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NJDEP COMMISSIONER LATOURETTE, EPA ADMINISTRATOR GARCIA AND I-BANK OFFICIALS MARK BILLION-DOLLAR WATER INFRASTRUCTURE MILESTONE

The New Jersey Water Bank, a partnership between the New Jersey Department of Environmental Protection and the New Jersey Infrastructure Bank that provides low-cost financing for projects to improve local clean- and drinking-water infrastructure, has for the first time surpassed $1 billion in fiscal year project financing, Environmental Protection Commissioner Shawn M. LaTourette, EPA Regional Administrator Lisa Garcia and Infrastructure Bank officials announced today.

In Fiscal Year 2024, which concluded June 30, the Water Bank provided financing for 116 clean water projects (wastewater and stormwater treatment) totaling $838 million and financing for 31 drinking water projects, totaling $240 million. These projects represent a combined $1.078 billion in infrastructure financing. The previous record was $769.5 million in Fiscal Year 2021. 

This record funding is being used to replace lead and galvanized service lines, install PFAS treatment systems, mitigate stormwater discharges, address combined sewer overflows, upgrade wastewater treatment, reduce flooding, and more. The announcement was made during a news conference in Irvington, where New Jersey American Water has been using more than $48 million in Water Bank financing to replace some 5,000 lead and galvanized residential service lines.

"In order to combat the effects of climate change, we must ensure the resilience of water infrastructure in the state," said Governor Phil Murphy. "With $1 billion of new project financing, New Jersey's Water Bank is making transformational progress in securing our water resources to guarantee the safety of drinking water supplies and protecting public health. By funding these critical projects, we can support the health and wellness of New Jerseyans and provide vital support to communities that need it most."

"Safe and reliable water infrastructure is critical to the vitality of our communities," Commissioner LaTourette said. "This record-setting, billion-dollar investment in our water infrastructure throughout the state demonstrates the high level of commitment that our local governments and water systems are making to protect public health and the environment. It also underscores the proud and productive partnership between the Murphy Administration and the Biden-Harris Administration to enhance the quality of life and create jobs through infrastructure investments."

It also points to the importance the Murphy Administration places on protecting water supplies. The DEP launched the Our Water's Worth It campaign earlier this year to raise public awareness about the fundamental importance of our water supplies, the threats they face, and the steps DEP is taking to ensure all New Jerseyans have access to clean drinking water and healthy waterways.

"This project is a perfect example of the historic federal Bipartisan Infrastructure Law providing vital funds to New Jersey to ensure that our communities, and especially our children, have safe and lead-free drinking water," said Regional Administrator Lisa F. Garcia. "EPA is happy to partner with New Jersey as we prioritize getting the lead out. There is no safe level of lead exposure, and we know that the primary source of harmful exposure in drinking water is through lead pipes."

"This year's loan production is impressive not only for the sheer magnitude of the New Jersey residents impacted by the financed projects, but also for the number of construction-related jobs employing thousands of women and men across the State," I-Bank Chairman Robert Briant Jr. said. "The Water Bank makes the construction of water projects affordable, particularly for our State's disadvantaged communities. I want to thank the DEP and the I-Bank for their efforts in creating a healthier environment for all New Jersey residents and fostering economic growth in the state."

"The accomplishments of the New Jersey Water Bank during this past fiscal year are a testament to the policies, effective collaboration and dedication of every federal, state, and local government employee involved in this program," said I-Bank Executive Director David Zimmer. "Providing low-cost and affordable funding to more than $1 billion of projects for critical water infrastructure is a vital investment in safe drinking water, clean waterways, and a better quality of life for our communities."

"New Jersey American Water's lead service line replacement program prioritizes underserved communities first, and partnering with the I-Bank on these projects helps us double-down on that commitment," said New Jersey American Water Vice President of Operations Ben Morris. "Through I-Bank financing, we have been able to increase the speed and amount of lead service line replacements in Irvington, as well as eight additional overburdened communities we serve in the state, without increasing the cost for our customers."

"Distributing $1 billion in State Revolving Funds for water infrastructure projects over the last year is a significant accomplishment," said Deandrah Cameron, Policy Manager for New Jersey Future. "It is particularly fitting that the final project is a lead service line replacement in Irvington. Lead is a hazardous toxin that poses severe health risks, especially to our most vulnerable populations, and disproportionately affects black and brown communities. Its effects are irreversible; lead poisoning is 100% preventable. We must commend and acknowledge those who work tirelessly to safeguard the health and well-being of our communities. The Jersey Water Works and Lead-Free NJ collaboratives are committed to centering the needs of communities impacted by lead service lines and assisting municipalities and water systems in pursuing a lead-free environment that ensures public health and safety. The strong partnership between communities and the state is why we are proud to be a national leader in lead abatement as a White House Get the Lead Out Partnership member. We support New Jersey communities by elevating these outstanding partnerships as best practices for the rest of New Jersey cities as we continue to lead the nation."

FY 2024 Project Highlights

Examples of projects that received Water Bank financing in state fiscal year 2024 include:

• The Passaic Valley Sewerage Commission received more than $116 million to increase treatment capacity for the purpose of reducing discharges of combined sewer overflows that impact surface water quality in the area. Construction began in March of this year and is anticipated to be completed by the end of 2028.
• The city of Camden received $55 million for the construction of granular activated carbon to treat PFAS and 1,4-dioxane and to upgrade the Morris-Delair Water Treatment Facility. Construction began in February and is expected to be completed by the end of 2025.
• The Bayshore Regional Sewerage Authority received $31 million to construct backup power generation to the sewerage authority and the Monmouth County Bayshore Outfall Authority to safely treat and dispose of wastewater during prolonged power outages.
• New Jersey American Water received more than $25 million to expand replacements of lead service lines in Irvington. Combined with financing for a 2022 project, the Water Bank has provided more than $48 million in financing for the replacement of more than 5,000 lead and galvanized service lines in Irvington. Work is expected to be completed by the end of next year.
• The city of Trenton received more than $9 million to replace approximately 1,000 lead and galvanized service lines with copper lines. Construction is expected to begin soon and be completed by July 2026.
• The Jersey City MUA received $9.8 million to replace additional lead service lines in the city. Combined with financing received in FY 2023, the Water Bank has provided more than $21 million for the replacement of approximately 1,600 lead service lines in Jersey City. Construction began in July 2023 and is expected to be completed by June 2025.

The full $1 billion in project closings for 2024 can be found at the DEP's Water Infrastructure Dashboard. Based on the current application pipeline, the Water Bank expects to again exceed $1 billion in project financing in the current fiscal year. Last month, the Murphy Administration launched an interactive website to assist the public in tracking billions of dollars of overall Bipartisan Infrastructure Law investments in New Jersey.

Building on a History of Infrastructure Investments

Providing New Jersey residents with safe and reliable water is a top priority of the Murphy Administration and Commissioner LaTourette. The DEP works hard every day on programs that protect the long-term viability and safety of water supplies, with a focus on overburdened communities that may have some of most pressing infrastructure needs in New Jersey. Much of New Jersey's water infrastructure, which was first developed in the nineteenth century, now faces new challenges, such as protecting the public from emerging contaminants that include per- and polyfluoroalkyl substances, or PFAS. 

In January 2022, the Murphy Administration launched the state's $1 billion Water Infrastructure Investment Plan (WIIP), an innovative effort to address the state's water infrastructure challenges through short and long-term investments that will create good-paying jobs while advancing the state's environmental justice and climate resilience goals. The WIIP is fueled by federal State Revolving Fund funding through the EPA. This funding received a historic boost from the landmark Bipartisan Infrastructure Law.

The WIIP builds on a strong tradition of infrastructure investment in New Jersey going back nearly four decades. The New Jersey Water Bank administers New Jersey's State Revolving Fund programs and is a partnership between the DEP and the New Jersey Infrastructure Bank, also known as the I-Bank. The I-Bank is an independent state financing authority that provides and administers low-interest loans to qualified municipalities, counties, regional authorities, and water purveyors to finance water, transportation, and recently, resilient infrastructure projects.

The New Jersey Water Bank administers two programs, the Drinking Water State Revolving Fund (focused on drinking water infrastructure and technologies) and the Clean Water State Revolving Fund (focused on public wastewater and stormwater systems). The Water Bank provides below-market financing by offering borrowers principal forgiveness combined with zero-percent interest rate loans through the DEP and advantageous loan rates from the I-Bank's AAA-rated bond proceeds. On average, borrowers are able to save more than 30 percent of their total financing costs by borrowing through the Water Bank.

The success of the Water Bank's low-cost financing program involves the coordination of three different state agencies and authorities under Governor Murphy. The DEP oversees technical review and approval of projects, the New Jersey Department of Community Affairs oversees budget and bonding approval and fiscal oversight of local borrowers, and the I-Bank oversees credit, legal, bond issuance and loan administration.

Since 1987, the Water Bank has made more than $10 billion in short-term and long-term loans to local water systems, saving participating borrowers more than $3.3 billion and creating more than 177,000 direct construction jobs.

The record loan production for Fiscal Year 2024 is meaningful not only for the sheer magnitude of funded projects, but also because these funds are reaching disadvantaged and overburdened communities targeted by the Murphy Administration in the form of principal forgiveness funding. This is making critical infrastructure projects affordable, positioning these communities for a healthier environment and economic growth.

DEP PRESENTS INAUGURAL OUR WATER'S WORTH IT AWARD TO RIDGEWOOD WATER FOR EFFORTS TO CONSERVE WATER AND ADDRESS PFAS

Environmental Protection Commissioner Shawn M. LaTourette today presented the first Our Water's Worth It trophy to Ridgewood Water for its efforts over the years to conserve water and to protect public health by addressing PFAS contamination. Ridgewood Water provides water service to approximately 61,000 consumers in four Bergen County municipalities.

The award, presented during a ceremony at one of Ridgewood Water's 12 PFAS Treatment Facilities currently under construction, is part of DEP's Our Water's Worth It campaign launched earlier this year to emphasize the importance of protecting our water supplies. The award program acknowledges water systems, both public and private, that set a good example by going above and beyond to protect water resources, and improve drinking water quality, service and reliability for the residents they serve.

"Thoughtful and proactive water supply management is key to economic prosperity, protection of public health and natural resources, and quality of life," Commissioner LaTourette said. "We must all do our part to be stewards of the state's water resources. My DEP colleagues and I congratulate Ridgewood Water for being a leader in protecting and conserving our precious water resources."

The New Jersey Water Bank, a partnership between the New Jersey Department of Environmental Protection and the New Jersey Infrastructure Bank that provides low-cost financing for projects to improve local clean- and drinking-water infrastructure, has for the first time surpassed $1 billion in fiscal year project financing.

In Fiscal Year 2024, which concluded June 30, the Water Bank provided financing for 116 clean water projects (wastewater and stormwater treatment) totaling $838 million and financing for 31 drinking water projects, totaling $240 million. These projects represent a combined $1.078 billion in infrastructure financing. The previous record was $769.5 million in Fiscal Year 2021.

This record funding is being used to replace lead and galvanized service lines, install PFAS treatment systems, mitigate stormwater discharges, address combined sewer overflows, upgrade wastewater treatment, reduce flooding, and more. The announcement was made during a news conference in Irvington, where New Jersey American Water has been using more than $48 million in Water Bank financing to replace some 5,000 lead and galvanized residential service lines.

“In order to combat the effects of climate change, we must ensure the resilience of water infrastructure in the state,” said Gov. Phil Murphy. “With $1 billion of new project financing, New Jersey’s Water Bank is making transformational progress in securing our water resources to guarantee the safety of drinking water supplies and protecting public health. By funding these critical projects, we can support the health and wellness of New Jerseyans and provide vital support to communities that need it most.”

“Safe and reliable water infrastructure is critical to the vitality of our communities,” NJDEP Commissioner Shawn LaTourette said. “This record-setting, billion-dollar investment in our water infrastructure throughout the state demonstrates the high level of commitment that our local governments and water systems are making to protect public health and the environment.

“This year’s loan production is impressive not only for the sheer magnitude of the New Jersey residents impacted by the financed projects, but also for the number of construction-related jobs employing thousands of women and men across the State,” I-Bank Chairman Robert Briant Jr. said. “The Water Bank makes the construction of water projects affordable, particularly for our State’s disadvantaged communities. I want to thank the DEP and the I-Bank for their efforts in creating a healthier environment for all New Jersey residents and fostering economic growth in the state.”

“The accomplishments of the New Jersey Water Bank during this past fiscal year are a testament to the policies, effective collaboration and dedication of every federal, state, and local government employee involved in this program,” said I-Bank Executive Director David Zimmer. “Providing low-cost and affordable funding to more than $1 billion of projects for critical water infrastructure is a vital investment in safe drinking water, clean waterways, and a better quality of life for our communities.”

“New Jersey American Water’s lead service line replacement program prioritizes underserved communities first, and partnering with the I-Bank on these projects helps us double-down on that commitment,” said New Jersey American Water Vice President of Operations Ben Morris. “Through I-Bank financing, we have been able to increase the speed and amount of lead service line replacements in Irvington, as well as eight additional overburdened communities we serve in the state, without increasing the cost for our customers.”

FY 2024 Project Highlights

Examples of projects that received Water Bank financing in state fiscal year 2024 include:

• The Passaic Valley Sewerage Commission received more than $116 million to increase treatment capacity for the purpose of reducing discharges of combined sewer overflows that impact surface water quality in the area. Construction began in March of this year and is anticipated to be completed by the end of 2028.

• The city of Camden received $55 million for the construction of granular activated carbon to treat PFAS and 1,4-dioxane and to upgrade the Morris-Delair Water Treatment Facility. Construction began in February and is expected to be completed by the end of 2025.

• The Bayshore Regional Sewerage Authority received $31 million to construct backup power generation to the sewerage authority and the Monmouth County Bayshore Outfall Authority to safely treat and dispose of wastewater during prolonged power outages.

• New Jersey American Water received more than $25 million to expand replacements of lead service lines in Irvington. Combined with financing for a 2022 project, the Water Bank has provided more than $48 million in financing for the replacement of more than 5,000 lead and galvanized service lines in Irvington. Work is expected to be completed by the end of next year.

• The city of Trenton received more than $9 million to replace approximately 1,000 lead and galvanized service lines with copper lines. Construction is expected to begin soon and be completed by July 2026.

• The Jersey City MUA received $9.8 million to replace additional lead service lines in the city. Combined with financing received in FY 2023, the Water Bank has provided more than $21 million for the replacement of approximately 1,600 lead service lines in Jersey City. Construction began in July 2023 and is expected to be completed by June 2025.

NEW JERSEY INFRASTRUCTURE BANK

NOTICE OF POTENTIAL NEGOTIATED BOND FINANCING

Environmental Infrastructure Bonds, Series 2024A-W1 (Green Bonds)

This is a voluntary notice posted by the New Jersey Infrastructure Bank in connection with a potential negotiated sale of Environmental Infrastructure Bonds, Series 2024A-W1 (Green Bonds) in May, 2024.  Investors should read this voluntary notice in its entirety  for details with respect to this potential issuance.

View full article below.

Fitch Ratings has assigned a 'AAA' rating to the following bonds issued by the New Jersey Infrastructure Bank (NJIB, or the I-Bank):

--Approximately $47.9 million Environmental Infrastructure Bonds, Series 2023A-W1 (Green Bonds);

--Approximately $165.0 million Environmental Infrastructure WIFIA Financing Program Bonds, Series 2023C-W1 (Green Bonds) (Taxable).

Bond proceeds will be combined with other funds on hand to finance eligible clean water (CW) and drinking water (DW) projects within the state and to pay issuance costs. Portions of the bond proceeds will also be used to finance accrued interest for certain borrowers. The bonds are expected to sell via negotiation on approximately Dec. 5.

In addition, Fitch has affirmed the following outstanding obligations:

--Environmental Infrastructure Bonds at 'AAA';

--Water Infrastructure Finance and Innovation Act (WIFIA) Loan Program Bonds at 'AAA';

--Environmental infrastructure extendable commercial paper notes (the ECP notes) at 'F1+'.

The Rating Outlook is Stable.

In a major initiative to aid in the protection of New Jersey’s public infrastructure, legislation was enacted in the spring of 2023 that expanded the authority of the New Jersey Infrastructure Bank (the “I-Bank”) to partner with the New Jersey State Office of Emergency Management (“NJOEM”), within the Division of State Police to apply for and administer funds to finance hazard mitigation and resilience projects throughout the State. The funds are available through the Federal Emergency Management Agency (“FEMA”) as part of the Safeguarding Tomorrow through Ongoing Risk Mitigation (“STORM”) Act of 2020. This new program, dubbed the NJ Community Hazard Assistance Mitigation Program (“NJ CHAMP”), is established within the I-Bank’s New Jersey Resiliency Infrastructure Bank (“NJRIB”), adding to the I-Bank’s repertoire of existing infrastructure financing programs, the New Jersey Water Bank, and the New Jersey Transportation Bank.

The STORM Act established the STORM Revolving Loan Fund (“STORM RLF”) to provide revolving loan funds to states to finance projects that reduce risks from natural hazards and disasters. STORM Act funds are awarded by FEMA as capitalization grants to states to establish revolving loan funds that provide hazard mitigation assistance for local governments to reduce risks from natural hazards and disasters. NJ CHAMP was established to apply for STORM Act Funds and administer the revolving loan program in New Jersey. The Program will award very low-cost financing to eligible projects and manage the repayments as revolving loan funds to be re-lent to finance additional projects, similar to the construct of the Water Bank and Transportation Bank programs.

The current climate of extreme weather events dictates the preparation for unanticipated destruction and costly repairs. NJOEM and the I-Bank each have successful histories working with FEMA on behalf of New Jersey local government units. Among other things, NJOEM organizes, directs, staffs, coordinates, and reports the activities of the Emergency Response, Recovery, and Preparedness Bureaus, and is responsible for planning, directing, and coordinating emergency operations within the State which are beyond local control. As part of these responsibilities, NJOEM works closely with FEMA and its programs.

In the aftermath of Superstorm Sandy, the I-Bank developed the Statewide Assistance Infrastructure Loan program (“SAIL”), a statewide disaster assistance lending program that supports restoration and future mitigation measures. SAIL provides short-term funding assistance to address immediate cash flow needs for disaster-related eligible infrastructure projects in advance of reimbursements from federal grant programs such as FEMA’s Public Assistance Grant Program (“PA”) or Hazard Mitigation Grant Program (“HMGP”). SAIL participants also receive assistance with compliance oversight for federal FEMA legal requirements (Stafford Act). NJOEM and the I-Bank’s efforts to support planning for resilience have already protected NJ infrastructure and saved money throughout the state. NJ CHAMP will continue this mission by addressing the consequences of disasters before they occur.

In May 2023, the NJOEM and I-Bank applied to FEMA for STORM Act funds in the STORM program’s first funding cycle for high priority projects on New Jersey’s Hazard Mitigation Plan (“State HMP”). On September 12, 2023, FEMA announced the STORM Act fund grant recipients, each under $7 million. New Jersey received $6.4 million for the NJ CHAMP program, the third highest award to any state. Together with match funds of $640,000, the NJ CHAMP program will look to fund over $7 million of projects in its first year.

NJ CHAMP will provide low-interest loans for eligible hazard mitigation and resilience projects. NJ CHAMP is intended to supplement and complement state and federal hazard mitigation/risk reduction funding. Projects considered for funding will achieve objectives consistent with the goals and actions identified in the State HMP. NJOEM will review proposed projects in relation to goals and objectives established in the relevant HMP.

Pursuant to the STORM Act, the NJ CHAMP Priority System (“Priority System”) and the NJ CHAMP Project Priority List (“PPL”) have been published for the ensuing fiscal year as part of the program’s financial plan. In year one, the NJ CHAMP PPL is composed of 58 projects with an estimated value of $294,093,912 that have been identified and publicly vetted through the FEMA Hazard Mitigation Planning Process in New Jersey.

For more information on the parameters and standards of approval of NJ CHAMP loans see the NJ CHAMP Financial Plan. Interested parties may also contact I-Bank staff at (609) 219-8600 for additional assistance.

Click the link below to see the latest news articles and updates.

I-Bank Bulletin Vol. 23-01

Please see attachment

NEW BRUNSWICK, NJ – The city has unveiled a $36 million plan to make sweeping improvements to its water treatment plant and expand its membrane plant where water is filtered.

City Administrator Michael Drulis said the city will borrow the money for these projects through the Infrastructure Bank (I-Bank), a state-authorized agency that provides funding to municipalities at subsidized rates. Through the I-Bank, the city will pay 0% interest on half the money it borrows. 

"So, because we go to the I-Bank, they work with the Department of Environmental Protection and they're helping us finance the whole program, which is saving the city millions of dollars," Drulis said. Read more: https://bit.ly/NewBrunswickPipes

On February 16th, 2023, the Alliance for Action held a program at Forsgate Country Club in Monroe Township to recognize and congratulate the people and organizations throughout New Jersey that are working together as partners to construct and ensure the safety and efficiency of the state's infrastructure. The NJ Water Bank was recognized for financing the following three projects and their impact on the state’s infrastructure:

Round Valley Reservoir Preservation Project: The Round Valley Reservoir (RVR) in Clinton Township holds more than 55 billion gallons of water at peak capacity. To ensure the reservoir can provide water to millions of New Jerseyans well into the future, the New Jersey Water Supply Authority is undertaking a $75 million dollar rehab project to the RVR. The RVR has three dams,  each of which is being upgraded with “chimney drains,” structures that meet some of today’s highest standards. 

Trenton City 5-Year Lead Service Line Replacement Project: The Trenton Water Works (TWW) recognizes the need and has begun to replace lead water service lines throughout its entire system, including the City of Trenton, which has more than 90,000 residents, as well as Ewing, Hamilton, and Lawrence Townships. There are an estimated 62,000 lead service lines among TWW’s residential customers. With approximately 40,000 lead service lines left to replace, TWW is continuing with this project to ensure the safety and well-being of all its service area recipients.

Jersey City MUA Phase 1-2 Sewer Rehabilitation: The Jersey City MUA is pursuing green infrastructure projects to reduce the impacts to the community of overflows from its combined sewer systems. The project involves the rehabilitation of existing combined sewer mains and associated manholes, inlets, and other related infrastructure. Under this project, approximately 7,400 linear feet of existing combined sewer mains are being repaired by cured-in-place pipe lining, including associated sewer cleaning, internal television inspection, pipeline sealing, and other ancillary work. The project will restore the structural condition and hydraulic capacity of the targeted combined sewers. This remediation work is necessary to prevent continued deterioration and eventual failure of the sewers, which could result in the backup and discharge of raw sewage. By mitigating raw sewage discharge, this remediation work also prevents further degradation of the already impaired quality of the surrounding Hackensack River, Newark Bay, and Hudson River.

Published 2/24/2023

New Jersey Department of Environmental Protection (NJDEP) Commissioner Shawn LaTourette and Director of Newark Water and Sewer Utilities Kareem Adeem joined other stakeholders on a panel moderated by Radhika Fox, Assistant Administrator, Office of Water—US Environmental Protection Agency (EPA). Comments from Vice President Kamala Harris can be viewed here.

See more: Get the Lead Out

WASHINGTON - Today, the U.S. Environmental Protection Agency (EPA) announced a $500 million loan to the New Jersey Infrastructure Bank to modernize wastewater and drinking water systems serving over 10 million people throughout New Jersey. This is the first loan issued through the State Infrastructure Financing Authority Water Infrastructure Finance and Innovation Act (SWIFIA) program, which provides loans exclusively to state infrastructure financing authority borrowers, commonly known as state revolving fund programs.

The Infrastructure Investment and Jobs Act (IIJA) was front and center at the AFA’s live event on March 30th. The event featured four agency heads who described how the estimated $13 billion in federal BIL funds coming to New Jersey will support the State’s economic, environmental, and social justice goals. NJ DOT Commissioner, Diane Gutierrez-Scaccetti, spoke on how transportation funds will rebuild the State’s roads, and bridges and provide better, safer pathways for pedestrians and cyclists. NJ DEP Commissioner, Shawn LaTourette described the funds being made available to expand access to clean drinking water emphasizing the importance of environmental health for economic vitality. NJ BPU President, Joe Fiordaliso informed listeners on the Board’s plan to promote and facilitate access to broadband. NJ Transit Senior Vice President of Capital Programs, Eric Daleo presented projects that NJ Transit has for improving the State’s rails and rapid transit lines. Each leader noted the common initiative by all their agencies to support resiliency and clean energy projects. An important message for the AFA membership in attendance was that the funds and associated infrastructure projects are likely to create over 15,000 direct construction jobs each year for the next 10 years.

Of particular interest to prospective Water Bank and Transportation Bank project sponsors were comments made by the Commissioners of the NJ DOT and NJ DEP.

 Commissioner Gutierrez-Scaccetti framed her discussion around the challenges of moving people and freight up and down New Jersey’s coast, citing corrosive salt on the roads and climate change increasing the frequency and power of storms. The Commissioner hailed the BIL legislation as helping to repair and rebuild New Jersey roads and bridges with a focus on climate change mitigation, resilience, equity, and safety with $4.1 billion anticipated for Transit, $6.9 billion for highways, an additional $1.4 billion for bridges, $104 million for electric vehicle charging stations and $25 million for ferry facilities. Gutierrez-Scaccetti addressed those who serve municipalities and counties to encourage their clients to take advantage of the I-Bank’s Transportation Bank financing program noting that the I-Bank’s low-cost short-term financing could be used either to directly financing a project, or in conjunction with DOT’s Local Aid Grants to finance excess costs, or to jump start project construction in advance of the receipt of grant funds whereby the grant funds could be used subsequently to pay back the principal of those I-Bank loans.

Commissioner LaTourette opened his remarks by reaffirming the NJ DEP’s central role to promote the public good, stating “Our work sits squarely at the intersection of environmental health, social, and economic improvement.” He noted the State’s $30 billion need for water infrastructure due to historic underinvestment and stressed the Department’s intention to help steward water and flood resistance issues as well to work in concert with other agencies towards the electrification of public vehicles.

The Commissioner noted that over the next five years, the BIL will provide an additional $445 million for clean water SRF projects, noting the systemic need to address combined sewer systems, $193 million for drinking water SRF projects, $244 million for lead service line removal, $65 million for Polyfluoroalkyl Substances (PFAS) projects and an additional $38 million to address the causes of harmful algal bacteria outbreaks (HABs). LaTourette commended the I-Bank and its long and successful partnership with the NJ DEP’s State Revolving Fund program (SRF) in financing the construction of critical environmental infrastructure and saving rate payers almost $3 billion in financing costs over the years.

In addition to water infrastructure, the Commissioner expressed the importance of flood resistance infrastructure, shore restoration and the Ida recovery bill and confirmed that NJ DEP would be partnering with State’s Department of Community Affairs to spend $230 million on flood resistance. He also explained that there were federal funds planned for school and transit buses, and vehicle charging corridors in accordance with Governor Murphy’s clean energy goals.

The panel discussion on “Getting the Most for New Jersey out of Federal Infrastructure Dollars” was moderated by Paul Monte, Co-Managing Partner at Peckar & Abramson, included Darlene Regina, COO at ACCNJ, Joseph A. Fiordaliso, President, American Council of Engineering Companies of NJ, Robert McDonough, Managing Director, Marsh & Marsh, Steven Gardner, Director, NJ LECET, and Dan Kennedy, Senior Director, UTCA of NJ.

One of the main themes of the panel was the challenges that exist backfilling engineering and construction jobs given the expected influx of project dollars from the BIL and current labor force retirements. Mr. Fiordaliso noted that the short-fall of engineers is exacerbated because the majority of recent engineering graduates are more interested in “designing software rather than designing culverts.”  All the panelists agreed that, while the BIL is a good start, additional funds are required to meet the public health, environmental and economic infrastructure needs of the country.

DEP adds Environmental Justice Category to Annual Governor’s Environmental Excellence Awards

Nominations are being accepted through October 11th for all categories. The excellence awards program is sponsored by the DEP, New Jersey Infrastructure Bank, and the New Jersey Corporation for Advanced Technology. Award winners will be honored at a ceremony to be conducted virtually in December.

“Our environment is an asset to be cherished and nourished by all New Jerseyans,” said David Zimmer, Executive Director of the Infrastructure Bank. “Once again, this year’s award winners have demonstrated a level of creativity and passion that leads the way for others and benefits us all. On behalf of the NJ I-Bank Board and its staff, we celebrate the environmental successes recognized by Governor Murphy and this valuable awards program and are proud to be associated with it.” Read more:

The Murphy Administration invested $386 Million in Water Infrastructure, creating more than 4,600 construction jobs.

Infrastructure projects are supported by zero-interest NJDEP loans and NJ Infrastructure Bank sale of $122.5 Million in Green Bonds.

Governor Murphy’s continuing commitment to infrastructure investments enhance public health, protect the environment, and create green jobs. The NJ Infrastructure Bank (I-Bank) working in partnership with the NJDEP sold $122.5 million of AAA/Aaa rated Environmental Infrastructure Bonds, Acting DEP Commissioner Shawn LaTourette and I-Bank Chair Robert Briant, Jr. announced today.

“As New Jersey recovers from the pandemic, we must seize the opportunity to create family-sustaining green jobs that put our residents back to work building the critical water infrastructure that our state needs to protect our environment and public health,” Acting DEP Commissioner Shawn LaTourette said. “Through the DEP’s incredible partnership with the I-Bank, we combine forces to create the New Jersey Water Bank, which offers innovative and affordable financing for water purveyors and local governments to make investments that promote the public good.”

NJ Transportation Bank announces the recipients of funding allocations for the 4th quarter of SFY2021!

Camden County has been allocated $15,058,710 for the replacement of the White Horse Road Bridge over PATCO and NJ TRANSIT Rail Lines.

1. Bloomfield Township has been allocated $6,980,703 for the 2021 Roadway Reconstruction Program.
2. Raritan Township has been allocated $789,207 for the Case Blvd Reconstruction.
3. Orange City has been allocated $1,868,500 for its 2021 traffic lights project.  The City has also been allocated an additional $1,212,000 for its Main Street Streetscape and Traffic Control project, which had been originally allocated in SFY2021-Q1.
4. Bayonne City has received an additional allocation of $768,584 for the E. 25th Street Pedestrian Bridge Replacement, which had been originally allocated in SFY2020-Q3.

These allocations are based on each project's ranking on the Transportation Bank Project Priority List, as determined by the NJDOT's ranking methodology, as well as the project's readiness to proceed, and are subject to availability of Program funds as well as the Project Sponsor's agreement with the project's Scheduled Award Date.

The management of storm water runoff has become a priority for many communities in New Jersey in recent years due to the increase of and impact from extreme weather events. Some of the most complicated problems with storm water management occur in Combined Sewer Systems (CSS). In the late 1800s and early 1900s many cities built CSSs, which at the time provided a contemporary solution for conveying sewage and stormwater efficiently from urban areas. In optimal conditions, the stormwater and sewage were combined and conveyed to a sewage treatment plant. But today, with population growth and the concentrated development in urban areas, the piping system of a CSS can become overwhelmed by volume. In such instances, excess flows are diverted (stormwater AND sewage) into nearby waterways through combined sewer overflow (CSO) outfalls. This excess combined sewage can also flood and back up into neighborhoods, which can be a threat to human health. The abatement of CSOs is an expensive and complicated problem to address since urban areas where CSSs exist are often fully developed and because control alternatives, such as sewer separation, can result in significant disturbances. In addition, due to the inter-connected nature of sewer systems among neighboring communities, a downstream region’s strategy for addressing its CSOs is directly impacted by the amount of flows from their upstream neighbors which impacts the pipe capacity of the CSS, thereby increasing the likelihood of CSOs.

In response to the Clean Water Act, the National CSO Policy, and the New Jersey Pollutant Discharge Elimination System (NJPDES) Regulations, the NJ Department of Environmental Protection (NJDEP) issued 25 individu al NJPDES permits  to require the submission of a Long-Term Control Plan (LTCP) to reduce or eliminate CSOs.    These permits were issued to the permittee who owns/operates the combined sewer system as well as the permittee who owns/operates the receiving wastewater treatment plant. These permits affect 21 municipalities in New Jersey with CSO outfalls. The permit requirements stress the development of regional strategies to reduce the amount of storm water that flows into CSSs and requires the municipality and sewage treatment plant to work cooperatively. Public participation and engagement are also requirements of the permit throughout the LTCP process.

Conventional stormwater management techniques include pipes, sewers, expansion of the sewage treatment plant capacity and other structures that are often referred to as “gray infrastructure.” One of the more common practices is known as off-line storage, where combined effluent is diverted to a tank, a basin, or a deep tunnel until either the rain event has subsided, or a wastewater treatment plant has the capacity to treat the discharge.

Green infrastructure can also be utilized to abate CSOs. Green infrastructure projects simulate natural hydrologic methods to reduce the quantity and rate of stormwater flow to the CSS. Green infrastructure strategies can include rain gardens, bioswales, porous pavement, green roofs, infiltration planters, trees, and rainwater harvesting rain gardens. These small-scale green infrastructure strategies help to keep stormwater out of the CSS through infiltration, evapotranspiration, and rainwater harvesting. The capture and reuse of rainwater preserves the resource and keeps it out of the CSS during critical storm events. Green infrastructure is also compatible with the principals of Low Impact Development, a land development policy that reproduces natural methods of managing stormwater as close to its source as possible.

The   21   New   Jersey   municipalities   with   CSSs are encouraged to include green infrastructure projects in their LTCPs because these measures can contribute to CSO control while providing environmental, social, and economic benefits. In addition to alleviating flooding issues, green infrastructure can improve water and air quality, reduce energy use and urban heat island effects, create green jobs and improve quality of life. Larger scale green infrastructure strategies can also increase recreational and economic opportunities, improve wildlife habitat and biodiversity, and help mitigate flooding. Redevelopment opportunities become more promising as well when infrastructure can handle the population intended to use it.

As community leaders become aware of additional available funding sources, such as the NJ Water Bank, a financing program run jointly by the NJDEP and the NJ I-Bank, they can overcome some of the obstacles that have been impeding critical infrastructure repair. The NJ Water Bank is a vanguard lending institution in the State, helping communities take advantage of available funds with low-interest rate loans and principal forgiveness loans. The Water Bank has dedicated $25 million in Principal Forgiveness Loans for Combined Sewer Overflow Abatement projects utilizing gray and green practices. When NJ entities are willing to invest in their water infrastructure, the benefits are numerous.  By doing so, these entities contribute to the stimulation of the economy, the reduction of environmental and health impacts, and the enhancement of communities with neighborhood beautification.

Lead is not normally found in drinking water at the source. Typically, lead gets into drinking water from the service lines, plumbing and fixtures that contain lead. As a result of corrosion, lead and other metals from the pipes slowly dissolve into the water. Many factors affect the amount of lead that leaches into the water, including lead content of pipes, fixtures, and solder, along with water temperature, pH and hardness. Lead is associated with adverse health impacts even at low levels, particularly in infants and children.

According to an American Water Works Association survey from 2018, New Jersey has an estimated 350,000 Lead Service Lines (LSLs). To address the risk from lead in water, Jersey Water Works, with support from The Fund for New Jersey, convened a 30-member task force of representatives from local, state and federal governments; water utilities; academia; environmental, smart growth and community advocates and public health organizations. Beginning in December 2018, the task force worked to determine practical, cost-effective, equitable, and permanent solutions to ensure that people across the state can access drinking water free from the risks of lead.

 In October 2019, New Jersey’s Governor Phillip Murphy announced a statewide plan to address lead exposure from paint, water, and soil that included a goal of fully replacing the state’s LSLs within ten years, the time estimated to find and eliminate all of New Jersey’s LSLs. A week earlier, Congress enacted a law, proposed by Senator Booker, enabling New Jersey and other states to shift capital from the Clean Water State Revolving Fund (SRF) to the Drinking Water SRF, supplying critical funding.

The plan implemented key recommendations put forward by the task force, and includes the proposal of a $500 million bond to support LSL replacement; remediation of lead-based paint; enabling utilities to use rates paid by customers to support LSL replacement on private property; and improving the state’s inventory of LSLs. 

The NJ I-Bank is doing its part by offering loans at 50% principal forgiveness and 50% I-Bank market rate funding.

 NEW JERSEY INFRASTRUCTURE BANK ANNOUNCES DETAILS OF ITS UPCOMING GREEN BOND SALE

The New Jersey Infrastructure Bank announced the details of its upcoming bond sale. Subject to market conditions, the Infrastructure Bank plans to sell $34.655 million of tax-exempt Green Bonds by competitive sale on Thursday, April 23, 2020.  The bonds will be sold via competitive sale electronically via the PARITY Electronic Bid Submission System of i-Deal LLC.

This is the I-Bank’s 15th series of Green Bonds issued to fund environmental infrastructure projects protecting the State’s water resources. Proceeds of the Aaa/AAA/AAA rated Bonds along with an additional $143 million funding from the State totaling consisting of approximately $129.3 million in interest-free loans and $13.7 million of principal forgiveness will fund 36 projects for 25 borrowers. The projects address needed environmental improvements to both Drinking Water and Clean Water in New Jersey.

A Preliminary Official Statement and Notice of Sale have been released and are available on this site.

The New Jersey Infrastructure Bank has launched a new investor relations platform in advance of its bond sale Tuesday.

The new website is geared toward attracting more investors for NJIB offerings while also continuing its efforts to enhance transparency and disclosure. The site includes more than 3,000 pages of data and documents on the I-Bank's financing program and outstanding portfolio. Read More

Sidebar Article by David Zimmer

The rating is based on the large and diverse pool of 310 borrowers in the program, the overall credit quality of the borrower pool, substantial overcollateralization of loans-to-bonds

(including bond-financed I-Bank Loans and State-financed (i.e., non-bond-financed) Fund Loans) which results in a 53.5% program default tolerance (i.e., the highest percentage of pledged scheduled loan payments that can default through the life of the bonds without impairing full and timely payment of bond debt service), strong legal structure and proactive management.

This article was printed in the February 2018 issue of NJ Municipalities magazine, the official publication of the New Jersey State League of Municipalities (njslom.org.) Please see their guide to article submissions.

New Jersey Infrastructure Bank helping to Improve New Jersey's Drinking Water Quality One Project at a Time

For more information, contact the New Jersey Infrastructure Bank at (609) 219-8600.

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