Bill > S1366

Introduced Session

This bill would provide that, subject to the availability of federal funds provided or made accessible to the State from the federal "Coronavirus State Fiscal Recovery Fund," established pursuant to the federal "American Rescue Plan Act of 2021," Pub.L.117-2, or any other federal funds provided or made accessible to the State in response to the coronavirus disease 2019 (COVID-19) pandemic, $1.3 billion from such federal funds are to be made available to the Department of Environmental Protection (DEP). The bill specifies that the funds made available to the DEP, pursuant to the bill, are to be reserved by the DEP to provide financial support, in conjunction with financing from the New Jersey Infrastructure Bank (NJIB) and pursuant to the New Jersey Environmental Infrastructure Financing Program (NJEIFP), for lead service line replacement projects undertaken by suppliers of water in the State. The DEP would be authorized to use up to one percent of the funds to defray administrative expenses incurred in the implementation of the bill's provisions. The bill authorizes the DEP to transfer, to the NJIB, the uncommitted balance of funds made available to the DEP pursuant to the bill. The NJIB would be required to use the transferred funds to provide financial support, in conjunction with the DEP and pursuant to the NJEIFP, for lead service line replacement projects undertaken by suppliers of water in the State. The NJIB would be authorized to use up to one percent of the transferred funds to defray administrative expenses incurred in the implementation of the bill's provisions. The use of federal funds for lead service line replacement projects, as provided by the bill, would be conditioned upon the upfront provision of matching funds for each lead service line replacement project by the public water utility or other supplier of water undertaking the project, except when the project is being undertaken by a small water supplier, in which case, the small water supplier will not be required to provide upfront matching funds, but may be required to commit to provide matching funds at some future date, as agreed to by the DEP in consultation with the NJIB. A "small water supplier" is defined, consistent with federal law, to mean a supplier of water that serves not more than 3,300 customer connections in the State. The bill would authorize the NJIB to facilitate the provision of matching funds by making loans to project sponsors for lead service line replacement projects undertaken by suppliers of water in the State. The DEP, in consultation with the NJIB, would be required to determine the amount of matching funds to be provided by each supplier of water. When determining the amount, and the timeframe for provision, of matching funds by a small water supplier, the DEP would be required to consider the financial reserves held by the small water supplier and any other factors that would enable, or negate the ability of, the small water supplier to provide matching funds for the project. The department, in consultation with the NJIB, would be required to establish the size of each financial award that is made available to a supplier of water using federal funds made available under the bill, as well as the eligibility of suppliers of water for such financial support. The use of federal funds made available pursuant to the bill, the establishment of eligibility standards for the financial awards being made with those federal funds, and the provision of loans to project sponsors would each need to be done in accordance with the "New Jersey Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-1 et seq.), and any other applicable laws or regulations.

AI Summary

Committee Categories

Linda Greenstein (D)*,  Joe Lagana (D)*, 

Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 01/13/2026)

Official Document