Bill Text: NJ A4998 | 2016-2017 | Regular Session | Introduced
Bill Title: Appropriates funds to DEP for environmental infrastructure projects for FY2018.
Spectrum: Slight Partisan Bill (Republican 23-8)
Status: (Introduced - Dead) 2017-06-29 - Substituted by S3241 (1R) [A4998 Detail]
Download: New_Jersey-2016-A4998-Introduced.html
Sponsored by:
Assemblyman TIM EUSTACE
District 38 (Bergen and Passaic)
Assemblywoman ELIZABETH MAHER MUOIO
District 15 (Hunterdon and Mercer)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
Assemblyman BOB ANDRZEJCZAK
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Appropriates funds to DEP for environmental infrastructure projects for FY2018.
CURRENT VERSION OF TEXT
As introduced.
An Act appropriating moneys to the Department of Environmental Protection for the purpose of making grants, zero interest loans, or principal forgiveness loans to project sponsors to finance a portion of the costs of environmental infrastructure projects.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) There is appropriated to the Department of Environmental Protection from the "Clean Water State Revolving Fund" established pursuant to section 1 of P.L.2009, c.77, an amount equal to the federal fiscal year 2017 capitalization grant made available to the State for clean water project loans pursuant to the "Water Quality Act of 1987" (33 U.S.C. s.1251 et seq.), and any amendatory and supplementary acts thereto (hereinafter referred to as the "Federal Clean Water Act").
(2) There is appropriated to the Department of Environmental Protection from the "Interim Financing Program Fund" created and established by the New Jersey Environmental Infrastructure Trust pursuant to subsection d. of section 9 of P.L.1985, c.334 (C.58:11B-9) such amounts as may be necessary to supplement the sums appropriated from the Clean Water State Revolving Fund for the purposes of clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(3) There is appropriated to the Department of Environmental Protection from the "Disaster Relief Emergency Financing Program Fund" created and established by the New Jersey Environmental Infrastructure Trust pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5) such amounts as may be necessary to supplement the sums appropriated from the Clean Water State Revolving Fund for the purposes of clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(4) There is appropriated to the Department of Environmental Protection from the "Loan Origination Fee Fund" created and established by the New Jersey Environmental Infrastructure Trust pursuant to section 1 of P.L.2005, c.202 (C.58:11B-10.2), and any repayments of loans and interest therefrom, such amounts as may be necessary to supplement the sums appropriated from the Clean Water State Revolving Fund for the purposes of clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(5) There is appropriated to the Department of Environmental Protection from the "Drinking Water State Revolving Fund" established pursuant to section 1 of P.L.1998, c.84 an amount equal to the federal fiscal year 2017 capitalization grant made available to the State for drinking water projects pursuant to the "Safe Drinking Water Act Amendments of 1996," Pub.L.104-182, and any amendatory and supplementary acts thereto (hereinafter referred to as the "Federal Safe Drinking Water Act").
The Department of Environmental Protection is authorized to transfer from the Clean Water State Revolving Fund to the Drinking Water State Revolving Fund an amount up to the maximum amount authorized to be transferred pursuant to the Federal Safe Drinking Water Act to meet present and future needs for the financing of eligible drinking water projects, and an amount equal to that maximum amount is hereby appropriated to the department for those purposes.
The Department of Environmental Protection is authorized to transfer from the Drinking Water State Revolving Fund to the Clean Water State Revolving Fund an amount up to the maximum amount authorized to be transferred pursuant to the Federal Clean Water Act to meet present and future needs for the financing of eligible clean water projects, and an amount equal to that maximum amount is hereby appropriated to the department for those purposes.
(6) There is appropriated to the Department of Environmental Protection the unappropriated balances from the Clean Water State Revolving Fund, including the balances from the Federal Disaster Relief Appropriations Act, and any repayments of loans and interest therefrom, for the purposes of clean water project loans and providing the State match as available on or before June 30, 2018, as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(7) There is appropriated to the Department of Environmental Protection the unappropriated balances from the "Wastewater Treatment Fund" established pursuant to section 15 of the "Wastewater Treatment Bond Act of 1985" (P.L.1985, c.329), and any repayments of loans and interest therefrom, as available on or before June 30, 2018, for the purposes of clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(8) There is appropriated to the Department of Environmental Protection the unappropriated balances from the "1992 Wastewater Treatment Fund" established pursuant to section 27 of the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992" (P.L.1992, c.88), and any repayments of loans and interest therefrom, as available on or before June 30, 2018, for the purposes of clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(9) There is appropriated to the Department of Environmental Protection the unappropriated balances from the "2003 Water Resources and Wastewater Treatment Fund" established pursuant to subsection a. of section 19 of the "Dam, Lake, Stream, Flood Control, Water Resources, and Wastewater Treatment Project Bond Act of 2003" (P.L.2003, c.162), and any repayments of loans and interest therefrom, as available on or before June 30, 2018, for the purposes of clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(10) There is appropriated to the Department of Environmental Protection the unappropriated balances from the Drinking Water State Revolving Fund, including the balances from the Disaster Relief Appropriations Act of 2013, for the purposes of drinking water project loans and any repayments of loans and interest therefrom, that are or may become available on or before June 30, 2018.
(11) There is appropriated to the Department of Environmental Protection such sums as may be needed from loan repayments and interest earnings from the "Water Supply Fund" established pursuant to section 14 of the "Water Supply Bond Act of 1981" (P.L.1981, c.261) for the "Drinking Water State Revolving Fund Match Accounts" contained within that fund for the purpose of providing the State match as required or will be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.
(12) There is appropriated to the Department of Environmental Protection from the "Interim Financing Program Fund" created and established by the New Jersey Environmental Infrastructure Trust pursuant to subsection d. of section 9 of P.L.1985, c.334 (C.58:11B-9) such amounts as may be or become available on or before June 30, 2018, and any repayments of loans and interest therefrom, as may be necessary to supplement the sums appropriated from the Drinking Water State Revolving Fund for the purposes of drinking water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Safe Drinking Water Act.
(13) There is appropriated to the Department of Environmental Protection from the "Disaster Relief Emergency Financing Program Fund" created and established by the New Jersey Environmental Infrastructure Trust pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5) such amounts as may be necessary to supplement the sums appropriated from the Drinking Water State Revolving Fund for the purposes of drinking water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.
(14) There is appropriated to the Department of Environmental Protection from the "Loan Origination Fee Fund" created and established by the New Jersey Environmental Infrastructure Trust pursuant to section 1 of P.L.2005, c.202 (C.58:11B-10.2), and any repayments of loans and interest therefrom, such amounts as may be necessary to supplement the sums appropriated from the Drinking Water State Revolving Fund for the purposes of drinking water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.
(15) There is appropriated to the Department of Environmental Protection such sums as may be received by the Department of Community Affairs as the grantee from the United States Department of Housing and Urban Development Community Development Block Grant - Disaster Recovery Program (CDBG-DR), as anticipated and upon availability on or before June 30, 2018, for the purposes of CDBG-DR eligible clean water and drinking water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act and drinking water projects pursuant to the Federal Safe Drinking Water Act, respectively.
(16) There is appropriated to the Department of Environmental Protection such sums as may be or become available on or before June 30, 2018, as repayments of drinking water project loans and any interest therefrom from the "Water Supply Fund" established pursuant to section 14 of the "Water Supply Bond Act of 1981" (P.L.1981, c.261) for the purposes of drinking water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.
(17) Of the sums appropriated to the Department of Environmental Protection from the "Water Supply Fund" pursuant to P.L.1999, c.174, P.L.2001, c.222, P.L.2002, c.70 and P.L.2003, c.158, the department is authorized to transfer any unexpended balances and any repayments of loans and interest therefrom as may be or become available on or before June 30, 2018, in such amounts as needed to the Drinking Water State Revolving Fund accounts contained within the Water Supply Fund established for the purposes of providing drinking water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.
(18) Of the sums appropriated to the Department of Environmental Protection from the "1992 Wastewater Treatment Fund" pursuant to P.L.1996, c.85, P.L.1997, c.221, P.L.1998, c.84, P.L.1999, c.174, P.L.2000, c.92, P.L.2001, c.222 and P.L.2002, c.70, the department is authorized to transfer any unexpended balances and any repayments of loans and interest therefrom as may be or become available on or before June 30, 2018, in such amounts as needed to the Clean Water State Revolving Fund accounts contained within the 1992 Wastewater Treatment Fund for the purposes of providing clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(19) Of the sums appropriated to the Department of Environmental Protection from the "2003 Water Resources and Wastewater Treatment Fund" pursuant to P.L.2004, c.109, and P.L.2007, c.139, the department is authorized to transfer any unexpended balances and any repayments of loans and interest therefrom as may be or become available on or before June 30, 2018, in such amounts as needed to the Clean Water State Revolving Fund accounts contained within the 2003 Water Resources and Wastewater Treatment Fund for the purposes of providing clean water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.
(20) There is appropriated to the Department of Environmental Protection the sums deposited by the New Jersey Environmental Infrastructure Trust into the Clean Water State Revolving Fund, the "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund," established pursuant to the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989" (P.L.1989, c.181), the "2003 Water Resources and Wastewater Treatment Fund" and the Drinking Water State Revolving Fund, as appropriate, pursuant to paragraph (6) of subsection c. of section 1 of P.L. , c. (pending before the Legislature as Senate Bill No. 3240 of 2017 and Assembly Bill No. 4996 of 2017), as available on or before June 30, 2018, for the purposes of providing clean water project loans and drinking water project loans and providing the State match as required or will be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act and drinking water projects pursuant to the Federal Safe Drinking Water Act.
Any such amounts shall be for the purpose of making zero interest and principal forgiveness financing loans, to the extent sufficient funds are available, to or on behalf of local government units or public water utilities (hereinafter referred to as "project sponsors") to finance a portion of the cost of construction of clean water projects and drinking water projects listed in sections 2 and 3 of this act, and for the purpose of implementing and administering the provisions of this act, to the extent permitted by the Federal Disaster Relief Appropriations Act, the Federal Clean Water Act, and any amendatory and supplementary acts thereto, P.L.2009, c.77, the "Wastewater Treatment Bond Act of 1985" (P.L.1985, c.329), the "Water Supply Bond Act of 1981" (P.L.1981, c.261), the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989" (P.L.1989, c.181), the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992" (P.L.1992, c.88), the "Dam, Lake, Stream, Flood Control, Water Resources, and Wastewater Treatment Project Bond Act of 2003" (P.L.2003, c.162), the Federal Safe Drinking Water Act, and any amendatory and supplementary acts thereto, and State law.
b. The department is authorized to make zero interest and principal forgiveness financing loans to or on behalf of the project sponsors for the environmental infrastructure projects listed in subsection a. of section 2 and subsection a. of section 3 of this act for clean water projects, up to the individual amounts indicated and in the priority stated, to the extent there are sufficient eligible project applications, and except that any such amounts may be reduced if a project fails to meet the requirements of section 4 or 5 of this act, or by the Commissioner of Environmental Protection pursuant to section 7 of this act, provided:
(1) a maximum of $6 million in principal forgiveness loans shall be issued to finance Barnegat Bay Watershed environmental infrastructure projects as provided in subsection a. of section 3 of this act, wherein principal forgiveness shall be a minimum of 25 percent of the fund loan amount per project sponsor in an amount not to exceed $2 million of principal forgiveness per project sponsor;
(2) a maximum of $30 million shall be issued to finance clean water redevelopment projects as provided in subsection a. of section 3 of this act;
(3) to the extent funds are available, principal forgiveness loans shall be issued as provided in subsection a. of section 3 of this act to communities in combined sewer overflow sewersheds sponsoring construction projects that reduce or eliminate excessive infiltration/inflow or extraneous flows wherein principal forgiveness loans shall not exceed $5 million per borrower subject to the availability of funds wherein 50 percent of the principal of the fund loan shall be forgiven, 25 percent of the loan shall be a zero interest rate fund loan, and 25 percent of the loan shall be a trust market rate loan. A 100 percent DEP interest-free loan will be issued to borrowers for amounts in excess of the cap;
(4) to the extent funds are available, principal forgiveness loans shall be issued as provided in subsection a. of section 3 of this act for combined sewer overflow abatement projects, including projects that use practices that restore natural hydrology through infiltration, evapotranspiration, or the usage or harvesting of stormwater, wherein 50 percent of the principal of the fund loan shall be forgiven, 25 percent of the loan shall be a zero interest rate fund loan, and 25 percent of the loan shall be a trust market rate loan subject to the availability of funds;
(5) to the extent funds are available, a maximum of $1 million in principal forgiveness loans shall be issued to finance clean water environmental infrastructure projects as provided in subsection a. of section 3 of this act for systems serving populations of up to 10,000 residents for the development of asset management plans wherein principal forgiveness shall be 100 percent of the fund loan amount per project in an amount not to exceed $100,000 per project sponsor subject to the availability of funds; and
(6) those projects listed in subsection a. of section 2 of this act and subsection a. of section 3 of this act that were previously identified in P.L.2016, c.32, as amended by P.L.2017, c.14, are granted continued priority status and shall be subject to the provisions of P.L.2016, c.32, as amended by P.L.2017, c.14 provided such projects receive short-term funding prior to June 30, 2018.
c. The department is authorized to make zero interest and principal forgiveness financing loans to or on behalf of the project sponsors for the environmental infrastructure projects listed in subsection b. of section 3 of this act for drinking water projects, up to the individual amounts indicated and in the priority stated, provided:
(1) a maximum of 30 percent of the 2017 Drinking Water State Revolving Fund loans not to exceed $5 million may be issued as provided in subsection b. of section 3 of this act for drinking water systems, as follows:
(a) up to $4 million of Drinking Water State Revolving Fund loans shall be available for drinking water systems serving populations of up to 10,000 residents wherein principal forgiveness shall not exceed $500,000 in the aggregate and shall not exceed 50 percent of the total loan amount per project sponsor in an amount not to exceed $1 million per project sponsor.
Loans for drinking water systems serving 500 or fewer residents shall be given the highest priority, followed by systems serving between 501 to 10,000 residents;
(b) a maximum of $1 million in principal forgiveness loans shall be issued to drinking water systems serving populations of up to 10,000 residents for the development of asset management plans wherein principal forgiveness shall be 100 percent of the fund loan amount per project in an amount not to exceed $100,000 per project sponsor subject to the availability of funds; and
(c) a maximum of $30 million of principal forgiveness for drinking water systems serving communities with a median household income less than the median household income for the county in which they are located for lead line replacement wherein principal forgiveness shall not exceed $1 million of principal forgiveness per water system.
Loans may be made pursuant to this subsection to the extent there are sufficient eligible project applications and as required or will be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act. Any such amounts may be reduced by the Commissioner of Environmental Protection pursuant to section 7 of this act, or if a project fails to meet the requirements of section 4 or 5 of this act.
(2) Those projects listed in subsection a. of section 3 of this act and subsection b. of section 3 of this act that were previously identified in P.L.2016, c.32, as amended by P.L.2017, c.14, are granted continued priority status and shall be subject to the provisions of P.L.2016, c.32, as amended by P.L.2017, c.14, provided such projects receive short-term funding prior to June 30, 2017.
d. The department is authorized to make zero interest and principal forgiveness financing loans to or on behalf of the project sponsors for the environmental infrastructure projects listed in sections 2 and 3 of this act under the same terms, conditions and requirements as set forth in this section from any unexpended balances of the amounts appropriated pursuant to section 1 of P.L.1987, c.200, section 2 of P.L.1988, c.133, section 1 of P.L.1989, c.189, section 1 of P.L.1990, c.99, section 1 of P.L.1991, c.325, section 1 of P.L.1992, c.38, section 1 of P.L.1993, c.193, section 1 of P.L.1994, c.106, section 1 of P.L.1995, c.219, section 1 of P.L.1996, c.85, section 1 of P.L.1997, c.221, section 2 of P.L.1998, c.84, section 2 of P.L.1999, c.174, section 2 of P.L.2000, c.92, sections 1 and 2 of P.L.2001, c.222, sections 1 and 2 of P.L.2002, c.70, sections 1 and 2 of P.L.2003, c.158, sections 1 and 2 of P.L.2004, c.109, sections 1 and 2 of P.L.2005, c.196, sections 1 and 2 of P.L.2006, c.68, sections 1 and 2 of P.L.2007, c.139, sections 1 and 2 of P.L.2008, c.68, sections 1 and 2 of P.L.2009, c.102, sections 1 and 2 of P.L.2010, c.63, sections 1 and 2 of P.L.2011, c.93, sections 1 and 2 of P.L.2012, c.43, sections 1 and 2 of P.L.2013, c.95, sections 1 and 2 of P.L.2014, c.25, sections 1 and 2 of P.L.2015, c.108, and sections 1 and 2 of P.L.2016, c.32, as amended by P.L.2017, c.14, including amounts resulting from the low bid and final building cost reductions authorized pursuant to section 6 of P.L.1987, c.200, section 7 of P.L.1988, c.133, section 6 of P.L.1989, c.189, section 6 of P.L.1990, c.99, section 6 of P.L.1991, c.325, section 6 of P.L.1992, c.38, section 6 of P.L.1993, c.193, section 6 of P.L.1994, c.106, section 6 of P.L.1995, c.219, section 6 of P.L.1996, c.85, section 6 of P.L.1997, c.221, section 7 of P.L.1998, c.84, section 6 of P.L.1999, c.174, section 6 of P.L.2000, c.92, section 6 of P.L.2001, c.222, section 6 of P.L.2002, c.70, section 6 of P.L.2003, c.158, section 6 of P.L.2004, c.109, section 6 of P.L.2005, c.196, section 6 of P.L.2006, c.68, section 6 of P.L.2007, c.139, section 6 of P.L.2008, c.68, section 7 of P.L.2009, c.102, section 6 of P.L.2010, c.63, section 6 of P.L.2011, c.93, section 6 of P.L.2012, c.43, section 6 of P.L.2013, c.95, section 6 of P.L.2014, c.25, section 6 of P.L.2015, c.108, and section 6 of P.L.2016, c.32, as amended by P.L.2017, c.14, and from any repayments of loans and interest from the Clean Water State Revolving Fund, the "Wastewater Treatment Fund," the "Water Supply Fund," the "1992 Wastewater Treatment Fund," the "2003 Water Resources and Wastewater Treatment Fund," and amounts deposited therein during State fiscal year 2016 and State fiscal year 2017 pursuant to the provisions of section 16 of P.L.1985, c.329, and section 2 of P.L.2009, c.77 and any amendatory and supplementary acts thereto, including any Clean Water State Revolving Fund Accounts contained within the "Wastewater Treatment Fund," and from any repayment of loans and interest from the Drinking Water State Revolving Fund.
e. The department is authorized to make zero interest and principal forgiveness Sandy financing loans to or on behalf of the project sponsors for the Sandy environmental infrastructure projects listed in subsection a. of section 3 of this act for clean water projects and subsection b. of section 3 of this act for drinking water projects, in a manner consistent with the Federal Disaster Relief Appropriations Act, up to the individual amounts indicated, except that any such amount may be reduced by the Commissioner of Environmental Protection pursuant to section 7 of this act, or if a project fails to meet the requirements of section 4, 5, or 7 of this act, provided a maximum of $300 million shall be provided for Sandy financing loans for clean water and drinking water projects to provide financial assistance to communities affected by the Storm Sandy, and for projects whose purpose is to reduce flood damage risk and vulnerability or to enhance resiliency to rapid hydrologic change or a natural disaster.
f. For the purposes of this act:
"Base financing" means zero interest loans provided by the Department of Environmental Protection from moneys made available for the purposes of this act from any source other than funds received pursuant to the Federal Disaster Relief Appropriations Act, related State matching funds, and interest earned thereon.
"Federal Disaster Relief Appropriations Act" means the "Disaster Relief Appropriations of 2013" (Pub.L.113-2), and any amendatory and supplementary acts thereto.
"Sandy financing" or "Sandy funding" means grants, zero interest loans or principal forgiveness loans provided by the Department of Environmental Protection from funds made available to the State for clean water projects, clean water project match, drinking water projects or drinking water project match pursuant to the Federal Disaster Relief Appropriations Act.
2. a. (1) The department is authorized to expend funds for the purpose of making supplemental zero interest loans to or on behalf of the project sponsors listed below for the following clean water environmental infrastructure projects:
|
Project Sponsor |
Project Number |
Estimated Allowable DEP Loan Amount |
Estimated Total Allowable Loan Amount |
|
Burlington Township |
S320712-14-1 |
$150,000 |
$200,000 |
|
North Hudson Sewer Authority |
S340952-19-1 |
$150,000 |
$200,000 |
|
Ventnor City |
S340667-02-1 |
$3,750,000 |
$5,000,000 |
|
Wanaque Valley RSA |
S340780-04-1 |
$1,125,000 |
$1,500,000 |
|
Warren Township SA |
S340964-01-1 |
$75,000 |
$100,000 |
|
Warren Township SA
|
S340964-02-1 |
$262,500 |
$350,000 |
|
Total projects: 6 |
|
$5,512,500 |
$7,350,000 |
(2) The loans authorized in this subsection shall be made for the difference between the allowable loan amounts required by these projects based upon final building costs pursuant to section 7 of this act and the loan amounts certified by the Commissioner of Environmental Protection in State fiscal years 2015, 2016, and 2017 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the department pursuant to section 4 of P.L.1985, c.329. The loans authorized in this subsection shall be made to or on behalf of the project sponsors listed, up to the individual amounts indicated and in the priority stated, to the extent sufficient funds are available, except as a project fails to meet the requirements of section 4, 5, or 7 of this act.
(3) The zero interest loans for the projects authorized in this subsection shall have priority over projects listed in subsection a. of section 3 of this act.
b. (1) The department is authorized to expend funds for the purpose of making supplemental loans to or on behalf of the project sponsors listed below for the following drinking water environmental infrastructure projects:
|
Project Sponsor |
Project Number |
Estimated Allowable DEP Loan Amount |
Estimated Total Allowable Loan Amount |
|
North Jersey District Water Supply Comm. |
1613001-017-1 |
$2,700,000 |
$3,600,000 |
|
Total Projects: 1 |
|
$2,700,000 |
$3,600,000 |
(2) The loans authorized in this subsection shall be made for the difference between the allowable loan amount required by this project based upon final building costs pursuant to section 6 of this act and the loan amount certified by the Commissioner of Environmental Protection in State fiscal year 2017 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the department pursuant to section 5 of P.L.1981, c.261. The loans authorized in this subsection shall be made to or on behalf of the project sponsors listed, up to the individual amounts indicated and in the priority stated, to the extent sufficient funds are available, except as a project fails to meet the requirements of section 4, 5, or 7 of this act.
(3) The zero interest loans for the projects authorized in this subsection shall have priority over projects listed in subsection b. of section 3 of this act.
3. a. The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2018 Clean Water Project Eligibility List":
|
Project Sponsor |
Project Number |
Estimated Allowable DEP Loan Amount |
Estimated Total Allowable Loan Amount |
|
Atlantic County UA |
S340809-23 |
$8,280,000 |
$11,040,000 |
|
Atlantic County UA
|
S340809-24 |
$720,000 |
$960,000 |
|
Atlantic County UA
|
S340809-25 |
$13,140,000 |
$17,520,000 |
|
Atlantic County UA
|
S340809-26 |
$1,350,000 |
$1,800,000 |
|
Atlantic County UA
|
S340809-27 |
$2,400,000 |
$3,200,000 |
|
Atlantic County UA
|
S340809-28 |
$3,075,000 |
$4,100,000 |
|
Bayshore RSA
|
S340697-05 |
$21,150,000 |
$28,200,000 |
|
Burlington Township
|
S340712-15 |
$825,000 |
$1,100,000 |
|
Carteret Borough
|
S340939-09 |
$7,950,000 |
$10,600,000 |
|
Cinnaminson SA
|
S340170-07 |
$6,750,000 |
$9,000,000 |
|
Cumberland County UA
|
S340550-07 |
$975,000 |
$1,300,000 |
|
Cumberland County UA
|
S340550-08 |
$975,000 |
$1,300,000 |
|
Elizabeth City
|
S340942-18 |
$6,150,000 |
$8,200,000 |
|
Gloucester City
|
S340958-07 |
$900,000 |
$1,200,000 |
|
Gloucester County IA
|
S342024-01 |
$6,000,000 |
$8,000,000 |
|
Gloucester County UA
|
S340902-14 |
$33,750,000 |
$45,000,000 |
|
Gloucester County UA
|
S340902-16 |
$1,575,000 |
$2,100,000 |
|
Hightstown Borough
|
S340915-05 |
$1,050,000 |
$1,400,000 |
|
Hoboken City
|
S340635-06 |
$24,750,000 |
$33,000,000 |
|
Hoboken City
|
S340635-07 |
$3,750,000 |
$5,000,000 |
|
Kearny MUA
|
S340259-07 |
$4,875,000 |
$6,500,000 |
|
Long Beach Township
|
S340023-06 |
$3,750,000 |
$5,000,000 |
|
Mendham Township
|
S340477-01 |
$1,875,000 |
$2,500,000 |
|
Millville City
|
S340921-07 |
$9,000,000 |
$12,000,000 |
|
North Hudson SA
|
S340952-23 |
$2,325,000 |
$3,100,000 |
|
Northwest Bergen County UA
|
S340700-13 |
$3,900,000 |
$5,200,000 |
|
Ocean County
|
S344080-10 |
$187,500 |
$250,000 |
|
Ocean County
|
S344080-11 |
$262,500 |
$350,000 |
|
Ocean Township |
S340112-07 |
$2,250,000 |
$3,000,000 |
|
Ocean Township SA
|
S340750-11 |
$4,875,000 |
$6,500,000 |
|
Passaic Valley SC
|
S340689-25 |
$6,825,000 |
$9,100,000 |
|
Passaic Valley SC
|
S340689-30 |
$1,875,000 |
$2,500,000 |
|
Passaic Valley SC
|
S340689-31 |
$3,000,000 |
$4,000,000 |
|
Passaic Valley SC
|
S340689-34 |
$2,175,000 |
$2,900,000 |
|
Pine Hill MUA
|
S340274-05 |
$1,350,000 |
$1,800,000 |
|
Rockaway Valley RSA
|
S340821-06 |
$6,000,000 |
$8,000,000 |
|
Somerset Raritan Valley SA
|
S340801-08 |
$10,125,000 |
$13,500,000 |
|
Somerville Borough
|
S342013-01 |
$8,625,000 |
$11,500,000 |
|
South Monmouth RSA
|
S340377-05 |
$2,625,000 |
$3,500,000 |
|
Stafford Township
|
S344100-03 |
$4,200,000 |
$5,600,000 |
|
Sussex County MUA
|
S342008-05 |
$9,750,000 |
$13,000,000 |
|
Ventnor City
|
S340667-03 |
$1,500,000 |
$2,000,000 |
|
Total Projects: 42 |
|
$236,865,000 |
$315,820,000 |
b. The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2018 Drinking Water Project Eligibility List":
|
Project Sponsor |
Project No. |
Estimated Allowable DEP Loan Amount |
Estimated Total Allowable Loan Amount |
|
Berkeley Township MUA
|
1505004-007 |
$525,000 |
$700,000 |
|
Bordentown City
|
0303001-006 |
$1,125,000 |
$1,500,000 |
|
Cape May City
|
0502001-004 |
$1,650,000 |
$2,200,000 |
|
Clinton Town
|
1005001-008 |
$1,125,000 |
$1,500,000 |
|
Clinton Town
|
1005001-009 |
$900,000 |
$1,200,000 |
|
Gloucester City |
0414001-020A |
$187,500 |
$250,000 |
|
Hoboken City
|
0905001-001 |
$6,375,000 |
$8,500,000 |
|
Jackson Township MUA
|
1511001-010 |
$6,150,000 |
$8,200,000 |
|
Long Beach Township
|
1517001-500 |
$6,900,000 |
$9,200,000 |
|
Maple Shade Township
|
0319001-006 |
$1,950,000 |
$2,600,000 |
|
Middlesex Water Company
|
1225001-016 |
$4,275,000 |
$5,700,000 |
|
Middlesex Water Company
|
1225001-023 |
$6,000,000 |
$8,000,000 |
|
Middlesex Water Company
|
1225001-024 |
$2,700,000 |
$3,600,000 |
|
Netcong Borough
|
1428001-009 |
$300,000 |
$400,000 |
|
NJ American Water Co.-Raritan
|
2004002-500 |
$27,000,000 |
$36,000,000 |
|
NJ American Water Company
|
2004002-011 |
$9,600,000 |
$12,800,000 |
|
North Jersey District WS
|
1613001-022 |
$12,750,000 |
$17,000,000 |
|
North Jersey District WS
|
1613001-025 |
$5,475,000 |
$7,300,000 |
|
North Jersey District WS
|
1613001-033 |
$3,075,000 |
$4,100,000 |
|
Ocean Township
|
1520001-007 |
$1,050,000 |
$1,400,000 |
|
Passaic Valley WC
|
1605002-025 |
$27,450,000 |
$36,600,000 |
|
Perth Amboy City
|
1216001-008 |
$1,875,000 |
$2,500,000 |
|
Rahway City
|
2013001-007 |
$13,650,000 |
$18,200,000 |
|
Red Bank Borough
|
1340001-002 |
$1,500,000 |
$2,000,000 |
|
Saddle Brook Township
|
0257001-002 |
$1,425,000 |
$1,900,000 |
|
Trenton City |
1111001-010 |
$7,875,000 |
$10,500,000 |
|
Washington Township MUA
|
0818004-010 |
$1,425,000 |
$1,900,000 |
|
Willingboro MUA
|
0338001-009 |
$5,250,000 |
$7,000,000 |
|
Total Projects: 28 |
|
$159,562,500 |
$212,750,000 |
4. Any financing loan made by the Department of Environmental Protection pursuant to this act shall be subject to the following requirements:
a. The Commissioner Environmental Protection has certified that the project is in compliance with the provisions of P.L.1977, c.224, P.L.1985, c.329, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.225 or P.L.2003, c.162, and any rules and regulations adopted pursuant thereto;
b. A loan for an environmental infrastructure project listed in section 2 or 3 of this act shall be subject to the terms and conditions of the financing program year in which the trust issued an interim financing program fund loan for such project or the terms and conditions of the state fiscal year 2018 financing program in the absence of an interim financing program fund loan.
c. The estimated Department of Environmental Protection allowable loan amount shall not exceed 75 percent of the total allowable loan amount of the environmental infrastructure facility for projects listed in subsections a. and b. of section 2 of this act, and in subsections a. and b. of section 3 of this act, provided that:
(1) for clean water loans to municipalities that do not satisfy the New Jersey Environmental Infrastructure Trust credit policy but are subject to State financial supervision and oversight pursuant to the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), the Department of Environmental Protection allowable loan amount shall be up to 100 percent of the total allowable loan amount not to exceed a total of $10 million for all such loans;
(2) for clean water and drinking water loans to municipalities receiving funding under the United States Department of Housing and Urban Development Community Development Block Grant - Disaster Recovery Program (CDBG-DR) the Department of Environmental Protection allowable loan amount shall be up to 100 percent of the total allowable loan amount; and
(3) for loans to communities in a combined sewer overflow sewershed sponsoring construction projects that reduce or eliminate excessive infiltration, inflow, or extraneous flows, the Department of Environmental Protection allowable loan amount shall be up to 100 percent of the total allowable loan amount;
d. With the exception of paragraphs (1) through (3) of subsection c. of this section, the loan shall be conditioned upon approval of a loan from the New Jersey Environmental Infrastructure Trust pursuant to P.L. , c. (pending before the Legislature as Senate Bill No. 3240 of 2017 and Assembly Bill No. 4996 of 2017), prior to June 30, 2018;
e. The loan shall be repaid within a period not to exceed 30 years of the making of the loan; and
f. The loan shall be subject to any other terms and conditions as may be established by the commissioner and approved by the State Treasurer, which may include, notwithstanding any other provision of law to the contrary, subordination of a loan authorized in this act to loans made by the New Jersey Environmental Infrastructure Trust pursuant to P.L. , c. (pending before the Legislature as Senate Bill No. 3240 of 2017 and Assembly Bill No. 4996 of 2017), or to administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B‑5).
5. a. Any Sandy financing loan made by the Department of Environmental Protection pursuant to this act shall be subject to the following requirements:
(1) The commissioner has certified that the project is in compliance with the provisions of Title X, Chapter 7 of the Federal "Disaster Relief Appropriations Act of 2013" (Pub.L.113-2), and any amendatory and supplementary acts thereto; and
(2) The commissioner has certified that the project is in compliance with the provisions of P.L.1977, c.224, P.L.1985, c.329, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.225 or P.L.2003, c.162, and any rules and regulations adopted pursuant thereto.
b. The total amount of Sandy financing loans received by any project sponsor for drinking water projects listed in subsection b. of section 3 of this act shall not exceed $15 million of which not more than $4.5 million of the principal may be forgiven. In the event a project sponsor's individual loan needs exceed $15 million, the borrower may select which of its projects it will seek funding pursuant to this section, and the borrower may seek a loan for excess costs in a base financing loan. In the event that additional Sandy funding becomes available because project sponsors do not close on loans or the project sponsors loan requests are less than originally applied for, the loan not to exceed amount may be increased to the extent needed to assure full utilization of Sandy funding for drinking water projects, provided:
(1) the loan shall be repaid within a period not to exceed 30 years of the making of the loan;
(2) the loan shall be conditioned upon approval of a loan from the New Jersey Environmental Infrastructure Trust pursuant to P.L. , c. (pending before the Legislature as Senate Bill No. 3240 of 2017 and Assembly Bill No. 4996 of 2017) prior to June 30, 2018; and
(3) the loan shall be subject to any other terms and conditions as may be established by the commissioner and approved by the State Treasurer, which may include, notwithstanding any other provision of law to the contrary, subordination of a loan authorized in this act to loans made by the trust pursuant to P.L. , c. (pending before the Legislature as Senate Bill No. 3240 of 2017 and Assembly Bill No. 4996 of 2017) prior to June 30, 2018, or to administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5).
6. The eligibility lists and authorization for the making of loans pursuant to sections 2 and 3 of this act shall expire on July 1, 2018, and any project sponsor which has not executed and delivered a loan agreement with the department for a loan authorized in this act shall no longer be entitled to that loan.
7. The Commissioner of Environmental Protection is authorized to reduce or increase the individual amount of loan funds made available to or on behalf of project sponsors pursuant to sections 2 and 3 of this act based upon final or low bid building costs defined in and determined in accordance with rules and regulations adopted by the commissioner pursuant to section 4 of P.L.1985, c.329, section 2 of P.L.1999, c.362 (C.58:12A-12.2), or section 5 of P.L.1981, c.261, provided that the total loan amount does not exceed the estimated total allowable loan amount. The commissioner is authorized to reduce or increase the individual amount of loan funds made available to or on behalf of project sponsors pursuant to sections 2 and 3 of this act in an amount not to exceed 10 percent of the total allowable loan amount based upon additional project costs to comply with the Department of Environmental Protection's guidance for asset management, emergency response, flood protection, and auxiliary power.
8. The expenditure of the funds appropriated by this act is subject to the provisions and conditions of P.L.1977, c.224, P.L.1985, c.329, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.225 or P.L.2003, c.162, and the rules and regulations adopted by the Commissioner of Environmental Protection pursuant thereto, and the provisions of the Federal Disaster Relief Appropriations Act, the Federal Clean Water Act or the Federal Safe Drinking Water Act, and any amendatory and supplementary acts thereto, as appropriate.
9. The Department of Environmental Protection shall provide general technical assistance to any project sponsor requesting assistance regarding environmental infrastructure project development or applications for funds for a project.
10. a. Prior to repayment to the Clean Water State Revolving Fund pursuant to sections 1 and 2 of P.L.2009, c.77 and any amendatory and supplementary acts thereto, prior to repayment to the "Wastewater Treatment Fund" pursuant to the provisions of section 16 of P.L.1985, c.329, prior to repayment to the "1992 Wastewater Treatment Fund" pursuant to the provisions of section 28 of P.L.1992, c.88, prior to repayment to the Drinking Water State Revolving Fund, prior to repayment to the "Stormwater Management and Combined Sewer Overflow Abatement Fund" pursuant to the provisions of section 15 of P.L.1989, c.181, prior to repayment to the "2003 Water Resources and Wastewater Treatment Fund" pursuant to the provisions of section 20 of P.L.2003, c.162, or prior to repayment to the "Water Supply Fund" pursuant to the provisions of section 15 of P.L.1981, c.261, repayments of loans made pursuant to these acts may be utilized by the New Jersey Environmental Infrastructure Trust established pursuant to P.L.1985, c.334 (C.58:11B‑1 et seq.), as amended and supplemented by P.L.1997, c.224, under terms and conditions established by the commissioner and trust, and approved by the State Treasurer, and consistent with the provisions of P.L.1985, c.334 (C.58:11B‑1 et seq.) and federal tax, environmental or securities law, to the extent necessary to secure repayment of trust bonds issued to finance loans approved pursuant to P.L. , c. (pending before the Legislature as Senate Bill No. 3240 of 2017 and Assembly Bill No. 4996 of 2017), and to secure the administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B‑5) by the project sponsors receiving trust loans.
b. Prior to repayment to the Clean Water State Revolving Fund pursuant to section 1 and 2 of P.L. 2009, c.77 and any amendatory and supplementary acts thereto, prior to repayment to the "Wastewater Treatment Fund" pursuant to the provisions of section 16 of P.L.1985, c.329, prior to repayment to the "1992 Wastewater Treatment Fund" pursuant to the provisions of section 28 of P.L.1992, c.88, prior to repayment to the "Water Supply Fund" pursuant to the provisions of section 15 of P.L.1981, c.261, prior to repayment to the Drinking Water State Revolving Fund, prior to repayment to the "2003 Water Resources and Wastewater Treatment Fund" pursuant to the provisions of section 20 of P.L.2003, c.162, or prior to repayment to the "Stormwater Management and Combined Sewer Overflow Abatement Fund" pursuant to the provisions of section 15 of P.L.1989, c.181, the trust is further authorized to utilize repayments of loans made pursuant to P.L.1989, c.189, P.L.1990, c.99, P.L.1991, c.325, P.L.1992, c.38, P.L.1993, c.193, P.L.1994, c.106, P.L.1995, c.219, P.L.1996, c.85, P.L.1997, c.221, P.L.1998, c.84, P.L.1999, c.174, P.L.2000, c.92, P.L.2001, c.222, P.L.2002, c.70, P.L.2003, c.158, P.L.2004, c.109, P.L.2005, c.196, P.L.2006, c.68, P.L.2007, c.139, P.L.2008, c.68, P.L.2009, c.102, P.L.2010, c.63, P.L.2011, c.93, P.L.2012, c.43, P.L.2013, c.95, P.L.2014, c.25, P.L.2015, c.108, P.L.2016, c.32, or P.L. , c. (pending before the Legislature as Senate Bill No. 3241 of 2017 and Assembly Bill No. 4998 of 2017) to secure repayment of trust bonds issued to finance loans approved pursuant to P.L.1995, c.218, P.L.1996, c.87, P.L.1997, c.222, P.L.1998, c.85, P.L.1999, c.173, P.L.2000, c.93, P.L.2001, c.224, P.L.2002, c.71, P.L.2003, c.159, P.L.2004, c.110, P.L.2005, c.197, P.L.2006, c.67, P.L.2007, c.140, P.L.2008, c.67, P.L.2009, c.101, P.L.2010, c.62, P.L.2011, c.95, P.L.2012, c.38, P.L.2013, c.94, P.L.2014, c.26, P.L.2015, c.107 P.L.2016, c.31, or P.L. , c. (pending before the Legislature as Senate Bill No. 3240 of 2017 and Assembly Bill No. 4996 of 2017) and to secure the administrative fees payable to the trust under these loans pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B‑5).
c. To the extent that any loan repayment sums are used to satisfy any trust bond repayment or administrative fee payment deficiencies, the trust shall repay such sums to the department for deposit into the Clean Water State Revolving Fund, the "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the Drinking Water State Revolving Fund, the "2003 Water Resources and Wastewater Treatment Fund," or the "Stormwater Management and Combined Sewer Overflow Abatement Fund," as appropriate, from amounts received by or on behalf of the trust from project sponsors causing any such deficiency.
11. The Commissioner of Environmental Protection is authorized to enter into capitalization grant agreements as may be required pursuant to the Federal Disaster Relief Appropriations Act, the Federal Clean Water Act, or the Federal Safe Drinking Water Act.
12. There is appropriated to the New Jersey Environmental Infrastructure Trust established pursuant to P.L.1985, c.334 (C.58:11B‑1 et seq.) from repayments of loans and interest deposited in any account, on or before June 30, 2018, including the "Clean Water State Revolving Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund," "2003 Water Resources and Wastewater Treatment Fund," or the Drinking Water State Revolving Fund, as appropriate, and from any net earnings received from the investment and reinvestment of such deposits, such sums as the chairman of the trust shall certify to the Commissioner of Environmental Protection to be necessary and appropriate for deposit into one or more reserve funds or accounts established by the trust pursuant to section 11 of P.L.1985, c.334 (C.58:11B‑11), the Interim Financing Program Fund, or the Disaster Relief Emergency Financing Program Fund established pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5).
13. There is appropriated to the New Jersey Environmental Infrastructure Trust established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.), funds from the Federal Disaster Relief Appropriations Act, Pub.L.113-2, deposited in any account including the Clean Water State Revolving Fund, the "Water Supply Fund," or the Drinking Water State Revolving Fund, as appropriate, and from any net earnings received from the investment and reinvestment of such deposits, such sums as the chairman of the trust certifies to the Commissioner of Environmental Protection to be necessary and appropriate for deposit into one or more reserve funds or accounts established by the trust pursuant to section 11 of P.L.1985, c.334 (C.58:11B-11), the Interim Financing Program Fund, or the Disaster Relief Emergency Financing Program Fund established pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5).
14. This act shall take effect immediately.
STATEMENT
This bill appropriates certain federal and State moneys to the Department of Environmental Protection (DEP) for the purpose of implementing the State Fiscal Year 2018 New Jersey Environmental Infrastructure Financing Program (NJEIFP), which is expected to finance approximately $539.52 million in Storm Sandy and other environmental infrastructure projects for State Fiscal Year 2018.
The DEP, working with the New Jersey Environmental Infrastructure Trust (NJEIT), implements the NJEIFP which has financed over 1,234 projects totaling over $6.7 billion throughout the State. From its inception, the program has reduced financing costs by approximately 30 percent, saving borrowers over $2.3 billion. In addition, the program has generated more than 130,000 construction jobs, and stimulated significant improvements to the State's clean water and drinking water infrastructure. Under the bill, for fiscal year 2018, approximately $323.17 million will be available for clean water project loans and $216.35 million for drinking water project loans. Funding sources include federal capitalization grants, State bond issue proceeds, State match, various prior legislative appropriations, loan repayments, interest earnings, and market rate loans made by the New Jersey Environmental Infrastructure Trust (NJEIT).
Of those totals, approximately $224.42 million will be available for financing Storm Sandy project loans of which approximately 19 percent of each loan will be subject to principal forgiveness. Approximately $132.62 million will be available for financing Storm Sandy clean water project loans of which approximately $25.2 million will be subject to principal forgiveness. Approximately $81.8 million will be available for financing Storm Sandy drinking water project loans of which approximately $15.542 million will be subject to principal forgiveness. Funding sources include the Federal Disaster Relief Appropriations Act, State match, and market rate loans made by the NJEIT.
To the extent funds are available, principal forgiveness loans will be available for Combined Sewer Overflow Abatement (CSO) projects that reduce or eliminate excessive infiltration/inflow or extraneous flows. For these projects, principal forgiveness loans may not exceed $5 million per borrower of which approximately 50 percent of the principal of the fund loan shall be forgiven, 25 percent of the loan will be a zero interest rate fund loan, and 25 percent of the loan will be a trust market rate loan. A 100 percent DEP interest free loan will be issued to borrowers for the amounts of the loan in excess of the cap.
To the extent funds are available, principal forgiveness loans will be available for CSO projects with a focus on green technology (e.g., green roofs, rain gardens, porous pavement, and other activities that maintain and restore natural hydrology). For these projects, 50 percent of the fund loan will be forgiven, 25 percent of the loan will be a zero interest rate fund loan, and 25 percent of the loan will be a trust market rate loan. Principal forgiveness will be available to the highest ranked CSO projects and will be awarded according to the DEP's ranking methodology based on projects' relative water quality benefit in conjunction with project readiness. Approximately $6 million will be available for principal forgiveness loans for stormwater runoff mitigation environmental infrastructure projects in the Barnegat Bay Watershed to continue addressing the critical water quality issues confronting this waterbody, of which 25 percent will be subject to principal forgiveness in an amount not to exceed $2 million of principal forgiveness per project sponsor. Approximately 10 percent of the State's clean water capitalization grant and 20 percent of the State's drinking water capitalization grant will be used as a green project reserve as may be required in the 2017 federal appropriation. Approximately $30 million is available for loans to eligible redevelopment projects.
To the extent funds are available, a maximum of $1 million in principal forgiveness loans will be available to finance the development of asset management plans for systems serving populations up to 10,000 residents of which 100 percent will be subject to principal forgiveness in an amount not to exceed $100,000 per project sponsor.
Any additional clean water principal forgiveness loans permitted in the federal appropriation will be available for CSO abatement projects and Barnegat Bay Watershed projects as described above. If drinking water principal forgiveness loans are permitted, the State is prepared to dedicate up to 30 percent of its state drinking water capitalization grant for such projects. Drinking water loans for improvements to water supply systems serving populations of up to 10,000 people will be in an amount not to exceed $500,000 and may not exceed 50 percent of the total loan amount per project sponsor in an amount not to exceed $1 million per project sponsor. To the extent funds are available, a maximum of $30 million of principal forgiveness loans are available for drinking water systems serving communities with a median household income less than the median household income for the county in which they are located for lead line replacement in an amount not to exceed $1 million of principal forgiveness per project sponsor.
Disaster Relief Emergency Financing Program loans will continue to be available for short-term financing (up to three full fiscal years) for projects to repair or improve the resiliency of environmental infrastructure systems adversely impacted by Storm Sandy. The source of funds for such loans is currently repayments of prior NJEIFP Loans and NJEIT operating funds but private bank financing for such loans may be used as the need arises. Finally, Interim Financing Program (IFP) Loans will be available for projects approved to receive long-term financing. IFP loans will be available upon the DEP's issuance of an authorization to award a project's final construction contract, project certification by the DEP, and satisfaction of financial eligibility requirements. The loans will finance costs disbursed prior to long-term financing. The source of funds for such loans include prior capitalization grants, NJEIFP loan repayments, prior State bond acts, and interest earnings thereon.
The DEP would use the funds appropriated under this bill to make zero interest loans to local governments and privately-owned water companies (project sponsors) for between 25 percent and 75 percent of project costs totaling (1) $315.82 million for new clean water projects included in the "Storm Sandy and State Fiscal Year 2018 Clean Water Project Eligibility List," and $7.35 million for clean water projects through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds; and (2) $212.75 million for new drinking water projects included in the "Storm Sandy and State Fiscal Year 2018 Drinking Water Project Eligibility List," and $3.6 million for drinking water projects through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds. The supplemental loans constitute the difference between the allowable loan amount required by the project and the loan amount certified by the Commissioner of Environmental Protection in State Fiscal Year 2018. The bill authorizes the DEP to issue loans up to 100 percent of the total allowable loan amount (1) for clean water loans to municipalities that do not satisfy the New Jersey Environmental Infrastructure Trust credit policy but are subject to State financial supervision and oversight pursuant to the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), (2) for clean water and drinking water loans to municipalities receiving funding under the United States Department of Housing and Urban Development Community Development Block Grant - Disaster Recovery Program (CDBG-DR), (3) for loans to clean water or drinking water systems serving 10,000 or fewer residents the DEP allowable loan amount will be 100% of the total allowable loan amount not to exceed a total of $100,000 per project sponsor, and (4) for loans to communities in a combined sewer overflow "CSO" sewershed sponsoring construction projects that reduce or eliminate excessive infiltration/inflow or extraneous flows.
A companion bill, Senate Bill No. 3240 of 2017, would authorize the NJEIT to make market rate loans to local governments and privately-owned water companies (project sponsors) for between 25 percent and 75 percent of project costs totaling (1) $315.82 million for 42 new clean water projects included in the "Storm Sandy and State Fiscal Year 2018 Clean Water Project Eligibility List," and $7.35 million for six clean water projects through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds; and (2) $212.75 million for 28 new drinking water projects included in the "Storm Sandy and State Fiscal Year 2018 Drinking Water Project Eligibility List," and $2.7 million for one drinking water project through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds. Under this bill, in conjunction with Senate Bill No. 3240 of 2017, the Storm Sandy and State Fiscal Year 2018 New Jersey Environmental Infrastructure Financing Program would finance $539.52 million in environmental infrastructure projects for State Fiscal Year 2018 subject to the availability of funds.
