
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: July 13, 2018
Partner
201-896-7115 dmckillop@sh-law.comThe New Jersey Senate recently advanced legislation that aims to address the state’s aging stormwater systems, which are designed to prevent runoff from causing pollution and flooding. The bill, Senate Bill No. 1073, would authorize municipalities and counties to establish stormwater utilities, which could then assess fees on property owners.
When stormwater runoff is carried from streets, parking lots, and farmland into local waterways, it often carries chemicals, heavy metals, fertilizers, and other pollutants along with it. Up to 60 percent of New Jersey’s existing water pollution is attributable to stormwater and nonpoint sources of pollution, according to some estimates. While New Jersey has a vast stormwater infrastructure, the state currently lacks a dedicated source of funding. As a result, systems undergo few upgrades and little maintenance once built.
While most agree that New Jersey must better maintain its stormwater systems, there is little consensus on how to do so. Senate Bill No. 1073 offers one solution. Under the proposed legislation, the governing body of any county or municipality may, by resolution or ordinance, establish a stormwater utility for the purposes of acquiring, constructing, improving, maintaining, and operating stormwater management systems. Similarly, the governing body or bodies of one or more municipalities that have established a municipal sewerage authority or utilities authority may, by ordinance or parallel ordinances, request that the authority establish a stormwater utility.
Local governments that establish a stormwater utility would be authorized to charge and collect reasonable fees and other charges to recover the utility’s costs for stormwater management. Under the proposed bill, these fees and other charges would be collected from the owner or occupant (or both) of any real property from which originates stormwater runoff which enters the stormwater management system or the waters of the State.
Under Senate Bill No. 1073, “[a]ny fee or other charge would be based on a fair and equitable approximation of the proportionate contribution of stormwater runoff from a real property.” In addition, several credits would be available for property owners. For instance, a partial fee reduction would be available for any property that has installed and is operating and maintaining stormwater best management practices that reduce, retain, or treat stormwater onsite. A credit would also be available to any property that has installed and is operating and maintaining green infrastructure onsite. Notably, land actively devoted to agriculture or horticulture would be exempt from any fees and other charges.
Below are several other key provisions of the bill:
Former Gov. Chris Christie previously vetoed a similar measure in New Jersey. However, the proposed bill has the support of the state Department of Environmental Protection and Governor Murphy is likely to be receptive to the measure should it reach his desk. The Environmental and Land Use Law practice group at Scarinci Hollenbeck will keep you posted on any updates.
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.
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