ASSEMBLY, No. 46

STATE OF NEW JERSEY

INTRODUCED MAY 20, 1996

By Assemblyman GREGG

An Act appropriating moneys from the "1992 Wastewater Treatment Trust Fund" to the New Jersey Wastewater Treatment Trust for use in providing financial assistance to local government units for the construction of wastewater treatment system projects.

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

    1. a. (1) There is appropriated to the New Jersey Wastewater Treatment Trust established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) the sum of $5,000,000 from the "1992 Wastewater Treatment Trust Fund" established pursuant to section 27 of the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992," (P.L.1992, c.88).

    (2) There is appropriated to the New Jersey Wastewater Treatment Trust any net earnings received from the investment or deposit of moneys in the "1992 Wastewater Treatment Trust Fund" pursuant to the provisions of section 29 of P.L.1992, c.88.

    b. The New Jersey Wastewater Treatment Trust shall utilize the funds appropriated by subsection a. of this section to establish a reserve fund in accordance with and subject to the provisions of subsection c. of section 12 of P.L.1992, c.88 and section 11 of P.L.1985, c.334 (C.58:11B-11).

    2. The expenditure of the sums appropriated by this act is subject to the provisions and conditions of P.L.1992, c.88 and P.L.1985, c.334 (C.58:11B-1 et seq.).

    3. This act shall take effect immediately.

STATEMENT

    This bill would appropriate the sum of $5 million to the New Jersey Wastewater Treatment Trust from the "1992 Wastewater Treatment Trust Fund" established pursuant to the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992," (P.L.1992, c.88) and any net earnings received from the investment or deposit of moneys in the "1992 Wastewater Treatment Trust Fund."

    The New Jersey Wastewater Treatment Trust, established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.), is a State financing authority which can issue bonds, notes and other debt obligations for the purpose of providing financial assistance to local governments for wastewater treatment system projects.

    On November 3, 1992 the voters approved the $345 million "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992," P.L.1992, c.88. Section 12 of the 1992 bond act allocated $50 million for the financing of wastewater treatment system projects, in order to bring such systems into full compliance with permits issued pursuant to the "Water Pollution Control Act", P.L.1977, c.74 (C.58:10A-1 et seq.), to provide adequate wastewater treatment in areas where large numbers of septic systems have malfunctioned or become obsolete, or to connect an obsolete or malfunctioning wastewater treatment system to another wastewater treatment system.

    Section 12 b. of the 1992 bond act allocated $45 million to the DEP for zero interest loans to local governments for wastewater treatment system projects. Section 12 c. allocated $5 million to the Trust to be used for reserve and guarantee funding to secure debt issued by the Trust or by local governments in connection with the financing of wastewater treatment system projects.

    This bill would appropriate $5 million and the net interest earnings from the "1992 Wastewater Treatment Trust Fund" to the Trust for the purpose of establishing a reserve fund as required by the 1992 bond act.

Appropriates $5 million in bond funds to the New Jersey Wastewater Treatment Trust for the construction of wastewater treatment system projects.