5 Colo. Code Regs. § 1002-52.14
Current through Register Vol. 47, No. 11, June 10, 2024
Section 5 CCR 1002-52.14 - STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY AND PURPOSE (APRIL 14, 2014 RULEMAKING; EFFECTIVE DATE MAY 30, 2014)Sections 25-8-202(1)(g) and (o); and Section 37-95-107.8(4), C.R.S. provide the specific statutory authority for adoption of the attached regulatory amendments. The Commission also adopted, in compliance with section 24-4-103(4) C.R.S. the following statement of basis and purpose.
BASIS AND PURPOSE
The Commission took action to modify Regulation #52 by: removing the criteria for determining the priority assigned and including it in the Intended Use Plan (IUP); eliminating the categories and developing new criteria for determining a project's priority; establishing a Project Loan List that includes all projects that can be reasonably anticipated to receive a loan; and adding/deleting/revising definitions and updating other provisions. The Commission adopted these revisions for three principal reasons:
1. To provide a new emphasis on funding water projects based on a more holistic approach for addressing health and compliance consistent with subsection 52.3 of this regulation, while maintaining the current emphasis on providing funding opportunities for smaller, less financially capable communities; and2. To improve the function and transparency of the Drinking Water Revolving Fund loan process; and3. To better align the administration of the Drinking Water Revolving Fund program with the Water Pollution Control Revolving Fund program. The Commission's action to modify Regulation #52 will require revisions to the process for prioritizing projects, and the Commission is aware of the approach the Division, Authority, and DLG have developed to revise the project prioritization system for inclusion in the annual IUP. While the revised system will be proposed for consideration in a draft IUP, the Commission understands and appreciates that the Division, Authority, and DLG have conducted significant outreach to inform stakeholders of the draft approach that will be included in the IUP.
Specific modifications to Regulation #52 on a section-by-section basis are described below.
Section 52.2 - Definitions - Several new definitions were added to define terms used in the previous regulation, as well as terms added to the regulation. Several existing definitions were deleted as the terms were no longer used in the regulation. The Commission also revised existing definitions to clarify their intent or to make them consistent with the definition in other regulations or statute.Section 52.3 - Purpose - This section was modified to add General Policies to the heading to indicate that the Commission will promote regionalization and the beneficial use of residuals generated by water treatment technologies. Further, this section now clarifies the procedural processes for the Project Eligibility List and IUP.Section 52.5 - Procedures for Identifying Projects and Establishing the Project Eligibility List - The Commission renamed this section to delineate differences between the Project Eligibility List and Projected Loan List. This section lays out the broad approach to identify projects and to develop the Project Eligibility List. Project types were added that will be used to quantify types of projects listed on the Project Eligibility List. The Commission understands that these project types will not be used for the prioritization of funding.Section 52.6 - Procedures for Establishing the Projected Loan List and Distributing Funds - The Commission renamed this section to describe the process for developing the Projected Loan List and how funds will be disbursed. Further, the Commission deleted the previous concept of project categories that had been used to prioritize projects and replaced it with a new project priority system to be established in the annual IUP. This eliminates the previous approach of prioritizing projects based on category first, and then priority score within the respective category. Project proponents will have to provide information under the six identified factors in subsection 52.6 to allow for the required priority scoring. These factors are based on drinking water quality and public health, affordability indicators, Colorado Primary Drinking Water Regulations compliance, source protection and conservation, sustainability, and readiness to proceed that, taken together, will result in projects being funded that will help attain the protection of public health and other goals identified by the Division and the Commission. These factors will serve as a general guide for the Division, Authority, and DLG to establish specific criteria in the IUP upon which all projects will be evaluated and scored. The Commission anticipates that the Division will bring the prioritization model to the Commission for its consideration in an informational hearing prior to the administrative action hearing for the annual IUP. The Commission also established conditions under which the Division will identify projects that are within the fundable range based on a combination of readiness to proceed and priority score. This will allow the Division, Authority, and DLG to focus the bulk of their efforts on projects that are most likely to proceed during the coming year.
Section 52.7 - Disadvantaged Communities - The Commission revised section 52.7 to delete the requirement for periodic review of the disadvantaged community program, as the Commission finds that provision of funding to disadvantaged communities is an important aspect of the DWRF program, and that such funding should be provided when authorized. In addition, "Procedures" was deleted from the heading.Section 52.8 - Emergency Procedures-The Commission renamed the "Emergency Procedures" section to "Planning and Design Grants" since emergency procedures are outlined in the annual IUP. The Commission used this section to authorized funding of planning and design grants when such funding is available and approved in the IUP.38 CR 17, September 10, 2015, effective 9/30/2015