ASSEMBLY AGRICULTURE AND WASTE MANAGEMENT COMMITTEE
STATEMENT TO
ASSEMBLY, No. 1512
with committee amendments
STATE OF NEW JERSEY
DATED: FEBRUARY 22, 1996
The Assembly Agriculture and Waste Management Committee favorably reports Assembly Bill No. 1512 with committee amendments.
As amended, Assembly Bill No. 1512 amends the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989" (P.L.1989, c.181) to permit the Department of Environmental Protection (DEP) and the New Jersey Environmental Infrastructure Trust (Trust) to use the bond moneys to make grants or zero or low interest loans to local governments for stormwater management and overflow abatement projects. The 1989 bond act was approved in November, 1989 by the voters of New Jersey. The bill's proposed changes to that act must also be approved by the electorate. The ballot question is to be submitted for approval at the general election to be held in November, 1996.
As amended, the bill provides that the $50,000,000 authorized by P.L.1989, c.181 would be used for the purposes of providing grants or loans to local governments for the costs of stormwater management and combined sewer overflow abatement projects, all as identified pursuant to the stormwater management and combined sewer overflow abatement project priority list to be adopted by the Commissioner of DEP pursuant to section 28 of P.L.1989, c.181, as amended by the bill.
The bill provides for two separate, nonlapsing revolving funds: the "Stormwater Management and Combined Sewer Overflow Abatement Fund" and the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund."
Not less than $45,000,000 is to be deposited in the "Stormwater Management and Combined Sewer Overflow Abatement Fund" and allocated to the DEP for the purposes of providing grants or zero or low interest loans to local governments for the costs of stormwater management and combined sewer overflow abatement projects.
Up to $5,000,000 is to be deposited into the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund," with moneys in that fund to be used by the Trust to establish a reserve account for loans made by the Trust, and a guarantee account to secure debt issued by local governments in connection with the financing of a project.
The bill also: (1) authorizes the Trust to collect annual fees in connection with any loans or other services provided to local governments; (2) delegates to DEP responsibility for administering the "Stormwater Management and Combined Sewer Overflow Abatement Fund;" (3) authorizes the Trust to use income earned on moneys deposited in the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund" to cover unreimbursed administrative expenses; (4) authorizes temporary cross-use by the DEP and Trust of moneys in the two funds; and (5) requires DEP and the Trust to provide annual accounts of moneys expended from their respective funds.
The bill also provides that if the "New Jersey Environmental Infrastructure Trust Act" (a companion measure, Assembly Bill No. 1511) has not been enacted into law by the date of the approval of this act by the voters, the amendments made to the 1989 bond act pertaining to the Trust would remain inoperative.
Committee amendments make a number of substantive changes to the bill. The amendments: (1) restore the option of providing grants to local governments for the construction phase of stormwater management and combined sewer overflow abatement projects as well as for the mapping, planning or designing phases; (2) delete the provisions authorizing DEP to use interest earnings on bond moneys for administrative expenses; (3) delete the provisions permitting DEP to charge fees to local governments in connection with any loans or services rendered in connection therewith; and (4) require the insertion on the ballot question the statement that the Trust may use interest earnings on bond fund moneys for administrative expenses.
The committee amendments also make changes of a technical nature.