Established by the Pinelands Infrastructure Trust Bond Act of 1985, the Program provides funding for infrastructure projects needed to accommodate existing and future needs in the 23 designated Pinelands Regional Growth Areas. Funding is available for the construction of new collection systems, interceptors, and the expansion/upgrade of wastewater treatment facilities. Projects certified under this program generally receive a grant for 40 percent of the allowable project costs and a loan for 20 percent of the allowable project costs from the Department. Loans for the remaining project costs may also be received from the Trust.

The New Jersey Sewage Infrastructure Improvement Act establishes comprehensive requirements for the Department and municipalities/authorities to address combined sewer overflows and stormwater management. The Department provides grants for planning and design for up to 90 percent of the costs involved for combined sewer overflow control projects throughout the state to eliminate dry weather overflows and to control the discharge of solids and floatables from combined sewers. In addition, the correction of interconnections/cross-connections in stormwater systems located in Atlantic, Cape May, Ocean and Monmouth counties are also eligible. Loans for the construction of these projects are available through the Environmental Infrastructure Financing Program.

Since the enactment of the Federal Water Pollution Control Act of 1972 (commonly referred to as the Clean Water Act), more than $2.7 billion in federal funds has been awarded for the construction of municipal wastewater treatment facilities in the State of New Jersey. The Construction Grants Program, created under the provisions of the Clean Water Act, has resulted in major improvements to the state's wastewater treatment facilities and overall water quality.

The Water Quality Act of 1987 phased out the Construction Grants Program and required states to establish a State Revolving Fund (SRF) Loan Program. The last year in which construction grants were made for new projects in New Jersey was 1989. Grant awards are available currently to cover increased allowable costs for projects that previously received a construction grant.

To decide which clean water projects get funded, a priority system was created. The system, which was first developed in 1982, is constantly evolving. Historically, the state's highest priority was to upgrade primary treatment plants to achieve secondary levels, thereby significantly reducing pollutant discharges. With the elimination of primary facilities in New Jersey, the primary discharge category has been deleted from the priority system-a major milestone that signals progress is being made under the state's financing programs. The state's highest priority wastewater needs now include combined sewer overflows (CSOs) and major pipe rehabilitation to stop discharges of raw sewage. These types of problems are frequently found in older urban areas, where pollution impacts streams and rivers near large population centers and where the cost to correct these problems is a serious concern. Priority is also placed on projects in coastal areas, where pollution impacts from outdated sewage treatment and conveyance systems can harm the shore environment and the tourism industry.

To prioritize wastewater projects under the Environmental Infrastructure Financing Program, the division uses a point system, which ranks projects based on the nature of the wastewater problem. In addition, projects discharging to surface waters receive points that reflect the existing uses of the waterway. These uses include drinking water supplies, boating, fishing, swimming, and water used for industrial or agricultural purposes. The point values reflect the relative priority of the water uses, with drinking water and recreational uses being the highest priorities. Points are also given to projects that would eliminate failing septic systems, a public health threat.

Finally, projects receive points that correlate with an area's existing water quality when compared with the Department's water quality standards. The more polluted an area is, the higher the ranking points it receives.

After a project's discharge, water use, and water quality points have been compiled, it is placed on a priority list in rank order. In the case of a tie, areas designated by the State Planning Commission receive highest priority and, if still tied, the higher priority is given to the project that serves the greater number of people.

Funding from the Environmental Infrastructure Financing Program is made available to projects in the order they appear on the list. While a project's rank is important, a lower ranked project may still be able to secure financing if it meets planning, design, and loan application dates, or, if sufficient monies are not available, it may be able to receive "pre-award approval" to start construction and receive loans for reimbursement of costs in a future year.

The drinking water priority system reflects Congress's intent that States must give maximum priority to 1) projects needed for Safe Drinking Water Act compliance, 2) projects that provide the greatest protection to public health, and 3) projects which assist systems most in need on a per household basis. States must develop a priority list that reflects this intent and to fund projects in this order, to the maximum extent practicable.

The principal elements of the Priority System are: compliance and public health criteria, approved drinking water infrastructure plan, conformance with the New Jersey State Development and Redevelopment Plan, and affordability. In the case of a tie, projects are assigned points based on the permanent population of the water system area.

Priority points are based upon several different subject categories. However, to be eligible for ranking, a project scope must include the actual repair, rehabilitation, correction of a problem, or an improvement clearly related to compliance and public health criteria. Any points assigned from the remaining categories are added to the points received in this category.

Due to the annual addition of new projects to the Project Priority List, or to periodic revisions to the Priority System, individual project rankings may change annually. Projects including multiple elements, are listed separately by the elements involved, with priority points being assigned for each element.

A prospective applicant must notify the Department of any changes to project scope or any other circumstance that may affect the calculation of priority points. The Department would then recalculate, if appropriate, the prospective applicant's ranking utilizing the new information submitted and revise the priority ranking accordingly.

Funding from the Environmental Infrastructure Financing Program is made available to projects in the order they appear on the priority list. While a project's rank is important, a lower ranked project may still be able to secure financing if it meets planning, design, and loan application dates. If sufficient monies are not available, it may be able to receive 'pre-award' approval to start construction and receive loans for reimbursement of costs in a future year.