N.J. Admin. Code § 7:22-4.11

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:22-4.11 - Application procedures

(a) Each application for a Trust loan shall be submitted to the trust in conformance with the time period specified in the Proposed Priority System, Intended Use Plan and Project Priority List or otherwise extended by the Trust and must include full and complete documentation and any supplementary materials that the Trust requires an applicant to furnish.

(b) Submissions which do not substantially comply with this subchapter shall not be processed further and the applicant shall be so advised.

(c) Processing of a Trust loan application generally requires 60 calendar days after receipt of a complete application by the Trust.

(d) The following must be submitted when applying for a Trust loan, as applicable:

1. An application (Form LP-2) for a Trust loan pursuant to this subchapter for the construction of environmental infrastructure facilities. Each application constitutes an agreement to accept the requirements of this subchapter;

2. If the applicant is a local government unit, a resolution passed by the local government unit authorizing the filing of an application for a Trust loan and specifying the individual authorized to sign the Trust loan application on behalf of the local government unit. If the applicant is a private entity, a letter from the private entity authorizing the filing of an application and specifying the individual authorized to represent the private entity, as well as evidence of ownership of the water supply system. If two or more project sponsors are involved in the project, a resolution or letter indicating the lead applicant and the authorized representative is required from each;

3. Statement of Assurances (Form LP-3) from each applicant and, if the applicant is a local government unit, an executed Professional Services Affidavit (Form LP-11) for each person or firm whose professional services have been procured by the local government unit for the project for which cost reimbursement will be sought under this chapter. If the professional services for which cost reimbursement will be sought under this chapter have not been procured at the time of loan application, submittal by the local government unit of a letter of commitment to comply with the requirements of the Professional Services Affidavit, and to submit a copy of the executed Professional Services Affidavit to the Trust immediately upon execution of the contract for the professional services, will satisfy this requirement. Submittal of the executed Professional Services Affidavit or letter of commitment is a requirement of the application process so that the Trust will have written confirmation from the local government unit that it has procured or will procure any necessary professional services in conformance with the procurement requirements of the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) or other applicable procurement method authorized under State law and the local government unit has reviewed or will review the proposed costs and activities and finds them acceptable. This Professional Services Affidavit requirement does not apply to professional services obtained for those planning and design activities which are covered through an allowance in accordance with N.J.A.C. 7:22-5.12 or to professional services obtained by private entities;

4. Assurance of compliance with the civil rights requirements of Title VI of the Civil Rights Act of 1964 ( P.L. 88-352) and the New Jersey Law Against Discrimination (N.J.S.A. 10:5-1 et seq.) (Form LP-4);

5. A complete Project Report/Facilities Plan, which must include:

i. For all environmental infrastructure facilities, the following items must be submitted:

(1) Appropriate documentation demonstrating compliance with the Environmental Assessment Requirements for State Assisted Environmental Infrastructure Facilities (N.J.A.C. 7:22-10); and

(2) For the selected alternative, a concise description, at an appropriate level of detail, of at least the following:

(A) Relevant preliminary engineering parameters, including a description of the environmental infrastructure facilities to be built, schematic flow diagrams, hydraulic profiles and preliminary design criteria;

(B) Cost impacts on system users; and

(C) Institutional and management arrangements necessary for successful implementation, such as service agreements, local ordinances, interagency agreements or intermunicipal agreements;

ii. For wastewater treatment and stormwater management facilities, a statement of consistency with the appropriate Water Quality Management Plans in accordance with the provisions of N.J.A.C. 7:15. For wastewater treatment facilities, a description of the Best Practicable Wastewater Treatment Technology or, for stormwater management facilities, a description of the Best Management Practices that will be utilized;

iii. For wastewater treatment, water supply and stormwater management facilities permitted as a municipal separate storm sewer system, an analysis that includes:

(1) For wastewater treatment facilities, an evaluation of flow reduction methods. If the applicant demonstrates that the existing average daily base flow (ADBF) from the area is less than 70 gallons per capita per day (gpcd), or if the Department determines the area has an effective existing flow reduction program, this evaluation is not required;

(2) A description of the relationship between the cost, environmental benefit and capacity of alternatives analyzed and the needs to be served, including capacity for future growth expected after the environmental infrastructure facilities become operational. This includes letters of intent from significant industrial or commercial users and all establishments intending to increase their wastewater flows or water supply demand or relocate in the area documenting capacity needs and characteristics for existing or projected wastewater flows or water supply demand;

(3) An evaluation of the alternative methods for the reuse or ultimate disposal of treated wastewater and sludge material resulting from the treatment process; and

(4) Cost information on total capital costs, and annual operation, maintenance and replacement costs, as well as estimated annual or monthly costs to residential, commercial and industrial users;

iv. For wastewater treatment facilities, an infiltration/inflow analysis of the sewer system in accordance with N.J.A.C. 7:22-4.35, or for water supply facilities, an analysis of the amount of water withdrawn at the source(s) and not accounted for as being delivered to customers in measured amounts;

v. For land acquisition and conservation projects, the following items must be submitted:

(1) An evaluation of the land to be acquired, including the water quality basis for the proposed land acquisition that addresses the existing land use patterns, potential threats to water quality, and other existing problems and appropriate documentation demonstrating compliance with the Environmental Assessment Requirements for State Assisted Environmental Infrastructure Facilities, N.J.A.C. 7:22-10;

(2) An executed purchase agreement or, in the case of condemnation, evidence of the filing of a declaration of taking for the parcel(s);

(3) The appraisal(s) of the parcel(s). For a parcel with an estimated land value of less than $ 250,000, the local government unit shall obtain at least one appraisal. For a parcel with an estimated land value of $ 250,000 or more, two appraisals shall be obtained. For easement acquisitions, appraisals shall be submitted that identify the fair market value of the parcel with and without the conservation restriction. Any appraisals required herein shall be prepared by a real estate appraiser licensed by the State's Division of Consumer Affairs to perform such appraisals; and

(4) A preliminary assessment report or site investigation report prepared under the Technical Requirements for Site Remediation, N.J.A.C. 7:26E, that evaluates the potential contamination of the land to be acquired;

vi. For landfill closure facilities, a copy of the Department's approval of the sanitary landfill's Closure and Post-Closure Plan submitted pursuant to N.J.A.C. 7:26-2A;

vii. For new landfill facilities, a copy of the applicable solid waste facility permit issued pursuant to N.J.A.C. 7:26-2;

viii. For remedial action activities, the following items must also be submitted:

(1) A statement by the applicant whether or not the applicant is currently conducting remediation pursuant to the ISRA or the Underground Storage Tank programs or otherwise conducting a remediation pursuant to the Administrative Requirements for Site Remediation rules, N.J.A.C. 7:26C, including, as applicable, case number, Program Interest number, Known Contaminated Site List number, name and license number of licensed site remediation professional and the name of the Department case manager for the case; and

(2) A copy of the applicable Department approvals issued pursuant to N.J.A.C. 7:26E-6.1(b)1 that identifies remedial actions proposed to be implemented at a contaminated site; and

ix. For well sealing projects, a description of the project area, the well(s) proposed to be sealed and a certification that the method proposed to be used to seal the well(s) complies with N.J.A.C. 7:9D.

6. For sewer rehabilitation projects, a Sewer System Evaluation Survey in accordance with N.J.A.C. 7:22-4.35;

7.Department-approvable plans, specifications and technical design report, including documentation regarding the evaluation of existing site conditions;

8. A description of the public participation process to date. Public participation activities undertaken in connection with the environmental review process should be coordinated with any other applicable public participation program wherever possible;

9. A report on the participation by socially and economically disadvantaged individuals during planning and design as required by N.J.A.C. 7:22-9.12(a);

10. Project cost breakdown for each subagreement;

11. Projected cash flow schedule to be used to establish the Trust loan disbursement schedule;

12. Project construction schedule. A court-sanctioned order or a Department-issued Administrative Consent Order indicating a compliance schedule will be required where applicable;

13.

(Reserved)

14. Certificate (legal opinion) from counsel as to title or mechanism to obtain title necessary for project sites and easements;

15. An affidavit (Form LP-7) certifying that required permits and approvals for building the environmental infrastructure facilities were received from applicable Federal, State and local agencies;

16. A statement from the applicant indicating that it has not violated any Federal, State or local law pertaining to fraud, bribery, graft, kickback, collusion or conflicts of interest relating to or in connection with the planning and design of the project;

17. A statement from the applicant which indicates if it used the services of a person for planning or design of the project whose name appears on the State Treasurer's list of debarments, suspensions and voluntary exclusions;

18. Executed service, joint and/or deficiency or other intermunicipal agreements, if applicable. If the project will serve two or more project sponsors, the applicant shall submit the executed service agreements, contracts or other legally binding instruments necessary for the financing, building and operation of the proposed environmental infrastructure facilities. At a minimum, these documents must include the basis upon which costs are allocated, the formula by which costs are allocated, and the manner in which the cost allocation system will be administered;

19. Draft engineering agreements for building services;

20. A statement by the applicant indicating whether the project sponsor is currently in default on any State loan. A Trust loan agreement will not be executed between the Trust and the project sponsor unless the Trust determines that repayment of the defaulted loan will be received.

21. A description of how the applicant plans to repay the Trust loan and pay any other expenses necessary to fully complete and implement the project, the steps it has taken to implement this plan, and steps it plans to take before receiving the Trust loan that shall guarantee that at the time of the signing of the Trust loan agreement it shall be irrevocably committed to repay the Trust loan and pay any other expenses necessary to fully complete, implement, operate and maintain the project. The description shall include: pro forma projections of the applicant's financial operations during the construction period of the project and five years thereafter; a summary of the sources and uses of all funds anticipated to be used for the project to be financed by the Trust loan; and a statement of the assumptions used in creating these projections. Applicants shall secure all Trust loans in a manner acceptable to the Trust, pledging to provide funds to repay the debt, even if the Trust loan is terminated pursuant to N.J.A.C. 7:22-4.44. Acceptable security arrangements include, but are not limited to, general obligation bonds of the local government unit, service/deficiency agreement(s) with government units with general taxing power, bond insurance, revenue bonds, debt service reserve funds and surety bonds.

22. For water supply facilities, a description of the technical, managerial, and financial capabilities of the public water system. This description shall include, but is not limited to, financial capability to ensure loan repayment, credit analysis of the applicant, compliance with N.J.A.C. 7:10, Safe Drinking Water Act rules, operator licensing in accordance with N.J.A.C. 7:10A, Licensing of Water Supply and Wastewater Treatment Operators, adequacy of infrastructure, and clear ownership of the water system.

23. For water main extension projects, a mandatory connection ordinance acceptable to the Department. In addition, when the Department determines well sealings are necessary to prevent migration of contaminants regulated by the Department under the Safe Drinking Water Act rules (N.J.A.C. 7:10), or the potential exists for contamination from wells that remain unused and not sealed, a mandatory well sealing ordinance acceptable to the Department.

24. Such other information as the Trust may require.

(e) Applicants shall obtain all necessary Federal, State and local permits and approvals prior to the award of a loan unless prior approval for an extension for one or more specific permits has been granted by the Trust that does not significantly affect the loan award. Excluded from prior acquisition are permits and approvals which are impractical to obtain prior to the loan award (for example, road opening permit, blasting permit, etc.).

(f) The Trust shall not accept a recipient's supplemental Trust loan application for increased allowable costs in instances where the low bid building cost is higher than the original Trust loan award unless bids on all project-related contracts have been received.

(g) The Trust shall only accept a recipient's post-construction supplemental Trust loan application if all of the following actions have occurred:

1. The Trust has approved payment requests whose total equals the Trust loan amount, exclusive of payment requests for construction management services related to project start-up and one-year project performance certification;

2. The project's building activities are complete;

3. All applicable administrative and legal appeals have been resolved;

4. All costs related to differing site conditions for which cost reimbursement is sought have been incurred; and

5. All documentation for the costs in (g)4 above has been submitted to the Trust or submitted concurrently with the post-construction supplemental Trust loan application.

N.J. Admin. Code § 7:22-4.11

Amended by R.1988 d.210, effective 5/16/1988.
See: 19 N.J.R. 1600(a), 20 N.J.R. 1076(a).
Deleted old (d)20 and inserted new.
Amended by R.1992 d.42, effective 1/21/1992.
See: 23 N.J.R. 3282(a), 24 N.J.R. 246(a).
Amended to provide greater detail as to the components of a Project Report/Facilities Plan and as to what constitutes a Department-approvable user charge system and sewer use ordinance.
Amended by R.1993 d.242, effective 6/7/1993.
See: 24 N.J.R. 4310(b), 25 N.J.R. 2271(a).
Specifically required to evaluate existing site conditions as a component of their application for a Trust loan; added two new provisions (subsections (f) and (g)) which identify those activities which the recipient and the Trust must complete in order for the Trust to process a recipient's supplemental Trust loan application.
Amended by R.1995 d.494, effective 9/5/1995.
See: 27 N.J.R. 1536(a), 27 N.J.R. 3403(a).
Amended by R.1998 d.407, effective 8/3/1998.
See: 30 N.J.R. 1144(a), 30 N.J.R. 2863(a).
Rewrote (d).
Amended by R.2000 d.284, effective 7/3/2000.
See: 32 N.J.R. 363(a), 32 N.J.R. 2426(b).
In (d), rewrote 4 and 5.
Amended by R.2003 d.401, effective 10/6/2003.
See: 35 N.J.R. 1475(a), 35 N.J.R. 4719(a).
In (d), added a new 23 and recodified former 23 as 24.
Amended by R.2006 d.22, effective 1/3/2006.
See: 37 N.J.R. 2645(a), 38 N.J.R. 139(a).
In (d), rewrote 5; reserved 13; amended 22 to add "compliance with N.J.A.C. 7:10, Safe Drinking Water Act rules," and "clear ownership of the water system" to the items required for the description of capabilities.
Special amendment, R.2009 d.361, effective 11/4/2009 (to expire May 4, 2011).
See: 41 N.J.R. 4467(a).
In (d)5viii(1), substituted "the Administrative Requirements for Site Remediation rules, N.J.A.C. 7:26C" for "an oversight document", and inserted "Program Interest number," and ", name and license number of licensed site remediation professional".
Readoption of special amendment, R.2011 d.251, effective 9/8/2011.
See: 43 N.J.R. 1077(a), 43 N.J.R. 2581(b).
Provisions of R.2009 d.361 readopted without change.