File No. 34553
This rule was published in the May 1, 2011, issue (Vol. 2011, No. 9) of the Utah State Bulletin.
Environmental Quality, Drinking Water
Section R309-705-6
Applicant Priority System and Selection of Terms of Assistance
Notice of Proposed Rule
(Amendment)
DAR File No.: 34553
Filed: 04/04/2011 03:20:08 PM
RULE ANALYSIS
Purpose of the rule or reason for the change:
The purpose of this change is to revise the point system in Table 2 in Section R309-705-6, which is used to calculate interest rates for loans under the federal revolving loan program administered by the Division of Drinking Water, to be more compatible with the goals of the Drinking Water Board.
Summary of the rule or change:
This rule defines the federal Drinking Water Revolving Loan Program as administered by the Division of Drinking Water including; definitions, eligible applicants, eligible projects, funding options, interest rate calculations, project priority calculations, etc.
State statutory or constitutional authorization for this rule:
- Title 73, Chapter 10c
- 42 USC 300j et seq.
Anticipated cost or savings to:
the state budget:
Information used to calculate interest rates is already included in the funding application. The amended rule simply reallocates the points to be more compatible with the objectives of the Drinking Water Board. No additional staff time and no additional costs or savings are anticipated.
local governments:
None anticipated, data collection is already part of the application process.
small businesses:
None anticipated, data collection is already part of the application process.
persons other than small businesses, businesses, or local governmental entities:
None anticipated, data collection is already part of the application process.
Compliance costs for affected persons:
None anticipated, data collection is already part of the application process.
Comments by the department head on the fiscal impact the rule may have on businesses:
The Department of Environmental Quality agrees with the comments in the cost and compliance summaries above.
Amanda Smith, Executive Director
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
Environmental QualityDrinking Water
195 N 1950 W
SALT LAKE CITY, UT 84116-3085
Direct questions regarding this rule to:
- Kenneth Wilde at the above address, by phone at 801-536-0048, by FAX at 801-536-4211, or by Internet E-mail at kwilde@utah.gov
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:
05/31/2011
This rule may become effective on:
07/01/2011
Authorized by:
Ken Bousfield, Director
RULE TEXT
R309. Environmental Quality, Drinking Water.
R309-705. Financial Assistance: Federal Drinking Water State Revolving Fund (SRF) Loan Program.
R309-705-6. Applicant Priority System and Selection of Terms of Assistance.
(1) Priority Determination.
The Board may, at its option, modify a project's priority rating based on the following considerations:
(a) The project plans, specifications, contract, financing, etc., of a lesser-rated project are ready for execution.
(b) Available funding.
(c) Acute health risk.
(d) Capacity Development (financial, technical, or managerial issues needing resolution to avoid EPA intervention).
(e) An Emergency.
The Board will utilize Table 1 to prioritize loan applicants as may be modified by (a), (b), (c), or (d) above.
TABLE 1
Priority System
Deficiency Description Points
Received
Source Quality/Quantity
Health Risk (select one)
A. There is evidence that waterborne illnesses have
occurred. 25
B. There are reports of illnesses which may be waterborne. 20
C. High potential for waterborne illness exists. 15
D. Moderate potential for waterborne illness 8
E. No evidence of potential health risks 0
Compliance with SDWA (select all that apply)
A. Source has been determined to be under the influence of
surface water. 25
B. System is often out of water due to inadequate source
capacity. 20
-or-
System capacity does not meet the requirements of UPDWR. 10
C. Source has a history of three or more confirmed
microbiological violations within the last year. 10
D. Sources are not developed or protected according 10
to UPDWR.
E. Source has confirmed MCL chemistry violations within
the last year. 10
Total 100
Treatment
Points
Deficiency Description Available
Health Risk/Compliance with SDWA (select all that apply)
A. Treatment system cannot consistently meet log removal
requirements, turbidity standards, or other
enforceable drinking water quality standards. 25
B. The required disinfection facilities are not
installed, are inadequate, or fail to provide adequate
water quality. 25
C. Treatment system is subject to impending failure, 25
or has failed.
-or-
Treatment system equipment does not meet demands 20
of UPDWR including the lead and/or copper action levels.
-or-
System equipment is projected to become inadequate 5
without upgrades.
Total 75
Storage
Points
Deficiency Description Available
Health Risk / Compliance with SDWA (select all that apply)
A. Storage system is subject to impending failure, or has 25
failed.
-or-
System is old, cannot be easily cleaned, or subject 15
to contamination.
B. Storage system is inadequate for existing demands. 20
-or-
Storage system demand exceeds 90% of storage capacity. 10
C. Applicable contact time requirements cannot be met
without an upgrade. 15
D. System suffers from low static pressures. 15
Total 75
Distribution
Points
Deficiency Description Available
Health Risk/Compliance with SDWA (select all that apply)
A. Distribution system equipment is deteriorated or 20
inadequate for existing demands.
-or-
Distribution system is inadequate to meet 5 year 10
projected demands.
B. Applicable disinfectant residual maintenance 20
requirements are not met or high backflow contamination
potential exists.
C. Project will replace pipe containing unsafe materials 15
(lead, asbestos, etc).
D. Minimum dynamic pressure requirements are not met. 10
E. System experiences a heavy leak rate in the 10
distribution lines.
Total 75
Emergencies
Upon the Board finding of an emergency as required by
R309-705-9. Total 100
Priority Rating = (Average Points Received) x (Rate Factor) x (AGI Factor)
Where:
* Rate Factor = (Average System Water Bill/Average State
Water Bill)
** AGI Factor = (State Median AGI/System Median AGI)
(2) Financial Assistance Determination. The amount and type of financial assistance offered will be based upon the criteria shown in Table 2. As determined by Board resolution, disadvantaged communities may also receive zero-percent loans, or other financial assistance as described herein.
Effective rate calculation methods will be determined by Board resolution from time to time, using the Revenue Bond Buyer Index (RBBI)as a basis point, the points assigned in Table 2, and a method to reduce the interest rate from a recent RBBI rate down to a potential minimum of zero percent. To encourage rapid repayment of a loan the Board will increase the interest rate 0.02 per cent (0.02%) for each year the repayment period exceeds five (5.0) years.
TABLE 2
INTEREST, HARDSHIP GRANT FEE AND OTHER FEES REDUCTION FACTORS
POINTS
1. COST EFFECTIVENESS RATIO (SELECT ONE)
A. Project cost $0 to $500 per benefitting
connection [13]16
B. $501 to $1,500 [11]14
C. $1,501 to $2,000 [9]11
D. $2,001 to $3,000 [6]8
E. $3,001 to $5,000 [3]4
F. $5,001 to $10,000 1
G. Over $10,000 0
2. CURRENT LOCAL MEDIAN ADJUSTED GROSS INCOME (AGI) (SELECT ONE)
A. Less than 70% of State Median AGI [16]19
B. 71 to 80% of State Median AGI [14]16
C. 81 to 95% of State Median AGI [12]13
D. 96 to 110% of State Median AGI 9
E. 111 to 130% of State Median AGI 6
F. 131 to 150% of State Median AGI 3
G. Greater than 150% of State Median AGI 0
3. APPLICANT'S COMMITMENT TO PROJECT
PROJECT FUNDING CONTRIBUTED BY APPLICANT (SELECT ONE)
A. Greater than 25% of project funds [15]17
B. 15 to 25% of project funds [12]14
C. 10 to 15% of project funds [9]11
D. 5 to [9]10% of project funds [6]8
E. 2 to [4]5% of project funds [3]4
F. Less than 2% of project funds 0
4[and 5]. ABILITY TO REPAY LOAN:
4. WATER BILL (INCLUDING TAXES) AFTER PROJECT IS
BUILT RELATIVE TO LOCAL MEDIAN ADJUSTED GROSS
INCOME (SELECT ONE)
A. Greater than 2.50% of local median AGI [15]16
B. 2.01 to 2.50% of local median AGI [11]12
C. 1.51 to 2.00% of local median AGI [7]8
D. 1.01 to 1.50% of local median AGI 3
E. 0 to 1.00% of local median AGI 0
[5. TOTAL DEBT LOAD (PRINCIPAL ONLY) OF APPLICANT AFTER]5. SPECIAL INCENTIVES: Applicant (SELECT ALL THAT APPLY.)
PROJECT IS CONSTRUCTED (INCLUDING WATER AND SEWER DEBT,
LIGHTING DEBT, SCHOOL DEBT, ETC.) (SELECT ONE)
A. Greater than 12% of fair market value 15
B. 8.1 to 12% of fair market value 12
C. 4.1 to 8.0% of fair market value 9
D. 2.1 to 4.0% of fair market value 6
E. 1.0 to 2.0% of fair market value 3
F. Less than 1% of fair market value 0
6
A. [h]Has a replacement fund receiving annual deposits
of about 5% of the system's annual drinking water
(DW) budget[,] and fund has already accumulated a
minimum of 10[25]% of said annual DW budget in
this reserve fund. 5
B. Has, in addition to item 5.A., accumulated an
amount equal to at least 20% of its annual DW
budget in its replacement fund. 5
[B.]C. [i]Is creating or enhancing a regionalization plan 16
[C.]D. [h]Has a rate structure encouraging conservation [5]6
TOTAL POSSIBLE POINTS FOR FINANCIAL NEED 100
KEY: SDWA, financial assistance, loans
Date of Enactment or Last Substantive Amendment: [January 28, 2009]2011
Notice of Continuation: March 23, 2010
Authorizing, and Implemented or Interpreted Law: 19-4-104; 73-10c
Additional Information
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For questions regarding the content or application of this rule, please contact Kenneth Wilde at the above address, by phone at 801-536-0048, by FAX at 801-536-4211, or by Internet E-mail at kwilde@utah.gov.