SENATE, No. 470

STATE OF NEW JERSEY

INTRODUCED JANUARY 18, 1996

By Senators CIESLA and KYRILLOS

An Act amending and supplementing the title and body of P.L.1985, c.330 to authorize the Department of Environmental Protection and the "New Jersey Environmental Infrastructure Trust" to use bond moneys therefrom to provide loans and loan guarantees to local government units for solid waste management projects; providing for the submission of this act to the people at a general election, and making an appropriation.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. The title of P.L.1985, c.330 is amended to read as follows:

AN ACT to authorize the creation of a debt of the State of New Jersey by the issuance of bonds of the State in the aggregate principal amount of $85,000,000.00 to provide funds for loans and loan guarantees to local government units for [the construction of resource recovery facilities and environmentally sound sanitary landfill facilities] solid waste management projects; authorizing the issuance of refunding bonds; providing the ways and means to pay the interest on the bonds and refunding bonds and also to pay and discharge the principal thereof; providing for submission of this act to the people at a general election: and providing an appropriation therefor.

(cf: P.L.1985, c.330, title)

    2. Section 2 of P.L.1985, c.330 is amended to read as follows:

    2. a. The Legislature finds [and declares] that an environmentally sound strategy for the disposal of solid waste is necessary for the protection of the public health and safety and the preservation of the State's natural resources; that the State should end its [virtually exclusive] reliance on [traditional] out-of-state landfills as a solid waste disposal method and encourage the [utilization of resource recovery facilities designed to simultaneously dispose of and recover the energy contained in solid waste; that for areas of the State where the construction of resource recovery facilities is not a feasible economic option, the State should encourage the] construction of composting facilities, materials recovery facilities, recycling centers, resource recovery facilities and environmentally sound sanitary landfill facilities equipped with state-of-the-art pollution control systems;that the [cost of constructing and operating a resource recovery facility or an environmentally sound sanitary landfill facility will significantly increase the cost of solid waste disposal above the historically low rates associated with the use of traditional landfills;]proper in-state disposal of solid waste and the maximum practical recovery of recyclable materials from solid waste are matters of basic concern to all citizens of this State, and ensuring the implementation of an efficient statewide solid waste management strategy is a governmental function thoroughly imbued with the public interest; that the continued exportation of a significant portion of New Jersey's solid waste stream to out-of-state disposal sites is a short-sighted expedient; and that for self-evident economic, environmental and public health considerations, it is imperative that the State renew its commitment to, and provide the resources for, achieving self-sufficiency with respect to solid waste disposal; and that while the responsibility to plan for the rational and environmentally sound disposal of solid waste rests with solid waste management districts, the State has the responsibility to provide financial assistance to solid waste management districts in order to facilitate the transition to environmentally sound solid waste disposal methods[; and that it is therefore] in a timely manner.

    b. The Legislature further finds that the environmentally sound and proper closure of municipal solid waste landfills, including the remediation of contamination problems posed by terminated but improperly closed municipal landfills, is a governmental function affected with the public interest; that while the "Sanitary Landfill Facility Closure and Contingency Fund Act," P.L.1981, c.306 (C.13:1E-100 et seq.) provided a means by which the owners and operators of sanitary landfill facilities would provide financial assurance for proper closure, it provides no funds for municipal solid waste landfills terminated prior to its enactment; that while the responsibility for the proper closure of municipal solid waste landfills that ceased operating prior to the enactment of P.L.1981, c.306 should ideally rest with the users thereof, the considerable closing costs, including the cost of remediating contamination problems, required to ensure the proper closure of these facilities are, in many cases, beyond the financial capabilities of affected municipalities; that the various environmental problems resulting from terminated municipal landfills, including methane gas migration, soil erosion, and ground and surface water contamination, affect the quality of life of all citizens of this State; and that since the proper closure and post-closure care required at each terminated municipal landfill will ultimately enhance the quality of life of all citizens of New Jersey, the State has the responsibility to provide financial assistance to municipalities to stabilize these costs in an efficient and equitable manner.

    c. The Legislature further finds that in many cases it may be beneficial for local governments to mine sanitary landfills for the purposes of (1) extracting materials to be used, reused, recycled, sold or composted; (2) reclaiming land; or (3) recovering landfill disposal capacity; that it is in the public interest for local governments to mine certain sanitary landfills; and that State financial assistance may be necessary for local governments to initiate landfill mining projects.

    d. The Legislature therefore determines that it is in the public interest for the State to issue bonds and establish a Resource Recovery and Solid Waste Disposal Facility Fund and a Solid Waste Management Trust Fund for the [purpose] purposes of providing financial assistance to local government units for (1) the construction of composting facilities, materials recovery facilities, recycling centers, resource recovery facilities and environmentally sound sanitary landfill facilities; (2) municipal solid waste landfill closure projects; and (3) landfill mining projects.

(cf: P.L.1985, c.330, s.2)

    3. Section 3 of P.L.1985, c.330 is amended to read as follows:

    3. As used in this act:

    [a.]"Bonds" means the bonds authorized to be issued, or issued, under this act;

    "Closure" means all activities associated with the design, purchase, construction or maintenance of all measures required by the department, pursuant to law, in order to remediate, prevent, minimize or monitor pollution or health hazards resulting from municipal solid waste landfills subsequent to the termination of operations at any portion thereof, including, but not limited to, the placement of final earthen or vegetative cover, groundwater remediation, the installation of methane gas vents or monitors and leachate monitoring wells or collection systems, and long-term operations and maintenance;

    "Commercial solid waste" means any nonhazardous solid waste derived from wholesale, retail or service establishments, including stores, markets, theaters, offices, restaurants, warehouses, or from other non-manufacturing commercial activities;

    [b.]"Commission" means the New Jersey Commission on Capital Budgeting and Planning;

    [c.]"Commissioner" means the Commissioner of the Department of Environmental Protection;

    "Composting facility" means a solid waste facility at which the organic components of solid waste are processed and separated utilizing manual or mechanical methods and broken down into their chemical elements and compounds to form humus for the purposes of beneficial use or reuse as approved by the department;

    [d.]"Construct" and "construction" mean, in addition to the usual meanings thereof, the designing, engineering, financing, extension, repair, remodeling, or rehabilitation, or any combination thereof, of a composting facility, materials recovery facility, recycling center, resource recovery facility or an environmentally sound sanitary landfill facility or any component part thereof;

    [e.]"Cost" means the expenses incurred in connection with: the acquisition by purchase, lease or otherwise, the development, and the construction of any project authorized by this act; the acquisition by purchase, lease or otherwise, and the development of any real or personal property for use in connection with any project authorized by this act, including any rights or interests therein; the execution of any agreements and franchises deemed by the department to be necessary or useful and convenient in connection with any project authorized by this act; the procurement of engineering, inspection, planning, legal, financial or other professional services, including the services of a bond registrar or an authenticating agent; the issuance of bonds, or any interest or discount thereon; the administrative, organizational, operating or other expenses incident to the financing, completing and placing into service of projects authorized by this act; the establishment of a reserve fund or funds for working capital, operating, maintenance or replacement expenses and for the payment or security, principal or interest on bonds, as the Director of the Division of Budget and Accounting in the Department of the Treasury may determine; and reimbursement to any fund of the State of moneys which may have been transferred or advanced therefrom to any fund created by this act, or of any moneys which may have been expended therefrom for or in connection with any project authorized by this act;

    [f.]"Department" means the Department of Environmental Protection;

    "Designated agency" means the public authority, or the department, unit or committee of the county government, which is designated by the board of chosen freeholders to supervise the implementation of the district solid waste management plan pursuant to section 12 of P.L.1975, c.326 (C.13:1E-21), including the implementation of the district recycling plan required pursuant to section 3 of P.L.1987, c.102 (C.13:1E-99.13), and which has statutory power to enter into contracts or agreements and to borrow money;

    [g.]"Environmentally sound sanitary landfill facility" means a sanitary landfill facility which is equipped with a liner or liners, a leachate control and collection system, and a groundwater pollution monitoring system, or any other pollution control or other engineering device required by the department pursuant to law or rule and regulation, and which is identified and included in a district solid waste management plan pursuant to the provisions of the "Solid Waste Management Act," P.L.1970, c.39 (C.13:1E-1 et seq.);

[   h.]"Government securities" means any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States, including obligations of any federal agency to the extent those obligations are unconditionally guaranteed by the United States of America and any certificates or any other evidences of an ownership interest in those obligations of, or unconditionally guaranteed by, the United States or in specified portions of those obligations, which may consist of the principal of, or the interest on, those obligations;

    "Household solid waste" means any solid waste derived from households, including but not limited to single and multiple residences, hotels and motels, bunkhouses, ranger stations, crew quarters, campgrounds, picnic grounds and day use recreation areas, except that "household solid waste" shall not include septic waste as defined in section 3 of P.L.1970, c.40 (C.48:13A-3);

     "Industrial solid waste" means any solid waste derived from manufacturing, industrial and research and development processes and operations that is not a hazardous waste as defined in section 1 of P.L.1976, c.99 (C.13:1E-38), except that "industrial solid waste" shall not include mining waste, oil waste, gas waste, or cement kiln dust waste;

    "Landfill mining project" means any work relating to the environmentally sound excavation and removal of materials from a sanitary landfill facility for the purposes of recycling, use, reuse, sale, or composting;

    [i.]"Local government unit" means (1) a county, municipality, [municipal or county utility authority,]designated agency, public authority or any other political subdivision of the State authorized to construct or operate a composting facility, materials recovery facility, recycling center, resource recovery facility or an environmentally sound sanitary landfill facility; (2) a county, municipality, designated agency, public authority or any other political subdivision of the State authorized to undertake a municipal solid waste landfill closure project; or (3) a county, municipality, designated agency, public authority or any other political subdivision of the State authorized to undertake a landfill mining project;

    "Materials recovery facility" means a transfer station or other authorized solid waste facility at which nonhazardous solid waste, which material is not source separated by the generator thereof prior to collection, is received for onsite processing and separation utilizing manual or mechanical methods for the purposes of recovering recyclable materials for disposition and recycling prior to the disposal of the residual solid waste at an authorized solid waste facility;

    "Municipal solid waste landfill" means a landfill that received for disposal household solid waste and at least one of the following: (1) commercial solid waste, (2) industrial solid waste, or (3) waste material that was received for disposal prior to October 21, 1976 and that is included within the definition of hazardous waste adopted by the federal government pursuant to the "Resource Conservation and Recovery Act," at 42 U.S.C. §6921; except that "municipal solid waste landfill" shall not include any landfill that is approved for disposal of hazardous waste and regulated pursuant to Subchapter III of the "Resource Conservation and Recovery Act," 42 U.S.C. §6921 et seq;

    [j.]"Project" or "solid waste management project" means any work relating to (1) the construction of a composting facility, materials recovery facility, recycling center, resource recovery facility or an environmentally sound sanitary landfill facility; (2) a municipal solid waste landfill closure project; or (3) a landfill mining project, all as undertaken by a local government unit;

    "Public authority" means any solid waste management authority created pursuant to the "solid waste management authorities law," P.L.1968, c.249 (C.40:66A-32 et seq.); municipal or county utilities authority created pursuant to the "municipal and county utilities authorities law," P.L.1957, c.183 (C.40:14B-1 et seq.); incinerator authority created pursuant to the "incinerator authorities law," P.L.1948, c.348 (C.40:66A-1 et seq.); county improvement authority created pursuant to the "county improvement authorities law," P.L.1960, c.183 (C.40:37A-44 et seq.); pollution control financing authority created pursuant to the "New Jersey Pollution Control Financing Law," P.L.1973, c.376 (C.40:37C-1 et seq.), or any other public body corporate and politic created for solid waste management purposes in any county or municipality, pursuant to the provisions of any law;

    "Recycling center" means any facility designed and operated solely for receiving, storing, processing or transferring source separated recyclable materials;

    [k.]"Resource recovery facility" means a solid waste facility constructed and operated for the incineration of solid waste for energy production and the recovery of metals and other materials for reuse[,]; or a mechanized composting facility, or any other [solid waste] facility constructed or operated for the collection, separation, recycling, and recovery of metals, glass, paper, and other materials for reuse or for energy production, and which is identified and included in a district solid waste management plan pursuant to the provisions of the "Solid Waste Management Act," P.L.1970, c.39 (C.13:1E-1 et seq.);]

    [l.]"Sanitary landfill facility" means a solid waste facility at which solid waste is deposited on or in the land as fill for the purpose of permanent disposal or storage for a period exceeding six months, except that it shall not include any waste facility approved for the disposal of hazardous waste;

    "Trust" means the New Jersey Environmental Infrastructure Trust established pursuant to the "New Jersey Environmental Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-1 et seq.).

(cf: P.L.1985, c.330, s.3)

    4. Section 5 of P.L.1985, c.330 is amended to read as follows:

    5. a. Bonds of the State of New Jersey are authorized to be issued in the aggregate principal amount of $85,000,000.00 for the purpose of making low interest or zero interest State loans to local government units for financing the costs of solid waste management projects identified pursuant to the project priority list adopted by the commissioner pursuant to section 25 of P.L. , c. (C. )(before the Legislature as Senate Bill No. 468 of 1996) and section 9 of P.L. , c. (before the Legislature as this bill), including (1) the construction of composting facilities, materials recovery facilities, recycling centers, resource recovery facilities and environmentally sound sanitary landfill facilities; (2) municipal solid waste landfill closure projects; and (3) landfill mining projects.

    b. Payments of principal and interest on loans made from the "Resource Recovery and Solid Waste Disposal Facility Fund" shall be made to the "Resource Recovery and Solid Waste Disposal Facility Fund."

(cf: P.L.1985, c.330, s.5)

    5. Section 10 of P.L.1985, c.330 is amended to read as follows:

    10. a. The bonds shall recite that they are issued for the purposes set forth in section 5 of this act, that they are issued pursuant to this act, that this act was submitted to the people of the State at the general election held in the month of November, 1985, and that this act was approved by a majority of the legally qualified voters of the State voting thereon at the election. [This recital] The bonds shall also recite, if issued after the effective date of P.L. , c. (before the Legislature as this bill), that the amendments and supplements to P.L.1985, c.330 were submitted to the people of the State at the general election held in the month of November, 1996, and were approved by a majority of the legally qualified voters of the State voting thereon. These recitals shall be conclusive evidence of the validity of the bonds and of the authority of the State to issue them. Any bonds containing [this recital] the recitals shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delivered in conformity herewith and with all other provisions of laws applicable thereto, and shall be incontestable for any cause.

    b. The bonds shall be issued in [such] those denominations and in [such] the form or forms, whether coupon, fully-registered or book-entry, and with or without provisions for the interchangeability

thereof, as may be determined by the issuing officials.

(cf: P.L.1985, c.330, s.10)

    6. Section 14 of P.L.1985, c.330 is amended to read as follows:

    14. The proceeds from the sale of the bonds authorized pursuant to subsection a. of section 5 of P.L.1985, c.330 shall be paid to the State Treasurer[, to be held thereby] for deposit in a separate nonlapsing revolving fund, which shall be known as the "Resource Recovery and Solid Waste Disposal Facility Fund[.]," [The proceeds of this fund shall be deposited in such depositories as may be selected by the State Treasurer to the credit of the fund] for use by the department as hereinafter provided.

(cf: P.L.1985, c.330, s.14)

    7. Section 15 of P.L.1985, c.330 is amended to read as follows:

    15. a. The moneys in the "Resource Recovery and Solid Waste Disposal Facility Fund" are specifically dedicated and shall be applied to financing the cost of the purposes set forth in subsection a. of section 5 of [this act] P.L.1985, c.330, and all such moneys are appropriated for those purposes[, and]. However, no [such] moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriation thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature [has] shall not have then adopted an act making a specific appropriation of any of the moneys. Any act appropriating moneys from the "Resource Recovery and Solid Waste Disposal Facility Fund" shall identify the specific project or projects to be funded [with those] by the moneys [and the amount and terms and conditions of any loan made from the "Resource Recovery and Solid Waste Disposal Facility Fund."]. Payments of principal and interest on loans made from the "Resource Recovery and Solid Waste Disposal Facility Fund" shall be returned to that fund for use for any authorized purpose to which moneys in the fund may be used pursuant to P.L.1985, c.330 or P.L. , c. (before the Legislature as this bill).

     (1) Payments of principal and interest on loans returned to the "Resource Recovery and Solid Waste Disposal Facility Fund" may be made available to the trust, with the concurrence of the department, for temporary use by the trust for any of the purposes set forth in section 8 of P.L. , c. (before the Legislature as this bill), under terms and conditions established therefor by the commissioner and the trust and approved by the State Treasurer. A maximum of $40,000,000 may be made available to the trust for these purposes.

    (2) Any moneys made available to the trust pursuant to this paragraph shall be deposited in a separate nonlapsing revolving fund, which shall be known as the "Solid Waste Management Trust Fund," for use by the trust as hereinafter provided. The trust shall repay to the "Resource Recovery and Solid Waste Disposal Facility Fund" any moneys made available for temporary use. Repayment shall be in accordance with the terms and conditions approved therefor.

    If the "New Jersey Environmental Infrastructure Trust Act" (before the Legislature as Senate Bill No. 468 of 1996) has not been enacted into law by the date of the approval of this act by the voters, paragraphs (1) and (2) of this subsection shall be inoperative.

    b. At any time prior to the issuance and sale of bonds under this act, the State Treasurer is authorized to transfer from any available [money] moneys in any fund of the treasury of the State to the credit of the "Resource Recovery and Solid Waste Disposal Facility Fund" [such] those sums as [he] the State Treasurer may deem necessary. The [sum] sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.

    c. Pending their application to the purposes provided in [this act] P.L.1985, c.330 or P.L. , c. (before the Legislature as this bill), the moneys in the "Resource Recovery and Solid Waste Disposal Facility Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law. Net earnings received from the investment or deposit of moneys in the "Resource Recovery and Solid Waste Disposal Facility Fund" shall be paid into the "Resource Recovery and Solid Waste Disposal Facility Fund[.]" for use by the department to cover administrative expenses incurred in administering the fund. Any moneys not required for administrative expenses shall be used for any other authorized purpose to which moneys in the fund may be used.

    d. The department may charge and collect from local government units annual fees and charges in connection with any loans or other services provided by the department in amounts sufficient to reimburse the department for all reasonable costs necessarily incurred by it in connection with its financings, as the department may determine to be reasonable. The fees and charges shall be in accordance with a uniform schedule published by the department for the purpose of providing actual cost reimbursement for the services rendered.

(cf: P.L.1985, c.330, s.15)

    8. (New section) a. The moneys in the "Solid Waste Management Trust Fund" are specifically dedicated and allocated to, and shall be applied to the cost of, the establishment by the trust of reserve and loan guarantee accounts within that fund. The reserve account is to be used to secure debt issued by the trust pursuant to the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), and the guarantee fund is to be used by the trust to secure debt issued by a local government unit. The trust shall not directly or indirectly use any moneys paid to it pursuant to this section for the purpose of issuing a loan guarantee to a local government unit in connection with the financing of a solid waste management project unless the project, and the amount and the terms or conditions of the loan guarantee, shall have been approved by the Legislature. Moneys in the reserve and loan guarantee accounts may be made available to the department, with the concurrence of the trust, for temporary use by the department in implementing the provisions of P.L.1985, c.330 or P.L. , c. (before the Legislature as this bill), under terms and conditions established therefor by the commissioner and the trust and approved by the State Treasurer. The department shall repay to the "Solid Waste Management Trust Fund" any sums made available for temporary use. Repayment shall be in accordance with the terms and conditions approved therefor.

    b. At any time prior to the issuance and sale of bonds under the provisions of P.L.1985, c.330 or P.L. , c. (before the Legislature as this bill), the State Treasurer is authorized to transfer from any available moneys in any fund of the treasury of the State to the credit of the "Solid Waste Management Trust Fund" those sums as the State Treasurer may deem necessary. The sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.

    c. Pending their application to the purposes provided in P.L.1985, c.330 or P.L. , c. (before the Legislature as this bill), the moneys in the "Solid Waste Management Trust Fund" may be invested and reinvested by the trust as are other trust funds in the custody of the trust. Net earnings received from the investment or deposit of moneys in the "Solid Waste Management Trust Fund" shall be paid into the "Solid Waste Management Trust Fund" for use by the trust to cover administrative expenses incurred in administering the fund. Any moneys not required for administrative expenses shall be used for any other authorized purpose to which moneys in the fund may be used.

    d. The trust may charge and collect from local government units annual fees and charges in connection with the loans, guarantees or other services provided by the trust in amounts sufficient to reimburse the trust for all reasonable costs necessarily incurred by it in connection with its financings and the establishment and maintenance of reserve and loan guarantee accounts or other funds, as the trust may determine to be reasonable. The fees and charges shall be in accordance with a uniform schedule published by the trust for the purpose of providing actual cost reimbursement for the services rendered.

    9. (New section) a. The commissioner shall for each fiscal year develop a priority system for solid waste management projects and shall establish the ranking criteria and funding policies therefor. The commissioner shall set forth a project priority list for funding for each fiscal year and shall include the aggregate amount of funds to be authorized for these purposes. The project priority list shall be in conformance with applicable provisions of the "Solid Waste Management Act," P.L.1970, c.39 (C.13:1E-1 et seq.), and any amendatory or supplementary acts thereto. The project priority list shall include a description of each project and its purpose, impact, cost, and construction schedule, and an explanation of the manner in which priorities were established. The priority system and project priority list for the ensuing fiscal year shall be submitted to the Legislature on or before January 15 of each year.

    (1) Any municipal solid waste landfill closure project on the project priority list shall be based on the closure program for municipal solid waste landfills established by the department pursuant to section 32 of P.L. , c. (C. )(before the Legislature as Senate Bill No. 468 of 1996).

    (2) Any landfill mining project on the project priority list shall be based on the landfill mining program for sanitary landfill facilities established by the department pursuant to section 33 of P.L. , c. (C. )(before the Legislature as Senate Bill No. 468 of 1996).

    b. No moneys shall be expended for loans during a fiscal year for any solid waste management project unless the expenditure is authorized pursuant to an appropriations act.

    c. As part of the annual submission required by this section, the department shall provide a financial accounting of all project expenditures made in the preceding year, and of all administrative expenses incurred by the department from interest earnings from the "Resource Recovery and Solid Waste Disposal Facility Fund" in connection therewith.

    d. As part of the annual submission required by this section, the trust shall provide a financial accounting of all project expenditures made in the preceding year, and of all administrative expenses incurred by the trust from interest earnings from the "Solid Waste Management Trust Fund" in connection therewith.

    If the "New Jersey Environmental Infrastructure Trust Act" (before the Legislature as Senate Bill No. 468 of 1996) has not been enacted into law by the date of the approval of this act by the voters, subsection d. of this section shall be inoperative.

    10. (New section) a. The provisions of any other law, or of any rule or regulation adopted pursuant thereto to the contrary notwithstanding, the unexpended balance of those moneys heretofore appropriated to the department from the "Resource Recovery and Solid Waste Disposal Facility Fund" for the purpose of providing an interest-free loan to Bergen county for the design, acquisition and construction of a resource recovery facility pursuant to section 2 of P.L.1985, c.335, and the unexpended balance of those moneys heretofore appropriated to the department from the "Resource Recovery and Solid Waste Disposal Facility Fund" for the purpose of providing an interest-free loan to Passaic county for the design, acquisition and construction of a resource recovery facility pursuant to P.L.1988, c.86, shall revert to the "Resource Recovery and Solid Waste Disposal Facility Fund," and may be appropriated therefrom for any purpose authorized under P.L.1985, c.330, as amended and supplemented by P.L. , c. (before the Legislature as this bill).

    b. On and after the effective date of P.L. , c. (before the Legislature as this bill), all moneys accruing to the "Resource Recovery and Solid Waste Disposal Facility Fund" from the repayment of principal and interest on loans made pursuant to P.L.1985, c.330, all moneys accruing to that fund pursuant to P.L.1985, c.331, and any interest earned on the management of moneys in that fund, shall be reserved for appropriation for any solid waste management projects authorized under P.L. , c. (before the Legislature as this bill).

    c. Nothing in this section shall be deemed to impede the State Treasurer in fulfilling his responsibility under section 17 of P.L.1985, c.330.

    11. (New section) For the purpose of complying with the provisions of the State Constitution, this amendatory and supplementary act shall be submitted to the people at the general election to be held in the month of November, 1996. To inform the people of the contents of this amendatory and supplementary act, it shall be the duty of the Secretary of State, after this section takes effect, and at least 60 days prior to the election, to cause this amendatory and supplementary act to be published at least once in one or more newspapers of each county, if any newspapers are published therein, and to notify the clerk of each county of this State of the passage of this amendatory and supplementary act; and the clerks respectively, in accordance with the instructions of the Secretary of State, shall have printed on each of the ballots the following:

    If you approve of the act entitled below, make a cross (X), plus (+), or check () mark in the square opposite the word "Yes."

    If you disapprove of the act entitled below, make a cross (X), plus (+), or check () mark in the square opposite the word "No."

    If voting machines are used, a vote of "Yes" or "No" shall be equivalent to these markings respectively.

      Approval of these revisions to the "Resource Recovery and Solid Waste Disposal Facility Bond Act of 1985" would not involve any new State bonded indebtedness.

    The fact and date of the approval or passage of this amendatory and supplementary act, as the case may be, may be inserted in the appropriate place after the title in the ballot. No other requirements of law of any kind or character as to notice or procedure, except as herein provided, need be adhered to.

    The votes so cast for and against the approval of this amendatory and supplementary act, by ballot or voting machine, shall be counted and the result thereof returned by the election officer, and a canvass of the election had in the same manner as is provided for by law in the case of the election of a Governor, and the approval or disapproval of this act so determined shall be declared in the same manner as the result of an election for a Governor, and if there is a majority of all the votes cast for and against it at the election in favor of the approval of this amendatory and supplementary act, then all the provisions thereof not made effective theretofore shall take effect forthwith.

    12. (New section) There is appropriated from the General Fund the sum of $5,000 to the Department of State for expenses in connection with the publication of the notice pursuant to section 11 of this act.

     13. Section 11 and 12 of this act shall take effect immediately, and the remainder of the act shall take effect as and when provided in section 11 of this act.

STATEMENT

    This bill amends and supplements the "Resource Recovery and Solid Waste Disposal Facility Bond Act of 1985" (P.L.1985, c.330) to authorize the use of a portion of the bond moneys by the "New Jersey Environmental Infrastructure Trust," and to specify the uses to which the bond moneys may be spent.

    The 1985 bond act was approved in November, 1985, by the voters of New Jersey. The proposed revisions to the "Resource Recovery and Solid Waste Disposal Facility Bond Act of 1985" contained in this bill are also required to be approved by the electorate.

    The "Resource Recovery and Solid Waste Disposal Facility Bond Act of 1985" authorized the issuance of $85 million in State general obligation bonds for the purpose of making loans to local governments for financing the construction of resource recovery facilities and environmentally sound sanitary landfill facilities.

    The bill provides that the $85 million in bonds authorized pursuant to P.L.1985, c.330 would be used for the purpose of making low interest or zero interest State loans to local governments for financing the costs of solid waste management projects identified pursuant to the project priority list adopted by the Commissioner of DEP under section 9 of the bill. Solid waste management projects would include: (1) the construction of composting facilities, materials recovery facilities, recycling centers, resource recovery facilities and environmentally sound sanitary landfill facilities; (2) municipal solid waste landfill closure projects; and (3) landfill mining projects.

    The 1985 bond act provides that payments of principal and interest on loans made from the "Resource Recovery and Solid Waste Disposal Facility Fund" would be made to that fund. The bill provides that up to $40 million in these loan repayments may be made available to the "New Jersey Environmental Infrastructure Trust," a proposed financing authority which would be empowered to make loans and loan guarantees to local governments for financing the costs of solid waste management projects pursuant to the "New Jersey Environmental Infrastructure Trust Act" (a companion measure, Senate Bill No. 468 ).

    The Trust would be authorized to use these bond moneys to secure local debt and to secure revenue bonds or other debt issued by the trust, the proceeds of which will be used to make loan guarantees to local governments for the costs of financing eligible projects.

    The bill also provides that moneys from cancelled resource recovery facility projects would revert to the Resource Recovery and Solid Waste Disposal Facility Fund. There is approximately $2.5 million in unappropriated funds in the Fund, inclusive of interest earned and loan repayments received. The return of moneys from cancelled resource recovery facility projects in Bergen County, for which a $15 million appropriation was made to the Department of Environmental Protection from the Fund pursuant to P.L.1985, c.335, and Passaic County, for which a $13.3 million appropriation was made to the department from the Fund pursuant to P.L.1988, c.86, would increase the available balance in the Resource Recovery and Solid Waste Disposal Facility Fund to approximately $30.8 million.

    If the "New Jersey Environmental Infrastructure Trust Act" has not been enacted into law by the date of the approval of this act by the voters, the amendments made to the 1985 bond act pertaining to the Trust would remain inoperative.

Revises the "Resource Recovery and Solid Waste Disposal Facility Bond Act of 1985."