Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Legislative Solution Proposed for NJ’s Stormwater Runoff Problems

Author: Daniel T. McKillop

Date: July 13, 2018

Key Contacts

Back

NJ Senate Advances Legislation to Address the State’s Aging Stormwater Runoff Systems

The 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.

New Legislation Proposed to Address NJ's Stormwater Runoff Issue
Photo courtesy of Liv Bruce (Unsplash.com)

Managing Stormwater Runoff

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. 

Senate Bill 1073 Establishes Stormwater Utilities

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:

  • Allocation of Fees: Local governments that collect fees and other charges would be required to remit to the State Treasurer annually an amount equal to five percent of all such fees and other charges, or $50,000, whichever amount is less. The State Treasurer would deposit these moneys into the “Clean Stormwater and Flood Reduction Fund,” which the Department of Environmental Protection (DEP) would use to fund planning, implementation, and coordination activities related to stormwater utilities in the State, water quality monitoring and assessment, point and non-point source water pollution reduction projects, implementation of the DEP’s stormwater management program, and a public education and outreach program relating to stormwater management.  To the extent surplus revenue is collected, the bill allows counties and municipalities to transfer up to five percent of the annual costs of operation of the stormwater utility to the local budget.
  • Enforcement: The stormwater legislation provides counties, municipalities, and authorities with several enforcement mechanisms, which are similar to the enforcement mechanisms that currently exist for water and sewer utilities. Specifically, interest would accrue on the unpaid fees and other charges; the unpaid balance and any interest accrued thereon would constitute a lien on the parcel which would be enforced in the same manner as delinquent property taxes and municipal charges; and the unpaid balance and any interest accrued thereon, together with attorney’s fees, could be recovered in a civil action.
  • Reporting Obligations: Senate Bill 1073 would require a county, municipality, or authority that establishes a stormwater utility to submit an annual report in a form and manner determined by the Division of Local Government Services in the Department of Community Affairs (DCA) and the DEP. The annual report would include, but need not be limited to, information on the stormwater utility’s service area; its schedule of fees, other charges, and credits; the number of properties subject to the utility’s fees and other charges, and the number of properties, broken down by land-use type, granted credits or exemptions; the total revenues collected from stormwater utility fees and other charges; the percentage of revenues from fees and other charges spent on the purposes authorized in the substitute; and a list of stormwater management projects implemented in the previous fiscal year.  Counties, municipalities, and authorities would be required to post the annual report on their Internet website for access by the public.
  • Bonds: Under the bill, a county, municipality, or authority that establishes a stormwater utility would be permitted to issue bonds for the purpose of raising funds to pay the cost of any part of the stormwater management system. In addition, they could also enter into a contract with a private entity for the planning, design, engineering, construction, improvement, maintenance, and operation of a stormwater management system.

Likelihood of Passage

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, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Business Mediation: An Overview and Practical Tips post image

Business Mediation: An Overview and Practical Tips

Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]

Author: Paul Grossman

Link to post with title - "Business Mediation: An Overview and Practical Tips"
Top 5 Causes Leading to Construction Defect Litigation post image

Top 5 Causes Leading to Construction Defect Litigation

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]

Author: Paul Grossman

Link to post with title - "Top 5 Causes Leading to Construction Defect Litigation"
How to Protect Your New Jersey Business When Going through a Divorce post image

How to Protect Your New Jersey Business When Going through a Divorce

The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]

Author: Jay McDaniel

Link to post with title - "How to Protect Your New Jersey Business When Going through a Divorce"
10 Common Issues in Franchise Disputes post image

10 Common Issues in Franchise Disputes

The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]

Author: Paul Grossman

Link to post with title - "10 Common Issues in Franchise Disputes"
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together post image

Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together

New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]

Author: Sean M. Pena

Link to post with title - "Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together"
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York post image

Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York

No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]

Author: Donald M. Pepe

Link to post with title - "Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!