NJ Water Bank Surpasses $1B Water Infrastructure Milestone in FY24

On Jul 23, 2024

The New Jersey Water Bank, a partnership between the New Jersey Department of Environmental Protection and the New Jersey Infrastructure Bank that provides low-cost financing for projects to improve local clean- and drinking-water infrastructure, has for the first time surpassed $1 billion in fiscal year project financing.

In Fiscal Year 2024, which concluded June 30, the Water Bank provided financing for 116 clean water projects (wastewater and stormwater treatment) totaling $838 million and financing for 31 drinking water projects, totaling $240 million. These projects represent a combined $1.078 billion in infrastructure financing. The previous record was $769.5 million in Fiscal Year 2021.

This record funding is being used to replace lead and galvanized service lines, install PFAS treatment systems, mitigate stormwater discharges, address combined sewer overflows, upgrade wastewater treatment, reduce flooding, and more. The announcement was made during a news conference in Irvington, where New Jersey American Water has been using more than $48 million in Water Bank financing to replace some 5,000 lead and galvanized residential service lines.

“In order to combat the effects of climate change, we must ensure the resilience of water infrastructure in the state,” said Gov. Phil Murphy. “With $1 billion of new project financing, New Jersey’s Water Bank is making transformational progress in securing our water resources to guarantee the safety of drinking water supplies and protecting public health. By funding these critical projects, we can support the health and wellness of New Jerseyans and provide vital support to communities that need it most.”

“Safe and reliable water infrastructure is critical to the vitality of our communities,” NJDEP Commissioner Shawn LaTourette said. “This record-setting, billion-dollar investment in our water infrastructure throughout the state demonstrates the high level of commitment that our local governments and water systems are making to protect public health and the environment.

“This year’s loan production is impressive not only for the sheer magnitude of the New Jersey residents impacted by the financed projects, but also for the number of construction-related jobs employing thousands of women and men across the State,” I-Bank Chairman Robert Briant Jr. said. “The Water Bank makes the construction of water projects affordable, particularly for our State’s disadvantaged communities. I want to thank the DEP and the I-Bank for their efforts in creating a healthier environment for all New Jersey residents and fostering economic growth in the state.”

“The accomplishments of the New Jersey Water Bank during this past fiscal year are a testament to the policies, effective collaboration and dedication of every federal, state, and local government employee involved in this program,” said I-Bank Executive Director David Zimmer. “Providing low-cost and affordable funding to more than $1 billion of projects for critical water infrastructure is a vital investment in safe drinking water, clean waterways, and a better quality of life for our communities.”

“New Jersey American Water’s lead service line replacement program prioritizes underserved communities first, and partnering with the I-Bank on these projects helps us double-down on that commitment,” said New Jersey American Water Vice President of Operations Ben Morris. “Through I-Bank financing, we have been able to increase the speed and amount of lead service line replacements in Irvington, as well as eight additional overburdened communities we serve in the state, without increasing the cost for our customers.”

FY 2024 Project Highlights

Examples of projects that received Water Bank financing in state fiscal year 2024 include:

• The Passaic Valley Sewerage Commission received more than $116 million to increase treatment capacity for the purpose of reducing discharges of combined sewer overflows that impact surface water quality in the area. Construction began in March of this year and is anticipated to be completed by the end of 2028.
• The city of Camden received $55 million for the construction of granular activated carbon to treat PFAS and 1,4-dioxane and to upgrade the Morris-Delair Water Treatment Facility. Construction began in February and is expected to be completed by the end of 2025.
• The Bayshore Regional Sewerage Authority received $31 million to construct backup power generation to the sewerage authority and the Monmouth County Bayshore Outfall Authority to safely treat and dispose of wastewater during prolonged power outages.
• New Jersey American Water received more than $25 million to expand replacements of lead service lines in Irvington. Combined with financing for a 2022 project, the Water Bank has provided more than $48 million in financing for the replacement of more than 5,000 lead and galvanized service lines in Irvington. Work is expected to be completed by the end of next year.
• The city of Trenton received more than $9 million to replace approximately 1,000 lead and galvanized service lines with copper lines. Construction is expected to begin soon and be completed by July 2026.
• The Jersey City MUA received $9.8 million to replace additional lead service lines in the city. Combined with financing received in FY 2023, the Water Bank has provided more than $21 million for the replacement of approximately 1,600 lead service lines in Jersey City. Construction began in July 2023 and is expected to be completed by June 2025.

To access more business news, visit NJB News Now.

Related Articles: