SENATE ENVIRONMENT COMMITTEE

 

STATEMENT TO

 

SENATE, No. 1220

 

STATE OF NEW JERSEY

 

DATED: JUNE 3, 1996

 

      The Senate Environment Committee favorably reports Senate bill No. 1220.

      Senate Bill No. 1220 appropriates federal and State moneys to the Department of Environmental Protection (DEP) for the purpose of implementing the 1996 New Jersey Wastewater Treatment Financing Program, which is expected to finance approximately $142.7 million in wastewater treatment system projects for State Fiscal Year 1997.

      The bill appropriates moneys from (1) the "Wastewater Treatment Fund - State Revolving Fund Accounts" 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 pursuant to the federal "Water Quality Act of 1987" for wastewater treatment system projects; (2) any fees and penalties received pursuant to the federal "Marine Protection, Research, and Sanctuaries Act of 1972," as may be deposited in the State Revolving Fund Accounts; (3) 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; and (4) 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.

      The DEP would use the funds to make zero interest loans to local governments for up to 50% of eligible project costs included in the "State Fiscal Year 1997 Project Priority List" and to provide supplemental zero interest loans to three local governments that received loans in past years. The supplemental loans constitute the difference between the allowable loan amounts required by these projects and the loan amounts certified by the Commissioner of DEP in State FY 1991 and 1995 under the New Jersey Wastewater Treatment Financing Program.

      New wastewater treatment system projects that are eligible for financing in calendar year 1996 have allowable costs totaling approximately $129 million, while previously financed projects that are eligible to receive supplemental loans under the State Fiscal Year 1997 Program total approximately $13.7 million.