October 18, 2006

Environmental Trust's $170M Bond Sale to Fund 53 Clean Water Projects

Record Financing Year Helps Offset Federal Cuts in Clean Water Program

TRENTON - New Jersey Environmental Infrastructure Trust Chairman Robert A. Briant, Sr. today announced the sale of more than $170 million in bonds to help finance 53 environmental protection projects. The bond sale proceeds will be combined with capitalization grants from the New Jersey Department of Environmental Protection to total more than $453 million - the largest pooled financing program in Trust history.

"This sale marks the 20th consecutive year the Trust has sold bonds to finance needed infrastructure projects in New Jersey," Chairman Briant said. "With this sale, the Environmental Infrastructure Financing Program has provided low-interest loans to more than 590 projects in New Jersey , totaling nearly $4 billion. These projects will provide new or upgraded drinking water and wastewater treatment and conveyance pipes as well as open space preservation."

The sale was completed in two series:

Series 2006A - $148,850,000: Interest Rate - 4.19%
Series 2006B - $22,130,000: Interest Rate - 4.48%

Despite today's good news, Trust Executive Director Dennis Hart cautioned that federal cuts in capitalization grants are presenting future challenges for the program.

"Federal funding for New Jersey 's clean water programs dropped to $27 million in federal fiscal year 2006, from $44 million in 2005 and $54 million in 2004," Hart said. "Since the Trust matches its bond funds with zero-percent federal grants, every dollar cut by the federal government reduces funds for future clean water projects by two dollars."

Recent estimates indicate a need for more than $15 billion in funding for wastewater and drinking water projects across New Jersey.

The Financing Program's loans, which are 75 and 50 percent below market rates, provide substantial cost savings to municipalities and utility and sewerage authorities. To date, these loans have saved New Jersey taxpayers and ratepayers more than $1.2 billion in financing costs.

"Our goal is to enhance and protect New Jersey's water resources at the lowest cost possible, Hart said. "Our pooled financing program provides local governments with savings they would not realize using their own financing. With AAA bond ratings from Fitch Ratings, Moody's Investor Service and Standard & Poor's, our loans are a very safe alternative to traditional market-rate financing. In fact, a 20-year loan under our program has lower annual costs than a 30-year loan through traditional financing."

This year's largest borrower is the Bergen County Utilities Authority with $73.3 million, followed by the Middlesex County Utilities Authority with $68.8 million and the Passaic Valley Sewerage Commissioners with $37.4 million.

The City of Trenton is borrowing $48.8 million to upgrade its drinking water filtration plant. This upgrade will expand the plant's treatment capacity and help it meet drinking water standards during flood events in the Delaware River.

Of the 53 projects funded this year, 31 are for clean water (wastewater treatment and conveyance, stormwater, combined sewer overflows, etc.), 21 for drinking water (treatment, storage and transmission) and one for open space land acquisition. A list of this year's borrowers with project descriptions is provided below.

Since the program's inception, all qualifying projects have received financing. However, if federal funds are not restored, the program's financing will be limited to projects with the highest environmental priority. This will exclude many municipalities and utility and sewerage authorities from low-interest financing.

The Environmental Infrastructure Financing Program is a partnership between the New Jersey Environmental Infrastructure Trust and the Department of Environmental Protection that combines interest-free loans from State Revolving Funds with market rate loans from the sale of Trust bonds. This provides borrowers with a loan that is half the prevailing market rate. Projects that promote smart growth through land preservation or urban development are eligible for loans that are one quarter of the market rate. Proceeds from today's bond sale will be combined with zero-percent State Revolving Funds to provide smart growth project loans at 1.05 percent and traditional project loans at 2.10 percent.

NJEIT 2006 Financing Program
Borrowers and Loan Amounts

Clean Water Projects

Asbury Park City - $2,172,000*
Equipment purchase and sewer rehabilitation.

Atlantic County Utilities Authority - $2,508,362* (2 projects)
Photovoltaic generation system at wastewater treatment plant and equipment purchase.

Bayonne RedeveloMarch 11, 2008sanitary sewer for Harbor Station North.

Bergen County Utilities Authority - $73,332,413* (2 projects)
Wastewater treatment plant upgrade and improvements to the Overpeck Valley trunk sewer.

Camden County Municipal Utilities Authority - $33,802,462* (3 projects)
Wastewater treatment plant upgrades and combined sewer overflow upgrades in Camden and Gloucester Cities .

Carteret Redevelopment Agency - $36,585,666
Closure of three landfills in Carteret Borough (Carteret, Cranbrook and Middlesex Landfills).

Denville Township - $5,844,082
Sanitary sewer construction.

Edison Township - $883,562
Stormwater drainage improvements to Stephenville and Fishel Road .

Elizabeth City - $2,881,379* (2 projects)
Combined sewer overflow correction, construction of Harding Road storm sewer and miscellaneous stormwater control measures.

Evesham Municipal Utilities Authority - $11,399,148
Improvements to the Kings Grant Wastewater Treatment Plant.

Joint Meeting of Essex & Union Counties (1 project, 6 borrowers)
Elizabeth City - $3,364,447*
Hillside Township - $400,529*
Irvington Township - $1,201,588*
Newark City - $720,953*
Union Township - $1,425,066*
West Orange Township - $811,295*
Upgrades to the Joint Meeting of Essex and Union Counties Wastewater Treatment Plant.

Linden City - $1,083,600
Improvements to the stormwater drainage system and construction of storm sewers.

Middlesex County Utilities Authority - $68,813,716
Upgrade of force mains and a pump station in Edison Township .

North Hudson Sewerage Authority - $8,992,636* (4 projects)
Stormwater management , wastewater treatment plant improvements, combined sewer overflow correction .

Ocean County Utilities Authority - $14,696,910
Wastewater treatment plant and sanitary sewer interceptor rehabilitation .

Ocean Township Sewerage Authority - $996,382
Wastewater treatment plant improvements, replacement of two pump stations and relining of trunk sewer lines.

Old Bridge Municipal Utilities Authority - $6,334,000
Sewer interceptor replacement.

Passaic Valley Sewerage Commissioners - $37,479,322* (3 projects)
Wastewater treatment plant improvements and sewer i nterceptor rehabilitation.

Pequannock, Lincoln Park & Fairfield Sewerage Authority - $9,008,726
Improvements to three sewage pump stations.

Princeton Sewer Operating Committee (1 project, 2 borrowers)
Princeton Borough - $1,778,283

Princeton Township - $1,778,283
Sanitary sewer rehabilitation.

Stockton Borough - $565,950
Stormwater drainage improvements.

Land Acquisition Project(s)

New Jersey Water Supply Authority - $2,799,150*
Raritan Basin Land Acquisition

Drinking Water Projects

Atlantic City Municipal Utilities Authority - $2,397,471*
Water treatment plant rehabilitation.

Berlin Borough - $3,814,400 (3 projects)
Chestnut Avenue Tank (tower), meter improvements and generator improvements.

Elmwood Park Borough - $4,732,756 (3 projects)
River Drive water main improvements, Martha Avenue water main replacement, and improvements to the Gilbert Avenue Pump Station.

Glen Ridge Borough - $1,569,570
Water main construction.

Island Heights Borough - $397,000
Construction of a drinking water well.

Long Beach Township - $677,714
Water main construction.

Middlesex Water Company - $3,500,000
Water distribution system improvements.

New Brunswick City - $21,578,106*
Water treatment plant improvements.

North Jersey District Water Supply Commission - $3,455,273* (2 projects)
Solar photovoltaic system and rehabilitation of the Wanaque South pump station.

Saddle River Borough - $2,069,710
Water main installation.

Sea Girt Borough - $3,661,764 (3 projects)
Improvements to the water system including enhanced water supply wells, treatment/filtration process, storage and distribution, and pipeline work.

Stafford Township - $6,053,482 (2 projects)
Construction of water mains to serve the Ocean Acres Section.

Trenton City - $48,893,604*
Improvements to the water filtration plant.

* 75/25 Smart Growth Financing Rate

TOTAL - $438,879,157