ASSEMBLY AGRICULTURE AND WASTE MANAGEMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2837

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 12, 1997

      The Assembly Agriculture and Waste Management Committee favorably reports Assembly Bill No. 2837 with committee amendments.

      As amended, this bill would establish a grant and loan program to assist counties and public authorities in the payment of stranded investment costs. The Commissioner of Community Affairs shall prioritize funding to counties and public authorities according to per capita stranded investment cost in the county, giving highest priority for funding to the county or public authority with the greatest per capita stranded investment cost in the State.

      In order to qualify for funding, a county or public authority must prepare, and submit to the Department of Community Affairs, a plan to reduce the solid waste charges ("tipping fees") received at the solid waste facility for solid waste disposal. The plan must include, but not necessarily be limited to, provisions concerning: (1) the assumption by the governing body of the county of some or all of the administrative costs of implementing its district solid waste management plan; (2) the proper delegation to municipalities of the costs of certain county solid waste services, including, but not limited to, recycling or household hazardous waste management, which are currently part of the solid waste charges received at the solid waste facility for solid waste disposal; (3) the refinancing of debt to reduce the solid waste charges received at the solid waste facility for solid waste disposal; (4) any other arrangements as may be necessary to reduce the solid waste charges received at the solid waste facility for solid waste disposal; or (5) the prudent application of grant or loan moneys to the plan prepared by the county or public authority to ensure the long-term competitiveness of the resource recovery facility as well as the payment of principal on bonded indebtedness. The plan shall also include a report related to stranded investments of the public authority or county.

      The bill would appropriate $20 million to the Department of Community Affairs for the grant and loan program.

      The committee amended the bill to require the commissioner, in prioritizing funding for counties and public authorities, to provide all funds necessary to compensate a county or public authority for any revenue deficiency due to the abrogation of an interdistrict agreement by a sending public authority or county prior to providing any funds to any other county or public authority. In addition, the committee amendments clarify and update the legislative findings.