N.J. releases water infrastructure funding plans

June 2, 2022
The released Intended Use Plans outline various water infrastructure projects that could receive N.J.'s $169 million through the IIJA for drinking water and clean water projects.

New Jersey’s Water Infrastructure Improvement Plan (WIIP) took a significant step forward with the Department of Environmental Protection’s (DEP’s) release of final Intended Use Plans that include billions of dollars of requests for water-quality improvement and public-health protection projects, DEP officials announced.

State applicants had submitted a record 679 potential project ideas, totaling $6.79 billion. The potential projects include a wide range of improvements to drinking water systems to better protect public health and improve the delivery of reliable water to residents and businesses, as well as upgrades to wastewater treatment systems that would protect and improve the quality of New Jersey’s waterways.

“Modernizing New Jersey’s water infrastructure is critical to protecting public health, supporting economic development, and preserving and improving our environment,” said DEP Commissioner Shawn M. LaTourette. “DEP received an overwhelming response during the development of this fiscal year’s Intended Use Plans given our communities’ deep needs for water infrastructure improvements, and we pledge to work closely with applicants to wisely leverage state and federal resources, including the new Bipartisan Infrastructure Law funding. Together, we can and will deliver safe and reliable drinking water, improve the quality of New Jersey’s waters, and address stormwater, combined sewer overflows, and flooding.”

The project priority lists within the plans identify projects eligible to receive State Revolving Fund money in rank order. In order to receive funding, projects still need to obtain all program approvals and be able to move forward to construction. The DEP is also prioritizing projects that improve water quality in overburdened communities. Applicants included wastewater utilities, municipal utilities authorities, municipal governments, and public and private water systems.

The DEP and the New Jersey Infrastructure Bank (I-Bank) work closely on innovative funding to maximize the leveraging of federal and state funds to provide low-interest options for local communities and utilities to meet their water infrastructure needs.

“This is an exciting opportunity for communities to invest in the health and well-being of their constituents for years to come,” said David Zimmer, executive director of the I-Bank. “With this unprecedented influx of federal funds into the DEP, combined with low interest rates, there has never been a better time for stakeholders to participate in the DEP/I-Bank Financing Program.”

The Intended Use Plans are specifically posted for Clean Water and Drinking Water State Revolving funds for Federal Fiscal year 2022/State Fiscal Year 2023. These plans provide information on how funds, available through the New Jersey Water Bank, will be used to provide financial assistance for clean water and drinking water projects and identifies state policies governing loan awards.

The federal government, through the U.S. Environmental Protection Agency, has provided $169 million in funding to the DEP through the Infrastructure Investment and Jobs Act (IIJA). The $169 million is the first of five allotments through the law.

For the current round, New Jersey receives:

  • $73.3 million for any eligible Clean Water State Revolving Fund project
  • $30.6 million for any eligible Drinking Water State Revolving Fund project
  • $48.3 million to address drinking water lead service line replacements
  • $12.9 million to address contaminants of emerging concern, such as PFAS in drinking water
  • $3.8 million to address contaminants of emerging concern in wastewater.

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