SENATE ENVIRONMENT COMMITTEE

STATEMENT TO

SENATE, No. 1222

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Senate Environment Committee favorably reports Senate Bill No.1222.

      Senate Bill No.1222 authorizes the New Jersey Wastewater Treatment Trust to expend up to $75,000,000, and any unexpended balances from the authorizations made by P.L.1994, c.105 and P.L.1995, c.218 to provide loans with an interest rate at or below the prevailing market rate to local government units for the costs of eligible wastewater treatment system projects. The eligible projects are those included in the "State Fiscal Year 1997 Project Priority List" and three projects that received loans in the past, each of which now require a supplemental loan in order to meet actual costs.

      The New Jersey Wastewater Treatment Trust, established pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.), is a State financing authority which can issue bonds, notes and other debt obligations. In the initial year of funding, the provisions of P.L.1987, c.199 authorized the Trust to expend $150,000,000 for loans to local government units for up to 50% of the costs of eligible wastewater treatment system projects. Subsequently, the provisions of P.L.1988, c.132 authorized the expenditure of $75,000,000, the provisions of P.L.1989, c.190 authorized $85,000,000, the provisions of P.L.1990, c.97 authorized $100,000,000, the provisions of P.L.1991, c.324 authorized $90,000,000, the provisions of P.L.1992, c.37 authorized $75,000,000, the provisions of P.L.1993, c.192 authorized $75,000,000, the provisions of P.L.1994, c.105 authorized $60,000,000, and the provisions of P.L.1995, c.218 authorized $50,000,000.