The deadlines for the 2005 Environmental Infrastructure Financing Program are approaching. To qualify for low-interest loans for water quality management projects, project sponsors must submit a commitment letter and planning documents by the first week in October.

Projects eligible for funding include all areas of wastewater treatment and collection, stormwater/nonpoint source pollution management projects including equipment purchases and land acquisition for water quality protection, and drinking water projects that are needed to comply with safe drinking water standards.

The Financing Program offers the lowest possible rates on loans for infrastructure projects. By combining interest-free loans from the DEP's State Revolving Funds with market rate loans from the sale of Environmental Infrastructure Trust bonds, program participants can borrow money at either a quarter or half of the rate the Trust pays on its AAA-rated bonds. Projects in designated urban areas, combined sewer corrections, and land acquisition receive loans at a quarter of the market rate while all other projects receive loans at half the market rate.

Borrowers who obtain all necessary permits and approvals can receive pre-award approval to commence construction or make purchases prior to loan closing. Interest-free interim financing is available through the Financing Program to provide capital for approved activities before loan award.

The Financing Program encourages borrowers to attend a pre-planning meeting prior to the October submission of a commitment letter and planning documents. Pre-planning meetings are an opportunity for borrowers to discuss their project with program staff to gain a clear understanding of program requirements.

For more information on the New Jersey Environmental Infrastructure Financing Program, please contact Stanley V. Cach, Jr., P.E., P.P., Assistant Director of the Municipal Finance and Construction Element at (609) 292-8961.