new jersey environmental infrastructure trust

NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Welcome
David Zimmer
Executive Director
_______________________________________________________________
NJ Environmental
Infrastructure Trust
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
NJEIT Mission Statement
The New Jersey Environmental Infrastructure
Trust is the independent
State Financing Authority responsible for
providing and administering low cost interest
-rate loans to qualified municipalities, counties,
regional authorities and water purveyors for
the purposed of financing water quality related
infrastructure projects.
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Environmental Infrastructure
Financing Program – NJ EIFP
Local Borrowers
NJ DEP
NJ EIT
Equal Partnership
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Bond Trustee
(MPTA)
Backed by GO’s, SA’s, etc.
Contractor
Trust Loan Debt Service
Bond Investors
Debt Service
Repayment
$
Bond Proceeds
Borrower
Trust Loan $
NJEIT
(Municipality,
Authority, etc.)
Fund Loan $
DEP
SRF / Bond $$
Federal/State
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Fund Loan Debt
Service (0.51 yrs.
in arrears)
SFY-2013 Rate Structure / Allocation
GENERAL LOAN PROGRAM
75% - Fund Loan (0% rate DEP loan) +
25% - Trust Loan (AAA Market-rate loan)
PRINCIPAL FORGIVENESS PROGRAM: up to $20MM
Green projects (expanded) in
Barnegat Bay Watershed
25% - Principal Forgiveness (max. of $2MM, no
principal repayment due upon completion) +
50% - Fund Loan (0% rate DEP loan) +
25% - Trust Loan (AAA Market-rate loan)
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Below Market Rate = Blend of 0% DEP
“Fund” Loan and AAA Market “Trust” Loan
20 yr. savings on $1mm Borrowed:
~ $120,000 / each 1% saved
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
How the NJEIFP
Advances the State
Strategic Plan
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
How the NJEIFP Advances the State
Strategic Plan
Goal 1: Targeted Economic Growth
• 
Projects Funded
• 
Project Ranking Methodology
Goal 4: Tactical Alignment of Government
• 
Low interest financing to leverage limited local
government dollars, and in some cases, options
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Goal 1: Targeted Economic Growth
•  Projects Funded
-
Wastewater Project Loans
-
Drinking Water Project Loan
-
Stormwater Management
•  Project Ranking Incentives in Growth Areas
- Prioritization: CSOs, Brownfields Reserve
- Ranking Points:
-  Urban and Regional Centers
-  Designated Towns
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
The EIFP Funds Infrastructure in Priority
Growth Areas
• Challenge: Fund projects that upgrade existing infrastructure where
needed (Vibrant Regions) versus Adding new capacity
• Fund Redevelopment projects that strengthen existing cities, towns and
neighborhoods through remediation of existing sites
• Provide opportunities for private capital investing by transferring risk
away from public funds to private equity
• Facilitate construction of critical investment grade projects for additional
private equity in which to invest
•  Continue to maximize the leveraging of public monies
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Tactical Alignment of Government
Limited Municipal Financing Resources
Significant Savings Relative to Independent Financing
• Interest Rates 25% - 50% market rates
• Trust Excellent Credit Rating
• No debt service reserve fund or bond insurance
required
• Capitalized interest allows deferring of financing costs
• NJEIFP Loan Administration
• NJEIFP manages arbitrage issues
• NJEIT tracks and manages refunding opportunities
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Importance of Strategic Investment in NJ’s
Physical Infrastructure
The NJEIFP
has been
critical in
financing
infrastructure,
supporting
key industry
clusters
throughout
New Jersey
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Necessity for
Coordinated Planning
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Necessity for Coordinated Planning
Estimated 20-Year State Infrastructure Needs
*
1.  Water Supply
2.  Clean Water
a.  Wastewater Disposal
b.  Stormwater Mgmt
c.  Nonpoint Source Control
$ 8.0 B
Total
$ 43.0 B
$17.0 B
$16.0 B
$ 2.0 B
New Jersey Clean Watersheds Needs Survey 2008
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
20-Year Estimated Infrastructure Needs
Drinking Water
1. Water Supply:
*
$8.0 B *
1. Transmission/Distribution
$4.7 B
2. Source Development and Rehabilitation
$0.31 B
3. Treatment
$1.9 B
4. Storage
$1.1 B
New Jersey Clean Watersheds Needs Survey 2008
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
20-Year Estimated Infrastructure Needs
Clean Water
2a. Wastewater Disposal:
*
$ 17.0 B *
1.  Wastewater Treatment
$
6.3 B
2.  Pipe repair & new pipes
$
2.3 B
3.  Recycled water distribution
$ 0.10 B
4.  Combined sewer overflow correction
$
8.2 B
New Jersey Clean Watersheds Needs Survey 2008
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
20-Year Estimated Infrastructure Needs
Clean Water
2b. Stormwater Management:
1.  Conveyance infrastructure
$ 16.0 B *
$
0.49 B
2.  Treatment systems
$
B
*
3.  Green infrastructure
$ 14.9 B
4.  General stormwater management
$ 0.11 B
New Jersey Clean Watersheds Needs Survey 2008
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
0.11
20-Year Estimated Infrastructure Needs
Clean Water
2c. Nonpoint Source Control:
*
$
2.0 B *
1.  Agriculture best management practices
$
0.08 B
2.  Ground water protection
$
0.55 B
3.  Brownfields remediation
$
0.83 B
4.  Storage tank remediation
$ 0.003 B
5.  Sanitary Landfills BMPs
$ 0.276 B
6.  Hydromodification
$ 0.004 B
New Jersey Clean Watersheds Needs Survey 2008
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Benefits of Strategic Investment in
NJ’s Physical Infrastructure
•  Investment in the infrastructure (assets) and O&M (labor/supplies) of
water & sewer facilities expands the productive capacity of the
economy and creates value-added:
•  ROI Analysis - Every $1.00 of water & sewer infrastructure investment
increases private output (long-term) by $6.35 *
•  Each additional $1.00 of water & sewer revenue spent on O&M
increases revenue in all industries by $2.62 that year *
•  Each additional job in water & sewer creates 3.68 jobs in the national
economy to support that job *
•  ROI from water & sewer infrastructure exceeds that of highways *
•  Promotion of much needed job growth through facilitation of
investment in Priority Growth Investment Areas
*
Source: U.S. Conference of Mayors, Local Government Investment in Municipal
Water and Sewer Infrastructure, 8-14-2008.
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Contact List
David Zimmer
Executive Director,
NJEIT
dzimmer@njeit.org
Geoffrey Stewart
Financial Advisor,
Public Financial Management
stewartg@pfm.com
Richard Nolan
Bond Counsel,
McCarter & English
rnolan@mccarter.com
Karla Martin
DEP – Office of Equal Opportunity and
Lydia Harper
Public Contract Assistance
karla.martin@dep.state.nj.us
lydia.harper@dep.state.nj.us
Gene Chebra
Acting Assistant Director,
DEP – Office of Municipal Finance
eugene.chebra@dep.state.nj.us
Terry Caruso
DEP Green Acres,
terry.caruso@dep.state.nj.us
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST