Carteret Business Partnership, Inc. v. New Jersey Department of Environmental Protection

New Jersey Superior Court Appellate Division·Decided July 30, 2026·No. A-0951-24·Published

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-0951-24

APPROVED FOR PUBLICATION July 30, 2026 CARTERET BUSINESS APPELLATE DIVISION PARTNERSHIP, INC.,

Petitioner-Appellant,

v.

NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION,

Respondent-Respondent. ___________________________

Argued June 4, 2026 – Decided July 30, 2026

Before Judges Mawla, Marczyk and Puglisi.

On appeal from the New Jersey Department of Environmental Protection.

Dominic J. Aprile argued the cause for appellant (Bathgate Wegener & Wolf, PC, attorneys; William J. Wolf and Daniel J. Carbone, on the briefs).

Elizabeth Delahunty, Deputy Attorney General, argued the cause for respondent (Jennifer Davenport, Attorney General, attorney; Janet Greenberg Cohen, Assistant Attorney General, of counsel; Elizabeth Delahunty, on the brief). Scott E. Reiser argued the cause for intervenor Township of Woodbridge (Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins, attorneys; Scott E. Reiser and Steven J. Eisenstein, of counsel and on the brief).

The opinion of the court was delivered by

MARCZYK, J.A.D.

Petitioner Carteret Business Partnership, Inc. (CBP) appeals from the

New Jersey Department of Environmental Protection's (DEP) November 18,

2024 final agency decision, which reversed the administrative law judge's

(ALJ) initial decision and granted the DEP's motion for summary decision.

The primary issue on appeal is whether the DEP has authority under N.J.A.C.

7:14A-22.8(a)(3)(v) to consider a treatment works approval (TWA) application

that lacks consent from the receiving wastewater treatment plant. We

conclude the DEP reasonably interpreted the regulation to require the receiving

wastewater treatment plant's consent as a mandatory prerequisite to

considering a TWA application, such that it was precluded from considering

CBP's application. Accordingly, we affirm.

I.

A. Background.

This appeal arises from the DEP's denial of CBP's TWA application to

construct and operate two gravity sanitary sewer laterals to service a sixty -

four-unit mixed-use development in the Borough of Carteret. The proposed

A-0951-24 2 development would discharge effluent into Carteret's municipal wastewater

conveyance system, which connects to the Township of Woodbridge's

wastewater conveyance system. Ultimately, the wastewater would be

conveyed into the Middlesex County Utilities Authority's (MCUA) wastewater

treatment plant. Pursuant to a 1987 agreement, Woodbridge permits Carteret

to use its sewer system to transport sewage to the MCUA.

CBP submitted the TWA application to the DEP in November 2022,

which included a WQM-003 Consent Form (Consent Form) pursuant to

N.J.A.C. 7:14A-22.8(a)(3). The Consent Form included two required

signatures from Carteret, evidencing its consent and certification to the

application, in Sections A and B, respectively titled "Consent by Governing

Body" and "Certification by Wastewater Conveyance System Owner."

However, the Consent Form lacked the MCUA's signature in Section C, titled

"Certification by Wastewater Treatment Facility Owner." In an email attached

to CBP's application, the MCUA explained it would not endorse the

application because it was "administratively incomplete," as it lacked

Woodbridge's endorsement "to convey sanitary sewer flows through [its]

collection system to [the] MCUA." CBP noted Woodbridge would not agree

to convey the wastewater to the MCUA and consent to CBP's TWA application

A-0951-24 3 because of an "intermunicipal pecuniary conflict" between Carteret and

Woodbridge.

In a November 7, 2022 letter, CBP requested the DEP approve the

application pursuant to N.J.A.C. 7:14A-22.8(a)(3)(v), despite the fact it was

missing the MCUA's signature on the Consent Form. On November 14, 2022,

the DEP erroneously provided a notice of administrative completeness to CB P,

however, it subsequently advised CBP Section C of its Consent Form was

missing a mandatory signature. In a December 21, 2022 letter, CBP

acknowledged the MCUA's signature was still missing but reiterated its

request the DEP approve its application, again asserting the agency had the

authority to do so under N.J.A.C. 7:14A-22.8(a)(3)(v)(5).

In February 2023, the DEP denied the TWA application. It reasoned it

lacked the authority to issue the permit because the MCUA—the wastewater

treatment facility owner—had not executed the Consent Form to certify the

wastewater would be treated and the plant was following the New Jersey

Pollution Discharge Elimination System (NJPDES) permit requirements. The

DEP explained:

[The] MCUA has notified this office that they will not endorse and provide consent until . . . Woodbridge provide[s] . . . consent as [the] "Wastewater Conveyance System Owner." The wastewater flow from this project will be conveyed to the MCUA for

A-0951-24 4 treatment using [a] downstream sewage conveyance system, owned and operated by . . . Woodbridge.

CBP challenged the denial and requested an adjudicatory hearing. 1 In

October 2023, the matter was referred to the OAL for a hearing before an ALJ.

Woodbridge moved to intervene, which the ALJ granted. In April 2024, the

DEP moved for summary decision. CBP opposed the motion.

B. The ALJ's Initial Decision.

On July 8, 2024, the ALJ issued an initial decision, finding the DEP had

authority to consider CBP's TWA application pursuant to N.J.A.C. 7:14A -

22.8(a)(3)(v)(5). She rejected the agency's interpretation the regulation does

not apply when the wastewater treatment facility owner is the entity

withholding consent. The ALJ reasoned the agency's interpretation was

inconsistent with the regulation's language, "which require[s] the []DEP to step

in to make a decision when the affected municipality, the sew[er]age authority,

and/or the treatment facility owner refuse[s] to do so." She noted the Law

Division had also reviewed the regulation and determined the DEP should

1 In February 2023, prior to the DEP's denial of its application, CBP filed a verified complaint in lieu of prerogative writs in the Law Division, seeking an order compelling the MCUA to consent to its TWA application. The court subsequently granted a motion to transfer venue to the Office of Administrative Law (OAL). See Carteret Bus. P'ship v. Twp. of Woodbridge, No. L-0674-23 (Law Div. Apr. 18, 2023) (order at 2). However, the matter was already before the OAL pursuant to CBP's hearing request regarding the DEP's denial of its TWA application.

A-0951-24 5 administratively resolve the issue, as CBP had asked the agency to do. The

ALJ also emphasized the regulation states the DEP "shall" consider the reasons

for the lack of consent in determining whether to approve an application.

Although the affected parties had not disclosed their reason for denying

consent, the ALJ found the agency had the authority to compel such

disclosure.

Alternatively, if the TWA regulations preclude consideration without the

MCUA's consent, the ALJ determined the DEP should instruct CBP how to

proceed without consent. Accordingly, the ALJ denied the DEP's motion for

summary decision, granted summary decision in favor of CBP, and ordered the

agency to consider CBP's TWA application on its merits. The DEP filed

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Carteret Business Partnership, Inc. v. New Jersey Department of Environmental Protection, (N.J. Ct. App. 2026).

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