Author: Michael D. DeLoreto

Update: Waterfront Access Stakeholder Group Reports to Senate Committee

As previously reported, the New Jersey State Senate Environment and Energy Committee convened a stakeholder group to explore legislative action to address waterfront and shoreline public access. On April 21, 2016, the Committee took testimony from the stakeholder group, which will provide a full report to the Committee in a few weeks. Legislation based on the stakeholder’s report may be up for consideration in the fall. The stakeholder group received comments and participation from roughly 80 different entities. The stakeholder group members testified that a general consensus existed between all stakeholders regarding the need to protect critical infrastructure and hazardous sites from public access. This includes the State’s ports, nuclear facilities, chemical and petroleum locations, and environmentally compromised areas (i.e., locations subject to environmental cleanup). Consensus did not exist among the stakeholder group regarding access to waterfront property on or near industrial or commercial locations that are non-critical. There is also a lack of consensus regarding urban waterfront access near residential and commercial buildings. We will continue to monitor the Committee’s work towards drafting a legislative proposal on waterfront access. Should you or your organization have an interest in engaging on this issue, please contact a member of the Gibbons Government & Regulatory Affairs Department.

Clock Starts on BEIP Grant Conversion Program

Hundreds of New Jersey Business Employment Incentive Program (“BEIP”) Grant recipients may be eligible to convert their BEIP Grant to a refundable tax credit under Senate Bill 3232/Assembly Bill 4834 (S-3232/A-4834), which the State Legislature approved on December 17, 2015 and Governor Christie signed into law on January 11, 2016. If your business is a BEIP Grant recipient, Gibbons can assist you with the process of evaluating and implementing a BEIP conversion. Since the enactment of BEIP in 1996, New Jersey has entered into 499 BEIP agreements with businesses creating approximately 110,000 jobs and resulting in $12 billion in total economic activity. In 2013, the New Jersey Legislature enacted the “Economic Opportunity Act of 2013” which sunset BEIP and created the Grow New Jersey Assistance Program. The State has subsequently not fully funded BEIP Grant payments in the annual State budget. S-3232/A-4834 allows a business that is eligible to receive a BEIP Grant to direct the New Jersey Economic Development Authority (“NJEDA”) to convert its BEIP Grant to a refundable tax credit that would not be subject to the annual appropriations process. These tax credits may be applied against the business’ corporate tax liability, insurance premium tax liability, or foreign insurance tax liability. A business without these tax liabilities can apply for a tax credit...

Waterfront Access Regulations Make Long Walks on the Beach More Complicated

For the second time in eight years, the New Jersey Appellate Division has rejected the State’s waterfront access regulations. On December 22, 2015, the court held in Hackensack Riverkeeper v. New Jersey Department of Environmental Protection that the most recent iteration of the waterfront access rules exceeded the authority of the NJDEP. This decision prompted quick legislative and executive action prior to the end of the 216th Legislative Session, and ushers in the possibility of future legislative action. NJDEP initially issued waterfront access regulations in 2007 that mandated broad public availability. These regulations were struck down by the Appellate Division in Borough of Avalon v. New Jersey Department of Environmental Protection, 403 N.J. Super. 590 (App. Div. 2008), certif. denied, 199 N.J. 133 (2009). In response to Avalon, the NJDEP issued new regulations in 2012 and 2015. The 2012/2015 regulations required each town to develop its own public access rules, known as Municipal Public Access Plans (“MPAP”). The MPAP would be reviewed and approved by the NJDEP on a case-by-case basis to ensure proper public access. After the NJDEP’s approval, the MPAP would then be incorporated into the town’s master plan. Upon a challenge from various groups, the Appellate Division concluded the latest regulations (1) exceeded the Legislature’s limited delegation of authority to the NJDEP...

NJ Legislature Considers Invalidating NJDEP Regulations

On June 1, 2015, after significant outreach to the relevant stakeholders, the New Jersey Department of Environmental Protection (NJDEP) released for public comment sweeping proposed changes to the rules governing Coastal Zone Management (CZM), N.J.A.C. 7:7E-1.1 et seq., Stormwater Management (SWM), N.J.A.C. 7:8-1.1 et seq., and the Flood Hazard Area Control Act (FHACA), N.J.A.C. 7:13-1.1 et seq. However, the New Jersey Legislature is poised to use its constitutional authority to find that the proposed regulations are inconsistent with the legislative intent of the enabling statutes.