Bill Text: NJ A2641 | 2012-2013 | Regular Session | Introduced


Bill Title: Authorizes creation of stormwater utilities for certain local government entities.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2012-10-25 - Received in the Senate, Referred to Senate Budget and Appropriations Committee [A2641 Detail]

Download: New_Jersey-2012-A2641-Introduced.html

 

LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 2641

STATE OF NEW JERSEY

215th LEGISLATURE

 

DATED: OCTOBER 1, 2012

 

 

SUMMARY

 

 

Synopsis:

Authorizes creation of stormwater utilities for certain local government entities.

Type of Impact:

Cost increase offset by user fees or other charges.

Agencies Affected:

Department of Environmental Protection; counties; municipalities; county and municipal utilities authorities.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Cost

Minimal - See comments below

 

State Revenue

Indeterminate - See comments below

 

Local Cost

Indeterminate - See comments below

 

Local Revenue

Indeterminate - See comments below

 

 

 

 

·        The Office of Legislative Services (OLS) estimates that the Department of Environmental Protection (DEP) would incur minimal costs to create a stormwater utility guidance manual that the bill requires, and assumes that cost would be offset by user fees or other charges collected.

·        The OLS also estimates that counties, municipalities, and county and municipal utilities authorities that elect to establish, provide, and maintain a stormwater utility for the purpose of creating a stormwater management system could incur significant costs.  Under the bill, those costs could be funded or defrayed through user fees generated from stormwater service charges on property owners or occupants or other charges that the bill provides.

·        The bill authorizes stormwater utilities to charge and collect fees or other charges for direct or indirect use or services of the stormwater management system.  The bill provides that five percent of the annual fees or other charges collected are to be transferred to the DEP to fund program planning, implementation and coordination activities related to stormwater utilities and stormwater management systems.

BILL DESCRIPTION

 

      Assembly Bill No. 2641 of 2012 would authorize a county, county utilities authority, municipality, or municipal utilities authority that holds a combined sewer systems general permit or any other general permit required pursuant to the "Water Pollution Control Act," P.L.1977, c.74 (C.58:10A-1 et seq.) to regulate combined sewer overflows, to establish, provide and maintain a stormwater utility for the purpose of creating a stormwater management system to manage stormwater runoff.  The bill would authorize those entities to finance the creation, operation, and maintenance of the stormwater utility system through user fees or other charges for direct or indirect use or services of the stormwater management system.

      The bill would also require the DEP to create a stormwater utility guidance manual to provide guidance to counties, municipalities, and authorities seeking to establish stormwater management systems.  The rate structure guidance provided in the stormwater utility guidance manual would define the unit by which stormwater runoff contributions are calculated and would be directly related to the specific costs of the stormwater management system.  The stormwater utility guidance manual or any revisions would be adopted after appropriate notice and opportunity for public comment, but would not be subject to the notice and publication requirements of the "Administrative Procedure Act."  The bill would require that five percent of the fees collected would be transferred to the DEP to fund program planning, implementation, and coordination activities related to stormwater utilities and stormwater management systems authorized under the bill.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that the DEP would incur minimal costs to create a stormwater utility guidance manual that the bill requires, and assumes that cost would be offset by user fees or other charges collected.  According to informal information provided by the Executive, since the DEP already has a Municipal Stormwater Regulation Program and stormwater permitting and compliance systems in place, the department would not incur any additional expenses since this legislation is just a restructuring of the stormwater regulation function.

      The OLS also estimates that counties, municipalities, and county and municipal utilities authorities that elect to establish, provide, and maintain a stormwater utility for the purpose of creating a stormwater management system could incur significant costs.  Under the bill, those costs could be funded or defrayed through user fees generated from stormwater service charges on property owners or occupants or other charges that the bill provides.

 

 

Section:

Environment, Agriculture, Energy and Natural Resources

Analyst:

Joseph A. Hroncich

Associate Fiscal Analyst

Approved:

David J. Rosen

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.).

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