NJ Sees Huge Demand For Water Infrastructure Funds; $6.7B Requested

NEW JERSEY — Water isn’t free. And neither is the massive infrastructure required to supply clean drinking water, channel stormwater and process wastewater in New Jersey.

The New Jersey Department of Environmental Protection (NJDEP) recently released a ranked list of 679 water infrastructure projects throughout the state that are requesting a total of $6.79 billion in funding. See it here.

Applicants included wastewater utilities, municipal utilities authorities, municipal governments, and public and private water systems.

The proposed projects include a wide range of improvements to drinking water systems that would help “protect public health and improve the delivery of reliable water” to residents and businesses in the Garden State. There are also proposals to upgrade several wastewater treatment systems, officials said.

Not every project on the list will get funding. The NJDEP said it will be prioritizing those that improve water quality in “overburdened communities.”

The money will come from multiple sources at the state and federal levels, including the historic, $1.2 trillion federal infrastructure package that President Joe Biden signed into law last year, which earmarked funds for water improvements. Read More: Here's What NJ Will Get From $1 Trillion Infrastructure Bill

New Jersey will get $169 million this year for water infrastructure under the bill, and will eventually get $1 billion over five years. In 2022, New Jersey will receive:

• $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

Federal funding from the infrastructure bill will come at a time when it’s urgently needed across the state.

Last year, Gov. Phil Murphy signed a package of bills that will drastically change how New Jersey deals with the threat of lead poisoning in its drinking supply, which can be especially dangerous for kids, pregnant women and other vulnerable populations. One of the new laws will require hundreds of community water systems in New Jersey to replace their lead service lines within 10 years.

A second bill will remove restrictions on special assessments and bond issuances for lead service line replacements, giving towns and cities another way to finance the construction. Read More: New Jersey Is Replacing Its Lead Water Pipes – All Of Them

But even with the extra federal funding, New Jersey will need to find a way to plug a fiscal gap when it comes to water infrastructure, some advocates say.

"Unfortunately, the bipartisan infrastructure law won't provide all of the funding we need," Chris Sturm, managing director of policy at New Jersey Future, said in February.

"We estimate that the funding gap for lead pipe replacement in New Jersey remains between $1.5 billion and $2 billion," Sturm said at the time.

The state’s largest city, Newark, recently replaced tens of thousands of lead service lines as part of its battle with water contamination. A $120 million loan and a combination of state and federal funds helped to pay for the massive effort, which was done at no cost to local residents and didn’t hike their water bills. Read More: Lead Pipes And Newark: Kamala Harris Returns To NJ To Praise City

But according to Debbie Mans, co-chair of Lead-Free NJ, while Newark's effort shows how to structure a successful lead pipe program, not all community water systems – especially those serving low-income residents – will have the same access to funding.

"It is critical that state and federal funds are leveraged to help these fiscally distressed communities and put to bed the problem of lead in drinking water once and for all," Mans said earlier this year.

Another advocacy group, Jersey Water Works, said the new state law will still allow utilities to charge customers fees to cover replacement of their portion of the line.

Normally, the cost for that can run anywhere from $5,000 to $10,000, according to Newark city officials.

"This approach has proven to be unfair to lower-income families, as well as expensive and inefficient in practice," Jersey Water Works said. "Utilities that do not have access to the type of financing available to Newark (such as its unique arrangement with the Port Authority of New York and New Jersey) will need to use a combination of rate increases and NJ Water Bank financing with a principal forgiveness (grant) component."

As the state moves forward with its funding plan for the 679 proposed water infrastructure projects currently sitting on the NJDEP’s desk, officials said they will do their best to put any available money to good use.

“Modernizing New Jersey’s water infrastructure is critical to protecting public health, supporting economic development, and preserving and improving our environment,” NJDEP Commissioner Shawn LaTourette said.

“The NJDEP 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,” LaTourette said.

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