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Vol. 3

No. 4

Spring 1996

A Newsletter About New Jersey's Water Quality Programs


DEP to Include Stormwater/Nonpoint Source Management Projects in '97 Financing Program

On February 23, 1996, the DEP announced the availability of the Proposed FFY97 Priority System, Intended Use Plan and Project Priority List document. This year, stormwater/nonpoint source management projects are eligible for the first time under the Wastewater Treatment Financing Program, allowing the DEP and the New Jersey Wastewater Treatment Trust (the Trust) to provide loans to local government units for this special purpose. The DEP and the Trust are planning to allocate a minimum of $10 million in Program funds for this project category in FFY97. In order to qualify, sponsors of stormwater/nonpoint source management projects must complete a request to be placed on the Priority List and must satisfy the same timeframes as those established for wastewater treatment facilities projects as indicated below.

The DEP has also adopted a new policy whereby projects, which are a component of approved watershed management plans, will receive an additional 200 bonus ranking points. The additional points will be awarded to qualifying point and nonpoint source projects. The DEP believes this policy will provide an incentive to complete watershed management planning and a means to advance water quality improvements using a watershed approach.

In addition to stormwater/nonpoint source projects, funding through the program continues to be available for the construction of a variety of projects including secondary and advanced wastewater treatment facilities, infiltration and inflow correction, interceptors, pumping stations, force mains, major sewer system rehabilitation, new collection systems and correction of combined sewer overflows. Allowances for planning and design are also available.

Financing is provided from two sources, the DEP-administered Wastewater Treatment Fund (the Fund) and the Trust. The Fund provides loans at zero percent interest for 20 years for one half of the allowable project costs. The Trust offers loans at approximately the market rate for the remaining allowable project costs, also for a 20-year term. Between these two funding sources, the overall rate on loans is generally less than half the market rate obtainable by a local government unit.

Projects are evaluated and point scores are assigned in accordance with the ranking criteria of the Federal Priority System which is developed each year by the DEP. Projects are certified for funding based on list rank, the amount of available funds, and compliance with the department requirements and deadlines for planning, design, and application.

By March 29, 1996, local government units listed or eligible for listing on the Proposed Federal Fiscal Year 1997 Project Priority List should advise the Assistant Director, Municipal Wastewater Assistance Program, of an interest in the FFY97/SFY98 funding cycle. In addition, project sponsors must meet established deadlines for planning, design, and application which are April 26, 1996, November 1, 1996, and March 3, 1997, respectively. All requests for funding consideration must be in writing, with copies to the Administrator, Permit Information and Assistance, and to the Executive Director, New Jersey Wastewater Treatment Trust.

A public hearing on the Proposed FFY97 Priority System, Intended Use Plan and Project Priority List will be held on March 26, 1996, in the Large Conference Room at the Municipal Wastewater Assistance Program offices, 1333 Brunswick Avenue, Lawrenceville, New Jersey, from 10:00 a.m. to 2:00 p.m. or to the end of testimony, whichever is sooner.

For more information, please contact Theresa Fenton, chief, or Scott Shymon of the Bureau of Program Development and Technical Services at (609) 292-3859.


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Last revision 4/15/96