A4633

An Act establishing a water quality, flood control, and stream restoration pilot program, supplementing Title 58 of the Revised Statutes, and amending P.L.2007, c.340.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Bank” means the inclined side of a channel, an excavated or impounded area, or a topographic depression, which confines or conducts water.

“Bank stabilization or restoration” means activities conducted to restore to a stable condition a bank or channel, which has become eroded, unstable, or ecologically degraded.

“Category one waters” means, for the purposes of sediment removal, those waters designated by the Department of Environmental Protection, for purposes of implementing the antidegradation policies of the “Water Pollution Control Act,” P.L.1977, c.74 (C.58:10A-1 et seq.), for protection from measurable changes in water quality characteristics because of their clarity, color, scenic setting, other characteristics of aesthetic value, exceptional ecological significance, exceptional recreational significance, exceptional water supply significance, or exceptional fisheries resources. These waters may include, but are not limited to:

(1) waters originating wholly within federal, interstate, State, county, or municipal parks, forests, fish and wildlife lands, and other special holdings that have not been designated by the department as FW1;

(2) waters classified by the department as FW2 trout production waters and their tributaries;

(3) surface waters classified by the department as FW2 trout maintenance waters or FW2 non-trout waters that are not more than 750 feet upstream of waters classified by the department as FW2 trout production waters;

(4) shellfish waters of exceptional resource value; or

(5) other waters and their tributaries that flow through, or border, federal, State, county or municipal parks, forest, fish and wildlife lands, and other special holdings.

“Channel” means a linear topographic depression, either naturally occurring or of human origin through excavation or construction, that continuously or intermittently confines or conducts surface water, but shall not mean transient erosion gullies and other ephemeral features that temporarily form after heavy rainfall.

“Commissioner” means the Commissioner of Environmental Protection.

“FW” means the general surface water classification applied to fresh waters.

“FW1” means those fresh waters that originate in and are wholly within federal or State parks, forests, fish and wildlife lands, and other special holdings, that are to be maintained in their natural state of quality and not subjected to any man-made wastewater discharges.

“FW2” means the general surface water classification applied to those fresh waters that are not designated as FW1 or pinelands waters.

“Sediment” means solid material, mineral or organic, that is in suspension, is being transported or has moved from its site of origin by air, water, ice, or gravity as a product of erosion.

“Stream cleaning, clearing, and desnagging” means the removal of accumulated sediments, debris, garbage, or vegetation from a stream with a natural stream bed, or the removal of any accumulated material from a stream previously channelized with concrete or similar artificial material, to improve, for the purposes of flood control, the use or function of any stream.

“Trout maintenance waters” means waters designated by the department for the support of trout throughout the year.

“Trout production waters” means waters designated by the department for use by trout for spawning or nursery purposes during their first summer.

2. (New section) a. The Department of Environmental Protection shall develop and implement a water quality, flood control, and stream restoration pilot program to assist counties and municipalities with projects that restore the environment, improve water quality, reduce flooding, and contribute to the storing of carbon in natural areas. The projects funded and implemented under the pilot program shall restore streams, smaller waterways, and tributaries in the State. Projects to restore rivers shall not be eligible for participation in the pilot program.

b. Under the pilot program, the department shall provide grants for three projects at comparable costs; one each in the southern, central, and northern areas of the State.

c. Under the pilot program, funding may be provided for projects for:

(1) stream cleaning, clearing, and desnagging;

(2) bank stabilization or restoration;

(3) stream dredging;

(4) restoration of historic stream beds;

(5) plans for the timed release of water from detention basins, dams, or other water bodies;

(6) farm practices to retain soil moisture;

(7) design and installation of pervious surfaces;

(8) restoration of historic flood plains;

(9) promotion of public use of flood plains that reduces flooding;

(10) installation of native plantings; and

(11) residential installation of flood control methods such as rain gardens, cisterns, and buried downspouts.

d. A project conducted under the pilot program shall meet the following conditions:

(1) the removal of any material shall not extend below the historic depth of a stream bed and shall not alter the natural stream bank beyond its historical contour;

(2) the project shall not obstruct flow in the channel or floodway, significantly alter the channel, or impair surface water flow into or out of any wetland area;

(3) the project shall not reduce the stability of a steep slope or result in the permanent loss of any upland forested area;

(4) disturbance to vegetation in the riparian zone shall be minimized, and all cleared or removed vegetation shall be replanted with native, non-invasive vegetation except where the cleared or removed vegetation has been replaced by non-vegetative stabilizing material;

(5) the project shall not result in the likelihood of the destruction or adverse modification of habitat for federally or State listed threatened or endangered species;

(6) every effort shall be made to perform work so as to ensure that vegetation and canopy on a stream bank is preserved for stream shading;

(7) if a project is in a municipality known to have federally or State listed threatened or endangered species associated with its wetlands or if the project is in a stream classified as pinelands or category one waters, the project shall (a) be coordinated with the appropriate federal and State agencies, and (b) incorporate appropriate timing restrictions; and

(8) the project shall comply with any applicable requirements of “The Wetlands Act of 1970,” P.L.1970, c.272 (C.13:9A-1 et seq.), the “Freshwater Wetlands Protection Act,” P.L.1987, c.156 (C.13:9B-1 et seq.), the “Coastal Area Facility Review Act,” P.L.1973, c.185 (C.13:19-1 et seq.), the “Highlands Water Protection and Planning Act,” P.L.2004, c.120 (C.13:20-1 et al.), and the “Flood Hazard Area Control Act,” P.L.1962, c.19 (C.58:16A-50 et seq.), and any rules and regulations adopted pursuant thereto.

e. Before approving a project to be conducted under the pilot program, the department shall ensure that the project is eligible for any permit, approval, or other authorization required by law and the department shall issue the necessary permit, approval, or other authorization.

3. (New section) a. One year after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the commissioner shall issue a written report to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), summarizing the projects undertaken and completed under the pilot program.

b. The report shall include:

(1) a description of each project undertaken under the pilot program, including a description of the nature of the project, the water quality, flood control, or carbon storage objectives of the projects, and identification of the municipality and county in which the project occurred;

(2) the cost of each project undertaken; and

(3) any recommendations for any administrative or legislative actions that the commissioner deems appropriate and necessary to assist counties and municipalities in addressing projects that restore the environment, improve water quality, reduce flooding, and contribute to the storing of carbon in natural areas in the State.

4. (New section) The Department of Environmental Protection shall allocate $1 million for the pilot program established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) from the moneys allocated for programs that enhance the stewardship and restoration of the State's streams, flood plains, and water quality pursuant to section 7 of P.L.2007, c.340 (C.26:2C-51) from the "Global Warming Solutions Fund," established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50).

5. Section 7 of P.L.2007, c.340 (C.26:2C-51) is amended to read as follows:

7. a. The agencies administering programs established pursuant to this section shall maximize coordination in the administration of the programs to avoid overlap between the uses of the fund prescribed in this section.

b. Moneys in the fund, after appropriation annually for payment of administrative costs authorized pursuant to subsection c. of this section, shall be annually appropriated and used for the following purposes:

(1) Sixty percent shall be allocated to the New Jersey Economic Development Authority to provide grants and other forms of financial assistance to commercial, institutional, and industrial entities to support end-use energy efficiency projects and new, efficient electric generation facilities that are state of the art, as determined by the department, including but not limited to energy efficiency and renewable energy applications, to develop combined heat and power production and other high efficiency electric generation facilities, to stimulate or reward investment in the development of innovative carbon emissions abatement technologies with significant carbon emissions reduction or avoidance potential, to develop qualified offshore wind projects pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1), and to provide financial assistance to manufacturers of equipment associated with qualified offshore wind projects. The authority, in consultation with the board and the department, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to individual commercial, institutional, and industrial sectors and to individual projects within each of these sectors; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance, which criteria shall include the ability of the project to result in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand, provided, however, that neither the development of a new combined heat and power production facility, nor an increase in the electrical and thermal output of an existing combined heat and power production facility, shall be subject to the requirement to demonstrate such a measurable reduction; and (c) the process by which grants or other forms of financial assistance can be applied for and awarded including, if applicable, the payment terms and conditions for authority investments in certain projects with commercial viability;

(2) Twenty percent shall be allocated to the board to support programs that are designed to reduce electricity demand or costs to electricity customers in the low-income and moderate-income residential sector with a focus on urban areas, including efforts to address heat island effect and reduce impacts on ratepayers attributable to the implementation of P.L.2007, c.340 (C.26:2C-45 et al.) or to support the light duty plug-in electric vehicle incentive program and the incentive program for in-home electric vehicle service equipment established pursuant to sections 4 and 6 of P.L.2019, c.362 (C.48:25-4 and C.48:25-6). For the purposes of this paragraph, the board, in consultation with the authority and the department, shall determine the types of programs to be supported and the mechanism by which to quantify benefits to ensure that the supported programs result in a measurable reduction in energy demand or accomplishment of the plug-in electric vehicle goals established pursuant to section 3 of P.L.2019, c.362 (C.48:25-3);

(3) Ten percent shall be allocated to the department to support programs designed to promote local government efforts to plan, develop and implement measures to reduce greenhouse gas emissions, including but not limited to technical assistance to local governments, and the awarding of grants and other forms of assistance to local governments to conduct and implement energy efficiency, renewable energy, and distributed energy programs and land use planning where the grant or assistance results in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand. For the purpose of conducting any program pursuant to this paragraph, the department, in consultation with the authority and the board, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to local governments; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance; (c) the process by which grants or other forms of financial assistance can be applied for and awarded; and (d) a mechanism by which to quantify benefits; and

(4) Ten percent shall be allocated to the department to support programs that enhance the stewardship and restoration of the State's forests, streams, flood plains, water quality, and tidal marshes that provide important opportunities to sequester or reduce greenhouse gases.

c. (1) The department may use up to four percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the department in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).

(2) The board may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the board in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).

(3) The New Jersey Economic Development Authority may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the authority in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases.

d. The State Comptroller shall conduct or supervise independent audit and fiscal oversight functions of the fund and its uses.

(cf: P.L.2019, c.362, s.12)

6. This act shall take effect immediately.

STATEMENT

This bill directs the Department of Environmental Protection (DEP) to develop and implement a water quality, flood control, and stream restoration pilot program to assist counties and municipalities with projects that restore the environment, improve water quality, reduce flooding, and contribute to the storing of carbon in natural areas.

The bill establishes that, under the pilot program, the DEP would provide grants for three projects, one each in the southern, central, and northern areas of the State. Projects that may be funded under the program would include stream cleaning, clearing, and desnagging, stream bank stabilization, stream dredging, restoration of historic stream beds, plans for the release of water from detention basins, dams, or other water bodies, farm practices to retain soil moisture, design and installation of pervious surfaces, restoration of historic flood plains, promotion of public use of flood plains that reduces flooding, installation of native plantings, and residential installation of flood control methods such as rain gardens, cisterns, and buried downspouts.

The bill requires the Commissioner of Environmental Protection one year after the bill’s effective date, to issue a written report to the Legislature summarizing the projects undertaken and completed under the pilot program and including:

1) a description of each of the projects undertaken under the pilot program, with a description of the nature of the project, the water quality, flood control, or carbon storage objectives of the projects, and identification of the municipality and county in which the project occurred;

2) the cost of each project undertaken; and

3) any recommendations for any administrative or legislative actions that the commissioner deems appropriate and necessary to assist counties and municipalities in addressing.

Finally, the bill directs DEP to allocate $1 million for the pilot program established in the bill from the moneys in the Global Warming Solutions Fund allocated for programs that enhance the stewardship and restoration of the State's streams, water quality and flood plains The bill amends current law concerning use of moneys in the Global Warming Solutions Fund to specify that stream, water quality, and flood plain projects are included in the stewardship and restoration programs authorized to receive grants from the fund.