Current through Register Vol. XLI, No. 50, December 13, 2024
Section 44-1.8 - Priority system for construction grantrecipients to determine whether a state hardship grant should be provided to help relieve a hardship in local funding8.1. Introduction. In fiscal year 1975-76, the West Virginia Water Development Authority received funds for the first time to assist communities in the funding of needed sewage facilities.
In accordance with Public Law 92-500, the Federal Water Pollution Control Act Amendments of 1972, as amended, the Office of Water Resources of the Division of Environmental Protection has established a priority rating system for determination of construction grant recipients to accomplish the goals set forth in the Act. The priority system is a mechanism through which water quality problems are ranked state-wide relative to their severity and volume. Once a community has obtained a priority, the eligible portions of the project are recommended for a federal grant.
In accordance with provisions of W. Va. Code '22C-1, the Authority has developed the following criteria to identify grant applicants who may experience a financial hardship and thereby qualify for state hardship grant funds. However, availability of hardship funds will NOT be retroactive to entities where construction has been initiated.
8.2. Criteria. In order to accurately evaluate the financial impact a proposed system will have on a given community, several factors must be considered. The most accurate information relating to the financial impact of a proposed sewage system is not available, however, until the applicant is ready to initiate construction of the project. Therefore, a hardship grant will not be awarded until a project is ready for construction, as determined by the Authority.
8.2.1. Criteria for grant applicants. -- The Authority intends to evaluate the financial impact a proposed system will have on a community due to the installation of wastewater treatment facilities. Therefore, the following constraints will be used to determine the eligibility of project for state hardship grants:(a) The applicant must have adequately addressed the cost-effective aspects of the project and project alternatives;(b) The applicant must have approvable plans and specifications, as determined by the Authority; and(c) As appropriate, the applicant must have been awarded a construction grant by the United States Environmental Protection Agency. Criteria to determine grant applicants that qualify as hardship:
(A) The state median family income is used as the basis for determining the acceptable sewer user charge level. The determination will be made using a methodology to be the subject of periodic review by the Water Development Board at public meetings held as required; and(B) Projects with proposed user charges in excess of the values determined in item (A) would be considered for hardship grant award. Criteria to determine allocation of hardship funds:
Applicants recommended as hardship under Section 8.2.1 (1) of these rules, will be allocated funds in such a manner that those communities with a relatively high user charge will be eligible for a larger hardship fund allocation.
(A) Funding of projects recommended as hardship under Section 8.2.1 (1) of these rules, will be developed in the following manner: The hardship grant amount is based on the difference between the proposed user charge, which is derived using criteria prescribed by the Authority, and the recommended (see Section 8.2.1 (1) of these rules) sewer user charge. The difference in costs would then be used to calculate the reduction in the project's debt service necessary to reduce the proposed user charge to the recommended level. Since the maximum size of the hardship grant is set by the Water Development Board, the grant may be insufficient to meet the needs of the project in bringing the user charge down to the recommended level;(B) In the event a community funded by a hardship grant is able to reduce its user charge rates to the recommended level and subsequently receives additional grant funds for the project, the community must return the Authority's funds in excess of those required to maintain the user charge at the recommended level;(C) Hardship grant funds may be withdrawn from a project if the project does not proceed promptly (as determined by the Authority) to completion upon award of a hardship grant; and(D) Appropriations in any fiscal year may not be sufficient to fund all the recommended applicants. Grants will be made until all qualifying projects have received grants or grant funds are exhausted, whichever occurs first.8.3. Definitions of terms. 8.3.1. State median family income. -- This is the median income for the state. This value will be provided by the Authority.8.3.2. User charge. -- As a minimum, these are charges levied to recover from the system's users the cost of operation and maintenance, existing debt service and debt service incurred from the proposed project. These represent the anticipated costs of serving each family unit on an individual connection.8.3.3. WDA. -- This is the abbreviation for the West Virginia Water Development Authority.8.3.4. Construction. -- As used in this rule, this means any wastewater project where a formal award of construction contracts has been made.