OFFICIAL SITE OF THE STATE OF NEW JERSEY

NJDEP UST Fund Cost Guide
Effective January 1, 2010
Updated 23 June 2010

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Cover Letter

Januaury 1, 2010

Dear UST Fund Applicant or Consultant:

Enclosed you will find an updated version of the Department of Environmental Protection (NJDEP) Petroleum Underground Storage Tank Remediation, Upgrade & Closure Fund (UST Fund) Cost Guide. The latest version of the UST Fund Cost Guide is now utilized by the NJDEP and the NJEDA in accordance with N.J.S.A. 58:10A-37.5b. The UST Fund Cost Guide will be used for the reimbursement of costs associated with regulated and unregulated leaking tanks as well as non-leaking residential heating oil tanks. Versions of this Cost Guide may now be found on the web at The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund.

This Cost Guide will become effective with the following conditions:

• All new applications that have been submitted to the NJDEP prior to and after January 1, 2010, and have not yet been forwarded to the New Jersey Economic Development Authority (NJEDA) for approval will be reviewed utilizing the 2010 Cost Guide.
• All previously approved applications (applications where the NJEDA has approved funding) will have costs submitted and reviewed (e.g. invoices and subcontractor invoices) utilizing the Cost Guide in effect at that time of their approval. All applications that have already been submitted to the NJDEP may not be withdrawn for the purpose of revising the cost proposals.
• The cost proposals submitted with applications to the UST Fund are estimates. Disbursements will be made after the work is performed and sufficient documentation of actual costs incurred is submitted to the NJDEP or NJEDA. This would include, but is not limited to, direct subcontractor invoices and receipts representing actual service, material and equipment costs, and proof of payment such as cancelled checks or invoices marked “paid”. It is important that applicants advise their consultants/contractors that this documentation is necessary for the applicant to receive the maximum reimbursement possible from the UST Fund. It is recommended that the applicant make this a requirement in the contract with their consultant/contractor.
• If proposed rates and/or costs related to UST Fund Applications for leaking tanks exceed the UST Fund Cost Guide they must be justified to the satisfaction of the NJDEP. Such justification may include an explanation of specific site conditions that warrant additional effort, specific specialized site needs, etc. It is the responsibility of the applicant to provide such justification. Any costs in excess of those found in the UST Fund Cost Guide that can not be adequately justified may be capped at the UST Fund Cost Guide rates/costs or denied.
• All services, and/or materials that are subcontracted, rented or purchased by the applicant’s prime consultant/contractor will be reimbursed at actual cost plus a prime consultant/contractor mark-up not to exceed 15%. The exception to this is if the subcontracted, rented or purchased items are substantiated by quantity documentation only, with no specific unit cost documentation being provided. In these instances the NJDEP will review and consider the appropriate reimbursement on a case by case basis. All such costs must be verified, as discussed above, by the direct subcontractor invoices or material receipts. For example, for soil disposal or waste oil/ wastewater disposal, costs must be verified by receipt of the disposal facility invoice indicating cost per unit and amount (weight or volume) disposed of. For materials that are purchased in bulk by consultants/contractors for use at various sites, a copy of a recent invoice indicating the bulk purchase price would satisfy the documentation requirement.
• The NJDEP will review the proposed scope of work and costs to determine if the level of effort is appropriate for the work proposed. This level of effort review evaluates the amount of time it takes to perform the tasks proposed, as well as the level of personnel necessary to perform these tasks. Any questions about the proposed level of effort will be directed to the applicant and their consultant/contractor. Any level of effort that is found to be in excess of what the NJDEP deems necessary to perform the work proposed will not be approved for funding.
• For regulated UST applications and regulated UST supplemental funding requests, please note that the NJDEP instructs the NJEDA to make a 50% disbursement upon approval of the application, and subsequent to the closing of the grant, and/or loan.
• The UST Fund Cost Guide was developed by evaluating current construction, and/or remediation cost references, other State of New Jersey contracts for similar services or items, the solicitation of quotes from rental companies, and the general experience of NJDEP staff. The UST Fund Cost Guide was not intended to be all-inclusive; encompassing every possible cost associated with underground storage tank closure, replacement and/ or remediation. Any rates/costs proposed that do not appear in the UST Fund Cost Guide will be evaluated on a case-by-case basis using a similar process.
• Any costs not approved by the NJDEP or the NJEDA are the sole responsibility of the applicant.
• Applicants should note the ineligible costs listed on Page 5 of the UST Fund Cost Guide.
• Any questions regarding the attached UST Fund Cost Guide can be directed to the Bureau of Contract & Fund Management, NJDEP at 609-984-2076.

IMPORTANT NOTE: In compliance with N.J.S.A. 58:10A-37.5b, the Department of Environmental Protection (Department) has developed and published a cost guidance document that establishes the maximum cost to be paid for the eligible project costs of the closure or replacement of a petroleum underground storage tank used to store heating oil for onsite consumption in a residential building or a petroleum underground storage tank with a capacity of 2,000 gallons or less used to store heating oil for onsite consumption in a nonresidential building. The Department and the New Jersey Economic Development Authority (NJEDA) will use the following Cost Guide to determine costs that are eligible under the UST Fund. A copy of the Cost Guide and other UST Fund information is available on the Department’s web site at The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund.  Be advised that as of October 3, 2006, due to the enactment of P.L. 2006, c.58, all contractors performing work on non-regulated underground storage tanks, including homeowner heating oil tanks, where work is being funded by the Petroleum Underground Storage Tank Remediation, Upgrade & Closure Fund, must be certified in accordance with N.J.A.C. 7:14B-13.

Respectfully,

Frank Pinto, Chief
Bureau of Contract & Fund Management
NJDEP
P.O. Box 413
401 East State Street
Trenton, NJ 08625

Sections

Attachment G — UST Fund Cost Guide