Appropriates funds to DEP for environmental infrastructure projects for FY2027, the official text

SENATE, No. 4221

STATE OF NEW JERSEY

222nd LEGISLATURE

INTRODUCED MAY 11, 2026

Sponsored by:

Senator  BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

Senator  OWEN HENRY

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Senator  NICHOLAS P. SCUTARI

District 22 (Somerset and Union)

Assemblyman  JERRY WALKER

District 31 (Hudson)

Assemblyman  VINCENT M. "VINNIE" KEARNEY

District 21 (Middlesex, Morris, Somerset and Union)

Assemblyman  ANTHONY ANGELOZZI

District 8 (Atlantic and Burlington)

Co-Sponsored by:

Senators Amato, Testa, Bramnick, Space, Singer, Pennacchio,
Steinhardt, Assemblywoman Fantasia, Assemblymen Calabrese, Singh, Rumpf, Myhre,
Assemblywoman Brennan, Assemblymen Wainstein, Sampson and Macurdy

SYNOPSIS

Appropriates funds to DEP for environmental
infrastructure projects for FY2027.

CURRENT VERSION OF TEXT

As introduced.

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 2026 capitalization grant made available to the State for
clean water project loans and technical assistance 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, for clean water project loans and
technical assistance.

(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 technical assistance 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 technical assistance 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 2026 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, for drinking water project loans and technical
assistance.

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, 2027, for the purposes of clean water project loans and
technical assistance 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, 2027, 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, 2027, 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, 2027,
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, 2027,
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, 2027, 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, 2027, 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, 2027, 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
technical assistance 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, 2027, 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, 2027, 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, 2027, 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, 2027, 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, 2027, 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. 4220 of
the 2026-2027 session and Assembly Bill No. of the 2026-2027
session), as may be available on or before June 30, 2027, 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 $48 million
appropriated to the department for the capital construction of drinking water and
clean water infrastructure by the State fiscal year 2026 appropriations act,
P.L.2025, c.74, plus any appropriated funds designated in State fiscal years
2021, 2022, 2023, 2024, and 2025, 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) Of the funds appropriated
or reappropriated to the department for the capital construction of drinking
water and clean water infrastructure by the State fiscal year 2027
appropriations act, P.L.2026, c. , the department is
authorized to transfer up to $5 million to the trust for technical assistance
to disadvantaged communities.

(23) Of the funds appropriated
or reappropriated to the department for the capital construction of drinking
water and clean water infrastructure by the State fiscal year 2027
appropriations act, P.L.2026, c. , plus any appropriated funds
designated in State fiscal years 2021, 2022, 2023, 2024, and 2025, the
department is authorized to utilize up to $60 million for principal forgiveness
of up to $2 million per applicant to disadvantaged communities participating in
the department’s technical assistance program for construction costs associated
with clean water or drinking water environmental infrastructure projects.

(24) 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, 2027.

(25) Of the funds appropriated
or reappropriated to the department for the capital construction of drinking
water and clean water infrastructure by the State fiscal year 2027
appropriations act, P.L.2026, c. , plus any appropriated funds
designated in State fiscal years 2021, 2022, 2023, 2024, and 2025, the
department is authorized to utilize up to $60 million to provide grants of up
to $2 million per applicant to disadvantaged communities participating in the
Water Bank’s technical assistance program for planning and design costs
associated with clean water or drinking water environmental infrastructure
projects.

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, plus any appropriated but unallocated funds designated
in State fiscal year 2026 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
principal forgiveness issued pursuant to this paragraph shall not exceed $5
million per borrower whenever practicable.  For project costs greater than $5
million, 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
25 percent of the trust’s market rate.  For combined sewer overflow projects
that receive no principal forgiveness because principal-forgiveness funds
allocated to such projects are no longer available, the loan shall have a
blended interest rate of 25 percent of the trust’s market rate.

(2) A maximum of $30 million
in principal forgiveness, plus any appropriated but unallocated funds
designated in State fiscal year 2026 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 that meet “Clean
Water State Revolving Fund” affordability criteria.  The amount of principal
forgiveness issued pursuant to this paragraph shall be based on the applicable
tier of the department’s affordability score.  For a borrower satisfying Tier 1
of the department’s affordability score and project costs up to and including
$8 million, 100 percent of the principal of the loan shall be forgiven.  For a
borrower satisfying Tier 2 of the department’s affordability score and project
costs up to and including $7 million, 100 percent of the principal of the loan
shall be forgiven.  For project costs greater than $8 million in the case of a
Tier 1 borrower, and greater than $7 million in the case of a Tier 2 borrower,
the loan shall have a blended interest rate of 25 percent of the trust’s market
rate.  For combined sewer overflow projects that reduce or eliminate discharges
from combined sewer overflow outfalls that meet “Clean Water State Revolving
Fund” affordability criteria that receive no principal forgiveness because
principal-forgiveness funds allocated to such projects are no longer available,
the loan shall have a blended interest rate of 25 percent of the trust’s market
rate.

(3) A maximum of $18 million
in principal forgiveness, plus any appropriated but unallocated funds designated
in State fiscal year 2026 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 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, the loan shall have a blended
interest rate of 25 percent of the trust’s market rate.  For water quality
restoration projects that receive no principal forgiveness because
principal-forgiveness funds allocated to such projects are no longer available,
the loan shall have a blended interest rate of 25 percent of the trust’s market
rate.

(4) A maximum of $30 million
in principal forgiveness, plus any appropriated but unallocated funds
designated in State fiscal year 2026, for clean water 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.  The amount of a principal-forgiveness
loan issued pursuant to this paragraph shall be based on the applicable tier of
the department’s affordability score.  For a borrower satisfying Tier 1 of the
department’s affordability score and project costs up to and including $3
million, 100 percent of the principal of the loan shall be forgiven.  For a
borrower satisfying Tier 2 of the department’s affordability score and project
costs up to and including $2 million, 100 percent of the principal of the loan
shall be forgiven. For project costs greater than $3 million in the case of a
Tier 1 borrower or greater than $2 million in the case of a Tier 2 borrower,
the loan shall have a blended interest rate of 25 percent of the trust’s market
rate.  For clean water projects sponsored by applicants that meet the “Clean
Water State Revolving Fund” affordability criteria that receive no principal
forgiveness because principal-forgiveness funds allocated to such projects are
no longer available, the loan shall have a blended interest rate of 25 percent
of the trust’s market rate.

(5) A maximum of $12 million
in principal forgiveness, plus any appropriated but unallocated funds
designated in State fiscal year 2026, 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, the loan shall have a blended interest rate of
25 percent of the trust’s market rate.  For water and energy efficiency
projects that receive no principal forgiveness because principal-forgiveness
funds allocated to such projects are no longer available, the loan shall have a
blended interest rate of 25 percent of the trust’s market rate.

(6) A maximum of $34 million
in principal forgiveness 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.  For project costs up to and
including $10 million, 100 percent of the principal of the loan shall be
forgiven, whenever practicable.  For project costs greater than $10 million,
the loan shall have a blended interest rate of 25 percent of the trust’s market
rate.  For emerging contaminant projects that receive no principal forgiveness
because principal-forgiveness funds allocated to such projects are no longer
available, the loan shall have a blended interest rate of 25 percent of the
trust’s market rate.

(7) A maximum of $4 million in
principal forgiveness, plus any appropriated but unallocated funds designated
in State fiscal year 2026, 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.

(8) A maximum of $20 million
in principal forgiveness shall be issued as provided in subsection a. of
section 3 of this act to improve stormwater resilience.  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 25 percent of the
trust’s market rate.  For stormwater resilience projects that receive no
principal forgiveness because principal-forgiveness funds allocated to such
projects are no longer available, the loan shall have a blended interest rate
of 25 percent of the trust’s market rate.

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 $5 million of
Drinking Water State Revolving Fund loans, plus any appropriated but
unallocated funds designated in State fiscal year 2026 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 $1 million in the aggregate and shall not
exceed 50 percent of the total loan amount per project sponsor in an amount not
to exceed $2 million per project sponsor.  Project costs greater than $2
million shall have a loan funded at a blended interest rate of 25 percent of
the trust’s market rate;

(2) a maximum of $5 million in
principal forgiveness shall be available for drinking water systems that serve
fewer than 1,000 persons.  A loan issued pursuant to this paragraph shall have
100 percent principal forgiveness for drinking water systems that are
participating in the Community Engineering Corp or the Engineering Contract
with the New Jersey Water Association.  A loan issued pursuant to this
paragraph for drinking water systems that serve fewer than 1,000 persons that
are not participating in the Community Engineering Corp or the Engineering
Contract with the New Jersey Water Association shall have 100 percent principal
forgiveness of up to $2 million per applicant.  For project costs greater than
$2 million, the loan shall have a blended interest rate of 25 percent of the
trust’s market rate;

(3) a maximum of $22 million
of principal forgiveness 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 $3
million per applicant.  For project costs greater than $3 million, the loan
shall have a blended interest rate of 25 percent of the trust’s market rate.  For
emerging contaminant projects that receive no principal forgiveness because
principal-forgiveness funds allocated to such projects are no longer available,
the loan shall have a blended interest rate of 25 percent of the trust’s market
rate;

(4) up to $10 million of the
sums appropriated to the department from the federal “Infrastructure Investment
and Jobs Act,” Pub. L. 117-58, may be issued for principal forgiveness for
drinking water projects other than those to address emerging contaminants or
lead that meet the affordability criteria of the department. A maximum of $10
million of principal forgiveness pursuant to this paragraph shall be available
for up to 100 percent of the total fund loan amount up to and including $10
million for a borrower satisfying the department’s affordability criteria whose
project is identified as among the department’s highest ranked drinking water
projects.  A maximum of $19 million of principal forgiveness shall be available
for up to 100 percent of the total fund loan amount up to and including $3
million for borrowers satisfying the department’s Tier 1 affordability score
and up to and including $2 million for borrowers satisfying the department’s
Tier 2 affordability score.  For projects that would otherwise qualify under
this subsection for principal forgiveness that receive no principal forgiveness
because principal-forgiveness funds allocated to such projects are no longer
available, the loan shall have a blended interest rate of 25 percent of the
trust’s market rate;

(5) up to $146 million plus
any appropriated but unallocated funds designated in State fiscal year 2026 may
be issued for principal-forgiveness loans for drinking water systems that meet
the department’s affordability criteria pursuant to the State’s lead service
line replacement program to finance lead service line replacements.  The amount
of a principal-forgiveness loan issued pursuant to this paragraph shall be
based on the applicable tier of the department’s affordability score.  For a
borrower satisfying Tier 1 of the department’s affordability score, the amount
of principal forgiveness shall not exceed 80 percent of the total loan amount
of up to $16 million per water system.  For project costs up to and including
$20 million, 80 percent of the principal of the loan shall be forgiven and the
remaining 20 percent of the loan shall have a blended interest rate of 50
percent of the trust’s market rate.  For project costs greater than $20
million, the loan shall have a blended interest rate of 25 percent of the trust’s
market rate.  For a borrower satisfying Tier 2 of the department’s
affordability score, the amount of principal forgiveness shall not exceed 50
percent of the total loan amount of up to $10 million per water system.  For
project costs up to and including $20 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 $20 million, the loan shall have a blended interest rate of
25 percent of the trust’s market rate.  For lead service line replacement
projects that receive no principal forgiveness because principal-forgiveness
funds allocated to such projects are no longer available, the loan shall have a
blended interest rate of 20 percent of the trust’s market rate; and

(6) a maximum of $4.5 million
in principal forgiveness shall be available for capital improvement projects
aimed at strengthening the resilience of water supply infrastructure.  The
amount of principal forgiveness 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, the loan shall have a blended interest rate of 25 percent of the
trust’s market rate.

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.

The department is authorized
to increase the maximum amounts available for principal forgiveness pursuant to
this subsection or subsection b. of this section, to the extent additional
funds are available.

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, P.L.2021, c.203,
as amended by P.L.2021, c.328, P.L.2022, c.99, as amended by P.L.2023, c.6,
P.L.2023, c.120, as amended by P.L.2023, c.344, P.L.2024, c.35, as amended by
P.L.2025, c.10, P.L.2025, c.109, as amended by P.L.2025, c.182, and this act,
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, P.L.2021, c.203, as amended by
P.L.2021, c.328, P.L.2022, c.99, as amended by P.L.2023, c.6, P.L.2023, c.120,
as amended by P.L.2023, c.344, P.L.2024, c.35, as amended by P.L.2025, c.10, P.L.2025,
c.109, as amended by P.L.2025, c.182, and this act, 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 2024 and State fiscal year 2025 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.  The department is
authorized to increase the aggregate sums specified in subsections b. and c. of
this section by the amount of interest accrued pursuant to a short-term or
temporary loan made to a project sponsor pursuant to the Interim Environmental
Financing Program.

g.  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.

“JMEUC” means the Joint
Meeting of Essex and Union Counties.

“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.

“Technical assistance” means
all services and assistance provided for the benefit of eligible project
sponsors, including, but not limited to, public engagement services, technical
assistance and expertise, and community education, for the purposes of
identifying and pursuing a clean water or drinking water project, as described
in the financial plan 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).

“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 Municipal
Utilities Authority

S340640-32R

$15,000,000

$20,000,000

Camden County Municipal
Utilities Authority

S340640-33R

$9,075,000

$12,100,000

Elizabeth City

S340942-20R

$4,350,000

$5,800,000

Hoboken City

S340635-08R

$7,875,000

$10,500,000

Jersey City Municipal Utilities
Authority

S340928-37R

$32,775,000

$43,700,000

North Bergen Municipal Utilities
Authority

S340652-16R

$13,200,000

$17,600,000

North Hudson Sewer Authority

S340952-37R

$2,550,000

$3,400,000

North Hudson Sewer Authority

S340952-40R

$3,750,000

$5,000,000

North Hudson Sewer Authority

S340952-42R

$17,925,000

$23,900,000

Passaic Valley Sewerage Commission

S340689-51R

$45,600,000

$60,800,000

Passaic Valley Sewerage Commission

S340689-37R

$24,000,000

$32,000,000

Ridgefield Park Village

S340688-06R

$1,425,000

$1,900,000

Total Projects: 12

$177,525,000

$236,700,000

(2) The loans authorized in
this subsection shall be made to or on behalf of the project sponsors listed,
up to the individual amounts indicated, 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

Brick Township Municipal Utilities
Authority

1506001-011R

$2,812,500

$3,750,000

Camden City

0408001-001R

$9,750,000

$13,000,000

East Orange City

0705001-014R

$1,500,000

$2,000,000

New Brunswick City

1214001-005R

$56,778,750

$75,705,000

Total Projects: 4

$70,841,250

$94,455,000

(2) The loans authorized in
this subsection shall be made to or on behalf of the project sponsors listed,
up to the individual amounts indicated, 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 2027 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 2027 Clean Water Project Eligibility List”:

Project Sponsor

Project Number

Estimated Allowable DEP Loan Amount

Estimated Total Loan Amount

Oakland Borough

S340418-06

$5,790,000

$7,720,000

Rahway Valley Sewerage
Authority

S340547-17

$4,500,000

$6,000,000

Rahway Valley Sewerage Authority

S340547-18

$5,625,000

$7,500,000

Mendham Borough

S340159-04

$4,125,000

$5,500,000

Newark City

S340815-25

$750,000

$1,000,000

Berkeley Heights Township

S340385-05

$5,625,000

$7,500,000

Camden County Municipal
Utilities Authority

S340640-32

$26,925,000

$35,900,000

Montgomery Township

S340130-03

$21,750,000

$29,000,000

Newton Town

S340449-09

$5,250,000

$7,000,000

Montgomery Township

S340130-05

$14,812,500

$19,750,000

Camden City

S340366-14

$7,027,500

$9,370,000

Jersey City Municipal Utilities
Authority

S340928-37

$37,651,862

$50,202,482

Middlesex County Utilities
Authority

S340699-18

$15,750,000

$21,000,000

Middlesex County
Utilities Authority

S340699-21

$26,625,000

$35,500,000

Middlesex County
Utilities Authority

S340699-17

$19,500,000

$26,000,000

North Bergen Municipal
Utilities Authority

S340652-16

$46,500,000

$62,000,000

Hoboken City

S340635-08

$28,500,000

$38,000,000

Paterson City

S340850-07

$3,000,000

$4,000,000

Elizabeth City

S340942-20

$17,250,000

$23,000,000

Elizabeth City

S345070-01

$3,000,001

$4,000,001

Camden County Municipal
Utilities Authority

S340640-33

$21,750,000

$29,000,000

Kearny Town

S340259-11

$12,750,000

$17,000,000

Ridgefield Park Village

S340688-06

$9,150,000

$12,200,000

Paterson City

S340850-08

$900,000

$1,200,000

Bayshore Regional Sewer Authority

S340697-07

$23,625,000

$31,500,000

Ocean County Utilities
Authority

S340372-64

$37,500,000

$50,000,000

Bayshore Regional Sewer
Authority

S340697-09

$3,847,350

$5,129,800

North Hudson Sewer
Authority

S340952-42

$40,125,000

$53,500,000

North Hudson Sewer
Authority

S340952-40

$17,625,000

$23,500,000

North Hudson Sewer
Authority

S340952-37

$9,750,000

$13,000,000

North Hudson Sewer
Authority

S340952-39

$13,500,000

$18,000,000

Perth Amboy City

S340435-22

$5,250,000

$7,000,000

Verona Township

S340533-05

$1,875,000

$2,500,000

Hackensack City

S340923-16

$10,500,000

$14,000,000

Millville City

S340921-09

$8,250,000

$11,000,000

Ship Bottom Borough

S340311-06

$2,212,500

$2,950,000

Passaic Valley Sewerage
Commission

S340689-37

$91,125,000

$121,500,000

Passaic Valley Sewerage Commission

S340689-44

$18,000,000

$24,000,000

Passaic Valley Sewerage
Commission

S345200-01

$7,500,000

$10,000,000

Passaic Valley Sewerage
Commission

S340689-51

$92,437,500

$123,250,000

Passaic Valley Sewerage Commission

S340689-49

$222,102,676

$296,136,901

Passaic Valley Sewerage Commission

S340689-33

$80,250,000

$107,000,000

Mount Laurel Township
Municipal Utilities Authority

S340943-08

$5,400,000

$7,200,000

Pennsville Sewerage
Authority

S340870-05

$7,500,000

$10,000,000

Beach Haven Borough

S344220-01

$2,700,000

$3,600,000

Stony Brook Regional Sewer
Authority

S340400-12

$17,400,000

$23,200,000

Ocean County Utilities Authority

S340372-78

$862,500

$1,150,000

Bergen County Utilities
Authority

S340386-23

$45,000,000

$60,000,000

Camden County Municipal
Utilities Authority

S340640-44

$1,275,000

$1,700,000

Linden Roselle Sewer
Authority

S340299-08

$20,250,000

$27,000,000

Flemington Borough

S340440-06

$1,102,500

$1,470,000

Elizabeth City (JMEUC)

S340686-11b

$4,800,000

$6,400,000

Newark City (JMEUC)

S340686-11g

$1,042,500

$1,390,000

East Orange City (JMEUC)

S340686-11a

$508,500

$678,000

Union Township (JMEUC)

S340686-11k

$1,837,500

$2,450,000

Irvington Township (JMEUC)

S340686-11d

$1,687,500

$2,250,000

West Orange Township (JMEUC)

S340686-11l

$1,200,000

$1,600,000

Maplewood Township (JMEUC)

S340686-11e

$712,500

$950,000

Hillside Township (JMEUC)

S340686-11c

$711,000

$948,000

Summit City (JMEUC)

S340686-11j

$900,000

$1,200,000

Millburn Township (JMEUC)

S340686-11f

$650,250

$867,000

South Orange Village
Township (JMEUC)

S340686-11i

$531,000

$708,000

Roselle Park Borough (JMEUC)

S340686-11h

$390,000

$520,000

Berkeley Township

S344020-03

$1,612,500

$2,150,000

Bergen County Utilities
Authority

S340386-26

$4,500,000

$6,000,000

Camden County Municipal
Utilities Authority

S340640-37

$31,800,000

$42,400,000

East Orange City (JMEUC)

S340686-12a

$1,800,000

$2,400,000

Elizabeth City (JMEUC)

S340686-12b

$20,625,000

$27,500,000

Hillside Township (JMEUC)

S340686-12c

$2,700,000

$3,600,000

Irvington Township (JMEUC)

S340686-12d

$7,050,000

$9,400,000

Maplewood Township (JMEUC)

S340686-12e

$2,767,500

$3,690,000

Millburn Township (JMEUC)

S340686-12f

$2,460,000

$3,280,000

Newark City (JMEUC)

S340686-12g

$4,125,000

$5,500,000

Roselle Park Borough (JMEUC)

S340686-12h

$1,267,500

$1,690,000

South Orange Village
Township (JMEUC)

S340686-12i

$1,875,000

$2,500,000

Summit City (JMEUC)

S340686-12j

$3,600,000

$4,800,000

Union Township (JMEUC)

S340686-12k

$7,650,000

$10,200,000

West Orange Township (JMEUC)

S340686-12l

$4,875,000

$6,500,000

Bergen County Utilities
Authority

S340386-13

$63,750,000

$85,000,000

East Orange City (JMEUC)

S340686-08a

$1,443,750

$1,925,000

Elizabeth City (JMEUC)

S340686-08b

$16,188,750

$21,585,000

Hillside Township (JMEUC)

S340686-08c

$2,141,250

$2,855,000

Irvington Township (JMEUC)

S340686-08d

$5,538,750

$7,385,000

Maplewood Township (JMEUC)

S340686-08e

$2,178,750

$2,905,000

Millburn Township (JMEUC)

S340686-08f

$1,942,500

$2,590,000

Newark City (JMEUC)

S340686-08g

$3,262,500

$4,350,000

Roselle Park Borough (JMEUC)

S340686-08h

$1,020,000

$1,360,000

South Orange Village Township (JMEUC)

S340686-08i

$1,515,000

$2,020,000

Summit (JMEUC) City

S340686-08j

$2,842,500

$3,790,000

Union Township (JMEUC)

S340686-08k

$6,022,500

$8,030,000

West Orange Township (JMEUC)

S340686-08l

$3,847,500

$5,130,000

Lambertville Municipal
Utilities Authority

S340882-11

$1,575,000

$2,100,000

Lakehurst Borough

S340150-01

$1,200,000

$1,600,000

Landis Sewerage
Authority

S340461-07

$2,250,000

$3,000,000

Rockaway Valley Regional Sewer
Authority

S340821-11

$10,125,000

$13,500,000

Cumberland County
Utilities Authority

S340550-09

$10,500,000

$14,000,000

Seaside Heights Borough

S340236-02

$4,125,000

$5,500,000

South Monmouth Regional Sewer
Authority

S340377-08

$1,725,000

$2,300,000

Passaic Valley Sewerage
Commission

S340689-57

$32,175,000

$42,900,000

East Orange City (JMEUC)

S340686-13a

$339,750

$453,000

Elizabeth City (JMEUC)

S340686-13b

$3,210,000

$4,280,000

Hillside Township (JMEUC)

S340686-13c

$480,000

$640,000

Irvington Township (JMEUC)

S340686-13d

$1,147,500

$1,530,000

Maplewood Township (JMEUC)

S340686-13e

$487,500

$650,000

Millburn Township (JMEUC)

S340686-13f

$435,000

$580,000

Newark City (JMEUC)

S340686-13g

$712,500

$950,000

Roselle Park Borough (JMEUC)

S340686-13h

$255,000

$340,000

South Orange Village
Township (JMEUC)

S340686-13i

$355,500

$474,000

Summit City (JMEUC)

S340686-13j

$618,750

$825,000

Union Township (JMEUC)

S340686-13k

$1,237,500

$1,650,000

West Orange Township (JMEUC)

S340686-13l

$810,000

$1,080,000

Hamilton Township

S340898-06

$3,037,500

$4,050,000

South Monmouth Regional
Sewer Authority

S340377-07

$2,827,500

$3,770,000

Long Branch Sewerage Authority

S340336-11

$1,837,500

$2,450,000

Maple Shade Township

S340710-06

$1,612,500

$2,150,000

Metuchen Borough

S340360-02

$6,750,000

$9,000,000

Newton Town

S340449-08

$2,737,500

$3,650,000

Stafford Township

S340946-11

$10,050,000

$13,400,000

Stafford Township

S340946-12

$6,000,000

$8,000,000

Vernon Township

S340745-03

$2,271,750

$3,029,000

Little Egg Harbor
Municipal Utilities Authority

S340579-05

$3,150,000

$4,200,000

Hightstown Borough

S340915-08

$1,875,000

$2,500,000

Tuckerton Borough

S340034-06

$900,000

$1,200,000

Pleasantville City

S340752-04

$3,246,413

$4,328,550

Middlesex County
Utilities Authority

S340699-20

$11,250,000

$15,000,000

Woodbridge Township

S340433-13

$6,375,000

$8,500,000

Middlesex County
Utilities Authority

S340699-16

$20,250,000

$27,000,000

Monmouth County
Bayshore Outfall Authority

S340325-04

$2,062,500

$2,750,000

Monmouth County
Bayshore Outfall Authority

S340325-04a

$2,062,500

$2,750,000

Camden County Municipal
Utilities Authority

S340640-30

$5,625,000

$7,500,000

Camden County Municipal Utilities
Authority

S340640-34

$13,350,000

$17,800,000

Rockaway Valley
Regional Sewer Authority

S340821-10

$6,375,000

$8,500,000

Toms River Municipal
Utilities Authority

S340145-10

$4,732,500

$6,310,000

Toms River Municipal
Utilities Authority

S340145-07

$6,750,000

$9,000,000

Two Rivers Water
Reclamation Authority

S340117-10

$2,475,000

$3,300,000

Two Rivers Water
Reclamation Authority

S340117-10a

$112,500,000

$150,000,000

Brick Township
Municipal Utilities Authority

S340448-12

$6,750,000

$9,000,000

Brick Township Municipal Utilities
Authority

S340448-15

$1,650,000

$2,200,000

Franklin Township
Sewerage Authority

S340839-11

$1,875,000

$2,500,000

Western Monmouth
Utilities Authority

S340128-08

$6,000,000

$8,000,000

Franklin Township Sewerage
Authority

S340839-10

$7,125,000

$9,500,000

Landis Sewerage
Authority

S340461-10

$2,700,000

$3,600,000

Landis Sewerage
Authority

S340461-06

$2,250,000

$3,000,000

Mount Laurel Township
Municipal Utilities Authority

S340943-09

$4,500,000

$6,000,000

Hackensack City

S340923-22

$1,987,500

$2,650,000

North Brunswick
Township

S340888-04

$2,625,000

$3,500,000

Hillside Township

S340686-10

$2,475,000

$3,300,000

Berkeley Heights
Township

S340385-08

$525,000

$700,000

Edgewater Park Sewerage
Authority

S340108-03

$2,250,000

$3,000,000

Haddon Heights Borough

S340877-02

$487,500

$650,000

Highlands Borough

S340901-05

$6,375,000

$8,500,000

Buena Borough

S340519-01

$2,700,000

$3,600,000

Wildwood Crest Borough

S340719-05

$3,075,000

$4,100,000

Cape May City

S340258-03

$4,687,500

$6,250,000

Gibbsboro Borough

S340871-04

$1,125,000

$1,500,000

Long Beach Township

S340023-10

$5,677,500

$7,570,000

Fieldsboro Borough

S340522-01

$3,750,000

$5,000,000

North Bergen Township

S340652-17

$3,225,000

$4,300,000

Passaic Valley Sewerage
Commission

S340689-46

$51,750,000

$69,000,000

Passaic Valley Sewerage
Commission

S340689-54

$16,950,000

$22,600,000

Ocean Gate Borough

S340151-02

$1,125,000

$1,500,000

Atlantic City

S340439-07

$1,575,000

$2,100,000

Camden County Municipal
Utilities Authority

S340640-35

$3,862,500

$5,150,000

Ocean County Utilities
Authority

S340372-65

$3,150,000

$4,200,000

Northwest Bergen County
Utilities Authority

S340700-22

$2,025,000

$2,700,000

Seaside Heights Borough

S340236-03

$2,550,000

$3,400,000

Seaside Park Borough

S340083-05

$1,275,000

$1,700,000

North Bergen Municipal
Utilities Authority

S340652-19

$975,000

$1,300,000

Boonton Town

S340265-02

$2,475,000

$3,300,000

Runnemede Borough

S340363-07

$8,250,000

$11,000,000

Cumberland County

S340438-03

$1,125,000

$1,500,000

Cumberland County

S340438-03a

$15,000,000

$20,000,000

Little Egg Harbor
Township

S340579-06

$3,000,000

$4,000,000

Gloucester Township

S340364-19

$1,500,000

$2,000,000

Gloucester Township

S340364-16

$450,000

$600,000

Gloucester Township

S340364-17

$967,649

$1,290,198

Gloucester Township

S340364-18

$1,125,000

$1,500,000

Passaic Valley Sewerage Commission

S340689-66

$17,625,000

$23,500,000

Hackensack City

S340923-25

$1,575,000

$2,100,000

Trenton City

S340416-14

$18,000,000

$24,000,000

New Brunswick City

S340437-13

$2,362,500

$3,150,000

Atlantic City Municipal
Utilities Authority

S340439-04

$2,300,000

$3,066,667

East Orange City

S340843-03

$12,825,000

$17,100,000

Sussex County Municipal
Utilities Authority

S342008-07

$5,625,000

$7,500,000

Lakewood Township Municipal
Utilities Authority

S340465-04

$6,000,000

$8,000,000

Passaic Valley Water Commission

S340322-03

$2,850,000

$3,800,000

Manchester Township

S340650-09

$3,262,500

$4,350,000

Manchester Township

S340650-10

$4,500,000

$6,000,000

Lyndhurst Township

S340426-09

$3,000,000

$4,000,000

Pine Hill Municipal
Utilities Authority

S340274-06

$1,500,000

$2,000,000

Boonton Town

S340265-03

$712,500

$950,000

Glen Ridge Borough

S340861-02

$1,575,000

$2,100,000

Bordentown City

S340219-04

$3,000,000

$4,000,000

Island Heights Borough

S340176-03

$750,000

$1,000,000

Total Projects: 194

$1,951,118,701

$2,601,491,599

(2) The department is
authorized to make clean water and drinking 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 “State
Fiscal Year 2027 Drinking Water Project Eligibility List”:

Project Sponsor

Project Number

Estimated Allowable DEP Loan Amount

Estimated Total Loan Amount

Passaic Valley Water
Commission

1605002-002

$41,287,500

$55,050,000

Lakewood Township
Municipal Utilities Authority

1514002-001

$11,250,000

$15,000,000

Orange City

0717001-013

$975,000

$1,300,000

New Brunswick City

1214001-001

$9,637,500

$12,850,000

New Brunswick City

1214001-005

$79,500,000

$106,000,000

Camden City

0408001-001

$55,725,000

$74,300,000

Wildwood City

0514001-007

$18,750,000

$25,000,000

Red Bank Borough

1340001-004

$9,000,000

$12,000,000

Flemington Borough

1009001-010

$300,000

$400,000

Manchester Utilities
Authority

1603001-001

$787,500

$1,050,000

Bloomfield Township

0702001-004

$3,000,000

$4,000,000

Jersey City Municipal
Utilities Authority

0906001-035

$38,587,500

$51,450,000

Merchantville
Pennsauken Water Commission

0424001-006

$7,612,500

$10,150,000

Aqua New Jersey
Incorporated

0415002-001

$6,637,500

$8,850,000

East Newark Borough

0902001-001

$1,537,500

$2,050,000

Ridgewood Village

0251001-001

$46,012,500

$61,350,000

Ridgewood Village

0251001-002

$13,500,000

$18,000,000

Ridgewood Village

0251001-003

$7,200,000

$9,600,000

Ridgewood Village

0251001-004

$9,637,500

$12,850,000

Ridgewood Village

0251001-005

$4,725,000

$6,300,000

Ridgewood Village

0251001-006

$4,725,000

$6,300,000

Belleville Township

0701001-008

$2,676,564

$3,568,752

Livingston Township

0710001-001

$9,000,000

$12,000,000

Livingston Township

0710001-002

$3,750,000

$5,000,000

Ramsey Borough

0248001-016

$2,962,500

$3,950,000

Essex Fells Borough

0706001-004

$3,750,000

$5,000,000

Essex Fells Borough

0706001-005

$3,787,500

$5,050,000

Lake Stockholm Systems,
Inc.

1911002-001

$1,725,000

$2,300,000

Aqua New Jersey
Incorporated

1911004-001

$2,250,000

$3,000,000

Newton Town

1915001-001

$3,000,000

$4,000,000

Atlantic City Municipal
Utilities Authority

0102001-013

$3,900,000

$5,200,000

Washington Township
Municipal Utilities Authority

1438004-005

$6,825,000

$9,100,000

Wildwood City

0514001-008

$2,662,500

$3,550,000

NJ American Water
Company, Inc.

2121001-001

$9,450,000

$12,600,000

Newark City

0714001-023

$17,250,000

$23,000,000

Seaside Heights Borough

1526001-002

$7,500,000

$10,000,000

Allentown Borough

1302001-006

$945,000

$1,260,000

Allentown Borough

1302001-007

$2,437,500

$3,250,000

Bloomfield Township

0702001-006

$7,387,500

$9,850,000

NJ American Water
Company, Inc.

2004002-015

$15,000,000

$20,000,000

Trenton City

1111001-013

$7,893,900

$10,525,200

Ridgewood Village

0251001-007

$13,462,500

$17,950,000

Aqua New Jersey Incorporated

2119001-002

$7,162,500

$9,550,000

Hawthorne Borough

1604001-003

$2,100,000

$2,800,000

Hawthorne Borough

1604001-004

$2,250,000

$3,000,000

Hawthorne Borough

1604001-006

$2,587,500

$3,450,000

Maple Shade Township

0319001-001

$3,600,000

$4,800,000

Margate City

0116001-003

$4,950,000

$6,600,000

Chatham Borough

1404001-001

$7,666,500

$10,222,000

Bayonne City

0901001-005

$9,375,000

$12,500,000

Hightstown Borough

1104001-013

$1,125,000

$1,500,000

Longport Borough

0115001-001

$4,650,000

$6,200,000

Passaic Valley Water
Commission

1605002-033

$3,750,000

$5,000,000

Park Ridge Borough

0247001-002

$3,187,500

$4,250,000

Jersey City Municipal
Utilities Authority

0906001-024

$13,762,500

$18,350,000

Manchester Utilities
Authority

1603001-004

$1,500,000

$2,000,000

Mount Laurel Township
Municipal Utilities Authority

0324001-004

$1,500,000

$2,000,000

Verona Township

0720001-006

$3,750,000

$5,000,000

Verona Township

0720001-007

$3,450,000

$4,600,000

Boonton Town

1401001-003

$4,875,000

$6,500,000

Old Bridge Municipal
Utilities Authority

1209002-005

$3,525,000

$4,700,000

Cape May City

0502001-005

$1,875,000

$2,500,000

Stone Harbor Borough

0510001-001

$6,262,500

$8,350,000

Newton Town

1915001-003

$750,000

$1,000,000

Seaside Heights Borough

1526001-003

$4,050,000

$5,400,000

Hightstown Borough

1104001-011

$825,000

$1,100,000

Hoboken City

0905001-004

$3,112,500

$4,150,000

Burlington City

0305001-003

$1,650,000

$2,200,000

Berkeley Township
Municipal Utilities Authority

1505323-001

$1,575,000

$2,100,000

North Brunswick
Township

1215001-008

$4,875,000

$6,500,000

Edison Township

1205001-001

$6,375,000

$8,500,000

Ship Bottom Borough

1528001-005

$1,687,500

$2,250,000

Little Egg Harbor
Municipal Utilities Authority

1516001-007

$2,625,000

$3,500,000

Clinton Town

1005001-021

$2,887,500

$3,850,000

Clinton Town

1005001-022

$1,687,500

$2,250,000

Glen Ridge Borough

0708001-010

$2,625,000

$3,500,000

North Caldwell Borough

0715001-002

$2,850,000

$3,800,000

Roosevelt Borough

1314001-003

$1,500,000

$2,000,000

Roosevelt Borough

1341001-008

$750,000

$1,000,000

Roosevelt Borough

1341001-009

$600,000

$800,000

Robbinsville Township

1112001-001

$2,062,500

$2,750,000

Evesham Municipal
Utilities Authority

0313001-004

$3,225,000

$4,300,000

Willingboro Municipal
Utilities Authority

0338001-014

$2,625,000

$3,500,000

Marlboro Township

1328002-010

$1,387,500

$1,850,000

Monroe Municipal
Utilities Authority

0811002-003

$4,875,000

$6,500,000

Ventnor City

0122001-003

$3,375,000

$4,500,000

Hawthorne Borough

1604001-005

$1,200,000

$1,600,000

Pine Hill Municipal
Utilities Authority

0428002-006

$2,325,000

$3,100,000

Point Pleasant Beach
Borough

1525001-003

$1,875,000

$2,500,000

Allamuchy Township

2101001-001

$1,125,000

$1,500,000

Ocean Gate Borough

1521001-004

$750,000

$1,000,000

Brookwood Musconetcong
River Property Owners Association

1904001-005

$1,575,000

$2,100,000

Mount Arlington Borough

1426005-001

$1,575,000

$2,100,000

Brick Township
Municipal Utilities Authority

1506001-016

$8,475,000

$11,300,000

Verona Township

0720001-008

$1,500,000

$2,000,000

Pemberton Township

0329004-001

$3,187,500

$4,250,000

Lavallette Borough

1515001-002

$4,987,500

$6,650,000

Harvey Cedars Borough

1509001-002

$2,325,000

$3,100,000

Total Projects: 98

$679,781,964

$906,375,952

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 2027 financing program.

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

a.  The Commissioner of
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 2027 financing
program;

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. 4220 of
the 2026-2027 session and Assembly Bill No. of the 2026-2027
session);

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. 4220 of
the 2026-2027 session and Assembly Bill No. of the
2026-2027 session), 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).

g.  Notwithstanding the
provisions of any applicable law or regulation to the contrary, drinking water
projects may be funded by the “Pinelands Infrastructure Trust Fund” established
pursuant to section 14 of the “Pinelands Infrastructure Trust Bond Act of 1985,”
P.L.1985, c.302. Drinking water projects financed by the Pinelands
Infrastructure Trust Fund shall be funded in accordance with the regulations
applicable to the financing of wastewater projects by the Pinelands
Infrastructure Trust Fund unless and until regulations specific to the
financing of drinking water projects are promulgated.

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. 4220 of
the 2026-2027 session and Assembly Bill No. of the
2026-2027 session), 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, 2027, 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.1985, 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. 4220 of
the 2026-2027 session and Assembly Bill No. of the
2026-2027 session), 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, P.L.2022, c.99, as amended by P.L.2023, c.6,
P.L.2023, c.120, as amended by P.L.2023, c.344, P.L.2024, c.35, as amended by
P.L.2025, c.10, P.L.2025, c.109, as amended by P.L.2025, c.182, or this act, 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,
P.L.2022, c.100, as amended by P.L.2023, c.5, P.L.2023, c.119, as amended by
P.L.2023, c.343, P.L.2024, c.41, as amended by P.L.2025, c.8, P.L.2025, c.125,
as amended by P.L.2025, c.183, or P.L. ,
c. (pending before the Legislature as Senate Bill No. 4220 of
the 2026-2027 session and Assembly Bill No. of the
2026-2027 session) 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, 2027, 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 this act, 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 would appropriate
certain federal and State moneys to the Department of Environmental Protection
(DEP) for the purpose of implementing the State Fiscal Year 2027 New Jersey
Environmental Infrastructure Financing Program (NJEIFP).  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, Senate Bill No. 4220
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 $236.7 million in estimated total loan amounts;

(2) in subsection b. of
section 2 of the bill, a list of four projects to improve drinking water
systems that had previously received a loan and require supplemental loans,
representing $94.5 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
2027 Clean Water Project Eligibility List,” a list of 194 projects to improve
water discharge and treatment systems, representing $2.6 billion in estimated
total loan amounts;

(4) in paragraph (2) of
subsection a. of section 3 of the bill, 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 “State Fiscal Year 2027 Drinking Water Project
Eligibility List,” a list of 98 projects to improve drinking water systems,
representing $906.4 million in estimated total loan amounts.

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 would 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, 2027.

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, as detailed 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.