Governor Signs Infrastructure Bank Bill Package
Trenton – A package of legislation sponsored by Senate Environment and Energy Chair Senator Bob Smith, Senator Linda Greenstein, and Senator Richard Codey, which will work with the Infrastructure Bank on a number of appropriations for environmental infrastructure projects, was signed into law by Governor Phil Murphy.
The first law, originally S-3818, will revise the pre-conditions for the disbursement of transportation loans to concurrence from the Department of Transportation and certification in writing from the bank, to make the pre-conditions consistent with the actual roles and responsibilities of the partnership.
The law will also revise the Department of Transportation Loan Original Fee Fund to the “Transportation Loan Origination Fee Fund.” This is to reflect that the bank’s transportation loans are actually issued by the bank, rather than the department. The revision will allow the bank to impose loan origination fees on borrowers of transportation loans, and then allow those loan origination fees to be used to reimburse the bank and the department for their administrative costs in administering the transportation loan program.
“The New Jersey Infrastructure Bank is key to funding infrastructure projects around the state,” said Senator Smith (D-Middlesex/Somerset). “We need to rebuild and reinforce infrastructure throughout this state. Today, no projects are more important than environmental ones. It is imperative that we fund environmental infrastructure projects that help to repair and improve the resiliency of our environmental infrastructure systems.”
The second law, originally S-3819, will authorize the New Jersey Infrastructure Bank to expend up to $655.04 million and any unexpended balances from previous authorizations to provide loans with an interest rate at or below the prevailing market rate to project sponsors of environmental infrastructure projects for fiscal year 2020. These loans are for a portion of or total cost of 117 eligible environmental infrastructure projects across the state.
“Since its creation in 1985, the Infrastructure Bank has worked in partnership with the Department of Environmental Protection to provide low-cost loans for the construction of environmental infrastructure projects that enhance and protect both ground and surface water resources,” said Senator Greenstein (D-Mercer/Middlesex). “These loans have ensured the safety of drinking water supplies throughout New Jersey. This has made possible responsible and sustainable economic development.”
The third law, originally S-3820, will appropriate certain federal and State funds to the Department of Environmental Protection for the purpose of implementing the State Fiscal Year 2020 New Jersey Environmental Infrastructure Financing Program, which is expected to finance approximately $655.04 million in Storm Sandy and other environmental infrastructure projects for State Fiscal Year 2020.
“We are in desperate need to make investments in our environmental infrastructure. And there are numerous locations around the state that are in desperate need of repair,” said Senator Codey (D-Essex/Morris). “We saw the destruction that came from Superstorm Sandy, we have to be prepared for the next time a storm of that magnitude comes to New Jersey. Due to Climate Change, storms like Sandy and stronger are bound to happen more and more frequently.”