In the Matter of Adoption of Amendment to the Northeast Water Quality Management Plan

CourtNew Jersey Superior Court Appellate Division
DecidedJuly 7, 2025
DocketA-0198-23
StatusUnpublished

This text of In the Matter of Adoption of Amendment to the Northeast Water Quality Management Plan (In the Matter of Adoption of Amendment to the Northeast Water Quality Management Plan) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In the Matter of Adoption of Amendment to the Northeast Water Quality Management Plan, (N.J. Ct. App. 2025).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-0198-23

IN THE MATTER OF ADOPTION OF AMENDMENT TO THE NORTHEAST WATER QUALITY MANAGEMENT PLAN. _________________________

Submitted February 12, 2025 – Decided July 7, 2025

Before Judges Sumners and Bergman.

On appeal from the New Jersey Department of Environmental Protection, Docket No. PI 435442, WMP170001.

Connell Foley LLP, attorneys for appellant Bi-County Development Corporation (Kevin J. Coakley, of counsel and on the briefs; Herschel P. Rose, on the briefs).

Matthew J. Platkin, Attorney General, attorney for respondent New Jersey Department of Environmental Protection (Donna Arons, Assistant Attorney General, of counsel; Kristen D. Heinzerling, Deputy Attorney General, on the brief).

PER CURIAM This appeal requires us to determine whether to uphold the New Jersey

Department of Environmental Protection's final agency decision enacting a 2023

amendment to the Northeast Water Quality Management Plan (2023 WQMP

Amendment),1 regarding the sewer service area to an Oakland Borough

(Borough) property (the Property) in the Highlands Region, Highlands

Preservation Area, owned by appellant Bi-County Development Corporation.

The 2023 WQMP Amendment would significantly reduce Bi-County's plans to

develop a 204-unit affordable housing project (the Project) on the Property. Bi-

County argues the 2023 WQMP Amendment should be invalidated because: (1)

the Department's action was arbitrary and capricious because it violated its own

regulation, N.J.A.C. 7:15-4.4, which exempts Bi-County's property in the

Highlands Region from its restrictions; (2) the 2023 WQMP Amendment

violates a 2014 settlement agreement between Bi-County and the Department

regarding the sewer service for the Project; and (3) the Department's action was

not supported by sufficient credible evidence in the record. In the alternative,

Bi-County seeks a hearing because the Department's action was adjudicatory

1 The parties interchangeably refer to the Northeast Water Quality Management Plan as the Water Management Plan or WMP. For clarity, unless otherwise indicated, we use only the term WQMP as an acronym for the Northeast Water Quality Management Plan. A-0198-23 2 and Bi-County's hearing request was improperly denied. We reverse and

invalidate the 2023 WQMP Amendment because it violates the parties'

settlement agreement. We remand to the Department to revise the 2023 WQMP

Amendment to include the entirety of the Property in the sewer service area .

I.

The Property is comprised of approximately 86 acres in the Highlands

Region, thus making it subject to the Highlands Water Protection and Planning

Act, N.J.S.A. 13:20-1 (the Highlands Act). The Department has designated the

Property as having "exceptional resource value" because it is a habitat of the

threatened Barred Owl species and contains wetlands. See N.J.A.C. 7:25-4.17.

The Property has been the subject of an exhaustive history of disputes,

legislative action, litigation, and settlements of which the parties are familiar

and need not be rehashed here. For the sake of brevity, we limit our discussion

to the history essential to resolve this appeal.

Following a Mt. Laurel 2 lawsuit between Bi-County, the Borough's

Planning Board, and the Borough regarding the Borough's affordable housing

obligations, the parties reached a settlement in 1991 (the 1991 Settlement

Agreement). In pertinent part, the 1991 Settlement Agreement required the

2 S. Burlington Cnty. NAACP v. Twp. of Mount Laurel, 67 N.J. 151 (1975). A-0198-23 3 Borough to diligently resolve future issues related to sewer services affecting

the Property, stating:

The Borough agrees to the aforementioned proposals and that it will diligently and actively but in no event later than thirty (30) days after notice by Bi-County take whatever reasonable steps are necessary as requested by Bi-County, [the Department], the Township of Wayne or any other governmental agency that has jurisdiction or is a party to any agreement or arrangement in effectuating the provision of sewerage collection and treatment for the development contemplated in this Agreement.

The agreement also provided:

No party to this action shall amend, or seek to sever (judicially or otherwise) or otherwise change any of the terms and conditions of this Agreement, nor shall any land use ordinance affecting the Bi-County tract be amended without the written consent of the parties.

[(Emphasis added).]

The Department subsequently adopted the Borough's WQMP (1991

WQMP), which included the Property in the sewer service area. See 23 N.J.R.

910(b). Notably, "the Borough determined that [a sewer] treatment plant was

not feasible and it was never built." 3

3 In 1998, Bi-County contracted to sell the Property to Pinnacle Communities, LTD. The parties terminated the contract in 2009, returning the Property to Bi- County. To avoid confusion, we do not detail actions taken by Pinnacle because its actions would affect decisions Bi-County took after it re-acquired ownership. A-0198-23 4 In 2004, the Department reclassified the wetlands adjacent to the Property

as having "exceptional resource value" and placed further restrictions on the

Project's transition area. Consequently, the 313-housing unit proposal for the

Project was reduced to 209 units and modified site plans were submitted to the

Planning Board. That same year, the Highlands Act was passed authorizing the

Highlands Water Protection and Planning Council to supervise developments in

the Highlands Region. N.J.S.A. 13:20-1. The Highlands Act also exempts

certain developments from its provisions, such as those subject to a settlement

agreement, contingent on time restrictions. N.J.S.A. 13:20-28(a)(17).

In 2005, the Department determined Bi-County was exempt from the

Highlands Act due to the 1991 Settlement Agreement. That aside, the

Department noted, "[t]his determination does not eliminate the need for any

permits, approvals, or certifications required by the Department or any [f]ederal,

[s]tate, county or municipal review agency with jurisdiction over this

project/activity." The Department also determined the Project was inconsistent

with the 1991 WQMP, because it "is located outside of the sewer service area

. . . in Wayne Township, which is the proposed recipient of the sewage."

Over the next several years, Bi-County and the Department engaged in

extensive litigation before the Office of Administrative Law regarding the

A-0198-23 5 Property's access to sewer service in accordance with the 1991 WQMP. The

litigation culminated in the 2014 Settlement Agreement which resolved that: (1)

the 1991 WQMP remained in effect, and the Department erred by initially

finding the proposal inconsistent with the 1991 WQMP; and (2) Bi-County's

exempt status under the Highlands Act had not yet expired.

In response to its pending permits, Bi-County submitted a revised plan

reducing the Project's housing units to 204. Bi-County was granted two general

permits and a transition area waiver and agreed to revise its development plan

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