Passaic Valley Sewerage Commission ("PVSC") recently completed clean water improvements to its wastewater treatment plant that are being financed with approximately $3,218,287 in funds from the NJ Water Bank, a low-rate funding program jointly administered by the DEP and the New Jersey Infrastructure Bank ("I-Bank").

Saltwater flood damage PVSC sustained during Superstorm Sandy required the replacement of the electric cabling, switchgears and the replacement and relocation of motor control centers plantwide to maintain treatment plant operations. The work included furnishing and installing new switchgear, MCCs, electrical panels, conduit wiring, prefabricated electrical houses, foundations, access platforms, and site work.

PVSC originally closed on a short-term I-Bank loan in 2021 as part of the Water Bank's Disaster Relief (known as the Statewide Assistance Infrastructure Loan program ("SAIL")).

The SAIL Program was enacted in the aftermath of Superstorm Sandy, in recognition of the challenges local governments faced in securing funding for recovery projects from multiple federal and state sources. The SAIL Program provides project sponsors with quick access to temporary, low-cost, short-term funding to repair damages incurred during a declared disaster and to improve the resiliency of water systems for future disasters. SAIL loans provide funding assistance to address the immediate cash flow needs either for local match requirement and/or in anticipation of reimbursement through federal grant programs such as those from the Federal Emergency Management Agency ("FEMA"). The I-Bank works closely with the New Jersey Office of Emergency Management and FEMA on behalf of Borrowers to (i) help obtain expedited reimbursement of eligible costs while optimizing the amount recovered, and (ii) provide compliance oversight to mitigate the potential of FEMA funding rejection or future de-obligation.

By financing the project through a SAIL loan, PVSC was able to undertake the project in advance of FEMA reimbursement. PVSC also received $605,226 in principal forgiveness because the project addressed damage sustained during Superstorm Sandy. Total savings from the federal grants, SAIL Program and low cost residual loans, including interest cost savings, is estimated to be $2,262,344 over the 30-year term of the loan or 70% of the project cost, in comparison to PVSC financing the project on its own. This project also created an estimated 38 direct construction jobs.

John Coiro, Mayor of Totawa Borough, one of PVSC's customers, recognized the benefits of the project. "This isn't the kind of project that our community will notice right away, but we appreciate PVSC's dedication to efficiency and the health of the environment. Financing this project strategically through the Water Bank will benefit the community financially over time, which will certainly be noticed by our residents."

This project was designed by PVSC In-house engineering and AECOM and constructed by Tomar Construction, LLC.