This year, the New Jersey Environmental Infrastructure Financing Program has financed the largest number of projects and the second largest dollar amount since the program's inception in 1988. The program certified 54 projects that met the necessary requirements to receive low interest loans in November. The projects, totaling $185.8 million, will address drinking water, wastewater, and stormwater infrastructure needs. These projects are critical to the overall goal of preserving the state's water resources and ensuring safe drinking water for future generations. Half of the projects target wastewater, stormwater and nonpoint source pollution and will help municipalities improve sewage treatment facilities, maintain wastewater collection and conveyance systems, and reduce pollution caused by stormwater runoff. The remaining 27 projects will help municipalities, and also private water purveyors, meet the requirements of the Safe Drinking Water Act.

In 2000, the Financing Program will finance a landfill closure-a first in an initiative to expand funding for nonpoint source pollution abatement. The 2001 program will include additional project areas that also address nonpoint source pollution, including land acquisition and conservation, well sealing, and remedial action activities. Significant interest has been expressed in these new program areas, particularly in the land acquisition component, and many project sponsors have already indicated a desire to pursue loans in the 2001 Financing Program-a trend that is expected to increase in future years.

The Financing Program is a partnership between the DEP and the New Jersey Environmental Infrastructure Trust that enables the program to provide the lowest possible rates on loans for infrastructure projects. By combining interest-free loans from DEP's State Revolving Funds with market rate loans from the sale of Trust bonds, the participants in the Financing Program are able to borrow money at half the rate the Trust pays on its AAA-rated bonds. Since 1987, the Financing Program has put over $1.7 billion to work removing pollutants from the state's waterways and protecting water supplies, saving borrowers over $550 million in the process.

On October 18th, the Trust sold 2000 Series A bonds (to fund tax-exempt borrowers) at 5.13 percent. The 2000 Series B bonds (to fund projects with significant private interests) sold at 5.37 percent. Thus, the effective rate of the loans were 2.55 to 2.68 percent. These very low rates will provide sunstantial savings to program borrowers.

For more information on the loan program, contact Assistant Director Nicholas G. Binder, P.E., P.P., of the Municipal Finance and Construction Element, at (609) 292-8961. For more information on the New Jersey Environmental Infrastructure Trust, contact Executive Director Dirk C. Hofman, P.E. at (609) 219-8600. Sponsors of drinking water projects should contact Phil Royer or Josephine Craver from the Bureau of Safe Drinking Water at (609) 292-5550.

The following lists the 54 projects that were certified by the Municipal Finance and Construction Element in August and September 2000 for low-interest loans through the Environmental Infrastructure Financing Program. Governor Whitman signed the appropriations bill on August 29, 2000 that allows the DEP and the Trust to proceed with the execution of loan agreements. The DEP, the Trust, and the project sponsors will close on the loans in November.