Utah Admin. Code R64-5-4 - Application Procedures

(1) An interrupted user who is eligible to receive a loan under Section R64-5-3 may apply to the department using a department created form.

(2) An application must contain all of the necessary information to be considered.

(3) An interrupted user may submit an application at any time during which the executive order declaring the temporary water shortage emergency is in place.

(4) In their application, the interrupted user shall provide sufficient information to establish:

(a) the basis by which the person is entitled to use of the water;

(b) the use of water that would have been made by the person without the interruption;

(c) the length of the interruption;

(d) a good faith estimate of the amount of water the person entitled to the use of water would otherwise have made;

(e) an estimate of the value of the water used, crop losses, and consequential damages incurred as a result of the interruption; and

(f) whether the interrupted user has previously received a loan from the commission for the same interruption of water use.

(5) The interrupted user shall provide any other information requested by the department, including any documentation related to the value of the water used, crop losses, and consequential damages.

(6) The department shall review applications for eligibility and determine the amount to be loaned, not to exceed $150,000 per loan.

(7) The amount determination in Subsection R64-5-4(5) shall be based on reliable third-party market and producer information, when available, as close as possible to the beginning date of the water delivery interruption.

(8) The amount determination in Subsection R64-5-4(5) may be made based on:

(a) for agriculture commodities, unit prices and base adjustments from:

(i) applicable United States Department of Agriculture crop pricing data sets;

(ii) Utah State University Extension data sets;

(iii) publications, fact sheets, and enterprise budget data sets published by a university;

(iv) documents provided by the interrupted user to establish historical product records; or

(v) other information made available to the department;

(b) for non agricultural products or services, the department may consider information from:

(i) other state agencies;

(ii) federal agencies;

(iii) industry leaders within Utah associated with the goods or service forgone by the interrupted user; or

(iv) other available information or experts; and

(c) for nonagricultural products or services, the department shall determine the number of units of nonagricultural goods and services during the temporary water shortage emergency by using industry standards or recent product or service records.

(9) Based on the recommendation of the program coordinator, the commission shall award loan contracts in the order that completed and eligible applications are received upon receipt of executed documents, including promissory notes and other documents that are agreed to and signed by the borrower.

(10) Each loan contract shall include a provision under which the borrower agrees to notify the department when they have reached an agreement with a preferential user and repay the loan within 30 days after they are paid in full.

(11) Loan contracts may include other provisions at the discretion of the department or program coordinator.

(12) The commission may issue loans only to the extent that there is money in the ARDL fund and the limit on outstanding loans under Subsection 4-18-106(6) has not been met.

Notes

Utah Admin. Code R64-5-4

Adopted by Utah State Bulletin Number 2024-04, effective 2/5/2024