Section 58.01.08.500 - DEMONSTRATION OF TECHNICAL, FINANCIAL, AND MANAGERIAL CAPACITY OF PUBLIC DRINKING WATER SYSTEMSNo person may proceed, or cause to proceed, with construction of a new community or non-transient, non-community PWS until they have demonstrated to the Department that the PWS will have adequate technical, financial, and managerial capacity, as defined in Section 003. Existing community or non-transient, non-community PWSs incapable of demonstrating technical, financial, or managerial capacity as identified through operational problems, may be required to submit technical, financial, and managerial documentation to the Department for review and approval. With the exception of water sources, demonstration of capacity must be submitted to the Department prior to or concurrent with the submittal of plans and specifications, as required in Section 39-118, Idaho Code, and Subsection 504.03. Plans and specifications for water sources may be submitted to the Department prior to demonstration of capacity for the PWS. The Department will issue its approval of the new PWS capacity demonstration in writing.
01.Technical Capacity. Demonstration of technical capacity must include the following: a. The PWS meets the relevant design, construction, and operating requirements of these rules;b. The PWS has an adequate and consistent source of water;c. A plan is in place to protect the water source and deal with emergencies;d. A plan exists for replacement or improvement of infrastructure as necessary; ande. The PWS has trained personnel with an understanding of the technical and operational characteristics of the PWS.02.Financial Capacity. Demonstration of financial capacity must include the following:a. Documentation that organizational and financial arrangements are adequate to construct and operate the PWS in accordance with these rules. This information can be provided by submitting estimated construction, operation, and maintenance costs, letters of credit, or other access to financial capital through public or private sources and, if available, a certified financial statement;b. Demonstration of revenue sufficiency, that includes but is not limited to billing and collection procedures; a proposed rate structure which demonstrates the availability of operating funds, revenues for depreciation and reserves, and the ability to accrue a capital replacement fund. A preliminary operating budget must be provided; andc. Adequate fiscal controls must be demonstrated.03.Managerial Capacity. Demonstration of managerial capacity, the must include the following:a. Clear documentation of legal ownership and any plans that may exist for transfer of that ownership upon completion of construction or after a period of operation;b. The name, address, and telephone number of the person who will be accountable for ensuring that the PWS is in compliance with these rules;c. The name, address, and telephone number of the responsible charge operator;d. A description of the manner in which the PWS will be managed. Information such as by-laws, restrictive covenants, articles of incorporation, or procedures and policy manuals which describe the management organizational structure must be provided;e. A recommendation of staff qualifications, including training, experience, certification or licensing, and continuing education;f. An explanation of how the PWS will establish and maintain effective communications and relationships between the PWS management, its customers, professional service providers, and any applicable regulatory agencies; andg. Evidence of planning for future growth, equipment repair and maintenance, and long term replacement of system components.04.Submittal. The PWS owner may request guidance on how to prepare a capacity document submittal from the Department, the guidance is available on the Department website at http://www.deq.idaho.gov.05.Expanding Systems. A PWS which comes into existence as a result of growth in population or number of service connections within a previously unregulated system will be considered a new PWS under these rules and is subject to all design, construction, and operating requirements herein.06.Consolidation. In demonstrating new PWS capacity, the owner of the proposed new PWS must investigate the feasibility of obtaining water service from an established PWS. If such service is available, but the owner elects to proceed with an independent PWS, the owner must explain why this choice is in the public interest in terms of environmental protection, affordability to water users, and protection of public health.07.Exclusion. New PWSs which are public utilities as defined in Sections 61-104 (Corporation), 61-124 (Water System), 61-125 (Water Corporation), and 61-129 (Public Utility), Idaho Code, must meet the regulatory requirements of the Idaho Public Utilities Commission (IPUC) in Chapter 1, Title 61, Idaho Code, Public Utilities Law, and IDAPA 31.01.01, "Rules of Procedure of the Idaho Public Utilities Commission." Such water systems will not be required to meet any requirements of this Section which are in conflict with the provisions and requirements of the IPUC.Idaho Admin. Code r. 58.01.08.500