October 17, 2007

Environmental Trust's Record $216M Bond Sale to Fund 87 Clean Water Projects

Good News Overshadowed by Federal Cuts in Clean Water Program and New Jersey's $18 Billion Water Infrastructure Need

TRENTON - New Jersey Environmental Infrastructure Trust Chairman Robert A. Briant, Sr. today announced the sale of more than $216 million in AAA-rated New Jersey Environmental Infrastructure Trust Bonds to help finance 87 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 $518 million - the largest pooled financing program in Trust history.

"This sale marks the 21st 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 680 projects in New Jersey , totaling $4.3 billion. These projects will provide new or upgraded drinking water and wastewater treatment and conveyance pipes as well as open space preservation."

"We are also pleased that 23 new borrowers participated in this year's program," Briant added. "Our increased outreach to municipalities is getting the message out that no one can beat our financing rates. When a governmental body borrows capital for water infrastructure projects from a traditional lender, they are wasting taxpayers and ratepayers money."

The sale was completed in one series:
Series 2007A - $216,105,000: Interest Rate - 4.23%

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 years 2006 and 2007, down 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. These reductions have forced the NJDEP to reconsider the number and types of projects eligible for funding."

Recent estimates indicate a funding need for more than $18 billion 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 $1.8 billion in financing costs and have created thousands of construction jobs.

"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 the highest possible 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 Middlesex County Utilities Authority with $63.7 million followed by the North Bergen Municipal Utilities Authority with $37.7 million, the City of Newark with $32 million and the Ocean County Utilities Authority with $27.5 million.

The Mount Holly Municipal Utilities Authority received a $24 million loan to construct a new wastewater treatment plant on Maple Avenue and upgrade the existing Rancocas Road plant. The two facilities will have a combined treatment capacity of 6 million gallons per day.

Of the 87 projects funded this year, 51 are for clean water (wastewater treatment and conveyance, stormwater, combined sewer overflows, etc.), 32 for drinking water (treatment, storage and transmission) and four for open space land acquisition to preserve 170 acres. 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 1.06 percent and traditional project loans at 2.11 percent.

To learn more about the New Jersey Environmental Infrastructure Trust visit www.njeit.org.

NJEIT 2007 Financing Program
Borrowers, Loan Amounts and Project Descriptions

Clean Water Projects

Asbury Park City (Asbury Partners, LLC) - $8,185,700* - Installation of an odor control system and electrical and ventilation system upgrades to a wastewater treatment plant located on 8 th and Ocean Avenue .

Atlantic County Utility Authority - $2,977,535* (2 projects) - Various treatment plant upgrades including water system rehabilitation, pumping station improvements and replacement of on-site underground storage tanks.

Bayonne LRA - $17,059,000* - Improvements to the stormwater system and construction of sanitary sewer lines.

Bergen County - $7,416,298 - Landfill Closure.

Bergen County UA - $1,489,600* - Rehabilitation, repair and replacement of barge docking facilities.

Berkeley Heights Township - $4,060,000 - Modification and upgrades to a wastewater treatment plant.

Berkeley Township SA - $3,289,000 - Sanitary sewer construction.

Caldwell Borough - $15,157,000 - Wastewater treatment plant upgrade.

Camden County MUA - $10,150,000* - Wastewater treatment plant upgrade.

Dumont Borough - $3,144,000 (2 projects) - Storm sewer drainage improvements and electrical and mechanical upgrades to five pump stations.

Edgewater Borough - $2,315,308* - Separation of storm and sanitary sewers along River Road and Washington Lane.

Elmwood Park Borough - $4,096,776 - Construction of a new wastewater pump station.

Franklin Township SA - $12,500,000 - Sewer upgrades and construction of a new pump station and force main for the City of New Brunswick 's Mile Run Interceptor.

Jefferson Township - $1,374,700 - Upgrade of treatment facilities at the Arthur Stanlick School sewage treatment plant.

Jersey City MUA - $12,151,154* - Restoration and sanitary sewer system upgrades at four sites.

Kearny Town - $4,831,000* - Construction of net in-line chambers at overflow pipes located on Tappan/Duke Street , Ivy Street and Johnston Avenues.

Kearny MUA - $5,410,000* - Drainage improvements and new outfall structures and appurtenances.

Leonia Borough - $446,214 - Sewer system improvements and sewer line installation.

Linden City - $1,842,722 - Construction of storm sewers and a landfill closure.

Magnolia Borough - $1,826,574 (2 projects) - Sanitary sewer, storm sewer repairs and sewer line installation at four locations.

Medford Township - $2,212,400 - Improvements to a sewerage treatment plant.

Middlesex County UA - $63,725,490 - Construction of three new landfill cells located in East Brunswick Township .

Mount Holly MUA - $24,354,050 - Upgrade and expansion of the Rancocas Road wastewater treatment plant.

Musconetcong SA - $1,813,580 - Modification and repairs to sewerage facilities, a force main connection and the installation of security system controls.

Newark City - $32,050,707* (3 projects) - Stormwater and combined sewer overflow improvements.

North Bergen MUA - $37,703,440* - Rehabilitation of North Bergen and Jersey City MUA's pumping stations and the installation of force main lines.

North Hudson SA - $6,059,553* - Installation of a pump station and force main.

Ocean County UA - $27,502,780 (5 projects) - Replacement and rehabilitation of sewage treatment plants in the Northern and Central Service Areas, pump station improvements and interceptor rehabilitation.

Ocean SA, Township of ( Monmouth County ) - $5,921,000 - Improvements to the main pump station and the Whale Pond and Interlake pump stations.

Passaic Valley Sewerage Commissioners - $24,189,156* (2 projects) Sewerage treatment plant improvements and construction of a skimmer vessel operations facility.

Pine Hill Borough MUA - $1,040,766 - Equipment purchase and installation of sewer lines.

Point Pleasant Beach Borough - $588,784 - Replacement of sewer mains.

Princeton Sewer Operating Committee - $3,392,886 (2 borrowers) Sanitary sewer rehabilitation and repairs in Princeton Borough and Princeton Township.

Rockaway Valley RSA - $12,988,630 - Improvements to the sludge treatment process.

Saddle Brook Township - $1,966,308 - Pump station improvements.

Seaside Park Borough - $3,906,212 - Sewer replacement.

Somerset Raritan Valley SA - $12,714,500 - Installation of a 72-inch diameter treatment plant outfall.

Stone Harbor Borough - $1,467,934 - Replacement of sewer mains.

Stony Brook RSA - $5,300,000 - Upgrade of sludge management facilities and equipment.

West Deptford Township - $6,047,000 - Sanitary and storm sewer rehabilitation in the Sherwood Green and Sherwood West areas.

Westville Borough - $614,048 - Rehabilitation and/or replacement of sanitary sewer mains and manholes.

Land Acquisition Projects

Berkeley Township - $1,300,000 - Acquisition and Preservation of Land.

Cherry Hill Township - $4,043,130 - Acquisition and Preservation of Land.

High Bridge Borough - $909,255 - Acquisition and Preservation of Land.

New Jersey SA ( Raritan Basin ) - $2,320,750 - Acquisition and Preservation of Land.

Drinking Water Projects

Bayonne MUA - $1,774,690* (2 projects) - Construction of a 16-inch water main across Bayonne Bay to serve the Constable Hook section. Replacement and extension of a 12-inch water main along Water Street .

Berkeley Township MUA - $4,068,466 - Construction of water mains in the Pinewald Section of the Township.

Bridgeton City - $2,245,340 - Installation of a radium removal treatment plant.

Continental Communities L.L.C. ( Monroe Twp.) - $1,933,380
Installation of a radium removal treatment system and chemical tanks.

Jackson Township MUA - $11,802,000 (2 projects) - Replacement of the existing Manhattan Street water treatment plant.

Jersey City/Jersey City MUA - $12,297,788* (3 Projects) - Treatment plant improvements, replacement of 17 large valves and cleaning and lining of water mains.

Maple Shade Township - $11,100,000 - Construction of a new water treatment plant, well house, pumping facilities and appurtenances.

Merchantville-Pennsauken Water Commission - $1,271,014 - Treatment plant upgrades.

Mount Laurel Township MUA - $5,151,454 - Construction of a groundwater treatment plant, demolition of the Ramblewood Plant and partial demolition of the Elbo Lane Plant.

Middlesex Water Company - $3,500,000 - Cleaning/lining of water mains, hydrants, service lines and valves in the City of South Amboy and Woodbridge Township .

Newark City - $8,050,000* (2 projects) - Rehabilitation of water mains and the Pequannock Aqueducts

North Brunswick Township - $17,878,996 - Water treatment plant improvements.

Passaic Valley WC - $3,516,560* (2 projects) - Cleaning and lining of water mains in the City of Paterson .

Perth Amboy City - $2,230,000 - Water system modifications and investigations of the Florida Grove Road Reservoir.

Ramsey Borough - $1,347,220 (4 Projects) - Treatment plant improvements.

Seaside Park Borough - $3,817,716 - Replacement of water mains.

Stafford Township - $8,722,170 (4 Projects) - Installation and connection of water mains and water meters.

Stone Harbor Borough - $335,532 - Replacement of water mains.

Trenton City - $12,881,160* - Upgrades and improvements to the Trenton Water Works treatment plant.

West Deptford Township - $803,262 - Installation/replacement of water mains.

*75/25 Smart Growth Financing Rate

TOTAL - $518,581,688