ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 1512

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 13, 1996

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1512 (1R), with committee amendments.

      Assembly Bill No. 1512 (1R), as amended, changes 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.

      The bill provides that the $50,000,000 authorized by P.L.1989, c.181 will be used to provide grants or loans to local governments for the costs of stormwater management and combined sewer overflow abatement projects, all as identified in 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 to provide 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," for 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 DEP to cover its administrative expenses from moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Fund;" (5) authorizes temporary cross-use by the DEP and Trust of moneys in the two funds; and (6) 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 will remain inoperative.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note; the amendments to the bond act made by the bill, if approved by the voters, allow but do not require the use of previously authorized bonded indebtedness for financing the costs of stormwater management and combined sewer overflow abatement projects. The bill appropriates $5,000 to publish notice of the bond question.

COMMITTEE AMENDMENTS:

      The amendments allow DEP to cover its administrative costs out of bond moneys, subject to appropriation by the Legislature, and make clarifying changes to the form of the public question.