N.J. Admin. Code § 7:22-7.11

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:22-7.11 - Miscellaneous costs

(a) Allowable miscellaneous costs include:

1. For Pinelands grant or loan awards made in State Fiscal Year 1996 and later and for Pinelands grant or loan awards made in State Fiscal Year 1995 and earlier for which final payment has not been received under a Pinelands grant or loan agreement, the costs of salaries, benefits and expendable materials the recipient incurs for the project. However, the allowable portion of these administrative costs, including the administrative costs listed in (a)3, 4, 5 and 6 below, will be limited to three percent of the low bid building cost. The three percent limit may be exceeded only in instances where the Department approves a greater amount through line item adjustments in accordance with N.J.A.C. 7:22-6.26. For grant or loan awards made prior to State Fiscal Year and for which final payment has been made to the project sponsor, administrative cost funding for this paragraph and (a)3 and 4 below for up to one percent is allowable.

2. The costs of additions to wastewater treatment facilities that were assisted under the Federal Water Pollution Control Act Amendments, the Wastewater Treatment Bond Act, the Trust Act, the Pinelands Infrastructure Trust Bond Act of 1985 ( P.L. 1985, c.302) or its amendments, the Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992, or the Stormwater Management and Combined Sewer Overflow Abatement Bond Act and that fails to meet its performance standards provided:

i. The project is identified on the Pinelands Infrastructure Trust Funding List as a project for additions to wastewater treatment facilities that has received previous State or federal funds;

ii. The grant or loan application for the additions includes an analysis of why the wastewater treatment facilities cannot meet its specified performance standards; and

iii. The additions could have been included in the original Federal grant or State assistance award; and

(1) Are the results of one of the following:

(A) A change in the specified performance standards required by the State or the United States Environmental Protection Agency (EPA);

(B) A written understanding between the Regional Administrator of EPA and grantee prior to or included in the original Federal grant award;

(C) A written understanding between the Department and the recipient prior to or included in the original Fund loan award;

(D) A written understanding between the trust and the recipient prior to or included in the original Trust loan award.

(E) A written understanding between the Department and the recipient prior to or included in the original Pinelands grant or loan award:

(F) A written direction by the Regional Administrator of EPA or the Department to delay building part of the wastewater treatment facilities; or

(G) A major change in the wastewater treatment facilities' design criteria that the grantee cannot control; or

(2) Meet all of the following conditions:

(A) The wastewater treatment facilities have not completed its first full year of operation;

(B) The additions are not caused by the recipient's mismanagement or the improper actions of others;

(C) The costs of rework, delay, acceleration or disruption that are a result of building the additions are not included in the grant or loan; and

iv. This provision applies to failures that occur either before or after the initiation of operation. This provision does not cover wastewater treatment facilities that fail at the end of its design life.

3. Costs of royalties for the use of or rights in a patented process or product with the prior approval of the Department.

4. Costs of recipient's employees attending training workshops/seminars that are necessary to provide instruction in administrative, fiscal or contracting procedures required to complete the construction of the wastewater treatment facilities, if approved in advance by the Department.

5. Costs of bond counsel, financial advisor, bond issuance and other expenses incidental to the approval, preparation and sale of bonds, notes or obligations of the local government unit that are required to finance the project and the interest on the bonds, notes or obligations.

6. Costs of fees for permits required for the building of the project.

7. Costs for the construction of that portion of a house connection (service lateral) owned by the local government unit and to which the local government unit has access by easement for maintenance and repair.

8. Costs associated with the purchase and installation of security measures, including, but not limited to, such items as fencing, cameras, lighting and video equipment.

(b) Unallowable miscellaneous costs include:

1. Ordinary operating expenses of the recipient including salaries and expenses of elected and appointed officials and preparation of routine financial reports and studies;

2. Preparation of applications and permits required by federal, State or local regulations or procedures;

3. Administrative, engineering and legal activities associated with the establishment of special departments, agencies, commissioners, regions, districts or other units of government;

4. Costs of fees for permits required for the operation of the project, including the NJPDES permit pursuant to N.J.A.C. 7:14A;

5. The costs of replacing, through reconstruction or substitution, wastewater treatment facilities that were assisted under the Federal Water Pollution Control Act Amendments, the Wastewater Treatment Bond Act, the Trust Act, the Pinelands Infrastructure Trust Bond Act of 1985 ( P.L. 1985, c.302) or its amendments, the Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992, or the Stormwater Management and Combined Sewer Overflow Abatement Bond Act and that fail to meet its project performance standards. This provision applies to failures that occur either before or after the initiation of operation but does not apply to wastewater treatment facilities that fail at the end of its design life;

6. Personal injury compensation or damages arising out of the project;

7. Fines and penalties due to violations of, or failure to comply with, Federal, State or local laws, regulations or procedures;

8. Costs outside the scope of the approved project;

9. Costs for which grant or loan disbursement has been or will be received from another federal or State agency for the project;

10. Costs of wastewater treatment facilities for control of pollutant discharges from a separate storm sewer system;

11. The cost of wastewater treatment facilities that would provide capacity for new habitation or other establishments to be located on environmentally sensitive land such as wetlands or floodplains;

12. The costs of preparing a corrective action report required by N.J.A.C. 7:22-6.30(b)(1).

N.J. Admin. Code § 7:22-7.11

Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
Revised to clearly identify the policy of limiting the allowable costs for salaries, benefits and expendable materials (including legal, fiscal and administrative costs) to one percent of the low bid building cost has been included in this section.
Amended by R.1995 d.494, effective 9/5/1995.
See: 27 New Jersey Register 1536(a), 27 New Jersey Register 3403(a).
Amended by R.1997 d.346, effective 8/18/1997.
See: 29 New Jersey Register 2207(a), 29 New Jersey Register 3723(a).
In (a)2 and (b)5, inserted reference to "Green Acres" bonding act.
Amended by R.2006 d.22, effective 1/3/2006.
See: 37 New Jersey Register 2645(a), 38 New Jersey Register 139(a).
In (a), added new provision 8 to indicate that security measures are allowable project costs.