Bill > S202

Introduced Session

This bill would establish the Water Resources Protection Trust Fund (fund), to be administered by the Department of Environmental Protection (DEP). Moneys in the fund would be derived from: (1) a water consumption user fee imposed on the owner or operator of every public community water system equal to $0.40 per 1,000 gallons of water delivered to a consumer; and (2) a water diversion user fee imposed on every person required by law to obtain a diversion permit or a water use registration equal to $0.40 per 1,000 gallons of water diverted for a consumptive use. The water consumption user fee would be collected in the same manner as the water tax on public community water systems imposed under the "Safe Drinking Water Act." The following water uses would be exempt from the water consumption user fee: (1) water delivered to a consumer for the purpose of storage for future water supplies; (2) water delivered to a consumer for the purpose of transferring water between public water systems; (3) water delivered to a consumer for emergency purposes, including firefighting, flood prevention, response to a discharge of hazardous substances, or for other emergency purposes as may be determined by the DEP; (4) water delivered to a consumer, including water delivered for resale, or a bulk sale of water delivered to a consumer in another public water system; and (5) unaccounted-for water of 15 percent or less. The following water uses would be exempt from the water diversion user fee: (1) water diverted for agricultural or horticultural purposes under a water usage certification required pursuant to law; (2) water diverted for a nonconsumptive use. In the case of those permittees or persons with diversion privileges to divert water for both a consumptive use and a nonconsumptive use, the calculation of the amount of water diverted for nonconsumptive use would be determined by the DEP based on water use as reported to the DEP pursuant to law, or if not reported, based on standard industry water use profiles; (3) surface water diverted by permittees or persons required to apply for and obtain a water use registration in such a manner that it is returned to another surface water body; (4) water diverted for the remediation of areas with contaminated ground water supplies, or for other remedial actions as provided by law; (5) water diverted for emergency purposes, including firefighting, flood prevention, response to a discharge of hazardous substances, or for other emergency purposes as may be determined by the DEP; (6) diversions of salt water except whenever the DEP determines that the diversion and resultant usage may affect utilization of fresh water; (7) water diverted for a paper manufacturing process utilizing post-consumer waste material in the manufacture of a recycled product which constitutes at least 75 percent of total annual sales dollar volume of the products manufactured in the State by that manufacturer as determined by the Director of the Division of Taxation; (8) water subject to the water consumption user fee; (9) diversions of saline water except whenever the DEP determines that the diversion and resultant usage may affect utilization of fresh water; (10) water diverted for purposes of reducing air emissions or water pollutants necessary for compliance with local, State or federal regulations; (11) water diverted for the purpose of transferring water between public water systems; and (12) water diverted for resale, or a bulk sale of water diverted to another public water system. Any person subject to the water diversion user fee would be eligible for water conservation credits against the water diversion user fee. Water conservation credits would be granted to any permittee or person required to apply for and obtain a water use registration who can demonstrate a net reduction in annual water use over any 10-year period commencing January 1, 2019. The water conservation credits would be equal to 50 percent of the difference between the maximum year withdrawal during this period and the current year, where the reduction can be documented as attributable to water conservation. The DEP would approve the diversion permit or water use registration modification to reflect the water conservation credits granted. The fund would be administered by the DEP and would be credited with all water consumption user fee and water diversion user fee revenue collected under sections 7 and 8 of the bill, all interest and other investment income received on moneys in the fund, and all sums received as repayment of principal and interest on outstanding loans made from the fund. The DEP would be authorized to use not more than one percent of the total revenues deposited in the fund during the fiscal year to cover administrative expenses incurred in implementing the provisions of the bill. The moneys in the fund may be used for the following water quality, supply, and infrastructure projects: (1) the costs of transferring water between public water systems during a state of water emergency or to avert a drought emergency in all or any part of the State; (2) the protection of existing water supplies through the acquisition of watershed and wetlands areas; (3) the interconnection of existing water supplies, and the extension of water supplies to areas with contaminated ground water supplies; (4) the costs of water supply infrastructure projects undertaken by water purveyors for the purpose of drought mitigation; (5) the costs of a safe or dependable yield analysis of the State's surface and ground water resources undertaken by the DEP, up to $100,000; (6) projects to rehabilitate, repair, or replace public water system infrastructure; (7) grants to local government units to finance the cost of developing asset management programs for public water systems; and (8) projects to remediate lead in drinking water infrastructure. In addition, beginning 10 years after the effective date of the bill, the money in the fund may be used for projects to rehabilitate, repair, or replace wastewater treatment system infrastructure, including, but not limited to, combined sewer overflow abatement projects. Whenever any moneys in the fund are used for the protection of existing water supplies through the acquisition of watershed and wetlands areas, the percentage of moneys used for such acquisitions in the Highlands region would be an amount equivalent to not less than the percentage of total revenues deposited in the fund which were collected from user fee payers within the Highlands region, and the percentage of moneys used for such acquisitions in the Pinelands area would be an amount equivalent to not less than the percentage of total revenues deposited in the fund which were collected from user fee payers within the Pinelands area. The DEP would be authorized to make low-interest loans to local governments and water purveyors to finance the cost of authorized water quality, supply, and infrastructure projects. To be eligible for a grant, a local government or water purveyor would be required to demonstrate the ability to match the grant requested by generating funds in ratios specified by the DEP. On or before January 15 of each year, the DEP would submit to the Legislature a financial plan designed to implement the financing of the projects on the project priority list submitted to the Legislature for approval by May 15 of that year. The financial plan would contain an enumeration of the projects for which the DEP intends to provide funds and the terms and conditions of any loans or grants associated therewith, the anticipated rate of interest per year and repayment schedule for any loans. The financial plan would also set forth a complete operating and financial statement covering its proposed operations during the forthcoming fiscal year, summarize the status of each project for which grants or loans have been made, and describe any major impediments to the accomplishment of the planned projects. On or before May 15 of each fiscal year, the DEP would prepare and submit to the Legislature for approval a project priority list recommending the particular water quality, supply, and infrastructure projects to be funded for the upcoming fiscal year. The project priority list would include a description of each project, its purpose, impact, cost, and construction schedule, and an explanation of the manner in which priorities were established. The bill provides that no expenditure from the fund would be made except by an appropriation made pursuant to law and in accordance with the project priority list developed by the DEP. Each such appropriation act would clearly set forth all terms and conditions governing the expenditure of the appropriation, would identify each specific project or projects for which an appropriation is made, and may provide such sums as may be necessary to cover the costs associated with the administration thereof. The bill requires the DEP to undertake a safe or dependable yield analysis of the State's surface and ground water sources to ascertain what actions may be required to maintain safe yield, and to include the results of the analysis in revisions and updates of the New Jersey Statewide Water Supply Plan.

AI Summary

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Bob Smith (D)*, 

Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 01/09/2024)

Official Document