Bill Text: NJ S2498 | 2020-2021 | Regular Session | Chaptered


Bill Title: Authorizes NJ Infrastructure Bank to expend certain sums to make loans for environmental infrastructure projects for FY2021.

Spectrum: Moderate Partisan Bill (Republican 28-9)

Status: (Passed) 2020-07-01 - Approved P.L.2020, c.48. [S2498 Detail]

Download: New_Jersey-2020-S2498-Chaptered.html

Approp.

 


P.L. 2020, CHAPTER 48, approved July 1, 2020

Senate, No. 2498

 

 


An Act authorizing the expenditure of funds by the New Jersey Infrastructure Bank for the purpose of making loans to eligible project sponsors to finance a portion of the cost of construction of environmental infrastructure projects, and making an appropriation. 

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

      1.   a.     The New Jersey Infrastructure Bank, established pursuant to P.L.1985, c.334 (C.58:11B‑1 et seq.) (hereinafter referred to as "the trust"), is authorized to expend the aggregate sum of up to $1.168 billion and any uncommitted balance of the aggregate expenditures authorized pursuant to section 1 of P.L.2000, c.93, section 1 of P.L.2001, c.224, section 1 of P.L.2002, c.71, section 1 of P.L.2003, c.159, section 1 of P.L.2004, c.110, section 1 of P.L.2005, c.197, section 1 of P.L.2006, c.67, section 1 of P.L.2007, c.140, section 1 of P.L.2008, c.67, section 1 of P.L.2009, c.101, section 1 of P.L.2010, c.62, section 1 of P.L.2011, c.95, section 1 of P.L.2012, c.38, section 1 of P.L.2013, c.94, section 1 of P.L.2014, c.26, section 1 of P.L.2015, c.107, section 1 of P.L.2016, c.31 as amended by P.L.2017, c.13, section 1 of P.L.2017, c.142 as amended by P.L.2017, c.327, P.L.2018, c.84 as amended by P.L.2019, c.30, and section 1 of P.L.2019, c.192 as amended by P.L.2019, c.515, for the purpose of making 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 all or a portion of the cost of construction of environmental infrastructure projects listed in sections 2 and 4 of this act.

      b.   The trust is authorized to increase the aggregate sums specified in subsection a. of this section by:

      (1)  the amounts of capitalized interest and the bond issuance expenses as provided in subsection b. of section 7 of this act;

      (2)  the amounts of reserve capacity expenses and debt service reserve fund requirements as provided in subsection c. of section 7 of this act;

      (3)  the interest earned on amounts deposited for project costs pending their distribution to project sponsors as provided in subsection d. of section 7 of this act;

      (4)  the amounts of the loan origination fee as provided in subsection e. of section 7 of this act; and

      (5)  the amount appropriated to the Department of Environmental Protection for the purpose of making zero interest and principal forgiveness loans pursuant to section 3 of P.L.    , c.    (pending before the Legislature as Senate Bill No. 2499 of 2020 and Assembly Bill No.   of 2020) in connection with the project costs of a particular project sponsor, to the extent the priority ranking or an insufficiency of funding prevent the department from meeting program demand as provided in subsection f. of section 7 of this act.

      c.   (1)  Of the sums made available to the trust from the "Water Supply Trust Fund" established pursuant to subsection a. of section 15 of the "Water Supply Bond Act of 1981" (P.L.1981, c.261), pursuant to P.L.1997, c.223, the trust is authorized to transfer such amounts to the Department of Environmental Protection as needed for drinking water project loans 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"), under terms and conditions established by the Commissioner of Environmental Protection and trust, and approved by the State Treasurer, which loans shall be jointly administered by the trust and department.

      (2)  Of the sums appropriated to the trust from the "Wastewater Treatment Trust Fund" established pursuant to section 15 of the "Wastewater Treatment Bond Act of 1985," (P.L.1985, c.329), pursuant to P.L.1987, c.198, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund established pursuant to section 1 of P.L.2009, c.77 for the purposes of issuing loans or providing the State match as required for the award of capitalization grants made available to the State for clean water projects 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").

      (3)  Of the sums appropriated to the trust from the "1992 Wastewater Treatment Trust 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), pursuant to P.L.1996, c.86, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund for the purpose of providing the State match as required for the award of capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

      (4)  Of the sums appropriated to the trust from the "Stormwater Management and Combined Sewer Overflow Abatement Fund" created pursuant to section 14 of the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989," P.L.1989, c.181, pursuant to P.L.1998, c.87, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund for the purpose of providing the State match as required for the award of capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

      (5)  Of the sums appropriated to the trust from the "2003 Water Resources and Wastewater Treatment Trust Fund" established pursuant to subsection b. 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), pursuant to P.L.2004, c.110, the trust is authorized to transfer such amounts as needed to the Clean Water State Revolving Fund for the purpose of providing the State match as required for the award of capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

      (6)  Of the sums appropriated to the trust from repayments of loans deposited in any account, including the "Clean Water State Revolving Fund," "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund" or the Drinking Water State Revolving Fund, as appropriate, pursuant to sections 11 and 12 of P.L.1995, c.219, sections 11 and 12 of P.L.1996, c.85, sections 11 and 12 of P.L.1997, c.221, sections 12 and 13 of P.L.1998, c.84, section 11 of P.L.1999, c.174, section 11 of P.L.2000, c.92, section 11 of P.L.2001, c.222, section 11 of P.L.2002, c.70, section 11 of P.L.2003, c.158, section 11 of P.L.2004, c.109, section 11 of P.L.2005, c.196, section 11 of P.L.2006, c.68, section 10 of P.L.2007, c.140, section 10 of P.L.2008, c.67, section 10 of P.L.2009, c.101, section 10 of P.L.2010, c.62, section 10 of P.L.2011, c.95, section 10 of P.L.2012, c.38, section 10 of P.L.2013, c.94, section 10 of P.L.2014, c.26, section 10 of P.L.2015, c.107, section 10 of P.L.2016, c.31, section 10 of P.L.2017, c.142 as amended by section 10 of P.L.2017, c.327, section 10 of P.L.2018, c.84 as amended by P.L.2019, c.30, section 10 of P.L.2019, c.192 as amended by section 10 of P.L.2019, c.515, and section 10 of P.L.    , c.   (pending before the Legislature as this bill) 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 trust shall transfer to the respective fund of origin the uncommitted balance of all such moneys no longer utilized by the trust for such purposes.

      d.   For the purposes of this act:

      (1)  "capitalized interest" means the amount equal to interest paid on trust bonds which is funded with trust bond proceeds and the earnings thereon;

      (2)  "debt service reserve fund expenses" means the debt service reserve fund costs associated with reserve capacity expenses, water supply projects for which the project sponsors are public water utilities as provided in section 9 of P.L.1985, c.334 (C.58:11B-9), other drinking water projects not eligible for, or interested in, State or federal debt service reserve funds pursuant to the "Water Supply Bond Act of 1981," P.L.1981, c.261 as amended and supplemented by P.L.1997, c.223, and any clean water projects not eligible for, or interested in, State or federal debt service reserve funds from the Clean Water State Revolving Fund;

      (3)  "issuance expenses" means any costs related to the issuance of trust bonds and includes, but is not limited to, the costs of financial document printing, bond insurance premiums or other credit enhancement, underwriters' discount, verification of financial calculations, the services of bond rating agencies and trustees, the employment of accountants, attorneys, financial advisors, loan servicing agents, registrars, and paying agents.

      (4)  "loan origination fee" means the fee charged by the Department of Environmental Protection and financed under the trust loan to pay a portion of the costs incurred by the department in the implementation of the New Jersey Environmental Infrastructure Financing Program; and

      (5)  "reserve capacity expenses" means those project costs for reserve capacity not eligible for loans under rules and regulations governing zero interest loans adopted by the Commissioner of Environmental Protection pursuant to section 4 of P.L.1985, c.329 but which are eligible for loans from the trust in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27).

      e.   The trust is authorized to increase the loan amount in the future to compensate for a refunding of the issue, provided adequate savings are achieved, for the loans issued 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 as amended by P.L.2017, c.13, P.L.2017, c.142 as amended by P.L.2017, c.327, P.L.2018, c.84 as amended by P.L.2019, c.30, P.L.2019, c.192 as amended by P.L.2019, c.515, and P.L.    , c.   (pending before the Legislature as this bill).

 

     2.    a.   (1)   The New Jersey Infrastructure Bank 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 clean water environmental infrastructure projects:

 

Project Sponsor

Project Number

Estimated Allowable Trust Loan Amount

Estimated Total Loan Amount

Elizabeth City

S340942-19R

$206,250

$275,000

Ocean Twp. SA

S340750-14R

$750,000

$1,000,000

Paterson City

S340850-03-1

$1,800,000

$2,400,000

Rockaway Valley RSA

S340821-06-1

$581,250

$775,000

Somerville Borough

S342013-01-1

$1,387,500

$1,850,000

Total Projects: 5

 

$4,725,000

$6,300,000

 

     (2)   A loan authorized by this subsection shall be made for the difference between the allowable loan amount required by the project based upon final building costs pursuant to subsection a. of section 7 of this act and the loan amount certified by the vice chairperson or secretary of the trust in State fiscal years 2008, 2019, and 2020 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27).  A loan authorized by this subsection shall be made to or on behalf of the project sponsor listed, up to the individual amount indicated and in the priority stated, to the extent sufficient funds are available, except if a project fails to meet the requirements of section 6 of this act.

     (3)   The loans for projects authorized by this subsection shall have priority over the environmental infrastructure projects listed in subsection a. of section 4 of this act.

      b.   (1)  The trust 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 Trust Loan Amount

Estimated Total Loan Amount

Newark City

0714001-016R

$1,275,000

$1,700,000

North Jersey District Water Supply Comm.  

1613001-025R

$19,125,000

$25,500,000

Total Projects: 2

$20,400,000

$27,200,000

 

     (2)   A loan authorized by this subsection shall be made for the difference between the allowable loan amount required by the project based upon final building costs pursuant to subsection a. of section 7 of this act and the loan amount certified by the vice chairperson or secretary of the trust in State fiscal year 2020 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B-27).  A loan authorized by this subsection shall be made to or on behalf of the project sponsor listed, up to the individual amount indicated and in the priority stated, to the extent sufficient funds are available, except if a project fails to meet the requirements of section 6 of this act.

     (3)   The loans for projects authorized by this subsection shall have priority over environmental infrastructure projects listed in subsection b. of section 4 of this act.

     c.     The trust is authorized to adjust the allowable trust loan amount for the projects authorized in this section to between zero percent and 100 percent of the total allowable loan amount. 

 

     3.    a.   The New Jersey Infrastructure Bank is authorized to make loans to or on behalf of the project sponsors for the clean water projects listed in subsection a. of section 2 and subsection a. of section 4 of this act up to the individual amounts indicated and in the priority stated, except that any such amount may be reduced by the trust pursuant to subsection a. of section 7 of this act, or if a project fails to meet the requirements of section 6 of this act.  The trust is authorized to increase any such amount pursuant to subsections b., c., d., e. or f. of section 7 or section 8 of this act.

     b.    The trust is authorized to make loans to project sponsors for the drinking water projects listed in subsection b. of section 4 of this act up to the individual amounts indicated and in the priority stated, except that any such amount may be reduced by the trust pursuant to subsection a. of section 7 of this act, or if a project fails to meet the requirements of section 6 of this act. The trust is authorized to increase any such amount pursuant to subsections b., c., d., e. or f. of section 7 or section 8 of this act.

     c.     The trust is authorized to make loans to local government units for clean water projects partially funded from the "Pinelands Infrastructure Trust Fund" established pursuant to section 14 of P.L.1985, c.302 for the balance of allowable project costs up to the individual amounts indicated, provided that any such amount may be reduced by the trust pursuant to subsection a. of section 7 of this act, or if a project fails to meet the requirements of section 6 of this act.

     The following local government units are eligible for funding from the "Pinelands Infrastructure Trust Fund" and for loans from the trust in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B-27) for the following clean water projects:

 

Project Sponsor

Project Number

Estimated Total Loan Amount

Pemberton Twp.

Pinelands 1

$2,929,000

Manchester Twp./

Jackson MUA

Pinelands 2

$7,192,035

Galloway Twp.

Pinelands 4

$3,493,440

Winslow Twp.

Pinelands 5

$1,728,940

Total Pinelands Projects: 4

$15,343,415

 

      4.   a.   The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2021 Clean Water Project Eligibility List":

 

Project Sponsor

Project Number

Estimated Allowable Trust Loan Amount

Estimated Total Loan Amount

Camden County MUA

S340640-17

$2,625,000

$3,500,000

Camden County MUA

S340640-24

$4,875,000

$6,500,000

Rahway Valley SA

S340547-14

$7,125,000

$9,500,000

Rahway Valley SA

S340547-15

$1,941,389

$2,588,518

Camden County MUA

S340640-22

$2,625,000

$3,500,000

Camden County MUA

S340640-23

$4,200,000

$5,600,000

Newark City

S340815-28

$4,500,000

$6,000,000

Camden County MUA

S340640-16

$9,975,000

$13,300,000

Newark City

S340815-24

$15,750,000

$21,000,000

Camden City

S340366-15

$9,997,500

$13,330,000

Camden County MUA

S340640-18

$63,022,500

$84,030,000

North Bergen MUA

S340652-14

$17,250,000

$23,000,000

Jersey City MUA

S340928-15

$30,750,000

$41,000,000

Jersey City MUA

S340928-20

$5,400,000

$7,200,000

Jersey City MUA

S340928-21

$9,750,000

$13,000,000

Jersey City MUA

S340928-28

$2,025,000

$2,700,000

Jersey City MUA

S340928-31

$8,294,700

$11,059,600

Jersey City MUA

S340928-34

$885,885

$1,181,180

Elizabeth City

S340942-17

$4,875,000

$6,500,000

Camden County MUA

S340640-13

$9,600,000

$12,800,000

Long Branch SA

S340336-08

$1,305,525

$1,740,700

Ocean County UA

S340372-62

$3,225,000

$4,300,000

Ocean County UA

S340372-59

$5,715,000

$7,620,000

Hoboken City

S340635-07

$3,750,000

$5,000,000

Hoboken City

S340635-09

$375,000

$500,000

Mount Laurel Twp. MUA

S340943-06

$6,000,000

$8,000,000

Jersey City

S340928-30

$2,033,250

$2,711,000

North Hudson SA

S340952-30

$17,400,000

$23,200,000

North Hudson SA

S345190-01

$4,500,000

$6,000,000

Riverside SA

S340490-01

$630,000

$840,000

Perth Amboy City

S340435-11

$4,844,513

$6,459,351

Perth Amboy City

S340435-14

$1,956,000

$2,608,000

Perth Amboy City

S345220-01

$750,000

$1,000,000

Hackensack City

S340923-14

$6,000,000

$8,000,000

Somerset Raritan Valley SA

S340801-09

$4,875,000

$6,500,000

Passaic Valley SC

S340689-48

$675,308

$900,410

Passaic Valley SC

S340689-38

$15,750,000

$21,000,000

Passaic Valley SC

S345200-01

$6,000,000

$8,000,000

Passaic Valley SC

S345200-02

$1,500,000

$2,000,000

Passaic Valley SC

S340689-30

$2,775,000

$3,700,000

Passaic Valley SC

S340689-32

$7,500,000

$10,000,000

Northwest Bergen County UA

S340700-16

$3,675,000

$4,900,000

Bergen County UA

S340386-21

$5,700,000

$7,600,000

Linden Roselle SA

S340299-09

$1,575,000

$2,100,000

Linden Roselle SA

S340299-08

$12,750,000

$17,000,000

Lambertville MUA

S340882-09

$1,350,000

$1,800,000

Raritan Twp. MUA

S340485-12

$3,675,000

$4,900,000

Clinton Town

S340924-08

$3,075,000

$4,100,000

Gloucester County UA

S340902-15

$8,625,000

$11,500,000

Stafford Twp.

S344100-03

$4,200,000

$5,600,000

Allentown Borough

S340567-05

$3,825,000

$5,100,000

JMEUC - East Orange City

S340686-09a

$465,378

$620,504

JMEUC - Elizabeth City

S340686-09b

$4,879,407

$6,505,876

JMEUC - Hillside Twp.

S340686-09c

$681,323

$908,430

JMEUC - Irvington Twp.

S340686-09d

$1,689,260

$2,252,347

JMEUC - Newark City

S340686-09e

$1,022,282

$1,363,042

JMEUC - South Orange Village Twp.

S340686-09f

$488,105

$650,806

JMEUC - Summit City

S340686-09g

$889,742

$1,186,322

JMEUC - Union Twp.

S340686-09h

$1,837,001

$2,449,335

JMEUC - West Orange Twp.

S340686-09i

$1,189,072

$1,585,429

Howell Twp.

S344040-02

$11,010,000

$14,680,000

Ocean County

S344080-10

$187,500

$250,000

Ocean County

S344080-11

$262,500

$350,000

Rockaway Valley RSA

S340821-07

$6,150,000

$8,200,000

Ocean County

S344080-09

$975,000

$1,300,000

Western Monmouth UA

S340128-06

$9,825,000

$13,100,000

Chatham (MCJM) Borough

S340715-07A

$2,250,000

$3,000,000

Madison (MCJM) Borough

S340715-07B

$3,750,000

$5,000,000

Point Pleasant Beach Borough

S344190-02

$2,362,500

$3,150,000

Long Branch SA

S340336-09

$4,200,000

$5,600,000

Manasquan River RSA

S340911-03

$495,000

$660,000

Delran Twp.

S340794-10

$1,575,000

$2,100,000

Middlesex County UA

S340699-14

$8,250,000

$11,000,000

Monmouth County Bayshore Outfall Authority

S340325-04

$2,625,000

$3,500,000

Ocean County UA

S340372-60

$652,500

$870,000

Brick Twp. MUA

S340448-11

$4,275,000

$5,700,000

Northwest Bergen County UA

S340700-15

$5,250,000

$7,000,000

Northwest Bergen County UA

S340700-18

$1,500,000

$2,000,000

Northwest Bergen County UA

S340700-19

$6,099,338

$8,132,450

Western Monmouth UA

S340128-05

$5,887,500

$7,850,000

Old Bridge MUA

S340945-14

$2,700,000

$3,600,000

Franklin Twp. SA

S340839-08

$3,150,000

$4,200,000

Evesham MUA

S340838-07

$1,200,000

$1,600,000

Winslow Twp.

S340895-10

$1,275,000

$1,700,000

Ocean Twp. SA

S340750-12

$3,375,000

$4,500,000

Vernon Twp.

S340745-03

$82,500

$110,000

Scotch Plains Twp.

S340512-01

$2,025,000

$2,700,000

West Deptford Twp.

S340947-05

$1,061,250

$1,415,000

Princeton

S340656-11

$2,944,259

$3,925,678

Warren Twp. SA

S340964-05

$8,100,000

$10,800,000

Middlesex Borough

S340698-02

$1,926,563

$2,568,750

Red Bank Borough

S340528-01

$1,125,000

$1,500,000

North Haledon Borough

S340229-02

$75,000

$100,000

Glen Ridge Borough

S340861-03

$334,387

$445,849

Glen Ridge Borough

S340861-04

$1,725,000

$2,300,000

Emerson Borough

S340497-01

$75,000

$100,000

Bradley Beach Borough

S340472-01

$2,025,000

$2,700,000

Lambertville MUA

S340882-10

$525,000

$700,000

Hamburg Borough

S340149-03

$75,000

$100,000

Long Beach Twp.

S340023-07

$3,450,000

$4,600,000

Long Beach Twp.

S340023-08

$90,000

$120,000

Passaic Valley SC

S340689-45

$7,657,577

$10,210,102

Lakewood Twp. MUA

S340465-02

$3,240,000

$4,320,000

Cumberland County

S340438-03

$12,750,000

$17,000,000

Cranford Twp.

S340858-04

$9,000,000

$12,000,000

Gloucester Twp.

S340364-11

$712,500

$950,000

Gloucester Twp.

S340364-15

$1,087,500

$1,450,000

Spotswood Borough

S340510-01

$4,070,250

$5,427,000

Paulsboro Borough

S340164-01

$2,062,500

$2,750,000

North Hudson SA

S340952-36

$675,000

$900,000

Clinton Town

S340924-07

$600,000

$800,000

Sussex County MUA

S342008-04

$5,552,370

$7,403,160

Kearny Town

S340259-12

$16,125,000

$21,500,000

Burlington City

S340140-02

$1,950,000

$2,600,000

Willingboro MUA

S340132-11

$7,500,000

$10,000,000

Lakewood Twp. MUA

S340465-03

$1,312,500

$1,750,000

Bloomfield Twp.

S340516-01

$5,423,228

$7,230,970

Brick Twp. MUA

S340448-14

$1,500,000

$2,000,000

North Brunswick Twp.

S340888-02

$6,000,000

$8,000,000

Manchester Twp.

S340650-08

$2,250,000

$3,000,000

Point Pleasant Beach Borough

S340479-04

$1,447,500

$1,930,000

Allentown Borough

S340567-06

$498,704

$664,938

Ship Bottom Borough

S340311-04

$2,062,500

$2,750,000

Total Projects: 123

$583,016,066

$777,354,747

 

      b.   The following environmental infrastructure projects shall be known and may be cited as the "State Fiscal Year 2021 Drinking Water Project Eligibility List":

 

Project Sponsor

Project Number

Estimated Allowable Trust Loan Amount

Estimated Total Loan Amount

Newark City

0714001-020

$13,125,000

$17,500,000

Newark City

0714001-019

$9,375,000

$12,500,000

Trenton City

1111001-011

$15,255,000

$20,340,000

Bloomfield Twp.

0702001-003

$823,796

$1,098,395

NJ American Water Co., Inc.

1345001-017

$7,575,000

$10,100,000

Burlington City

0305001-002

$2,700,000

$3,600,000

Moorestown Twp.

0322001-001

$18,468,750

$24,625,000

Brick Twp. MUA

1506001-011

$15,667,500

$20,890,000

East Greenwich

0803001-004

$1,950,000

$2,600,000

Jersey City MUA

0906001-017

$1,305,180

$1,740,240

Newark City

0714001-018

$3,862,500

$5,150,000

Jersey City MUA

0906001-019

$5,025,000

$6,700,000

NJ American Water Co., Inc.

1345001-021

$19,758,750

$26,345,000

Manchester Twp.

1518005-002

$4,125,000

$5,500,000

Paulsboro Borough

0814001-003

$2,100,000

$2,800,000

Jersey City MUA

0906001-009

$2,077,500

$2,770,000

Middlesex Water Co.

1225001-028

$8,400,000

$11,200,000

Hoboken City

0905001-002

$6,000,000

$8,000,000

Wall Twp.

1352003-001

$1,350,000

$1,800,000

Wall Twp.

1352003-002

$2,775,000

$3,700,000

Clinton Town

1005001-010

$1,086,140

$1,448,187

Clinton Town

1005001-011

$949,355

$1,265,807

Spotswood Borough

1224001-001

$2,582,936

$3,443,914

Glen Ridge Borough

0708001-008

$1,929,908

$2,573,210

Jersey City MUA

0906001-020

$4,965,000

$6,620,000

Jersey City MUA

0906001-021

$8,250,000

$11,000,000

Jackson Twp. MUA

1511001-013

$15,000,000

$20,000,000

Berkeley Twp. MUA

1505004-009

$1,875,000

$2,500,000

Jersey City MUA

0906001-015

$2,691,950

$3,589,266

Hoboken City

0905001-001

$6,375,000

$8,500,000

Middlesex Water Co.

1225001-025

$42,750,000

$57,000,000

Evesham MUA

0313001-001

$1,950,000

$2,600,000

Brick Twp. MUA

1506001-009

$4,446,570

$5,928,760

Clinton Town

1005001-012

$2,625,000

$3,500,000

Milltown Borough

1212001-005

$1,350,000

$1,800,000

NJ American Water Co., Inc.

2004002-013

$12,000,000

$16,000,000

Jackson Twp. MUA

1511001-012

$8,250,000

$11,000,000

Hampton Borough

1013001-001

$1,350,000

$1,800,000

Little Egg Harbor MUA

1516001-003

$4,143,750

$5,525,000

National Park Borough

0812001-004

$1,275,000

$1,700,000

Hopatcong Borough

1912001-004

$75,000

$100,000

Hamburg Borough

1909001-001

$63,750

$85,000

Highbridge Borough

1014001-001

$75,000

$100,000

Hardyston MUA

1911006-003

$75,000

$100,000

Total Projects: 44

$267,853,335

$357,137,779

 

      c.   The trust is authorized to adjust the allowable trust loan amount for projects authorized in this section to between zero percent and 100 percent of the total allowable loan amount, and, if the trust loan amount is adjusted to 100 percent of the total allowable loan amount, the loan shall be provided pursuant to the terms and conditions of the financing program year in which the trust issued an interim financing program loan for the project or, in the absence of an interim financing program loan, the terms and conditions of the State fiscal year 2021 financing program.

 

     5.    In accordance with and subject to the provisions of sections 5, 6, and 23 of P.L.1985, c.334 (C.58:11B‑5, 58:11B‑6, and 58:11B‑23), and as set forth in the financial plan required pursuant to section 21 of P.L.1985, c.334 (C.58:11B‑21), or the financial plan required pursuant to section 25 of P.L.1997, c.224 (C.58:11B-21.1), any proceeds from bonds issued by the trust to make loans for priority environmental infrastructure projects listed in sections 2 and 4 of this act which are not expended for that purpose may be applied for the payment of all or any part of the principal of, or interest and premium on, the trust bonds whether due at stated maturity, the interest payment dates, or earlier upon redemption.  A portion of the proceeds from bonds issued by the trust to make loans for priority environmental infrastructure projects pursuant to this act may be applied for the payment of capitalized interest and for the payment of any issuance expenses; for the payment of reserve capacity expenses; for the payment of debt service reserve fund expenses for the payment of the loan origination fees; and for the payment of increased costs, as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27).

 

     6.    Any loan made by the New Jersey Infrastructure Bank pursuant to this act shall be subject to the following requirements:

     a.     The chairperson or secretary of the trust has certified that the project is in compliance with the provisions of P.L.1977, c.224, P.L.1985, c.334, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.224, P.L.1997, c.225, P.L.1999, c.175 or P.L.2003, c.162, and any amendatory and supplementary acts thereto, and any rules and regulations adopted pursuant thereto, as applicable. In making this certification, the chairperson or secretary may conclusively rely on the project review conducted by the Department of Environmental Protection without any independent review thereof by the trust;

     b.    The loan shall be conditioned upon inclusion of the project on a project eligibility list approved pursuant to section 20 of P.L.1985, c.334 (C.58:11B-20) or section 24 of P.L.1997, c.224 (C.58:11B-20.1);

     c.     The loan shall be repaid within a period not to exceed 30 years, or 45 years for combined sewer overflow abatement projects, of the making of the loan;

     d.    The loan, including any portion thereof made by the trust pursuant to subsection f. of section 7 of this act, shall not exceed the allowable project cost of the environmental infrastructure facility, exclusive of capitalized interest, administrative expenses associated with federal funding programs, if applicable, and issuance expenses as provided in subsection b. of section 7 of this act, reserve capacity expenses and the debt service reserve fund expenses as provided in subsection c. of section 7 of this act, interest earned on project costs as provided in subsection d. of section 7 of this act, the amounts of the loan origination fee as provided in subsection e. of section 7 of this act, refunding increases as provided in section 8 of this act and increased costs as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27);

     e.     The loan shall bear interest, exclusive of any late charges or 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, at or below the interest rate paid by the trust on the bonds issued to make or refund the loans authorized by this act, adjusted for underwriting discount and original issue discount or premium, in accordance with the terms and conditions set forth in the financial plan required pursuant to section 21 of P.L.1985, c.334 (C.58:11B‑21) or the financial plan required pursuant to section 25 of P.L.1997, c.224 (C.58:11B-21.1); and

     f.     The loan shall be subject to all other terms and conditions as the trust shall determine to be consistent with the provisions of P.L.1985, c.334 (C.58:11B‑1 et seq.) and any rules and regulations adopted pursuant thereto, and with the financial plan required by section 21 of P.L.1985, c.334 (C.58:11B‑21) or the financial plan required pursuant to section 25 of P.L.1997, c.224 (C.58:11B-21.1).

     The eligibility lists and authorization for the making of loans pursuant to this act shall expire on July 1, 2021, and any project sponsor which has not executed and delivered a loan agreement with the trust for a loan authorized in this act shall no longer be entitled to that loan.

 

      7.   a.     The New Jersey Infrastructure Bank is authorized to reduce the individual amount of loan funds made available to or on behalf of project sponsors pursuant to sections 2 and 4 of this act based upon final building costs defined in and determined in accordance with rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27) or rules and regulations adopted by the Commissioner of Environmental Protection pursuant to section 4 of P.L.1985, c.329, section 11 of P.L.1977, c.224 (C.58:12A-11) or section 5 of P.L.1981, c.261.  The trust is authorized to use any such reduction in the loan amount made available to a project sponsor to cover that project sponsor's increased costs due to differing site conditions or other allowable expenses as defined and determined in accordance with the rules and regulations adopted by the trust pursuant to section 27 of P.L.1985, c.334 (C.58:11B‑27).

      b.   The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the amount of capitalized interest and issuance expenses allocable to each loan made by the trust pursuant to this act, provided that the increase for issuance expenses, excluding underwriters' discount, original issue discount or premiums, municipal bond insurance premiums and bond rating agency fees, and administrative expenses associated with federal funding programs, if applicable, shall not exceed 0.4 percent of the principal amount of trust bonds issued to make loans authorized by this act.

      c.   The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the amount of reserve capacity expenses, and by the debt service reserve fund expenses associated with the costs identified in paragraphs (3) and (4) of subsection d. of section 1 of this act.

      d.   The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the interest earned on amounts deposited for project costs pending their distribution to project sponsors.

      e.   The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the loan origination fee.

      f.    The trust is authorized to increase each loan amount authorized in sections 2 and 4 of this act by the amount appropriated to the Department of Environmental Protection for the purpose of making the corresponding zero interest loan pursuant to section 3 of P.L.    , c.    (pending before the Legislature as Senate Bill No. 2499 of 2020 and Assembly Bill No.   of 2020) in connection with the project costs of the project sponsor, to the extent the priority ranking or an insufficiency of funding prevents the department from meeting program demand, and for lead abatement projects ineligible for department loans under the Federal Clean Water Act and Safe Drinking Water Act.

 

     8.    The New Jersey Infrastructure Bank is authorized to increase the individual amount of loan funds made available to project sponsors by the trust pursuant to P.L.1989, c.190, P.L.1990, c.97, P.L.1991, c.324, P.L.1992, c.37, P.L.1993, c.192, P.L.1994, c.105, 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 as amended by P.L.2017, c.13, P.L.2017, c.142 as amended by P.L.2017, c.327, P.L.2018, c.84 as amended by P.L.2019, c.30, P.L.2019, c.192 as amended by P.L.2019, c.515, or P.L.    , c.   (pending before the Legislature as this bill) provided that adequate savings are achieved, to compensate for a refunding of trust bonds issued to make loans authorized by the aforementioned acts.

 

     9.    The expenditure of funds authorized pursuant to this act is subject to the provisions of P.L.1977, c.224 (C.58:12A-1 et al.), P.L.1985, c.329, P.L.1985, c.334 (C.58:11B‑1 et seq.) as amended and supplemented by P.L.1997, c.224, P.L.1992, c.88, P.L.1989, c.181, P.L.1997, c.223, P.L.1997, c.225, P.L.1999, c.175, or P.L.2003, c.162, the rules and regulations adopted pursuant thereto, and the Federal Safe Drinking Water Act, as appropriate.

 

      10.   a.   There is appropriated to the New Jersey Infrastructure Bank, as needed to make short-term or temporary loans, from funds deposited in any account, including the "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "2003 Water Resources and Wastewater Treatment Trust Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund," the "Clean Water State Revolving Fund," or the "Drinking Water State Revolving Fund," as appropriate, and from any net earnings received from the investment and reinvestment of such deposits, the sum of up to $600,000,000, to the extent funds are available, consisting of:

      (1)  The uncommitted balance currently on deposit as of July 1, 2020 in the special fund (hereinafter referred to as the "Interim Environmental Financing Program Fund") created and established by the trust for the short-term or temporary loan financing or refinancing program (hereinafter referred to as the "Interim Environmental Financing Program") authorized pursuant to subsection d. of section 9 of P.L.1985, c.334 (C.58:11B-9), which balance previously had been appropriated to the trust for such purpose pursuant to section 11 of P.L.2019, c.192, less any Interim Environmental Financing Program Fund amounts appropriated to the Department of Environmental Protection to supplement the sums appropriated from the Clean Water State Revolving Fund for clean water projects pursuant to the Federal Clean Water Act and from the Drinking Water State Revolving Fund for drinking water projects pursuant to the Federal Safe Drinking Water Act, provided that at no time shall funds committed pursuant to this section exceed funds required by the Department of Environmental Protection to meet long-term obligations; and

      (2)  such other amounts to be deposited in the Interim Environmental Financing Program Fund, in an aggregate amount that does not exceed at any time, the amount appropriated, provided that the amount so reappropriated and appropriated to the trust for deposit in the Interim Environmental Financing Program Fund shall be utilized by the trust to make short-term or temporary loans pursuant to the Interim Environmental Financing Program to any one or more of the project sponsors, for the respective projects thereof, identified in the interim environmental financing project priority list (hereinafter referred to as the "Interim Environmental Financing Program Project Priority List") in the form provided to the Legislature by the Commissioner of Environmental Protection.

      b.   The Interim Environmental Financing Program Project Priority List shall be submitted to the Secretary of the Senate and the Clerk of the General Assembly at least once each fiscal year.  The Secretary of the Senate and the Clerk of the General Assembly shall cause the date of submission to be entered upon the Senate Journal and the Minutes of the General Assembly, respectively. Any environmental infrastructure project or the project sponsor thereof not identified in the Interim Environmental Financing Program Project Priority List shall not be eligible for a short-term or temporary loan from the Interim Environmental Financing Program Fund.

      c.     The trust may issue market rate interest short-term temporary loans for wastewater treatment and water supply projects on the Interim Environmental Financing Program Project Priority List for the reduction of lead in publicly-owned facilities otherwise ineligible to receive funding for that purpose pursuant to subsection a. of this section.    

 

     11.  a.   There is appropriated to the New Jersey Infrastructure Bank for deposit in the special fund created and established by the trust for the short-term or temporary Disaster Relief Emergency Financing Program loan financing or refinancing program (hereinafter referred to as the "Disaster Relief Emergency Financing Program") authorized pursuant to subsection a. of section 1 of P.L.2013, c.93 (C.58:11B-9.5) such sums as needed consisting of:

     (1)   sums from the "Interim Environmental Financing Program Fund" as needed by the trust to make short-term or temporary loans pursuant to the Disaster Relief Emergency Financing Program to any one or more of the project sponsors, for the respective projects thereof; and

     (2)   such other amounts to be deposited in the Disaster Relief Emergency Financing Program Fund, provided that the amount so appropriated to the trust for deposit in the Disaster Relief Emergency Financing Program Fund shall be utilized by the trust to make short-term or temporary loans pursuant to the Disaster Relief Emergency Financing Program to any one or more of the project sponsors, for the respective projects thereof.  Any projects funded by the Disaster Relief Emergency Financing Program shall be subject to the approval of the Commissioner of Environmental Protection.

     b.    The Disaster Relief Emergency Financing Program Project Priority List shall be submitted to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1) at least once in each fiscal year.  Any environmental infrastructure project or the project sponsor thereof not identified in the Disaster Relief Emergency Financing Program Project Priority List shall not be eligible for a short-term or temporary loan from the Disaster Relief Emergency Financing Program Fund.

 

     12.  Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the trust shall not be required to adopt rules and regulations governing the making of Disaster Relief Emergency Financing Program loans. 

 

     13.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would authorize the New Jersey Infrastructure Bank (NJIB) (formerly the New Jersey Environmental Infrastructure Trust) to expend up to $1.168 billion and any unexpended balances from previous authorizations to provide loans with an interest rate at or below the prevailing market rate to project sponsors (primarily local governments, public authorities, or public water utilities) for a portion of the total costs of 174 eligible environmental infrastructure projects.  The eligible projects are those included in the "Storm Sandy and State Fiscal Year 2021 Clean Water Project Priority List" and the "State Fiscal Year 2021 Drinking Water Project Priority List," as well as five clean water projects and two drinking water projects that received a loan in the past and which now require a supplemental loan in order to meet actual costs.

     In addition to the use of prior unused allocations, this bill also permits the NJIB to use any loan repayments received to date, and the amounts for capitalized interest, bond issuance expenses and related amounts, to fund the State Fiscal Year 2021 New Jersey Environmental Infrastructure Financing Program (NJEIFP).

     This bill would also provide loan financing from the NJIB for the balance of the allowable project costs of four eligible clean water projects partially funded from the "Pinelands Infrastructure Trust Fund" established pursuant to the "Pinelands Infrastructure Trust Bond Act of 1985", P.L.1985, c. 302. 

     Since its creation in 1985, the NJIB, in partnership with the Department of Environmental Protection, has provided low-cost NJEIFP loans for the construction of environmental infrastructure projects that enhance and protect ground and surface water resources, ensure the safety of drinking water supplies, and make possible responsible and sustainable economic development. Since 1985, NJEIFP loans to local government units and some private water companies have totaled more than $7.13 billion of which the NJIB has provided more than $2.9 billion in loans to finance wastewater systems, combined sewer overflow abatement, nonpoint source pollution control, and safe drinking water supplies generating more than 130,000 construction projects throughout the State.

 

 

                                

 

     Authorizes NJ Infrastructure Bank to expend certain sums to make loans for environmental infrastructure projects for FY2021.

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