 | Vol. 5 No. 4 Spring 1998 |
| A Newsletter About New Jersey's Water Quality Programs |
 | The proposed rule amendments modify the existing wastewater treatment financing program structure to implement the state's drinking water financing program. |
The DEP and the New Jersey Environmental Infrastructure Trust (formerly the New Jersey Wastewater Treatment Trust) are proposing amendments to N.J.A.C. 7:22 to include a significant new financing program for constructing drinking water projects. Currently, these rules contain the DEP and the Trust's grant and loan application and award requirements. They also include State assistance requirements for wastewater treatment facilities and other water quality improvement projects sponsored by local government units. These requirements provide for the use of various State Bond Act proceeds, Federal capitalization grants received under the Federal Clean Water Act, and Trust revenue bond proceeds.
The proposed amendments are in response to the Federal Safe Drinking Water Act Amendments of 1996 and recent changes to state law affecting the New Jersey Environmental Infrastructure Trust. The Federal Safe Drinking Water Act Amendments of 1996 include provisions which authorize states to establish and maintain a Drinking Water State Revolving Fund (DWSRF) Program and to qualify for Federal allotments to capitalize their DWSRF. The existing Wastewater Treatment Financing Program (also referred to as the Clean Water SRF) limits eligible applicants to local government units only (through the terms of the Federal Clean Water Act). However, the Federal Safe Drinking Water Act Amendments of 1996 extend eligibility to privately owned community water systems and nonprofit noncommunity water systems. The state's Safe Drinking Water Act provides the DEP with the authority to establish a DWSRF in accordance with applicable Federal laws, regulations, and guidance. Amendments to the Trust Act (August 1997) established the authority for the New Jersey Environmental Infrastructure Trust to finance publicly owned as well as privately owned drinking water facilities.
In addition, recent amendments to the 1981 Water Supply Bond Act (as approved by the electorate in November 1997) allow the Trust to receive up to $50 million of Bond Act monies for the construction of drinking water facilities. Collectively, these actions establish the statutory authority under which the State proposes to establish its DWSRF program.
The proposed rule amendments modify the existing wastewater treatment financing program structure to implement the state's drinking water financing program. To allow the financing of drinking water projects in November 1998, a public hearing is planned in Spring 1998, and adoption of the amendments is expected by September 1998. For more information regarding the proposed amendments to the rules to implement the new drinking water financing program, contact Theresa Fenton or Scott Shymon of the Bureau of Program Development and Technical Services, Municipal Finance and Construction Element, at (609) 292-3859. For more information regarding the proposed new drinking water financing program, including project ranking priorities and the State's Intended Use Plan and Project Priority List, contact Phil Royer, Bureau of Safe Drinking Water, at (609) 292-5550.
Funding Scope for Stormwater Facilities Expanded
In August 1997, amendments to the Trust statute clarified the eligibility of stormwater management facilities to encompass more than stormwater runoff collection systems as previously specified in the statute. With this clarification, all stormwater management facilities eligible pursuant to the DEP's rules (at N.J.A.C. 7:22-3) are eligible for financing by the Trust.
Amendments to the 1989 Stormwater Management and Combined Sewer Overflow Abatement Bond Act, also were adopted and approved by the electorate in November 1997. These amendments allow the Trust to receive $5 million of the 1989 Stormwater Management and Combined Sewer Overflow Abatement Bond Act monies to support the construction of combined sewer overflow and stormwater management facilities through low-cost loans from the DEP and the Trust.