NJ Wind Working Group For Terrestrial and Small Wind Systems Where to Build Wind Energy Systems in New Jersey

New Jersey Environmental Infrastructure Trust Frank Scangarella Chief Operating Officer

NJEIT  N.J.S.A. 58:11B-1 et seq.  State Independent Authority  Infrastructure Projects  $4.4 Billion Loans (87 – 2008)  $300 million Loans in 2008  $300+ mil. Redevelop. Loans (past 3yrs)  $1.8 Billion: Borrower Savings  AAA Credit Rating  N.J.S.A. 58:11B-1 et seq.  State Independent Authority  Infrastructure Projects  $4.4 Billion Loans (87 – 2008)  $300 million Loans in 2008  $300+ mil. Redevelop. Loans (past 3yrs)  $1.8 Billion: Borrower Savings  AAA Credit Rating

New Jersey Environmental Infrastructure Financing Program Financing Program NJEIT / NJDEP Partnership

Eligible Borrowers  Local Government Units  Water Utilities  Private Entities (conduit loans)  Local Government Units  Water Utilities  Private Entities (conduit loans)

Eligible Projects  Sewage Treatment System Improvements  Storm water Improvements  Drinking Water Projects  Land and landfill closure  Remediation  Green Technology  Sewage Treatment System Improvements  Storm water Improvements  Drinking Water Projects  Land and landfill closure  Remediation  Green Technology

Wind Projects Must Power a CW/ DW Activity  Bayonne MUA  Bayshore RSA  Ocean Gate  Sparta Must Power a CW/ DW Activity  Bayonne MUA  Bayshore RSA  Ocean Gate  Sparta

Loan Terms  Rate = 25% market rate  Term = 20 years  Rate = 25% market rate  Term = 20 years

Other Incentives  Pooled Cost of Issuance  Capitalized interest (during construction)  Natural AAA rating  Level Debt Repayment  No Arbitrage concerns  Shepherd projects  Creative Financings  Pooled Cost of Issuance  Capitalized interest (during construction)  Natural AAA rating  Level Debt Repayment  No Arbitrage concerns  Shepherd projects  Creative Financings

State and Trust Fees  DEP origination: 2.0% of Total  Trust closing: 0.1% of Trust  Trust admin: 0.3% of Trust

ChallengesChallenges  Local Political Will  Borrower’s Corporate Form  Loan Guarantee (credit)  Bonding Capacity  State approval (LFB)  Official Approval (Bond ordinance)  Project Review Process  DEP’s Review of all projects  Funding  Local Political Will  Borrower’s Corporate Form  Loan Guarantee (credit)  Bonding Capacity  State approval (LFB)  Official Approval (Bond ordinance)  Project Review Process  DEP’s Review of all projects  Funding

Other Products  Interim Financing Loans  Supplemental Loans  Planning Loans  Emergency Loans  Onsite Wastewater Loans (Pilot 2010)

Commitment/PlanningCommitment/Planning FinancialsFinancials LFB/BPU Approval CertificationCertification EscrowEscrow SaleSale $$ Design/ApplicationDesign/Application Steps to Financing Prelim. meeting

The American Recovery and Reinvestment Act of 2009 (ARRA)  No new applications  Structure: 75% no interest & 25% Market Rate  Principal Forgiveness (50%)  Loan cap  Total 08 loans: $270 million  55+ Projects  No land, redevelopment  2010?

Loans - Preliminary Steps 1. October 3, 2009 Initial Submission Package Initial Submission Package Planning Documents Planning Documents Pre-Planning Meeting Pre-Planning Meeting Start Permitting Processes Start Permitting Processes 2. March 1, 2010 Loan Application Loan Application Design Documents Design Documents Permits Permits

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