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  • NJ A4998
  • Appropriates funds to DEP for environmental infrastructure projects for FY2018.
Introduced
(6/12/2017)
In Committee
(6/19/2017)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill appropriates certain federal and State moneys to the Department of Environmental Protection (DEP) for the purpose of implementing the State Fiscal Year 2018 New Jersey Environmental Infrastructure Financing Program (NJEIFP), which is expected to finance approximately $539.52 million in Storm Sandy and other environmental infrastructure projects for State Fiscal Year 2018. The DEP, working with the New Jersey Environmental Infrastructure Trust (NJEIT), implements the NJEIFP which has financed over 1,234 projects totaling over $6.7 billion throughout the State. From its inception, the program has reduced financing costs by approximately 30 percent, saving borrowers over $2.3 billion. In addition, the program has generated more than 130,000 construction jobs, and stimulated significant improvements to the State's clean water and drinking water infrastructure. Under the bill, for fiscal year 2018, approximately $323.17 million will be available for clean water project loans and $216.35 million for drinking water project loans. Funding sources include federal capitalization grants, State bond issue proceeds, State match, various prior legislative appropriations, loan repayments, interest earnings, and market rate loans made by the New Jersey Environmental Infrastructure Trust (NJEIT). Of those totals, approximately $224.42 million will be available for financing Storm Sandy project loans of which approximately 19 percent of each loan will be subject to principal forgiveness. Approximately $132.62 million will be available for financing Storm Sandy clean water project loans of which approximately $25.2 million will be subject to principal forgiveness. Approximately $81.8 million will be available for financing Storm Sandy drinking water project loans of which approximately $15.542 million will be subject to principal forgiveness. Funding sources include the Federal Disaster Relief Appropriations Act, State match, and market rate loans made by the NJEIT. To the extent funds are available, principal forgiveness loans will be available for Combined Sewer Overflow Abatement (CSO) projects that reduce or eliminate excessive infiltration/inflow or extraneous flows. For these projects, principal forgiveness loans may not exceed $5 million per borrower of which approximately 50 percent of the principal of the fund loan shall be forgiven, 25 percent of the loan will be a zero interest rate fund loan, and 25 percent of the loan will be a trust market rate loan. A 100 percent DEP interest free loan will be issued to borrowers for the amounts of the loan in excess of the cap. To the extent funds are available, principal forgiveness loans will be available for CSO projects with a focus on green technology (e.g., green roofs, rain gardens, porous pavement, and other activities that maintain and restore natural hydrology). For these projects, 50 percent of the fund loan will be forgiven, 25 percent of the loan will be a zero interest rate fund loan, and 25 percent of the loan will be a trust market rate loan. Principal forgiveness will be available to the highest ranked CSO projects and will be awarded according to the DEP's ranking methodology based on projects' relative water quality benefit in conjunction with project readiness. Approximately $6 million will be available for principal forgiveness loans for stormwater runoff mitigation environmental infrastructure projects in the Barnegat Bay Watershed to continue addressing the critical water quality issues confronting this waterbody, of which 25 percent will be subject to principal forgiveness in an amount not to exceed $2 million of principal forgiveness per project sponsor. Approximately 10 percent of the State's clean water capitalization grant and 20 percent of the State's drinking water capitalization grant will be used as a green project reserve as may be required in the 2017 federal appropriation. Approximately $30 million is available for loans to eligible redevelopment projects. To the extent funds are available, a maximum of $1 million in principal forgiveness loans will be available to finance the development of asset management plans for systems serving populations up to 10,000 residents of which 100 percent will be subject to principal forgiveness in an amount not to exceed $100,000 per project sponsor. Any additional clean water principal forgiveness loans permitted in the federal appropriation will be available for CSO abatement projects and Barnegat Bay Watershed projects as described above. If drinking water principal forgiveness loans are permitted, the State is prepared to dedicate up to 30 percent of its state drinking water capitalization grant for such projects. Drinking water loans for improvements to water supply systems serving populations of up to 10,000 people will be in an amount not to exceed $500,000 and may not exceed 50 percent of the total loan amount per project sponsor in an amount not to exceed $1 million per project sponsor. To the extent funds are available, a maximum of $30 million of principal forgiveness loans are available for drinking water systems serving communities with a median household income less than the median household income for the county in which they are located for lead line replacement in an amount not to exceed $1 million of principal forgiveness per project sponsor. Disaster Relief Emergency Financing Program loans will continue to be available for short-term financing (up to three full fiscal years) for projects to repair or improve the resiliency of environmental infrastructure systems adversely impacted by Storm Sandy. The source of funds for such loans is currently repayments of prior NJEIFP Loans and NJEIT operating funds but private bank financing for such loans may be used as the need arises. Finally, Interim Financing Program (IFP) Loans will be available for projects approved to receive long-term financing. IFP loans will be available upon the DEP's issuance of an authorization to award a project's final construction contract, project certification by the DEP, and satisfaction of financial eligibility requirements. The loans will finance costs disbursed prior to long-term financing. The source of funds for such loans include prior capitalization grants, NJEIFP loan repayments, prior State bond acts, and interest earnings thereon. The DEP would use the funds appropriated under this bill to make zero interest loans to local governments and privately-owned water companies (project sponsors) for between 25 percent and 75 percent of project costs totaling (1) $315.82 million for new clean water projects included in the "Storm Sandy and State Fiscal Year 2018 Clean Water Project Eligibility List," and $7.35 million for clean water projects through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds; and (2) $212.75 million for new drinking water projects included in the "Storm Sandy and State Fiscal Year 2018 Drinking Water Project Eligibility List," and $3.6 million for drinking water projects through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds. The supplemental loans constitute the difference between the allowable loan amount required by the project and the loan amount certified by the Commissioner of Environmental Protection in State Fiscal Year 2018. The bill authorizes the DEP to issue loans up to 100 percent of the total allowable loan amount (1) for clean water loans to municipalities that do not satisfy the New Jersey Environmental Infrastructure Trust credit policy but are subject to State financial supervision and oversight pursuant to the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), (2) for clean water and drinking water loans to municipalities receiving funding under the United States Department of Housing and Urban Development Community Development Block Grant - Disaster Recovery Program (CDBG-DR), (3) for loans to clean water or drinking water systems serving 10,000 or fewer residents the DEP allowable loan amount will be 100% of the total allowable loan amount not to exceed a total of $100,000 per project sponsor, and (4) for loans to communities in a combined sewer overflow "CSO" sewershed sponsoring construction projects that reduce or eliminate excessive infiltration/inflow or extraneous flows. A companion bill, Senate Bill No. 3240 of 2017, would authorize the NJEIT to make market rate loans to local governments and privately-owned water companies (project sponsors) for between 25 percent and 75 percent of project costs totaling (1) $315.82 million for 42 new clean water projects included in the "Storm Sandy and State Fiscal Year 2018 Clean Water Project Eligibility List," and $7.35 million for six clean water projects through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds; and (2) $212.75 million for 28 new drinking water projects included in the "Storm Sandy and State Fiscal Year 2018 Drinking Water Project Eligibility List," and $2.7 million for one drinking water project through supplemental zero interest loans to project sponsors that had previously received a loan subject to the availability of funds. Under this bill, in conjunction with Senate Bill No. 3240 of 2017, the Storm Sandy and State Fiscal Year 2018 New Jersey Environmental Infrastructure Financing Program would finance $539.52 million in environmental infrastructure projects for State Fiscal Year 2018 subject to the availability of funds.
2nd Reading in the Assembly, Environment and Solid Waste, Substituted by another Bill
Substituted by S3241 (1R)  (on 6/29/2017)
 
 

Date Chamber Action Description
6/29/2017 A Substituted by S3241 (1R)
6/19/2017 Assembly Budget Hearing (19:00 6/19/2017 *Revised 6/16/17 - A-4670 has been added. The following bills ha)
6/19/2017 A Reported out of Assembly Committee, 2nd Reading
6/15/2017 Assembly Environment and Solid Waste Hearing (19:00 6/15/2017 * Revised 6/14/17 - A-2204 added for consideration.)
6/15/2017 A Reported and Referred to Assembly Budget Committee
6/15/2017 Assembly Environment and Solid Waste Hearing (19:00 6/15/2017 A-2204 added for consideration.)
6/15/2017 Assembly Environment and Solid Waste Hearing (19:00 6/15/2017 )
6/12/2017 A Introduced, Referred to Assembly Environment and Solid Waste Committee
Date Motion Yea Nay Other
Detail 6/19/2017 Assembly Budget Committee: Reported Favorably 12 0 1
Detail 6/15/2017 Assembly Environment and Solid Waste Committee: Reported Favorably 6 0 0