Requires DEP to designate municipalities with critical headwaters as headwater guardians.

This bill requires New Jersey's Department of Environmental Protection (DEP) to identify and designate municipalities with "critical headwaters" (water sources supplying drinking water to at least 1 million residents, per census data) as "headwater guardians." These municipalities must implement specific environmental protections like enhanced stormwater management, groundwater recharge standards, and riparian buffers to safeguard water quality and supply. The DEP must develop this process within one year, publish designated municipalities online, and hold public comment periods before finalizing protections. Annual reports will track outcomes like pollutant reductions and preserved buffers, aligning with existing water quality laws.