Project sponsors interested in receiving financial assistance in the 2001 Environmental Infrastructure Financing Program need to submit a commitment letter and planning documents to the DEP by October 2, 2000. While many infrastructure projects are listed on the existing Clean Water and Drinking Water Priority Lists, projects not currently listed on the appropriate Project Priority List can qualify for the 2001 Financing Program as well. The October 2, 2000 deadline is of particular significance this year since the 2001 Financing Program will not include the second chance option that has been available to projects sponsors in prior years. Project sponsors unable to meet the October 2, 2000 deadline can take advantage of the Financing Program's preaward approval provisions that allow project sponsors to proceed at their own pace and maintain the eligibility of costs incurred prior to loan award.

The Financing Program allows borrowers to take advantage of its unique 50/50 formula which lets sponsors borrow half the cost of their project at zero percent interest from the DEP and the remaining project costs from the Environmental Infrastructure Trust (Trust) at the rate that the Trust receives on its bonds sold competitively in the financial marketplace. Because the Trust's bonds consistently receive the highest credit rating, their bonds typically sell at the lowest interest rate achievable on the day of sale. In 1999, the program's interest rate for most borrowers was 2.72%. Other benefits of the Financing Program include a State-funded debt service reserve, option to capitalize interest, and no need for bond insurance. The Financing Program has expanded its scope of eligible infrastructure projects. Below are some of the projects types eligible for financing:

CLEAN WATER

Only publicly owned wastewater projects are eligible. Eligible projects include:

• Secondary and advanced wastewater treatment facilities

• Sludge handling facilities, including both wastewater and drinking water

• Infiltration and inflow correction

• Interceptors, pump stations, and force mains

• Sewer system rehabilitation

• New collection systems (needed to replace existing malfunctioning septic systems)

• Correction of combined sewer overflow

• Solutions for malfunctioning septic tanks

Stormwater and Nonpoint Source Pollution

Publicly owned stormwater and nonpoint source pollution projects that demonstrate a water quality benefit may be eligible, including:

• Stormwater management systems or facilities

• Expansion of existing basins for runoff control

• Construction of regional basins

• Major stormwater rehabilitation

• Replacement of existing storm drains

• Purchase of equipment, such as street sweepers, skimmer boats and netting on outfalls

• Rehabilitation of tide gates

• Extension of outfall points

• Landfill closure and construction

• Land acquisition and conservation

• Brownfields remediation

• Wellhead sealing

• Salt storage runoff controls

• Feedlot/manure runoff controls

• Streambank stabilization

DRINKING WATER

Community water systems, both privately and publicly owned, and non-profit, noncommunity water systems are eligible. Projects to achieve or maintain compliance with the Safe Drinking Water Act and protect public health are eligible, including:

• Rehabilitation or development of sources

• Installation or upgrade of treatment facilities

• Installation or upgrade of storage or pumping facilities

• Installation or replacement of transmission and distribution lines and related appurtenances

The complete 2001 Financing Program schedule is as follows:

Commitment Letter and Planning Documents	October 2, 2000
Design Documents and Loan Application	March 5, 2001
Loan Award	November 2001

If you have any questions or if you wish to arrange a pre-planning meeting, please contact one of the following:

Scott Shymon Clean Water Priority List Coordinator	(609) 292-3859
Stan Cach Bureau of Engineering North (Projects in Middlesex, Hunterdon and Counties North)	(609) 292-6894
Gautam Patel Bureau of Engineering South (Projects in Mercer, Monmouth and Counties South)	(609) 984-6840

For information regarding the drinking water component of the New Jersey Environmental Infrastructure Financing Program, please contact: Roger Tsao or Josephine Craver, Water Supply Loans (609) 292-5550