On February 23, 2017, the New Jersey Department of Environmental Protection (DEP) issued a flood hazard area applicability determination (FHA Determination) to Hampton Farm, LLC (Hampton Farm). Shortly thereafter, appellant Musconetcong Watershed Association (MW Association) requested the DEP to conduct an adjudicatory hearing so it could challenge the FHA Determination. Four years later, on April 6, 2021, the DEP denied that request. MW Association timely appealed from the April 6, 2021 decision. It also sought leave to appeal from the February 23, 2017 FHA Determination, contending it had become final when the DEP denied MW Association's request for a hearing. On an interlocutory motion, a two-judge panel of the court denied leave. The court now reconsiders, reverses that interlocutory ruling, and grants leave to appeal.
The court holds that the DEP's FHA Determination became a final agency decision subject to appeal when the DEP denied MW Association's request for an adjudicatory hearing to challenge the FHA Determination. At that time, all administrative remedies were exhausted. To address the DEP's four-year time delay in deciding MW Association's request for an adjudicatory hearing, the court holds that any party, including a third-party objector, has the right to petition the DEP to rule on a pending request for an adjudicatory hearing under N.J.A.C. 1:1-4.1(a). The DEP will then have thirty days from receipt of the petition to "inform all parties of its determination" regarding that request. N.J.A.C. 1:1-4.1(a).
The court also holds that MW Association did not have a right to an adjudicatory hearing because no statute conferred that right to MW Association, which is a third-party objector, and MW Association did not have a particularized property interest warranting a hearing. Accordingly, the court affirms the April 6, 2021 final agency decision.
Finally, because the court has reversed the ruling on the interlocutory motion, the DEP has two options concerning its FHA Determination. It can either (1) elect to address MW Association's challenges to its February 23, 2017 FHA Determination and a new briefing schedule will be issued; or (2) request a remand so it can expand and update the factual findings supporting its FHA Determination.
