The New Jersey Broadcasters Association (NJBA) is a very vocal organization with what appears to be a lot of influence.
Their primary argument that because of the fact that there are two major metro areas outside of the state (NYC to the north, Philly to the south), that there are currently not many opportunities for higher powered stations (higher than A) in the state.
The NJBA filed a Petiton for Rulemaking (RM-11099), which would, in part, extend the size of the protected service contour [in respect to LPFM stations] to 44 dBu (F50,50) for all New Jersey stations (regardless of class A, B, B1), which would in turn, increase the distance spacing requirements for LPFM applications in relation to New Jersey full power stations. Their petition would also have imposed additional restrictions on translators.
REC filed comments at the time showing that currently the LPFM service is already substantially overprotecting New Jersey FM stations since very few stations are running at or near full power and are running directional facilities that LPFM treats as non-directional facilities. We also argued that in New Jersey that the problem is not LPFM stations (this is because, even with today's rules, there's not many opportunities for LPFM stations in the state.
While New Jersey is a very unique situation because of the very high concentration of stations both inside the state and nearby (which is evidenced by the very low LPFM availability), any passage of rulemaking or legislation could have hazardous impacts as other states may try to use that presidence to impose similar restrictions in their state.
To read our comments on this matter:
http://www.recnet.com/fcc/RM-11099.pdf