Makes $1.3 billion in federal funds available to DEP for use in New Jersey Environmental Infrastructure Financing Program for lead service line replacement projects.
The bill allows the DEP to reserve allocated funds for financial support, working alongside the New Jersey Infrastructure Bank (NJIB) through the New Jersey Environmental Infrastructure Financing Program (NJEIFP). This initiative aims to facilitate significant improvements in environmental infrastructure, especially regarding the aging water service lines that may pose health risks due to lead contamination. By prioritizing these projects, the state aims to enhance water quality considerably, reflecting a commitment to public health and environmental security.
Bill S754 proposes to allocate $1.3 billion in federal funding to the New Jersey Department of Environmental Protection (DEP) aimed at supporting lead service line replacement projects. These projects are crucial for safeguarding public health by removing lead from water supply infrastructures. The funding is contingent upon the availability of federal resources allocated for recovery from the COVID-19 pandemic, specifically from the Coronavirus State Fiscal Recovery Fund. This legislative measure is part of a broader effort to enhance environmental infrastructure across New Jersey while ensuring that drinking water sources are safe for all residents.
A key provision of S754 is the requirement for matching funds from public water utilities or other suppliers of water undertaking these projects. While small water suppliers—defined as serving no more than 3,300 customer connections—are exempt from providing upfront matching funds, they may need to commit to future contributions. This aspect has generated discussions regarding the financial feasibility for smaller utility providers, prompting concerns from some stakeholders about affordability and access to the necessary financial mechanisms to support infrastructure upgrades.