Directs DEP to develop State water infrastructure investment plan; requires NJ Infrastructure Bank to publish additional information about water infrastructure projects; appropriates $200,000 to NJ Infrastructure Bank.

A1777

ASSEMBLY, No. 1777

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ANTHONY S. VERRELLI

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Directs DEP to develop State water infrastructure
investment plan; requires NJ Infrastructure Bank to publish additional
information about water infrastructure projects; appropriates $200,000 to NJ
Infrastructure Bank.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning the State's water infrastructure
investment policy, supplementing Title 58 of the Revised Statues and P.L.1975,
c.291 (C.40:55D-1 et seq.), and making an appropriation.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in sections 1
through 4 of P.L. , c.
(C. ) (pending
before the Legislature as this bill):

���� "Department" means
the Department of Environmental Protection.

���� "Intended Use Plans"
means the documents prepared annually by the department as follows:� (1) the
document prepared pursuant to 40 C.F.R. s.35.3150, which identifies intended
uses of all funds provided by the State Water Pollution Control Revolving Fund
program; and (2) the document prepared pursuant to 40 C.F.R. s.35.3555, which
identifies intended uses of all funds provided by the Drinking Water State
Revolving Fund program.

���� "Trust" means the
New Jersey Infrastructure Bank created pursuant to section 4 of P.L.1985, c.334
(C.58:11B-4).

���� "Water infrastructure
project" means the acquisition, construction, improvement, repair, or
reconstruction of all or part of any structure, facility, or equipment, or real
or personal property necessary for or ancillary to any:� (1) wastewater treatment
system project, including any stormwater management or combined sewer overflow
abatement project; or (2) water supply project, as authorized pursuant to
P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.),
including any water resources project, as authorized pursuant to P.L.2003,
c.162.

���� 2.��� a.� No later than 12
months after the effective date of this act and no later than June 1 on the
sixth year after the effective date of this act and every five years thereafter,
the department, in consultation with the trust, and, where appropriate, the
Board of Public Utilities and the Department of Community Affairs, shall
prepare a State Water Infrastructure Investment Plan, which shall serve as the
State�s long-term capital investment strategy for upgrading and maintaining the
State�s drinking water, wastewater, and stormwater infrastructure.� The
department shall submit the State Water Infrastructure Investment Plan to the
Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164

(C.52:14-19.1).

���� b.��� The State Water
Infrastructure Investment Plan shall include, but not be limited to:

���� (1)�� an estimate of the
annual and long-term capital investment needed for all drinking water,
wastewater, and stormwater infrastructure;

���� (2)�� an estimate of the
amount of average annual capital investment to be made for all drinking water,
wastewater, and stormwater infrastructure during the succeeding five years;

���� (3)�� an estimate of the
actual average annual capital investment made for all drinking water,
wastewater, and stormwater infrastructure during the preceding five years;

���� (4)�� identification of annual
and long-term revenue sources that could overcome any identified gap in
funding;

���� (5)�� a strategy to coordinate
the use of federal, State, and local funding resources;

���� (6)�� a system for the
prioritization of all of the capital projects necessary to meet public policy
goals, which shall incorporate, by reference, the Intended Use Plans;

���� (7)�� quantifiable goals for
capital improvements that implement State priorities, including: those set
forth in the Intended Use Plans; those that serve environmental justice
communities; and those that incorporate green infrastructure or renewable
energy generation;

���� (8)�� recommendations for new
or revised programs for the asset management of drinking water, wastewater, and
stormwater systems, including, but not limited to, assessments of inventory and
the urgency of need for replacement or upgrade; merger or regionalization
studies, strategies to address funding problems caused by a lack of ratepayers,
strategies to address funding problems caused by socioeconomic factors, and
strategies to otherwise increase the technical, managerial, and financial
capacity of systems to fund and construct water infrastructure projects;

���� (9)�� recommendations for ways
to accelerate the review, approval, and replacement of prioritized drinking
water, wastewater, and stormwater infrastructure, while ensuring that the
projects fully satisfy applicable environmental protection requirements;

���� (10) strategies to make
drinking water, wastewater, and stormwater systems more resilient to the
impacts of climate change, particularly in areas vulnerable to those impacts;

���� (11) a review of emerging best
practices in the management of drinking water, wastewater, and stormwater
systems, including, but not limited to, best practices that increase project
cost efficiencies, and recommended policy solutions to facilitate the adoption
of these practices;

���� (12) coordination with other
State planning efforts, including those for development and redevelopment,
transportation, housing, water supply, environmental protection, and energy;

���� (13) an assessment of existing
strategies to address technical assistance availability and rate affordability,
and recommendations for alternative strategies; and

���� (14) an explanation of the
methodology used to develop the estimates pursuant to paragraphs (1) through
(3) of subsection b. of this section, which shall include an explanation of how
the department identified capital investment needs for drinking water,
wastewater, and stormwater infrastructure that were not identified by water,
wastewater, and stormwater systems.

���� c.���� During the course of
preparing a State Water Infrastructure Investment Plan, the department shall:

���� (1)�� make available to all
interested persons a copy of the proposed plan or proposed revisions to the
current plan at least 90 days prior to submitting it to the Governor, and shall
provide an opportunity for the public to submit written comments, consider the
comments submitted, make any revisions as the department deems necessary, and
provide a written summary of responses to comments and any revisions made based
on those comments;

���� (2)�� conduct at least three
public meetings, which may be conducted using video teleconferencing, on the
proposed plan or proposed revisions and updates to the current plan;

���� (3)�� consider the comments
made at public meetings and written comments, and make any revisions to the
proposed plan or proposed revisions and updates to the current plan as the department
deems necessary, and provide a written summary of responses to comments and any
revisions made based on those comments;

���� (4)�� consult with the
Highlands Water Protection and Planning Council established pursuant to section
4 of P.L.2004, c.120 (C.13:20-4) concerning the possible impact of the State
Water Infrastructure Investment Plan on the Highlands Regional Master Plan and
the natural resources of the Highlands region;

���� (5)�� consult with the
Pinelands Commission established pursuant to P.L.1979, c.111 (C.13:18A-1 et
seq.) concerning the possible impact of the plan on the Pinelands Comprehensive
Management Plan and the natural resources of the Pinelands region; and

���� (6)�� consult with operators
of drinking water, wastewater, and stormwater systems and other relevant
stakeholders including smart growth, environmental protection, and
environmental justice organizations in the State.

���� d.��� The Division of Local
Government Services in the Department of Community Affairs, and the Board of
Public Utilities shall provide to the department sufficient financial,
budgetary, and other information gained from their regulatory authority over
drinking water, wastewater, and stormwater utilities, as appropriate, to
develop the Water Infrastructure Investment Plan.

���� 3.��� The trust shall prepare
and submit to the Governor, the Legislature, pursuant to section 2 of P.L.1991,
c.164

(C.52:14-19.1), and the department on or before May 15 of each year, an Annual
Water Infrastructure Capital Program, which shall provide details about current
water infrastructure projects in the State.�

���� a.���� The Annual Water
Infrastructure Capital Program shall include the following pieces of
information for each current water infrastructure project in the State:

���� (1) the owner of the project;

���� (2) the total estimated cost
of the project;

���� (3) all funding sources for
the project;

���� (4) the amount of funds
budgeted for the project;

���� (5) the amount of funds spent
on the project as of the date the program was prepared;

���� (6) the amount of funds the
trust and the department have committed to the project;

���� (7) the amount of funds needed
to complete the project;

���� (8) any utilities with a
service area that overlaps with the project, to the extent this information is
available;

���� (9) any municipalities and
counties involved in the project; and

���� (10) the category of the
project in the trust's "H2LOans" online loan organization system.

���� b.��� The department, the
Division of Local Government Services in the Department of Community Affairs,
and the Board of Public Utilities shall provide to the trust, upon request and
in a timely manner, the information necessary to implement the provisions of
subsection a. of this section.

���� c.���� The trust shall publish
the Annual Water Infrastructure Capital Program on its Internet website.

���� 4.� a.� The trust shall
develop and maintain an Internet website that provides information on the
status of water infrastructure projects being financed by the trust, and which
serves as the portal for all State and federal public documentation concerning
those projects.� The website shall include, for each project:

���� (1) the owner of the project;

���� (2) the total estimated cost
of the project;

���� (3) all funding sources for
the project;

���� (4) the amount of funds
budgeted for the project;

���� (5) the amount of funds spent
on the project as of the date the program was prepared;

���� (6) the amount of funds the
trust has committed to the project;

���� (7) the amount of funds needed
to complete the project;

���� (8) any utilities with a
service area that overlaps with the project;

���� (9) any municipalities and
counties affected by the project; and

���� (10) the category of the
project in the trust's "H2LOans" online loan organization system;

���� (11) a chart which compares
the planned and actual annual expenditures on the project;

���� (12) a list of actions which
have a bearing on the progress of the project, including, but not limited to,
awards for legal, insurance, engineering services, environmental review, public
involvement and outreach, property acquisitions, and construction contracts;
and

���� (13) a list of all actions by
an external regulatory agency or any other party, which affected the cost or
timely completion of the project.

���� b.��� The website, and the
information concerning each water infrastructure project being financed by the
trust, shall be updated at least twice per year.

���� 5.��� A municipality that
prepares or amends a master plan shall review the current State Water
Infrastructure Investment Plan prepared pursuant to section 2 of
P.L. , c.
(C. ) (pending
before the Legislature as this bill), and consider any applicable
recommendations of the plan.

���� 6.��� There is appropriated to
the New Jersey Infrastructure Bank from the General Fund the amount of $200,000
to develop and maintain the Internet website required pursuant to section 4 of
this act.

���� 7.��� This act shall take effect immediately.

STATEMENT

���� This bill would direct the
Department of Environmental Protection (DEP) to prepare a State Water
Infrastructure Investment Plan every five years.� The bill would also require
the New Jersey Infrastructure Bank (NJIB) to publish additional information
about water infrastructure projects in the State.

���� No later than 12 months after
the bill�s effective date and every five years thereafter, the bill would
direct the DEP, in consultation with the NJIB and, where appropriate, the Board
of Public Utilities and the Department of Community Affairs, to prepare and
submit to Governor and the Legislature a State Water Infrastructure Investment
Plan (plan).� The plan would serve as the State�s long-term capital investment
strategy for upgrading and maintaining the State�s drinking water, wastewater,
and stormwater infrastructure.� The bill would establish various requirements
for the contents of the plan, as enumerated in subsection b. of section 2 of
the bill.� In addition, each time the DEP prepares a plan, the bill would
require the DEP to conduct at least three public meetings on the proposed plan,
and meet with other stakeholders as described in subsection c. of section 2 of
the bill.

���� The bill would also require
the NJIB to prepare an Annual Water Infrastructure Capital Program (annual
program), which would provide details about current water infrastructure
projects in the State.� The annual program would be submitted to the Governor,
Legislature, and the DEP.� The bill would establish various requirements for
the content of the annual program, as enumerated in subsection a. of section 3
of the bill.

���� The bill would also require
the NJIB to develop and maintain an Internet website that provides similar
details about water infrastructure projects in the State.� The bill would
require the NJIB to update the website at least twice a year.� In addition, the
bill would establish various requirements for the content of the website, as
enumerated in subsection b. of section 4 of the bill.

���� In addition, the bill would
require municipalities to review and consider any applicable recommendations of
the current State Water Infrastructure Investment Plan before adopting or
amending their municipal master plans.� Finally, the bill would appropriate
$200,000 to the NJIB to develop and maintain the website required under section
4 of the bill.