Authorizes use of certain constitutionally dedicated CBT revenues for grants for prevention and remediation of harmful algal blooms.

A4998

ASSEMBLY, No.
4998

STATE OF
NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblywoman� DAWN FANTASIA

District 24 (Morris, Sussex and
Warren)

SYNOPSIS

���� Authorizes use of certain
constitutionally dedicated CBT revenues for grants for prevention and
remediation of harmful algal blooms.��

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning certain constitutionally dedicated
corporation business tax revenues, and amending P.L.1997, c.261 and P.L.2016,
c.12.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 4 of P.L.1997,
c.261 (C.58:29-4) is amended to read as follows:

���� 4.��� The �Watershed
Management Fund,� hereinafter referred to as the �fund,� is hereby established
as a nonlapsing, revolving fund in the Department of Environmental Protection.�
The fund shall be credited annually with
[
all
monies appropriated
]

an amount equal to five percent of the six percent of the revenue annually
derived from the tax imposed pursuant to the �Corporation Business Tax Act
(1945),� P.L.1945, c.162 (C.54:10A-1 et seq.), as amended and supplemented, or
any other State law of similar effect, dedicated to paying or financing the
cost of water quality point and nonpoint source pollution monitoring, watershed
based water resource planning and management, and nonpoint source pollution
prevention projects,
pursuant to the requirements of Article VIII, Section
II, paragraph 6, subparagraph (a) of the New Jersey Constitution.� Any interest
that accrues on monies in the fund shall be credited to the fund.

(cf: P.L.1997, c.261, s.4)

���� 2.��� Section 5 of P.L.1997,
c.261 (C.58:29-5) is amended to read as follows:

���� 5.��� Monies in the fund shall
be used only for the following purposes:

���� a.���� The development and
adoption of a priority list of water quality limited waterbodies pursuant to
the requirements of section 303(d)(1)(A) of the Federal Act (33 U.S.C. s.1313);

���� b.��� The monitoring and
assessment of all State waters pursuant to the requirements of section 305(b)
of the Federal Act (33 U.S.C. s.1315);

���� c.���� The delineation of
watershed management areas and stream segments;

���� d.��� The identification of
potential causes of the use impairment or water quality standard violations
related to waterbodies on the priority list required pursuant to sections
303(d)(1)(A) and 305(b) of the Federal Act by means of assessment of reliable
data, including, but not necessarily limited to, identification of point
sources, nonpoint sources, habitat degradation, and hydrologic changes.� This
identification shall include a broad-based intensive survey monitoring program
that shall supplement the existing chemical, biological and toxics-in-biota
monitoring networks, and that shall intensively sample watersheds or segments
of watersheds on a periodic basis and establish a detailed watershed-wide
assessment process.� The number of monitoring sites within a watershed shall be
determined by existing water quality, land uses, known and potential pollution
sources, and the amount of available historical data.� The supplemental survey
monitoring program, shall be designed to provide:

���� (1)�� a detailed profile of
water quality over specified time periods;

���� (2)�� an identification and
detailed profile of both point and nonpoint pollution sources;

���� (3)�� a quantification of
pollutant loadings and pollution impacts on receiving waters from both point
and nonpoint sources; and

���� (4)�� water quality modeling
based upon amounts of point and nonpoint sources of pollution and land use;

���� e.���� The development of
total maximum daily loads and water quality-based effluent limitations for
water quality limited waterbodies, as required pursuant to section 303(d)(1)(C)
of the Federal Act, and any rules or regulations adopted pursuant thereto;

���� f.���� The development and
presentation of data on the department�s Geographic Information System (GIS);

���� g.��� The development and
adoption of pollution prevention best management practices to control point and
nonpoint sources of pollution;

���� h.��� The characterization of
land use and land cover in each watershed;

���� i.���� The development and
adoption of a watershed management plan;

���� j.���� The development and
planning by the department of a watershed management program and the
integration of the department�s rules and regulations with the program; and

���� k.��� The development and
implementation of a watershed protection loan and grant program, as described
pursuant to section 6 of
[
this
act
]

P.L.1997,
c.261 (C.58:29-6)
.

����
l.���� The provision of
grants to local governments to fund sewer or stormwater infrastructure projects
that reduce nonpoint source pollution of the State�s lakes and reservoirs, and
help prevent harmful algal blooms. The grant money may be used as matching
funds for the purpose of securing grants from other sources, including State
and federal grants.

(cf: P.L.1997, c.261, s.5)

���� 3.��� Section 6 of P.L.2016,
c.12 (C.13:8C-48) is amended to read as follows:

���� 6.��� a.� The State Treasurer
shall establish a fund to be known as the �Preserve New Jersey Green Acres Fund�
and shall deposit into the fund all moneys received pursuant to paragraph (1)
of subsection a. of section 5 of P.L.2016, c.12 (C.13:8C-47), paragraph (1) of
subsection a. of section 1 of P.L.2019, c.136 (C.13:8C-47.1), and any other
moneys appropriated by law for deposit into the fund.

���� Moneys in the fund shall be
invested in permitted investments or shall be held in interest-bearing accounts
in those depositories as the State Treasurer may select, and may be invested
and reinvested in permitted investments or as other trust funds in the custody
of the State Treasurer in the manner provided by law.� All interest or other
income or earnings derived from the investment or reinvestment of moneys in the
fund shall be credited to the fund.� Moneys derived from the payment of
principal and interest on the loans to local government units authorized by
P.L.2016, c.12 (C.13:8C-43 et seq.) shall also be held in the fund.

���� b.��� Of the amount deposited
in State fiscal year 2017 through and including State fiscal year 2019 into the
Preserve New Jersey Green Acres Fund pursuant to paragraph (1) of subsection a.
of section 5 of P.L.2016, c.12 (C.13:8C-47):

���� (1)�� 55 percent shall be
allocated for the purpose of paying the cost of acquisition and development of
lands by the State for recreation and conservation purposes, and the amount
provided pursuant to this paragraph shall be allocated as follows:

���� (a)�� 50 percent shall be
allocated for the purpose of paying the cost of acquisition of lands by the
State for recreation and conservation purposes; and

���� (b)�� 50 percent shall be
allocated for the purpose of paying the cost of development of lands by the
State for recreation and conservation purposes, and of the amount provided
pursuant to this subparagraph:

���� (i)��� up to 22 percent shall
be allocated for the purpose of paying the cost for stewardship activities
undertaken on lands administered by the Division of Fish and Wildlife in the
department; and

���� (ii)�� up to 22 percent shall
be allocated for the purpose of paying the cost for stewardship activities
undertaken on lands administered by the Division of Parks and Forestry in the
department;

���� (2)�� 38 percent shall be
allocated for the purposes of providing grants and loans to assist local
government units to pay the cost of acquisition and development of lands for
recreation and conservation purposes, and of this amount, up to two percent
shall be allocated for stewardship activities undertaken by local government
units; and

���� (3)�� seven percent shall be
allocated for the purposes of providing grants to assist qualifying tax exempt
nonprofit organizations to pay the cost of acquisition and development of lands
for recreation and conservation purposes, and of this amount, 11 percent shall
be allocated for stewardship activities undertaken by qualifying tax exempt
nonprofit organizations.

���� c.���� Any repayments of the
principal and interest on loans issued to local government units for the
acquisition or development of lands for recreation and conservation purposes
using constitutionally dedicated CBT moneys shall be deposited into the
Preserve New Jersey Green Acres Fund, and shall be specifically dedicated for
the issuance of additional grants and loans in the same manner as provided in
subsections a. and b. of section 27 of P.L.1999, c.152 (C.13:8C-27) and this
section.

���� d.��� (1)� The moneys in the
fund are specifically dedicated and shall be used for the same purposes and
according to the same criteria and provisions as those set forth in section 26
of P.L.1999, c.152 (C.13:8C-26), and as provided pursuant to P.L.2016, c.12 (C.13:8C-43
et seq.) and this section.

���� (2)�� Grants and loans issued
to local government units and grants issued to qualifying tax exempt nonprofit
organizations using constitutionally dedicated CBT moneys for the acquisition
and development of lands for recreation and conservation purposes shall be
subject to the same provisions as those prescribed in section 27 of P.L.1999,
c.152 (C.13:8C-27), except as otherwise provided in section 10 of P.L.2016,
c.12 (C.13:8C-52).

���� (3)�� Notwithstanding any
provision of P.L.2016, c.12 (C.13:8C-43 et seq.) or P.L.1999, c.152 (C.13:8C-1
et seq.) to the contrary, projects of the Palisades Interstate Park Commission
established pursuant to P.L.1980, c.104 (C.32:14-1.1 et seq.) for the acquisition
or development of land for recreation and conservation purposes in New Jersey
shall be considered State projects for the purposes of eligibility for funding
pursuant to the provisions of P.L.2016, c.12 (C.13:8C-43 et seq.).

���� e.���� Moneys in the fund
shall not be expended except in accordance with appropriations from the fund
made by law.� Any act appropriating moneys from the Preserve New Jersey Green
Acres Fund shall identify any particular project or projects to be funded by
the moneys, and any expenditure for a project for which the location is not
identified by municipality and county in the appropriation shall require the
approval of the Joint Budget Oversight Committee, or its successor, except as
permitted otherwise in accordance with the same exceptions as those specified
in paragraph (2) of subsection a. of section 23 of P.L.1999, c.152
(C.13:8C-23).

���� f.���� Unexpended moneys due
to project withdrawals, cancellations, or cost savings shall be returned to the
fund.

���� g.��� Of the amount authorized
pursuant to this section, not more than five percent shall be utilized for
organizational, administrative and other work and services, including salaries,
equipment and materials necessary to administer the applicable provisions of
P.L.2016, c.12 (C.13:8C-43 et seq.).

���� h.��� To the end that
municipalities may not suffer a loss of taxes by reason of the acquisition and
ownership by the State of lands in fee simple for recreation and conservation
purposes, or the acquisition and ownership by qualifying tax exempt nonprofit
organizations of lands in fee simple for recreation and conservation purposes
that become certified as exempt from property taxes pursuant to P.L.1974, c.167
(C.54:4-3.63 et seq.) or similar laws, the State shall make payments annually
in the same manner as payments are made pursuant to section 29 of P.L.1999,
c.152 (C.13:8C-29).

���� i.���� The State shall not use
the power of eminent domain in any manner for the acquisition of lands by the
State for recreation and conservation purposes using constitutionally dedicated
CBT moneys in whole or in part unless a concurrent resolution approving that
use is approved by both Houses of the Legislature; except that, without the
need for such a concurrent resolution, the State may use the power of eminent
domain to the extent necessary to establish a value for lands to be acquired
from a willing seller by the State for recreation and conservation purposes
using constitutionally dedicated CBT moneys in whole or in part.

���� j.���� Of the amount deposited
in each State fiscal year commencing in State fiscal year 2020 and annually
thereafter into the Preserve New Jersey Green Acres Fund pursuant to paragraph
(1) of subsection a. of section 1 of P.L.2019, c.136 (C.13:8C-47.1):

���� (1)�� 60 percent shall be
allocated for the purpose of paying the cost of acquisition and development of
lands by the State for recreation and conservation purposes, and the amount
provided pursuant to this paragraph shall be allocated as follows:

���� (a)�� 45 percent shall be
allocated for the purpose of paying the cost of acquisition of lands by the
State for recreation and conservation purposes, and of this amount, a minimum
of 10 percent shall be allocated for Blue Acres projects; and�

���� (b)�� 55 percent shall be
allocated for the purpose of paying the cost of development of lands by the
State for recreation and conservation purposes, and of the amount provided
pursuant to this subparagraph:

���� (i)��� up to 22 percent shall
be allocated for the purpose of paying the cost for stewardship activities
undertaken on lands administered by the Division of Fish and Wildlife in the
department; and

���� (ii)�� up to 22 percent shall
be allocated for the purpose of paying the cost for stewardship activities
undertaken on lands administered by the Division of Parks and Forestry in the
department;

���� (2)�� 30 percent shall be
allocated for the purposes of providing grants and loans to assist local
government units to pay the cost of acquisition and development of lands for
recreation and conservation purposes, including Blue Acres projects, and of
this amount
[
,
]

:

����
(a)�� up to 20 percent
shall be allocated for the provision of grants to local government units to
fund 100 percent of the costs of projects undertaken for the management and
maintenance of lakes and reservoirs with the aim of preventing or mitigating
harmful algal blooms, which grant funds may be used as matching funds for the
purpose of securing grants from other sources, including State and federal
grants; and

����
(b)
up to 10 percent
shall be allocated for stewardship activities undertaken by local government
units
, in addition to the projects eligible for funding pursuant to
subparagraph (a) of this paragraph
; and

���� (3)�� 10 percent shall be
allocated for the purposes of providing grants to assist qualifying tax exempt
nonprofit organizations to pay the cost of acquisition and development of lands
for recreation and conservation purposes, including Blue Acres projects, and of
this amount, 11 percent shall be allocated for stewardship activities
undertaken by qualifying tax exempt nonprofit organizations.

���� k. (1) In addition to the
purposes set forth in subsection d. of this section, moneys in the Preserve New
Jersey Green Acres Fund may be applied for the purposes of providing moneys to:

���� (a)�� meet the Blue Acres
costs to the State for the acquisition of lands for a Blue Acres project; or

���� (b)�� provide grants, pursuant
to the provisions of paragraph (2) of this subsection, to assist a qualifying
tax exempt nonprofit organization in meeting the Blue Acres costs for the
acquisition of lands for a Blue Acres project.

���� (2)�� A grant by the State for
lands to be acquired by a qualifying tax exempt nonprofit organization for a
Blue Acres project may include up to 50 percent of the Blue Acres cost of
acquisition of the lands by the qualifying tax exempt nonprofit organization.

���� (a)�� A qualifying tax exempt
nonprofit organization shall not use as its matching share of the Blue Acres
cost of acquisition of lands for a Blue Acres project any constitutionally
dedicated moneys, as defined pursuant to section 3 of P.L.1999, c.152 (C.13:8C-3),
or any grant moneys obtained from a Green Acres bond act.

���� (b)�� To qualify to receive a
grant from the Preserve New Jersey Blue Acres Fund, the board of directors or
governing body of the applying tax exempt nonprofit organization shall:

���� (i)��� demonstrate to the
commissioner that the organization qualifies as a charitable conservancy for
the purposes of P.L.1979, c.378 (C.13:8B-1 et seq.);

���� (ii)�� demonstrate that the
organization has the resources to match the grant requested;

���� (iii)� agree to make and keep
the lands accessible to the public, unless the commissioner determines that
public accessibility would be detrimental to the lands or any natural resources
associated therewith;

���� (iv)� agree not to convey the
lands except to the federal government, the State, a local government unit, or
another qualifying tax exempt nonprofit organization, for recreation and
conservation purposes; and

���� (v)�� agree to execute and
donate to the State at no charge a conservation restriction pursuant to
P.L.1979, c.378 (C.13:8B-1 et seq.) on the lands to be acquired with the grant.

���� l.���� In addition to any
other reporting requirements required by law, the department shall annually
send a written report to the Chairperson of the Senate Environment and Energy
Committee, the Assembly Agriculture and Natural Resources Committee, and the
Assembly Environment and Solid Waste Committee, or their successors,
identifying the projects funded with moneys pursuant to subparagraph (b) of
paragraph (1) of subsection j. of this section.� This report shall:� (1)
identify the project type, location, and cost for each development project; and
(2) identify the stewardship activities, including the location and cost for
each stewardship activity, undertaken on lands administered by the Division of
Fish and Wildlife and Division of Parks and Forestry pursuant to subparagraph
(b) of paragraph (1) of subsection j. of this section.�

(cf: P.L.2019, c.136, s.3)

���� 4.��� This act shall take
effect immediately.

STATEMENT

���� This bill would authorize the
use of constitutionally dedicated corporation business tax (CBT) revenues to
provide grants to local governments to fund sewer or stormwater infrastructure
projects that reduce nonpoint source pollution of the State�s lakes and
reservoirs, and help prevent harmful algal blooms.� The bill would allow monies
from the �Watershed Management Fund,� which was established by the �Watershed
Protection and Management Act of 1997,� P.L.1997, c.261 (C.58:29-1 et seq.), to
be used to fund the grants.� The bill also clarifies that the �Watershed
Management Fund� would serve as the repository for the 0.3 percent of annual
CBT revenues that are constitutionally dedicated to paying or financing the
cost of water quality point and nonpoint source pollution monitoring, watershed
based water resource planning and management, and nonpoint source pollution
prevention projects.

���� The bill would also amend the �Preserve
New Jersey Act� to authorize a portion of CBT revenues�namely those dedicated
to the provision of grants and loans to assist local government units to pay
the cost of acquisition and development of lands for recreation and
conservation purposes�to be used to provide grants to local government units to
fund 100 percent of the costs of projects undertaken for the management and
maintenance of lakes and reservoirs with the aim of preventing or mitigating
harmful algal blooms.� The amount authorized is approximately 0.17 percent of
annual CBT revenues.

���� Finally, the bill provides
that both kinds of grants can be used as matching funds by local government
units for the purpose of obtaining other grants, including State or federal
grants.