Current through Register Vol. 46, No. 12, March 20, 2024
(a) With the exception of category G
projects, all completed pre-applications received by the department will be
evaluated and assigned a score based on the priority ranking scoring system
described in section
53.4
of this Part, provided, however, that:
(1)
the department will not assign a score to any project it has determined to be
ineligible for assistance; and
(2)
after review of a pre-application the department may determine that one or more
proposed project components are not essential to addressing critical public
water system deficiencies. In that event, the department will sever any
non-essential components from the essential project component and score them as
separate projects.
(b)
Projects receiving scores will additionally be assigned to one of three
categories:
(1) Category A: Public water
systems serving a population of 10,000 or fewer.
(2) Category B: Public water systems serving
a population exceeding 10,000.
(3)
Category C: Public water systems which have been qualified by the corporation
for financial hardship assistance.
(c) The department shall prepare annually an
intended use plan that describes how the department and the corporation intend
to allocate fund resources available for that annual funding cycle. The
intended use plan will list all potentially eligible projects for assistance
from the fund. A project must be listed in an intended use plan to be eligible
for fund assistance. The intended use plan will also include the following:
(1) Multi-year list: The multi-year list
shall include all proposed projects which have been reviewed by the department
and received a numerical score pursuant to subdivision (a) of this section. New
projects may be added to this list on a continuous basis.
(2) Project readiness list: The project
readiness list shall include all projects from the multi-year list which the
department has determined are sufficiently developed to proceed with long-term
fund assistance during the funding cycle covered by the intended use plan.
Applicants for these projects are expected to make applications for fund
assistance to the corporation during that annual funding cycle. Projects shall
be listed in descending order of their priority ranking system score.
(3) Funding list: The funding list shall
include all projects from the project readiness list and all projects from the
hardship list expected to qualify for long-term loans within the annual funding
cycle covered by the intended use plan.
(4) Hardship list: Upon written confirmation
from the corporation that a project qualifies for financial hardship
assistance, that project will be placed on the hardship list. Such written
confirmation shall remain valid for two consecutive annual funding cycles. If a
project has not received funding during this period, it shall be removed from
the hardship list and relisted on the multi-year List unless the project
receives another written confirmation from the corporation that the project
qualifies for financial hardship.
(5) Category G list: The category G list
shall include projects or portions thereof that address green infrastructure
including, without limitation, water and energy efficiency improvements or
other environmentally innovative activities or that qualify as a demonstration
project of new green infrastructure technology as provided in the IUP. Such
projects or portions thereof shall be determined based on an evaluation of
benefits to the public and positive (or least negative) impacts on the
environment and that shall include, without limitation: economic benefits
generated; public health and safety; protection of water quality and the
environment; demonstrated readiness; green energy production and/or reduction
in energy consumption; regional distribution of projects, or water conservation
as provided in the IUP.
(d) The department and the corporation will
annually publish a draft intended use plan which contains the department's
initial plan for the allocation of annual fund resources and the project
priority ranking system scores of each eligible project. The department will
specify a period for review and comment after the publication of the draft
intended use plan during which the public may submit written comments directly
to the department or provide oral statements at public hearings held jointly by
the department and the corporation. Notice of the hearings and availability of
the draft intended use plan will be published in the State Register. Project
applicants may use this opportunity to address any concerns they have regarding
project scores and advance any reasonable arguments in support of having their
respective scores adjusted. Such plan may, after a public comment period, be
amended after the close of the comment and review period the department will
issue the intended use plan.
(e)
The department shall develop the intended use plan subject to the following
requirements:
(1) A minimum of 15 percent of
the annual Federal capitalization funds credited to the fund in any fixed year,
shall be allocated to public water systems serving populations of 10,000 or
fewer. The actual fund assistance rendered to such systems will occur to the
extent there are sufficient allowable project costs to finance in a given
annual funding cycle.
(2) No more
than 30 percent of the annual Federal capitalization funds shall be used to
give loan subsidies to disadvantaged systems as determined by the corporation,
except a greater percent of the annual Federal capitalization funds may be used
to give additional subsidization to eligible recipients when required or
authorized by Federal laws or regulations. Such additional subsidization shall
be provided in accordance with the act and shall include forgiveness of
principal, a negative interest loan or a grant.
(3) No more than 50 percent of fund resources
shall be received annually by a particular applicant. In addition, the
corporation may, on its own initiative or at the direction of the department,
limit fund assistance to the demonstrated annual cash flow needs of any single
applicant.
(f) Projects
shall be selected for placement on the funding list in the following manner:
(1) Any category C project which receives a
score greater than or equal to the project with the lowest score (excluding
additional points awarded pursuant to section
53.4
of this Part) receiving fund assistance in the annual funding cycle in which
the category C project received its current financial hardship qualification
shall be placed on the funding list.
(2) Category A projects from the project
readiness list shall be selected in priority order and placed on the funding
list until 15 percent of funds available for the period covered by the IUP have
been allocated.
(3) All remaining
projects on the project readiness list shall be selected in priority order and
placed on the funding list until all remaining annual fund resources have been
encumbered. Final project funding selection is subject to the restrictions and
project by-pass criteria in subdivision (g) of this section.
(g) Projects on the project
readiness list may be by-passed, upon written notice to the applicant from the
department or the corporation, if any of the following occurs:
(1) the department or corporation receives
written notice from the applicant that the project is withdrawn;
(2) the applicant fails to fulfill
expectations, perform duties, or conform to deadlines or conditions established
in the project schedule or the applicant will not be able to satisfy any other
conditions precedent to obtaining funding during the period specified in the
IUP;
(3) the applicant has reached
the 50 percent annual fund resources cap for fundable projects on the project
readiness list. All projects of an applicant that would cause the applicant to
exceed the 50 percent cap will be by-passed for that annual funding cycle;
or
(4) the department determines
that another project better addresses water savings/conservation, or energy
efficiency improvements or other environmentally innovative activities that
meet green infrastructure mandates of the ARRA.
(h) Projects must be placed on the multi-year
list to be eligible for any available short-term loans made by the fund.
Short-term loan availability shall be limited to those projects listed on the
multi-year list which have a numerical project priority ranking score greater
than or equal to the project with the lowest score (excluding points awarded
pursuant to section
53.4
of this Part) on the funding list.