No. 32480 (Amendment): R317-101-2. Definitions and Eligibility

DAR File No.: 32480
Filed: 03/31/2009, 04:33
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed change is being made to bring the Utah Wastewater Project Assistance Program rules into conformance with the additional subsidization funding requirements of the American Recovery and Reinvestment Act of 2009 (ARRA).

Summary of the rule or change:

The proposed change adds a definition for the term "principal forgiveness".

State statutory or constitutional authorization for this rule:

Section 19-5-105

Anticipated cost or savings to:

the state budget:

There are no anticipated impacts to the state budget. The proposed rule will be implemented using existing resources.

local governments:

Local governments receiving an authorization through ARRA may benefit from a cost savings up to 50% of the principal loan amount. ARRA requires that 50% of funds be awarded as additional subsidization (i.e., grant, principal forgiveness, or negative interest).

small businesses and persons other than businesses:

The proposed change applies only to publicly-owned treatment works receiving an authorization through ARRA. No direct costs or savings to small businesses or other persons are anticipated.

Compliance costs for affected persons:

The proposed change enables local governments receiving an authorization through ARRA to benefit from a cost savings of up to 50% of the principal loan amount. There are no additional compliance costs associated with the change.

Comments by the department head on the fiscal impact the rule may have on businesses:

The proposed change applies to publicly-owned treatment works receiving an authorization through ARRA. No fiscal impacts to businesses are anticipated. William Sinclair, Acting Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Environmental Quality
Water Quality
CANNON HEALTH BLDG
288 N 1460 W
SALT LAKE CITY UT 84116-3231

Direct questions regarding this rule to:

Dave Wham at the above address, by phone at 801-538-6052, by FAX at 801-538-6016, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/15/2009

This rule may become effective on:

05/22/2009

Authorized by:

Walter Baker, Director

RULE TEXT

R317. Environmental Quality, Water Quality.

R317-101. Utah Wastewater Project Assistance Program.

R317-101-2. Definitions and Eligibility.

A. Board means Utah Water Quality Board.

B. Political Subdivision means any county, city, town, improvement district, metropolitan water district, water conservancy district, special service district, drainage district, irrigation district, separate legal or administrative entity created under the Interlocal Co-operation Act or any other entity constituting a political subdivision under the laws of Utah.

C. Wastewater Project means a sewer, storm or sanitary sewage system, sewage treatment facility, lagoon, sewage collection facility and system and related pipelines and all similar systems, works and facilities necessary or desirable to collect, hold, cleanse or purify any sewage or other polluted waters of this State; and a study, pollution prevention activity, or pollution education activity that will protect waters of this state.

D. Project Costs include the cost of acquiring and constructing any project including, without limitation: the cost of acquisition and construction of any facility or any modification, improvement, or extension of such facility; any cost incident to the acquisition of any necessary property, easement or right of way; engineering or architectural fees, legal fees, fiscal agent's and financial advisors' fees; any cost incurred for any preliminary planning to determine the economic and engineering feasibility of a proposed project; costs of economic investigations and studies, surveys, preparation of designs, plans, working drawings, specifications and the inspection and supervision of the construction of any facility; interest accruing on loans made under this program during acquisition and construction of the project; and any other cost incurred by the political subdivision, the Board or the Department of Environmental Quality, in connection with the issuance of obligation of the political subdivision to evidence any loan made to it under the law.

E. Wastewater Project Obligation means, as appropriate, any bond, note or other obligation of a political subdivision issued to finance all or part of the cost of acquiring, constructing, expanding, upgrading or improving a wastewater project.

F. Credit Enhancement Agreement means any agreement entered into between the Board, on behalf of the State, and a political subdivision, for the purpose of providing methods and assistance to political subdivisions to improve the security for and marketability of wastewater project obligations.

G. Interest Buy-Down Agreement means any agreement entered into between the Board, on behalf of the State, and a political subdivision, for the purpose of reducing the cost of financing incurred by a political subdivision on bonds issued by the subdivision for project costs.

H. Financial Assistance means a project loan, credit enhancement agreement, interest buy-down agreement or hardship grant.

I. Hardship Grant means a grant of monies to a political subdivision, individual, corporation, association, state of federal agency or other private entity that meets the wastewater project loan considerations or NPS eligibility criteria whose project is determined by the Board to not be economically feasible unless grant assistance is provided. A hardship grant may be authorized in the following forms:

1. A Planning Advance which will be required to be repaid at a later date, unless deemed otherwise by the Board, to help meet project costs incident to planning to determine the economic, engineering and financial feasibility of a proposed project.

2. A Design Advance which will be required to be repaid at a later date, to help meet project costs incident to design including, but not limited to, surveys, preparation of plans, working drawings, specifications, investigations and studies.

3. A Project Grant which will not be required to be repaid.

J. Nonpoint Source Project means a facility, system, practice, study, activity or mechanism that abates, prevents or reduces the pollution of water of this state by a nonpoint source.

K. Principal Forgiveness means a loan wherein a portion of the loan amount is "forgiven" upon closing the loan.

 

KEY: wastewater, water quality, loans, sewage treatment

Date of Enactment or Last Substantive Amendment: [October 22, 2007]2009

Notice of Continuation: April 2, 2008

Authorizing, and Implemented or Interpreted Law: 19-5