New Jersey Administrative Code
Title 7 - ENVIRONMENTAL PROTECTION
Chapter 26C - ADMINISTRATIVE REQUIREMENTS FOR THE REMEDIATION OF CONTAMINATED SITES
Subchapter 4 - FEES AND OVERSIGHT COSTS
Section 7:26C-4.7 - Oversight costs
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The person responsible for conducting the remediation shall pay the Department's oversight costs pursuant to this section whenever the Department assesses those costs against the person responsible for conducting the remediation that is subject to any of the following circumstances:
(b) The person responsible for conducting the remediation shall pay the Department's oversight costs by the date indicated on the invoice for the Department's oversight costs.
(c) The Department shall include the following information on the bill for the Department's oversight costs referenced in (b) above:
(d) The Department shall send a bill based on the formula in (e) below to the designated fee billing contact for the person responsible for conducting the remediation periodically throughout the remediation.
(e) The Department shall calculate its oversight costs based upon the following:
OC = DPC + IPC + E;
DPC = (CH)*(HSR)*(1 + SAR)*(1 + FBC);
IPC = (CH)*(HSR)*(IPCRF)
where:
OC = oversight costs
DPC = direct program costs, where:
CH = The number of coded hours, which represents the sum of hours each Departmental employee has coded to the site specific job number. Actual hours for all Departmental employees including without limitation case managers, geologists, technical coordinators, samplers, inspectors, supervisors, section chiefs, and bureau chiefs using the site-specific job number, shall be included in the formula calculations;
HSR = The hourly salary rate, which is an employee's annual salary divided by the number of working hours in a year (1,820 hours);
SAR = The salary additive rate, which represents the prorated percentage of charges attributable to each Department employee's reimbursable "down time" salary expenses. Reimbursable "down time" expenses includes costs for vacation time, administrative leave, compensatory time, sick leave, holiday time, emergency or early closing, jury duty, absent with pay, convention, injury in the line of duty (SLI), military allowance with pay, union negotiating sessions, lost time on first day of injury, counseling employee advisory service, union business activities, grievances/hearings/Department conferences, civil service examinations, absent with pay in lieu of working holiday, and workers' compensation/SLI. The calculation for the salary additive rate is the sum of the reimbursable "down time" expenses divided by the net Department regular salary for a given fiscal year. The net Department regular salary cost is calculated by subtracting the Department employees' reimbursable "down time" expenses from the Department's regular salary; and
FBC = The fringe benefit rate, which represents the Department's charges for the following benefits: pension, health benefits including prescription drug and dental care program, workers compensation, unemployment insurance, temporary disability insurance, unused sick leave, FICA and Medicare. The fringe benefit rate is developed by the Department of the Treasury's Office of Management and Budget (OMB). OMB negotiates the rate with the United States Department of Health and Human Services on an annual basis. The rate is used by all State agencies for estimating and computing actual charges for fringe benefit costs related to Federal, dedicated and non-State funded programs; and
IPC = Indirect program costs, where:
IPCRF = The indirect program cost rate factor, which represents the rate which has been developed for the recovery of indirect program costs in Site Remediation. This indirect rate is developed by the Department on an annual basis in accordance with the applicable New Jersey Department of Treasury OMB Circular Letters and the Federal OMB Circular A-87, "Cost Principles for State and Local Governments" ( 2 CFR Part 225); and
The methodology for computing the indirect program cost rate involves the following basic processes:
Identification of Site Remediation expenditures that cannot be assigned directly to a specific Site Remediation cost objective. These expenditures include indirect labor coded as such by employees, and approved by supervisors, on their timesheets. Also included are expenses such as the Site Remediation's proportionate share of costs associated with upper management offices, and individual costs such as rent, general equipment use charges, office supplies, training, etc. that cannot be identified to a specific Site Remediation cost objective;
Site Remediation indirect expenditures identified above are adjusted for any expenses not allowed by the Federal Cost Principles such as interest expense;
The adjusted Site Remediation's indirect expenditures are then reduced by the amount of any funds received by the Program from Federal Grants or New Jersey State Fee Reimbursements; and
The resulting total unreimbursed Site Remediation indirect expenditures is then divided by the total unreimbursed Site Remediation direct labor expenditures to arrive at the indirect program cost rate.
E = expenses, which includes non-salary direct costs specific to the site such as sampling, analytical, equipment, or supply costs, contractor expenses, and Emergency Response overtime hours. These costs are not subject to additive, fringe, or indirect multipliers.
(f) The person responsible for conducting the remediation:
(g) To request the prospective application of the statutory exemption for which the person qualifies pursuant to (f)2 above, the person responsible for conducting the remediation shall submit the following to the Department within 60 calendar days after the person initiates remediation at the site or area of concern:
(h) When the Department determines that a person who has complied with (g) above meets the statutory exemption, the Department shall calculate that person's prospective oversight costs, beginning on the date of the requested exemption, using the following alternative oversight cost formula; however, the Department may only offset any future costs by the exempted amount, and shall not offset or pay any rebates of such costs prior to either May 7, 2012 or the date the requested exemption is submitted to the Department.
OC (NI) = DPC + E
where
OC (NI) = oversight costs without indirect program costs included;
DPC = direct program costs as defined in (e) above; and
E = expenses, as defined in (e) above.