N.J. Admin. Code § 7:1A-8.2

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

Section 7:1A-8.2 - 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 12 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; and

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 shall also meet the criteria set forth in N.J.A.C. 7:1A-8.1 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 shall be given for treatment facilities 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)3 through 6 below only if the project scope includes actual repair, rehabilitation, correction of a problem, or improvement clearly related to said priority categories.

2. The local unit shall be required to submit justification to the satisfaction of the Department before priority points are awarded under priority categories (f)3 through 6 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, evidence of verifiable system failures and malfunctions, or other justifications as deemed acceptable by the Department.

3. Priority points shall be awarded to systems which are in violation of any safe drinking water standards or treatment requirements set by the Act, as follows:

i. Five hundred points shall be awarded for local units which:

(1) Use a surface water source(s);

(2) Do not provide any or adequate filtration treatment; and

(3) Have been issued an administrative order, directive or recommendation by the Department requiring the correction of any noncompliance of its treatment facilities to address an immediate public health threat, provided that the local unit's project scope provides for the implementation of the actions ordered, directed or recommended by the Department in such relevant administrative order, directive or recommendation letter. An immediate public health threat includes any acute violations, or noncompliance with any disinfection or filtration requirements under N.J.A.C. 7:10-9, Surface Water Treatment Requirements.

ii. Three hundred fifty points shall be awarded for local units which:

(1) Use a ground water source(s) under the direct influence of surface water;

(2) Do not provide any or adequate filtration treatment; and

iii. One hundred seventy-five points shall be awarded for any primary violations or exceedances of action levels;

iv. Twenty-five points shall be awarded for any secondary violations, for which the local unit has received notification issued by the Department that exceedance of any secondary drinking water regulation causes adverse effects on the public welfare, and for which the local unit has received a directive issued by the Department requiring correction of the exceedance.

4. Priority points shall be awarded based on the impact on the local unit's available water supply of the violations in (f)3 above, as indicated below:

i. The rated pump capacity affected by the violation specified in (f)3 above divided by the total rated system capacity (including wells, surface water, and bulk purchase interconnections) multiplied by 50.

5. Priority points shall be awarded for the age of treatment units to be rehabilitated:

i. Two points shall be awarded to treatment units constructed between the years 1981 through 1985;

ii. Four points shall be awarded to treatment units constructed between the years 1966 through 1980;

iii. Eight points shall be awarded to treatment units constructed between the years 1941 through 1965;

iv. Twelve points shall be awarded to treatment units constructed between the years 1916 through 1940; and

v. Sixteen points shall be awarded to treatment units constructed in or before the year 1915.

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)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 3 below:

Click here to view image.

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

(g) Additional priority points shall be given for treatment facilities for the following factors and in the amount shown below:

1. 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; and

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

2. 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 (g)1 above. In the instance of systems with a large seasonal variation in the number of residents, the residential population figure shall be determined pursuant to (a)4 above.

i. Seventy gallons per capita per day or less: 12 points;

ii. Seventy-one to 90 gallons per capita per day: 10 points;

iii. Ninety-one to 100 gallons per capita per day: eight points;

iv. One hundred one to 130 gallons per capita per day: six points;

v. One hundred thirty-one to 154 gallons per capita per day: four points; and

vi. One hundred fifty-five or more gallons per capita per day: two points.

(h) For ranking purposes, the total priority score shall be the sum of points awarded for each of the three categories at (f) and (g) above as applicable. In the event of a tie, the applicant shall be ranked in the order of receipt of the loan application by the Department.

N.J. Admin. Code § 7:1A-8.2