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-5.2 - Priority determination (Type A and B loans)

Universal Citation: NJ Admin Code 7:1A-5.2

Current through Register Vol. 56, No. 18, September 16, 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, with those projects scoring the higher points preferred for funding. No project shall be assigned priority points until the project area has been defined to the satisfaction of the Department; the most cost-effective water supply replacement project, project scope, and cost have been identified; and complete priority information has been submitted.

(b) In order to be considered for funding, a project shall receive a minimum score of 50 priority points. Projects which receive a minimum score of 130 points will be considered "exigent" and will be processed for funding and the remainder of the competitive priority ranking provisions shall be waived except as noted in 7:1A-5.2(c). Upon determination that a project is exigent and sufficient funds are available, the Department shall notify the applicant of eligibility for project funding.

(c) In cases where a project classified "exigent" has been issued a notification of eligibility and processed for award but a notice of intent has not been issued and another project application is received and determined to have higher priority, and sufficient funds are not available to fund all priority ranked "exigent" projects, the project of higher exigency will commence processing for funding. In cases where a project attains "exigent" standing but sufficient loan funds are not available to cover the full requested project costs, the Department may by-pass the project to fund another "exigent" status project for which sufficient funds are available. Exigent projects for which sufficient funds are not available shall be withheld and immediately ranked and processed upon availability of funds.

(d) Projects which receive the minimum priority score but do not obtain "exigent" status will be held for the next competitive ranking determination. This determination will be made twice yearly, on January 2 and July 5, respectively, or the first working day thereafter unless extended as provided by 7:1A-2.4. Upon completion of the above semi-annual ranking and upon a determination that sufficient funds are available for a non-exigent project, the Department shall notify the applicant of eligibility of the project for funding. In such cases, if a Notice of Intent to Award has not been issued and a project determined to be of higher priority is received and sufficient loan funds are not available to cover all requested project costs, the Department may by-pass the project to fund another non-exigent project for which sufficient funds are available. In such cases where sufficient funds are not available to fund a non-exigent project either upon completion of the semi-annual priority ranking or upon withholding of the project due to receipt of an exigent project, the non-exigent project shall be withheld until the next semi-annual priority ranking.

(e) Any appropriation not committed by a notice of intent to award, or released by a recalled Notice of Intent to Award, or by failure of applicant to execute loan documents within the prescribed period, or through termination of the project shall be carried over and added to the next application period.

(f) Priority points for water supply replacement projects to address nonpublic wells with contamination problems shall be awarded based on the three factors of severity, public hardship, and population served, as indicated below:

1. The total number of dwelling units that will be serviced with potable water by the project will be calculated. The percentage of all dwelling units tested as part of a sampling program approved by the Department that have confirmed levels of contaminants in excess of the maximum contaminant level (M.C.L.) will be calculated. The percentage of all dwelling units tested as a part of a sampling program approved by the Department that have confirmed levels of contaminants above twice the M.C.L. value will also be calculated.
i. The percentage of all dwelling units to be serviced that at present are not above M.C.L. standards but can reasonably be expected to exceed that standard through continued contaminant movement, will be calculated. These three calculated percentages will be summed and the numerical value of the total will be equal to the points awarded for severity.

ii. The Federal or State standard for contaminants, whichever is lower, shall apply.

iii. For contaminants not included in the primary drinking water regulations or in (f)1.ii above, the Department may, at its discretion, set a standard for the purposes of this chapter based upon a finding that said standard is necessary for the protection of the public health. That standard shall be incorporated into applicable Departmental rules pursuant to the Administrative Procedure Act, 52:14B-1 et seq., as soon as practicable.

2. In considering financial hardship, project costs and the relative income levels of those affected will be considered.
i. The total construction cost of the project shall be estimated as near as practicable. A full project cost shall be calculated as 120% of this estimate. This full project cost will be assumed to be financed over a nineteen year period at an interest rate to be determined by the Department. A yearly operation and maintenance (O & M) cost will be estimated. A yearly cost per service will be calculated based upon the sum of O & M and amortization of full project costs.

ii. The State Median Family Income Level and Median Family Income Level as reported in the latest census for the applicant shall be determined.

iii. A point system reflecting the degree of hardship will be used according to the following schedule:
Project Costs:0-$ 200/yr/service:0 pts.
$ 201-$ 300/yr/service:15 pts.
$ 301-$ 400/yr/service:30 pts.
$ 401-$ 500/yr/service:45 pts.
over-$ 501/yr/service:60 pts.
Median Family Income Level (M.F.I.L.)
For a municipal M.F.I.L. at or greater than the State0 pts.
M.F.I.L.
For a municipal M.F.I.L. between the State M.F.I.L. and 2020 pts.
percent below the State M.F.I.L.
For a municipal M.F.I.L. at or greater than 20 percent40 pts.
below the State M.F.I.L.

iv. The total priority points awarded for the financial burden will be the sum of points awarded for project costs plus those awarded for the Median Family Income Levels.

3. Points will be awarded for population served based upon the following schedule:

For a project serving less than 50 people: 0 pts.

For a project serving less than 100 people but more than 49 people: 10 pts.

For a project serving 100 or more people: 20 pts.

(g) Priority points to address contamination problems related to publicly owned wells shall be awarded based on the three factors of severity, public hardship and population served, as indicated below:

1. Subject to a wellfield sampling program approved by the Department, the following shall address severity:
i. The rated well pump capacity tested and found to be greater than the maximum contaminant level divided by the total rated system capacity (including wells, surface water, and bulk purchase interconnections) multiplied by 100.

ii. The rated well pump capacity tested and found to be greater than two times the maximum contaminant level divided by the total rated system capacity (including wells, surface water, and bulk purchase interconnections) multiplied by 100.

iii. The rated well pump capacity that may be affected in the future divided by the total rated system capacity (including wells, surface water, and bulk purchase interconnections) multiplied by 100.

iv. The above three calculated percentages will be summed and the numerical value of the total will be equal to points awarded for severity.

v. The Federal or State standard for contaminants, whichever is lower, shall apply.

vi. For contaminants not included in the primary drinking water rules, the Department may, at its discretion, set a standard for the purposes of these rules based upon a finding that said standard is necessary for the protection of the public health. That standard shall be incorporated into applicable Departmental rules pursuant to the Administrative Procedure Act, 52:14B-1 et seq., as soon as practicable.

2. In considering financial hardship, project costs and the relative income levels of those affected will be considered.
i. The total construction cost of the project shall be estimated as near as practicable. A full project cost shall be calculated as 120 percent of this estimate. This full project cost will be assumed to be financed over a 19 year period at an interest rate to be determined by the Department. A yearly operation and maintenance (O & M) cost for the project will be estimated. An annual incremental cost per affected service will be calculated based upon the sum of O & M and amortization of full project costs.

ii. The State Median Family Income Level and Median Family Income Level as reported in the latest census for the applicant shall be determined.

iii. A point system reflecting the degree of hardship will be used according to the following schedule:
Incremental annual project cost per affected service:
0-$ 25/yr:0 pts.
$ 26-$ 75/yr:15 pts.
$ 76-$ 125/yr:30 pts.
$ 126-$ 175/yr:45 pts.
Over $ 175/yr:60 pts.

Affected services = Total Services x (present rated well pump capacity of wells presently contaminated plus wells anticipated to be contaminated, as estimated by the Department) divided by present rated system capacity (including wells, surface water, and bulk purchase interconnections).

Median Family Income Levels (M.F.I.L.)

For a municipal M.F.I.L. at or greater than the State M.F.I.L.0 pts.
For a municipal M.F.I.L. between the State M.F.I.L. and 2020 pts.
percent below the State M.F.I.L.
For a municipal M.F.I.L. at or greater than 20 percent below the40 pts.
State M.F.I.L.

iv. The total priority points awarded for the financial burden will be the sum of points awarded for project costs plus those awarded for Median Family Income Levels.

3. Points will be awarded for population served based upon the following schedule:
For a project serving less than 50 people0 pts.
For a project serving less than 100 people but more than10 pts.
49 people
For a project serving 100 or more people20 pts.

(h) For ranking purposes the total priority score shall be the sum of points awarded for each of the three categories at 7:1A-5.2(f) or (g) as applicable. In the event of a tie, the applicants shall be ranked in the order of receipt of the loan application by the Department.

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