New Jersey § 58:11b-2

§ 58:11b-2.

a. The Legislature finds that the steady deterioration of older sewage and sewer systems

and wastewater treatment plants endangers the availability and quality of uncontaminated

water resources of the State, thereby posing a grave danger to the health, safety

and welfare of the residents of the concerned communities and the State; that the

construction, rehabilitation, operation, and maintenance of modern and efficient sewer

systems and wastewater treatment plants are essential to protecting and improving

the State's water quality; that in addition to protecting and improving water quality,

adequate wastewater treatment systems are essential to economic growth and development;

that many of the wastewater treatment systems in New Jersey must be replaced or upgraded

if an inexorable decline in water quality is to be avoided during the coming decades;

that the United States Congress in recognition of the crucial role wastewater treatment

systems and plants play in maintaining and improving water quality, and with an understanding

that the cost of financing and constructing these systems must be borne by local governments

and authorities with limited sources of revenues, established in the “Federal Water

Pollution Control Act Amendments of 1972,” Pub.L.92-500 ( 33 U.S.C. s.1251 et al.) a program to provide local governments with grants for constructing these

systems; that during the last several years the amount of federal grant money available

to states and local governments for assistance in constructing and improving wastewater

treatment systems has sharply diminished; that the current level of federal grant

funding is inadequate to meet the cost of upgrading the State's wastewater treatment

capacity to comply with State water quality standards; that the collective needs

of the State and local governments for capital financing of wastewater treatment systems

far exceed the sums of money presently available through revenue initiatives and State

and federal aid programs; and that it is fitting and proper for the State to encourage

local governments to undertake wastewater treatment projects through the establishment

of a State mechanism to provide loans at the lowest reasonable interest rates and

to guarantee or insure local capital improvement bonds. b. The Legislature finds that stormwater runoff and combined sewer overflows are among

the major sources of ocean pollution, contributing to beach closings; that combined

sewer systems discharge untreated wastewater and stormwater into rivers, streams and

coastal waters during wet weather, resulting in water pollution; that some combined

sewer systems have deteriorated to the point that overflows occur regularly, even

during dry weather; that many sewer systems are on inadequate repair and replacement

programs, which may cause disturbances at sewage treatment plants; that many municipalities

are under building moratoriums due to the inadequacy of their sewage and stormwater

collection systems, which severely affect municipal budgets; and that large unmet

capital expenses exist for combined sewer system separation and abatement projects. The Legislature further finds that funding at the federal level for wastewater treatment,

stormwater management and combined sewer system rehabilitation projects is insufficient;

that State funds available for these projects are inadequate to meet current needs;

that local revenues are insufficient to meet these expenses; and that additional

funding at the State level is necessary to meet this financial obligation. c. The Legislature finds that construction, rehabilitation, operation and maintenance

of modern and efficient water supply facilities are essential to protecting and improving

the State's water quality; that the citizens of this State, in recognition of the

crucial role the construction of new and the upgrading of existing water supply facilities

play in maintaining and augmenting the natural water resources of the State, and with

an understanding that the cost of financing and constructing these systems is beyond

the limited financial resource capabilities of local governments and authorities and

must be subsidized by the State and repaid through a system of water supply user charges,

approved the enactment of the “Water Supply Bond Act of 1981” (P.L.1981, c. 261);

that the water supply needs of the State are so great that the funds allocated for

this purpose from the “Water Supply Fund” established by that 1981 bond act should

be augmented and maximized, to the extent practicable, through the use of alternative

methods of State financing to offset the costs of water supply projects and for the

construction of new or the rehabilitation of antiquated or inadequate existing water

supply facilities; that the United States Congress in recognition of the essential

role that safe drinking water plays in protecting the public health, and with an understanding

that financing, constructing and maintaining water systems that meet the requirements

of the “Safe Drinking Water Act,” 42 U.S.C. s.300f et seq. exceed the financial and technical capacity of the operators of some water systems,

has established in the “Safe Drinking Water Act Amendments of 1996,” P.L.104-182 , a program to provide public water systems with financial assistance to meet national

primary drinking water regulations or to otherwise further the health protection objectives

of the federal law and that the State must, in order to make use of the federal funds,

provide State funds for the program; and therefore, State funding for the program

is necessary to meet this financial obligation. d. The Legislature finds that the transportation infrastructure of the State is among

the most heavily used in the nation and has deteriorated in recent years, with parts

of the highway system reaching the end of their useful lives. e. The Legislature finds that capital projects for roadways and bridges are essential

to protecting and improving the State's transportation system; that construction

of new and the upgrading of existing roadways and bridges play a critical role in

the transportation needs of the State, and with an understanding that the cost of

financing and constructing these systems is beyond the limited financial resource

capabilities of local governments and authorities and must be subsidized by the State

and Federal government; that the United States Congress has established “State Infrastructure

Bank” programs to provide funding for transportation systems ( 23 U.S.C. s.610 ) and that the State must, in order to make use of the federal funds, provide State

funds for the program; and therefore, State funding for the program is necessary

to meet this financial obligation. f. The Legislature therefore determines that it is in the public interest to establish

a State authority authorized to issue bonds, notes and other obligations and to establish

any reserve funds necessary therefor, and to make loans to and guarantee debt incurred

by local government units for environmental and transportation infrastructure projects.