7:7A-15.13 Financial assurance for a proposal to restore,create, or enhance wetlands
(a) The Department shall approve a proposal for restoration, creation, or enhancement only if the mitigator or mitigation bank operator provides a letter of credit or other financial assurance that meets the requirements of this section, except that this section does not apply to a mitigation proposal submitted by a government agency, as defined at N.J.A.C. 7:7A-1.4, or an entity that is exempt from this requirement under Federal law.
(b) A letter of credit or other financial assurance under this section shall be obtained from a firm licensed to provide such services in New Jersey.
(c) The letter of credit or other financial assurance shall be in an amount sufficient for the Department to hire an independent contractor to complete and maintain the mitigation project or mitigation bank should the mitigator default. At a minimum, the financial assurance shall be based upon itemized estimates provided by third-party contractors and in the following amounts:
1. A construction assurance, equal to 115 percent of the estimated cost of completing the creation, restoration, or enhancement; and
2. A maintenance assurance to assure the success of the mitigation through the completion of the monitoring period, equal to 115 percent of the estimated cost of monitoring and maintaining the site, including the cost to replant the mitigation area.
(d) The Department shall review the financial assurance annually and the mitigator shall adjust the financial assurance to reflect current economic factors, as direct by the Department.
(e) The Department shall require additional financial assurance if additional construction and/or monitoring is required.
(f) The portion of the financial assurance required under (c)1 above shall be released upon the Department's determination that the construction and planting phase of the mitigation project or mitigation bank has been successfully completed in accordance with the approved mitigation proposal.
(g) The portion of the financial assurance required under (c)2 above shall be released upon the Department's declaration that a mitigation project is successful under N.J.A.C. 7:7A-15.16(e), or upon the successful completion of a mitigation bank in accordance with N.J.A.C. 7:7A-15.23(h), as applicable.
Amended by R. 2008 d. 291, effective October 6, 2008. See: 39 N.J.R. 3587(a), 40 N.J.R. 5581(a). In the introductory paragraph of (c), inserted "based upon itemized estimates provided by third-party contractors and"; in (c)2, substituted "115" for "30" and "monitoring and maintaining the site, including the cost to replant the mitigation area" for "completing the creation, restoration, or enhancement"; and in (e), deleted "under N.J.A.C. 7:7A-15.23(h)" from the end.