New Jersey 2026-2027 Regular Session

New Jersey Senate Bill S1366

Introduced
1/13/26  

Caption

Makes $1.3 billion in federal funds available to DEP for use in New Jersey Environmental Infrastructure Financing Program for lead service line replacement projects.

Impact

The proposed bill facilitates financial support for public water utilities undertaking lead service line replacements, effectively enhancing the quality of drinking water in New Jersey. The DEP is authorized to use a small fraction of the funds for administrative costs, ensuring that the bulk of resources are dedicated to the requisite infrastructure improvements. Provisions allow for the NJIB to provide matching funds or loans, especially benefiting smaller water suppliers with fewer than 3,300 connections, ensuring broader stakeholder engagement in the project.

Summary

Senate Bill S1366 proposes to allocate $1.3 billion in federal funds, specifically targeting lead service line replacement projects in New Jersey. These funds, sourced from the 'Coronavirus State Fiscal Recovery Fund' as established under the 'American Rescue Plan Act of 2021', are intended to support initiatives led by the Department of Environmental Protection (DEP) in conjunction with the New Jersey Infrastructure Bank (NJIB). The legislation aims to address public health concerns associated with lead in drinking water, promoting safer infrastructure for communities across the state.

Contention

KEY aspects of S1366 include conditions regarding the release of federal funds, particularly the requirement of upfront matching funds for larger water utilities, while allowing flexibility for small suppliers. Critics of the bill could raise concerns about potential financial burdens on these entities for compliance with matching fund requirements, which could impact project timelines. Additionally, the operational dynamics between the DEP and NJIB concerning financial awards and eligibility will require careful oversight and transparency throughout the implementation process.

Companion Bills

NJ S1457

Carry Over Makes $1.3 billion in federal funds available to DEP for use in New Jersey Environmental Infrastructure Financing Program for lead service line replacement projects.

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