1. WWW.NJEIT.ORG NJ Wind Working Group For Terrestrial and Small Wind Systems Where to Build Wind Energy Systems in New Jersey

2. WWW.NJEIT.ORG New Jersey Environmental Infrastructure Trust Frank Scangarella Chief Operating Officer

3. WWW.NJEIT.ORG 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

4. WWW.NJEIT.ORG New Jersey Environmental Infrastructure Financing Program Financing Program NJEIT / NJDEP Partnership

5. WWW.NJEIT.ORG Eligible Borrowers  Local Government Units  Water Utilities  Private Entities (conduit loans)  Local Government Units  Water Utilities  Private Entities (conduit loans)

6. WWW.NJEIT.ORG 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

7. WWW.NJEIT.ORG 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

8. WWW.NJEIT.ORG Loan Terms  Rate = 25% market rate  Term = 20 years  Rate = 25% market rate  Term = 20 years

9. WWW.NJEIT.ORG 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

10. WWW.NJEIT.ORG State and Trust Fees  DEP origination: 2.0% of Total  Trust closing: 0.1% of Trust  Trust admin: 0.3% of Trust

11. WWW.NJEIT.ORG 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

12. Other Products WWW.NJEIT.ORG  Interim Financing Loans  Supplemental Loans  Planning Loans  Emergency Loans  Onsite Wastewater Loans (Pilot 2010)

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

14. WWW.NJEIT.ORG 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?

15. WWW.NJEIT.ORG 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

16. Questions? Website: www.njeit.org fscangarella@njeit.org 609-219-8600