Current through Register Vol. 63, No. 12, December 1, 2024
(1) It is
recommended that potential applicants contact the director for a
pre-application conference prior to submitting an application. The director or
delegated staff may advise applicants whether the project appears to comply
with these rules, whether funds are available and which costs may be eligible.
No advice, opinion or statements of any nature rendered pursuant to this
subsection shall constitute a loan approval or any other form of representation
or binding commitment.
(2) The
application shall be made on forms and in a manner set by the director.
Application forms shall be completed and filed with the director in order to be
considered eligible for funds from the Water Development Loan Fund.
(3) The level of detail of the information
provided in the application shall be commensurate with the size and scope of
the project. The director may reject incomplete applications. All applications
for water development projects shall:
(a)
Describe the nature, purpose and location of the proposed water development
project. The location shall be described in reference to the public land
survey.
(b) State the amount and
term of loan requested.
(c) Include
a statement describing the need for the project.
(d) Include a statement describing the reason
why the project would be in the public interest.
(e) Include information the applicant has
that describes the effect, if any, of the proposed project on fish and
wildlife, including endangered, threatened or sensitive species; water quality;
water use conservation or efficiency; economic development; public uses of the
affected surface waters, including recreation; and any other anticipated
environmental impact.
(f) Provide
the legal description of the real property to be used as security for the
loan.
(g) Include a feasibility
study for the construction, operation, and maintenance of the proposed water
development project; cost estimates and material specifications; and
construction schedule for completion of the project.
(h) State whether any moneys other than those
in the Water Development Loan Fund are proposed to be used for the construction
of the proposed water development project and whether any other moneys are
available or have been sought for the construction.
(i) Show that the applicant holds or can
acquire all real property and interests therein and water rights necessary for
the construction, operation and maintenance of the proposed water development
project.
(j) Include land use
information as outlined in the department's Land Use Planning Procedures
Guide.
(k) Provide a fiscal impact
statement as to any impact that the proposed project may have on small
businesses, including Oregon family farm units.
(l) Contain information demonstrating that
the applicant is a qualified, credit-worthy and responsible water developer who
is willing and able to enter into a contract for loan repayment and who has
financial resources adequate to operate and maintain the project including, but
not limited to, an itemization of assets and liabilities and credit
references.
(m) Include written
consent from the applicant and guarantors allowing the department to complete a
full credit investigation, including a credit report.
(n) Include evidence of sufficient income to
meet loan repayment. This evidence may include, but is not limited to, the
prior three years tax returns, audited financial statements, cash flow
projections, current year budget information or other evidence deemed
satisfactory by the director. The director may require such financial
information dating back further than three years if, in the director's
judgment, it is deemed necessary.
(o) Include a narrative description of the
applicant's management personnel, board or council members and any contracted
personnel. This information should include the names, titles, experience,
specialized training and expertise of personnel that will be responsible for
decision making, general management responsibilities, technical
responsibilities, and internal operations including fiscal and accounting
responsibilities.
(p) Include a
brief history of the applicant's business or operation, including the number of
years in operation, population or customers served, economic trends and
significant operational or management changes made in the last three
years.
(q) Except for an individual
or sole proprietorship, include evidence satisfactory to the director of legal
authority to borrow and enter into a loan contract with the
department.
(4) The
director may require specific additional information be included with the
application forms to determine that:
(a) The
applicant is qualified to operate and maintain the project;
(b) The applicant has a history of
responsible credit management;
(c)
The applicant is willing and able to enter into a contract with the director
for repayment of the loan; and
(d)
The applicant's project is economically feasible in that income from the
enterprise will support the loan payments.
(5) An application for irrigation or drainage
projects shall also:
(a) State whether any
purposes other than irrigation or drainage will be served by the proposed
project and the nature of other such purposes;
(b) Include an evaluation of the agricultural
potential of the land from any competent public agency;
(c) Contain an estimate of the total acreage
to be served by the proposed project; and
(d) Include a statement from the applicant
that the proposed project is, or will be built and operated in compliance with
all state and federal, as applicable, laws and permitting
requirements.
(6) An
application for community water supply projects shall also:
(a) State whether any purposes other than
supplying water for community use will be served by the proposed project and
the nature of other such purposes;
(b) Include a schedule of the annual net
revenues available to meet the debt servicing requirements of the loan;
and
(c) Include a statement from
the applicant that the proposed water project is, or will be, in compliance
with all state and federal, as applicable, laws and permitting requirements, in
addition to federal community water standards.
(7) An application for fish protection
projects shall also:
(a) Include an assessment
and a recommendation from the Oregon Department of Fish and Wildlife on the
proposed project; and
(b) Include a
statement from the applicant that the proposed project is, or will be built and
operated, in compliance with all state and federal, as applicable, laws and
permitting requirements.
(8) An application for a watershed
enhancement project shall also:
(a) Include a
recommendation from the Governor's Watershed Enhancement Board for the
project;
(b) State whether any
purposes other than watershed enhancement will be served by the proposed
project and the nature of other such purposes; and
(c) Include a statement from the applicant
that the proposed project is, or will be built and operated, in compliance with
all state and federal, as applicable, laws and permitting
requirements.
(9) All
applications for water development projects shall include fees as set forth in
OAR 690-090-0036.
(10) All
applications for water development projects shall include an assessment and a
recommendation from the Oregon Department of Fish and Wildlife on the proposed
project.
Stat. Auth.: ORS 183, ORS 197, ORS 536 & ORS 541
Stats. Implemented: ORS
541.705
