M E M O R A N D U M

TO:                      New Jersey Department of Environmental Protection

FROM:                Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                        New Jersey’s Protecting Against Climate Threats (NJPACT) Resilient Environments and Landscape (REAL) Rules

DATE:                November 7, 2024

The Chamber of Commerce Southern New Jersey (CCSNJ) is the region’s largest and most influential business organization representing businesses in the seven most southern counties of New Jersey, as well as greater Philadelphia and northern Delaware. The CCSNJ has approximately 1,200 member companies, of which 85 percent are small businesses that employ less than 50 people, as well as 130 nonprofit members.

The CCSNJ would like to voice our opposition to the New Jersey Department of Environmental Protection’s proposed Protecting Against Climate Threats (NJPACT) Resilient Environments and Landscapes (REAL) Rule. While we acknowledge the importance of environmental sustainability and the need to mitigate climate risks, this proposal raises significant concerns regarding its potential economic impact on businesses and communities in South Jersey.

The NJPACT REAL Rule proposal would impose substantial additional costs on businesses, both in coastal and flood-prone areas and far beyond. The proposed “Inundation Risk Zone” standards, along with new elevation and construction requirements, place a significant financial burden on industries that rely on access to coastal areas, including tourism, transportation, and manufacturing. These added expenses could deter investments in New Jersey, leading to a potential decrease in job creation and economic growth within the region.

The new flood hazard maps included in the REAL Rule are excessively expand flood zones far beyond current Federal Emergency Management Agency (FEMA) standards. By incorporating a “climate-adjusted flood elevation” that adds several feet to FEMA’s 100-year flood levels, the NJDEP’s approach may overestimate risk in many areas. This results in unnecessarily high compliance costs, increased insurance premiums, and stringent building restrictions for property owners, often without sufficient evidence to justify these extreme boundaries. The CCSNJ strongly recommends that NJDEP re-evaluate the mapping methodology and adopt a balanced approach that aligns more closely with FEMA’s established criteria, ensuring that flood risk assessments are realistic and scientifically supported without unduly burdening New Jersey’s businesses and communities.

South Jersey’s economy is heavily reliant on the tourism industry, particularly in coastal towns and shore points that attract millions of visitors each year. These proposed regulations would make development and maintenance in these areas more costly, limiting tourism-related businesses’ ability to operate. Increased flood resilience measures, construction elevation standards, and restrictions on development in flood-prone zones could reduce the accessibility and appeal of these destinations. The tourism sector, which supports thousands of jobs in South Jersey, may struggle under the financial and regulatory pressures imposed by the REAL Rule. This would not only affect businesses directly tied to tourism but could also harm the broader regional economy that benefits from the influx of visitors each season.

Additionally, the proposed rule significantly expands the NJDEP's regulatory scope, which may lead to duplicative and burdensome compliance requirements for businesses. Aligning state standards with federal FEMA flood zones and the proposed “climate-adjusted flood elevation” would require businesses to undertake new assessments and modifications that exceed federal standards, potentially creating confusion and delays in permitting processes. This overreach could delay projects vital to economic recovery, especially in sectors that have not yet fully rebounded from the COVID-19 pandemic.

The CCSNJ is concerned about several of the rule’s provisions, such as the establishment of strict building codes in coastal areas and the extensive use of green infrastructure for stormwater management, present practical challenges. These measures, while aimed at promoting resilience, are not feasible in all contexts, particularly for businesses that lack the land or resources to accommodate green infrastructure or elevated building structures. The one-size-fits-all approach fails to consider the unique constraints faced by businesses across different sectors and geographical areas.

The proposed rule limits certain types of development in designated flood hazard areas and requires extensive riparian zone protections. While we understand the intent of these rules, they may inadvertently limit development opportunities, especially in communities that are dependent on coastal and waterfront access. Limiting development in these areas will stifle economic growth, impacting local communities and revenue streams that are essential for funding public services.  

Given the scope of the impact that these rules will have, the CCSNJ urges NJDEP to ensure a more inclusive and transparent process by conducting additional stakeholdering. especially with affected local elected officials in impacted areas. Without thorough input from all stakeholders, the rule risks implementing measures that are disconnected from the realities faced by New Jersey’s diverse business sectors, leading to unforeseen economic consequences and operational challenges for businesses across the state.

The CCSNJ is committed to working with NJDEP to achieve a balanced approach to climate resilience that safeguards New Jersey’s environment while supporting economic growth and business viability. We believe that the REAL Rule, as currently proposed, imposes unreasonable burdens that may lead to economic hardship and reduced competitiveness for New Jersey businesses. We urge NJDEP to revisit this rule with consideration for the concerns raised by the business community and to work with stakeholders to develop practical, flexible, and economically viable solutions.

Thank you for considering our comments. We look forward to continuing dialogue and collaboration with NJDEP on creating a sustainable and economically prosperous future for New Jersey.