11 Miss. Code. R. 6-4.2 - Program Requirements

A. Eligible Applicant Determination. To be eligible for financial assistance, an applicant must meet the definition of an eligible applicant as described in Rule 4.1.C.(17) of this regulation, as determined by the Department.

B. Obligation Period. Federal funds allotted to the State shall be available for obligation for a period of one year after the close of the federal fiscal year for which the funds are authorized.

C. Reserves. The Commission shall reserve a percentage of the State's Title VI SRF allotment from each fiscal year for administration of the fund and for planning under Sections 205(j) and 303(e) of the Act, consistent with the Act and state law.

D. Public Comment and Review. In accordance with the Act, the Commission shall provide for public comment and review to consider adoption of the annual intended use plan, the priority list, and the priority system. After adoption by the Commission, modifications to these documents may be adopted by the Commission as provided for in the Intended Use Plan without further public comment and review.

E. Types of Assistance. The fund may be used for the following purposes, subject to that established in the Intended Use Plan for a given fiscal year.

(1) To make loans on the condition that:

(a) Such loans are made at or below market interest rates, at terms not to exceed 20 years.

(b) Monthly principal and interest payments will commence as further described in Rule 4.3.H. of this regulation, and all loans will be fully amortized not later than 20 years after project completion.

(c) The recipient of a loan will establish a dedicated source of revenue for repayment of loans.

(d) The fund will be credited with all payments of principal and interest on all loans.

(2) To refinance the debt obligation of eligible applicants at or below market rates when such debt obligations were incurred and construction began on or after March 7, 1985; and where such projects have complied with all applicable Title II requirements of the Act, crosscutting federal laws and executive orders, and this regulation. The prospective loan recipient agrees that by pursuing such a refinancing arrangement, he does so at his own risk, and thereby relieves the Commission, the Department, and the Department staff of all responsibility and liability should costs later be determined unallowable for any reason or should such funding not become available for any reason.

(3) As a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state if the proceeds of the sale of such bonds will be deposited in the fund, and provided such authority is established in state law.

(4) For the reasonable costs of administering the fund and conducting activities under Title VI of the Act.

(5) To earn interest on fund accounts.

F. State Capitalization Grant Application. After the Commission adopts the Intended Use Plan, including the Priority System and Priority List, the Executive Director or his designee shall submit these items with an application for the capitalization grant for that fiscal year to EPA.

G. Federal Title II Requirements. All projects which receive loan assistance from the fund and which will be constructed in whole or in part before fiscal year 1995 with funds directly made available by capitalization grants must meet the Title II requirements under Sections 201(b), 201(g)(1), 201(g)(2), 201(g)(3), 201(g)(5), 201(g)(6), 201(n)(1), 201(o), 204(a)(1), 204(a)(2), 204(b)(1), 204(d)(2), 211, 218, 511(c)(1) and 513 of the Act. Current EPA regulations promulgated under these sections of the Act will apply, except as noted below. These requirements will be superceded by any subsequent federal law or regulation if so specified by that law or regulation. The Department may establish state procedures accepted by EPA. In applying these EPA regulations, the word "Department" shall be substituted for the word "EPA" or "Regional Administrator" and the words "loan recipient" shall be substituted for the word "grantee". A summary of these Title II requirements and the applicable regulations is as follows:

(1) (Section 201(b), which requires that projects apply best practicable waste treatment technology (see 40 CFR 35.2005(b)(7): Definition of BPWTT; 40 CFR 35.2030(b)(2): Facilities Planning);

(2) Section 201(g)(1), which limits assistance to projects for secondary treatment, advanced treatment or any cost-effective alternative, new interceptors and appurtenances, and infiltration-inflow correction. This section retains the Governor's discretionary set-aside by which a State can use up to 20 percent of its allotment for other projects within the definition of treatment works in Section 212(2), and for certain non-point source control and groundwater protection purposes, as defined in section 319 of the Act ( 40 CFR 35.2015(b)(2)(ii-iv): State Priority System and Project Priority List);

(3) Section 201(g)(2), which requires that alternative technologies be considered in project design ( 40 CFR 53.2030: Facilities Planning);

(4) Section 201(g)(3), which requires that applicants show that the related sewer collection system is not subject to excessive infiltration or inflow ( 40 CFR 35.2030(b)(4): Facilities Planning; 40 CFR 35.2120: Infiltration/Inflow);

(5) Section 201(g)(5), which requires that applicants study innovative and alternative treatment technologies and take into account opportunities to construct revenue producing facilities and to make more efficient uses of energy and resources ( 40 CFR 35.2030: Facilities Planning);

(6) Section 201(g)(6), which requires that the applicant analyze potential recreation and open space opportunities in the planning of the proposed facility ( 40 CFR 35.2030(b)(5): Facilities Planning);

(7) Section 201(n)(1), which provides that funds under Section 205 may be used for water quality problems due to discharges of combined sewer overflows, which are not otherwise eligible, if such discharges are a major priority in a State ( 40 CFR 35.2015(b)(2)(iv): State Priority Systems--categories of need and 35.2024(a): Combined Sewer Overflows);

(8) Section 201(o), which calls on the Administrator ("State" under a capitalization grant) to encourage and assist communities in the development of capital financing plans;

(9) Section 204(a)(1) and (2), which require that treatment works projects be included in plans developed under Sections 208 and 303(e) ( 40 CFR 35.2102: Water Quality management Plans);

(10) Section 204(b)(1), which requires that communities develop user charge systems and have the legal, institutional, managerial and financial capability to construct, operate, and maintain the treatment works ( 40 CFR 35.2208: Adoption of Sewer Use Ordinance and User Charge System; 35.2130: Sewer Use Ordinance; 35.2140: User Charge System; 35.2214: Grantee Responsibilities; 35.2122: Approval of User Charge System and proposed Sewer Use Ordinance; 35.2110: Access to Individual Systems; and 35.2206(a):

(11) Section 204(d)(2), which requires that, one year after the date of completion of construction and initiation of operation the owner/operator of the treatment works must certify that the facility meets design specifications and effluent limitations included in its permit ( 40 CFR 35.2218(c), (d), (e)(1) and (e)(2): Project Performance); except that the provisions of 40 CFR 35.2032(c) will not apply;

(12) Section 211, Federal regulation concerning collection systems ( 40 CFR 35.2116 ) do not apply, and are replaced by the following:

(a) SRF assistance may be provided for sewage collection systems, provided such assistance

(1) is for replacement or major rehabilitation of an existing collection system and is necessary to the total integrity and performance of the waste treatment works servicing such a community, or

(2) is for a new collection system in an existing community with sufficient existing or planned capacity to adequately treat such collected sewage and is consistent with Section 201 of the Act. For the purposes of this regulation, the term "existing community" means those residences, public buildings, and businesses that are correctly documented as existing in the approved SRF facilities plan. If assistance is awarded, the loan recipient must cause the existing buildings to be connected to the collection system within the time specified in the loan agreement;

(13) Section 218, which assures that treatment systems are cost-effective and requires that projects of over $10 million include a value-engineering review ( 40 CFR 35.2030(b)(3): Cost Effectiveness, Facilities Planning, and 35.2114:Value Engineering); except that the provisions of Rule 4.3.B.(2) of this regulation supercede these federal regulations where applicable;

(14) Section 511(c)(1), which applies the National Environmental Policy Act to projects receiving Title II grants ( 40 CFR 35.2113: Environmental Review). The state environmental review requirements, which comply with this federal law, are discussed in greater detail in Appendix C;

(15) Section 513, which applies Davis-Bacon labor wage provisions to treatment works construction (see 29 CFR Part 5). Wages paid for the construction of treatment works must conform to the prevailing wage rates established for the locality by the U.S. Department of Labor under the Davis-Bacon Act (Section 513, applies 40 U.S.C. 276, et seq.).

H. Intended Use Plan. Each fiscal year for which funds are available in the SRF, the Commission shall establish an intended use plan which shall be subjected to public comment and review prior to adoption by the Commission. The intended use plan will include the following items:

(1) A description of both the short and long term goals and objectives of the fund.

(2) A list of projects for construction of treatment works which are included on the fundable portion of the Priority List and a list of activities eligible for assistance under Sections 319 and 320 of the Act. The list of projects will include the following items:

(a) Name of the recipient.

(b) Facility description.

(c) Project treatment/use categories.

(d) Treatment requirements.

(e) Terms of financial assistance.

(3) Assurances for meeting the requirements of Section 602(b) of the Act:

(a) The Department will enter into binding commitments equal to at least 120% of the capitalization grant payments within one year after the receipt of the grant payment.

(b) All funds will be expended in an expeditious manner.

(c) All capitalization grant funds will first be used toward compliance with the enforceable requirements of the Act, including the municipal compliance deadline of July 1, 1988, in accordance with EPA guidance.

(d) All projects funded with funds directly made available by capitalization grants will meet the Federal Title II requirements as described in Rule 4.2.G. of this regulation.

(4) The Priority System which describes the method of ranking projects, the method for distribution of funds, and project action deadlines which all fundable projects must meet or be subject to bypass from the priority list.

I. SRF Financing. The SRF has been established to provide low interest loans to assist and encourage communities to construct wastewater treatment and collection facilities required to improve water quality and public health. Types of assistance are itemized in Rule 4.2.E. of this regulation. Basic SRF financing requirements are as follows:

(1) All eligible applicants requesting SRF assistance shall meet the following requirements in order to receive such assistance.

(a) The applicant's project must be on the fundable portion of the current year's Priority List.

(b) The applicant must enter into legal and binding commitments with the Commission and the State Tax Commission to secure financing.

(c) Terms of any SRF assistance will be as established in the Intended Use Plan for the projects to be funded in each fiscal year, and will be further established in the SRF loan agreement and repayment agreement.

(d) The applicant must complete an application, and must secure approvals of all documents required by the Department.

(e) The applicant must comply with the requirements of the Water Quality Act of 1987 and all applicable state laws, requirements and regulations.

(f) The applicant must establish a dedicated source of funds for repayment of the loan.

(g) The applicant must not be in violation of, or delinquent on, any provision of a previously awarded SRF loan agreement and repayment agreement.

(2) Payments from the fund to the loan recipient shall be made no more often than monthly, generally as construction is progressing. Except for program administration expenses, funds will not be disbursed from the construction fund without first entering into a legal and binding commitment with the Commission. Project payments are further described in Rule 4.3.G.

J. Responsibility. The applicant (or loan recipient) is responsible for the proper planning, design, construction, operation, maintenance, replacement, performance, and fiscal integrity of the project. The Department's approval of any document does not relieve the applicant (or loan recipient) or any others of any liabilities or responsibilities. Department approval of any document is for administrative purposes only and does not establish or convey any such liability or responsibility.

K. Other Approvals. The applicant (or loan recipient) shall obtain approval of all necessary documents from each state, local, and federal agency having jurisdiction over or funding in the project, if so required by that agency.

Notes

11 Miss. Code. R. 6-4.2

Miss. Code Ann. §§ 49-17-61 through 49-17-70, 49-17-81 through 49-17-89, 49-2-1, et seq. and 49-17-1, et seq.