(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for
the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not have been summarized).
HOLGATE PROPERTY ASSOCIATES V. TOWNSHIP OF HOWELL, ET AL. (A-127-95)
Argued March 12, 1996 -- Decided July 29, 1996
HANDLER, J., writing for a unanimous Court.
The issue on this appeal is whether use of property involving a sludge-derived product (SDP) is
eligible for exemption by the Department of Environmental Protection (DEP) from the formal permitting
requirements of the Solid Waste Management Act (SWMA). A related issue is whether the SWMA, in its
application to SDPs, preempts local zoning and other police power laws, and thus bars the exercise of
municipal authority over activities involving SDPs.
Holgate Property Associates (Holgate) owned property in Howell Township that had been used as a
sand and gravel quarry since 1930. Holgate operated the property for over ten years pursuant to a township
soil-removal permit, issued in accordance with the local soil-removal ordinance. Holgate had used the
property for both soil removal and clay and topsoil mixing, and had made large distributions of soil to a
landfill in Monmouth County.
In 1989, Holgate transported composted sludge to its quarry from Philadelphia to use as soil
conditioner to reclaim the land on a part of its property. The DEP authorized an NJPDES permit
exemption for that activity. The DEP provided Howell Township with a copy of that exemption. The
Township did not object at that time.
The Middlesex County Utilities Authority (MCUA) operates a sludge-processing facility. On
February 26, 1991, the DEP issued a NJPDES permit authorizing the MCUA to process sludge and to
distribute the resulting SDP. The DEP also issued a separate permit authorizing the MCUA to "Produce
and Store Sludge-Derived Product Mixtures" at the Holgate property "for the Distribution to Landscapers
and Other End Users." Pursuant to those permits, Holgate began to transport SDP from the MCUA facility
to its quarry for use in mixing with sand and topsoil.
In July 1993, local residents complained of strong odors and contended that SDP-runoff was finding
its way into nearby streams. Howell Township scheduled a meeting with Holgate to discuss its operations at
the quarry. Immediately before the meeting was to begin, Howell Township served Holgate with a Stop
Work Order that required Holgate to apply to the Zoning Board of Adjustment (Board) for an
interpretation and/or use variance for this procedure within ten days. On August 18, 1993, Holgate filed an
interpretation application with the Board, and a hearing was scheduled for September 21, 1993.
A day before the hearing was scheduled, Holgate filed a complaint in support of an Order to Show
Cause, seeking to enjoin enforcement of the Stop Work Order and to obtain a declaration that the SWMA
preempted Howell Township from enforcing its zoning and soil removal ordinance. After a hearing on the
preemption issue, the court held that the SWMA generally preempts other local government regulations
because it presents a comprehensive statutory and regulatory scheme that completely occupies the field of
solid waste management, even though general statutory authority exists for local regulation of health and
safety issues. The court then ruled that the Stop Work Order was an attempt to regulate sludge
management that conflicted with the legislative scheme and obstructed the legislative objective of a
comprehensive statewide approach to sludge management and, therefore, was preempted. The court
restrained enforcement of the Stop Work Order and Howell Township appealed.
The Appellate Division reversed, framing the issues in terms of the procedural requirements that the
DEP must fulfill for its decisions to have preemptive effect over municipal zoning laws in respect of the site
used for the processing and distribution of SDPs. The Appellate Division essentially held that the SWMA
does not by itself preempt local regulation; rather, it is the adoption of the district plan under the SWMA
that gives the SWMA preemptive effect. Therefore, the court concluded that the DEP, though having the
interim or transitional power, in the absence of a district plan, to approve a site for SDP processing, does not
thereby preempt local authority over such activities unless it complies with the "basic planning procedures
and criteria of the SWMA before approving a facility." Applying that interpretation to the facts, the court
concluded that the DEP failed to conform with the SWMA because the MCUA's permit exemption
application did not provide adequate information for the DEP to consider local concerns, and the DEP did
not consult with Howell Township or the district's Advisory Solid Waste Council, or hold a public hearing as
otherwise required under the SWMA.
The Supreme Court granted Holgate's petition for certification, which the DEP joined.
HELD: The approval of the permit exemption for the operation of a sludge-derived product (SDP) site does
not require the public-notice procedures, under the Solid Waste Management Act, applicable to the
approval of a solid waste facility. However, the DEP should give notice to affected municipalities
and consider their public health and safety concerns and zoning and land-use regulations when
deciding whether a facility using SDPs will be exempt from permitting requirements.
1. In passing the SWMA, the Legislature understood that the management of solid waste affects matters of
public policy and important concerns relating to the public health, safety and welfare. The Legislature
recognized that the management of solid waste should be coordinated as a statewide system but that it
entails a degree of expertise beyond the capacities and interests of local government. Nevertheless, because
of the significant impact that state-level decisions would have throughout the State, the management of solid
waste was required to be effectuated at the local level and to involve maximum government and public
participation at that level. The Legislature's scheme for sludge management contemplates that an SDP that
meets certain requirements is essentially a beneficial product and, therefore, is not subject to extensive
regulation. However, to protect ground and surface water, sites where SDPs are handled, stored or disposed
are required to obtain a NJPDES permit. (pp. 7-10)
2. The Appellate Division misapprehended the critical difference between sludge and sludge-derived
products. As a result, the court failed to stress the policies underlying the SWMA's treatment of sludge, and,
particularly, the importance of SDPs as the means through which sludge can be effectively managed and
ultimately disposed. The approval of the permit exemption for the operation of an SDP site does not require
the public-notice procedures applicable to the approval of a solid waste facility. Under the SWMA, the
individual-site approvals of SDP sites do not invoke, and should not be hampered by, the procedural
requirements otherwise applicable to solid-waste facilities. Consistent with the legislative scheme of the
SWMA, there should be substantial deference afforded to the DEP as the administrative agency charged with
the regulation of the operations of the entities disposing of SDPs. The DEP's regulations are within its
delegated authority under the statute and, thus, are to be afforded deference. (pp. 10-13)
3. Although the statute and regulations do not require formal public notice or participation in the approval process by local government and the public, there is an implied duty on the part of the DEP to consider local concerns that will be affected by the operation at the proposed site. An implied duty of the state administrative agency to give notice to the public may be recognized where the exercise of that agency's powers has a distinctive impact on a particular locality and its citizens. The statement of public policy by the Legislature in passing the SWMA places a burden on the DEP to consider local concerns in deciding whether to exempt a certain SDP-using facility from formal permitting requirements. The failure to give notice to affected municipalities raises the risk that the DEP's ultimate decision will not give sufficient weight to relevant matters affecting appropriate land uses in public health and safety. Such a decision would
constitute an abuse of discretion. That requirement does not necessitate a plenary or general public hearing.
It is sufficient that the local government and the public are duly notified and given the opportunity to express
their views on a proposed use of the site. (pp. 13-17)
4. Because this opinion announces a new administrative rule that could potentially require DEP to revisit all
outstanding permit exemptions, it shall not be given retroactive effect. (p. 17)
Judgment of the Appellate Division is REVERSED.
JUSTICE O'HERN, concurring in the judgment and the opinion of the Court, writes separately
simply to observe that the opinion does not suggest that the DEP's exclusive authority to regulate the sale
and distribution of SDPs would enable it to convert a residential neighborhood into a gravel pit, quarry or
nursery. Rather, if such uses exist in the community, it would not be an abuse of discretion for the DEP to
authorize a related use; and conversely, if such uses are barred, the community may interpose legitimate
objections to the site, and any decision authorizing such use would be an abuse of discretion.
JUSTICES POLLOCK, GARIBALDI, STEIN and COLEMAN join in JUSTICE HANDLER's
opinion. JUSTICE O'HERN filed a separate concurring opinion.
SUPREME COURT OF NEW JERSEY
A-
127 September Term 1995
HOLGATE PROPERTY ASSOCIATES, a New
Jersey partnership,
Plaintiff-Appellant,
v.
TOWNSHIP OF HOWELL and THOMAS
SAVINO, ENGINEERING COORDINATOR,
Defendants-Respondents,
and
ZONING BOARD OF ADJUSTMENT OF
HOWELL TOWNSHIP,
Defendant.
Argued March 12, 1996 -- Decided July 29, 1996
On certification to the Superior Court,
Appellate Division, whose opinion is reported
at
283 N.J. Super. 311 (1995).
Nancy G. Wright argued the cause for
appellant (Bathgate, Wegener & Wolf,
attorneys).
Dennis M. Crawford argued the cause for
respondents (McLaughlin, Bennett, Gelson &
Cramer, attorneys; William P. Gilroy, on the
brief).
Judeth Piccinini Yeany, Deputy Attorney
General, argued the cause for amicus curiae,
State of New Jersey, Department of
Environmental Protection (Deborah T. Poritz,
Attorney General of New Jersey, attorney;
Mary C. Jacobson, Assistant Attorney General,
of counsel).
The opinion of the Court was delivered by
HANDLER, J.
In this case, the Department of Environmental Protection
authorized a property owner to use a sludge-derived product to
make topsoil at a site that had long been used for soil removal.
As a result of complaints by neighbors regarding the smell and
concerns expressed about contamination of the water supply, the
municipality in which the site was located issued an order
prohibiting the owner from further use of the sludge-derived
product. It also required the owner to apply for authorization
for that use of its property under the local zoning laws.
The issue in this case is whether use of the property
involving a sludge-derived product is eligible for exemption by
the Department of Environmental Protection from the formal
permitting requirements of the Solid Waste Management Act.
Resolution of that issue is significant because it will define
the extent to which formal notification and the participation of
the public are necessary conditions for state authorization of
the disposition and use of sludge-derived products. A related
issue is whether the Solid Waste Management Act, in its
application to sludge-derived products, preempts local zoning and
other police power laws, and thus bars the exercise of municipal
authority over activities involving sludge-derived products.
Holgate Property Associates ("Holgate") owned property in Howell Township ("the Township), which had been used as a sand and gravel quarry since 1930. Holgate operated the property for over ten years pursuant to a township soil-removal permit, issued in accordance with the local soil-removal ordinance, which allowed such activity as a permitted non-conforming use. Holgate had used the property for both soil removal and clay and topsoil mixing, and had made large distributions of soil to the Lone Pine Landfill in Monmouth County. In 1989, Holgate transported composted sludge to its quarry from Philadelphia to use as a soil conditioner to reclaim the land on a part of its property. The Department of Environmental Protection ("DEP") authorized a permit exemption for that activity, denominated as "NJPDES Permit Exemption to Utilize Compost Generated by the City of Philadelphia at the Holgate Property Associates Sand and Gravel Pit as a Soil Amendment for Reclamation and Revegetation." The DEP provided the Township with a copy of the exemption. The Township apparently made no objection at the time.
The Middlesex County Utilities Authority ("MCUA"), operates a sludge-processing facility. On February 26, 1991, the DEP issued a NJPDES permit authorizing the MCUA to process sludge and to distribute the resulting sludge-derived product ("SDP"). The DEP also issued a separate permit authorizing the MCUA to "Produce and Store Sludge-Derived Product Mixtures" at the
Holgate property "for the Distribution to Landscapers and Other
End Users."
Pursuant to those permits, Holgate began to transport SDP
from the MCUA facility to its quarry for use in mixing with sand
and topsoil. Under the permit, Holgate was authorized to take up
to 100,000 cubic yards of the product. Holgate estimated that
this arrangement saved the taxpayers $10 million in disposal
costs. Most of the product created by mixing the SDP with clay
and soil went to the Lone Pine Landfill for fill and reclamation.
In July 1993, residents living near the quarry noticed the
trucking and storage of SDP at the quarry, and observed mounds of
SDP estimated at 80 feet high, 200 feet wide, and 400 feet deep.
Neighbors complained of strong odors and contended that SDP-runoff was finding its way into nearby streams. The Township
scheduled a meeting with Holgate to discuss its operations at the
quarry. Approximately ten minutes before that meeting was to
begin on August 9, 1993, the Township served Holgate with a Stop
Work Order, which required Holgate to "apply to the Zoning Board
of Adjustment for an interpretation and/or use variance for this
procedure . . . . within 10 days from your receipt of this
letter." On August 18, Holgate filed an interpretation
application with the Township Zoning Board, and a hearing was
scheduled for September 21, 1993. Meanwhile, Holgate continued
to receive and process SDP from the MCUA.
A day before the hearing was scheduled, Holgate filed a
complaint in support of an Order to Show Cause seeking to enjoin
enforcement of the Stop Work Order and to obtain a declaration
that the Solid Waste Management Act, N.J.S.A. 13:1E-1 to 207,
("SWMA") preempted the Township from enforcing its zoning and
soil removal ordinances. The court held a hearing on the
preemption issue on October 4, 1993.
The court examined the regulatory scheme pertaining to
sludge and sludge-derived products. It noted that the SWMA
explicitly deems the DEP responsible for sludge management
through the Statewide Sludge Management Plan ("SSMP"), district
level plans, and permits. It further found that the permitting
process is geared toward achieving DEP's mandate to maximize
statewide processing of sludge into useful fertilizer. Toward
that end, the court found that the permits are designed both to
ensure compliance with water quality standards and effluent
limitations at the permitted site and to set standards for
maintaining the quality of the SDP at the production site.
The court noted that the permit allowing sludge generation
and processing includes an approved distribution plan. Further,
the court noted that the site set to receive the SDP must receive
a similar permit before beginning to accept sludge or SDP. The
court emphasized that it is the sludge generator (rather than the
recipient of sludge or SDP) that is responsible for complying
with DEP regulations and permits and for maintaining the quality
of the sludge or SDP.
The court also concluded that the SWMA generally preempts
other local government regulation, because it presents a
comprehensive statutory and regulatory scheme that completely
occupies the field of solid waste management, even though general
statutory authority exists for local regulation of health and
safety issues. The court cited numerous cases holding SWMA
preemptive of local attempts to regulate solid waste facilities
and concluded:
It is clear therefore, that both the land
application of sludge and the distribution of
sludge-derived product are subject to
pervasive regulation by the State under the
Water Pollution Control Act and the Solid
Waste Management Act, and that the State's
sludge management scheme is so comprehensive
as to effectively preclude municipal
regulation.
The court then ruled that the Stop Work Order was an attempt to
regulate sludge management that conflicted with the legislative
scheme and obstructed the legislative objective of a
comprehensive statewide approach to sludge management, and
therefore was preempted. The court restrained enforcement of the
Stop Work Order, and the Township appealed.
The Appellate Division reversed.
283 N.J. Super. 311 (App.
Div. 1995). The court framed the issue in terms of the
procedural requirements that the DEP must fulfill for its
decisions to have preemptive effect over municipal zoning laws in
respect of a site used for the processing and disposition of
SDPs. Id. at 313. It concluded that the requirements for the
management of solid waste are equally applicable to SDPs. See
id. at 321-22.
The essential holding of the Appellate Division is that the
SWMA does not by itself preempt local regulation; rather, it is
the adoption of the district plan (including the mandated public
hearings and comment period) under the SWMA that gives the SWMA
preemptive effect. Id. at 319. Therefore, the court concluded
that the DEP, though having the interim or transitional power, in
the absence of a district plan, to approve a site for SDP
processing, does not thereby preempt local authority over such
activities unless it complies with the "basic planning procedures
and criteria of the SWMA before approving a facility." Id. at
321. The court believed that its interpretation would reduce the
risk that interim approval of a site would conflict with the
district plan. Ibid. Applying that interpretation to the facts,
the court concluded that the DEP failed to conform with the SWMA
because the MCUA's permit exemption application did not provide
adequate information for the DEP to consider local concerns, and
the DEP did not consult with the Township or the district's
advisory solid waste council, or hold a public hearing as
otherwise required under the SWMA. Id. at 322; see also N.J.S.A.
13:1E-2b(1), 13:1E-20b(2)(c), 13:1E-23c, 13:1E-45c.
The Court granted Holgate's petition for certification,
which the DEP joined.
143 N.J. 321 (1995).
It is clear that in passing the SWMA, the Legislature understood that the management of solid waste affects matters of
public policy and important concerns relating to the public
health, safety and welfare. A.A. Mastrangelo, Inc. v. Dep't of
Envtl. Protection,
90 N.J. 666, 670 (1982). It recognized that
the management of solid waste should be coordinated as a
statewide system and that it entails a degree of expertise that
transcends the capacities and interests of local government.
N.J.S.A. 13:1E-2a. Nevertheless, the Legislature appreciated the
significant impact that state-level decisions governing the
management of solid waste would have throughout the state. It
therefore required that the management of solid waste must be
effectuated at the local level and must involve maximum
government and public participation at that level. N.J.S.A.
13:1E-2b. The SWMA contemplates local participation in
management decisions through local solid waste districts, which
are charged with the responsibility to develop a solid waste
management plan. N.J.S.A. 13:1E-2b(2). The Act also mandates
public participation to be accomplished by public notice and
public hearings and comment periods, as well as consultation with
district councils consisting of water and waste agency members,
mayors and environmentalists. N.J.S.A. 13:1E-2b(3), 13:1E-7,
13:1E-20, 13:1E-23. It also envisions the inclusion of the solid
waste industry in the decisional process in recognition of the
relevance of marketing concerns and market dynamics in the
management and disposition of solid waste. N.J.S.A. 13:1E-2b(5),
13:1E-20b(1).
The DEP is primarily responsible for the regulation of solid
waste management, through development of a statewide plan, and
through regulatory and supervisory control of new and existing
facilities. N.J.S.A. 13:1E-4, 13:1E-6. Most regulation is
accomplished through the registration and permit system. See
ibid. The DEP has exempted certain types of facilities, however,
including those engaging in the land application of certain non-hazardous wastes, including some SDPs, because they pose little
or no threat to human health or the environment. N.J.A.C. 7:26-1.8; see also N.J.S.A. 13:1E-4a. Those facilities are still
required to obtain a NJPDES permit, however. N.J.A.C. 7:26-1.8;
see also N.J.A.C. 7:14A.
Statewide Sludge Management Plans were adopted in 1987 and
1993. Those plans, when considered in combination with the 1977
amendments to the SWMA (the so-called "sludge amendments"),
N.J.S.A. 13:1E-43 to -48, demonstrate that, as a critical
component of the legislative and administrative scheme for the
management of solid waste sludge, the Legislature contemplated
and anticipated that sludge would be converted into products that
are environmentally benign and economically beneficial. In that
vein, the DEP specifically was charged with including in its
statewide plan provisions to ensure the adequate utilization of
sludge processing technologies (e.g., using sludge to generate
heat or energy, or to create fertilizer) and land disposal
techniques. N.J.S.A. 13:1E-43b, 13:1E-44b, 13:1E-45e. To avoid
the primary environmental risk posed by land application of
sludge -- contamination of the ground and surface water -- the
Legislature required that sludge that meets DEP criteria for land
application "shall be of sufficient quality to be disposed of in
a land-based manner without degrading the environment or posing a
threat to human health." N.J.S.A. 58:10A-40.
The Legislature's scheme for sludge management contemplates
that a SDP that meets certain requirements is essentially a
beneficial product and therefore is not subject to extensive
regulation. The main regulatory effort in connection with SDPs
is to ensure that sludge as such will not be mishandled. The
effort is focused on supervising sludge processors to ensure that
they produce sludge products that conform to the land-application
standards. Nevertheless, land-application sites are an important
part of the overall scheme of handling and disposing sludge
through conversion into SDPs. Hence, to protect ground and
surface water, sites where SDPs are handled, stored, or disposed
are required to obtain a NJPDES permit.
Both the DEP and Holgate argue that the Appellate Division
equated "sludge-derived products" with "sludge," perceiving the
two as similar in terms of their potential impact on the
environment and the public. They point out that the opinion
frequently refers to the Holgate operation as a "sludge
processing facility" engaged in operations like "mixing sludge
with clay." See 283 N.J. Super. at 313, 317-18, 322.
The Appellate Division seemingly did misapprehend the
critical differences between sludge and sludge-derived products.
As a result, the appellate court failed to stress the policies
underlying the SWMA's treatment of sludge, and, particularly, the
importance of SDPs as the means through which sludge can be
effectively managed and ultimately disposed. The Appellate
Division thus underemphasized the technologies designed to
encourage and provide beneficial, useful and safe ways to dispose
sludge. The court similarly failed to appreciate the legislative
and administrative policies of facilitating free-market methods
to address solid-waste management difficulties through the
conversion of sludge into SDPs that have commercial value.
The Appellate Division found that in approving Holgate as an
SDP distribution center, the DEP failed to comply with the SWMA's
public participation requirements, which it found are applicable
when no district sludge management plan is in place. 283 N.J.
Super. at 321-22; see also N.J.S.A. 13:1E-23. Holgate and the
DEP argue that the public participation requirements that arise
in the absence of a district sludge management plan are
applicable only to sludge and do not apply to SDP distribution
sites, the operation of which may be authorized through the
granting of a permit exemption. They also contend that it does
not matter whether a district sludge plan exists for the purpose
of granting a permit exemption for SDP distribution activities
because the inclusion of the SDP site in the sludge-site
inventory would not be required under the SWMA. That is in
contrast to sludge sources and sludge processing and disposal
sites, the inclusion of which would be required. N.J.S.A. 13:1E-45a; 13:1E-45c.
We conclude that the approval of a permit exemption for the
operation of a SDP site does not require the public-notice
procedures applicable to the approval of a solid waste facility.
Under the SWMA, the individual-site approvals of SDP sites do not
invoke, and should not be hampered by, the procedural
requirements otherwise applicable to solid-waste facilities.
Consistent with the legislative scheme of the SWMA, there
should be substantial deference afforded to the DEP as the
administrative agency charged with the regulation of the
operations of entities disposing of SDPs. See Greenwood v. State
Police Training Center,
127 N.J. 500, 513 (1992); Public Serv.
Elec. & Gas Co. v. New Jersey Dep't of Envtl. Protection,
101 N.J. 95, 103 (1985); Henry v. Rahway State Prison,
81 N.J. 571,
579-80 (1980) . We impute to the DEP the specialized expertise in
this area that reflects its administrative authority and
responsibilities. The DEP's granting of a permit exemption need
not involve the actual participation by local government through
formal notice and structured public hearings. As the DEP points
out, the formal procedures established for approving plans of
sludge processing and sludge disposal facilities are
inappropriate for the regulation of the distribution of SDPs,
products that are essentially regulated as fertilizer. The
imposition of those formal procedural requirements will create
substantial difficulties in locating and approving SDP
distribution centers, severely interfering with the disposition
of SDPs and, ultimately, with the handling and disposition of
sludge itself. It would have the potential, as observed by the
DEP, to lead to disastrous results because over one hundred SDP
disposal sites around the state would become subject to heavy
regulation entailing extensive local participation.
The DEP's regulations are within its delegated authority
under the statute, and thus are to be afforded deference.
Further, those regulations evidence a contemporaneous
administrative construction and understanding of the law that
serves as an informed interpretation of those laws. See Cedar
Cove, Inc. v. Stanzione,
122 N.J. 202, 212 (1991); Smith v.
Director, Div. of Taxation,
108 N.J. 19, 25-26 (1987). The long
usage and historical exemption of SDP distribution sites are a
practical application of the statute that further confirms its
contemporaneous construction by the DEP.
The question may fairly be raised, however, whether the failure to consider municipal zoning and land-use regulations applicable to the proposed SDP-distribution site and other local health and safety concerns related to the proposed use of such a site can constitute a sound exercise of administrative discretion. Although the statute and regulations do not require formal public notice or participation in the approval process by local government and the public, we find that there is an implied
duty on the part of the DEP to consider local concerns that will
be affected by the operation at the proposed site.
An implied duty of a state administrative agency to give
notice to the public may be recognized where the exercise of that
agency's powers has a distinctive impact on a particular locality
and its citizens. In Citizens for Equity v. Department of
Environmental Protection,
126 N.J. 391 (1991), we considered the
question of whether the DEP should have given notice to affected
claimants when it suspended the processing of claims on the
Sanitary Landfill Contingency Fund, N.J.S.A. 13:1E-100 to -116,
pending the adoption of new regulations. The new regulations
were significantly more onerous than the old, requiring claimants
actually to sell their homes to establish diminution of value.
Id. at 396. The DEP did not provide notice to parties whose
claims were pending at the time of the suspension. Id. at 393-94. Although we found that the "law did not require public
notice or hearing before DEP could suspend the processing of
claims for compensation under the Act," we nevertheless held that
such notice should have been given. Id. at 397. We noted that
"government has an overriding obligation to deal forthrightly and
fairly with property owners." Ibid. That general sense of
fairness led us to require notice: "We are persuaded that in
these circumstances DEP, irrespective of its statutory exemption,
should have notified all claimants that the processing of claims
was being temporarily suspended while the agency considered the
adoption of the new regulations. Affording claimant such notice
is a matter of fairness." Id. at 398.
In an earlier case, Garden State Farms, Inc. v. Bay,
77 N.J. 439 (1978), we found that although the Legislature intended to
vest ultimate authority to supervise the location and regulation
of helistops and heliports in the State Transportation
Commissioner, it also intended that authority be exercised with
due regard for local concerns and after consultation with local
officials. Id. at 454-56. We held that "a failure on the
Commissioner's part to weigh conscientiously local interests, to
examine carefully whether the proposed aviation facility is
compatible with the surrounding land uses and to consult the
local ordinances and authorities in making its licensing decision
would constitute an abuse of discretion." Id. at 456. We placed
particular emphasis on local zoning ordinances:
Especially probative of the vital interests
of local government is the municipal zoning
ordinance itself. . . . Clearly [the
commissioner] should, at the very least,
acknowledge the relevance of the local zoning
ordinance with respect to applications for
private heliports and helistops. To this we
would add as a material consideration that
the Commissioner ought to take into account
whether an applicant for a private heliport
has availed itself of any right to a variance
under the local zoning law and whether an
application for a variance should be pursued
as a helpful procedure for fleshing out the
impact of the proposed facility upon
neighboring land uses.
We find the reasoning of those cases instructive in our consideration of whether there is an implied duty on the part of
the DEP to consider and weigh local concerns in the permit
exemption process. We consider that issue in light of our
conclusion that the SWMA has preempted the area of solid waste
management, including the regulation of sludge and sludge-derived
products. See A.A. Mastrangelo, Inc., supra, 90 N.J. at 670.
In passing the SWMA, the Legislature declared that "it is
the policy of this State to . . . [p]rovide citizens and
municipalities with opportunities to contribute to the
development and implementation of solid waste management plans by
requiring public hearings prior to their adoption and by the
creation of advisory solid waste councils . . . ." N.J.S.A.
13:1E-2b (emphasis added). That statement of public policy, in
our view, places a burden on the DEP to consider local concerns
in deciding whether to exempt a certain SDP-using facility from
formal permitting requirements.
We conclude that the DEP should give notice to affected
municipalities and to consider their public health and safety
concerns and zoning and land-use regulations when deciding
whether a facility using SDPs will be exempt from permitting
requirements. The failure to do so raises the risk that the
DEP's ultimate decision will not give sufficient weight to
relevant matters affecting appropriate land uses and public
health and safety. Such a decision would constitute an abuse of
discretion. That requirement, however, does not necessitate a
plenary or general public hearing. It will be satisfied so long
as the local government and the public are duly notified and
given the opportunity to express their views on the proposed use
of the site. See, e.g., High Horizons Dev. Co. v. Dep't of
Transp.,
120 N.J. 40, 52-53 (1990).
In addition, because this opinion announces a new
administrative rule that could potentially require DEP to revisit
all outstanding permit exemptions, it shall not be given
retroactive effect. See New Jersey Election Law Enforcement
Comm'n v. Citizens to Make Mayor-Council Gov't Work,
107 N.J. 380, 387-91 (1987); Coons v. American Honda Motor Corp.,
96 N.J. 419, 424-30 (1984), cert. denied,
469 U.S. 1123,
105 S. Ct. 808,
83 L. Ed.2d 800 (1985).
The judgment of the Appellate Division is reversed.
JUSTICES POLLOCK, GARIBALDI, STEIN and COLEMAN join in
JUSTICE HANDLER's opinion. JUSTICE O'HERN filed a separate
concurring opinion.
SUPREME COURT OF NEW JERSEY
A-
127 September Term 1995
HOLGATE PROPERTY ASSOCIATES, a New
Jersey partnership,
Plaintiff-Appellant,
v.
TOWNSHIP OF HOWELL and THOMAS
SAVINO, ENGINEERING COORDINATOR,
Defendants-Respondents,
and
ZONING BOARD OF ADJUSTMENT OF
HOWELL TOWNSHIP,
Defendant.
O'HERN, J., concurring.
I concur in the opinion and judgment of the Court. I write separately simply to observe that the opinion does not suggest or intimate that the Department of Environmental Protection's exclusive authority to regulate the sale and distribution of soil-derived products (SDPs) would enable it to convert a residential neighborhood into a gravel pit, quarry, or nursery. Rather, the effect of the legislative scheme is that if such uses exist in a community, it would not be an abuse of discretion for the DEP to authorize a related SDP use; and, conversely, if such uses are barred, the community could interpose strong and legitimate objections to the introduction of a site for SDPs, and a decision authorizing such a use would be an abuse of discretion.
NO. A-127 SEPTEMBER TERM 1995
ON APPEAL FROM
ON CERTIFICATION TO Appellate Division, Superior Court
HOLGATE PROPERTY ASSOCIATES,
a New Jersey partnership,
Plaintiff-Appellant,
v.
TOWNSHIP OF HOWELL and THOMAS
SAVINO, ENGINEERING COORDINATOR,
Defendants-Respondents,
and
ZONING BOARD OF ADJUSTMENT OF
HOWELL TOWNSHIP,
Defendant.
DECIDED July 29, 1996
Justice Handler PRESIDING
OPINION BY Justice Handler
CONCURRING OPINION BY Justice O'Hern
DISSENTING OPINION BY