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A 4571

Establishes the drinking water quality institute to make recommendations to the department of health relating to ensuring the safety of potable water

2025 Regular Session Introduced by Josh Jensen

NJIB gains broader financing tools and flexibility (private sales, variable rates, five-year short-term loans) to fund environmental, hazard mitigation, and private onsite wastewat

REFERRED TO HEALTH
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WeVote Research Nonpartisan
Bill Summary · A 4571

Summary — A4571 (Assembly Bill No. 4571 / P.L.2025, c.14)

Note on title: the bill information provided included a different title (establishing a Drinking Water Quality Institute). The legislative text and enacted chapter (P.L.2025, c.14) and committee materials show that A4571 actually amends the statutory authority and programs of the New Jersey Infrastructure Bank (NJIB) — including the Community Hazard Assistance Mitigation Program (CHAMP), Water Bank, Transportation Bank, and related loan programs. This summary reflects the actual bill text and amendments as enacted.

Main purpose

A4571 updates and clarifies the NJIB’s statutory powers and procedures to finance environmental infrastructure, transportation, hazard mitigation, and disaster-relief projects. It modifies loan terms, issuance and sale of notes/bonds, borrower eligibility, and program definitions — with particular attention to the CHAMP hazard mitigation program established under P.L.2023, c.63.

Key provisions and changes

  • CHAMP bond/note authority: Clarifies that notes/bonds issued to NJIB under CHAMP must be authorized as provided by law for local issuance, be approved by the Director of the Division of Local Government Services (for local units), may be sold at private sale to the NJIB/State at any price, and may be redeemed prior to maturity at terms the NJIB and the local unit agree.
  • State Treasurer approval: Short-term/temporary loans under the Water Bank and CHAMP are exempted from the State Treasurer approval requirement that otherwise applies to longer-term NJIB loans.
  • Indebtedness date extended: Clarifies the statutory cutoff date after which the NJIB may not incur additional indebtedness is June 30, 2053 (replacing an earlier referenced date).
  • Expanded borrower eligibility: Authorizes the NJIB to make loans to private persons (or on behalf of private persons) to finance onsite wastewater treatment and disposal systems.
  • Short-term loan duration standardized: Restructures certain short-term/temporary loans under the Water Bank, Transportation Bank, and Disaster Relief programs so such loans have a five-year duration (removing separate durations for design vs. construction phases).
  • Variable-rate CHAMP loans: Permits CHAMP short-term or temporary loans to bear a variable interest rate.
  • CHAMP maturities for local governments: States that short-term or temporary CHAMP loans to local governments will have maturity dates as provided in NJIB statute, notwithstanding certain provisions of the Local Bond Law and related statutes.
  • NJIB discretion on temporary loans: Confirms the NJIB may establish specific terms for temporary loans under CHAMP.
  • Definitions clarified: Revises/clarifies the statutory definition of “hazard mitigation and resilience project.”
  • Committee amendment (added earlier in process): expanded the definition of “transportation project” to explicitly include related transmission and distribution lines.
  • Committee/Docketed amendment about marine funding: the committee had required the Department of Transportation to include $5 million for marine projects on the FY2026 Transportation Financing Program priority list; a later floor amendment removed that requirement.

Who is affected

  • New Jersey Infrastructure Bank (trust) — statutory powers, financing mechanisms, and program operations.
  • Local government units (counties, municipalities, sewer/water authorities) — issuance and sale of notes/bonds to NJIB, loan maturities and terms.
  • Private property owners/developers — newly eligible for NJIB financing for onsite wastewater systems.
  • State agencies (Department of Environmental Protection, Department of Community Affairs, Division of Local Government Services, State Treasurer) — oversight, approvals, and interactions with NJIB.
  • Nonprofit organizations — eligible CHAMP borrowers for hazard mitigation projects.

Procedural / timeline notes

  • Introduced in the Assembly: June 13, 2024.
  • Assembly committee reported the bill with amendments: June 24, 2024.
  • Passed Assembly: June 28, 2024 (74-1-0).
  • Received/Passed Senate with amendment: December 19, 2024 (38-0).
  • Enacted as law: Approved January 30, 2025 — P.L.2025, c.14.
  • Fiscal: Committee reported the bill “not certified as requiring a fiscal note.”

Potential impact

  • May increase NJIB flexibility to structure financing (private sales of notes, variable rates, five-year short-term loans).
  • Enables NJIB financing access for private onsite wastewater projects, potentially increasing uptake of decentralized wastewater solutions.
  • Clarifies and streamlines CHAMP loan processes, which could accelerate financing of hazard mitigation and resilience projects.
  • Extending the NJIB indebtedness cutoff to 2053 preserves a longer borrowing window to fund infrastructure.

Compiled from official sources — confirm details with the bill’s official record.

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