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, thereby improving their resilience to environmental challenges. The bill also defines "coastal area" in accordance with existing legislation and emphasizes the importance of the State's Water Bank program, which typically provides low-interest loans with potential principal forgiveness.

To facilitate these efforts, 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. It establishes special funds, including the "Interim Environmental Financing Program Fund" and the "Interim Transportation Financing Program Fund," to support short-term loans for clean water, drinking water, and transportation projects. The bill also outlines the procedures for short-term supplemental loans under the Interim Transportation Financing Program, specifying eligibility criteria and the requirement for prior written certification from the trust before disbursing funds for project activities.

Statutes affected:
Introduced: 58:11B-9