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A 4998

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

2026-2027 Regular Session Introduced by Dawn Fantasia

Authorizes CBT-derived grants to local governments for HAB prevention via sewer/stormwater and lake/reservoir management, expanding water quality funding.

Introduced, Referred to Assembly Environment and Solid Waste Committee
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Bill Summary · A 4998

Summary of Bill A 4998 (Session 222) – New Jersey

Purpose and intent

  • Authorizes the use of constitutionally dedicated Corporation Business Tax (CBT) revenues to fund grants for prevention and remediation of harmful algal blooms (HABs) and related nonpoint source pollution issues.
  • Specifically taps into two existing funds and programs to expand grant opportunities for local governments and non-profit partners.

Key provisions and changes

  • Watershed Management Fund (Watershed Protection and Management Act of 1997)

    • The fund, a nonlapsing revolving account in the Department of Environmental Protection, would receive an annual amount equal to 5% of the 6% CBT revenue (or a similar applicable source) dedicated to water quality monitoring, watershed planning/management, and nonpoint source prevention, plus any accrued interest.
    • Uses of the fund remain broad but include targeted activities related to water quality and watershed management. The bill explicitly adds a new grant purpose:
    • Grants to local governments for sewer or stormwater infrastructure projects that reduce nonpoint source pollution and help prevent HABs.
    • Grants may be used as matching funds for other state or federal grants.

  • Updates to Section 5 (Fund uses)

    • Adds an explicit provision (subsection l) to provide grants to local governments to fund sewer/stormwater projects aimed at HAB prevention. This serves as an additional mechanism to reduce nutrient and pollutant loadings contributing to HABs.
    • Maintains the comprehensive monitoring, assessment, watershed planning, and BMP development activities currently authorized, but with the HAB-focused grant addition.

  • Preserve New Jersey Green Acres Fund (Preserve New Jersey Act, P.L.2016, c.12)

    • The bill authorizes a portion of CBT revenues dedicated to grants and loans for local government land acquisition/development (for recreation and conservation) to be used for HAB-related lake/reservoir management.
    • Specifically allows grants to cover 100% of the costs for local government management and maintenance projects of lakes/reservoirs focused on preventing or mitigating HABs (up to certain programmatic limits).
    • Grants may be used as matching funds for other grants (State or federal).
    • Establishes detailed allocation rules for 2017–2019 and ongoing annual funding, including percentages for development, stewardship, local government grants, and Blue Acres (facing environmental restoration) projects. The new HAB-related grants are positioned as part of the development/management framework for lakes and reservoirs.

  • Blue Acres and non-profit provisions

    • Maintains existing Blue Acres provisions and nonprofit grants, with enhanced integration to HAB-focused lake management where applicable.
    • Requires reporting to legislative committees on funded projects and stewardship activities.

  • Administration and reporting

    • Requires annual reporting by the Department detailing funded projects and stewardship activities related to the HAB-focused grants, including locations and costs.

Who is affected

  • Local governments: eligible to receive grants for sewer/stormwater infrastructure and for lake/reservoir HAB prevention/mitigation projects.
  • State agencies (primarily DEP) and state-funded land management programs: act as administering bodies for grant programs and monitoring efforts.
  • Qualifying tax-exempt nonprofit organizations engaged in land conservation (as currently funded by Green Acres), with potential eligibility for HAB-related funding when aligned with program rules.

Timelines and effective date

  • The act states it shall take effect immediately upon enactment.
  • Funding changes are designed to apply to existing CBT-derived revenues in the Watershed Management Fund and Preserve New Jersey Green Acres Fund, with ongoing annual allocations per established statutory formulas.

Overall impact

  • Expands the use of constitutionally dedicated CBT revenues to proactively fund HAB prevention and water quality improvements through grants to local governments.
  • Enables targeted 100% grant assistance for specific lake/reservoir management projects, potentially increasing statewide capacity to address HABs and related nonpoint source pollution.
  • Maintains existing funding frameworks while introducing HAB-focused grant provisions and associated reporting requirements.

Compiled from official sources — confirm details with the bill’s official record.

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