The New Jersey Department of Environmental Protection (“NJDEP”) issued a Notice of Substantial Change (“NOSC”) to the Coastal Flood Rule proposal on July 21, 2025 that would, if adopted, make significant regulatory changes to address climate change which could add significant costs to development in coastal areas. Although modified by the NOSC, the proposal could still add significant costs to the development of coastal properties.

By way of background, the original coastal flood rules were proposed on August 5, 2024, and are the culmination of the Murphy Administration’s New Jersey Protection Against Climate Threats (“NJ PACT”) initiative addressing climate change. The current proposal is part of a broader regulatory program called Resilient Environments and Landscapes (“REAL”), which was designed to modify multiple land use resource protection rules to build resilience in response to sea-level rise, extreme weather, chronic flooding, and other impacts of climate change. The current proposal is the second of two sets of rules which address flooding through NJDEP’s resource regulatory programs. The first rule proposal addressed impacts of inland flooding, monikered the “Inland Flood Rule,” and was adopted on December 5, 2022.

The current Coastal Flood Rule proposal addresses the second prong of the REAL program by addressing a broad suite of regulatory programs. While almost a dozen rules would be impacted by the proposal, most of the proposal concerns NJDEP programs governing land use regulated areas within the state. As originally proposed, the Coastal Flood Rules would have incorporated a projected impact of climate change in 2100, designated as Climate Adjusted Flood Elevation, which would add five feet of elevation to the tidal flood areas regulated under the Flood Hazard Area Control Act (“FHACA”). As proposed, REAL 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 would become more stringent depending on the type of structure, particularly if the structure is a building that has “human occupancy” or if the structure is “critical infrastructure.” In addition, the proposal would also establish regulatory requirements under the FHACA and the Coastal Zone Management Rules for an alternatives analysis in areas designated as an Inundation Risk Zone (“IRZ”), including requiring a risk assessment.

Since the original proposal was published in the New Jersey Register on August 5, 2024, it has been hotly debated in New Jersey. The proposal is supported by environmental groups, while being generally opposed by the business and development community, as well as county and municipal governments such as those located along the Jersey Shore and Hudson River.

On July 21, 2025, NJDEP announced that it was proposing changes to the proposed Coastal Flood Rules through a NOSC. The most significant change is the change of the level of elevation and/or flood proofing from five feet to four feet. NJDEP indicated that this change was based upon revisions of sea-level rise rates impacting the state, and the feedback from coastal community leaders and other stakeholders. The NOSC also revises the proposed 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. The NOSC sets the applicability of the new regulations to all applications that are deemed complete within 180 days after the effective date of the adoption. Finally, it should be noted that NJDEP indicated that the low- and moderate-income housing projects are eligible to be reviewed under the FHACA “hardship exception” process, which allows relaxation of certain standards where public safety is not jeopardized.

A virtual hearing will be held on September 3, 2025, at 6:00 pm. Written comments can be submitted on or before September 19, 2025. For more information, click here.