N.J. Admin. Code § 7:26-15.6

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

Section 7:26-15.6 - Application and award procedures for Recycling Business Loans

(a) This portion of the Act shall be administered jointly by the Department and the EDA.

(b) Eligible applicants for Recycling Business Loans shall be limited to recycling businesses and industries located in or planning to locate in New Jersey which are engaged in converting recyclables into a raw material, other than energy, processing recyclables to meet final use specifications, or separating commingled recyclables for resale to a market. Applicants shall conform to all restrictions, prohibitions, and obligations of the Act, applicable EDA regulations and guidelines, and all other relevant acts as set forth therein and in this subchapter.

(c) Applications may be made at such times as announced and on such forms as provided by the Department and shall be submitted in triplicate to:

New Jersey Department of Environmental Protection

Division of Sustainable Waste Management

Bureau of Solid Waste Planning and Licensing

Mail Code 401-02C

PO Box 420

401 East State Street

Trenton, New Jersey 08625-0420

(d) Loans and loan guarantees may be used for the creation or expansion of any legitimate commercial activity involved with the collection, separation, transportation, processing or conversion of recyclable materials as determined by the Department and EDA.

(e) Loans and loan guarantees shall be awarded in accordance with such terms and conditions as set forth by the Department and EDA. No single applicant or project may receive a loan or loan guarantee for less than $ 50,000 or for more than $ 500,000. The maximum may be exceeded for certain projects which are deemed necessary by the Department in order to reach the State's recycling goals set forth in the State Solid Waste Management Plan Update: 1993-2000 (Update).

(f) Loans and loan guarantees shall be awarded on a competitive basis.

1. The application shall demonstrate, at a minimum, that:

i. The project promotes the goals and objectives set forth in the State Recycling Plan and applicable district solid waste management plans;

ii. All necessary permits have been obtained or applied for;

iii. The goals, objectives and implementation strategy of the project are clearly stated;

iv. The type, quantity and value of recyclable material to be recovered by the project are reasonable in relation to the investment required;

v. The applicant is able to repay the loan;

vi. The applicant has previous experience in recycling;

vii. The applicant has the ability to manage the project;

viii. The project substantially increases the quantity of recyclable material removal from the waste stream for recycling; and

ix. Only source separated recyclable materials will be received, stored, processed or transferred at the facility.

(g) Applications shall be made on forms provided by the Department and EDA and shall include, but not be limited to, the following:

1. The name and address of the applicant;

2. The names and addresses of the applicant's principal owners and officers;

3. A detailed project cost breakdown explaining how the funds will be incorporated in the total budget for the entire project; and

4. A description of the type and quality of material to be recycled as a result of the loan or loan guarantee;

(h) The Department shall deny an application for a low-interest recycling business loan if the applicant:

1. Does not submit information required pursuant to (f) above;

2. Does not correct any deficiencies in information submitted pursuant to (f) above within 60 days of receipt of a letter specifying such deficiencies;

3. Does not submit the appropriate fee;

4. Has been denied a license or permit by the Department pursuant to this chapter;

5. Has violated any environmental protection law or regulation, civil or criminal, of this State or any other state or any Federal environmental protection law or regulation, civil or criminal; or

6. Fails to comply with any lawful order of the State.

(i) Applicants receiving loans or loan guarantees shall file an annual status report with the Departments for as long as the loan is outstanding, describing the progress being made towards the goals and objectives set forth in the application.

(j) The loan maturity period shall be for a period not to exceed 10 years. The interest rate on each loan when issued shall be established at three points below the prime rate, but in no case shall be less than five percent.

(k) The applicant for the loan or loan guarantee shall pay the following fees:

1. Loan Application Review--$ 125.00 per application, payable at the time of the application.

2. Loan Closing and Technical Review--$ 1,441 per loan, payable at closing.

3. Loan Management--$ 626.00 per loan, payable at the time of closing.

4. Closing fee--$ 600.00 per loan, payable at time of closing.

N.J. Admin. Code § 7:26-15.6

Amended by 47 N.J.R. 991(a), effective 5/18/2015.

Administrative Change, 55 N.J.R. 1922(b), effective 7/31/2023