Municipal Finance and Construction Element

The New Jersey Environmental Infrastructure Financing Program

The New Jersey Environmental Infrastructure Financing Program (Financing Program) is a revolving loan program administered by the New Jersey Department of Environmental Protection - Municipal Finance and Construction Element, and the New Jersey Environmental Infrastructure Trust (Trust), an independent state financing authority. The Financing Program provides loans to local government units for the construction of wastewater treatment facilities, sludge management systems for wastewater and water treatment systems, combined sewer overflow abatement, stormwater, and other nonpoint source management projects. The Financing Program also provides loans to both publicly and privately owned drinking water systems for the construction or upgrade of drinking water facilities, transmission and distribution systems, storage facilities, and source development. Funds are made available under the federal Clean Water and Safe Drinking Water Acts and various state bond acts. Since the enactment of the loan program, more than $1.5 billion in state and federal funds have been awarded.

The Financing Program provides zero percent interest rate loans to local government units from the Department for up to half the allowable project costs, and a market rate loan from the Trust for the remaining allowable costs.

In order to be eligible for funding through the Financing Program, projects must be listed on the Project Priority List. Additionally, project sponsors must meet established planning, design and application deadlines as identified in the Priority System, Intended Use Plan and Project Priority List for the applicable funding cycle.

Wastewater and stormwater projects eligible for financial assistance include wastewater treatment plant upgrades or improvements; facilities for the treatment and disposal or beneficial reuse of sewage and water treatment system sludges; collection and conveyance facilities; on-site system rehabilitation; infiltration/inflow correction; combined sewer overflows; and interconnection/cross-connection abatement projects. Also eligible are stormwater/nonpoint source management projects (e.g., stormwater basins, equipment purchases, streambank stabilization), landfill closure and new cell construction, land acquisition and conservation, remedial action activities, well sealing, and others.

Drinking water projects eligible for financial assistance are those that address Safe Drinking Water Act health standards or replace aging infrastructure to maintain compliance or further the public health protection goals of the Act. Examples of these include projects to: rehabilitate existing or develop new sources to replace contaminated sources; install or upgrade treatment facilities-if the project would improve the quality of drinking water to comply with primary or secondary drinking water standards; install or upgrade storage facilities-including finished water reservoirs, to prevent microbiological contaminants from entering the water system; install or replace transmission and distribution pipes to prevent contamination caused by leaks or breaks in the pipe, or improve water pressure to safe levels.