LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 1400

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: NOVEMBER 24, 2025

 

 

SUMMARY

 

Synopsis:

Requires water supplier to notify affected municipalities, school districts, charter schools, nonpublic schools, and institutions of higher education of violations of drinking water quality standards.

Type of Impact:

Annual State and local expenditure increases

Agencies Affected:

State-owned public water systems; certain local government units.

 

Fiscal Impact

Annual 

State Expenditure Increase

Indeterminate

Local Expenditure Increase

Indeterminate

 

·         The Office of Legislative Services (OLS) finds that this bill will result in an indeterminate amount of annual administrative costs for the State and certain local governments.  The costs under the bill will depend on the quantity of Tier 2 public notice drinking water standard violations, which can vary from year to year.

 

·         The OLS notes that public water systems are already required to provide similar notifications under federal and State law and, as a result, many of the administrative costs associated with this bill may be mitigated.

 

 

BILL DESCRIPTION

 

      This bill would require owners of public water systems to notify the municipal governing body and chief administrators of local school districts, charter schools, nonpublic schools, and institutions of higher education whenever the public water system of that municipality incurs a violation requiring a Tier 2 public notice pursuant to the United States Environmental Protection Agency's National Primary Drinking Water Regulations.  These notifications would identify the name of the contaminant that exceeds drinking water quality standards, the maximum contaminant level or action level for the contaminant, the level of the contaminant found on each date, the dates when the tests were performed, the location of each sample tested, and the location of each sample tested that exceeds a maximum contaminant level or action level.  Reporting would take place by telephone and electronic mail.  Public water systems would also be required to provide information on preventative strategies that a customer may take to address the violation.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that this bill would result in an indeterminate amount of annual administrative costs for the State and certain local governments to provide the required notifications whenever a public water system incurs a violation requiring a Tier 2 public notice pursuant to the United States Environmental Protection Agency's National Primary Drinking Water Regulations.  The OLS finds that these administrative efforts may be subsumed within existing staff duties.

      For background, there are approximately 3,700 water systems in the State, which consist of: (1) 582 public water systems such as those that serve municipalities, operated by 475 water purveyors; (2) 720 non-transient non-community systems that serve businesses, hotels, and schools; and (3) 2,372 transient non-community systems that serve businesses, camps, churches, hotels, and restaurants.  Of the 582 public water systems in the State, 307 are owned by local government water purveyors, seven are owned by State water purveyors, and 268 are owned by private entities.

      New Jersey requires that Tier 1 acute violation public notices be reported to local authorities within one hour. Tier 2 public notices are required for all other violations that could result in adverse health effects.  Any public water system that fails to prepare and deliver the appropriate tier public notification incurs a violation.  In 2023, 106 violations were issued to 77 public water systems for failing to provide a public notification to consumers after the incurrence of a violation.  In late 2023, the Department of Environmental Protection began to enforce oversight of Tier 2 public notification more consistently, resulting in a higher number of violations issued.

      The OLS notes that public water systems are already required to provide similar notifications under the federal Safe Drinking Water Act and New Jersey’s Safe Drinking Water Act.  As a result, many of the administrative costs associated with this bill may be mitigated.  Costs may vary year to year depending on the number of Tier 2 drinking water standard violations identified and reported.

 

 

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.).