State Agencies Shape Infrastructure Programs to Address 21st Century Challenges

July 11th, 2022 by Chris Sturm

Plenary session, “Addressing Key Redevelopment Challenges and How New Federal Funding Will Help Us Get There” during the New Jersey Future and APA-NJ New Jersey Planning and Redevelopment Conference 2022 at the Hyatt Regency, New Brunswick on June 16, 2022. Photo Credit: Keith Muccilli

Communities Advised to Prepare Now to Access Funds

With a record state surplus and billions of dollars of federal funding from the Infrastructure Investment and Jobs Act (IIJA), New Jersey communities enjoy a rare opportunity to address redevelopment challenges, explained Peter Kasabach, New Jersey Future’s executive director. But a “lack of readiness” will be their biggest obstacle to accessing those funds, asserted New Jersey Department of Environmental Protection (NJDEP) Commissioner Shawn LaTourette. He and co-panelists Preethy Thangaraj, policy advisor to Governor Murphy, and Tim Sullivan, CEO of the state’s Economic Development Authority, each described their various approaches to harnessing the new federal funds at the 2022 NJ Planning and Redevelopment Conference plenary session, Addressing Key Redevelopment Challenges and How New Federal Funding Will Help Us Get There.

Local officials can look to the Governor’s Office for information and guidance on new federally-funded programs, according to Preethy Thangaraj. A soon-to-be-launched website will act as a central source for IIJA opportunities, including $2.5 billion in discretionary grant opportunities for transportation, water, broadband and green and complete street projects. Newly appointed Infrastructure Coordinator Richard Sun is connecting locals with state agency staff who can help them apply for funds.

Tim Sullivan noted that the bulk of IIJA funding for New Jersey will come to the state through the federal Surface Transportation Reauthorization Act. The remainder is dedicated to water, energy, and broadband infrastructure, with some monies for workforce development. Together with the state’s share of funding from the federal American Rescue Plan, Sullivan argued that these monies could enable the state to completely finish work on certain issues such as lead in drinking water, so “kids don’t need to drink that water ever again.”

Can IIJA funds help the government focus on the future and prepare for rising sea levels and more extreme precipitation? Commissioner LaTourette explained that the NJDEP will use the new funding to change the “mechanics” of modernizing infrastructure by coordinating it with forthcoming interagency climate action plans, updated flood rules, and new spending programs. NJDEP’s share of IIJA funds will go to two areas: long-term flood protection projects for “worst-case scenarios” and local water infrastructure projects that address day-to-day concerns. The agency will funnel $1 billion for water infrastructure projects through the state’s Water Bank as it simultaneously pushes to right-size the state’s share of national water infrastructure funding.

Latourette acknowledged that the Water Bank program “shuts out” some of the communities that are the most in need, so his agency plans to engage engineers and grassroots leaders to help them successfully apply for funding. The department has also formed a Community Investment and Economic Revitalization Program to make opportunities for state-local partnership opportunities clear and available, which includes the agency’s Community Collaborative Initiative program. He added that in the next few weeks the NJDEP would announce grant programs for towns to pursue the creation of stormwater utilities.

Tim Sullivan highlighted three new EDA funding programs that seek to encourage resilient, compact growth and redevelopment:

Aspire, a gap financing tool for real estate development projects.
The Historic Property Reinvestment Program, a $50 million competitive tax credit program
The Brownfields Impact Fund

EDA will receive some IIJA funding for brownfields grants and port infrastructure for off-shore wind in South Jersey. In addition, the governor’s proposed budget provides $25 million for transit-oriented development, $300 million for affordable housing, and funding to integrate climate resilience into the State Development and Redevelopment Plan.

When asked how the state will employ IIJA funds to support historically overburdened communities, Preethy Thangaraj explained that investments will center on policy imperatives in the state’s Environmental Justice Law. For example, the NJDEP map of overburdened communities will be used as a tool to prioritize investments, and the Governor’s Office will rate projects using an equity and sustainability index.

Deploying federal infrastructure dollars in New Jersey will be a team effort between proactive local governments and well-organized state agencies. Communities should prepare now by hiring grant writers to apply for funding and then planners, engineers and architects to design projects and manage construction. The benefit: infrastructure and redevelopment that is ready for growing challenges like climate change.