WeVote
Log In

Bill

JR

Bill

A 5252

"Lead-Free Drinking Water Bond Act of 2025," authorizes bonds for $400 million, and appropriates $5,000.

2024-2025 Regular Session Introduced by Jessica Ramirez

Funds $400M in bonds to finance grants and revolving loans for replacing lead plumbing and service lines in NJ, reducing exposure in homes and schools.

Introduced in the Assembly, Referred to Assembly Environment, Natural Resources, and Solid Waste Committee
#pollution
0
WeVote Research Nonpartisan
Bill Summary · A 5252

Summary: A 5252 — Lead-Free Drinking Water Bond Act of 2025

Overview

  • Bill: A 5252
  • Title: Lead-Free Drinking Water Bond Act of 2025
  • Purpose: Authorizes the issuance of bonds in the aggregate amount of $400 million to finance replacement of lead plumbing and lead service lines in New Jersey, via grants and a revolving loan fund.
  • Provisions include authorization, use of proceeds, eligibility, administration, and public referendum features.
  • Status: Introduced in the Assembly on February 12, 2025; referred to the Assembly Environment, Natural Resources, and Solid Waste Committee. Sponsor: Chris Tague (primary).
  • House action timeline: Introduced in the Assembly; referenced for committee review. The bill text indicates a provision for submission to voters at a general election (referendum).

Purpose and Intent

  • Address ongoing exposure to lead in drinking water by financing replacement of lead internal plumbing and lead service lines in residential, school, and commercial settings.
  • Build on prior New Jersey lead-in-water efforts (e.g., limits and inventories of lead lines) by creating a dedicated funding mechanism to accelerate replacement projects.

Key Provisions and Changes

Bond Authorization and Financing

  • Authorized bonds: State of New Jersey may issue bonds in the aggregate principal amount of $400 million.
  • Form of bonds: Serial bonds, term bonds, or a combination; may be coupon, fully registered, or book-entry; may be redeemed prior to maturity.
  • Maturity: Bonds must be paid not later than 35 years from issuance.
  • Name: “2025 Lead-Free Drinking Water Bonds.”

Use of Proceeds

  • Total proceeds split:
    • $200 million for grants to homeowners and schools to finance lead plumbing replacement projects.
    • $200 million for loans through a revolving loan fund to the owner or operator of a water system, school, or business entity to finance lead plumbing replacement projects.

Revolving Fund and Grants/Loans Administration

  • Establishment of a revolving fund to support grants and loans for lead plumbing replacement.
  • The Commissioner of Environmental Protection sets eligibility criteria and review procedures for grant/loan programs.
  • The Department of Environmental Protection (or successor agency) administers the program, including feasibility studies, engineering, and related services.
  • Costs include project planning, engineering, legal, financial services, administrative expenses, reserve funds, and reimbursement of state moneys as needed.

Definitions and Scope

  • Lead internal plumbing, lead service line, lead pigtail/gooseneck, and related fittings defined to include all lead-containing components used for water delivery inside buildings.
  • A galvanized service line is considered a lead service line for purposes of the act.
  • Applies to schools (K–12) and other buildings supplying potable water.

Governance and Implementation

  • The Department must adopt rules under the Administrative Procedure Act to implement the act.
  • The act contemplates submitting the measure to voters at a general election for approval.
  • The Governor, State Treasurer, and the Director of the Division of Budget and Accounting play lead roles in bond issuance and finance management (consistent with state debt issuance processes).

Affected Parties

  • Residents and property owners (via grants to homeowners for replacements).
  • Schools (as recipients of grants/loans for replacement).
  • Water systems, property owners, and business entities (as loan recipients for replacement projects).
  • Local governments and school districts that own or operate water systems or service lines.

Timing and Procedural Aspects

  • Introduced: February 12, 2025.
  • Committee referral: Assembly Environment, Natural Resources, and Solid Waste Committee (initial).
  • Public referendum: Act contemplates submission to the people at a general election (subject to legislative process and voter approval).

Related Information

  • Related bill: A 10160 (prior session).
  • Legislative actions listed show referrals; status remains at the committee stage pending further action.

Potential Impacts

  • Public health: Directly aims to reduce lead exposure from drinking water for children and residents.
  • Infrastructure: Accelerates replacement of lead plumbing and service lines through grants and loans.
  • Fiscal: Creates a state-backed debt instrument financed by bonds with a 35-year horizon; funds a revolving loan mechanism to sustain ongoing projects.

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

Sign in to ask a question.