N.J. Admin. Code § 7:22-3.32

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

Section 7:22-3.32 - Preaward costs

(a) The Department shall not consider allowable those costs incurred for building activities, including equipment purchases and open space land acquisition performed or undertaken prior to closing the loan for the project, unless the project sponsor has met the requirements as specified in (a)1, 2 or 3, below:

1. The project sponsor has submitted items required at 7:22-3.11(d)3 through 19 to the Department prior to the advertisement of any contract for which cost reimbursement is being sought; the project sponsor has not advertised any contract or any addendum thereto, for which cost reimbursement is being sought, without the authorization to advertise the contracts or any addendum thereto being given by the Department in writing; and the project sponsor has not awarded any contract for which cost reimbursement is being sought without the authorization to award the contracts being given by the Department in writing.

2. The project sponsor has submitted items required at 7:22-3.11(d)3 through 19 to the Department and has received the Department's written approval thereof prior to the issuance of a notice to proceed with building the project and has met the provisions of the New Jersey Wastewater Treatment Privatization Act (58:27-1 et seq.), the Water Supply Privatization Act (58:26-1 et seq.) or other applicable procurement method authorized under State law.

3. In emergencies or instances where delay could result in significant cost increases or significant environmental impairment, the Department may approve certain activities such as procurement of major equipment, sewer replacement or rehabilitation, replacement or rehabilitation of transmission facilities, or building those portions of the environmental infrastructure facilities that are in need of immediate repair. However, advance approval shall not be given until after the Department reviews and approves an environmental assessment and any specific documents necessary to adequately evaluate the proposed action, including compliance with (a)1 or 2 above.

(b) If the Department approves preliminary building activities, such approval is not an actual or implied commitment of Fund loan moneys and the project sponsor proceeds at its own financial risk. The project sponsor shall receive cost reimbursement of approved activities only upon receiving legislative approval in the form of an appropriations act and closing a Fund loan for the project.

(c) Any procurement is subject to the requirements of applicable State law.

N.J. Admin. Code § 7:22-3.32