ASSEMBLY BUDGET COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 5456

STATE OF NEW JERSEY

DATED:  JUNE 17, 2019

      The Assembly Budget Committee reports favorably Assembly Bill No. 5456 (1R).

      This bill authorizes the New Jersey Infrastructure Bank (NJIB) (formerly the New Jersey Environmental Infrastructure Trust) to expend up to $655.04 million and any unexpended balances from previous authorizations to provide loans with an interest rate at or below the prevailing market rate to project sponsors (primarily local governments, public authorities, or public water utilities) for a portion of the total costs of 117 eligible environmental infrastructure projects.  The eligible projects are those included in the “Storm Sandy and State Fiscal Year 2020 Clean Water Project Priority List” and the “State Fiscal Year 2020 Drinking Water Project Priority List,” as well as one clean water environmental infrastructure projects that received a loan in the past and which now requires a supplemental loan in order to meet actual costs.

      In addition to the use of prior unused allocations, this bill also permits the NJIB to use any loan repayments received to date, and the amounts for capitalized interest, bond issuance expenses and related amounts, to fund the State Fiscal Year 2020 New Jersey Environmental Infrastructure Financing Program.

FISCAL IMPACT:

      This bill authorizes the New Jersey Infrastructure Bank to expend up to $655.04 million and any unexpended balances from previous authorizations to provide loans with an interest rate at or below the prevailing market rate to project sponsors for a portion of the total costs of 117 eligible environmental infrastructure projects.