R653-2-2. Description of Revolving Loan Programs

  (1) The Board of Water Resources (Board) administers three revolving construction funds: the Revolving Construction Fund, the Cities Water Loan Fund, and the Conservation and Development Fund. Funding is available for projects that conserve, protect, or more efficiently use present water supplies, develop new water, or provide flood control. Project facilities may be constructed in another state if project water is to be used within the state of Utah.

  (a) The Board will fund projects based on the following prioritization system:

  (i) Projects which involve public health problems, safety problems, or emergencies.

  (ii) Municipal water projects that are required to meet an existing or impending need.

  (iii) Agricultural water projects that provide a significant economic benefit for the local area.

  (iv) Projects which will receive a large portion of their funding from other sources.

  (v) Projects not included in items 1-4, but which have been authorized by the Board, are funded on a first-come-first-served basis.

  (b) The Board will not fund the following types of projects:

  (i) Projects that are, in the opinion of the Board, routine or regularly occurring system operation and maintenance.

  (ii) Domestic water systems where fewer than 50% of the residents live in the project area year-round.

  (iii) Projects sponsored by developers.

  (iv) Projects sponsored by individuals or families.

  (c) General guidelines of each of the Board's funding programs are:

  (i) Revolving Construction Fund (RCF):

  (A) In the RCF, the Board will accept applications from incorporated groups such as mutual irrigation and water companies.

  (B) The RCF advances financial assistance to the following types of projects:

  (1) Irrigation projects costing less than $1,000,000.

  (2) Rural culinary projects costing less than $1,000,000 that involve mutual irrigation and water companies.

  (3) Dam Safety Studies

  (C) The staff will recommend repayment terms in the feasibility report it will prepare. Interest will not be charged.

  (ii) Cities Water Loan Fund (CWLF):

  (A) Through the CWLF, the Board may finance the construction of municipal water facilities for political subdivisions of the state such as cities, towns, and districts.

  (B) The staff will recommend repayment terms and interest rates in the feasibility report it will prepare.

  (iii) Conservation and Development Fund (C and D):

  (A) Through the C and D, the Board may finance the construction of water projects sponsored by incorporated groups, political subdivisions of the state, the federal government, or Indian tribes.

  (B) The staff will recommend repayment terms and interest rates in the feasibility report it will prepare.