Bill Text: NJ A5917 | 2020-2021 | Regular Session | Introduced
Bill Title: Makes $1.3 billion in federal funds available to DEP for use in New Jersey Environmental Infrastructure Financing Program for lead service line replacement projects.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2021-06-21 - Introduced, Referred to Assembly Environment and Solid Waste Committee [A5917 Detail]
Download: New_Jersey-2020-A5917-Introduced.html
Sponsored by:
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
SYNOPSIS
Makes $1.3 billion in federal funds available to DEP for use in New Jersey Environmental Infrastructure Financing Program for lead service line replacement projects.
CURRENT VERSION OF TEXT
As introduced.
An Act making federal funding available to the Department of Environmental Protection for use in the New Jersey Environmental Infrastructure Financing Program for lead service line replacement projects.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Subject to the availability of federal funds provided or made accessible to the State from the "Coronavirus State Fiscal Recovery Fund," established pursuant to the federal "American Rescue Plan Act of 2021," Pub.L.117-2, or any other federal funds provided or made accessible to the State in response to the coronavirus disease 2019 (COVID-19) pandemic, $1,300,000,000 from such federal funds shall be made available to the Department of Environmental Protection for the purposes set forth in subsection b. of this section.
b. (1) The funds made available to the Department of Environmental Protection pursuant to subsection a. of this section shall be reserved by the department to provide financial support, in conjunction with the New Jersey Infrastructure Bank and pursuant to the New Jersey Environmental Infrastructure Financing Program, for lead service line replacement projects undertaken by suppliers of water in the State. The department may use not more than one percent of the funds to defray any administrative expenses incurred in the implementation of this section.
(2) The use of federal funds for the purposes specified in this subsection shall be conditioned upon the upfront provision of matching funds for each lead service line replacement project by the public water utility or other supplier of water undertaking the project, except when the project is being undertaken by a small water supplier, in which case, the small water supplier shall not be required to provide upfront matching funds, but may be required to commit to provide matching funds at some future date, as agreed to by the department in consultation with the New Jersey Infrastructure Bank. To facilitate the provision of matching funds by suppliers of water, the New Jersey Infrastructure Bank is authorized to make loans to project sponsors for lead service line replacement projects undertaken by suppliers of water in the State. The department, in consultation with the New Jersey Infrastructure Bank, shall determine the amount of matching funds to be provided by each supplier of water pursuant to this paragraph and, when determining the amount, and the timeframe for provision, of matching funds by a small water supplier, shall consider the financial reserves held by the small water supplier and any other factors that would enable, or negate the ability of, the small water supplier to provide matching funds for the project.
(3) Notwithstanding the provisions of paragraph (1) of this subsection to the contrary, the department may transfer, to the New Jersey Infrastructure Bank, the uncommitted balance of funds made available to the department pursuant to this section. The New Jersey Infrastructure Bank shall use the funds transferred pursuant to this paragraph for the purposes of providing financial support, in conjunction with the department and pursuant to the New Jersey Environmental Infrastructure Financing Program, for lead service line replacement projects undertaken by suppliers of water in the State. The same conditions specified in paragraph (2) of this subsection shall apply to any financial awards that are made by the New Jersey Infrastructure Bank using the federal funds transferred pursuant to this paragraph. The New Jersey Infrastructure Bank may use not more than one percent of the transferred funds to defray any administrative expenses incurred in the implementation of this paragraph. No less than five calendar days before the date of the transfer of funds pursuant to this paragraph, the department shall submit written notice to the Joint Budget Oversight Committee indicating the amount of the transferred funds and the purpose for which the funds are being transferred.
c. The department, in consultation with the New Jersey Infrastructure Bank, shall establish the size of each financial award that is provided to a supplier of water using the federal funds made available pursuant to this section, and shall determine the eligibility of suppliers of water for such financial support, as may be necessary to meet the needs of suppliers of water in responding to and addressing lead contamination of water service lines in the State. The use of federal funds made available pursuant to this section, the establishment of eligibility standards as provided by this subsection, and the provision of loans to project sponsors shall be done in accordance with the provisions of the "New Jersey Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-1 et seq.), and the provisions of any other applicable laws or regulations.
d. As used in this section:
"Department" means the Department of Environmental Protection.
"Lead service line" means a water supply connection that: is made of, or lined with, a material consisting of lead; connects a water main to a building inlet; and is owned by a supplier of water, a property owner, or both. A lead pigtail, lead gooseneck, or other lead fitting shall be considered to be a lead service line, regardless of the composition of the service line or other portions of piping to which such piece is attached. A galvanized service line shall also be considered to be a lead service line.
"New Jersey Environmental Infrastructure Financing Program" means the program jointly administered by the department and the New Jersey Infrastructure Bank, in accordance with the "New Jersey Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-1 et seq.), and pursuant to which zero and low-interest financing is made available for environmental infrastructure projects, including, but not limited to, water supply projects and water resource projects undertaken by suppliers of water in the State.
"New Jersey Infrastructure Bank" means the entity, established pursuant to section 4 of the "New Jersey Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-4), which works in conjunction with the department to implement the New Jersey Environmental Infrastructure Financing Program.
"Public water utility" means the same as that term is defined in section 3 of the "New Jersey Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-3).
"Small water supplier" means a supplier of water that regularly serves not more than 3,300 customer connections in the State.
"Supplier of water" means the same as that term is defined in section 3 of the "Safe Drinking Water Act," P.L.1977, c.224 (C.58:12A-3).
2. This act shall take effect immediately.
STATEMENT
This bill would provide that, subject to the availability of federal funds provided or made accessible to the State from the federal "Coronavirus State Fiscal Recovery Fund," established pursuant to the federal "American Rescue Plan Act of 2021," Pub.L.117-2, or any other federal funds provided or made accessible to the State in response to the coronavirus disease 2019 (COVID-19) pandemic, $1.3 billion from such federal funds are to be made available to the Department of Environmental Protection (DEP).
The bill specifies that the funds made available to the DEP, pursuant to the bill, are to be reserved by the DEP to provide financial support, in conjunction with financing from the New Jersey Infrastructure Bank (NJIB) and pursuant to the New Jersey Environmental Infrastructure Financing Program (NJEIFP), for lead service line replacement projects undertaken by suppliers of water in the State. The DEP would be authorized to use up to one percent of the funds to defray administrative expenses incurred in the implementation of the bill's provisions.
The bill authorizes the DEP to transfer, to the NJIB, the uncommitted balance of funds made available to the DEP pursuant to the bill. The NJIB would be required to use the transferred funds to provide financial support, in conjunction with the DEP and pursuant to the NJEIFP, for lead service line replacement projects undertaken by suppliers of water in the State. The NJIB would be authorized to use up to one percent of the transferred funds to defray administrative expenses incurred in the implementation of the bill's provisions.
The use of federal funds for lead service line replacement projects, as provided by the bill, would be conditioned upon the upfront provision of matching funds for each lead service line replacement project by the public water utility or other supplier of water undertaking the project, except when the project is being undertaken by a small water supplier, in which case, the small water supplier will not be required to provide upfront matching funds, but may be required to commit to provide matching funds at some future date, as agreed to by the DEP in consultation with the NJIB. A "small water supplier" is defined, consistent with federal law, to mean a supplier of water that serves not more than 3,300 customer connections in the State. The bill would authorize the NJIB to facilitate the provision of matching funds by making loans to project sponsors for lead service line replacement projects undertaken by suppliers of water in the State. The DEP, in consultation with the NJIB, would be required to determine the amount of matching funds to be provided by each supplier of water. When determining the amount, and the timeframe for provision, of matching funds by a small water supplier, the DEP would be required to consider the financial reserves held by the small water supplier and any other factors that would enable, or negate the ability of, the small water supplier to provide matching funds for the project.
The department, in consultation with the NJIB, would be required to establish the size of each financial award that is made available to a supplier of water using federal funds made available under the bill, as well as the eligibility of suppliers of water for such financial support. The use of federal funds made available pursuant to the bill, the establishment of eligibility standards for the financial awards being made with those federal funds, and the provision of loans to project sponsors would each need to be done in accordance with the "New Jersey Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-1 et seq.), and any other applicable laws or regulations.
