NJ Water Bank Hits $1 Billion Water Infrastructure Milestone

IRVINGTON  - The New Jersey Water Bank, a partnership between the state Department of Environmental Protection and the New Jersey Infrastructure Bank that provides low-cost financing for projects to improve local clean- and drinking-water infrastructure, has surpassed $1 billion in fiscal year project financing for the very first time.

In Fiscal Year 2024, which concluded June 30, the Water Bank provided financing for 116 clean water projects (wastewater and stormwater treatment) totaling $838 million and financing for 31 drinking water projects, totaling $240 million. These projects represent a combined $1.078 billion in infrastructure financing. The previous record was $769.5 million in Fiscal Year 2021. 

This record funding is being used to replace lead and galvanized service lines, install PFAS treatment systems, mitigate stormwater discharges, address combined sewer overflows, upgrade wastewater treatment, reduce flooding, and more. The announcement was made during a news conference in Irvington, where New Jersey American Water has been using more than $48 million in Water Bank financing to replace some 5,000 lead and galvanized residential service lines.

"In order to combat the effects of climate change, we must ensure the resilience of water infrastructure in the state," Gov. Phil Murphy said. "With $1 billion of new project financing, New Jersey's Water Bank is making transformational progress in securing our water resources to guarantee the safety of drinking water supplies and protecting public health. By funding these critical projects, we can support the health and wellness of New Jerseyans and provide vital support to communities that need it most."

The DEP launched the Our Water's Worth It campaign earlier this year to raise public awareness about the fundamental importance of our water supplies, the threats they face, and the steps DEP is taking to ensure all New Jerseyans have access to clean drinking water and healthy waterways.

"New Jersey American Water's lead service line replacement program prioritizes underserved communities first, and partnering with the I-Bank on these projects helps us double-down on that commitment," said New Jersey American Water Vice President of Operations Ben Morris. "Through I-Bank financing, we have been able to increase the speed and amount of lead service line replacements in Irvington, as well as eight additional overburdened communities we serve in the state, without increasing the cost for our customers."

FY 2024 Project Highlights

Examples of projects that received Water Bank financing in state fiscal year 2024 include:

• The Passaic Valley Sewerage Commission received more than $116 million to increase treatment capacity for the purpose of reducing discharges of combined sewer overflows that impact surface water quality in the area. Construction began in March of this year and is anticipated to be completed by the end of 2028.
• The City of Camden received $55 million for the construction of granular activated carbon to treat PFAS and 1,4-dioxane and to upgrade the Morris-Delair Water Treatment Facility. Construction began in February and is expected to be completed by the end of 2025.
• The Bayshore Regional Sewerage Authority received $31 million to construct backup power generation to the sewerage authority and the Monmouth County Bayshore Outfall Authority to safely treat and dispose of wastewater during prolonged power outages.
• New Jersey American Water received more than $25 million to expand replacements of lead service lines in Irvington. Combined with financing for a 2022 project, the Water Bank has provided more than $48 million in financing for the replacement of more than 5,000 lead and galvanized service lines in Irvington. Work is expected to be completed by the end of next year.
• The City of Trenton received more than $9 million to replace approximately 1,000 lead and galvanized service lines with copper lines. Construction is expected to begin soon and be completed by July 2026.
• The Jersey City MUA received $9.8 million to replace additional lead service lines in the city. Combined with financing received in FY 2023, the Water Bank has provided more than $21 million for the replacement of approximately 1,600 lead service lines in Jersey City. Construction began in July 2023 and is expected to be completed by June 2025.

The full $1 billion in project closings for 2024 can be found at the DEP's Water Infrastructure Dashboard. Based on the current application pipeline, the Water Bank expects to again exceed $1 billion in project financing in the current fiscal year.

The New Jersey Water Bank administers two programs, the Drinking Water State Revolving Fund (focused on drinking water infrastructure and technologies) and the Clean Water State Revolving Fund (focused on public wastewater and stormwater systems). The Water Bank provides below-market financing by offering borrowers principal forgiveness combined with zero-percent interest rate loans through the DEP and advantageous loan rates from the I-Bank's AAA-rated bond proceeds. On average, borrowers are able to save more than 30 percent of their total financing costs by borrowing through the Water Bank.

Since 1987, the Water Bank has made more than $10 billion in short-term and long-term loans to local water systems, saving participating borrowers more than $3.3 billion and creating more than 177,000 direct construction jobs.

For more information, contact the New Jersey Infrastructure Bank at (609) 219-8600.