Bill Text: NJ S3185 | 2018-2019 | Regular Session | Introduced


Bill Title: Authorizes NJ Infrastructure Bank to expend additional sums to make loans for environmental infrastructure projects for FY2019.

Spectrum: Strong Partisan Bill (Republican 12-1)

Status: (Introduced) 2018-12-17 - Substituted by A4748 [S3185 Detail]

Download: New_Jersey-2018-S3185-Introduced.html

SENATE, No. 3185

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED OCTOBER 29, 2018

 


 

Sponsored by:

Senator  LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

 

 

 

 

SYNOPSIS

     Authorizes NJ Infrastructure Bank to expend additional sums to make loans for environmental infrastructure projects for FY2019. 

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act authorizing the expenditure of additional 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 amending P.L.2018, c.84. 

 

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

 

     1.    Section 1 of P.L.2018, c.84 is amended to read as follows:

     1.    a.  The New Jersey Infrastructure Bank, established pursuant to P.L.1985, c.334 (C.58:11B‑1 et seq.), is authorized to expend the aggregate sum of up to [$810.6] $822.9 million 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, and section 1 of P.L.2016, c.31 as amended by P.L.2017, c.13, and section 1 of P.L.2017, c.142 as amended by P.L.2017, c.327, 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).

     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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill);

     (2)   the amounts of reserve capacity expenses and debt service reserve fund requirements as provided in subsection c. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill);

     (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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill);

     (4)   the amounts of the loan origination fee as provided in subsection e. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill); 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.2018, c.85, as amended by P.L.     c.   (pending before the Legislature as Senate Bill No.   and Assembly Bill No.   ), in connection with the project costs of a particular project sponsor, to the extent [the priority ranking and] an insufficiency of funding prevents the department from [making the loan] meeting program demand as provided in subsection f. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).

     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 the 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 the 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 the 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 the 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, and section 10 of P.L.2018, c.84 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill):

     (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 and includes, but need not be 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, and any other costs related to the issuance of trust bonds;

     (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, and P.L.2018, c.84, as amended by P.L.     , c.   (pending before the Legislature as this bill).

(cf:  P.L.2018, c.84, s.1)

 

     2.    Section 2 of P.L.2018, c.84 is amended to read as follows:

     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 Allowable Loan Amount

Burlington Township

S340712-14-1

$150,000

$200,000

[Manasquan Borough

S340450-01-1

$1,582,500

$2,110,000

Mendham Township

S340477-01-1

$1,615,500

$2,154,000]

North Hudson SA

S340952-19-1

$525,000

$700,000

Warren Township SA

S340964-02-1

$262,500

$350,000

Total Projects: [5] 3

 

[$4,135,500]

$937,500

[$5,514,000]

$1,250,000

 

     (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 subsection a. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), and the loan amounts certified by the chairman of the trust in State fiscal years 2016 and 2017 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). 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 6 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).

     (3)   The loans authorized in this subsection shall have priority over the environmental infrastructure projects listed in subsection a. of section 4 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).

     b.    The trust is authorized to adjust the allowable trust loan amount for projects authorized in this section to between 25 percent and 75 percent of the total allowable loan amount and such excess amounts to the extent [the priority ranking and] an insufficiency of funding [prevent] prevents the Department of Environmental Protection from [making the loan] meeting program demand as provided in subsection f. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).

(cf:  P.L.2018, c.84, s.2)

     3.    Section 3 of P.L.2018, c.84 is amended to read as follows:

     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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), up to the individual amounts indicated and in the priority stated, except as any such amount may be reduced by the trust pursuant to subsection a. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), or if a project fails to meet the requirements of section 6 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).  The trust is authorized to increase any such amount pursuant to subsection b., c., d., e. or f. of section 7 or section 8 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill)

     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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), up to the individual amounts indicated and in the priority stated, except as any such amount may be reduced by the trust pursuant to subsection a. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), or if a project fails to meet the requirements of section 6 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill). The trust is authorized to increase any such amount pursuant to subsection b., c., d., e. or f. of section 7 or section 8 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).   

 

     4.    Section 4 of P.L.2018, c.84 is amended to read as follows:

     4.    a.  The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2019 Clean Water Project Eligibility List":

 

 

 

 

Project Sponsor

 

 

 

Project Number

 

Estimated Allowable Trust Loan Amount

 

Estimated Total Allowable Loan Amount

Aberdeen Township

S340869-02

$6,750,000

$9,000,000

[Atlantic County UA

S340809-23

$11,040,000

$11,040,000]

Atlantic County UA

S340809-24

$600,000

$800,000

Atlantic County UA

S340809-25

$17,520,000

$17,520,000

[Atlantic County UA

S340809-26

$1,500,000

$1,500,000]

Atlantic County UA

S340809-28

$3,075,000

$4,100,000

[Bayshore RSA

S340697-05

$9,750,000

$13,000,000]

Bayshore RSA

S340697-06

$11,325,000

$15,100,000

Bradley Beach Borough

S340472-01

$2,025,000

$2,700,000

Bradley Beach Borough

S340472-02

$1,942,538

$2,590,050

Burlington City

S340140-01

$1,275,000

$1,700,000

Burlington Township

S340712-16

$720,000

$960,000

Camden City

S340366-16

$1,350,000

$1,800,000

Camden County MUA

S340640-17

$2,625,000

$3,500,000

[Carteret Borough

S340939-09

$11,257,500

$15,010,000]

Cinnaminson SA

S340170-08

$870,000

$1,160,000

Elizabeth City

S340942-19

$5,775,000

$7,700,000

Franklin Township SA

S34-0839-07

$1,470,000

$1,960,000

Glen Ridge

Borough

S340861-03

$334,387

$445,849

Gloucester City

S340958-08

$1,575,000

$2,100,000

Gloucester County Improvement Authority

S342016-03

$10,419,930

$13,893,240

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]

Gloucester Township

S340364-15

$1,087,500

$1,450,000

Hoboken City

S340635-07

$3,750,000

$5,000,000

Howell Township

S344040-02

$11,010,000

$14,680,000

Jersey City

S340928-30

$2,033,250

$2,711,000

Jersey City MUA

S340928-15

$30,750,000

$41,000,000

Jersey City MUA

S340928-19

$5,625,000

$7,500,000

Jersey City MUA

S340928-20

$5,400,000

$7,200,000

Jersey City MUA

S340928-22

$562,500

$750,000

Jersey City MUA

S340928-28

$2,025,000

$2,700,000

Kearny MUA

S340259-07

$4,875,000

$6,500,000

[Little Egg Harbor MUA

S340579-02

$3,187,500

$4,250,000]

Little Egg Harbor Township

S344060-02

$3,187,500

$4,250,000

Manasquan River RSA

S340911-03

$495,000

$660,000

[Mendham Township

S340477-01

$1,875,000

$2,500,000

Millville City

S340921-07

$9,000,000

$12,000,000]

Manchester Township

S340650-08

$2,250,000

$3,000,000

Middlesex Borough

S340698-02

$1,926,563

$2,568,750

Middlesex County UA

S340699-13

$26,406,467

$35,208,623

Montclair Township

S340837-04

$1,275,000

$1,700,000

Montclair Township

S340837-03

$1,275,000

$1,700,000

Newark City

S340815-22

$7,875,000

$10,500,000

North Bergen MUA

S340652-14

$17,250,000

$23,000,000

North Hudson SA

S340952-22

$13,500,000

$18,000,000

North Hudson SA

S340952-23

$2,325,000

$3,100,000

North Hudson SA

S340952-28

$1,275,000

$1,700,000

Northwest Bergen County UA

S340700-13

$3,900,000

$5,200,000

Northwest Bergen County UA

S340700-15

$5,250,000

$7,000,000

Northwest Bergen County UA

S340700-16

$3,288,750

$4,385,000

Northwest Bergen County UA

S340700-18

$1,500,000

$2,000,000

Ocean County

S344080-09

$975,000

$1,300,000

Ocean County

S344080-10

$187,500

$250,000

Ocean County

S344080-11

$262,500

$350,000

Ocean County UA

S340372-58

$3,323,250

$4,431,000

Ocean County UA

S340372-59

$5,217,440

$6,956,586

Ocean Township SA

S340750-13

$412,500

$550,000

Ocean Township SA

S340750-14

$1,875,000

$2,500,000

Ocean Township SA

S340750-12

$3,075,000

$4,100,000

Old Bridge MUA

S340945-14

$2,467,500

$3,290,000

Passaic Valley SC

S340689-25

$6,825,000

$9,100,000

Passaic Valley SC

S340689-30

$2,775,000

$3,700,000

Passaic Valley SC

S340689-31

$3,000,000

$4,000,000

Passaic Valley SC

S340689-32

$7,500,000

$10,000,000

Passaic Valley SC

S340689-34

$2,175,000

$2,900,000

Passaic Valley SC

S340689-38

$15,750,000

$21,000,000

Passaic Valley SC

S340689-39

$3,612,000

$4,816,000

Passaic Valley SC

S345200-02

$1,500,000

$2,000,000

Paulsboro Borough

S340164-01

$2,062,500

$2,750,000

Perth Amboy City

S340435-11

$4,844,513

$6,459,351

Perth Amboy City

S340435-13

$637,500

$850,000

Perth Amboy City

S340435-18

$1,327,500

$1,770,000

Plumsted Township

S340607-03

$20,250,000

$27,000,000

Point Pleasant Beach Borough

S344190-02

$2,250,000

$3,000,000

Rahway Valley SA

S340547-15

$1,941,389

$2,588,518

Rahway Valley SA

S340547-14

$7,125,000

$9,500,000

Raritan Township MUA

S340485-12

$3,262,500

$4,350,000

Riverdale Borough

S340729-02

$217,342

$289,789

Riverside SA

S340490-01

$630,000

$840,000

Rockaway Valley RSA

S340821-06

$6,000,000

$8,000,000

Rockaway Valley RSA

S340821-07

$6,150,000

$8,200,000

Rockaway Valley RSA

S340821-09

$1,650,000

$2,200,000

Roxbury Township

S340381-07

$5,625,000

$7,500,000

Ship Bottom Borough

S340311-03

$3,525,000

$4,700,000

Somerset Raritan Valley SA

S340801-08

$12,375,000

$16,500,000

Somerville Borough

S342013-01

$8,625,000

$11,500,000

Stafford Township

S344100-03

$4,200,000

$5,600,000

Stony Brook RSA

S340400-10

$3,825,000

$5,100,000

[Sussex County MUA

S342008-05

$9,750,000

$13,000,000

Ventnor City

S340667-03

$1,500,000

$2,000,000]

Tuckerton Borough

S340034-03

$1,053,905

$1,405,206

West Deptford Township

S340947-05

$1,061,250

$1,415,000

Western Monmouth UA

S340128-06

$9,075,000

$12,100,000

Total Projects: [70] 84

 

[$389,100,418]

$432,145,474

[$508,780,557]

$570,353,962

 

     b.    The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2019 Drinking Water Project Eligibility List":

 

Project Sponsor

 

Project No.

 

Estimated Allowable Trust Loan Amount

Estimated Total Allowable Loan Amount

Aberdeen Township

1330004-001

$2,925,000

$3,900,000

Bellmawr Borough

0404001-006

$1,725,000

$2,300,000

Berkeley Township MUA

1505004-009

$1,650,000

$2,200,000

[Berkeley Township MUA

1505004-007

$525,000

$700,000]

Bordentown City

0303001-008

$1,650,000

$2,200,000

Brick Township MUA

1506001-012

$4,065,000

$5,420,000

[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

Elmer Borough

1702001-001

$600,000

$800,000]

Brick Township MUA

1506001-009

$4,446,570

$5,928,760

Brick Township MUA

1506001-010

$870,000

$1,160,000

Gloucester City

0414001-022

$900,000

$1,200,000

Hampton Borough

1013001-001

$1,350,000

$1,800,000

Hightstown Borough

1104001-010

$1,331,759

$1,775,678

Hoboken City

0905001-001

$6,375,000

$8,500,000

Jackson Township MUA

1511001-012

$8,250,000

$11,000,000

Jackson Township MUA

1511001-013

$15,000,000

$20,000,000

Jackson Township MUA

1511001-010

$6,150,000

$8,200,000

[Lavallette Borough

1515001-001

$998,250

$1,331,000

Little Egg Harbor MUA

1516001-004

$2,250,000

$3,000,000]

Jackson Township MUA

1511001-011

$1,200,000

$1,600,000

Jersey City MUA

0906001-015

$2,691,950

$3,589,266

Jersey City MUA

0906001-019

$4,545,000

$6,060,000

Lakewood Township MUA

1514002-003

$1,080,000

$1,440,000

Little Egg Harbor MUA

1516001-500

$ 750,000

$1,000,000

Long Beach Township

1517001-501

$1,725,000

$2,300,000

Long Beach

Township

1517001-502

$ 8,625,000

$11,500,000

Lower Township MUA

0505002-003

$5,192,555

$6,923,406

Manchester Township

1518005-002

$4,125,000

$5,500,000

Mantua Township MUA

0810004-002

$1,350,000

$1,800,000

Mantua Township MUA

0810004-003

$1,050,000

$1,400,000

[Maple Shade Township

0319001-006

$1,950,000

$2,600,000

Middlesex Water Company

1225001-026

$9,750,000

$13,000,000]

Middlesex Water

Company

1225001-028

$8,400,000

$11,200,000

Milltown Borough

1212001-005

$1,350,000

$1,800,000

National Park Borough

0812001-004

$1,275,000

$1,700,000

Netcong Borough

1428001-007

$2,775,000

$3,700,000

Netcong Borough

1428001-008

$825,000

$1,100,000

Netcong Borough

1428001-009

$300,000

$400,000

Newark City

0714001-016

$10,500,000

$14,000,000

[Newark City

0714001-500

$3,825,000

$5,100,000]

Newark City

0714001-018

$3,600,000

$4,800,000

NJ American Water Co., Inc.

1345001-017

$7,575,000

$10,100,000

NJ American Water Co., Inc.

2004002-013

$12,000,000

$16,000,000

[NJ American Water Co., Inc.

2004002-500

$27,000,000

$36,000,000

NJ American Water Co., Inc.

1345001-016

$10,125,000

$13,500,000

NJ American Water Co., Inc.

2004002-011

$9,600,000

$12,800,000]

North Jersey District Water Supply Comm.

1613001-022

$12,750,000

$17,000,000

North Jersey District Water Supply Comm.

1613001-025

$18,000,000

$24,000,000

North Jersey District Water Supply Comm.

1613001-033

$3,075,000

$4,100,000

Old Bridge MUA

1209002-013

$3,000,000

$4,000,000

Paulsboro Borough

0814001-003

$2,100,000

$2,800,000

Pennington Borough

1108001-002

$937,500

$1,250,000

[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]

Ship Bottom Borough

1528001-002

$2,812,500

$3,750,000

[Stafford Township

1530004-018

$1,800,000

$2,400,000]

Stafford Township

1530004-018

$1,425,000

$1,900,000

Tuckerton Borough

1532002-006

$1,102,613

$1,470,150

Wall Township

1352003-001

$1,350,000

$1,800,000

Wall Township

1352003-002

$2,775,000

$3,700,000

Total Projects: [44] 47

 

[$222,263,250] $188,450,447

[$296,351,000]

$251,267,260

     c.     The trust is authorized to adjust the allowable trust loan amount for projects authorized in this section to between zero percent and 75 percent of the total allowable loan amount, and such excess amounts to the extent [the priority ranking and] an insufficiency of funding prevents the Department of Environmental Protection from [making the loan] meeting program demand as provided in subsection f. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), and up to 100 percent of the total allowable loan amount for projects certified by the Department of Environmental Protection pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5).

(cf:  P.L.2018, c.84, s.4)

 

     5.    Section 5 of P.L.2018, c.84 is amended to read as follows:

     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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) which are not expended for that purpose may be applied for the payment of all or any part of the principal of and 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) 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).

(cf:  P.L.2018, c.84, s.5) 

 

     6.    Section 6 of P.L.2018, c.84 is amended to read as follows:

     6.    Any loan made by the New Jersey Infrastructure Bank pursuant to [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) shall be subject to the following requirements:

     a.     The chairman 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 rules and regulations adopted pursuant thereto, and any amendatory and supplementary acts thereto, as applicable. In making this certification, the chairman 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), shall not exceed the allowable project cost of the environmental infrastructure facility, exclusive of capitalized interest and issuance expenses as provided in subsection b. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), reserve capacity expenses and the debt service reserve fund expenses as provided in subsection c. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), interest earned on project costs as provided in subsection d. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), the amounts of the loan origination fee as provided in subsection e. of section 7 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), refunding increases as provided in section 8 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) shall expire on July 1, 2019, and any project sponsor which has not executed and delivered a loan agreement with the trust for a loan authorized in [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) shall no longer be entitled to that loan.

(cf:  P.L.2018, c.84, s.6)

 

     7.    Section 7 of P.L.2018, c.84 is amended to read as follows:

     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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) by the amount of capitalized interest and issuance expenses allocable to each loan made by the trust pursuant to [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill); provided that the increase for issuance expenses, excluding underwriters' discount, original issue discount or premiums, municipal bond insurance premiums and bond rating agency fees, shall not exceed 0.4 percent of the principal amount of trust bonds issued to make loans authorized by [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).

     c.     The trust is authorized to increase each loan amount authorized in sections 2 and 4 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill).

     d.    The trust is authorized to increase each loan amount authorized in sections 2 and 4 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) 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] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) by the loan origination fee.

     f.     The trust is authorized to increase each loan amount authorized in sections 2 and 4 of [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill) 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.2018, c.85, as amended by P.L.     , c.    (pending before the Legislature as Senate Bill No.   and Assembly Bill No.    ), in connection with the project costs of the project sponsor, to the extent [the priority ranking and] an insufficiency of funding prevents the department from [making the loan] meeting program demand, and for lead abatement projects ineligible for department loans under the Federal Clean Water Act and Safe Drinking Water Act.

(cf:  P.L.2018, c.84, s.7)

 

     8.    Section 8 of P.L.2018, c.84 is amended to read as follows:

     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, or P.L.2018, c.84, as amended by 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.

(cf:  P.L.2018, c.84, s.8)

 

     9.    Section 9 of P.L.2018, c.84 is amended to read as follows:

     9.    The expenditure of funds authorized pursuant to [this act] P.L.2018, c.84, as amended by P.L.    , c.   (pending before the Legislature as this bill), 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, and the rules and regulations adopted pursuant thereto or the Federal Safe Drinking Water Act, as appropriate.

(cf:  P.L.2018, c.84, s.9)

 

     10.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would authorize the New Jersey Infrastructure Bank (NJIB) to expend additional sums to make loans for environmental infrastructure projects for Fiscal Year 2019.

     In August 2018, P.L.2018, c.84 was enacted into law, which authorized the NJEIT to expend up to $810.6 million, and any unexpended balances from previous authorizations, to provide low-interest and market-rate loans to project sponsors (primarily local governments, public authorities, or public water utilities) for a portion of the total costs of 119 eligible environmental infrastructure projects for Fiscal Year 2019. This included 70 projects from the "Storm Sandy and State Fiscal Year 2019 Clean Water Project Eligibility List" and 44 projects from the "Storm Sandy and State Fiscal Year 2019 Drinking Water Project Eligibility List." The NJEIT was also authorized under P.L.2018, c.84 to provide supplemental loans to five clean water projects that received loans in the past and which require supplemental loans in order to meet actual costs.

     This bill would amend the lists of environmental infrastructure projects for which the NJIB is authorized to make loans in P.L.2018, c.84 to include new projects and remove certain projects. Thus, under the bill, the NJIB would be authorized to expend up to $822.9 million, and any unexpended balances from previous authorizations, to provide loans to project sponsors for a total of 134 eligible environmental infrastructure projects for Fiscal Year 2019. This would include 84 projects on the "Storm Sandy and State Fiscal Year 2019 Clean Water Project Eligibility List" and 47 projects on the "Storm Sandy and State Fiscal Year 2019 Drinking Water Project Eligibility List." The NJIB would also be authorized to make supplemental loans to three clean water environmental infrastructure projects.  

     In addition, certain projects have been removed from the list of projects for which the NJIB is authorized to make loans either because they have already received long-term funding or because the projects will not be ready to receive funding before the end of Fiscal Year 2019 under NJIB program requirements.

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