New JerseyS3384220th Legislature (2024-2025)SenateWALLET

Appropriates funds to DEP for environmental infrastructure projects for FY2025.

Sponsored By: Atkins, Reginald W., John J. Burzichelli (Democratic), Mitchelle Drulis (Democratic), Andrea Katz (Democratic), Holly T. Schepisi (Republican)

Signed by Governor

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

12 provisions identified: 11 benefits, 0 costs, 1 mixed.

Affordable communities get water loan relief

Clean-water projects meeting DEP affordability standards have access to up to $40 million in forgiveness, plus specified unused state 2024 funds. Tier 1 borrowers can get full forgiveness on costs up to $3 million; Tier 2 borrowers, up to $2 million. Higher eligible costs receive loans at one-quarter of the Infrastructure Bank's market rate. A separate federal drinking-water pool provides up to $40 million for projects meeting affordability standards that do not address lead or emerging contaminants. Half supports top-ranked projects with loans up to $10 million; half supports Tier 1 loans up to $4 million or Tier 2 loans up to $2 million, with qualifying loans eligible for full forgiveness.

Communities get help cutting sewer overflows

Projects reducing combined sewer overflows can access three financing pools, each also drawing on specified unused state 2024 funds. One offers up to $20 million in forgiveness, capped at $5 million per borrower whenever practicable; projects over $5 million through $10 million get 50% forgiveness, while larger projects get quarter-market-rate loans. An affordability-based pool offers up to $30 million, with full forgiveness on Tier 1 costs up to $8 million or Tier 2 costs up to $7 million. Costs above those tier limits get loans at one-quarter of the Infrastructure Bank's market rate. A third pool offers up to $30 million plus up to $50 million in federal recovery funds for projects reducing outfalls listed in long-term control plans: 80% is forgiven, and the rest carries half the bank's market rate.

Forgivable loans help systems replace lead pipes

DEP can provide up to $51 million, specified unused state 2024 funds, and up to $60.3 million in federal infrastructure funds for lead service line replacement. Water systems must meet DEP's lead replacement affordability standards. Tier 1 systems can receive up to 80% loan forgiveness, capped at $16 million per system. Tier 2 systems can receive up to 50% forgiveness, capped at $10 million per system. Project costs above $20 million receive loans at one-quarter of the Infrastructure Bank's market rate.

More financing for New Jersey water systems

The law funds water infrastructure loans, technical help, and state matching funds using federal grants, repayments, and available state money. Eligible local governments and public water utilities can receive zero-interest or forgivable loans, subject to available funds and federal and state law. DEP can reuse specified prior balances and 2024–2025 deposits, and include temporary-loan interest in financing totals. The Infrastructure Bank can receive up to $25 million from a $60 million state 2024 drinking-water appropriation, plus designated 2021–2023 funds, for investments, reserves, guarantees, or sponsor interest payments. DEP can also transfer money between clean-water and drinking-water funds within federal limits, including to address public-health threats.

Sandy communities get subsidized water financing

DEP can provide up to $300 million in zero-interest or forgivable Sandy financing loans for listed clean-water projects. Projects must help Sandy-affected communities, reduce flood damage risks, or improve resilience to rapid water changes or natural disasters. Financing must follow federal disaster-relief law. DEP can reduce individual awards when projects fail to meet the law's requirements or under its adjustment authority.

Water project help for disadvantaged communities

DEP can transfer up to $5 million from specified state 2025 infrastructure funds for technical help to disadvantaged communities. Communities participating in DEP's technical assistance program can receive construction loan forgiveness for clean-water or drinking-water projects. That authority allows up to $60 million, capped at $2 million per applicant. The law also authorizes up to $60 million for planning and design grants, capped at $2 million per applicant. Those grants require participation in the Water Bank's technical assistance program; both forms of aid use specified 2025 and 2021–2023 infrastructure funds.

Listed water projects get time-limited loan priority

The law authorizes priority supplemental zero-interest loans for increased final building and allowable costs in Hoboken, Newark, North Bergen, Ocean Township, Rutgers, and Somerville projects. Estimated DEP loans total $57.9375 million, within estimated total loans of $77.25 million. National Park Borough and North Jersey District Water Supply Commission have similar priority, with $19.875 million in estimated DEP loans and $26.5 million total. Specified previously listed clean-water projects retain earlier-law priority only if they received short-term funding before June 30, 2024. Loans depend on funds and project compliance; listed authorizations expired July 1, 2025, for sponsors without executed loan agreements by that date.

Cheaper loans for cleaner, efficient water systems

Water quality restoration projects have access to up to $10 million in forgiveness, plus specified unused state 2024 funds. For projects costing up to $5 million, half is forgiven and the rest carries half the Infrastructure Bank's market rate; forgiveness is capped at $2.5 million per borrower whenever practicable. Water and energy efficiency projects meeting federal Green Project Reserve standards have a separate $18 million pool, plus specified unused state 2024 funds. For those projects costing up to $4 million, half is forgiven and the rest carries half the bank's market rate; forgiveness is capped at $2 million per borrower whenever practicable. Larger projects in either program receive loans at one-quarter of the bank's market rate, subject to available funding.

Communities get water resilience loan relief

Stormwater resilience projects have access to up to $9 million in forgiveness plus up to $11 million in federal recovery funds. These loans forgive 80% of principal; the rest carries half the Infrastructure Bank's market rate, with a quarter-market-rate fallback when forgiveness funds are unavailable. A separate drinking-water pool offers up to $20 million in federal recovery funds plus specified unused state 2024 funds. It supports long-term climate resilience or treatment for multiple contaminant-limit violations at one system meeting DEP affordability standards. For drinking-water costs up to $25 million, 80% is forgiven and the rest carries half the bank's market rate.

Grants help communities fund stormwater projects

DEP can use federal Sewer Overflow and Stormwater Reuse grants for eligible clean-water projects. The federal money must be available on or before June 30, 2025; the law sets no dollar total. A matching-loan pool offers up to $2 million in forgiveness, plus specified unused state 2024 funds. For qualifying sewer overflow or stormwater projects, fully forgiven loans can cover up to 20% of costs. A DEP grant covers the remaining project costs.

Small water systems get loan relief

Systems serving 10,000 people or fewer can access up to $7 million in drinking-water loans, plus specified unused state 2024 funds. Funding depends on availability. The stated forgiveness limits are $1 million in aggregate or half a sponsor's total loan, subject to a $2 million per-sponsor cap. Costs above $2 million receive loans at one-quarter of the Infrastructure Bank's market rate. A separate pool provides up to $6 million for systems serving fewer than 1,000 people, with full loan forgiveness.

Water systems get emerging contaminant funding

DEP provides separate loan-forgiveness pools for clean-water and drinking-water projects that mainly address emerging contaminants. These include substances or microorganisms posing newly identified or returning health or environmental risks. The clean-water pool offers up to $18 million; projects costing up to $10 million can receive full forgiveness whenever practicable. The drinking-water pool offers up to $34 million, with up to full forgiveness capped at $2 million per applicant. Larger clean-water projects and drinking-water costs above $2 million receive loans at one-quarter of the Infrastructure Bank's market rate.

Sponsors & Cosponsors

Cosponsors

Alixon Collazos-Gill
Democratic • House
Dawn Fantasia
Republican • House
Hall, Garnet R.
Affiliation unavailable
Lampitt, Pamela R.
Affiliation unavailable
Cody D. Miller
Democratic • House
Carol A. Murphy
Democratic • House
Ellen J. Park
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 112 • No: 0

House vote • 6/28/2024

3RDG FINAL PASSAGE

Yes: 72 • No: 0 • Other: 1

Senate vote • 6/28/2024