Current through Register Vol. XLI, No. 50, December 13, 2024
Section 44-1-3 - Step I projects - state loans3.1. Eligibility for participation in program.3.1.1. Governmental agencies eligible for participation in program. -- All municipal corporations, counties and other public bodies or any combination thereof required to construct sewage treatment facilities, interceptor sewers and sewage collection systems and the Authority, when constructing such facilities to service such municipal corporations, counties or other public bodies, shall be eligible to participate in the program.3.1.2. Application for participation in the program. -- Any eligible municipal corporation, county or other public body or any combination thereof which desires to participate in the program shall make a separate application to the Authority on forms prescribed by the Director of the Authority for each project for which such participation is desired.3.1.3. Determination of priority for participation in program. -- The priority for each project for which an application is received by the Authority shall be fixed in relation to other projects for which applications are received by the Authority on the date which the applicant has satisfied the following conditions: (a) Provided documentation satisfactory to the Authority that the project is a sewage treatment facility and/or interceptor sewers and/or collection system and that the project has received a commitment from the United States of America to make a grant of seventy-five percent (75%) of the Title II federal participation costs of the project and that the project is consistent with the applicable Comprehensive Plan of Water Management approved by the Director of the Division of Environmental Protection or is in the process of preparation by such Director and is not inconsistent with the standards set by the State Environmental Quality Board for waters of the state affected by the project;(b) Demonstrated to the satisfaction of the Authority the capability of the applicant to pay the loan and service charge referred to in Section 3.3.1 of these rules; and(c) Delivered to the Authority an agreement for the repayment of the loan and service charge of the project between the applicant and constituents, where appropriate, and the Authority which is consistent with Sections 3.3.1 and 3.4.1 of these rules, which has been authorized and approved by the legislative authority or authorities of the applicant and which has been executed by the applicant.3.2. Payment of costs of projects. 3.2.1. Payment of eligible project costs by Authority. -- Upon entering into the agreement between the Authority and the applicant referred to in Paragraph (c), Section 3.1.3 of these rules and determination of the project's priority pursuant to Section 3.1.3 of these rules, the nonfederal share of eligible project costs not to exceed twenty-five percent (25%) shall be paid by the Authority. In the event such agreement is terminated by the Authority pursuant to, and not in breach of, the provisions of such agreement, or in the event such agreement is terminated by the applicant whether or not in breach of this agreement, the eligible project costs incurred prior to the date of completion of the work under the Step I project or the date of such termination, whichever is earlier, shall be paid by the applicant or by the applicant and its constituents. Any moneys paid by either party pursuant to such agreement which become the obligation of the other party under the provisions of the agreement shall be repaid in not more than three (3) years after termination.3.2.2. Source of payment of eligible project costs. -- The payment of the eligible project costs by the Authority as provided in Section 3.2.1 of these rules, shall be made from funds appropriated to the Authority or from funds contained in Authority accounts which provide for such use.3.2.3. Distribution of moneys constituting eligible project costs. -- Unless the law governing a particular governmental agency requires otherwise, the Authority shall pay directly to the party from whom an eligible project cost has been incurred upon the approval by the applicant of such payment as to those eligible project costs which the applicant or one (1) of the governmental agencies constituting applicant has not paid from its own funds. As to those eligible project costs which the applicant or one (1) of the governmental agencies constituting the applicant has paid from its own funds, the Authority shall reimburse the applicant or such governmental agency upon an accounting to the Authority of such payment and a request for reimbursement. In the event the law controlling the governmental agency does not permit the foregoing, an arrangement for the disbursement of the moneys from the Authority for payment of eligible project costs shall be made which is satisfactory to both the applicant and the Authority.
3.2.4. Availability of funds. -- The loan funds available for the purposes herein provided will be disbursed to eligible projects on a continuing basis subject to the level of appropriation to the Authority and to the Authority account balances in the accounts provided for this purpose.3.3. Participation payments by applicant.3.3.1. Amount and length of time of participation payments. -- The loan and service charge shall be payable upon completion of financing arrangements for the Step III project which consummates the Step I and Step II projects, or any portion thereof, developed therefor, or three (3) years after award of the Step I loan or two (2) years after award of the Step II loan, whichever occurs first. If a public entity fails to meet either or both of these deadlines, it may appeal to the Water Development Board for an extension of time; and, if the delay is justified in the opinion of the Board, a time extension will be granted. In the event the Step I project scope consists of more than one (1) governmental agency, the agreement referred to in Paragraph (c), Section 3.1.3 of these rules, shall set forth the respective shares of the total participation charge each governmental agency shall be required to pay.3.3.2. Loan and service charge. -- The loan as provided herein is a no-interest loan of up to twenty-five percent (25%) of the total eligible project costs. The service charge is set at one percent (1%) of the value of the loan.3.4. Miscellaneous. 3.4.1. Agreement between Authority and applicant. -- The agreement between the Authority and the applicant referred to in Paragraph (c), Section 3.1.3 of these rules, shall be consistent with these rules and shall contain such additional provisions which the Authority determines are necessary to the implementation of these rules and ensure the proper carrying forward of the program. As to those projects for which the applicant is the Authority, the agreement shall be between the Authority in its capacity as applicant and the Authority acting in its own behalf.