CSG Law Alert: NJDEP Issues Final Coastal Flood Rules
On January 20, 2026, after almost a year and a half in the making, and on the final day of Governor Murphy’s Administration, the New Jersey Department of Environmental Protection (“NJDEP”) published the final rule dubbed the Resilient Environment and Landscape Rule (“REAL Rule”) governing coastal flooding that is intended to address future climate change. The REAL Rule could add substantial complexity and cost to projects in coastal areas and tidally influenced areas.
By way of background, the REAL Rule was proposed on August 5, 2024, and is the culmination of the Murphy Administration’s New Jersey Protection Against Climate Threats (“NJ PACT”) initiative addressing climate change. The proposal made changes to almost a dozen NJDEP rules, but primarily NJDEPs’ rules governing construction and disturbance in coastal areas, including: (i) the Coastal Zone Management rules governing permits required under the (A) Coastal Area Facilities Review Act (also known as CAFRA), (B) permits for the disturbance of Coastal Wetlands, and (C) Waterfront Development Permits; (ii) the New Jersey Freshwater Wetlands Protection Act rules; and (iii) the Flood Hazard Area Control Act (“FHA”) rules. The REAL Rule also amends other rules involving water discharge and site remediation/solid waste to the extent impacts of climate change impact those programs.
The final REAL Rule utilizes a projected impact of climate change in 2100, designated as Climate Adjusted Flood Elevation (“CAFÉ”) which adds four feet of elevation to the tidal flood areas regulated under the FHA. The CAFÉ in the final rule is reduced from five feet originally proposed in 2024. The REAL Rule requires “flood proofing” up to a higher level and, in some cases, may require elevation of new construction. The impact of the requirements imposed by REAL becomes more stringent depending on the type of structure, particularly if the structure is a building that has “human occupancy” or is deemed “critical infrastructure.”
The REAL Rule also establishes regulatory requirements under the FHA and the Coastal Zone Management rules requiring an alternatives analysis in areas designated as an Inundation Risk Zone (“IRZ”), including requiring a risk assessment. The Final Coastal Flood Rule defines the extent of the IRZ, which incorporates land that lies above sea level today, but will be permanently inundated with the projected four-foot increase in sea levels. Like the definition of CAFÉ, the final rule reduces the projection from five feet to four feet.
Potential developers of coastal projects should be aware that there is a possibility of avoiding the new rules if an application is submitted to the NJDEP, and is deemed administratively and technically complete, prior to July 20, 2026, which is the effective date of the REAL Rule. A developer who has a project in mind should consider whether the project design is mature enough to submit an application that will allow the NJDEP to deem the application complete on or before July 20, 2026. Since it is anticipated that the NJDEP is going to receive many applications over the next several months, it is important to consult with professionals, including counsel and environmental consultants to develop a permitting strategy.
For more information, please contact the author of this post or the CSG Law Environmental Group.