CHAPTER 85
An Act appropriating moneys from the Wastewater Treatment Fund and the 1992 Wastewater Treatment Fund for the purpose of making zero interest loans to local government units to finance a portion of the cost of 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 Department of Environmental Protection from the "Wastewater Treatment Fund - State Revolving Fund Accounts" (hereinafter referred to as the "State Revolving Fund Accounts") contained within the "Wastewater Treatment Fund" and established pursuant to section 1 of P.L.1988, c.133 an amount equal to the Federal fiscal year 1996 capitalization grant made available to the State for wastewater treatment system projects pursuant to the "Water Quality Act of 1987" (33 U.S.C.§1251 et seq.) and any amendatory and supplementary acts thereto (hereinafter referred to as the "Federal Act").
(2) There is appropriated to the Department of Environmental Protection any fees and penalties received pursuant to the "Marine Protection, Research, and Sanctuaries Act of 1972," (33 U.S.C.§1401 et seq.), and any amendatory and supplementary acts thereto, as may be deposited in the State Revolving Fund Accounts.
(3) There is appropriated to the Department of Environmental Protection the unappropriated balances from the "Wastewater Treatment Fund" established pursuant to section 15 of the "Wastewater Treatment Bond Act of 1985," (P.L.1985, c.329).
(4) There is appropriated to the Department of Environmental Protection the sum of $10,000,000 from the "1992 Wastewater Treatment 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).
Any such amounts shall be for the purpose of making zero interest loans, to the extent sufficient funds are available, to local government units to finance a portion of the cost of construction of wastewater treatment system projects listed in sections 2 and 3 of this act, and for the purpose of implementing and administering the provisions of this act, to the extent permitted by the "Water Quality Act of 1987" (33 U.S.C.§1251 et seq.), the "Marine Protection, Research, and Sanctuaries Act of 1972," and any amendatory and supplementary acts thereto, the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992," and State law.
b. The department is authorized to make zero interest loans to the local government units for the wastewater treatment system projects listed in sections 2 and 3 of this act up to the individual amounts indicated and in the priority stated, except as any such amount may be reduced by the Commissioner of Environmental Protection pursuant to section 6 of this act, or if a project fails to meet the requirements of section 4 of this act.
c. The department is also authorized to make zero interest loans to the local government units for the wastewater treatment system projects listed in sections 2 and 3 of this act under the same terms, conditions and requirements as set forth in this section from any unexpended balances of the amounts appropriated pursuant to section 1 of P.L.1987, c.200, section 2 of P.L.1988, c.133, section 1 of P.L.1989, c.189, section 1 of P.L.1990, c.99, section 1 of P.L.1991, c.325, section 1 of P.L.1992, c.38, section 1 of P.L.1993, c.193, section 1 of P.L.1994, c.106 or section 1 of P.L.1995, c.219, including amounts resulting from the low bid building cost or final building cost reductions authorized pursuant to section 6 of P.L.1987, c.200, section 7 of P.L.1988, c.133, section 6 of P.L.1989, c.189, section 6 of P.L.1990, c.99, section 6 of P.L.1991, c.325, section 6 of P.L.1992, c.38, section 6 of P.L.1993, c.193, section 6 of P.L.1994, c.106 and section 6 of P.L.1995, c.219, and from any repayments of loans from the "Wastewater Treatment Fund" or amounts deposited therein during State fiscal year 1997 pursuant to the provisions of section 16 of P.L.1985, c.329, including any State Revolving Fund Accounts contained within the "Wastewater Treatment Fund."
2. a. The department is authorized to expend funds for the purpose of making supplemental zero interest loans to the local government units listed below for the following wastewater treatment system projects:
Project No. Local Government Unit Estimated Allowable
Project Cost
S340708-05-2 Camden County MUA $ 3,500,000
S340943-01-1 Mt. Laurel Township MUA $ 3,000,000
S340724-03-1 Morris Township $ 350,000
Total $ 6,850,000
b. The loans authorized in this section shall be made for the difference between the allowable loan amounts required by these projects based upon low bid building costs or final building costs pursuant to section 6 of this act and the loan amounts certified by the commissioner in State fiscal years 1991 and 1995 and for increased allowable costs as defined and determined in accordance with the rules and regulations adopted by the department pursuant to section 4 of P.L.1985, c.329. The loans authorized in this section shall be made to the local government units listed, up to the individual amounts indicated and in the priority stated, to the extent sufficient funds are available, except as any such project fails to meet the requirements of section 4 of this act.
c. The zero interest loans for the projects authorized in this section shall have priority over projects listed in section 3 of this act.
3. The following wastewater treatment system projects shall be known and may be cited as the "State Fiscal Year 1997 Project Priority List":
Project No. Local Government Unit Estimated Allowable
Project Cost
956-01-A Delanco Township SA $1,000,000
956-01-B Willingboro MUA 1,750,000
712-03 Burlington Township 5,050,000
927-02 Hammonton Town of 600,000
818-04 Burlington County
Board of Chosen Freeholders 6,750,000
895-02 Winslow Township 1,100,000
352-01 Florence Township 1,050,000
951-01 Washington Township MUA 6,350,000
724-04 Morris Township 1,500,000
480-03 Pequannock Township 900,000
640-05 Camden County MUA 2,750,000
966-01 Lavallette Borough 1,500,000
353-01 Egg Harbor Township MUA 1,500,000
440-03 Flemington Borough 900,000
942-02 Elizabeth City 5,850,000
689-02 Passaic Valley Sewerage
Commissioners 15,150,000
953-01 Jackson Township MUA 3,000,000
569-02 Byram Township 1,100,000
857-01 Atlantic Highlands Borough 550,000
942-01 Elizabeth City 1,600,000
921-02 Millville City 1,450,000
337-01 Bellmawr Borough 550,000
346-01 Medford Township 400,000
338-01 Somerdale Borough 150,000
257-01 Woodbury Heights Borough 650,000
537-04 Mount Olive Township 800,000
876-01 Chester Borough 850,000
Total $64,800,000
4. Any loan made by the Department of Environmental Protection pursuant to this act shall be subject to the following requirements:
a. The commissioner has certified that the project is in compliance with the provisions of P.L.1985, c.329 or P.L.1992, c.88 and any rules and regulations adopted pursuant thereto;
b. The loan amount shall not exceed 50% of the total estimated allowable project cost of the wastewater treatment system;
c. The loan shall be repaid within a period not to exceed 23 years of the making of the loan;
d. The loan shall be conditioned upon approval of a loan from the New Jersey Wastewater Treatment Trust pursuant to P.L.1996, c. (pending in the Legislature as Assembly Bill No. of 1996 and Senate Bill No. of 1996); except that this requirement shall not apply to Project No. S340927-02 (Town of Hammonton: $3,530,000), for which a loan has been made by the trust pursuant to P.L.1992, c.37 for both phases of this local government unit's wastewater treatment system project;
e. The loan shall be subject to any other terms and conditions as may be established by the commissioner and approved by the State Treasurer, which may include, notwithstanding any other provision of law to the contrary, subordination of a loan authorized in this act to loans made by the trust pursuant to P.L.1996, c. (pending in the Legislature as Assembly Bill No. of 1996 and Senate Bill No. of 1996) or to administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5).
5. The priority list and authorization for the making of loans pursuant to sections 2 and 3 of this act shall expire on July 1, 1997, and any local government unit which has not executed and delivered a loan agreement with the department for a loan authorized in this act shall no longer be entitled to that loan.
6. The Commissioner of Environmental Protection is authorized to reduce or increase the individual amount of loan funds made available to local government units pursuant to sections 2 and 3 of this act based upon low bid building costs or final building costs defined in and determined in accordance with rules and regulations adopted by the commissioner pursuant to section 4 of P.L.1985, c.329, provided that the total loan amount does not exceed the original loan amount.
7. The expenditure of the funds appropriated by this act is subject to the provisions and conditions of P.L.1985, c.329 or P.L.1992, c.88 and any rules and regulations adopted by the commissioner pursuant thereto.
8. The Department of Environmental Protection shall provide general technical assistance to any local government unit requesting assistance regarding wastewater treatment system project development or applications for funds for a project.
9. a. Prior to repayment to the "Wastewater Treatment Fund" pursuant to the provisions of section 16 of P.L.1985, c.329, and prior to repayment to the "1992 Wastewater Treatment Fund" pursuant to the provisions of section 28 of P.L.1992, c.88, repayments of loans made pursuant to this act may be utilized by the New Jersey Wastewater Treatment Trust established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) under terms and conditions established by the commissioner and trust, and approved by the State Treasurer, and consistent with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) and federal tax law, to the extent necessary to secure repayment of trust bonds issued to finance loans approved pursuant to P.L.1996, c. (pending in the Legislature as Assembly Bill No. of 1996 and Senate Bill No. of 1996), and to secure the administrative fees payable to the trust pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5) by the local government units receiving trust loans.
b. Repayments of loans made pursuant to P.L.1989, c.189, P.L.1990, c.99, P.L.1991, c.325, P.L.1992, c.38, P.L.1993, c.193, P.L.1994, c.106, P.L.1995, c.219 or P.L.1996, c. (pending in the Legislature as Assembly Bill No. of 1996 and Senate Bill No. of 1996) may be utilized by the trust to secure repayment of trust bonds issued to finance loans approved pursuant to P.L.1995, c.218 or P.L.1996, c. (pending in the Legislature as Assembly Bill No. of 1996 and Senate Bill No. of 1996), and to secure the administrative fees payable to the trust under these loans pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5).
c. To the extent that any loan repayment sums are used to secure trust bond repayments or administrative fee payments, the trust shall repay such sums to the department for deposit into the "Wastewater Treatment Fund" or the "1992 Wastewater Treatment Fund," as appropriate.
10. The Commissioner of Environmental Protection is authorized to enter into a capitalization grant agreement as may be required pursuant to the Federal Act.
11. a. The Director of the Division of Budget and Accounting in the Department of the Treasury is directed to transfer to the "Wastewater Treatment Fund" the entire sum of money, if any, appropriated to the Department of Environmental Protection for "Public Wastewater Facilities" in the "State Aid" section of P.L.1996, c. (the fiscal year 1997 appropriations act now before the Legislature as Senate Bill No. of 1996). The sum transferred to the "Wastewater Treatment Fund" pursuant to this section is appropriated to the New Jersey Wastewater Treatment Trust established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.). The trust shall deposit all or a portion of this sum as it may deem necessary and appropriate into one or more reserve funds established pursuant to section 11 of P.L.1985, c.334 (C.58:11B-11). These reserve funds shall include reserve funds constituted collectively as a water pollution control revolving fund for the purposes of the Federal Act and shall be known as the Trust Reserve Fund - State Revolving Fund Accounts; except that the trust shall not establish the Trust Reserve Fund - State Revolving Fund Accounts prior to the execution of a capitalization grant agreement entered into by the Commissioner of Environmental Protection pursuant to section 10 of this act.
b. Any portion of the sum appropriated to the trust pursuant to subsection a. of this section or subsection a. of section 11 of P.L.1989, c.189, subsection a. of section 11 of P.L.1990, c.99, subsection a. of section 11 of P.L.1991, c.325, subsection a. of section 11 of P.L.1992, c.38, subsection a. of section 11 of P.L.1993, c.193, subsection a. of section 11 of P.L.1994, c.106 or subsection a. of P.L.1995, c.219, plus any net earnings received from the investment or deposit of such moneys by the trust not required by the trust to establish reserve funds as provided in this section, shall be returned to the "Wastewater Treatment Fund" and placed in any account therein as determined by the commissioner to be used by the department for making zero interest loans to local government units to finance a portion of the cost of the wastewater treatment system projects listed in sections 2 and 3 of this act up to the individual amounts indicated and in the priority stated, except as any such amount may be reduced by the commissioner pursuant to section 6 of this act or if a project fails to meet the requirements of section 4 of this act; and except that the commissioner shall certify to the chairman of the trust that such funds are needed for zero interest loans before any transfer is made. In the event that the commissioner fails to make this certification, the unexpended balance not devoted to establishing reserve funds shall remain with the trust but shall not be expended by the trust until such expenditure is authorized pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.).
12. There is appropriated to the New Jersey Wastewater Treatment Trust established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) from repayments of loans deposited in any account, including the State Revolving Fund Accounts contained within the "Wastewater Treatment Fund" or the "1992 Wastewater Treatment Fund," and from any net earnings received from the investment and reinvestment of such deposits, such sums as the chairman of the trust shall certify to the Commissioner of Environmental Protection to be necessary and appropriate for deposit into one or more reserve funds established by the trust pursuant to section 11 of P.L.1985, c.334 (C.58:11B-11); except that the certification shall not be made with respect to the State Revolving Fund Accounts prior to the execution of a capitalization grant agreement entered into by the commissioner pursuant to section 10 of this act.
13. This act shall take effect immediately.
Approved July 26, 1996.