New Jersey Administrative Code
Title 7 - ENVIRONMENTAL PROTECTION
Chapter 1A - WATER SUPPLY LOAN PROGRAMS
Subchapter 3 - REHABILITATION
Section 7:1A-3.2 - Priority determination
Universal Citation: NJ Admin Code 7:1A-3.2
Current through Register Vol. 56, No. 24, December 18, 2024
(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 twelve 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.
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 must also meet the criteria set forth in N.J.A.C. 7:1A-3.1 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 for transmission facilities shall be given 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)2,
3, 4, 5, 6 and 9 below only if the project scope includes the actual repair,
rehabilitation, or correction of a problem item clearly related to said
priority categories.
2. Priority
points shall be awarded for the age of transmission lines and appurtenances,
including interconnections and surge tanks to be rehabilitated.
i. Two points shall be awarded for
transmission lines and appurtenances constructed between the years 1981 through
1985;
ii. Four points shall be
awarded for transmission lines and appurtenances constructed between the years
1966 through 1980;
iii. Eight
points shall be awarded for transmission lines and appurtenances constructed
between the years 1941 through 1965;
iv. Twelve points shall be awarded for
transmission lines and appurtenances constructed between the years 1916 through
1940; and
v. Sixteen points shall
be awarded for transmission lines and appurtenances constructed in or before
the year 1915.
3. The
local unit shall be required to submit justification to the satisfaction of the
Department before priority points are awarded under priority categories (f)4
and 5 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, verifiable
system failures and malfunctions, or other justifications as deemed acceptable
by the Department.
4. Priority
points shall be awarded, subject to (f)3 above, for the age of the pump
station(s) to be rehabilitated.
i. Two points
shall be awarded for each pump station constructed between the year 1975
through 1980;
ii. Four points shall
be awarded for each pump station constructed between the year 1970 through
1974;
iii. Eight points shall be
awarded for each pump station constructed between the year 1965 through 1969;
and
iv. Twelve points shall be
awarded for each pump station constructed before the year 1965.
5. Priority points shall be
awarded, subject to (f)3 above, for the age of storage tank(s) to be
rehabilitated.
i. Two points shall be awarded
for each storage tank constructed between the year 1975 through 1980;
ii. Four points shall be awarded for each
storage tank constructed between the year 1970 through 1974;
iii. Eight points shall be awarded for each
storage tank constructed between the year 1965 through 1969; and
iv. Twelve points shall be awarded for each
storage tank constructed before the year 1965.
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)1 through 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 1 below:
i. The points awarded above shall be rounded
to the nearest whole number. In the example above, 7 priority points would be
awarded.
7. 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;
vi. Six points shall be awarded for a system
having no usable interconnections with any other water supply system.
8. 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
(f)9 below. In the instance of systems with a large seasonal variation in the
number of residents, the residential population figure shall be determined
pursuant to this section.
i. 70 gallons per
capita per day or less: 12 points
ii. 71-90 gallons per capita per day: 10
points
iii. 91-100 gallons per
capita per day: 8 points
iv.
101-130 gallons per capita per day: 6 points
v. 131-154 gallons per capita per day: 4
points
vi. 155 or more gallons per
capita per day: 2 points
9. Priority points shall be awarded for the
leakage and other unaccountable water losses from the transmission system to be
eliminated as part of the eligible project scope which shall be expressed as a
percentage of the present daily demand, as calculated in (f)7 above.
i. Two points shall be awarded for the
elimination of water losses of between 1 through 2 percent of the present daily
demand included as part of the eligible project scope.
ii. Seven points shall be awarded for the
elimination of water losses of between 3 through 5 percent of the present daily
demand included as a part of the eligible project scope.
iii. Twelve points shall be awarded for the
elimination of water losses of between 6 through 8 percent of the present daily
demand included as a part of the eligible project scope.
iv. Fourteen points shall be awarded for the
elimination of water losses of between 9 through 11 percent of the present
daily demand included as a part of the eligible project scope.
v. Sixteen points shall be awarded for the
elimination of water losses of between 12 through 15 percent of the present
daily demand included as a part of the eligible project scope.
vi. Eighteen points shall be awarded for the
elimination of water losses of between 16 through 20 percent of the present
daily demand included as a part of the eligible project scope.
vii. Twenty points shall be awarded for the
elimination of water losses of 21 percent or more of the present daily demand
included as a part of the eligible project scope.
10. Priority points shall be awarded to each
application for its cost effectiveness as compared to all the other
applications within each of the population size categories specified in this
section. The cost effectiveness of each project shall be expressed as gallons
per day estimated to be saved per thousand dollars of estimated construction
cost of the transmission facilities for which points are assigned under this
subsection. Mean cost effectiveness for each population size category will be
estimated by dividing total estimated water savings within the category by the
corresponding total estimated construction cost of the transmission facilities
for which points are assigned under this subsection. Priority points will then
be awarded in accordance with the following:
i. Cost Savings: Fifty percent or more above
the mean: 30 points
ii. Cost
Savings: Thirty percent or more above the mean: 25 points
iii. Cost Savings: Ten percent or more above
the mean: 20 points
iv. Cost
Savings: Within ten percent of the mean: 15 points
v. Cost Savings: Ten percent or more below
the mean: 10 points
vi. Cost
Savings: Thirty percent or more below the mean: 5 points
vii. Cost Savings: Fifty percent or more
below the mean: 0 points
viii. An
example see Table 2 below:
(g) Total priority points shall be determined by totaling all the points awarded a local unit by (f) above. In the event of a tie, the applicants shall be ranked in the order of receipt of the loan application by the Department.
(h) The Department shall establish and maintain a separate priority list for each application period for each of the size groups as set forth in this section in accordance with the number of priority points awarded each project pursuant to this section.
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