Carteret Business Partnership, Inc. vs. New Jersey Department of Environmental Protection
Argued June 4, 2026 – Decided July 30, 2026
Before Judges Mawla, Marczyk and Puglisi.
On appeal from the New Jersey Department of Environmental Protection.
Dominic J. Aprile argued the cause for appellant (Bathgate Wegener & Wolf, PC, attorneys; William J. Wolf and Daniel J. Carbone, on the briefs).
Elizabeth Delahunty, Deputy Attorney General, argued the cause for respondent (Jennifer Davenport, Attorney General, attorney; Janet Greenberg Cohen, Assistant Attorney General, of counsel; Elizabeth Delahunty, on the brief).
The opinion of the court was delivered by
MARCZYK, J.A.D.
Petitioner Carteret Business Partnership, Inc. (CBP) appeals from the New Jersey Department of Environmental Protection‘s (DEP) November 18, 2024 final agency decision, which reversed the administrative law judge‘s (ALJ) initial decision and granted the DEP‘s motion for summary decision. The primary issue on appeal is whether the DEP has authority under
I.
A. Background.
This appeal arises from the DEP‘s denial of CBP‘s TWA application to construct and operate two gravity sanitary sewer laterals to service a sixty-four-unit mixed-use development in the Borough of Carteret. The proposed
CBP submitted the TWA application to the DEP in November 2022, which included a WQM-003 Consent Form (Consent Form) pursuant to
In a November 7, 2022 letter, CBP requested the DEP approve the application pursuant to
In February 2023, the DEP denied the TWA application. It reasoned it lacked the authority to issue the permit because the MCUA—the wastewater treatment facility owner—had not executed the Consent Form to certify the wastewater would be treated and the plant was following the New Jersey Pollution Discharge Elimination System (NJPDES) permit requirements. The DEP explained:
[The] MCUA has notified this office that they will not endorse and provide consent until . . . Woodbridge provide[s] . . . consent as [the] “Wastewater Conveyance System Owner.” The wastewater flow from this project will be conveyed to the MCUA for
treatment using [a] downstream sewage conveyance system, owned and operated by . . . Woodbridge.
CBP challenged the denial and requested an adjudicatory hearing.1 In October 2023, the matter was referred to the OAL for a hearing before an ALJ. Woodbridge moved to intervene, which the ALJ granted. In April 2024, the DEP moved for summary decision. CBP opposed the motion.
B. The ALJ‘s Initial Decision.
On July 8, 2024, the ALJ issued an initial decision, finding the DEP had authority to consider CBP‘s TWA application pursuant to
Alternatively, if the TWA regulations preclude consideration without the MCUA‘s consent, the ALJ determined the DEP should instruct CBP how to proceed without consent. Accordingly, the ALJ denied the DEP‘s motion for summary decision, granted summary decision in favor of CBP, and ordered the agency to consider CBP‘s TWA application on its merits. The DEP filed exceptions to the ALJ‘s decision, and CBP and Woodbridge filed responses.
C. The DEP‘s Final Agency Decision.
On November 18, 2024, the DEP Commissioner issued a final agency decision, reversing the ALJ‘s initial decision and granting the DEP‘s motion for summary decision. He found the ALJ‘s initial decision failed to follow the plain meaning of
The Commissioner found although
The Commissioner also found the regulatory history of
The Commissioner further found the ALJ‘s initial decision failed to apply the “appropriate deferential standard to [the] DEP‘s interpretation and implementation of its rules.” He noted the ALJ erred in finding the DEP was required to direct CBP on how to move forward if the agency lacked the regulatory authority to review its TWA application. The Commissioner reasoned “no regulatory requirement in
The reasons why [the] MCUA does not wish to consent are irrelevant to this issue of regulatory interpretation and[,] thus, there is no need to delve into the record regarding Woodbridge‘s position and/or contractual relationship with Carteret regarding sewer conveyance and cost-sharing of improvement projects. At the end of the day, [the] MCUA has refused to consent to CBP‘s TWA application, and as a result[,]
N.J.A.C. 7:14A-22.8(a)(3)(v)(5) does not permit [the] DEP to move forward with reviewing and/or approving CBP‘s application. [The] DEP has no regulatory responsibility to interject itself into a dispute between two municipalities.
[(Citation reformatted).]
II.
CBP argues the DEP deprived it of administrative justice by refusing to consider all relevant elements of its TWA application and the reasons the MCUA and Woodbridge denied consent. It asserts the Commissioner failed to appreciate relevant facts and discounted relevant evidence in reaching the agency‘s final decision. CBP challenges the Commissioner‘s statements the DEP “did not rely on the reasons Woodbridge or [the] MCUA provided for not providing consent,” and “[t]he reasons for Woodbridge‘s refusal to consent . . . are outside the scope of th[e] decision.” It contends those statements are contrary to
CBP further argues the Commissioner erred in not considering Woodbridge‘s reasons for withholding consent to its application, given the MCUA‘s denial rested “solely” upon its refusal to consent. It asserts the Commissioner failed to address the ALJ‘s interpretation of the regulations and the DEP‘s obligations, “which placed Woodbridge at the center of the case,” and instead relied on “a literal, restrictive, and inflexible” interpretation, contrary to federal case law, the administrative code, and the DEP‘s own documents.
CBP claims, pursuant to the operational definitions in
Relying on Saginaw Broadcasting Co. v. Federal Communications Commission, 96 F.2d 554 (D.C. Cir. 1938), CBP asserts the Commissioner ignored his obligation to act as a factfinder, as he refused to address facts in the record and further investigate the matter to reach a just conclusion. It contends the DEP‘s failure to consider all facts in the record permitted Woodbridge to exceed its authority as a municipality by controlling CBP‘s access to a sewer line. CBP contends the DEP‘s “strict interpretation of the regulations . . . violated the established doctrine[s] of flexibility and fairness” and resulted in a “rigid” final agency decision in violation of
CBP claims Woodbridge changed its position several times, which alone warrants the DEP‘s consideration in evaluating its TWA application. Moreover, it argues the DEP considered immaterial facts and “interject[ed] itself into the irrelevant intermunicipal dispute” between Woodbridge and Carteret, allowing Woodbridge to “become the sole arbiter of administrative control over access to public works,” contrary to its regulatory obligations. It contends the DEP failed in its obligation to coordinate between municipalities
CBP further argues
(1) whether the agency‘s action violates express or implied legislative policies, that is, did the agency follow the law; (2) whether the record contains substantial evidence to support the findings on which the agency based its action; and (3) whether in applying the legislative policies to the facts, the agency clearly erred in reaching a conclusion that could not reasonably have been made on a showing of the relevant factors.
[In re Stallworth, 208 N.J. 182, 194 (2011) (quoting In re Carter, 191 N.J. at 482-83).]
Courts are “obliged to give due deference to the view of those charged with the responsibility of implementing legislative programs.” In re Reallocation of Prob. Officer, 441 N.J. Super. 434, 444 (App. Div. 2015) (quoting In re N.J. Pinelands Comm‘n Resol., 356 N.J. Super. 363, 372 (App. Div. 2003)). Thus, we “give substantial deference to an agency‘s interpretation of the statute it is charged with carrying out, as well as to the interpretation the agency itself gives to its own regulations.” Fedor v. Nissan of N. Am., Inc.,
Nevertheless, courts will not defer to an agency‘s interpretation of its own regulations if that interpretation is “plainly unreasonable.” Id. (quoting In re Election, 201 N.J. at 262). If a court “is satisfied after its review that the evidence and the inferences to be drawn therefrom support the agency head‘s decision, then it must affirm even if the court feels that it would have reached a different result.” Campbell v. N.J. Racing Comm‘n, 169 N.J. 579, 587 (2001) (quoting Clowes v. Terminix Int‘l, Inc., 109 N.J. 575, 588 (1988)). “Accordingly, it is ‘a rare day when an agency cannot give a plausible interpretation for one of its own regulations.‘” In re Eastwick Coll. LPN-to RN Bridge Program, 225 N.J. 533, 542 (2016) (quoting US Bank, 210 N.J. at 203-04).
On a de novo review of an agency‘s interpretation of one of its regulations, “[w]e interpret a regulation in the same manner that we would interpret a statute.” Id. (alteration in original) (quoting US Bank, 210 N.J. at 199). Our “paramount goal” is to determine the intent of the drafter, which can
Summary decisions under
Persons who propose to build, install, or modify treatment works that require the [DEP]‘s approval pursuant to this subchapter, shall submit the following information and documents in the manner prescribed in this subchapter:
. . . .
3. A resolution and/or written statement of consent from the affected municipality, sewerage authority, owner of the receiving treatment plant, owner/operator of the wastewater conveyance system into which the project will directly connect, and district sludge management lead planning agency (if applicable, see (a)(3)(ii) below) or completion of the [DEP]‘s [Consent Form].
. . . .
iii. Written statements of consent from the affected sewerage authority shall contain a certification concerning the plant‘s compliance with applicable NJPDES permit requirements.
iv. A written statement of consent from the owner/operator of the conveyance system must
certify that the conveyance system has adequate conveyance capacity as defined in N.J.A.C. 7:14A-1.2 , to convey the additional flow.
[(Emphases added) (citations reformatted).]
If an applicant is unable to obtain the required written statement of consent, then the applicant may choose to follow the procedures stated in (a)(3)(v)(1) through (5) below. . . .
(1) The affected sewerage authority or municipality shall submit a written statement of consent to the application or submit written comments to the [DEP] within [sixty] days of the request for consent. Prior to the expiration of the [sixty-]day period to respond [to] a request for a written statement of consent, the municipality or sew[er]age authority may request a [thirty-]day extension for review of a request for consent.
(2) Any document issued by a sewerage authority or municipality which is tentative, preliminary, or conditional approval shall not be considered a statement of consent.
(3) When the affected sewerage authority or municipality does not consent to a project, it shall state all reasons for rejection or disapproval in a resolution and send a certified copy of the resolution to the [DEP].
(4) When the affected municipality or sewerage authority expressly denies a request for a written statement of consent for a project, the permit application may be determined by the [DEP] to be incomplete for processing; or in the alternative, the [DEP] may review the reasons for denial. Any such reasons shall be considered by the [DEP] in determining whether to issue a [TWA] or sewer connection approval in accordance with this subchapter. (5) When the affected municipality or sewerage authority does not issue either a written statement of consent or a denial of the request for consent, the [DEP], upon receipt of proof that the applicant has delivered to the affected agency a written request for a written statement of consent, shall review the reasons for the lack of consent or denial, if known on the basis of reasonably reliable information. Any such reasons shall be considered by the [DEP] in determining whether to issue a [TWA] or sewer connection approval in accordance with this subchapter.
[(Emphases added) (citation reformatted).]
The Commissioner‘s interpretation of
“If a regulation includes particular language in one section but omits it in another, ‘it is generally presumed that [the state agency] acts intentionally and purposely in the disparate inclusion or exclusion.‘” Est. of Campagna v. Pleasant Point Props., LLC, 464 N.J. Super. 153, 176 (App. Div. 2020) (alteration in original) (quoting N.J. Div. of Child Prot. & Permanency v. R.L.M., 236 N.J. 123, 148 (2018)) (finding regulations, which made a prospective owner or operator‘s criminal history a basis to deny licensure, but did not contain any comparable provisions about the significance of a
The Commissioner‘s finding the DEP intended to mandate the owner of a receiving wastewater treatment plant‘s consent based on the regulatory history was reasonable. In the DEP‘s January 5, 2009 response to a comment, it explained the agency‘s purpose in requiring the owner of the receiving treatment plant‘s consent:
The TWA program does not allocate flow capacity for projects subject to TWA. This is the responsibility of the owner of the receiving wastewater treatment plant and owner/operator of the wastewater conveyance
system into which the project will directly connect. Subject to meeting all other administrative and technical requirements, TWAs can be processed for approval, as long as the owner of the receiving wastewater treatment plant and owner/operator of the wastewater conveyance system into which the project will directly connect consent to the additional flow anticipated from the project. Such consent is one of the TWA administrative requirements found in N.J.A.C. 7:14A-22.8(a)(3) .[
41 N.J.R. 142(a) , 171-72 (Jan. 5, 2009) (response to comment 195) (emphases added) (citation reformatted).]
Accordingly, the regulatory history expressly states the owner of the receiving wastewater treatment plant‘s consent is an “administrative requirement[],” implying the DEP cannot approve a TWA application lacking such consent. See
Given it was undisputed the MCUA did not sign the Consent Form attached to CBP‘s application, the DEP was not required to engage in additional fact-finding or review the MCUA‘s or Woodbridge‘s reasoning for their withholding consent. Accordingly, we affirm the DEP‘s November 18,
To the extent we have not specifically addressed any remaining arguments CBP raised, we conclude they lack sufficient merit to warrant discussion in a written opinion.
Affirmed.
I hereby certify that the foregoing is a true copy of the original on file in my office.
M.C. Harley
Clerk of the Appellate Division