ENVIRONMENTAL
INFRASTRUCTURE FINANCING PROGRAM
(Clean Water Financing)
PURPOSE OF FUNDING
The Environmental Infrastructure Financing Program
(EIFP) provides low-interest loans for the construction
of a variety of water quality protection measures,
including wastewater treatment facilities and stormwater
and nonpoint source management facilities. The projects
eligible for financing from the EIFP include wastewater
collection and conveyance facilities, combined sewer
overflow abatement facilities, rehabilitation of existing
sewer systems, pump stations, stormwater basins, sewer
maintenance equipment, lake restoration activities,
landfill closure facilities (such as capping systems
or leachate collection and treatment systems), new
landfill facilities (such as double-composite liner
systems and leachate collection and treatment systems),
salt domes and others. The Financing Program also provides
loans for activities such as open space land purchase
and conservation, remedial action activities (including
brownfields) and well sealing.
SOURCE OF FUNDING
Financing is provided from two sources, the New Jersey
Department of Environmental Protection and the New
Jersey Environmental Infrastructure Trust (the Trust).
The Department traditionally provides loans at 0% interest for approximately
20 years for up to one‑half the allowable project costs. The Trust offers
loans at about the market rate or less for the remaining allowable project
costs, also for a 20‑year term. Between these two funding sources, the
rate on the loans is essentially half the market rate. Approximately $100 million‑$200
million is available per year. In an effort to promote Smart Growth initiatives,
the Financing Program will continue to offer the Smart Growth Financing Package
through which 75% of the project costs are funded by DEP at 0% interest and
25% of the project costs are funded by the Environmental Infrastructure Trust
at market rate to projects that serve Urban Centers/Complexes, combined sewer
overflow abatement projects and open space land acquisition projects. In addition,
three more project categories have been designated as eligible for the Smart
Growth Financing Package. They are: (a) wastewater and/or stormwater infrastructure
projects to serve Transit Villages, (b) site remediation projects in DEP-designated
Brownfields Development Areas (BDAs) and (c) projects that involve the repair
and/or replacement of individual septic systems through a Septic Management
District. Other areas suitable for development may also be added to the Smart
Growth Financing Package as time goes on.
STATUTORY CITATION
P.L. 1985, c. 329 N.J.S.A. 58:11B‑1 et seq.
and P.L. 1992 c.88.
WHO IS ELIGIBLE
Municipalities, counties, sewerage or utility authorities,
joint meetings, improvement authorities or local
government units constructing new or improving existing
wastewater, stormwater or nonpoint source management
facilities.
QUALIFICATIONS REQUIRED FOR
CONSIDERATION
Eligibility is determined according to the ranking
criteria of the Federal Priority System developed
each year by the DEP. Each project is evaluated and
point scores are assigned. Projects are certified for
funding based on list rank, amount of available funds,
and compliance with requirements and deadlines for
planning, design and application.
LOAN LIMITATIONS
Eligible entities must: (1) request placement on Project Priority List; (2) send
in a commitment letter and; (3) satisfy the planning, design and application
deadlines and requirements.
APPLICATION PROCEDURES
A commitment letter and project planning documentation
are generally required to be submitted in the beginning
of October.
APPLICATION DEADLINE
On or about March 1st annually.
NOTIFICATION DATE
Early September of the same year.
FOR INFORMATION OR TO REQUEST
AN NJDEP APPLICATION, CONTACT
Stanley V. Cach, Jr. Assistant Director
NJDEP-Municipal Finance and Construction Element
PO Box 425
Trenton, NJ 08625-0425
(609) 292-8961
stanley.cach@dep.state.nj.us
APPLICATION HOT LINKS
http://www.nj.gov/dep/dwq/mface.htm
http://www.njeit.org
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