{"id":3031,"date":"2022-07-19T12:56:45","date_gmt":"2022-07-19T16:56:45","guid":{"rendered":"https:\/\/deptest.nj.gov\/dwq\/?page_id=3031"},"modified":"2026-03-26T15:12:27","modified_gmt":"2026-03-26T15:12:27","slug":"swu_stormwaterutility","status":"publish","type":"page","link":"https:\/\/deptest.nj.gov\/stormwater\/swu_stormwaterutility\/","title":{"rendered":"Stormwater Utility Guidance"},"content":{"rendered":"<p>[vc_row full_width=&#8221;stretch_row&#8221;][vc_column][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][info-box-shortcode]<\/p>\n<h3 style=\"text-align: center\">New Jersey Stormwater Utility Count: 4<\/h3>\n<p>[\/info-box-shortcode][\/vc_column_inner][vc_column_inner width=&#8221;1\/4&#8243;][\/vc_column_inner][\/vc_row_inner][\/vc_column][vc_column][vc_empty_space][vc_column_text css=&#8221;.vc_custom_1774537905215{margin-right: 75px !important;margin-left: 75px !important;}&#8221;]The information provided below is an overview of the process for establishing a stormwater utility (also referred to as SWU). This page also includes links to the other guidance webpages on key topics, such as stormwater asset management plans, performing feasibility studies, and various rate structure options for setting fees and credits.<\/p>\n<h3><span style=\"color: #000000\">Background &amp; General Information<\/span><\/h3>\n<p>In March 2019, the\u00a0<a href=\"https:\/\/pub.njleg.gov\/bills\/2018\/PL19\/42_.PDF\" target=\"_blank\" rel=\"noopener\">Stormwater Utility Law<\/a>,\u00a0officially known as the &#8216;Clean Stormwater and Flood Reduction Act&#8217;, was signed into law. This Act authorizes local and county governments and certain utilities the ability to create stormwater utilities. A stormwater utility is currently the only mechanism that would be able to dedicate these funds directly to stormwater management, thus allowing a utility to properly operate, maintain, repair, and improve their storm sewer system as necessary.<\/p>\n<p>A public utility is an organization that maintains the infrastructure for a public service; a stormwater utility is a public utility that assesses fees and uses the revenue from these fees to maintain infrastructure designed to control stormwater flooding and reduce pollutants from entering into waterbodies.<\/p>\n<p>According to the Act, the established utility fees must be based on a &#8220;fair and equitable approximation of the proportionate contribution of stormwater runoff from a real property.&#8221;<\/p>\n<h3><span style=\"color: #000000\">Stormwater Basics<\/span><\/h3>\n<p>Water from rain and melting snow that flows over lawns, parking lots and streets is known as stormwater runoff. This stormwater runoff may flow through gutters, into catch basins, through storm drain pipes and ditches, or over streets and paved areas. Along the way, the stormwater runoff picks up trash (fast-food wrappers, cigarette butts, Styrofoam cups, etc.) and toxins, bacteria and other pollutants (such as gas, motor oil, antifreeze, fertilizers, pesticides, and pet droppings). This stormwater runoff is usually not treated, and is discharged into local surface waterbodies and groundwater.<\/p>\n<p>This polluted stormwater runoff can contaminate drinking waterbodies, it can force the closing of beaches because of health threats from harmful bacteria to swimmers, including those from Harmful Algal Blooms (HABs), it can kill fish and other wildlife, and it can destroy wildlife habitat.<\/p>\n<p>In most towns, the Department regulates stormwater runoff from municipal separate storm sewer systems (MS4s) owned or operated by towns and other MS4 permittees in the state via the\u00a0MS4 General Permits.\u00a0The Department has also issued the\u00a0Combined Sewer Overflow (CSO) permits\u00a0to regulate stormwater in 21 towns that have combined stormwater and sanitary sewage systems.<\/p>\n<p>Human activity is\u202fthe primary cause of stormwater pollution. Everything that we put on the ground or into the storm drain can end up in our water.\u202f\u202fEach of us has a responsibility to make sure these contaminants stay out of our water<\/p>\n<h3 id=\"stormwater-basics\" class=\"text pt-1 pb-2\" style=\"text-align: left\" align=\"center\">Who Can Establish A Stormwater Utility?<\/h3>\n<p style=\"text-align: left\" align=\"center\">The Act specifies that only the following entities can form a Stormwater Utility:<\/p>\n<ul>\n<li>The governing body of a single municipality<\/li>\n<li>The governing body of a single county<\/li>\n<li>Municipal utilities authority<\/li>\n<li>Utilities authority<\/li>\n<li>County improvement authority<\/li>\n<li>Sewerage authority<\/li>\n<\/ul>\n<div align=\"center\">\n<p style=\"text-align: left\" align=\"center\"><strong>More specifically, the Act states that a stormwater utility shall only be developed by these specific entities, as follows:<\/strong><\/p>\n<ol>\n<li style=\"text-align: left\">A<strong>\u00a0single county\u00a0<\/strong>or a\u00a0<strong>single municipality,<\/strong> which will be considered a \u201cmunicipal public utility.\u201d\n<ul>\n<li style=\"text-align: left\">&#8220;&#8230;a county or municipality may establish a stormwater utility as a new department within the county or municipality, or as an operation of an existing department or departments having responsibility and control over stormwater management systems or portions thereof.&#8221;<\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: left\">The governing body or bodies of one or more municipalities that have established a <strong>municipal sewerage authority<\/strong>\u00a0or a\u00a0<strong>municipal utilities authority.<\/strong>\n<ul>\n<li>&#8220;Upon the request of a municipality of municipalities, an authority may establish a stormwater utility pursuant to a service agreement between the authority and the requesting municipality or municipalities&#8230;&#8221;<\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: left\">The governing body of any county that has established a <strong style=\"text-align: center\">county sewerage authority<\/strong><span style=\"text-align: center\">, a\u00a0<\/span><strong style=\"text-align: center\">county utilities authority<\/strong><span style=\"text-align: center\">, or a\u00a0<\/span><strong style=\"text-align: center\">county improvement authority.<\/strong>\n<ul>\n<li>&#8220;Upon the request of a county, an authority may establish a stormwater utility pursuant to a service agreement between the authority and the requesting county&#8230;&#8221;<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h3 class=\"text pt-1 pb-2\" style=\"text-align: left\" align=\"center\">DEP Responsibilities<\/h3>\n<p style=\"text-align: left\">As required under the Act, the Department is required to provide guidance on the stormwater utility topics listed below. This guidance, as well as other general information, is being maintained on the Department&#8217;s webpage to assist towns, counties, and authorities in developing Stormwater Utilities.<\/p>\n<ol style=\"text-align: left\">\n<li><a href=\"https:\/\/deptest.nj.gov\/stormwater\/swu_stormwaterutility\/swu_establishing_utility\/\">Establishing a Stormwater Utility<\/a><\/li>\n<li><a href=\"https:\/\/deptest.nj.gov\/stormwater\/swu_stormwaterutility\/fees-credits-and-exemptions\/\">Fees, Credits and Exemptions<\/a><\/li>\n<li><a href=\"https:\/\/deptest.nj.gov\/stormwater\/swu_stormwaterutility\/using-fees\/\">Using Utility Fees<\/a><\/li>\n<li><a href=\"https:\/\/deptest.nj.gov\/stormwater\/swu_stormwaterutility\/asset-management\/\">Asset Management<\/a><\/li>\n<li><a href=\"https:\/\/deptest.nj.gov\/stormwater\/swu_stormwaterutility\/swu-resources\/\">SWU Resources<\/a><\/li>\n<\/ol>\n<p style=\"text-align: left\" align=\"center\">When a stormwater utility is created in New Jersey, the DEP and the Department of Community Affairs (DCA) will be responsible for receiving submissions by local and county governments that demonstrate the local governments&#8217; compliance with the Act.<\/p>\n<p style=\"text-align: left\">DEP is working in collaboration with DCA and the Board of Public Utilities (BPU) as their laws and regulations will likely be affected during the forming of utilities under this Act. The office of Local Government Services, within the DCA, is currently drafting regulations regarding the Stormwater Utility annual report requirements noted in the Act.\u00a0 You may check their website(s) at\u00a0<a href=\"https:\/\/www.nj.gov\/dca\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\">NJ Department of Community Affairs<\/a>\u00a0for future updates regarding these rule amendments.<\/p>\n<h3 class=\"text pt-1 pb-2\" style=\"text-align: left\" align=\"center\">Stakeholder Involvement<\/h3>\n<p style=\"text-align: left\">DEP developed this guidance in a transparent manner, using the expertise of stakeholders who advised and guided DEP&#8217;s efforts.<\/p>\n<\/div>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row&#8221;][vc_column][vc_empty_space][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row full_width=&#8221;stretch_row&#8221;][vc_column][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][info-box-shortcode] New Jersey Stormwater Utility Count: 4 [\/info-box-shortcode][\/vc_column_inner][vc_column_inner width=&#8221;1\/4&#8243;][\/vc_column_inner][\/vc_row_inner][\/vc_column][vc_column][vc_empty_space][vc_column_text css=&#8221;.vc_custom_1774537905215{margin-right: 75px !important;margin-left: 75px !important;}&#8221;]The information provided below is an overview of the process for establishing a stormwater utility (also referred to as SWU). This page also includes links to the other guidance webpages on key topics, such as stormwater asset management plans, [&hellip;]<\/p>\n","protected":false},"author":167,"featured_media":3084,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"fullwidth-title.php","meta":{"footnotes":""},"class_list":["post-3031","page","type-page","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/pages\/3031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/users\/167"}],"replies":[{"embeddable":true,"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/comments?post=3031"}],"version-history":[{"count":2,"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/pages\/3031\/revisions"}],"predecessor-version":[{"id":10323,"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/pages\/3031\/revisions\/10323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/media\/3084"}],"wp:attachment":[{"href":"https:\/\/deptest.nj.gov\/stormwater\/wp-json\/wp\/v2\/media?parent=3031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}