62-503.200. Definitions

For purposes of this rule chapter:

(1) “Act” means the Federal Water Pollution Control Act, 33 USC §1251 et seq., as amended, June 2014, by the Water Resources Reform and Development Act, also known as the amended Clean Water Act. Sections 212 (33 USC §1292), 319 (33 USC §1329), and 320 (33 USC §1330) and Title VI (33 USC §1381 et seq.) of the Act pertain to the Clean Water State Revolving Fund, and are hereby adopted and incorporated by reference. This document is available from the Department’s Clean Water State Revolving Fund Program, 3900 Commonwealth Blvd., MS 3505, Tallahassee, Florida 32399-3000, or at http://www.flrules.org/gateway/reference.asp?No=Ref-14062.

(2) “Affordability Index” The term “Affordability Index” means the empirical number that is generated for a local governmental agency-project sponsor using the computer model entitled “Final Report Statistical Wt. – No Sales,” which is based on a combination of median household income, poverty, and unemployment census statistics for local governments. This computer model can be found in “Updating the Department of Environmental Protection’s Affordability Index, 2011,” August 9, 2011, Economics Department, Florida State University, Tallahassee, Florida, and is hereby adopted and incorporated by reference. This document is available from the Department’s Clean Water State Revolving Fund Program, 3900 Commonwealth Blvd., MS 3505, Tallahassee, Florida 32399-3000, or at http://www.flrules.org/gateway/reference.asp?No=Ref-04016.

(3) “Asset Management Plan” means a systematic management technique for utility systems that focuses on the long-term life cycle of the assets and their sustained performance, rather than on short-term, day-to-day aspects of the assets. This plan includes the identification of and costs for rehabilitating, repairing, or replacing all assets as well as the schedule to do so. Subsection 62-503.700(7), F.A.C., provides details on the contents of the plan.

(4) “Best management practice” means a control technique that is used for a given set of conditions to achieve water quality and water quantity enhancement at a feasible cost.

(5) “Capitalization grant project” means a project for which the project sponsor shall document compliance with specific federal requirements under subsection 62-503.700(1), F.A.C., in addition to the general requirements under subsections 62-503.700(2) through (7), F.A.C., to qualify for a loan. Capitalization grant projects will be identified in an amount corresponding to the annual capitalization grant received by the Department from the United States Environmental Protection Agency (EPA).

(6) “Capitalized interest” means interest accruing at the loan financing rate and compounding annually from the time when disbursements are made until six months before the first semiannual loan repayment is due.

(7) “Construction costs” means costs associated with allowable construction, equipment, materials, and demolition.

(8) “Construction loan” means an assistance agreement to fund a wastewater, stormwater, or nonpoint source construction project, equipment purchase, or wastewater system acquisition. To be eligible for a construction loan, a planning document and plans and specifications must be accepted by the Department, the environmental review process described in Rule 62-503.751, F.A.C., must be complete, all required Department permits and authorizations must have been obtained, and all necessary site certifications must have been submitted to the Department. Plans, specifications, construction permits, and site certifications are not required for a wastewater system acquisition. For design/build projects using a best value procurement process, the approval of the procurement process shall be accepted in lieu of the plans, specifications, site certifications, and permits unless any portion of these documents are available at that time. The requirements for planning documents are described in subsection 62-503.700(2), F.A.C., and the requirements for plans and specifications are described in subsection 62-503.700(3), F.A.C.

(9) “Construction manager at risk” means a firm or other single entity that contracts with the project sponsor for a guaranteed maximum price for the work. The construction manager is responsible for performance under individual construction contracts.

(10) “Continuing contract” shall have the same meaning as provided in the Consultants’ Competitive Negotiation Act (CCNA), Section 287.055, F.S.

(11) “Cost-effective” means the lowest present worth (or equivalent annual value) of the implementable and environmentally acceptable alternatives to achieve the project sponsor’s objectives considering capital costs as well as operation and maintenance costs.

(12) “Department” means the Department of Environmental Protection, Clean Water State Revolving Fund Program, 3900 Commonwealth Blvd., MS 3505, Tallahassee, FL 32399-3000. For electronic information requests and submittals, email [e-mail].

(13) “Design/build” means a contracting procedure whereby a firm or other single entity contracts with the project sponsor for a fixed price or a cost-plus-a-fixed-fee with a guaranteed maximum price, and is responsible for both design and construction of the project. The procurement process must be competitive best value or competitive qualifications based. For a competitive best value selection, the most advantageous proposal to the project sponsor is selected based on criteria that include price and other factors. For competitive qualifications based procurement, the qualifications of the responsible firm are the primary consideration in the selection process and the responsible firm shall use open book accounting for this process.

(14) “Design loan” means an assistance agreement to fund design activities that will result in biddable, permittable plans and specifications for an eligible construction project. Design/build projects using a best value procurement process are not eligible for a design loan. Additionally, a planning document defining the scope of the project to be funded must have been accepted by the Department. The requirements for an acceptable planning document are described in subsection 62-503.700(2), F.A.C.

(15) “Financial hardship” means a situation where the affordability index of a small community to be served by the project is less than 100.

(16) “Financing rate” means the semiannual compounding rate at which charges are imposed on the unpaid principal, including capitalized interest, of a State Revolving Fund (SRF) loan as described in subsection 62-503.300(5), F.A.C. The financing rate has a loan interest rate component and, for non-capitalization grant project loans, a grant allocation assessment rate component.

(17) Fiscal Sustainability Plan (FSP) means a plan to be implemented by the project sponsor to perform an initial and continued inventory and evaluation of treatment works proposed for repair, replacement, or expansion in accordance with Section 603 of the Act (33 USC § 1383).

(18) “Fiscal year” means the 12-month period between July 1 and the following June 30.

(19) “Fundable portion” means the portion of a priority list consisting of the projects to which funds allocated each year by the Department have been assigned.

(20) “Funds allocated each year by the Department” means funds that are available or expected to be available for loans during the fiscal year for which a priority list is being developed as a result of the following:

(a) Federal capitalization grants and state appropriations less the amount of any funds appropriated or statutorily designated for specific projects or purposes;

(b) Loan repayments;

(c) Investment earnings;

(d) Net proceeds of bonds issued by the Florida Water Pollution Control Financing Corporation; and,

(e) Funds recovered from loan decreases.

(21) “Grant allocation assessment” means that portion of each repayment of each non-capitalization grant project loan used solely for the purpose of making wastewater grants to financially disadvantaged small communities under Section 403.1838, F.S. The grant allocation assessment is in addition to the principal and interest portions of each non-capitalization grant project loan repayment and is included as a component of the financing rate.

(22) “Inflow/infiltration or I/I project” means a project to reduce excessive inflow or infiltration into the collection system. Infiltration is considered excessive when the total flow exceeds 120 gallons per capita per day during periods of dry weather. Inflow is considered excessive when the total flow exceeds 275 gallons per capita per day during a rain event. Documentation shall include influent flow rates, rainfall records and the population of units connected to the treatment system or lift station.

(23) “Green project” means a project that demonstrates water or energy efficiency, uses an environmentally innovative approach to treat wastewater or stormwater, or a stormwater project that restores the natural hydrology. The requirements for meeting one or more of these categories are provided in Attachment 2 of EPA’s “Procedures for Implementing Certain Provisions of EPA’s Fiscal Year 2012 Appropriation Affecting the Clean Water and Drinking Water State Revolving Fund Programs,” March 2012, and Change to the Clean Water State Revolving Fund Green Project Reserve Guidance, February 2017, hereby adopted and incorporated by reference. This document is available from the Department’s Clean Water State Revolving Fund Program, 3900 Commonwealth Blvd., MS 3505, Tallahassee, Florida 32399-3900, or at http://www.flrules.org/gateway/reference.asp?No=Ref-03910 and at http://www.flrules.org/gateway/reference.asp?No=Ref-14064. For energy efficiency projects the recipient shall provide a certification. The certification must state that the accepted project was designed to maximize energy efficiency. Certifications by a certified energy manager (CEM) or a certified energy auditor (CEA) are acceptable. CEMs and CEAs must be certified by the Association of Energy Engineers or equivalent national or international organization. Information on these certifications is available at: http://www.aeecenter.org/certifications.

(24) “Leveraged loan” means a loan issued by the Florida Water Pollution Control Financing Corporation (FWPCFC).

(25) “Loan Service Fee” means a fee paid by the project sponsor in an amount that ranges from two to four percent of the total loan amount less the portion of the loan for capitalized interest and shall not be included in the principal of the loan. The loan service fee shall be estimated at the time of execution of the loan agreement, revised with any increase or decrease amendment, and shall be finalized in the final loan amendment based on the total loan disbursed.

(26) “Planning loan” means an assistance agreement to perform the initial planning and administration for a project. The deliverable for this loan shall be a planning document or a sewer system evaluation study. The requirements for the planning document are described in subsection 62-503.700(2), F.A.C. A planning loan shall not be used to acquire any interest in real property.

(27) “Planning portion” means the portion of the priority list consisting of projects that do not qualify for the fundable or waiting portion.

(28) “Pledged revenue” means revenue specifically approved by the Department and dedicated to the repayment of the loan.

(29) “Priority list” means the annual listing of fundable, waiting, and planning portion projects.

(30) “Project” means as follows:

(a) For funding as a result of section 212 of the Act, devices and systems associated with wastewater, reclaimed water or stormwater management facilities; and,

(b) For funding as a result of either section 319 or 320 of the Act, devices and systems or implementation of best management practices associated with nonpoint source water pollution control.

(31) “Project costs” means costs for planning, design and construction, procurement of equipment and materials, contingency, demolition, legal and technical services, land acquisition, wastewater system acquisition, and capitalized interest.

(32) “Project sponsor” means a local government, nonprofit utility, or not-for-profit utility eligible under the Act or other entity eligible as a result of sections 319 and 320 of the Act to receive a loan. An eligible project for a nonprofit or not-for-profit utility is limited to projects that support water conservation, energy efficiency, and reuse as defined in Section 603 of the Act (33 USC §1383).

(33) “Request for Inclusion” means completed Form RFI 1, Request for Inclusion on the Clean Water Priority List, effective 3-9-22, which is hereby adopted and incorporated by reference. This form is available from the Department’s Clean Water State Revolving Fund Program, 3900 Commonwealth Blvd., MS 3505, Tallahassee, Florida 32399-3000, or at http://www.flrules.org/Gateway/reference.asp?No=Ref-14066.

(34) “Segment cap” means the maximum amount available to any one sponsor during a fiscal year. The segment cap amount shall be established at a public meeting approving the priority list and shall be less than 25 percent of the funds available. Adjustments to the segment cap amount shall be made at a list management public meeting if additional funds become available and all projects eligible for placement on the fundable portion of the priority list at the most recent list approval or list management public meeting have been funded.

(35) “Septic tank failure” means a condition existing within an onsite sewage treatment and disposal system that prohibits the system from functioning in a sanitary manner and that results in the discharge of untreated or partially treated wastewater onto the surface of the ground, into surface water, into ground water, or that results in the failure of building plumbing to discharge properly. However, for the purposes of this rule, failures resulting from improper maintenance of the system or lack of maintenance shall not be considered a septic tank failure.

(36) “Service Area” means that area currently served by the project sponsor and any additional area proposed to be served by the sponsor’s project.

(37) “Small community” means a municipality or unincorporated community with a total population of 10,000 or less as of the most recent decennial census.

(38) “Waiting portion” means the portion of a priority list consisting of projects that are qualified to be on the fundable portion but cannot be placed on the fundable portion until there are sufficient funds.

(39) “Useful life” means for land – 100 years; conveyance pipes – 50 years; other structures such as buildings and tankage – 30 to 50 years; process equipment – 15 to 20 years; and auxiliary equipment such as power generators and controls – 10 to 15 years.

(40) The following terms and phrases used throughout this rule chapter have the meaning given these words in Section 287.012, 403.1835, 403.1837 or 403.031, F.S.: best value, FWPCFC, and local governmental agencies.

Rulemaking Authority 403.1835(10) FS. Law Implemented 403.1832, 403.1835, 403.031, 403.1837 FS. History–New 4-17-89, Amended 12-4-91, 2-23-94, Formerly 17-503.200, Amended 1-4-98, 7-1-99, 2-6-02, 7-29-04, 4-22-14, 3-9-22.