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Bill

S 4041

Increases amounts of aid paid to certain municipalities that host watershed lands; increases amount annually appropriated to "Highlands Protection Fund" from realty transfer fee revenues.

2026-2027 Regular Session Introduced by Tony Bucco and 2 co-sponsors

Increases per-acre watershed aid to host municipalities and raises Highlands Protection Fund to 12M/year, expanding funding sources and earmarking 25% for schools.

Introduced in the Senate, Referred to Senate Environment and Energy Committee
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Bill Summary · S 4041

Summary of Bill S 4041 (Session 222) – New Jersey

Purpose and Intent

This bill increases financial support to municipalities that host watershed lands and participates in the Highlands watershed protections. It also expands the sources and annual appropriation for the Highlands Protection Fund. The overall aim is to bolster funding for watershed protection, land conservation, and related programs, while explicitly directing a portion of funds to school funding.

Key Provisions

1) Increased per-acre Watershed Aid (Watershed Moratorium Offset Aid and Watershed Property Municipal Aid)

  • Change: Increase the per-acre payment to host municipalities from $47 to $94 per acre for lands within municipalities that host watershed lands and are eligible for watershed moratorium offset aid or watershed property municipal aid.
  • Affected programs:
    • Watershed moratorium offset aid (part of the Watershed Protection and Management Act framework).
    • Watershed property municipal aid.

  • Administration: The Department of Environmental Protection (DEP) is directed to adopt rules and regulations implementing the program, including:

    • A delineation of lands covered by the program.
    • A formula for periodic increases in the per-acre payment.

  • Existing statutory basis for moratorium: The bill codifies and continues the watershed moratorium (which prohibits conveyance of lands used for protecting a public water supply), previously under an uncodified, temporary statute.

  • School funding requirement: Municipalities receiving these funds must use at least 25% of any funds received for school funding purposes.

2) Funding Sources and Annual Appropriation to Highlands-Related Funds

  • Increase to Highlands Protection Fund annual appropriation: From $5 million per year to $12 million per year (source: realty transfer fee revenues).
  • Expanded funding sources: The bill authorizes using funds from:
    • Global Warming Solutions Fund (RGGI-related revenues).
    • Watershed Management Fund (CBT revenues dedicated to watershed/groundwater protection).
    • Existing Highlands Protection Fund appropriations.
  • Purpose of these funds: To finance watershed moratorium offset aid and related Highlands protections, among other uses outlined in Highlands-related programs.

3) Administrative and Oversight Provisions

  • The bill requires the DEP to publish rules/regulations implementing the watershed moratorium offset aid program, including the eligible lands and the adjustment mechanism for per-acre payments.

4) Effective Date

  • The act takes effect immediately upon enactment.

Who/What is Affected

  • Municipalities within the Highlands Region that host watershed lands and currently receive watershed moratorium offset aid or watershed property municipal aid.
  • DEP (administration and rulemaking for the program).
  • Local governments (due to the 25% school funding usage requirement).
  • Households and communities benefiting from increased watershed protection funding and related environmental programs through the Highlands Protection Fund, Global Warming Solutions Fund, and Watershed Management Fund.

Procedural/Timeline Aspects

  • Funding changes: Real-time annual budget implications with the DEP, Board, and NJ Economic Development Authority administering specified programs under the broader fund structure.
  • Rulemaking: DEP must adopt rules within one year after the bill’s effective date to implement the expansion, delineation of covered lands, and the per-acre increase formula.
  • Immediate effect: The act takes effect immediately, though ongoing funding formulas and regulations will be implemented through the DEP’s rulemaking process.

Additional Context

  • The bill aligns with broader environmental funding strategies in New Jersey, tying watershed protection to budgeted funds from multiple environmental and energy-related revenue streams.
  • It explicitly earmarks a portion of funds for school funding, linking environmental investments to education funding at the local level.

If you’d like, I can provide a side-by-side comparison with current law or a plain-language FAQ for community members.

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

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