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P.L. 2022, CHAPTER 99, approved August 12, 2022

Assembly, No. 4066

 

 


An Act appropriating moneys to the Department of Environmental Protection for the purpose of making zero interest loans or principal forgiveness loans to project sponsors to finance a portion of the costs of environmental infrastructure projects.

 

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

 

     1.  a.  (1) There is appropriated to the department from the "Clean Water State Revolving Fund," established pursuant to section 1 of P.L.2009, c.77, an amount equal to the federal fiscal year 2022 capitalization grant made available to the State for clean water project loans 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") and such sums as are made available to the department from the "Clean Water State Revolving Fund" from funds made available pursuant to the federal "Infrastructure Investment and Jobs Act," Pub. L. 117-58.

     (2) There is appropriated to the department from the "Interim Environmental Financing Program Fund," established by the New Jersey Infrastructure Bank pursuant to subsection d. of section 9 of P.L.1985, c.334 (C.58:11B-9), such amounts as may be necessary to supplement the sums appropriated from the Clean Water State Revolving Fund for the purposes of clean water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

     (3) There is appropriated to the department from the "Disaster Relief Emergency Financing Program Fund," established by the New Jersey Infrastructure Bank pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5), such amounts as may be necessary to supplement the sums appropriated from the Clean Water State Revolving Fund for the purposes of clean water project loans and providing the State match as may be 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) There is appropriated to the department from the "Drinking Water State Revolving Fund," established pursuant to section 1 of P.L.1998, c.84, an amount equal to the federal fiscal year 2022 capitalization grant made available to the State for drinking water projects 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") and such sums as are made available to the department from the "Drinking Water State Revolving Fund" from funds made available pursuant to the federal "Infrastructure Investment and Jobs Act," Pub. L. 117-58.

     The department is authorized to transfer from the Clean Water State Revolving Fund to the Drinking Water State Revolving Fund, pursuant to the "Water Infrastructure Funding Transfer Act," Pub.L.116-63, additional amounts as may be necessary to address a threat to public health, and an amount equal to the maximum amount authorized to be transferred is appropriated to the department for those purposes. 

     The department is authorized to transfer from the Clean Water State Revolving Fund to the Drinking Water State Revolving Fund an amount up to the maximum amount authorized to be transferred pursuant to the Federal Safe Drinking Water Act to meet present and future needs for the financing of eligible drinking water projects, and an amount equal to that maximum amount is appropriated to the department for those purposes.

     The department is authorized to transfer from the Drinking Water State Revolving Fund to the Clean Water State Revolving Fund an amount up to the maximum amount authorized to be transferred pursuant to the Federal Clean Water Act to meet present and future needs for the financing of eligible clean water projects, and an amount equal to that maximum amount is appropriated to the department for those purposes.

     Notwithstanding any provision of this act to the contrary, the department is authorized to utilize funds from the Clean Water State Revolving Fund for the purposes of the Drinking Water State Revolving Fund, and may charge interest on loans made with such invested funds to the extent permitted by the Federal Clean Water Act and the Federal Safe Drinking Water Act. 

     (5) There is appropriated to the department the unappropriated balances from the Clean Water State Revolving Fund, including the balances from the Federal Disaster Relief Appropriations Act, and any repayments of loans and interest therefrom, as may be available on or before June 30, 2023, for the purposes of clean water project loans and providing the State match as may be 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) There is appropriated to the department the unappropriated balances from the "Wastewater Treatment Fund," established pursuant to section 15 of the "Wastewater Treatment Bond Act of 1985," P.L.1985, c.329, and any repayments of loans and interest therefrom, as may be available on or before June 30, 2023, for the purposes of clean water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

     (7) There is appropriated to the department the unappropriated balances from the "1992 Wastewater Treatment 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, and any repayments of loans and interest therefrom, as may be available on or before June 30, 2023, for the purposes of clean water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

     (8) There is appropriated to the department the unappropriated balances from the "2003 Water Resources and Wastewater Treatment Fund," established pursuant to subsection a. 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, and any repayments of loans and interest therefrom, as may be available on or before June 30, 2023, for the purposes of clean water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

     (9) There is appropriated to the department the unappropriated balances from the "Pinelands Infrastructure Trust Fund," established pursuant to section 14 of the "Pinelands Infrastructure Trust Bond Act of 1985," P.L.1985, c.302, and any repayments of loans and interest therefrom, as may be available on or before June 30, 2023, for the purposes of clean water project loans and drinking water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act and for drinking water projects pursuant to the Federal Safe Drinking Water Act.

     (10) There is appropriated to the department the unappropriated balances from the "Stormwater Management and Combined Sewer Overflow Abatement Fund," established pursuant to the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989," P.L.1989, c.181, and any repayments of loans and interest therefrom, as may be available on or before June 30, 2023, for the purposes of clean water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

     (11) There is appropriated to the department the unappropriated balances from the Drinking Water State Revolving Fund and any repayments of loans and interest therefrom, including the balances from the Federal Disaster Relief Appropriations Act as may be available on or before June 30, 2023, for the purposes of drinking water project loans. 

     (12) There is appropriated to the department such sums as may be needed from loan repayments and interest earnings from the "Water Supply Fund," established pursuant to section 14 of the "Water Supply Bond Act of 1981," P.L.1981, c.261, for the "Drinking Water State Revolving Fund Match Accounts" contained within that fund, for the purpose of providing the State match as may be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.

     (13) There is appropriated to the department from the "Interim Environmental Financing Program Fund," established by the New Jersey Infrastructure Bank pursuant to subsection d. of section 9 of P.L.1985, c.334 (C.58:11B-9), such amounts as may be available on or before June 30, 2023, and any repayments of loans and interest therefrom, as may be necessary to supplement the sums appropriated from the Drinking Water State Revolving Fund for the purposes of drinking water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.

     (14) There is appropriated to the department from the "Disaster Relief Emergency Financing Program Fund," established by the New Jersey Infrastructure Bank pursuant to section 1 of P.L.2013, c.93 (C.58:11B-9.5), such amounts as may be necessary to supplement the sums appropriated from the Drinking Water State Revolving Fund for the purposes of drinking water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.

     (15) There is appropriated to the department such amounts as may be received by the Department of Community Affairs, as the grantee from the United States Department of Housing and Urban Development Community Development Block Grant - Disaster Recovery Program (CDBG-DR), as may be available on or before June 30, 2023, for the purposes of CDBG-DR eligible clean water and drinking water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act and drinking water projects pursuant to the Federal Safe Drinking Water Act.

     (16) There is appropriated to the department such sums as may be available on or before June 30, 2023, as repayments of drinking water project loans and any interest therefrom from the "Water Supply Fund," established pursuant to section 14 of the "Water Supply Bond Act of 1981," P.L.1981, c.261, for the purposes of drinking water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.

     (17) Of the sums appropriated to the department from the "Water Supply Fund" pursuant to P.L.1999, c.174, P.L.2001, c.222, P.L.2002, c.70, and P.L.2003, c.158, the department is authorized to transfer any unexpended balances and any repayments of loans and interest therefrom as may be available on or before June 30, 2023, in such amounts as needed to the Drinking Water State Revolving Fund accounts contained within the Water Supply Fund established for the purposes of providing drinking water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.

     (18) Of the sums appropriated to the department from the "1992 Wastewater Treatment Fund" pursuant to P.L.1996, c.85, P.L.1997, c.221, P.L.1998, c.84, P.L.1999, c.174, P.L.2000, c.92, P.L.2001, c.222, and P.L.2002, c.70, the department is authorized to transfer any unexpended balances and any repayments of loans and interest therefrom as may be available on or before June 30, 2023, in such amounts as needed to the Clean Water State Revolving Fund accounts contained within the 1992 Wastewater Treatment Fund for the purposes of providing clean water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

     (19) Of the sums appropriated to the department from the "2003 Water Resources and Wastewater Treatment Fund" pursuant to P.L.2004, c.109 and P.L.2007, c.139, the department is authorized to transfer any unexpended balances and any repayments of loans and interest therefrom as may be available on or before June 30, 2023, in such amounts as needed to the Clean Water State Revolving Fund accounts contained within the 2003 Water Resources and Wastewater Treatment Fund for the purposes of providing clean water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act.

     (20) There is appropriated to the department the sums deposited by the New Jersey Infrastructure Bank into the Clean Water State Revolving Fund, the "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund," established pursuant to the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989," P.L.1989, c.181, the "2003 Water Resources and Wastewater Treatment Fund," and the Drinking Water State Revolving Fund, as appropriate, pursuant to paragraph (6) of subsection c. of section 1 of P.L.    , c.    (pending before the Legislature as Senate Bill No. 2735 of 2022 and Assembly Bill No. 4067 of 2022), as may be available on or before June 30, 2023, for the purposes of providing clean water project loans and drinking water project loans and providing the State match as may be required for the award of the capitalization grants made available to the State for clean water projects pursuant to the Federal Clean Water Act and for drinking water projects pursuant to the Federal Safe Drinking Water Act.

     Any such amounts shall be for the purpose of making zero interest and principal forgiveness financing 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 a portion of the cost of the construction of clean water projects and drinking water projects listed in sections 2 and 3 of this act, and for the purpose of implementing and administering the provisions of this act, to the extent permitted by the Federal Disaster Relief Appropriations Act, the Federal Clean Water Act, the Federal Safe Drinking Water Act, P.L.2009, c.77, the "Wastewater Treatment Bond Act of 1985." P.L.1985, c.329, the "Water Supply Bond Act of 1981," P.L.1981, c.261, the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989," P.L.1989, c.181, the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992," P.L.1992, c.88, the "Dam, Lake, Stream, Flood Control, Water Resources, and the Wastewater Treatment Project Bond Act of 2003," P.L.2003, c.162, and any amendatory and supplementary acts thereto.

     (21) Of the $60 million appropriated to the department for the capital construction of drinking water infrastructure by the State fiscal year 2021 appropriations act, P.L.2020 c.97, up to $25 million may be transferred to the New Jersey Infrastructure Bank to invest, provide debt service reserve or guarantee, or pay interest on behalf of a sponsor of a drinking water environmental infrastructure project.

     (22) There is appropriated to the department for the purposes of eligible clean water project grants such amounts as may be received by the department under the Sewer Overflow and Stormwater Reuse Grants Program, as the grantee from the United States Environmental Protection Agency and as may be available on or before June 30, 2023.

     b.  The department is authorized to make zero interest and principal forgiveness financing loans to or on behalf of the project sponsors for the environmental infrastructure projects listed in subsection a. of section 2 and subsection a. of section 3 of this act for clean water projects, up to the individual amounts indicated and in the priority stated, to the extent there are sufficient eligible project applications, except that any such amounts may be reduced if a project fails to meet the requirements of sections 4 or 5 of this act, or by the Commissioner of Environmental Protection pursuant to section 7 of this act.

     (1) A maximum of $30 million in principal forgiveness loans, plus any appropriated but unallocated funds designated in State fiscal year 2022 for combined sewer overflow projects, shall be issued as provided in subsection a. of section 3 of this act to communities in combined sewer overflow sewersheds for construction projects that reduce or eliminate discharges from combined sewer overflow outfalls. The amount of a principal forgiveness loan issued pursuant to this paragraph shall not exceed $5 million per borrower whenever practicable. For project costs up to and including $10 million, 50 percent of the principal of the loan shall be forgiven and the remaining 50 percent of the loan shall have a blended interest rate of 50 percent of the trust's market rate.  For project costs greater than $10 million, the loan shall have a blended interest rate of 50 percent of the trust's market rate.  For projects in communities that meet "Clean Water State Revolving Fund" affordability criteria, for project costs up to and including $5 million, 100 percent of the principal of the loan shall be forgiven.  For project costs greater than $5 million and up to and including $10 million, the loan shall have a blended interest rate of 50 percent of the trust’s market rate.  For project costs greater than $10 million up to and including $12 million, 100 percent of the principal of this portion of the loan shall be forgiven.  For project costs greater than $12 million and up to and including $14 million, the loan shall have a blended interest rate of 50 percent of the trust's market rate.  For project costs greater than $14 million and up to and including $20 million, the loan shall have a blended interest rate of 25 percent of the trust's market rate, and, for the remaining project costs over $20 million, the loan shall have a blended interest rate of 50 percent of the trust's market rate. 

     (2) A maximum of $6 million in principal forgiveness loans, plus any appropriated but unallocated funds designated in State fiscal year 2022 for water quality restoration projects, shall be issued as provided in subsection a. of section 3 of this act for water quality restoration projects.  The amount of a principal forgiveness loan issued pursuant to this paragraph shall not exceed $2.5 million per borrower whenever practicable.  For project costs up to and including $4 million, 50 percent of the principal of the loan shall be forgiven, and the remaining 50 percent of the loan shall have a blended interest rate of 50 percent of the trust's market rate.  For project costs greater than $4 million and up to and including $10 million, the loan shall have a blended interest rate of 25 percent of the trust's market rate.  For project costs greater than $10 million, the loan shall have a blended interest rate of 50 percent of the trust's market rate.

     (3) A maximum of $36 million in principal forgiveness loans for projects sponsored by applicants that meet the "Clean Water State Revolving Fund" affordability criteria as set forth by the department shall be issued as provided in subsection a. of section 3 of this act for water quality restoration projects.  The amount of a principal forgiveness loan issued pursuant to this paragraph shall not exceed $2 million per borrower whenever practicable. For project costs up to and including $2 million, 100 percent of the principal of the loan shall be forgiven.  For project costs greater than $2 million and up to and including $4 million, the loan shall have a blended interest rate of 50 percent of the trust’s market rate. For project costs greater than $4 million and up to and including $10 million, the loan shall have a blended interest rate of 25 percent of the trust's market rate.  For project costs greater than $10 million, the loan shall have a blended interest rate of 50 percent of the trust's market rate.

     (4) A maximum of $10 million in principal forgiveness loans for water and energy efficiency projects shall be issued as provided in subsection a. of section 3 of this act to projects that address water and energy efficiency goals that meet the eligibility requirements for water and energy efficiency as defined in the United States Environmental Protection Agency's "Green Project Reserve Guidance."  The amount of a principal forgiveness loan issued pursuant to this paragraph shall not exceed $2 million per borrower whenever practicable.  For project costs up to and including $4 million, 50 percent of the principal of the loan shall be forgiven and the remaining 50 percent of the loan shall have a blended interest rate of 50 percent of the trust's market rate.  For project costs greater than $4 million and up to and including $10 million, the loan shall have a blended interest rate of 25 percent of the trust's market rate.  For project costs greater than $10 million, the loan shall have a blended interest rate of 50 percent of the trust's market rate.

     (5) A maximum of $4 million in principal forgiveness loans for emerging contaminant projects shall be issued as provided in subsection a. of section 3 of this act to projects that primarily address substances and microorganisms, which are known or anticipated in the environment, and which may pose newly identified or re-emerging risks to human health, aquatic life, or the environment.  The amount of a principal forgiveness loan issued pursuant to this paragraph shall not exceed $2 million per borrower whenever practicable.  For project costs up to and including $2 million, 100 percent of the principal of the loan shall be forgiven.  For project costs greater than $2 million and up to and including $4 million, the loan shall have a blended interest rate of 50 percent of the trust’s market rate.  For project costs greater than $4 million and up to and including $10 million, the loan shall have a blended interest rate of 25 percent of the trust's market rate.  For project costs greater than $10 million, the loan shall have a blended interest rate of 50 percent of the trust's market rate.

     (6) A maximum of $1 million in principal forgiveness loans for combined sewer overflow or stormwater management projects shall be issued to finance up to 20 percent of project costs for projects that qualify for a Sewer Overflow and Stormwater Reuse grant. 100 percent of the principal of the loan shall be forgiven, and the remaining project costs shall be financed through a Sewer Overflow and Stormwater Reuse grant from the department.

     (7) The projects listed in subsection a. of section 2 of this act and subsection a. of section 3 of this act that were previously identified in P.L.2021, c.203, as amended by P.L.2021, c.328, are granted continued priority status and shall be subject to the provisions of P.L.2021, c.203, as amended by P.L.2021, c.328, provided such projects received short-term funding prior to June 30, 2022.

     c.  The department is authorized to make zero interest and principal forgiveness financing loans to or on behalf of the project sponsors for the environmental infrastructure projects listed in subsection b. of section 3 of this act for drinking water projects, up to the individual amounts indicated and in the priority stated, provided:

     (1) up to $8 million of Drinking Water State Revolving Fund loans, plus any appropriated but unallocated funds designated in State fiscal year 2022 for drinking water systems serving populations of up to 10,000 residents, shall be available for drinking water systems serving populations of up to 10,000 residents wherein principal forgiveness shall not exceed $500,000 in the aggregate and shall not exceed 50 percent of the total loan amount per project sponsor in an amount not to exceed $1 million per project sponsor;

     (2) up to $3 million in principal forgiveness loans shall be available for drinking water systems that serve fewer than 1,000 persons, have been assisted by the Community Engineering Corps, and do not meet credit eligibility requirements of the Water Bank Financing Program credit policy.  A loan issued pursuant to this paragraph shall have 100 percent principal forgiveness for a loan amount of up to $750,000 per applicant;

     (3) a maximum of $13 million of principal forgiveness loans shall be available for drinking water projects that primarily address emerging contaminants, for which principal forgiveness may be authorized for up to 100 percent of the total fund loan amount of up to $1 million per applicant;

     (4) a maximum of $5 million of principal forgiveness loans shall be available for drinking water projects other than those to address emerging contaminants or lead that meet the affordability criteria of the department, for which principal forgiveness may be authorized for up to 100 percent of the total fund loan amount of up to $1 million per applicant.  For project costs greater than $1 million and up to and including $11 million, the loan shall have a blended interest rate of 25 percent of the trust’s market rate. For project costs greater than $11 million and up to and including $25 million, the loan shall have a blended interest rate of 50 percent of the trust’s market rate.  Project costs over $25 million may be financed at an interest rate of 100 percent of the trust’s market rate as capacity allows; and

     (5) up to $25 million plus any appropriated but unallocated funds designated in State fiscal year 2022, may be issued for principal forgiveness loans for drinking water systems serving 10,000 or fewer customers to finance lead service line replacements, for which principal forgiveness shall not exceed 50 percent of the total loan amount of up to $5 million per water system.

     Loans may be made pursuant to this subsection to the extent there are sufficient eligible project applications and as may be required for the award of the capitalization grants made available to the State for drinking water projects pursuant to the Federal Safe Drinking Water Act.  Any such amounts may be reduced by the Commissioner of Environmental Protection pursuant to section 7 of this act, or if a project fails to meet the requirements of section 4 or 5 of this act.

     d.  The department is authorized to make zero interest and principal forgiveness financing loans to or on behalf of the project sponsors for the environmental infrastructure projects listed in sections 2 and 3 of this act under the same terms, conditions and requirements set forth in this section from any unexpended balances of the amounts appropriated pursuant to section 1 of P.L.1987, c.200, section 2 of P.L.1988, c.133, section 1 of P.L.1989, c.189, section 1 of P.L.1990, c.99, section 1 of P.L.1991, c.325, section 1 of P.L.1992, c.38, section 1 of P.L.1993, c.193, section 1 of P.L.1994, c.106, section 1 of P.L.1995, c.219, section 1 of P.L.1996, c.85, section 1 of P.L.1997, c.221, section 2 of P.L.1998, c.84, section 2 of P.L.1999, c.174, section 2 of P.L.2000, c.92, sections 1 and 2 of P.L.2001, c.222, sections 1 and 2 of P.L.2002, c.70, sections 1 and 2 of P.L.2003, c.158, sections 1 and 2 of P.L.2004, c.109, sections 1 and 2 of P.L.2005, c.196, sections 1 and 2 of P.L.2006, c.68, sections 1 and 2 of P.L.2007, c.139, sections 1 and 2 of P.L.2008, c.68, sections 1 and 2 of P.L.2009, c.102, sections 1 and 2 of P.L.2010, c.63, sections 1 and 2 of P.L.2011, c.93, sections 1 and 2 of P.L.2012, c.43, sections 1 and 2 of P.L.2013, c.95, sections 1 and 2 of P.L.2014, c.25, sections 1 and 2 of P.L.2015, c.108, sections 1 and 2 of P.L.2016, c.32, as amended by P.L.2017, c.14, sections 1 and 2 of P.L.2017, c.143, as amended by P.L.2017, c.326, sections 1 and 2 of P.L.2018, c.85, as amended by P.L.2018, c.137 and P.L.2019, c.12, sections 1 and 2 of P.L.2019, c.193, as amended by P.L.2019, c.514, P.L.2020, c.49, as amended by P.L.2021, c.21, and P.L.2021, c.203, as amended by P.L.2021, c.328, including amounts resulting from the low bid and final building cost reductions authorized pursuant to section 6 of P.L.1987, c.200, section 7 of P.L.1988, c.133, section 6 of P.L.1989, c.189, section 6 of P.L.1990, c.99, section 6 of P.L.1991, c.325, section 6 of P.L.1992, c.38, section 6 of P.L.1993, c.193, section 6 of P.L.1994, c.106, section 6 of P.L.1995, c.219, section 6 of P.L. 1996, c.85, section 6 of P.L.1997, c.221, section 7 of P.L.1998, c.84, section 6 of P.L.1999, c.174, section 6 of P.L.2000, c.92, section 6 of P.L.2001, c.222, section 6 of P.L.2002, c.70, section 6 of P.L.2003, c.158, section 6 of P.L.2004, c.109, section 6 of P.L.2005, c.196, section 6 of P.L.2006, c.68, section 6 of P.L.2007, c.139, section 6 of P.L.2008, c.68, section 7 of P.L.2009, c.102, section 6 of P.L.2010, c.63, section 6 of P.L.2011, c.93, section 6 of P.L.2012, c.43, section 6 of P.L.2013, c.95, section 7 of P.L.2014, c.25, section 7 of P.L.2015, c.108, section 7 of P.L.2016, c.32, as amended by P.L.2017, c.14, section 7 of P.L.2017, c.143 as amended by P.L.2017, c.326, section 7 of P.L.2018, c.85, as amended by P.L.2018, c.137 and P.L.2019, c.12, section 7 of P.L.2019, c.193, as amended by P.L.2019, c.514, section 7 of P.L.2020, c.49, as amended by P.L.2021, c.21, and P.L.2021, c.203, as amended by P.L.2021, c.328, and from any repayments of loans and interest from the Clean Water State Revolving Fund, the "Wastewater Treatment Fund," the "Water Supply Fund," the "1992 Wastewater Treatment Fund," the "2003 Water Resources and Wastewater Treatment Fund," and amounts deposited therein during State fiscal year 2022 and State fiscal year 2023 pursuant to the provisions of section 16 of P.L.1985, c.329, and section 2 of P.L.2009, c.77 and any amendatory and supplementary acts thereto, including any Clean Water State Revolving Fund Accounts contained within the "Wastewater Treatment Fund," and from any repayment of loans and interest from the Drinking Water State Revolving Fund.

     e.  The department is authorized to make zero interest and principal forgiveness Sandy financing loans to or on behalf of the project sponsors for the Sandy environmental infrastructure projects listed in subsection a. of section 3 of this act for clean water projects, in a manner consistent with the Federal Disaster Relief Appropriations Act, up to the individual amounts indicated, except that any such amount may be reduced by the Commissioner of Environmental Protection pursuant to section 7 of this act, or if a project fails to meet the requirements of section 4, 5, or 7 of this act, provided a maximum of $300 million shall be provided for Sandy financing loans for clean water projects to provide financial assistance to communities affected by the Storm Sandy, and for projects whose purpose is to reduce flood damage risk and vulnerability or to enhance resiliency to rapid hydrologic change or a natural disaster.

     f.  For the purposes of this act:

     "Department" means the Department of Environmental Protection.

     "Federal Disaster Relief Appropriations Act" means the "Disaster Relief Appropriations Act, 2013," Pub.L.113-2, and any amendatory and supplementary acts thereto.

     "Sandy financing" means grants, zero interest loans or principal forgiveness loans provided by the Department of Environmental Protection from funds made available to the State for clean water or drinking water projects, or clean water or drinking water project match, pursuant to the Federal Disaster Relief Appropriations Act.

     "Trust" means the New Jersey Infrastructure Bank created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4).

     2.  a.  (1) The department is authorized to expend funds for the purpose of making supplemental zero interest 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 DEP Loan Amount

Estimated Total Loan Amount

Camden County MUA

S340640-18R

$7,500,000

$10,000,000

Clinton Town

S340924-07R

$600,000

$800,000

Hoboken City

S340635-06R

$24,750,000

$33,000,000

Jersey City MUA

S340928-15R

$2,625,000

$3,500,000

Newark City

S340815-24R

$15,750,000

$21,000,000

North Bergen MUA

S340652-14R

$6,150,000

$8,200,000

Ocean Township. SA

S340750-14R

$750,000

$1,000,000

Passaic Valley SC

S340689-40R

$1,125,000

$1,500,000

Plumsted Township

S340607-03R

$7,500,000

$10,000,000

Rockaway Valley RSA

S340821-07R

$2,250,000

$3,000,000

Paterson City

S340850-03-1

$1,912,500

$2,550,000

Somerville Borough

S342013-01-1

$1,387,500

$1,850,000

Total Projects: 12

$72,300,000

$96,400,000

 

     (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 section 7 of this act and the loan amounts certified by the Commissioner of Environmental Protection in State fiscal years 2017, 2018, 2019, 2020, and 2021 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the department pursuant to section 4 of P.L.1985, c.329.  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 4, 5, or 7 of this act.

     (3) The zero interest loans for the projects authorized in this subsection shall have priority over projects listed in subsection a. of section 3 of this act.

     b.  (1) The department 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 DEP Loan Amount

Estimated Total Loan Amount

National Park Borough

0812001-004R

$750,000

$1,000,000

Newark City

0714001-016R

$2,250,000

$3,000,000

North Jersey District Water Supply Comm.

1613001-025R

$19,125,000

$25,500,000

Total Projects: 3

$22,125,000

$29,500,000

 

     (2) The loans authorized in this subsection shall be made for the difference between the allowable loan amount required by these projects based upon final building costs pursuant to section 7 of this act and the loan amounts certified by the Commissioner of Environmental Protection in State fiscal years 2018, 2019 and 2020 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the department pursuant to section 5 of P.L.1981, c.261.  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 4, 5, or 7 of this act.

     (3) The zero interest loans for the projects authorized in this subsection shall have priority over projects listed in subsection b. of section 3 of this act.

     c.  The department is authorized to adjust the allowable department loan amount for projects authorized in this section to between zero percent and 100 percent of the total allowable loan amount, and, if the department 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 construction loan component of the project was certified by the department, and for 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 2023 financing program.

     3.  a.  (1) The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2023 Clean Water Project Eligibility List":

 

Project Sponsor

Project Number

Estimated Allowable DEP Loan Amount

Estimated Total Loan Amount

Musconetcong SA

S340384-09

$4,650,000

$6,200,000

Camden County MUA

S340640-20

$2,250,000

$3,000,000

Camden County MUA

S345040-01

$1,035,000

$1,380,000

Camden City

S340366-15

$9,997,500

$13,330,000

Jersey City MUA

S340928-21

$9,750,000

$13,000,000

Jersey City MUA

S340928-24

$81,000,000

$108,000,000

Elizabeth City

S345070-01

$3,000,001

$4,000,001

Bayonne City

S340399-31

$3,750,000

$5,000,000

Long Branch SA

S340336-08

$1,305,525

$1,740,700

Ocean County UA

S340372-63

$1,650,000

$2,200,000

Hoboken City

S340635-09

$375,000

$500,000

Mount Laurel Township MUA

S340943-06

$6,000,000

$8,000,000

North Hudson SA

S340952-34

$900,000

$1,200,000

North Hudson SA

S340952-33

$20,250,000

$27,000,000

North Hudson SA

S340952-31

$675,000

$900,000

North Hudson SA

S345190-01

$4,500,000

$6,000,000

North Hudson SA

S340952-38

$1,013,400

$1,351,200

Perth Amboy City

S345220-01

$750,000

$1,000,000

Hackensack City

S340923-13

$11,400,000

$15,200,000

Hackensack City

S340923-14

$6,000,000

$8,000,000

Passaic Valley SC

S340689-37

$91,125,000

$121,500,000

Passaic Valley SC

S345200-01

$7,125,000

$9,500,000

Pennsville SA

S340870-05

$3,000,000

$4,000,000

Bergen County UA

S340386-23

$14,025,000

$18,700,000

Logan Township MUA

S340123-02

$9,000,000

$12,000,000

Bergen County UA

S340386-21

$5,700,000

$7,600,000

Linden Roselle SA

S340299-08

$20,250,000

$27,000,000

Passaic Valley SC

S340689-50

$6,600,000

$8,800,000

Gloucester County UA

S340902-15

$8,625,000

$11,500,000

Allentown Borough

S340567-05

$3,825,000

$5,100,000

Stony Brook RSA

S340400-11

$16,500,000

$22,000,000

Evesham MUA

S340838-09

$375,000

$500,000

Rutgers, The State University of New Jersey

S340500-01

$28,125,000

$37,500,000

Willingboro MUA

S340132-09

$6,750,000

$9,000,000

Rockaway Valley RSA

S340821-08

$11,625,000

$15,500,000

Wildwood City

S340664-06

$11,784,758

$15,713,010

New Jersey Water Supply Authority

S340421-02

$71,250,000

$95,000,000

Long Branch SA

S340336-09

$4,200,000

$5,600,000

Stafford Township

S340946-08

$2,625,000

$3,500,000

Stafford Township

S340946-07

$3,750,000

$5,000,000

Vernon Township

S340745-03

$1,875,000

$2,500,000

Delran Township

S340794-10

$1,575,000

$2,100,000

Hopatcong Borough

S340488-07

$60,000

$80,000

Tuckerton Borough

S340034-05

$2,475,000

$3,300,000

Atlantic County UA

S340809-30

$7,575,000

$10,100,000

Toms River MUA

S340145-08

$1,018,800

$1,358,400

Two Rivers Water Reclamation Authority

S340117-09

$3,150,000

$4,200,000

Northwest Bergen County UA

S340700-19

$6,099,338

$8,132,450

Two Rivers Reclamation Authority

S340117-10

$2,475,000

$3,300,000

Franklin Township SA

S340839-09

$5,625,000

$7,500,000

Parsippany Troy Hills Township

S340886-05

$8,800,125

$11,733,500

Berkeley Township SA

S340969-14

$2,625,000

$3,500,000

Scotch Plains Township

S340512-01

$2,025,000

$2,700,000

Burlington Township

S340712-17

$750,000

$1,000,000

Hopewell Township

S340282-03

$1,230,000

$1,640,000

Mantua Township MUA

S340514-03

$1,012,500

$1,350,000

Middlesex Borough

S340698-03

$900,000

$1,200,000

Pennsville SA

S340870-04

$1,200,000

$1,600,000

Red Bank Borough

S340528-01

$3,375,000

$4,500,000

North Haledon Borough

S340229-02

$75,000

$100,000

North Haledon Borough

S340229-01

$765,771

$1,021,028

Haddon Heights Borough

S340877-02

$82,500

$110,000

Emerson Borough

S340497-01

$75,000

$100,000

Emerson Borough

S340497-02

$337,500

$450,000

Mount Arlington Borough

S340451-05

$159,589

$212,785

Medford Lakes Borough

S340319-03

$8,250,000

$11,000,000

Mendham Borough

S340159-03

$2,400,000

$3,200,000

Hamburg Borough

S340149-03

$75,000

$100,000

Long Beach Township

S340023-07

$3,450,000

$4,600,000

Borough of Wenonah

S340531-01

$997,500

$1,330,000

Seaside Park Borough

S340083-04

$3,000,000

$4,000,000

Ship Bottom Borough

S340311-05

$3,750,000

$5,000,000

Passaic Valley SC

S340689-45

$7,657,577

$10,210,102

Montville Township

S340931-04

$2,625,000

$3,500,000

Camden County MUA

S340640-26

$21,150,000

$28,200,000

Lower Township MUA

S340810-05

$22,500,000

$30,000,000

Mantua Township MUA

S340514-02

$1,687,500

$2,250,000

Little Egg Harbor Township

S340579-04

$1,530,000

$2,040,000

Gloucester Township

S340364-11

$712,500

$950,000

Gloucester Township

S340364-15

$1,087,500

$1,450,000

Northfield City

S340508-02

$112,500

$150,000

Spotswood Borough

S340510-01

$4,070,250

$5,427,000

North Hudson SA

S340952-36

$675,000

$900,000

Sussex County MUA

S342008-04

$8,250,000

$11,000,000

Atlantic City MUA

S340439-04

$2,300,000

$3,066,667

Sussex County MUA

S342008-06

$32,250,000

$43,000,000

Burlington City

S340140-02

$1,950,000

$2,600,000

Willingboro MUA

S340132-11

$7,500,000

$10,000,000

Bloomfield Township

S340516-01

$5,423,228

$7,230,970

Brick Township MUA

S340448-14

$1,500,000

$2,000,000

University Hospital

S340500-03

$5,850,000

$7,800,000

Ship Bottom Borough

S340311-04

$2,062,500

$2,750,000

Total Projects: 92

$704,668,362

$939,557,813

 

     (2) The department is authorized to make clean water project loans to the following municipalities receiving funding from the "Pinelands Infrastructure Trust Fund," established pursuant to section 14 of the "Pinelands Infrastructure Trust Bond Act of 1985," P.L.1985, c.302:

 

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

 

     b.  The following environmental infrastructure projects shall be known and may be cited as the "Storm Sandy and State Fiscal Year 2023 Drinking Water Project Eligibility List":

 

Project Sponsor

Project Number

Estimated Allowable DEP Loan Amount

Estimated Total Loan Amount

Newark City

0714001-020

$13,125,000

$17,500,000

Trenton City

1111001-011

$15,255,000

$20,340,000

Newark City

0714001-019

$9,375,000

$12,500,000

Newark City

0714001-021

$67,500,000

$90,000,000

Orange City

0717001-013

$525,000

$700,000

Bloomfield Township

0702001-003

$823,796

$1,098,395

NJ American Water Company, Incorporated

1345001-017

$7,575,000

$10,100,000

Trenton City

1111001-005

$179,250,000

$239,000,000

National Park Borough

0812001-005

$1,350,000

$1,800,000

Moorestown Township

0322001-001

$18,468,750

$24,625,000

Brick Township MUA

1506001-011

$15,667,500

$20,890,000

East Orange City

0705001-014

$24,750,000

$33,000,000

Highbridge Borough

1014001-004

$1,108,404

$1,477,872

East Greenwich

0803001-004

$1,950,000

$2,600,000

Lakeshore Company

1413001-001

$375,000

$500,000

Jersey City MUA

0906001-017

$1,305,180

$1,740,240

NJ American Water Company, Incorporated

2004002-012

$15,000,000

$20,000,000

Woodbine Borough

0516001-001

$3,750,000

$5,000,000

Newark City

0714001-018

$3,862,500

$5,150,000

Jersey City MUA

0906001-019

$5,025,000

$6,700,000

Wildwood City

0514001-006

$4,637,403

$6,183,204

Seaside Park Borough

1527001-004

$1,125,000

$1,500,000

NJ American Water Company, Incorporated

1345001-021

$19,758,750

$26,345,000

Brick Township MUA

1506001-014

$2,700,000

$3,600,000

Hightstown Borough

1104001-009

$712,500

$950,000

Jersey City MUA

0906001-025

$24,000,000

$32,000,000

Perth Amboy City

1216001-010

$1,238,649

$1,651,532

Jersey City MUA

0906001-009

$3,750,000

$5,000,000

Middlesex Water Company

1225001-028

$8,400,000

$11,200,000

Old Bridge MUA

1209002-005

$2,025,000

$2,700,000

Hoboken City

0905001-002

$6,000,000

$8,000,000

Clinton Town

1005001-010

$1,320,000

$2,640,000

Spotswood Borough

1224001-001

$2,582,936

$3,443,914

Point Pleasant  Borough

1525001-002

$2,100,000

$2,800,000

Glen Ridge Borough

0708001-008

$2,025,000

$2,700,000

Tuckerton Borough

1532002-007

$1,275,000

$1,700,000

Jersey City MUA

0906001-020

$4,965,000

$6,620,000

Jersey City MUA

0906001-021

$8,250,000

$11,000,000

Ship Bottom Borough

1528001-003

$7,500,000

$10,000,000

Allentown Borough

1302001-004

$1,746,720

$2,328,960

Jersey City MUA

0906001-015

$2,691,950

$3,589,266

Brick Township MUA

1506001-008

$4,912,500

$6,550,000

Middlesex Water Company

1225001-025

$42,750,000

$57,000,000

Brick Township MUA

1506001-009

$4,446,570

$5,928,760

Ship Bottom Borough

1528001-004

$3,150,000

$4,200,000

Clinton Town

1005001-012

$2,625,000

$3,500,000

Farmingdale Borough

1314001-002

$680,250

$907,000

Roosevelt Borough

1341001-007

$750,000

$1,000,000

NJ American Water Company, Incorporated

2004002-013

$12,000,000

$16,000,000

Clinton Town

1005001-013

$2,250,000

$3,000,000

Winslow Township

0436007-010

$2,868,750

$3,825,000

Mount Arlington Borough

1426005-001

$165,836

$250,285

Highbridge Borough

1014001-001

$75,000

$100,000

Total Projects: 53

$571,518,944

$762,934,428

 

     c.  The department is authorized to adjust the allowable department loan amount for projects authorized in this section to between zero percent and 100 percent of the total allowable loan amount, and, if the department 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 construction loan component of the project was certified by the department, and for which the trust issued an interim financing program loan, or, in the absence of an interim financing program loan, the terms and conditions of the State fiscal year 2023 financing program.

 

     4.  Any financing loan made by the department pursuant to this act shall be subject to the following requirements: 

     a.  The Commissioner Environmental Protection has certified that the project is in compliance with the provisions of P.L.1977, c.224, P.L.1985, c.329, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.225, or P.L.2003, c.162, and any rules and regulations adopted pursuant thereto;

     b. Except as otherwise provided in this subsection, a loan for an environmental infrastructure project listed in section 2 or 3 of this act shall be subject to the terms and conditions of the financing program year in which the construction loan component of the project was certified by the department, and for which the trust issued an interim financing program loan, or, in the absence of an interim financing program loan, the terms and conditions of the State fiscal year 2023 financing program.  Notwithstanding any provision of this act or a financial plan of the trust for State fiscal years 2018 through 2022 developed pursuant to section 21 of P.L.1985, c.334 (C.58:11B-21) or section 25 of P.L.1997, c.224 (C.58:11B-21.1) to the contrary, a loan for an environmental infrastructure project listed in section 2 or 3 of this act that is partially funded from the proceeds of bonds issued by the trust to the United States Environmental Protection Agency pursuant to the federal "Water Infrastructure Finance and Innovation Act of 2014," 33 U.S.C. s.3901 et seq., shall be subject to terms and conditions regulating the blending of federal and other funds that are consistent with those provisions of the financial plan of the trust for State fiscal year 2023 that reference the federal "Water Infrastructure Finance and Innovation Act of 2014;"

     c.  Notwithstanding the provisions of sections 2 and 3 of this act, the department allowable loan amount may be 100 percent of the total allowable loan amount for:

     (1) clean water project and drinking water project loans to (a) municipalities that do not satisfy the New Jersey Infrastructure Bank 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.), or (b) municipal, county, or regional sewerage authorities, or utilities authorities, that do not satisfy the New Jersey Infrastructure Bank credit policy but where the municipal participant through its service agreement with the authority or utility is under State financial supervision and oversight pursuant to the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), and the repayment obligation of the authority or utility is secured by the full faith and credit of the participating municipality pursuant to the service agreement;

     (2) 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); and

     (3) clean water loans to municipal, county, or regional sewerage authorities that qualify for Sewer Overflow and Stormwater Reuse grants for combined sewer overflows or stormwater management projects;

     d.  With the exception of a loan for which the department issues 100 percent of the loan amount pursuant to subsection b. of section 2, subsection c. of section 3, and subsection c. of this section, the loan shall be conditioned upon approval of a loan from the New Jersey Infrastructure Bank pursuant to P.L.    , c.     (pending before the Legislature as Senate Bill No. 2735 of 2022 and Assembly Bill No. 4067 of 2022), prior to June 30, 2022; 

     e.  The loan shall be repaid within a period not to exceed 30 years, or 35 years for loans funded pursuant to the federal "Water Infrastructure Finance and Innovation Act of 2014," 33 U.S.C. s.3901 et seq. as amended and supplemented, or 45 years for combined sewer overflow abatement projects, of the making of the loan; and

     f.     The loan shall be subject to any other terms and conditions as may be established by the commissioner and approved by the State Treasurer, which may include, notwithstanding any other provision of law to the contrary, subordination of a loan authorized in this act to loans made by the New Jersey Infrastructure Bank pursuant to P.L.    , c.    (pending before the Legislature as Senate Bill No. 2735 of 2022 and Assembly Bill No. 4067 of 2022), or to administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B 5).

 

     5.  Any Sandy financing loan made by the department pursuant to this act shall be subject to the following requirements:

     a.  The commissioner has certified that the project is in compliance with the provisions of Title X, Chapter 7 of the Federal Disaster Relief Appropriations Act;

     b.  The commissioner has certified that the project is in compliance with the provisions of P.L.1977, c.224, P.L.1985, c.329, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.225 or P.L.2003, c.162, and any rules and regulations adopted pursuant thereto; and

     c.  The loan shall be subject to any other terms and conditions as may be established by the commissioner and approved by the State Treasurer, which may include, notwithstanding any other provision of law to the contrary, subordination of a loan authorized in this act to loans made by the trust pursuant to P.L.    , c.     (pending before the Legislature as Senate Bill No. 2735 of 2022 and Assembly Bill No. 4067 of 2022) prior to June 30, 2023, or to administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5).

 

     6.  The eligibility lists and authorization for the making of loans pursuant to sections 2 and 3 of this act shall expire on July 1, 2023, and any project sponsor which has not executed and delivered a loan agreement with the department for a loan authorized in this act shall no longer be entitled to that loan.

 

     7.  The Commissioner of Environmental Protection is authorized to reduce or increase the individual amount of loan funds made available to or on behalf of project sponsors pursuant to sections 2 and 3 of this act based upon final or low bid building costs defined in and determined in accordance with rules and regulations adopted by the commissioner pursuant to section 4 of P.L.1985, c.329, section 2 of P.L.1999, c.362 (C.58:12A-12.2), or section 5 of P.L.1981, c.261, provided that the total loan amount does not exceed the estimated total allowable loan amount.  The commissioner is authorized to reduce or increase the individual amount of loan funds made available to or on behalf of project sponsors pursuant to sections 2 and 3 of this act in an amount not to exceed 10 percent of the total allowable loan amount based upon additional project costs to comply with the department's guidance for asset management, emergency response, flood protection, and auxiliary power.

 

     8.  The expenditure of the funds appropriated by this act is subject to the provisions and conditions of P.L.1977, c.224, P.L.1085, c.302, P.L.1985, c.329, P.L.1989, c.181, P.L.1992, c.88, P.L.1997, c.223, P.L.1997, c.225 or P.L.2003, c.162, and the rules and regulations adopted by the Commissioner of Environmental Protection pursuant thereto, and the provisions of the Federal Disaster Relief Appropriations Act, the Federal Clean Water Act, and the Federal Safe Drinking Water Act, and any amendatory and supplementary acts thereto.

 

     9.  The department shall provide general technical assistance to any project sponsor requesting assistance regarding environmental infrastructure project development or applications for funds for a project.

 

     10.  a.  Prior to repayment to the Clean Water State Revolving Fund pursuant to sections 1 and 2 of P.L.2009, c.77 and any amendatory and supplementary acts thereto, prior to repayment to the "Wastewater Treatment Fund" pursuant to the provisions of section 16 of P.L.1985, c.329, prior to repayment to the "1992 Wastewater Treatment Fund" pursuant to the provisions of section 28 of P.L.1992, c.88, prior to repayment to the Drinking Water State Revolving Fund, prior to repayment to the "Stormwater Management and Combined Sewer Overflow Abatement Fund" pursuant to the provisions of section 15 of P.L.1989, c.181, prior to repayment to the "2003 Water Resources and Wastewater Treatment Fund" pursuant to the provisions of section 20 of P.L.2003, c.162, prior to repayment to the "Water Supply Fund" pursuant to the provisions of section 15 of P.L.1981, c.261, or prior to the repayment to the "Pinelands Infrastructure Trust Fund" pursuant to the provisions of section 5 of P.L.1985, c.302, repayments of loans made pursuant to these acts may be utilized by the New Jersey Infrastructure Bank established pursuant to P.L.1985, c.334 (C.58:11B 1 et seq.), as amended and supplemented by P.L.1997, c.224, under terms and conditions established by the commissioner and trust, approved by the State Treasurer, and consistent with the provisions of P.L.1985, c.334 (C.58:11B 1 et seq.) and federal tax, environmental or securities law, to the extent necessary to secure repayment of trust bonds issued to finance loans approved pursuant to P.L.    , c.    (pending before the Legislature as Senate Bill No. 2735 of 2022 and Assembly Bill No. 4067 of 2022), and to secure the 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.

     b.  Prior to repayment to the Clean Water State Revolving Fund pursuant to section 1 and 2 of P.L.2009, c.77 and any amendatory and supplementary acts thereto, prior to repayment to the "Wastewater Treatment Fund" pursuant to the provisions of section 16 of P.L.1985, c.329, prior to repayment to the "1992 Wastewater Treatment Fund" pursuant to the provisions of section 28 of P.L.1992, c.88, prior to repayment to the "Water Supply Fund" pursuant to the provisions of section 15 of P.L.1981, c.261, prior to repayment to the Drinking Water State Revolving Fund, prior to repayment to the "2003 Water Resources and Wastewater Treatment Fund" pursuant to the provisions of section 20 of P.L.2003, c.162, prior to repayment to the "Stormwater Management and Combined Sewer Overflow Abatement Fund" pursuant to the provisions of section 15 of P.L.1989, c.181, or prior to repayment to the "Pinelands Infrastructure Trust Fund" pursuant to the provisions of section 5 of P.L.1985, c.302, the trust is further authorized to utilize repayments of loans made pursuant to P.L.1989, c.189, P.L.1990, c.99, P.L.1991, c.325, P.L.1992, c.38, P.L.1993, c.193, P.L.1994, c.106, P.L.1995, c.219, P.L.1996, c.85, P.L.1997, c.221, P.L.1998, c.84, P.L.1999, c.174, P.L.2000, c.92, P.L.2001, c.222, P.L.2002, c.70, P.L.2003, c.158, P.L.2004, c.109, P.L.2005, c.196, P.L.2006, c.68, P.L.2007, c.139, P.L.2008, c.68, P.L.2009, c.102, P.L.2010, c.63, P.L.2011, c.93, P.L.2012, c.43, P.L.2013, c.95, P.L.2014, c.25, P.L.2015, c.108, P.L.2016, c.32, P.L.2017, c.143, as amended by P.L.2017, c.326, P.L.2018, c.85, as amended by P.L.2018, c.137, P.L.2019, c.12, P.L.2019, c.193, as amended by P.L.2019, c.514, P.L.2020, c.49, as amended by P.L.2021, c.21, P.L.2021, c.203, as amended by P.L.2021, c.328, or P.L.    , c.    (pending before the Legislature as this bill) to secure repayment of trust bonds issued to finance loans approved 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, 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, P.L.2020, c.48, as amended by P.L.2021, c.22, P.L.2021, c.204, as amended by P.L.2021, c.316, or P.L.    , c.    (pending before the Legislature as Senate Bill No. 2735 of 2022 and Assembly Bill No. 4067 of 2022), and to secure the administrative fees payable to the trust under these loans pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5).

     c.  To the extent that any loan repayment sums are used to satisfy any trust bond repayment or administrative fee payment deficiencies, the trust shall repay such sums to the department for deposit into the Clean Water State Revolving Fund, the "Wastewater Treatment Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the Drinking Water State Revolving Fund, the "2003 Water Resources and Wastewater Treatment Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund," or the "Pinelands Infrastructure Trust Fund," as appropriate, from amounts received by or on behalf of the trust from project sponsors causing any such deficiency.

 

     11.  The Commissioner of Environmental Protection is authorized to enter into capitalization grant agreements as may be required pursuant to the Federal Disaster Relief Appropriations Act, the Federal Clean Water Act, or the Federal Safe Drinking Water Act.

 

     12.  There is appropriated to the New Jersey Infrastructure Bank established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) from repayments of loans and interest deposited in any account, on or before June 30, 2023, including the "Clean Water State Revolving Fund," the "1992 Wastewater Treatment Fund," the "Water Supply Fund," the "Stormwater Management and Combined Sewer Overflow Abatement Fund," the "2003 Water Resources and Wastewater Treatment Fund," or the Drinking Water State Revolving Fund, as appropriate, and from any net earnings received from the investment and reinvestment of such deposits, such sums as the chairperson or secretary of the trust shall certify to the Commissioner of Environmental Protection to be necessary and appropriate 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).

 

     13.  There is appropriated to the New Jersey Infrastructure Bank established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.), funds from the Federal Disaster Relief Appropriations Act deposited in any account including the Clean Water State Revolving Fund, the "Water Supply Fund," or the Drinking Water State Revolving Fund, as appropriate, funds transferred by the department to the New Jersey Infrastructure Bank pursuant to paragraph (21) of subsection a. of section 1 of P.L.    , c.     (pending before the Legislature as this bill), and funds from any net earnings received from the investment and reinvestment of such deposits, such sums as the chairperson of the trust certifies to the Commissioner of Environmental Protection to be necessary and appropriate 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).

 

     14.  This act shall take effect immediately.

STATEMENT

 

     This bill appropriates certain federal and State moneys to the Department of Environmental Protection (DEP) for the purpose of implementing the State Fiscal Year 2023 New Jersey Environmental Infrastructure Financing Program (NJEIFP), which is expected to finance up to $2.07 billion in water infrastructure projects for State Fiscal Year 2023.  The bill would appropriate these funds for the purpose of making loans to local governments and privately-owned water companies (project sponsors) for a portion of the costs of water infrastructure projects.  A companion bill, Assembly Bill No. 4067 of this session, would authorize the New Jersey Infrastructure Bank (NJIB) to execute loans using the funds appropriated to the DEP by this bill to finance a portion of the costs of the clean water and drinking water projects enumerated by the bill.

     The bill would authorize the DEP to use the moneys appropriated by the bill to fund the following projects:

     (1) in subsection a. of section 2 of the bill, a list of 12 projects to improve water discharge and treatment systems that had previously received a loan and require supplemental loans, representing $96.4 million in estimated total loan amounts;

     (2) in subsection b. of section 2 of the bill, a list of three projects to improve drinking water systems that had previously received a loan and require supplemental loans, representing $28.5 million in estimated total loan amounts;

     (3) in paragraph (1) of subsection a. of section 3 of the bill, the "Storm Sandy and State Fiscal Year 2023 Clean Water Project Eligibility List," a list of 92 projects to improve water discharge and treatment systems, representing $939.6 million in estimated total loan amounts;

     (4) in paragraph (2) of subsection a. of section 3 of the bill, a list of four projects in the Pinelands area that are receiving funding under the "Pinelands Infrastructure Trust Bond Act of 1985," P.L.1985, c.302, to improve water discharge and treatment systems, representing $15.3 million in estimated total loan amounts; and

     (5) in subsection b. of section 3 of the bill, the "Storm Sandy and State Fiscal Year 2023 Drinking Water Project Eligibility List," a list of 53 projects to improve drinking water systems, representing $762.9 million in estimated total loan amounts.

     Several projects in the "Storm Sandy and State Fiscal Year 2023 Clean Water Project Eligibility List" and the "Storm Sandy and State Fiscal Year 2023 Drinking Water Project Eligibility List,” representing $222.1 million in estimated total loan amounts, are eligible to receive long-term funding from the NJIB by the end of FY2022, and thus would not receive loans under the 2023 NJEIFP if they receive funding during FY2022.  They are included in these lists in the event that long-term financing cannot be secured by the end of FY2022.

     The bill would also appropriate the unexpended balances from various funds to the DEP, and allow the DEP to transfer moneys between various State funds, for the purpose of funding the NJEIFP and providing the State match for federal funding provided under the federal laws, including the Clean Water Act and Safe Drinking Water Act, as detailed in subsection a. of section 1 of the bill.  In addition, the bill appropriate to the DEP funds deposited in the "Clean Water State Revolving Fund" and the "Drinking Water State Revolving Fund" pursuant to the federal "Infrastructure Investment and Jobs Act," Pub. L. 117-58.

     The bill would authorize loans to certain project sponsors to include zero interest or principal forgiveness, subject to certain funding limits and restrictions detailed in subsections b. through e. of section 1 of the bill.  Projects designated for zero interest or principal forgiveness loans include projects that reduce or eliminate discharges from combined sewer overflow outfalls, water quality restoration projects, water and energy efficiency projects, and emerging contaminant projects.

     The bill would establish certain requirements on loans to project sponsors made by the DEP pursuant to the bill, as enumerated in section 4 of the bill.  The bill would also establish additional restrictions, described in section 5 of the bill, for "Sandy financing loans," which are those loans that utilize federal funding provided pursuant to the federal "Disaster Relief Appropriations Act, 2013," Pub.L.113-2.  Under the bill, the project lists and the DEP's authorization to utilize the funds appropriated by the bill would expire on July 1, 2023.

     The bill would also authorize the NJIB to utilize repayments of loans made using moneys from various State funds, enumerated in subsections a. and b. of section 10 of the bill, to recoup trust bond repayments and administrative fees that have not been paid by project sponsors instead of redepositing the money into the funds.  However, the bill would also require the NJIB to make a compensatory deposit into certain State funds, enumerated in subsection c. of section 10 of the bill, when the NJIB receives the deficient payments or fees from the project sponsor.  Finally, the bill would appropriate to the NJIB, from repayments of loans, interest payments, certain federal funds, and any earnings received from the investment of those funds, as enumerated in sections 12 and 13 of the bill, such amounts as the chairperson or secretary of the NJIB certifies are necessary and appropriate for deposit into one or more reserve funds established by the NJIB.

 

                                

     Appropriates funds to DEP for environmental infrastructure projects for FY2023.