HIGHLANDS BILL QUESTIONS AND ANSWERS

[Bill as voted out of committees 6/7/04]

INTRODUCTION

What is the main purpose of the Highlands bill? To protect our drinking water. Over 4 million people. That's more than half of all New Jerseyans, including 292 municipalities and 16 counties.

How important is Highlands' water to jobs and the State economy? Extremely important. Major business in the State, such as the multi-billion dollar pharmaceutical and food processing industries, depend on Highlands' water. So too, does the eco-tourism industry. The same large forested areas that supply Highlands' water make the region a tourist destination for twenty-two million people a year, more than visit Yellowstone National Park and Yosemite combined.

How is preservation of the Highlands related to water treatments costs? According to the North Jersey District Water Supply Commission, if we don't preserve critical lands in the Highlands, taxpayers will have to spend $30 billion in water treatment costs between now and 2050 just to treat water from two of the Highlands' major reservoirs (Wanaque and Monksville).

Where are the important drinking water lands in the Highlands? The legislation designates a Preservation Area that is primarily comprised of the lands that supply the drinking water to the State's major reservoirs in the north and to the Spruce Run and Round Valley reservoirs in the South.

BILL SUMMARY

Of the over 800,000 acres that make up the Highlands region, the legislation defines a preservation area of approximately 398,000 acres with approximately 145,000 acres of undeveloped land. The remainder of the region shall be included in the planning area. The Council will prepare a master plan for the entire Highlands region (preservation and planning areas) within 18 months.

The Act creates a Highlands Water Protection and Planning Council, which will consist of 8 elected officials from Highlands' counties (5 municipal and 3 county elected officials) (no more than 4 from the same political party) and 7 residents of the State (they must all satisfy stated requirements for relevant knowledge and experience)( 4 must be landowners, business owners or farmers in the Highlands Region or residents or non-residents who benefit from or consume water from the Highlands Region).

Municipal and county plans for land in the preservation area must be consistent with the Highlands master plan. Municipal and county plans in the planning area will be encouraged, through the use of incentives, to be consistent with the Highlands master plan. Various other agencies and commissions with land use and water quality and quantity responsibilities in the Highlands are required to consult with the Council to ensure that their actions are consistent with the Act.

There will be adequate protections in the preservation area to safeguard drinking water and other important environmental resources.

There will be real incentives for smart growth and for directing growth to appropriate areas through a transfer of development rights program.

Land preservation will be funded through: existing Garden State Preservation Trust funds; a portion of funds approved by the votes for this purpose in November 2003; and developer fees (as implemented through a transfer of development rights program). Dedicated revenues from the Realty Transfer Tax will provide the financial incentives and benefits for towns that receive growth.

MYTHS ABOUT THE LEGISLATION

Can a landowner to put on a deck or porch? Yes. Improvements to single-family homes existing on the date of enactment -- such as an addition, garage, shed, driveway, porch, deck, patio, swimming pool or septic system -- would be exempt under the bill. [Section 30]

Can a landowner to construct a single family home on a lot owned by the individual on the date of enactment? Yes. [Section 30]

Can a landowner rebuild a building? Yes. [Section 30]

Is the State taking land without just compensation? No. The legislation specifically allows the construction of single family homes. In addition, the bill contains a specific provision that requires Green Acres and the State Agriculture Development Commission to utilize an appraisal that establishes a "pre-Act" value. [Sections 28 & 53j & 54j]

Can a landowner harvest forest products in accordance with an approved forest management plan? Yes. [Section 30]

Can schools, places of worship and hospitals make improvements? Yes. [Section 30]

Can routine maintenance of roads be performed? Yes. [Section 30]

Can transportation projects that have been approved by the voters proceed? Yes. [Section 30]

Can development projects proceed if they are far enough along in the approval process? Yes, the bill includes a grandfather provision for projects that have at least one local approval and one DEP permit. [Section 30]

" Is the DEP's limited right of access to a property for the purposes of carrying out its duties under the bill modeled after existing legislation? Yes. It is modeled after the Fresh Water Wetlands Act (the DEP has less authority under the Highlands' bill version).

Is the DEP's limited right of access to a property for the purposes of carrying out its duties under the bill modeled after existing legislation? Yes. It is modeled after the Fresh Water Wetlands Act (the DEP has less authority under the Highlands' bill version).

GROWTH

Will the bill prohibit all growth in the Highlands? No. Contrary to what opponents claim, the bill does not make the Highlands region a "no growth" area. The bill does not contain a development moratorium or permit freeze. Redevelopment within and outside the preservation area will be allowed. Real incentives would be provided to support and encourage appropriate economic development and growth outside of the preservation area.

What specific policy will assist towns in the planning area grow smart? In the planning area, there are approximately 363,000 acres where the highlands preservation area regulations will not apply. There will be transfer of development rights receiving zones (as defined on page 4), incentives (such as state aid to support smart growth infrastructure) and clustering incentives. In the preservation area, there will be an exemption for single-family homes, provisions for redevelopment and for brownfields development.

Does the bill mandate growth areas in the Highlands? No, the creation of growth areas will be voluntary; incentives will be provided for towns that agree to receive growth. At public hearings, the public voiced strong objection to mandating growth areas. Also, home rule advocates have objected to giving the Council mandatory powers outside the Preservation Area.

How will adequate housing be provided in the Highlands region? Housing supply will be protected. The reality is that unless we protect our drinking water, there can be no new homes in the Highlands and families that want to continue living there may not be able to. Regional planning, transfer of development rights (including impact fees and other substantial incentives to encourage the creation of TDR receiving zones) and affordable housing obligations will provide appropriate housing.

TAX PAYER ASSISTANCE

Will there be taxpayer relief? Yes, watershed aid and property tax stabilization aid programs are contained in the legislation.

What watershed aid will there be? Towns received no watershed aid this year. Under the bill, they will receive $47 per acre.

What property tax stabilization aid will there be? Towns in the preservation area will be compensated for lost tax revenues attributable to the bill for a period of ten years. This is based on a program that Pinelands' towns have approved of.

FARMING

What percentage of the Preservation Area is made up of Agricultural Lands? Only 8%.

Will Highlands-specific regulations apply to farms outside the Preservation Area? No.

For farms in the Preservation Area, does the bill cut back on existing, active farm activities? No. The bill specifically exempts farming activities from the Act's provisions.

Can a farmer in the Preservation Area build structures, such as greenhouses? Yes. Farmers can exceed the Act's 3% impervious cover limit by preparing a farm conservation plan. Beyond 9% a farmer would have to meet more stringent standards adopted by the Department of Agriculture and the Department of Environmental Protections. The farm bureau specifically supports these provisions.

REGULATION

Doesn't existing regulation already fully protect our drinking water resources in the Highlands? No. For instance, DEP does not have authority to stop construction on steep slopes near reservoirs.

Where will Highlands-specific regulations apply? The bill provides for environmental regulations that would be applicable only in the Preservation Area.

How many acres will be affected by Highlands-specific regulations? Approximately 145,000 acres. The entire Preservation Area is about 395,000 acres is size. Approximately 79,000 of those acres are already developed and approximately 171,000 acres are already environmentally protected; that leaves just 145,000 acres (of the almost 800,000 acres in the entire Highlands region) that will be affected by the Highlands-specific regulations.

If a town in the Planning Area "opts in" does that mean that the Preservation Area regulations would then apply? No. Opting in would just mean opting into the regional plan prepared by the Council..

COMMERCIAL DEVELOPMENT

What will be the effect of the bill on large, commercial development? There will be little effect. Large commercial development is generally located the growth areas identified in the State Plan (PA1 and PA2 planning areas). 96% of these areas in the Highlands are located outside the Preservation Area. In addition, 100% of the State Plan Designated Centers in the Highlands are outside the Preservation Area.

TRANSFER OF DEVELOPMENT RIGHTS PROGRAM

What is a transfer of development rights ("TDR") program? Essentially, it is a system in which a landowner in a TDR "sending zone" (because of its importance for supplying drinking water) gets credits that he can redeem for money from the TDR bank and those credits can be used by developers to get permission for denser development in TDR "receiving zones" (where it is appropriate to grow). TDR sending zones will be in the Highlands Preservation Area and TDR receiving zones will be outside the Preservation Area.

Will the Highlands' TDR program be consistent with the Statewide TDR program passed recently? Yes.

What is being done to make the program effective? Learning from the experience with TDR in the Pinelands, the Highlands' TDR program will establish dollar value for the credits (easily payable and redeemable). Also, the bill provides strong incentives for municipalities outside the Preservation Area (in planning area towns and in portions of counties outside of and adjacent to the Highlands region) to establish receiving areas: municipalities will be authorized to impose impact fees on residential development, eligible for grants planning grants and grants for needed amendments to ordinances, entitled to legal representation, and accorded priority status for State capital improvement or infrastructure programs within the Highlands region. The administration has also committed to providing immediate funding for the bank so that it can get up and running quickly and effectively.

TRANSPORTATION

Will the bill affect road repair and maintenance projects? Yes. The bill does not limit repair and maintenance projects and safety measures.

Can transportation projects that have been approved by the voters proceed? Yes.

FUNDING

How will land preservation be funded? Land preservation will be funded through: the existing Garden State Preservation Trust programs; ballot initiative I approved by the voters in November 2003 (a portion which will go to the Highlands); and developer fees (i.e. fees paid by developers in order to be permitted to build in voluntary receiving zones where development is appropriate and approved of by the town).

How will incentives for towns be funded? Dedicated revenues from the Realty Transfer Tax will provide the financial incentives and benefits for towns that receive growth.

Will the use of Garden State Preservation Trust program funds for Highlands purchases take funding away from potential acquisitions outside the Highlands? No. The bill specifically provides that the amount spent for State purchases will be at least as much as the amount spent in each county between 2000 and 2004.

WHY ACT NOW?

Are we "rushing" the protection of the Highlands? No. The issues have been studied and studied for years. Over the past 20 years, three Governors appointed task forces that studied the Highlands. The US Forest Service did an exhaustive study in 1998 and 2002 concluding the area needed additional protections. Governor McGreevey's Highlands Task Force spent 6 months studying the highlands and the bipartisan body produced an action plan recommending immediate action.