S853

An Act concerning costs of financing environmental infrastructure projects, and supplementing P.L.1985, c.334 (C.58:11B-1 et seq.), N.J.S.40A:2-1 et seq., and P.L.1983, c.313 (C.40A:5A-1 et seq.).

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

1. A local government unit seeking to finance $500,000 or more of the costs of any environmental infrastructure project shall submit a request for a financing cost estimate for the project on a form made available online by the trust pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

2. a. The trust shall make available a financing cost estimate to any local government unit seeking to finance $500,000 or more of the costs of an environmental infrastructure project. The financing cost estimate shall provide a local government unit with an estimate of the costs of financing an environmental infrastructure project through the trust to enable the local government unit to evaluate, and other interested parties to consider, the potential savings of trust financing, including interest costs, compared to other available methods of financing the project.

b. The trust may require the local government unit to provide information concerning the project and the borrower needed to generate a financing cost estimate, including, but not limited to, a detailed description of the project, design, engineering and environmental information, a cost estimate prepared by the project engineer or other qualified person, information regarding the borrower, the amount to be financed, and any other information the trust deems relevant in order for the cost estimate to be as accurate as possible.

The trust, in conjunction with the Department of Environmental Protection, shall provide with the financing cost estimate;

(1) a description of the priority system used by the Department of Environmental Protection in awarding financing under the program; and

(2) a comparison of the estimates of the cost of issuance and underwriting fees, servicing fees, and interest costs for a project financed through the trust versus a project financed independently by the local government unit through its own bond process.

c. The trust, through its web site, shall make available online a form that may be completed by the local government unit for submission to the trust in order for the trust to make an estimate of financing costs for the project. Upon submission of the completed form, the trust shall, within 15 days thereafter, provide an estimate of the financing costs and possible interest rate that may be made available for the project.

3. A local unit that does not finance an environmental infrastructure project with funding provided by the New Jersey Environmental Infrastructure Trust shall submit the financing cost estimate provided by the New Jersey Environmental Infrastructure Trust pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) together with the supplemental debt statement that is submitted to the Director of the Division of Local Government Services in the Department of Community Affairs pursuant to N.J.S.40A:2-42.

As used in this section, "environmental infrastructure project" shall have the same meaning as provided in section 3 of P.L.1985, c.334 (C.58:11B-3).

4. An authority that does not finance an environmental infrastructure project with funding provided by the New Jersey Environmental Infrastructure Trust shall submit the financing cost estimate provided by the New Jersey Environmental Infrastructure Trust pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) together with the proposed project financing that is submitted to the Local Finance Board in the Division of Local Government Services in the Department of Community Affairs pursuant to section 6 of P.L.1983, c.313 (C.40A:5A-6).

As used in this section, "environmental infrastructure project" shall have the same meaning as provided in section 3 of P.L.1985, c.334 (C.58:11B-3).

5. Sections 1, 3, and 4 of this act shall take effect on the 180th day after the date of enactment and the remainder of this act shall take effect immediately.

STATEMENT

This bill would require local governments and authorities seeking to finance $500,000 or more for an environmental infrastructure project to request from the New Jersey Environmental Infrastructure Trust (trust) an estimate of financing costs if the project were to be funded in whole or in part by the trust. The bill requires the trust to make available online a form for requests for the financing cost estimate. The estimate will enable the local government unit to evaluate, and other interested parties to consider, the potential savings of financing and interest costs offered by trust financing compared to other available methods of financing the project.

The bill provides that the trust may require the local government unit to provide information concerning the project and the borrower needed to generate the financing cost estimate, including, but not limited to, a detailed description of the project, design, engineering and environmental information, a cost estimate prepared by the project engineer or other qualified person, information regarding the borrower, the amount to be financed, and any other information the trust deems relevant in order for the cost estimate to be as accurate as possible. Upon submission of the completed form, the trust must provide the estimate within 15 days.

If a local government or authority does not use trust financing for the project, the financing cost estimate must be submitted by the local government to the Division of Local Government Services in the Department of Community Affairs with the local government's supplemental debt statement required pursuant to N.J.S.40A:2-42, or by the authority with the proposed project financing required to be submitted pursuant to section 6 of P.L.1983, c.313 (C.40A:5A-6), as the case may be.