Current through Register Vol. 54, No. 7, April 4, 2022
shall not consider allowable those costs incurred for building activities,
including equipment purchases and open space land acquisition performed or
undertaken prior to closing the loan for the project, unless the project
sponsor has met the requirements as specified in (a)1, 2 or 3, below:
The project sponsor has submitted items
through 19 to the Department prior to the advertisement of any contract for
which cost reimbursement is being sought; the project sponsor has not
advertised any contract or any addendum thereto, for which cost reimbursement
is being sought, without the authorization to advertise the contracts or any
addendum thereto being given by the Department in writing; the project sponsor
has not awarded any contract for which cost reimbursement is being sought
without the authorization to award the contracts being given by the Department
and the Trust in writing; and the project sponsor has taken all required
actions consistent with applicable Internal Revenue Service laws, rules and
regulations, and provided evidence of such actions in a manner acceptable to
The project sponsor
has submitted items required at
through 19 to the Department and has received the Department's and the Trust's
written approval thereof prior to the issuance of a notice to proceed with
building the project and has met the provisions of the New Jersey Wastewater
Treatment Privatization Act (58:27-1
et seq.), the
Water Supply Privatization Act (58:26-1
et seq.) or
other applicable procurement method authorized under State law.
3. In emergencies or instances where delay
could result in significant cost increases or significant environmental
impairment, the Trust may approve certain activities such as procurement of
major equipment, sewer replacement or rehabilitation, replacement or
rehabilitation of transmission facilities, or building those portions of the
environmental infrastructure facilities that are in need of immediate repair.
However, advance approval shall not be given until after the Department reviews
and approves an environmental assessment and the Trust approves any specific
documents necessary to adequately evaluate the proposed action, including
compliance with (a)1 or 2 above.
(b) If the Trust approves preliminary
building activities, such approval is not an actual or implied commitment of
Trust loan moneys and the project sponsor proceeds at its own financial risk.
Except for interim loans, the project sponsor shall receive cost reimbursement
of approved activities only upon receiving legislative approval in the form of
an appropriations act and closing a Trust loan for the project.
(c) Any procurement is subject to the
requirements of applicable State law.
N.J. Admin. Code §
Amended by R.1988
d.210, effective 5/16/1988.
See: 19 N.J.R. 1600(a), 20 N.J.R. 1076(a).
Substantially amended (a)1 and substituted "Trust" for "Department".
Amended by R.1992 d.42, effective 1/21/1992.
See: 23 N.J.R. 3282(a),
24 N.J.R. 246(a).
Cross references: corrected and references made
to Priority System and Intended Use Plan.
Amended by R.1993 d.242,
See: 24 N.J.R. 4310(b), 25 N.J.R. 2271(a).
Amended to allow the
top 100 (previously limited to the top 70) projects on the Project Priority
List to be considered eligible for preaward approval, also modified to indicate
that all items necessary to satisfy Internal Revenue Service requirements must
be reviewed by the Trust in order to ensure that the Trust will be able to
reimburse these costs under current tax law and documents must be reviewed and
approved by the Department and the Trust.
Amended by R.1995 d.494,
See: 27 N.J.R. 1536(a), 27 N.J.R. 3403(a).
Amended by R.1998
d.407, effective 8/3/1998.
See: 30 N.J.R. 1144(a), 30 N.J.R. 2863(a).
inserted "in writing" in 1, inserted "the Water Supply Privatization Act" in 2,
and inserted "or rehabilitation of transmission facilities" and "substituted
"the environmental infrastructure" for "wastewater treatment" in 3; and
substituted "project sponsor" for "local government unit" throughout the
Amended by R.2002 d.259, effective
N.J.R. 1373(a), 34 N.J.R. 2803(a).
In (b), added "Except for
interim loans," to the beginning of the second sentence.
by R.2006 d.22, effective 1/3/2006.
See: 37 N.J.R. 2645(a),
38 N.J.R. 139(a).
In (a), rewrote the introductory paragraph and