N.J. Admin. Code § 7:22-4.32

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

Section 7:22-4.32 - Preaward costs

(a) The Trust 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 N.J.A.C. 7:22-4.11(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; 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 and the Trust in writing; and the project sponsor has taken all required actions consistent with applicable Internal Revenue Service laws, rules and regulations, and provided evidence of such actions in a manner acceptable to the Trust.

2. The project sponsor has submitted items required at N.J.A.C. 7:22-4.11(d)3 through 19 to the Department and has received the Department's and the Trust'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 (N.J.S.A. 58:27-1 et seq.), the Water Supply Privatization Act (N.J.S.A. 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 Trust 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 the Trust approves any specific documents necessary to adequately evaluate the proposed action, including compliance with (a)1 or 2 above.

(b) If the Trust approves preliminary building activities, such approval is not an actual or implied commitment of Trust loan moneys and the project sponsor proceeds at its own financial risk. Except for interim loans, 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 Trust loan for the project.

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

N.J. Admin. Code § 7:22-4.32

Amended by R.1988 d.210, effective 5/16/1988.
See: 19 N.J.R. 1600(a), 20 N.J.R. 1076(a).
Substantially amended (a)1 and substituted "Trust" for "Department".
Amended by R.1992 d.42, effective 1/21/1992.
See: 23 N.J.R. 3282(a), 24 N.J.R. 246(a).
Cross references: corrected and references made to Priority System and Intended Use Plan.
Amended by R.1993 d.242, effective 6/7/1993.
See: 24 N.J.R. 4310(b), 25 N.J.R. 2271(a).
Amended to allow the top 100 (previously limited to the top 70) projects on the Project Priority List to be considered eligible for preaward approval, also modified to indicate that all items necessary to satisfy Internal Revenue Service requirements must be reviewed by the Trust in order to ensure that the Trust will be able to reimburse these costs under current tax law and documents must be reviewed and approved by the Department and the Trust.
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).
In (a), inserted "in writing" in 1, inserted "the Water Supply Privatization Act" in 2, and inserted "or rehabilitation of transmission facilities" and "substituted "the environmental infrastructure" for "wastewater treatment" in 3; and substituted "project sponsor" for "local government unit" throughout the section.
Amended by R.2002 d.259, effective 8/5/2002.
See: 34 N.J.R. 1373(a), 34 N.J.R. 2803(a).
In (b), added "Except for interim loans," to the beginning of the second sentence.
Amended by R.2006 d.22, effective 1/3/2006.
See: 37 N.J.R. 2645(a), 38 N.J.R. 139(a).
In (a), rewrote the introductory paragraph and 3.