The New Jersey Superior Court Appellate Division ruled on July 30, 2026, affirming the New Jersey Department of Environmental Protection's (DEP) decision to deny Carteret Business Partnership, Inc. (CBP) a treatment works approval (TWA) for a sewer project. This ruling impacts local development plans in Carteret and sets a precedent regarding the authority of the DEP in requiring consent from wastewater treatment facilities.

The court's decision came after CBP appealed the DEP's November 18, 2024, final agency decision, which reversed an initial ruling by an administrative law judge (ALJ). The case highlights the importance of regulatory compliance and intermunicipal agreements in New Jersey's environmental management.

Background

Carteret Business Partnership, Inc. sought to construct and operate two gravity sanitary sewer laterals to service a new sixty-four-unit mixed-use development in Carteret. The wastewater from this development would flow into the municipal sewer system and ultimately be treated at the Middlesex County Utilities Authority (MCUA) facility. However, the project faced complications due to a lack of consent from the MCUA and the Township of Woodbridge, which owns the sewer system that would convey the wastewater.

CBP submitted its TWA application in November 2022, but it lacked the necessary signature from the MCUA on the required consent form. The MCUA indicated that it would not provide consent until Woodbridge also agreed to convey the wastewater. The relationship between Carteret and Woodbridge was strained, leading to Woodbridge's refusal to consent to the project due to an intermunicipal pecuniary conflict.

The Ruling

The court ruled that the DEP had the authority to deny CBP's TWA application based on the lack of consent from the MCUA. The judges concluded that the DEP's interpretation of its regulations, specifically N.J.A.C. 7:14A-22.8(a)(3)(v), was reasonable. The ruling stated, "the DEP reasonably interpreted the regulation to require the receiving wastewater treatment plant's consent as a mandatory prerequisite to considering a TWA application." This interpretation affirmed the DEP's position that it could not proceed with the application without the necessary approvals.

The judges emphasized that the DEP's decision was not arbitrary or unreasonable, noting that the agency's interpretation of its own regulations should be given deference. They pointed out that the absence of the MCUA's consent meant the DEP was not authorized to review CBP's application further. The court stated, "the consent from the owner of the receiving wastewater treatment plant is a non-negotiable requirement in a TWA application and cannot be waived."

Impact

This ruling has significant implications for future development projects in New Jersey, particularly those involving wastewater management. It reinforces the necessity for developers to secure all required consents from relevant authorities before submitting applications to the DEP. The decision also clarifies the DEP's regulatory authority and its role in ensuring that wastewater treatment facilities can handle additional flows without violating environmental regulations.

Moreover, the ruling sets a precedent for how similar cases may be handled in the future. Developers may need to navigate complex intermunicipal agreements and ensure that all parties involved in wastewater management consent to proposed projects. This case illustrates the importance of collaboration between municipalities in managing environmental resources effectively.

What's Next

CBP may consider appealing the decision to a higher court, but details on any potential appeal were not available in the court filing. The case highlights ongoing challenges in municipal cooperation and regulatory compliance in environmental matters.