Provides "Highlands Water Protection and Planning Act" exemption, and clarifies municipal planning or zoning authority, for certain development along commercial corridors in Highlands Region.

This bill creates an exemption from New Jersey's Highlands Water Protection and Planning Act for commercial or industrial development within designated "commercial corridors" in the Highlands Region. A commercial corridor is defined as land with frontage on a State, county, or rail thoroughfare that's zoned for commercial or industrial use, or that a municipality deems necessary for economic viability. The exemption allows municipalities to exercise their planning or zoning authority for development in these corridors without being deemed inconsistent with the regional master plan. This specifically exempts construction or reconstruction of commercial or industrial development in these corridors from the Highlands permitting review program. The bill aims to balance environmental protection with appropriate economic development in the Highlands Region.