A5987

An Act concerning the State's water infrastructure investment policy, supplementing Title 58 of the Revised Statues and P.L.1975, c.291 (C.40:55D-1 et seq.), and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in sections 1 through 4 of P.L. , c. (C. ) (pending before the Legislature as this bill):

"Department" means the Department of Environmental Protection.

"Intended Use Plans" means the documents prepared annually by the department as follows: (1) the document prepared pursuant to 40 C.F.R. s.35.3150, which identifies intended uses of all funds provided by the State Water Pollution Control Revolving Fund program; and (2) the document prepared pursuant to 40 C.F.R. s.35.3555, which identifies intended uses of all funds provided by the Drinking Water State Revolving Fund program.

"Trust" means the New Jersey Infrastructure Bank created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4).

"Water infrastructure project" means the acquisition, construction, improvement, repair, or reconstruction of all or part of any structure, facility, or equipment, or real or personal property necessary for or ancillary to any: (1) wastewater treatment system project, including any stormwater management or combined sewer overflow abatement project; or (2) water supply project, as authorized pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.), including any water resources project, as authorized pursuant to P.L.2003, c.162.

2. a. No later than 12 months after the effective date of this act and no later than June 1 on the sixth year after the effective date of this act and every five years thereafter, the department, in consultation with the trust, and, where appropriate, the Board of Public Utilities and the Department of Community Affairs, shall prepare a State Water Infrastructure Investment Plan, which shall serve as the State’s long-term capital investment strategy for upgrading and maintaining the State’s drinking water, wastewater, and stormwater infrastructure. The department shall submit the State Water Infrastructure Investment Plan to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).

b. The State Water Infrastructure Investment Plan shall include, but not be limited to:

(1) an estimate of the annual and long-term capital investment needed for all drinking water, wastewater, and stormwater infrastructure;

(2) an estimate of the amount of average annual capital investment to be made for all drinking water, wastewater, and stormwater infrastructure during the succeeding five years;

(3) an estimate of the actual average annual capital investment made for all drinking water, wastewater, and stormwater infrastructure during the preceding five years;

(4) identification of annual and long-term revenue sources that could overcome any identified gap in funding;

(5) a strategy to coordinate the use of federal, State, and local funding resources;

(6) a system for the prioritization of all of the capital projects necessary to meet public policy goals, which shall incorporate, by reference, the Intended Use Plans;

(7) quantifiable goals for capital improvements that implement State priorities, including: those set forth in the Intended Use Plans; those that serve environmental justice communities; and those that incorporate green infrastructure or renewable energy generation;

(8) recommendations for new or revised programs for the asset management of drinking water, wastewater, and stormwater systems, including, but not limited to, assessments of inventory and the urgency of need for replacement or upgrade; merger or regionalization studies, strategies to address funding problems caused by a lack of ratepayers, strategies to address funding problems caused by socioeconomic factors, and strategies to otherwise increase the technical, managerial, and financial capacity of systems to fund and construct water infrastructure projects;

(9) recommendations for ways to accelerate the review, approval, and replacement of prioritized drinking water, wastewater, and stormwater infrastructure, while ensuring that the projects fully satisfy applicable environmental protection requirements;

(10) strategies to make drinking water, wastewater, and stormwater systems more resilient to the impacts of climate change, particularly in areas vulnerable to those impacts;

(11) a review of emerging best practices in the management of drinking water, wastewater, and stormwater systems, including, but not limited to, best practices that increase project cost efficiencies, and recommended policy solutions to facilitate the adoption of these practices;

(12) coordination with other State planning efforts, including those for development and redevelopment, transportation, housing, water supply, environmental protection, and energy;

(13) an assessment of existing strategies to address technical assistance availability and rate affordability, and recommendations for alternative strategies; and

(14) an explanation of the methodology used to develop the estimates pursuant to paragraphs (1) through (3) of subsection b. of this section, which shall include an explanation of how the department identified capital investment needs for drinking water, wastewater, and stormwater infrastructure that were not identified by water, wastewater, and stormwater systems.

c. During the course of preparing a State Water Infrastructure Investment Plan, the department shall:

(1) make available to all interested persons a copy of the proposed plan or proposed revisions to the current plan at least 90 days prior to submitting it to the Governor, and shall provide an opportunity for the public to submit written comments, consider the comments submitted, make any revisions as the department deems necessary, and provide a written summary of responses to comments and any revisions made based on those comments;

(2) conduct at least three public meetings, which may be conducted using video teleconferencing, on the proposed plan or proposed revisions and updates to the current plan;

(3) consider the comments made at public meetings and written comments, and make any revisions to the proposed plan or proposed revisions and updates to the current plan as the department deems necessary, and provide a written summary of responses to comments and any revisions made based on those comments;

(4) consult with the Highlands Water Protection and Planning Council established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4) concerning the possible impact of the State Water Infrastructure Investment Plan on the Highlands Regional Master Plan and the natural resources of the Highlands region;

(5) consult with the Pinelands Commission established pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.) concerning the possible impact of the plan on the Pinelands Comprehensive Management Plan and the natural resources of the Pinelands region; and

(6) consult with operators of drinking water, wastewater, and stormwater systems and other relevant stakeholders including smart growth, environmental protection, and environmental justice organizations in the State.

d. The Division of Local Government Services in the Department of Community Affairs, and the Board of Public Utilities shall provide to the department sufficient financial, budgetary, and other information gained from their regulatory authority over drinking water, wastewater, and stormwater utilities, as appropriate, to develop the Water Infrastructure Investment Plan.

3. The trust shall prepare and submit to the Governor, the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), and the department on or before May 15 of each year, an Annual Water Infrastructure Capital Program, which shall provide details about current water infrastructure projects in the State.

a. The Annual Water Infrastructure Capital Program shall include the following pieces of information for each current water infrastructure project in the State:

(1) the owner of the project;

(2) the total estimated cost of the project;

(3) all funding sources for the project;

(4) the amount of funds budgeted for the project;

(5) the amount of funds spent on the project as of the date the program was prepared;

(6) the amount of funds the trust and the department have committed to the project;

(7) the amount of funds needed to complete the project;

(8) any utilities with a service area that overlaps with the project, to the extent this information is available;

(9) any municipalities and counties involved in the project; and

(10) the category of the project in the trust's "H2LOans" online loan organization system.

b. The department, the Division of Local Government Services in the Department of Community Affairs, and the Board of Public Utilities shall provide to the trust, upon request and in a timely manner, the information necessary to implement the provisions of subsection a. of this section.

c. The trust shall publish the Annual Water Infrastructure Capital Program on its Internet website.

4. a. The trust shall develop and maintain an Internet website that provides information on the status of water infrastructure projects being financed by the trust, and which serves as the portal for all State and federal public documentation concerning those projects. The website shall include, for each project:

(1) the owner of the project;

(2) the total estimated cost of the project;

(3) all funding sources for the project;

(4) the amount of funds budgeted for the project;

(5) the amount of funds spent on the project as of the date the program was prepared;

(6) the amount of funds the trust has committed to the project;

(7) the amount of funds needed to complete the project;

(8) any utilities with a service area that overlaps with the project;

(9) any municipalities and counties affected by the project; and

(10) the category of the project in the trust's "H2LOans" online loan organization system;

(11) a chart which compares the planned and actual annual expenditures on the project;

(12) a list of actions which have a bearing on the progress of the project, including, but not limited to, awards for legal, insurance, engineering services, environmental review, public involvement and outreach, property acquisitions, and construction contracts; and

(13) a list of all actions by an external regulatory agency or any other party, which affected the cost or timely completion of the project.

b. The website, and the information concerning each water infrastructure project being financed by the trust, shall be updated at least twice per year.

5. A municipality that prepares or amends a master plan shall review the current State Water Infrastructure Investment Plan prepared pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and consider any applicable recommendations of the plan.

6. There is appropriated to the New Jersey Infrastructure Bank from the General Fund the amount of $200,000 to develop and maintain the Internet website required pursuant to section 4 of this act.

7. This act shall take effect immediately.

STATEMENT

This bill would direct the Department of Environmental Protection (DEP) to prepare a State Water Infrastructure Investment Plan every five years. The bill would also require the New Jersey Infrastructure Bank (NJIB) to publish additional information about water infrastructure projects in the State.

No later than 12 months after the bill’s effective date and every five years thereafter, the bill would direct the DEP, in consultation with the NJIB and, where appropriate, the Board of Public Utilities and the Department of Community Affairs, to prepare and submit to Governor and the Legislature a State Water Infrastructure Investment Plan (plan). The plan would serve as the State’s long-term capital investment strategy for upgrading and maintaining the State’s drinking water, wastewater, and stormwater infrastructure. The bill would establish various requirements for the contents of the plan, as enumerated in subsection b. of section 2 of the bill. In addition, each time the DEP prepares a plan, the bill would require the DEP to conduct at least three public meetings on the proposed plan, and meet with other stakeholders as described in subsection c. of section 2 of the bill.

The bill would also require the NJIB to prepare an Annual Water Infrastructure Capital Program (annual program), which would provide details about current water infrastructure projects in the State. The annual program would be submitted to the Governor, Legislature, and the DEP. The bill would establish various requirements for the content of the annual program, as enumerated in subsection a. of section 3 of the bill.

The bill would also require the NJIB to develop and maintain an Internet website that provides similar details about water infrastructure projects in the State. The bill would require the NJIB to update the website at least twice a year. In addition, the bill would establish various requirements for the content of the website, as enumerated in subsection b. of section 4 of the bill.

In addition, the bill would require municipalities to review and consider any applicable recommendations of the current State Water Infrastructure Investment Plan before adopting or amending their municipal master plans. Finally, the bill would appropriate $200,000 to the NJIB to develop and maintain the website required under section 4 of the bill.