The Commercial Real Estate Development Association – New Jersey Chapter (CREDA NJ) has welcomed a major milestone in state regulatory efficiency, applauding Governor Mikie Sherrill and the New Jersey Department of Environmental Protection (NJDEP) for achieving a 72% reduction in the backlog of Freshwater Wetlands Letters of Interpretation (LOIs).
The progress stems from targeted operational reforms, including the rollout of Operation FAST (Facilitated Approvals for Sustainable Transformation) and early executive actions aimed at modernizing New Jersey’s permitting landscape.
Freshwater Wetlands LOIs serve as a vital first step in site development, determining whether wetlands regulations apply to a proposed project. Historically, administrative delays in securing these reviews have impacted project financing, design, construction timelines, and the delivery of housing and commercial spaces.
According to the NJDEP, the state’s recent push has yielded substantial results:
- Overall Backlog Cut by 72%: Achieved since the start of the Sherrill Administration.
- Legacy Applications Cleared: The department has completed reviews for 99% of complete LOI applications pending for 18 months or more.
- Medium-Term Backlog Addressed: 95% of complete applications pending between 12 and 18 months have likewise been resolved.
“Reducing the overall backlog by nearly three quarters, while completing nearly all of the oldest complete applications, demonstrates what can be accomplished when an agency focuses resources, improves internal coordination and works to provide greater certainty for applicants,” Dan Kennedy, CEO of CREDA NJ, said.
The sweeping improvements follow early measures enacted by Governor Sherrill—including Executive Order No. 5—which established cross-agency permitting and regulatory simplification teams designed to digitize workflows, enforce permit “shot clocks,” and introduce cross-agency tracking tools like the Permitting Dashboard pilot.
Kennedy emphasized that regulatory efficiency and environmental protection are mutually compatible goals: “Environmental protection and economic development are not competing goals… New Jersey can maintain its core environmental standards while also building a permitting system that is responsive, efficient and clear,” he said.
CREDA NJ continues to advocate for sustained progress across all state programs, urging the NJDEP to eliminate remaining backlogs while expanding transparent communication, technology adoption, and predictable review timelines.
