Under the New Jersey Freshwater Wetlands Act, one of the criteria for identifying "Exceptional Wetlands" is:

The correct answer highlights that one of the criteria for identifying "Exceptional Wetlands" under the New Jersey Freshwater Wetlands Act is their potential habitat for endangered or threatened species. This is significant because wetlands play a crucial role in supporting biodiversity, including species that are at risk of extinction. The preservation of these habitats is essential not only for the survival of these species but also for maintaining the ecological integrity of the area.

By recognizing wetlands as exceptional based on their ability to provide crucial habitats for vulnerable species, the legislation emphasizes the importance of protecting areas that have a direct impact on conservation efforts. This criterion reflects an understanding of the broader ecological functions of wetlands and their role in sustaining diverse ecosystems.

While other criteria, such as scenic beauty, diversity of species, and unspoiled natural conditions are valuable attributes of wetlands, the focus on endangered and threatened species directly ties into the overarching goals of environmental protection and biodiversity conservation within New Jersey's regulatory framework.