New Jersey Administrative Code
Title 7 - ENVIRONMENTAL PROTECTION
Chapter 1A - WATER SUPPLY LOAN PROGRAMS
Subchapter 5 - WATER SUPPLY REPLACEMENT PROJECTS (TYPE A LOANS AND TYPE B LOANS)
Section 7:1A-5.1 - Eligibility and criteria (Type A and B loans)

Universal Citation: NJ Admin Code 7:1A-5.1

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Any local unit which has received notification from the Water Supply Element of the Department that groundwater supply contamination problems exist within its jurisdiction which adversely affect the potable water service of at least three dwelling units is eligible for a Type A loan, provided it satisfactorily completes the loan application, meets the eligibility criteria set forth in this subchapter, receives the minimum priority score and ranks high enough on the priority list (as applicable) to be funded. The above requirements shall also apply to any municipality, municipally owned public water system or privately owned public water system seeking a Type B loan. To receive a Type A or Type B loan the project shall meet the following criteria to the satisfaction of the Department:

1. The minimum priority score set out in 7:1A-5.2 below.

2. The project shall be designed to relieve the impact caused by contaminated groundwater on existing publicly owned or individually owned residential water supplies.

3. For the purpose of determining a project area, the following criteria shall be considered by the Department:
i. Extent of pollution;

ii. Area of potential migration; and

iii. Aquifer vulnerability.

4. The maximum loan amount for any one project shall be $ 3,000,000. In awarding a water supply loan, the Department may consider project expense and the degree of environmental impact which the project may have. Any applicant may be eligible to apply for one loan in any application period.

5. The project shall not be excessively expensive or cause unacceptably high environmental damage. The maximum loan amount for any one project shall be $ 3,000,000.

6. The project shall not conflict with any other State project nor enforcement proceedings.

7. The application must be accompanied by adequate explanation of how the applicant plans to repay the loan and pay any other expenses necessary to fully complete and implement the project, the steps it has taken to implement this plan and the steps it plans to take before receiving the loan that will guarantee that at the time of the signing of the loan award document it will be irrevocably committed to repay the loan and pay any other expenses necessary to fully complete and implement the project. The applicant must comply with all standard loan provisions of the State of New Jersey.

8. The application documents shall clearly state and document how the loan will accomplish the goal set out in the application.

9. In cases where the project costs exceed the $ 3,000,000 maximum loan amount the application must be accompanied by a detailed financial assessment indicating how the applicant will finance and repay the entire project costs.

(b) A public meeting shall be held and pertinent project information disseminated to the public. The applicant shall be responsible for holding this meeting.

(c) The applicant shall be required to pass or to obtain from the local unit or municipality in which the applicant is located a mandatory connection ordinance prior to issuance of the loan award agreement by the Department. The applicant shall be required to pass or to obtain from the local unit or municipality in which the applicant is located a mandatory well sealing ordinance when in the judgment of the Department such well sealings are necessary to prevent additional migration of contaminants or the potential exists for additional contamination from wells which remain unused and not sealed.

(d) In the event a borrower has received approval for a grant, claim, payment, award or other loans from the State for the same project funded pursuant to this chapter, said payment shall be directly credited towards pre-payment of any outstanding principal and interest of the loan to the extent of payment received. As applicable, the outstanding principal and interest on the water supply loan shall be reduced to the amount received from the borrower and a revised repayment schedule shall be issued by the Department for the remaining maturity period of the loan.

(e) In the event a borrower receives a grant, claim, payment, award, loan or any form of payment from any government agency or receives payment for damages relating to the same project funded pursuant to this chapter, the borrower shall pre-pay, within 30 days of receipt of such grant, claim, award, loan, payment or damage payment, any outstanding principal and interest of the loan to the extent of payment received. As applicable, the outstanding principal and interest on the water supply loan shall be reduced to the amount received from the borrower and a revised payment schedule shall be issued by the Department for the remaining maturity period of the loan.

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