N.J. Admin. Code § 7:26C-4.5

Current through Register Vol. 56, No. 18, September 16, 2024

Section 7:26C-4.5 - Remedial action permit fee formula

(a) The Department shall annually calculate remedial action permit fees for the remedial action permit types and activities listed at (b) below in accordance with (c) below.

(b) The Department shall annually calculate the remedial action permit fee for the upcoming State fiscal year, as of the December 1 that precedes the upcoming State fiscal year, for the following remedial action permit types and activities:

1. Remedial action permit types include:

i. Deed notice with no engineering control;

ii. Deed notice with engineering control(s);

iii. Natural attenuation ground water remedial action; and

iv. Any other ground water remedial action; and

2. Remedial action permit fee activities include:

i. Reviewing the remedial action permit application and issuing the remedial action permit;

ii. Modifying the remedial action permit;

iii. Transferring the remedial action permit; and

iv. Terminating the remedial action permit;

(c) The Department shall determine the annual remedial action permit fee by:

1. Calculating the average number of hours required by permit program staff to accomplish the activities at (b)2 above for each remedial action permit type at (b)1 above; and

2. Multiplying the average number of hours calculated pursuant to (c)1 above by the remedial action permit program staff hourly rate derived pursuant to (d) below to derive the annual remedial action permit fee for each type of remedial action permit.

(d) The Department shall calculate the remedial action permit program staff hourly rate for the upcoming State fiscal year as of the December 1 that precedes the upcoming State fiscal year as follows:

AS + FB + IC + OE
HourlyRate =	_________________
BH

Where:

AS = The average annual salary of the program staff full time equivalents directly assigned to the activity, plus a component that reflects the salaries for program overhead staff who perform functions related to the fee activity. To calculate the overhead component of AS, the Department divides the number of program staff full time equivalents directly assigned to the activity by the total number of program staff full time equivalents, and the resulting percentage is multiplied by the program overhead staff salaries. To calculate AS, these two components are then added together.

FB = 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

IC = The indirect costs, which are those costs incurred for a common or joint purpose, benefiting more than one objective and not readily assignable to the cost objective specifically benefited without effort disproportionate to the result achieved. Indirect costs consist of Department management salaries and operating expenses, program indirect salaries and related expenses (personnel, fiscal and general support staff), building rent and the Department allocation of indirect costs listed in the Statewide Allocation Plan prepared annually by the State Department of the Treasury. Indirect costs do not include the salaries for program overhead staff and direct support personnel. Indirect costs involve a rate negotiated annually between the Department and the U.S. Environmental Protection Agency that is multiplied by the sum of AS and FB.

OE = The average annual operational expenses attributable to a program staff full time equivalent directly assigned to the activity. Operating expenses include costs incurred in connection with the program for such items as postage, telephone, training, travel, supplies, equipment maintenance, vehicle maintenance and data system management (internal systems such as the New Jersey Environmental Management System (NJEMS) and external mainframe applications through the Office of Information Technology).

BH = 1,428. The billable hours, which is the average number of hours each program staff full time equivalent directly assigned to the activity spends annually performing activities for which fees are assessed, and is determined by starting with the total number of days in the calendar year, 365. Then weekends and holidays are subtracted. This figure is further reduced by subtracting days for an average number of used employee leave time (vacation, sick and administrative leave days). Finally, the figure is adjusted by subtracting days for training and other non-billable staff time (such as medical surveillance, time sheet preparation, staff meetings, and other general functions). This results in 204 working days annually that can be allocated to specific objectives.

(e) Each year, the Department shall include in the Annual Site Remediation Reform Act Program Fee Calculation Report that it prepares pursuant to 7:26C-4.2(c), the factors used to calculate the remedial action permit fee for each remedial action permit activity.

N.J. Admin. Code § 7:26C-4.5

New Rule, R.2012 d.095, effective 5/7/2012.
See: 43 N.J.R. 1935(a), 44 N.J.R. 1339(b).
Former N.J.A.C. 7:26C-4.5, Oversight costs, recodified to N.J.A.C. 7:26C-4.7.