N.J. Admin. Code § 7:1A-3.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:1A-3.2 - Priority determination

(a) Each project shall be assigned priority points in accordance with the provisions outlined in this section. A project shall be ranked by the number of priority points it receives.

1. A water supply system serving less than or equal to 10,000 residents shall be eligible for a loan if it receives at least eight priority points.

2. A water supply system serving between 10,001 and 50,000 residents shall be eligible for a loan if it receives at least twelve priority points.

3. A water supply system serving greater than 50,000 residents shall be eligible for a loan if it receives at least 16 priority points.

4. In the instance of systems with a large seasonal variation in the number of residents, the residential population figure utilized for the purpose of this section shall be the mean of the greater and twice the lower residential population as determined by data deemed acceptable to the Department for the most recent calendar year.

5. If in any application period there shall be less eligible projects than funds available for any of the three size categories, the eligible projects shall only be required to receive the minimum number of priority points set forth in (a)1 through 3 above and the remainder of the competitive priority ranking provisions of this section shall be waived.

(b) All applications must also meet the criteria set forth in N.J.A.C. 7:1A-3.1 to be eligible for a loan.

(c) Three separate priority lists shall be established in each application period according to the size of the water supply system as set forth in this section. Appropriations for each of the three separate priority lists shall be determined as a percentage of the total periodic appropriations by the Legislature to the Department for the purpose of implementing this chapter.

1. Thirty percent of the total Department appropriation for the purposes of implementing this regulation shall be appropriated for those eligible water supply systems that serve less than or equal to 10,000 residents.

2. Thirty percent of the total Department appropriation for the purposes of implementing this regulation shall be appropriated for those eligible water supply systems that serve between 10,001 through 50,000 residents; and

3. Forty percent of the total Department appropriation for the purposes of implementing this regulation shall be appropriated for those eligible water supply systems that serve greater than 50,000 residents.

(d) If in any application period there are an insufficient number of eligible projects on any of the three separate priority lists, the funds designated for said category shall be disbursed to eligible projects on the other priority lists in the same proportions as set forth in (c) above.

(e) A maximum loan amount for each project shall be set for each of the three categories of projects as follows:

1. A water supply system serving less than or equal to 10,000 residents may receive a loan of up to two million dollars maximum;

2. A water supply system serving between 10,001 and 50,000 residents may receive a loan of up to three million dollars maximum;

3. A water supply system serving greater than 50,000 residents may receive a loan of up to eight million dollars maximum;

4. Any loan funds appropriated for a project in excess of the actual costs spent for the completed project shall be returned to the Water Supply Fund created pursuant to the Act within 30 days of final payment to the borrower by the Department.

(f) Priority points for transmission facilities shall be given for the following factors and in the amount shown below:

1. A local unit shall receive priority points listed in priority categories set forth in (f)2, 3, 4, 5, 6 and 9 below only if the project scope includes the actual repair, rehabilitation, or correction of a problem item clearly related to said priority categories.

2. Priority points shall be awarded for the age of transmission lines and appurtenances, including interconnections and surge tanks to be rehabilitated.

i. Two points shall be awarded for transmission lines and appurtenances constructed between the years 1981 through 1985;

ii. Four points shall be awarded for transmission lines and appurtenances constructed between the years 1966 through 1980;

iii. Eight points shall be awarded for transmission lines and appurtenances constructed between the years 1941 through 1965;

iv. Twelve points shall be awarded for transmission lines and appurtenances constructed between the years 1916 through 1940; and

v. Sixteen points shall be awarded for transmission lines and appurtenances constructed in or before the year 1915.

3. The local unit shall be required to submit justification to the satisfaction of the Department before priority points are awarded under priority categories (f)4 and 5 below. The justification may consist of, but not be limited to, a technical analysis, a professional certification, unresolved Departmental administrative orders, unresolved Departmental directive letters, verifiable system failures and malfunctions, or other justifications as deemed acceptable by the Department.

4. Priority points shall be awarded, subject to (f)3 above, for the age of the pump station(s) to be rehabilitated.

i. Two points shall be awarded for each pump station constructed between the year 1975 through 1980;

ii. Four points shall be awarded for each pump station constructed between the year 1970 through 1974;

iii. Eight points shall be awarded for each pump station constructed between the year 1965 through 1969; and

iv. Twelve points shall be awarded for each pump station constructed before the year 1965.

5. Priority points shall be awarded, subject to (f)3 above, for the age of storage tank(s) to be rehabilitated.

i. Two points shall be awarded for each storage tank constructed between the year 1975 through 1980;

ii. Four points shall be awarded for each storage tank constructed between the year 1970 through 1974;

iii. Eight points shall be awarded for each storage tank constructed between the year 1965 through 1969; and

iv. Twelve points shall be awarded for each storage tank constructed before the year 1965.

6. In the instance where the project scope includes rehabilitation of different items, items of different ages, or both, the total points awarded under priority categories in (f)1 through 5 above shall be the weighted average in accordance with the capital value (as defined at N.J.A.C. 7:1A-2.2 ) associated with each item.

As an example see Table 1 below:

Click here to view image.

i. The points awarded above shall be rounded to the nearest whole number. In the example above, 7 priority points would be awarded.

7. Priority points shall be awarded for the percentage of the present daily demand of the local unit's water supply system that can be augmented from usable interconnections with other water systems. The present daily demand for the local unit's service area shall be calculated by totaling the daily water supply demand over a one year period ending in the month of the submission of the local unit's rehabilitation loan application and dividing this sum by 365.

i. One point shall be awarded for a system having usable interconnections that can augment between 71 through 80 percent of the present daily demand for the service area;

ii. Two points shall be awarded for a system having usable interconnections that can augment between 61 through 70 percent of the present daily demand for the service area;

iii. Three points shall be awarded for a system having usable interconnections that can augment between 41 through 60 percent of the present daily demand for the service area;

iv. Four points shall be awarded for a system having usable interconnections that can augment between 21 through 40 percent of the present daily demand for the service area;

v. Five points shall be awarded for a system having usable interconnections that can augment less than or equal to 20 percent of the present daily demand for the service area;

vi. Six points shall be awarded for a system having no usable interconnections with any other water supply system.

8. Priority points shall be awarded to systems serving a greater number of residents in proportion to net water usage. The net water usage shall be calculated by subtracting the unaccounted for water usage from the present daily demand, as calculated in (f)9 below. In the instance of systems with a large seasonal variation in the number of residents, the residential population figure shall be determined pursuant to this section.

i. 70 gallons per capita per day or less: 12 points

ii. 71-90 gallons per capita per day: 10 points

iii. 91-100 gallons per capita per day: 8 points

iv. 101-130 gallons per capita per day: 6 points

v. 131-154 gallons per capita per day: 4 points

vi. 155 or more gallons per capita per day: 2 points

9. Priority points shall be awarded for the leakage and other unaccountable water losses from the transmission system to be eliminated as part of the eligible project scope which shall be expressed as a percentage of the present daily demand, as calculated in (f)7 above.

i. Two points shall be awarded for the elimination of water losses of between 1 through 2 percent of the present daily demand included as part of the eligible project scope.

ii. Seven points shall be awarded for the elimination of water losses of between 3 through 5 percent of the present daily demand included as a part of the eligible project scope.

iii. Twelve points shall be awarded for the elimination of water losses of between 6 through 8 percent of the present daily demand included as a part of the eligible project scope.

iv. Fourteen points shall be awarded for the elimination of water losses of between 9 through 11 percent of the present daily demand included as a part of the eligible project scope.

v. Sixteen points shall be awarded for the elimination of water losses of between 12 through 15 percent of the present daily demand included as a part of the eligible project scope.

vi. Eighteen points shall be awarded for the elimination of water losses of between 16 through 20 percent of the present daily demand included as a part of the eligible project scope.

vii. Twenty points shall be awarded for the elimination of water losses of 21 percent or more of the present daily demand included as a part of the eligible project scope.

10. Priority points shall be awarded to each application for its cost effectiveness as compared to all the other applications within each of the population size categories specified in this section. The cost effectiveness of each project shall be expressed as gallons per day estimated to be saved per thousand dollars of estimated construction cost of the transmission facilities for which points are assigned under this subsection. Mean cost effectiveness for each population size category will be estimated by dividing total estimated water savings within the category by the corresponding total estimated construction cost of the transmission facilities for which points are assigned under this subsection. Priority points will then be awarded in accordance with the following:

i. Cost Savings: Fifty percent or more above the mean: 30 points

ii. Cost Savings: Thirty percent or more above the mean: 25 points

iii. Cost Savings: Ten percent or more above the mean: 20 points

iv. Cost Savings: Within ten percent of the mean: 15 points

v. Cost Savings: Ten percent or more below the mean: 10 points

vi. Cost Savings: Thirty percent or more below the mean: 5 points

vii. Cost Savings: Fifty percent or more below the mean: 0 points

viii. An example see Table 2 below:

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(g) Total priority points shall be determined by totaling all the points awarded a local unit by (f) above. In the event of a tie, the applicants shall be ranked in the order of receipt of the loan application by the Department.

(h) The Department shall establish and maintain a separate priority list for each application period for each of the size groups as set forth in this section in accordance with the number of priority points awarded each project pursuant to this section.

N.J. Admin. Code § 7:1A-3.2

R.1982 d.281, effective 8/16/1982.
See: 14 N.J.R. 499(c), 14 N.J.R. 915(a).
As amended, R.1983 d.534, effective 11/21/1983.
See: 15 N.J.R. 1307(a), 15 N.J.R. 1940(a).
(a)-(e): 50,000 residents was 75,000. (a)5 added; (c), (d), (h), (j), and (m): "application period" was "program year" or "year"; (c)2 and 3: "Thirty Percent" was forty and "Forty percent" was thirty; (f)9i-vii: all percentages lowered; (k): "Intent to Award" made "Notice of Intent to Award"; (k)2 added.
As amended, R.1984 d.232, effective 6/18/1984.
See: 16 N.J.R. 631(a), 16 N.J.R. 1479(a).
"Priority determination" was formerly codified at N.J.A.C. 7:1A-2.12, (i)-(m) of the original text is now found at N.J.A.C.
7:1A-2.11, "Notice of intent", as (a)-(e).
(b): reference was N.J.A.C. 7:1A-2.3; (f)6: in second sentence, "existing item" was "item".
Amended by R.1992 d.252, effective 6/15/1992.
See: 24 N.J.R. 707(a), 24 N.J.R. 2245(a).
The age categories accompanying the priority point values for water supply rehabilitation loans have been updated by 10 years because 10 years have elapsed since the passage of the 1981 Bond Act and the original formulation of these categories.
Amended by R.1997 d.223, effective 5/19/1997.
See: 29 N.J.R. 7(a), 29 N.J.R. 2268(a).
In (a)3, changed priority points from "twenty" to "16"; in (e)1, (e)2, and (e)3, increased maximum loan amounts; in (e)4, substituted "payment to the borrower" for "inspection of the project"; in (f), inserted "for transmission facilities"; in (f)2, (f)4, and (f)5, changed relevant construction dates; in (f)6, inserted N.J.A.C. reference, deleted the definition of capital value, changed the date ranges in the age subcategory column in Table 1, and made a nonsubstantive change; in (f)10 and in column headings of Table 2, substituted references to construction cost for references to loan amount.; and in (g), added the last sentence.