The bill requires the New Jersey Department of Environmental Protection (DEP) and the New Jersey Infrastructure Bank (I-Bank) to prioritize principal forgiveness for loans issued to municipalities located in coastal areas for environmental infrastructure projects. This initiative is designed to assist these municipalities in financing essential projects related to wastewater treatment systems, water supply, and stormwater management, which are vital for maintaining environmental standards and enhancing resilience against climate change. The bill defines "coastal area" in accordance with existing law and aims to support municipalities through the State's Water Bank program, which typically provides low-interest loans with the possibility of principal forgiveness.

Furthermore, the bill amends Section 9 of P.L.1985, c.334 (C.58:11B-9) to allow the trust to provide loans and assistance to local government units, public water utilities, and private entities for various environmental projects, with a specific focus on coastal municipalities. It also outlines the conditions for loan approval, including the necessity of State Treasurer approval and the establishment of special funds for interim financing programs. Additionally, the bill details the procedures for short-term supplemental loans under the Interim Transportation Financing Program, stipulating that these loans must not exceed the duration of the third succeeding fiscal year after loan closing and that only projects listed in the Project Priority List are eligible for funding.

Statutes affected:
Introduced: 58:11B-9