Current through Register Vol. XLI, No. 45, November 8, 2024
Section 64-49-5 - Project and System Eligibility5.1. Both community and non-community non-transient public water systems are eligible for drinking water treatment revolving fund funding, with the following exceptions: 5.1.a. For-profit non-community non-transient water systems; and5.1.b. Federally owned public water systems.5.2. The eligible system shall not be significantly out of compliance with any national or State drinking water rules, regulations or variances unless the division determines that the proposed project will enable it to come into compliance. The system shall provide assurances to the division that the proposed project will enable the system to attain compliance.5.3. Subdivisions 5.3.a through 5.3.g list examples of some of the types of projects that may be funded by the drinking water treatment revolving fund. The examples listed are not to be construed as an exhaustive or limiting list of potentially eligible projects. 5.3.a. Examples of eligible public health and compliance projects are projects to: 5.3.a.1. Facilitate compliance;5.3.a.2. Further health protection objectives;5.3.a.3. Address exceedances of action levels and maximum contaminant levels (MCL=s) specified in the Division of Health Legislative Rule, Public Water Systems, 64 CSR 3;5.3.a.4. Prevent future violations; and5.3.a.5. Maintain compliance.5.3.b. Examples of eligible restructuring projects are projects to: 5.3.b.1. Upgrade or replace infrastructure to continue to provide the public with safe drinking water;5.3.b.2. Replace aging infrastructure, including, but not limited projects to: 5.3.b.2.A. Rehabilitate or develop water sources to replace contaminated sources;5.3.b.2.B. Install or upgrade treatment facilities, if the installation or upgrading will improve the quality of drinking water to comply with federal primary or secondary drinking water standards as adopted in the Division of Health Legislative Rule, Public Water Systems, 64 CSR 3;5.3.b.2.C. Install or upgrade storage facilities to prevent microbiological contaminants from entering the water system; and5.3.b.2.D. Install or replace transmission and distribution pipes to prevent contamination caused by leaks or breaks in the pipe, or improve water pressure to safe levels.5.3.c. Projects to consolidate water supplies are eligible when: 5.3.c.1. Individual homes or public water systems have an inadequate quantity of water;5.3.c.2. A water supply is contaminated; or5.3.c.2.A. The system is unable to maintain compliance for financial or managerial reasons.5.3.d. The purchase of a portion of another system's capacity is eligible for a loan, if the system to be purchased is a small system which is part of a consolidation plan to bring the system into compliance, and it is the most cost-effective solution for that small system, when considering the buy-in and user fees.5.3.e. The costs of project planning, design and other related costs are eligible for drinking water treatment revolving fund funding. Funding of the design of a project does not guarantee funding of the project construction. The design loan assistance amounts shall be described in the annual intended use plan.5.3.f. Costs of preparing environmental assessment reports (Section 11 of this rule) may be included as part of costs of planning the project and are eligible costs from the drinking water treatment revolving fund. The cost for the State to review the environmental assessments is not eligible under the drinking water treatment revolving fund and is considered administrative costs.5.3.g. Land is an eligible cost only if it is integral to a project that is needed to meet or maintain compliance and further public protection. In this instance, land that is integral to a project is only the land needed to locate eligible treatment or distribution projects.5.4. The following projects and activities are not eligible for drinking water treatment revolving fund assistance:5.4.a. Dams or rehabilitation of dams;5.4.b. Water rights, except if the water rights are owned by a system that is being purchased through consolidation as part of a capacity development strategy;5.4.c. Reservoirs, except for finished water reservoirs that are part of the treatment process and are located on the property where the treatment facility is located;5.4.d. Laboratory fees for monitoring;5.4.e. Operation and maintenance expenses;5.4.f. Projects needed mainly for fire protection;5.4.g. Projects for systems in significant non-compliance, unless funding will ensure compliance; and5.4.h. Projects primarily intended to serve future growth.5.5. Projects which are designed solely for growth are not eligible for drinking water treatment revolving fund assistance, although reasonable growth may be part of an eligible project.5.6. Current and future monitoring, operation and maintenance expenditures are not eligible for drinking water treatment revolving fund assistance.