CHAPTER 221

 

An Act appropriating moneys to the Department of Environmental Protection 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 1997 capitalization grant made available to the State for wastewater treatment system projects pursuant to the "Water Quality Act of 1987" (33 U.S.C.s.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. s.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. s.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, section 1 of P.L.1995, c.219 or section 1 of P.L.1996, c.85, 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, section 6 of P.L.1995, c.219 and section 6 of P.L.1996, c.85, 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 a supplemental zero interest loan to the local government unit listed below for the following wastewater treatment system projects:


Project No.


Local Government Unit

Estimated Allowable Project Cost

881-01-1

Hawthorne Borough

$300,000


 

TOTAL

$300,000

    b. The loan authorized in this section shall be made for the difference between the allowable loan amount required by this project based upon low bid building costs or final building costs pursuant to section 6 of this act and the loan amount certified by the commissioner in State fiscal year 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 loan authorized in this section shall be made to the local government unit listed, up to the individual amount indicated and in the priority stated, to the extent sufficient funds are available, except as the project fails to meet the requirements of section 4 of this act.

    c. The zero interest loan for the project 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 1998 Project Priority List":


Project Number

Project Name

Estimated Allowable Project Cost

437-07

New Brunswick City

$ 1,450,000

958-02

Gloucester City

$ 1,400,000

927-02

Hammonton Town

$ 2,150,000

809-06

Atlantic County UA

$ 1,500,000

518-03

Buena Borough MUA

$ 950,000

818-04

Burlington County BCF

$ 5,200,000

700-07

Northwest Bergen County UA

$ 3,450,000

437-09

New Brunswick City

$ 1,000,000

336-01

Camden City

$ 800,000

640-05

Camden County MUA

$ 2,700,000

667-01

Ventnor City

$ 350,000

663-02

North Wildwood City

$ 1,100,000

361-01

Roseland Borough

$ 100,000

367-01

Merchantville Borough

$ 650,000

437-10

New Brunswick City

$ 2,750,000

433-09

Woodbridge Township

$ 650,000

703-04

Florham Park SA

$ 500,000

923-01

Hackensack City

$ 1,400,000

706-03

Washington Borough

$ 6,600,000

526-05

Harrison Township

$ 300,000

498-01

Mine Hill Township

$ 850,000

700-08

Northwest Bergen County UA

$ 1,900,000

945-06

Old Bridge Township MUA

$ 1,450,000

834-01

Nutley Township/Clifton City

$ 3,950,000

921-03

Millville City

$ 2,650,000

378-01

Bergenfield Borough

$ 950,000

809-07

Atlantic County UA

$ 3,750,000

706-04

Washington Borough

$ 1,050,000

362-02

Harrison Township

$ 1,250,000

665-01

Longport Borough

$ 850,000

536-04

East Windsor Township

$ 500,000

374-01

Cresskill Borough

$ 250,000

901-03

Highlands Borough

$ 650,000

504-03

Stanhope Borough

$ 150,000

 

TOTAL

$55,200,000


    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 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.1997, c.222; except that this requirement shall not apply to Project No. S340927-02 (Town of Hammonton), 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.1997, c.222 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, 1998, 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.1997, c.222, 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. 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, the trust is further authorized to utilize 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.85, and P.L.1997, c.221 to secure repayment of trust bonds issued to finance loans approved pursuant to P.L.1995, c.218, P.L.1996, c.87 or P.L.1997, c.222, 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 satisfy trust bond repayment or administrative fee payment deficiencies, the trust shall repay such sums to the department for deposit into the "Wastewater Treatment Fund" or the "1992 Wastewater Treatment Fund," as appropriate, from amounts received by or on behalf of the trust from local government units causing any such deficiency.


    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.1997, c.131. 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, subsection a. of P.L.1995, c.219 or subsection a. of section 11 of P.L.1996, c.85, 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 August 20, 1997.