Evaluation of the administrative efficiency of environmental laws: A statistical analysis of the New Jersey ECRA processing times

Abstract

As environmental laws are enacted, and the U.S. and various state Departments of Environmental Protection (DEP's) establish procedures for enforcement, questions about government effectiveness in administering these laws naturally arise. The State of New Jersey has passed a law (Environmental Cleanup Responsibility Act — ECRA) that mandates the state DEP review all land transfers to ensure that sites meet environmental standards. New Jersey is the only state in the U.S. that has such a comprehensive law. Several articles have been written regarding the delays caused by this law [1–3]. The research in this paper analyzes the time it takes to process ECRA applications. Data obtained from the New Jersey Department of Environmental Protection and Energy (NJDEPE) files were statistically analyzed and forecasts made for the most serious cases (Low, Medium, and High Environmental Concern cases). Since many of the cases had not been settled, these data are considered censored [4]. Censored data refers to a data set where some of the data is actual while some data is yet to be determined. The results show that the NJDEPE takes from one to as many as four years on average to resolve a case. In the view of industrial realtors and developers these times are substantial. In the view of the NJDEPE these times are required to assure that the law is enforced properly. The research was funded by the Hazardous Substance Research Management Center (HSMRC). This type of analysis can be used to judge the relative effectiveness of the law in terms of the administrative time it takes to process ECRA applications.