Similarly, 40 CFR 35.3145 requires that the State must also require all recipients of funds which equal the amount of the federal grants to the State to comply with certain other "cross-cutting" federal authorities. Cross-cutting authorities are federal laws and authorities that apply to these projects independent of the federal Water Pollution Act and subsequent amendments.
Since the beginning of this program in FY-89 and continuing through FY-00, the Department required that all projects receiving loan funding meet federal equivalency and cross-cutter requirements and has banked the amount of these loan awards in excess of the federal capitalization grants toward meeting equivalency and cross-cutter requirements of future federal capitalization grants. Accordingly, the Department has determined that beginning in FY-01, projects funded in this program will not be required to meet all federal equivalency and cross-cutter requirements, and this practice will continue until the banked equivalency requirements are exhausted.
Thus, almost all of these federal equivalency and cross-cutter requirements are excluded from these regulations. However, certain of these requirements have been retained in order to secure a reasonable assurance that the Department funds projects that are environmentally sound, that the loan recipient can construct, operate, and maintain the project and repay the loan, that these public funds are adequately protected and expended only for their intended purpose, and as otherwise required by federal law and regulations. Also, certain federal requirements are mandatory for all projects and are listed in Appendix J.
11 Miss. Code. R. 6-7.1