2011 won’t be remembered as a good year for smart growth legislation in New Jersey.

Environmentalists are currently fighting the Legislature’s most recent assault on smart growth—S3156/A4335 (Sarlo/Couhtino)—which simultaneously encourages sprawl development and threatens the state’s drinking water. The legislation delays implementation of the state’s Water Quality Management Plan rules, which prohibit the development of new sewer lines (and their concomitant development), in environmentally sensitive areas. The recently-introduced bill would suspend the enforcement of WQMP rules until 2015, which, in turn, would open the door to sprawling developments. A4335 is currently scheduled for vote in the full Assembly on January 9, the last day of the 2010-2011 session.

And about that session—it wasn’t good. Despite the efforts of Assemblyman Reed Gusciora (D-15), Governor Christie cut funding for the state’s transit village program, a which encouraged development near rail and bus hubs. Funding for similar programs was slashed—the Centers of Place program was eliminated and the popular Safe Routes to Transit program was cut in half.

There was also the DEP Waiver Rule which, by allowing the state Department of Environmental Protection to waive its own rules under certain (vaguely defined) circumstances, could weaken the state’s environmental protections. This rule has yet to be adopted and legislation has been introduced to nullify it.

On the flip side, the Legislature and Governor approved an expansion of the Urban Hub Tax Credit program, meant to further encourage development in urban areas. But that same piece of legislation gave $200 million to the American Dream entertainment center in the Meadowlands, a site with few public transportation options.