift in Local Expenditures	Indeterminate
Potential Shift in Local Revenues	Indeterminate

· The Office of Legislative Services (OLS) finds that this bill could potentially shift the timing of certain expenditures made by the State by up to one year because the bill would delay the prohibition on the use of firefighting foams containing perfluoroalkyl and polyfluoroalkyl substances (PFAS), with limited exceptions, to January 1, 2027.

· Current law requires the Department of Environmental Protection to establish a program to collect and dispose of the prohibited firefighting foam at the State’s expense.  Currently, there is $16.6 million allocated for the program. 

· As part of this program, participating fire departments are responsible for the cost of replacing the prohibited firefighting foams with compliant ones.  The Department of Environmental Protection is to provide grants to fully reimburse municipalities for these costs under certain circumstances.  Because the bill permits municipalities to continue to use Class B firefighting foam containing certain PFAS for up to an additional year, their replacement costs and any State reimbursements could also be pushed out to January 2027. 

BILL DESCRIPTION

      This bill delays by one year the prohibition on the use of certain class B firefighting foams containing intentionally added PFAS, with limited exceptions, by fire departments in the State until January 1, 2027.

      Under current law, the Department of Environmental Protection is responsible for establishing a collection and disposal program for certain class B firefighting foams containing intentionally added PFAS, the cost of which is to be borne by the State.  As part of the program, the department will also award grants to qualifying municipalities to cover the costs of replacement class B firefighting foams that are purchased to replace firefighting foams that are to become prohibited under current law.   A municipality may apply to the department for a grant, which shall be in an amount sufficient to fully reimburse the municipality for the costs of the replacement class B firefighting foam.  In order to be eligible for a grant, a municipality must demonstrate that the costs of the replacement firefighting foam exceed 5 percent of annual operating expenses of the municipality's fire department, for municipalities having a population in excess of 40,000 persons and a population density in excess of 3,000 persons per square mile, or 2.5 percent of annual operating expenses of the municipality's fire department, for all other municipalities.

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The OLS finds that this bill could potentially shift the timing of certain expenditures made by the State by up to one year because the bill would delay the prohibition on the use of firefighting foams containing PFAS, with limited exceptions, to January 1, 2027.

      Current law requires the Department of Environmental Protection to establish a program to collect and dispose of the prohibited firefighting foam at the State’s expense.  Currently, there is $16.6 million allocated for the program. 

      As part of this program, participating fire departments are responsible for the cost of replacing the prohibited firefighting foams with compliant ones.  The Department of Environmental Protection is to provide grants to fully reimburse municipalities for these costs under certain circumstances.  Because the bill permits municipalities to continue to use Class B firefighting foam containing certain PFAS for up to an additional year, their replacement costs and any State reimbursements could also be pushed out to January 2027.               

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.).