Or. Admin. Code § 340-054-0022 - Clean Water State Revolving Fund Loans: Loan Application Requirements
(1) Application
submittal. DEQ will notify interested parties at least annually of the
opportunity to submit applications for a CWSRF loan. An eligible applicant may
submit a CWSRF loan application to DEQ at any time.
(2) Consideration for funding. DEQ will
consider an applicant for funding only if its project is included in the
Intended Use Plan and its application meets all of this division's
requirements.
(3) All CWSRF loans.
An applicant must submit the following to DEQ:
(a) A complete application on the applicable
DEQ form;
(b) Documents specified
in the DEQ checklist of loan application requirements;
(c) Audited financial statements for the
three years preceding the application date and the applicant's current budget,
unless waived in writing by DEQ;
(d) Evidence the applicant has the authority
to undertake the project including, but not limited to, evidence of a loan
approval resolution or similar authorization for signing a loan agreement and
establishing a loan reserve account;
(e) Evidence the applicant has authority to
collect and pledge the revenue offered as repayment for a CWSRF loan, repay a
loan and, where applicable, the ability to ensure ongoing operation and
maintenance of the proposed project. DEQ may require an applicant to meet the
following criteria for a revenue-secured loan described under OAR
340-054-0065(2)
or OAR 340-054-0066(2):
(A) An applicant's revenue stream is not at
risk from undue dependence on a limited portion of the system's or qualified
institution's customer base or a pattern of delinquent payment from that
portion of the system's or qualified institution's customer base, and
(B) An applicant must have the ability to
collect from delinquent customers;
(f) Pre-award compliance review report or
other evidence DEQ requires showing compliance with federal nondiscrimination
requirements;
(g) For projects
serving two or more public agencies, the executed inter-agency agreements,
contracts or other legally binding instruments necessary for financing,
constructing and operating the proposed project. The documents must be
satisfactory to DEQ for determining an adequate pledge of security;
(h) Evidence of resolution, ordinance or
other authorization approving bonds secured by sewer or other revenue sources
if required by DEQ;
(i) Official
statement of recently issued bonds if required by DEQ;
(j) A DEQ-approved certification that the
requirements for the cost and effectiveness analysis and the subsequent project
selection are completed as required by section 602(b)(13) of the CWA;
(k) Any other information DEQ requests as
necessary to complete the loan application.
(4) Local community loan. In addition to the
requirements in section (3) of this rule, a public agency applying for a CWSRF
local community loan must submit the following to DEQ:
(a) A description of how the project will
implement a nonpoint source control activity or estuary management
effort.
(b) A projected cash flow
statement based on anticipated number of local loans, their repayment schedule,
amount and timing of department disbursement and amount and timing of
repayments to DEQ.
(c) Unless
waived by DEQ, evidence of a user charge system or other source of revenue if
the applicant will be securing and repaying the loan with sewer system
revenues.
(d) Unless waived by DEQ,
demonstration of compliance with applicable federal environmental cross-cutting
authorities.
(e) Documentation that
demonstrates compliance with the land use requirements in OAR
340-018-0050.
(f) DEQ-approved plans and specifications
that comply with OAR chapter 340, division 52, unless waived by a DEQ
engineer.
(g) An environmental
determination obtained from DEQ for a nonpoint source pollution control (CWA
§ 319) or estuary management (CWA § 320) project that are
construction and treatment works as defined in ORS
468.423. The environmental
determination must meet the following conditions:
(A) An applicant must provide all necessary
documentation to support DEQ's review of the entire projects' potential
environmental impacts and include an analysis of a no action alternative and
other reasonable alternatives considered.
(B) Project construction must begin within
five years of the environmental determination.
(h) If an applicant does not obtain an
environmental determination as specified in subsection (4)(g) of this section,
an applicant may submit to DEQ, and DEQ may accept, an environmental
determination made by another agency that meets the following conditions:
(A) The project scope must be essentially
unchanged from the scope the other agency accepted.
(B) The other agency's determination must
have been made within the previous five years.
(C) The applicant met and documented the
federal environmental cross-cutting authorities.
(5) All design or construction
loans. In addition to the requirements in section (3) of this rule, an
applicant applying for a CWSRF design or construction loan must submit the
following to DEQ:
(a) Unless waived by DEQ,
evidence of a user charge system or other source of revenue if the applicant
will be securing and repaying the loan with sewer system revenues.
(b) Unless waived by DEQ, demonstration of
compliance with applicable federal environmental cross-cutting authorities for
a construction project.
(c) An
environmental determination obtained from DEQ for a construction project of a
treatment works as defined in ORS
468.423, including a nonpoint
source pollution control (CWA § 319) or estuary management (CWA §
320) project, that are construction and treatment works as defined in ORS
468.423. The environmental
determination must meet the following conditions:
(A) An applicant must provide all necessary
documentation to support DEQ's review of the entire projects' potential
environmental impacts and include an analysis of a no action alternative and
other reasonable alternatives considered.
(B) Project construction must begin within
five years of the environmental determination.
(d) If an applicant does not obtain an
environmental determination, as specified in subsection (5)(c) of this section,
an applicant may submit to DEQ, and DEQ may accept, an environmental
determination made by another agency that meets the following conditions:
(A) The project scope must be essentially
unchanged from that the other agency accepted.
(B) The other agency's determination must
have been made within the previous five years.
(C) The applicant met and documented the
federal environmental cross-cutting authorities.
(e) Documentation that demonstrates
compliance with the land use requirements in OAR
340-018-0050.
(f) For a construction-only loan,
DEQ-approved plans and specifications for the project as OAR chapter 340,
division 052 requires.
(g) If the
estimated cost of a wastewater treatment facility project is in excess of $10
million, a value engineering study satisfactory to DEQ done prior to beginning
construction. The study must be a specialized cost control technique
specifically applicable to the wastewater treatment facility design identifying
cost savings that can be made without sacrificing project reliability or
efficiency.
(6) Design
or construction loan for a point source project. In addition to the
requirements in sections (3) and (5) of this rule, an applicant applying for a
CWSRF design or construction loan for a point source project must submit the
following to DEQ:
(a) An engineered planning
document in the form of either a facility plan or project pre-design report
that provides a comprehensive evaluation of environmental factors, engineering
alternatives and financial considerations affecting the project area. This
document must adequately describe the effectiveness and suitability of the
proposed project to address the identified water quality problem. An applicant
must have DEQ review and approve this document before signing a design or
construction loan.
(b) Evidence of
a sewer use ordinance or equivalent authority that prohibits:
(A) New connections from inflow sources into
the wastewater collection system; and
(B) Introducing wastewater into the
wastewater collection system containing toxics or other pollutants in amounts
or concentrations that have the potential of endangering public safety,
adversely affecting the project or precluding selecting the most cost-effective
alternative for the project.
(c) When a public agency applies for a
wastewater facility construction loan that includes a sponsorship option,
complete information about the nonpoint source control or estuary management
activity on the applicable application form. DEQ will only consider a
sponsorship option if a nonpoint source control or estuary management activity
is included as part of the entire project scope.
(7) Design or construction loan for a
nonpoint source project. In addition to the requirements in sections (3) and
(5) of this rule, an applicant applying for a CWSRF design or construction loan
for a nonpoint source project must submit an engineered planning report to DEQ.
The report must define the water quality problem and specify actions an
applicant will implement to correct the problem.
(8) Federal loans. In addition to the
applicable requirements in sections (3)-(7) of this rule, a loan designated as
a federal loan must meet the requirements for federally funded projects in the
Clean Water Act Title VI and EPA's January 6, 2015, memo "Interpretive Guidance
for Certain Amendments in the Water Resources Reform and Development Act to
Titles I, II, V, and VI of the Federal Water Pollution Control Act."
(9) CDFI loans. In addition to requirements
in sections (3) and (5) of this rule, a qualified institution applying for a
CWSRF loan must submit:
(a) Documentation
demonstrating that all sub-loans will comply with applicable provisions of OAR
chapter 340, division 71 and chapter 340, division 73.
(b) A description of project eligibility
under OAR 340-054-0015(3).
(c) A projected cash flow statement based on
anticipated number of sub-loans, sub-loan repayment schedule, amount and timing
of sub-loan disbursements.
Notes
Publications referred to are not included here. The CWSRF Intended Use Plan is available from the agency. View a PDF of the EPA Interpretive Guidance by clicking on the "tables" link below.
To view attachments referenced in rule text, click here to view rule.
Statutory/Other Authority: ORS 468.020 & 468.440
Statutes/Other Implemented: ORS 468.423 - 468.440
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