SRP Rules & Regulations Oversight Rule

N.J.A.C. 7:26C-7.7 Self-Guarantee Requirements

		Notes: This document is excerpted from N.J.A.C. 7:7:26C Subchapter 7 "Remediation Funding Source" (PDF 145 Kb; 2003)
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7:26C-7.7 Self-guarantee requirements

(a) Any person who chooses to provide a self-guarantee as a remediation funding source pursuant to this subchapter shall submit a written statement pursuant to (b), below, certified in accordance with N.J.A.C. 7:26C-1.2(a), to the Department:

1. Upon submission to the Department of an application for a remediation agreement pursuant to the Industrial Site Recovery Act Rules, N.J.A.C. 7:26B-4; or

2. Upon submission to the Department of a remedial action workplan for an industrial establishment being remediated pursuant to the Industrial Site Recovery Act Rules, N.J.A.C. 7:26B-6;

3. Along with the signed copies of an administrative consent order; or

4. As provided in an administrative order, directive, court order, or other judicial settlement.

(b) The person requesting the Department’s approval to use a self guarantee pursuant to this subchapter shall include the following in the written statement required by (a), above:

1. Information that demonstrates that the estimated cost of the remediation that the Department has approved does not exceed one-third of the tangible net worth of the person required to establish the remediation funding source;

2. Information that demonstrates that the individual or entity has sufficient net cash provided by operating activities, as defined by the American Institute for Certified Public Accountants, to pay for the remediation during the next 12-month period;

3. Audited financial statements for the preceding fiscal year that ended closest in time to the date of the self guarantee statement, prepared in accordance with the American Institute for Certified Public Accountants guidelines, including but not limited to income statement, balance sheet and consolidated statement of cash flow, that demonstrates that the individual or entity has sufficient cash flow to pay for the remediation during the next 12-month period;

4. The applicable case number, the program interest name, and program interest number (preferred ID), site name, site address, and the estimated cost of remediation determined in accordance with N.J.A.C. 7:26C-7.3(b); and

5. A statement from the chief financial officer or similar officer that the information in the written request is true to the best of the requester's information, knowledge and belief and meets the requirements of N.J.S.A. 58:10B-3(f).

(c) The Department shall notify the person seeking to provide a self-guarantee whether or not that person satisfies the self-guarantee requirements as outlined at (b) above.

(d) The self-guarantee shall be valid for one year from the date of the Department's written approval of the self guarantee. Thereafter, the person shall:

1. Comply with the requirements of (a) and (b) above, annually, to provide a self-guarantee for each successive year that that person is required to maintain a remediation funding source and wishes to continue to provide a self-guarantee; and

2. Submit the information required by (a) and (b) above to the Department thirty (30) calendar days prior to the date of expiration of the existing statement.