N.J. Stat. tit. 40A, ch. 26B

in effect

N.J. Stat. § 40A:26B-1 Short title.

1. Sections 1 through 18 of P.L.2019, c.42 (C.40A:26B-1 et seq.) shall be known and may be cited as the "Clean Stormwater and Flood Reduction Act." L.2019, c.42, s.1.

N.J. Stat. § 40A:26B-2 Findings, declarations relative to stormwater utilities.

2. a. The Legislature finds and declares that: (1) The State of New Jersey faces an extensive set of problems due to inadequate stormwater infrastructure and management, and these problems directly affect the health, safety, economic well-being, and quality of life of New Jersey residents. (2) When storms occur, rainwater runs off of impervious surfaces such as roads, roofs, and parking lots, and into stormwater management systems and waterways. This stormwater carries with it oil, pesticides, other chemicals, sediments, and bacteria that may contaminate State waters, potentially making them unsafe for drinking, fishing, and recreational purposes. It is estimated that up to 60 percent of the State's existing water pollution is attributable to stormwater and nonpoint sources of pollution. (3) Additionally, if a stormwater management system is not in place or is not able to adequately absorb, capture, or convey stormwater, then runoff in large volume and force may cause flooding and damage to homes, businesses, and property. A projected increase in sea level rise and more frequent and severe storms are expected to only increase flooding. (4) New Jersey, in particular, is prone to pollution and flooding problems, with over 10 percent of its land area covered with impervious surfaces. These problems are particularly acute in the 21 urban New Jersey municipalities that have combined sewer systems, which routinely overflow and discharge untreated wastewater and stormwater into the State's waters, contributing to water pollution and impairing the use and enjoyment of those waters. (5) Stormwater infrastructure in New Jersey currently lacks a dedicated source of funding and, consequently, receives few upgrades and little maintenance once built. In some instances, stormwater infrastructure goes unmonitored and unattended until it breaks down; in other instances, it is simply inadequate to manage stormwater. (6) Establishment of local stormwater utilities presents an effective management strategy to address stormwater issues. Currently, there are more than 1,500 stormwater utilities operating in 40 states across the country and the District of Columbia. Stormwater utilities are often authorized to assess fair and equitable fees to fund the development, improvement, and management of stormwater infrastructure. b. The Legislature therefore determines that it is in the public interest to authorize the establishment of local stormwater utilities, and to allow those utilities to assess fees that are based on a fair and equitable approximation of the proportionate contribution of stormwater runoff from any real property, in order to finance the improvement of the State's stormwater infrastructure, better control water pollution and flooding, restore and enhance the quality of the State's waters, and protect the public health, safety, and welfare and the environment. The Legislature further determines that green infrastructure is an effective approach to managing stormwater because it reduces and treats stormwater at its source while delivering other environmental, social, and economic benefits. The use of green infrastructure should be encouraged and, where appropriate, required to help decrease pollutant loads and runoff volumes to receiving waters. L.2019, c.42, s.2.

N.J. Stat. § 40A:26B-3 Definitions relative to stormwater utilities.

3. As used in sections 1 through 18 of P.L.2019, c.42 (C.40A:26B-1 et seq.): "Authority" means a county or municipal sewerage authority established pursuant to P.L.1946, c.138 (C.40:14A-1 et seq.), a county or municipal utilities authority established pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.), or a county improvement authority established pursuant to P.L.1960, c.183 (C.40:37A-44 et seq.). "Department" means the Department of Environmental Protection. "Division" means the Division of Local Government Services in the Department of Community Affairs. "Green infrastructure" means a stormwater management system that treats stormwater runoff through infiltration into subsoil, treats stormwater runoff through filtration by vegetation or soil, or stores stormwater runoff for reuse. "New Jersey Pollutant Discharge Elimination System permit" means any permit issued by the department pursuant to section 6 of P.L.1977, c.74 (C.58:10A-6). "Stormwater" means water resulting from precipitation, including rain and snow, which runs off the land's surface, is transmitted to the subsurface, or is captured by separate storm sewers or other sewage or drainage facilities, or conveyed by snow removal equipment. "Stormwater management system" means any equipment, plant, structures, machinery, apparatus, management practices, design practices, planning activities, or land, or any combination thereof, acquired, used, constructed, implemented, or operated to convey stormwater, control or reduce stormwater runoff and associated pollutants or flooding, induce or control the infiltration of groundwater recharge of stormwater, or eliminate illicit or illegal nonstormwater discharges into stormwater conveyances. L.2019, c.42, s.3.

N.J. Stat. § 40A:26B-4 Governing body may establish stormwater utility.

4. a. The governing body of any county or municipality may, by resolution or ordinance, as appropriate, establish a stormwater utility for the purposes of acquiring, constructing, improving, maintaining, and operating stormwater management systems in the county or municipality, consistent with State and federal laws, rules, and regulations. b. Any stormwater utility that is established pursuant to this section shall be considered a "municipal public utility" for the purposes of Title 40A of the New Jersey Statutes. Notwithstanding any other law to the contrary, a county or municipality may establish a stormwater utility as a new department within the county or municipality, or as an operation of an existing department or departments having responsibility and control over stormwater management systems or portions thereof. c. A county or municipality that establishes a stormwater utility pursuant to this section shall submit a copy of the resolution or ordinance adopted pursuant to subsection a. of this section to the Department of Environmental Protection and the Division of Local Government Services in the Department of Community Affairs. The establishment of a stormwater utility pursuant to this section shall not be construed to modify or otherwise affect a county or municipality's obligations under any New Jersey Pollutant Discharge Elimination System permit or any other rule, regulation, order, or permit issued by the department. L.2019, c.42, s.4.

N.J. Stat. § 40A:26B-5 Establishment of stormwater utility by municipal authorities.

5. a. The governing body or bodies of one or more municipalities that have established a municipal sewerage authority pursuant to P.L.1946, c.138 (C.40:14A-1 et seq.) or a municipal utilities authority pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.) may, by ordinance, or parallel ordinances, as appropriate, request that the authority establish a stormwater utility for the purposes of acquiring, constructing, improving, maintaining, and operating stormwater management systems in the municipality or municipalities, consistent with State and federal laws, rules, and regulations. b. Upon the request of a municipality or municipalities, an authority may establish a stormwater utility pursuant to a service agreement between the authority and the requesting municipality or municipalities, in accordance with the provisions of P.L.2019, c.42 (C.40A:26B-1 et al.) and the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.). The agreement shall set forth the powers, duties, and functions of the stormwater utility and any other matters that may be necessary for the agreement. A stormwater utility established pursuant to this section shall be considered a separate operation of the authority to be budgeted and accounted for separately. c. An authority that establishes a stormwater utility pursuant to this section shall submit a copy of the service agreement to the Department of Environmental Protection and the Division of Local Government Services in the Department of Community Affairs. A municipality that contractually delegates to an authority any of its responsibilities under any New Jersey Pollutant Discharge Elimination System permit or any other rule, regulation, order, or permit issued by the department shall remain responsible for compliance with any such rules, regulations, orders, or permits if the authority fails to implement the requirements thereof. L.2019, c.42, s.5.

N.J. Stat. § 40A:26B-6 Establishment of stormwater utility by county authorities.

6. a. The governing body of any county that has established a county sewerage authority pursuant to P.L.1946, c.138 (C.40:14A-1 et seq.), a county utilities authority pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.), or a county improvement authority pursuant to P.L.1960, c.183 (C.40:37A-44 et seq.) may, by resolution, request that the authority establish a stormwater utility for the purposes of acquiring, constructing, improving, maintaining, and operating stormwater management systems in the county, consistent with State and federal laws, rules, and regulations. b. Upon the request of a county, an authority may establish a stormwater utility pursuant to a service agreement between the authority and the requesting county, in accordance with the provisions of P.L.2019, c.42 (C.40A:26B-1 et al.) and the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.). The agreement shall set forth the powers, duties, and functions of the stormwater utility and any other matters that may be necessary for the agreement. A stormwater utility established pursuant to this section shall be considered a separate operation of the authority to be budgeted and accounted for separately. c. An authority that establishes a stormwater utility pursuant to this section shall submit a copy of the service agreement to the Department of Environmental Protection and the Division of Local Government Services in the Department of Community Affairs. A county that contractually delegates to an authority any of its responsibilities under any New Jersey Pollutant Discharge Elimination System permit or any other rule, regulation, order, or permit issued by the department shall remain responsible for compliance with any such rules, regulations, orders, or permits if the authority fails to implement the requirements thereof. L.2019, c.42, s.6.

N.J. Stat. § 40A:26B-7 Shared services agreement for stormwater management system.

7. a. The governing bodies of any two or more municipalities may, pursuant to the provisions of P.L.2007, c.63 (C.40A:65-1 et al.), enter into a shared services agreement to provide for the construction, improvement, maintenance, or operation of stormwater management systems in the municipalities, consistent with State and federal laws, rules, and regulations. b. The governing body or bodies of one or more municipalities, and the county in which the municipality or municipalities are located may, pursuant to the provisions of P.L.2007, c.63 (C.40A:65-1 et al.), enter into a shared services agreement to provide for the construction, improvement, maintenance, or operation of stormwater management systems in the municipalities, consistent with State and federal laws, rules, and regulations. c. Any county or municipality that enters into a shared services agreement pursuant to this section shall submit a copy of the agreement to the Department of Environmental Protection and the Division of Local Government Services in the Department of Community Affairs. L.2019, c.42, s.7.

N.J. Stat. § 40A:26B-8 Collections of fees and charges.

8. a. Any county, municipality, or authority that establishes a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) may charge and collect reasonable fees and other charges to recover the stormwater utility's costs for stormwater management. These fees and other charges may be charged to and collected from the owner or occupant, or both, of any real property from which originates stormwater runoff which directly or indirectly enters the stormwater management system or the waters of the State. The owner of any such real property shall be liable for and shall pay such fees and charges to the stormwater utility at the time when and place where the fees and charges are due and payable. b. Any fee or other charge that a county, municipality, or authority charges and collects pursuant to this section shall be based on a fair and equitable approximation of the proportionate contribution of stormwater runoff from a real property. c. In establishing fees and other charges pursuant to this section, a county, municipality, or authority shall provide for: (1) a partial fee reduction in the form of a credit for any property that maintains and operates a stormwater management system that complies with the State and local stormwater management standards that were in place at the time the system was approved and that effectively reduces, retains, or treats stormwater onsite; (2) an additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining current stormwater best management practices that reduce, retain, or treat stormwater onsite and which are approved by the county, municipality, or authority; (3) an additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining green infrastructure that reduces, retains, or treats stormwater onsite and which exceeds any requirements for green infrastructure that may be applicable to that property under any rule or regulation adopted by the Department of Environmental Protection or the local stormwater control ordinance; and (4) an exemption from fees and other charges for land actively devoted to agricultural or horticultural use that is valued, assessed, and taxed pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.). d. Any county, municipality, or authority that collects fees and charges pursuant to this section shall remit to the State Treasurer annually an amount equal to five percent of all such fees and charges collected, or $50,000, whichever amount is less. The State Treasurer shall deposit these moneys into the "Clean Stormwater and Flood Reduction Fund" established pursuant to section 17 of P.L.2019, c.42 (C.40A:26B-17). e. Except as provided in section 5 of P.L.1983, c.111 (C.40A:4-35.1) or section 1 of P.L.2004, c.87 (C.40A:5A-12.1), as applicable, a county, municipality, or authority shall only use fees and other charges collected pursuant to this section to pay for or recover all or a portion of the cost of the following: (1) initial establishment of a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) and ongoing related administrative expenses; (2) capital expenditures, including planning, design, engineering, acquisition, construction, and improvement of a stormwater management system; (3) operation and maintenance expenditures of a stormwater management system; (4) development and implementation of an asset management program for a stormwater management system; (5) development and implementation of a stormwater management plan and stormwater control ordinances pursuant to section 1 of P.L.1981, c.32 (C.40:55D-93); (6) any action required pursuant to any New Jersey Pollutant Discharge Elimination System permit; (7) development and implementation of any long-term control plan to mitigate combined sewer overflows pursuant to State or federal law, rule, regulation, permit, or consent decree; (8) monitoring, inspection, and enforcement activities to carry out the purposes of P.L.2019, c.42 (C.40A:26B-1 et al.); (9) public education and outreach related to stormwater management; and (10) any other purpose related to stormwater management as may be authorized by the department, the Division of Local Government Services in the Department of Community Affairs, or the Local Finance Board pursuant to rules, regulations, or permits. f. In establishing fees and other charges and appropriate credits pursuant to this section, a county, municipality, or authority shall consult the guidance manual developed pursuant to section 16 of P.L.2019, c.42 (C.40A:26B-16), and other best practice guidance manuals published by industry organizations. L.2019, c.42, s.8.

N.J. Stat. § 40A:26B-9 Unpaid fees, charges.

9. In the event that a stormwater utility fee or charge of any county, municipality, or authority with regard to any parcel of real property is not paid when due: a. interest shall accrue and be due to the county or authority on the unpaid balance at the rate of one and one half percent per month until such fees and charges, and the interest thereon, shall be fully paid to the county or authority; interest shall accrue and be due to the municipality on the unpaid balance at a rate not to exceed that permitted under R.S.54:4-67; b. the unpaid balance thereof and all interest accruing thereon shall be a lien on such parcel enforced in the same manner as delinquent property taxes and municipal charges. Such lien shall be superior and paramount to the interest in such parcel of any owner, lessee, tenant, mortgagee, or other person except the lien of State taxes and property taxes and shall be on a parity with and deemed equal to the lien on such parcel of State taxes and property taxes; and c. the unpaid balance thereof and all interest accrued thereon, together with attorneys' fees and costs, may also be recovered by the county, municipality, or authority in a civil action, but not in lieu of enforcement as a delinquent municipal charge. L.2019, c.42, s.9.

N.J. Stat. § 40A:26B-10 Issuance of bonds.

10. A county, municipality, or authority that establishes a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) may provide, by ordinance or resolution, as appropriate, at one time, or from time to time, for the issuance of bonds for the purpose of raising funds to pay the cost of any part of the stormwater management system. The bonds shall be issued pursuant to each entity's respective authority under the "Local Bond Law," N.J.S.40A:2-1 et seq., P.L.1946, c.138 (C.40:14A-1 et seq.), P.L.1957, c.183 (C.40:14B-1 et seq.), P.L.1960, c.183 (C.40:37A-44 et seq.), or any other applicable law. L.2019, c.42, s.10.

N.J. Stat. § 40A:26B-11 Posting of report on website; contents.

11. a. A county, municipality, or authority that establishes a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) shall, within one year after establishment of the utility, and each year thereafter, prepare and submit to the Division of Local Government Services in the Department of Community Affairs and the Department of Environmental Protection a report in the form and manner determined by the department and the division pursuant to subsection b. of this section. Each county, municipality, or authority shall post the annual report on its Internet website. b. Within 18 months after the effective date of this section, the division, in consultation with the department, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations outlining the substantive requirements for, and the form and manner of, the annual report required pursuant to subsection a. of this section. The annual report shall include, but need not be limited to, information on: (1) the stormwater utility's service area; (2) the schedule of fees, other charges, and credits that the county, municipality, or authority has established; (3) the number of properties subject to the stormwater utility's fees and other charges, and the number of properties of each land use type, including but not limited to residential, commercial, and industrial, that have been granted credits or exemptions from the fee, and the cumulative value of credits that have been granted to properties of each land use type; (4) the total revenues from stormwater utility fees and other charges collected by the county, municipality, or authority; (5) the percentage and amount of revenues from fees and other charges spent on each of the purposes authorized in subsection e. of section 8 of P.L.2019, c.42 (C.40A:26B-8); and (6) all stormwater management projects implemented in the previous fiscal year. L.2019, c.42, s.11.

N.J. Stat. § 40A:26B-12 Acquisitions relative to stormwater utility.

12. a. A county, municipality, or authority that establishes a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) may acquire by gift, grant, purchase, or condemnation, or in any other lawful manner, any privately-owned stormwater management system, or any real property necessary for the construction, improvement, operation, or maintenance of a stormwater management system. b. If a county, municipality, or authority requires any payment as a condition of, or in connection with, assuming ownership, operation, or maintenance of any privately-owned stormwater management system, the payment shall not exceed the costs attributable to the ownership, operation, or maintenance of that stormwater management system. L.2019, c.42, s.12.

N.J. Stat. § 40A:26B-13 Existing stormwater management systems, dedication.

13. a. Notwithstanding the provisions of section 12 of P.L.2019, c.42 (C.40A:26B-12), the owner of a stormwater management system that complies with the State and local stormwater management standards that were in place at the time the system was approved may retain ownership and responsibility for the operation and maintenance of the system, or offer to dedicate the system to the county, municipality, or authority. The county, municipality, or authority may accept the dedication of, and assume operation and maintenance responsibility for, the stormwater management system. b. Any person who dedicates a stormwater management system to a county, municipality, or authority pursuant to this section shall still be liable for paying any applicable stormwater utility fee imposed pursuant to section 8 of P.L.2019, c.42 (C.40A:26B-8). L.2019, c.42, s.13.

N.J. Stat. § 40A:26B-14 Contracts with private entities.

14. A county, municipality, or authority that establishes a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) may, pursuant to the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), enter into a contract with a private entity for the planning, design, engineering, construction, improvement, maintenance, and operation of a stormwater management system. L.2019, c.42, s.14.

N.J. Stat. § 40A:26B-15 Rules, regulations relative to wages; financial assistance.

15. Each county, municipality, and authority shall adopt rules and regulations requiring that not less than the prevailing wage rate be paid to workers employed in the performance of any construction contract undertaken in connection with financial assistance provided for the construction of a stormwater management system under P.L.2019, c.42 (C.40A:26B-1 et al.). The prevailing wage rate shall be the rate determined by the Commissioner of Labor pursuant to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.). For the purposes of this section, "financial assistance" means any loan, bond, loan guarantee, grant, incentive, tax exemption, or other financial assistance approved, funded, authorized, administered, or provided by the municipality, county, or authority in connection with the construction of a stormwater management system. L.2019, c.42, s.15.

N.J. Stat. § 40A:26B-16 Stormwater utility guidance manual.

16. a. Within 18 months after the effective date of this section, the Department of Environmental Protection, in consultation with the Board of Public Utilities, the Division of Local Government Services in the Department of Community Affairs, and stakeholders as the department deems appropriate, shall develop a stormwater utility guidance manual. The department shall periodically update the guidance manual as the department deems appropriate. The guidance manual shall include, but need not be limited to: (1) technical assistance for counties, municipalities, and authorities seeking to establish a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.); (2) factors for counties, municipalities, and authorities to consider when establishing and revising stormwater utility fees and other charges and appropriate credits; (3) information on how to develop an asset management program for a stormwater management system; and (4) information on how counties, municipalities, and authorities can conduct public education and outreach related to stormwater management. b. Development of the stormwater utility guidance manual, and any updates thereto, shall not be subject to the requirements and provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). L.2019, c.42, s.16.

N.J. Stat. § 40A:26B-17 "Clean Stormwater and Flood Reduction Fund."

17. a. There is established in the General Fund a special nonlapsing account to be known as the "Clean Stormwater and Flood Reduction Fund." The State Treasurer shall credit to this account all moneys remitted to the State Treasurer by counties, municipalities, and authorities pursuant to subsection d. of section 8 of P.L.2019, c.42 (C.40A:26B-8). Pending the use thereof, moneys deposited in the fund may be invested or reinvested in such securities as are approved by the State Treasurer. Interest or other income earned on moneys deposited into the fund shall be credited to the fund for use as set forth in subsection b. of this section. b. Moneys deposited in the "Clean Stormwater and Flood Reduction Fund" are specifically dedicated and shall be used by the Department of Environmental Protection only 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 department's stormwater management program, and a public education and outreach program relating to stormwater management. L.2019, c.42, s.17.

N.J. Stat. § 40A:26B-18 Rules, regulations.

18. The Department of Environmental Protection, the Division of Local Government Services in the Department of Community Affairs, and the Local Finance Board may adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary for the implementation of P.L.2019, c.42 (C.40A:26B-1 et al.). L.2019, c.42, s.18.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026