Commission to open Master Plan amendment for Infrastructure Trust Fund, prioritizing water and wastewater projects

Jane Bird, director of land use programs for the Pinelands Commission, told the Policy & Implementation Committee on June 26 that staff recommends amending the Infrastructure Master Plan to update project ranking criteria and funding structure for a new round of Infrastructure Trust Fund projects.

Bird reviewed the trust fund’s history (created by the 1985 Infrastructure Bond Act) and said about $10 million remains available for new projects after prior rounds. Staff recommended limiting eligible project types for this solicitation to water supply and wastewater extensions because transportation projects drew no applicants in the last round and green‑infrastructure proposals are difficult to tie directly to regional growth area development.

Under the proposed amendment staff would retain the mandatory eligibility requirements from 2019 (local match, service to regional growth‑area development and PDC opportunities) and add scoring bonuses for project readiness, economic need (median household income, share of population receiving assistance, growth trends), viable alternate water sources (non‑Kirkwood‑Cohansey), and regional‑scale projects. Staff emphasized awarding extra points to projects that are ‘‘shovel ready’’ because many prioritized 2019 projects subsequently faltered.

Staff proposed preserving the prior loan/grant proportions (50% loan / 40% grant with 10% local match) but raised the recommended loan interest rate to 2% (from 1% in 2019) to align with current I‑Bank rates and to increase the fund’s long‑term recyclability. Staff noted the trust fund cannot be used for planning or design work; eligible costs and final fund administration are subject to NJDEP and I‑Bank review.

Commissioners asked whether projects extending sewer service to septic‑served areas should receive extra points for public‑health benefits. Staff proposed a tiered bonus (suggested maximum 10 points) for projects that remove public‑health risks by extending sewer service; the committee reached consensus to include that new criterion in the amendment before the July public hearing.

If the committee endorses the draft criteria and funding structure staff will hold a public hearing on the amendment in July, then advertise for project proposals with a second master plan amendment and project prioritization expected in early 2027.