The Small Community Wastewater Facilities Grants Program is governed by Chapter 62-505, F.A.C., and awards grants to assist financially disadvantaged small communities with their needs for adequate sewer facilities. Amendments to Chapter 62-505, F....

 

DEPARTMENT OF ENVIRONMENTAL PROTECTION

RULE NOS.:RULE TITLES:

62-505.200Definitions

62-505.300General Program Information

62-505.350Grant Funding

62-505.600Priority List Information

62-505.700Planning, Design, Construction, and Procurement Requirements

62-505.750Environmental Review

62-505.800Audit Required

PURPOSE AND EFFECT: The Small Community Wastewater Facilities Grants Program is governed by Chapter 62-505, F.A.C., and awards grants to assist financially disadvantaged small communities with their needs for adequate sewer facilities. Amendments to Chapter 62-505, F.A.C., are proposed to incorporate amendments to the authorizing statutes, incorporate changes made by the Water Resources Reform and Development Act of 2014, and to make the rules consistent with the rules for the Clean Water State Revolving Fund (Chapter 62-503, F.A.C.).

SUMMARY: Rule 62-505.200, F.A.C., is being amended to include the definitions contained in Rule 62-503.200, F.A.C. New definitions for “construction grant”, “design grant”, and “planning grant” are being proposed to provide clarification on the requirements for each type of grant available. Rule 62-505.300, F.A.C., establishes the types of projects eligible for funding. Proposed changes include streamlining grant projects by using the Clean Water State Revolving Fund loan process and the requirement of implementing an asset management plan for construction projects. The project priority ranking system was moved to paragraph 62-505.300(2)(c)  F.A.C., where the base grant priority score is determined by the priority system used in the Clean Water State Revolving Fund, contained in subparagraphs 62-503.300(e)1. through 62-503.300(e)4., F.A.C. Revisions to Rule 62-505.350, F.A.C. include moving both the allowable and ineligible project costs to this section, establishing the grant amount, and the grant percentage to be applied for each project type.

OTHER RULES INCORPORATING THIS RULE: 62-503.500, F.A.C.

EFFECT ON THOSE OTHER RULES: The reference from Rule 62-503.500, F.A.C. will not need to be amended to reflect changes in Chapter 62-505, F.A.C.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein:

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 403.1835 F.S., 403.1838 FS.

LAW IMPLEMENTED: 403.1838 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: Wednesday, June 30, 2016, 9:00 a.m. until conclusion, but no later than 1:00 p.m.

PLACE: Conference rooms A & B of the Douglas Building at 3900 Commonwealth Blvd., Tallahassee, FL 32399

Webinar access to the hearing is available via: https://meet.lync.com/floridadep/thomas.montgomery/2QKDK08D. The webinar has a limitation on the number of participants, so please consider sharing access with other participants, if possible. Audio of the hearing is available by calling 1(888)670-3525. Please enter 2872804152 then #.

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Thomas Montgomery at [phone] or email at [e-mail].. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Thomas Montgomery at [phone] or email at [e-mail]. (OGC NO. 13-0005)

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

CHAPTER 62-505

SMALL COMMUNITY WASTEWATER FACILITIES GRANTS

62-505.200 Definitions.

Substantial rewording of Rule 62-505.200 follows. See Florida Administrative Code for present text.

For the purposes of this Rule, the definitions to be used in Chapter 62-505, F.A.C., are those set forth in Rule 62-503.200, F.A.C.  In addition to the definitions set forth in Rule 62-503.200, F.A.C., the following definitions apply:

(1) “Construction grant” means the grant amount that will be incorporated in a State Revolving Fund construction loan.

(2) “Design grant” means the grant amount that will be incorporated in a State Revolving Fund design loan.

(3) “Planning grant” means the grant amount that will be incorporated in a State Revolving Fund Planning loan.

Rulemaking Authority 403.1835(10) FS. Law Implemented 403.1835, 403.1838 FS. History–New 11-30-98, Amended 7-22-99, 1-25-07, 8-30-07, __________.

 

62-505.300 General Program Information.

Substantial rewording of Rule 62-505.300 follows. See Florida Administrative Code for present text.

(1)Eligibility and Availability.

(a)To be eligible for funding under this chapter, the project sponsor must be a “financially disadvantaged small community” as defined in Section 403.1838(2), Florida Statutes.

(b)Funding under this chapter is available in the form of grants at the planning, design, and construction phases of a project as well as for inflow/infiltration projects. Projects shall compete separately for grant funding at each project phase; a project that obtains grant funding at one project phase is not guaranteed funding at any other project phase.

(c)Grants under this chapter are available only for project phases that have received a State Revolving Fund loan under Chapter 62-503, F.A.C.  The planning, design, construction, and procurement requirements of subsections 62-503.700(2) through (6), F.A.C., and the environmental review requirements of Rule 62-503.751, F.A.C., shall be met for all projects funded under this chapter.

(d)Grants under this chapter are available at the construction phase of a project only if the project sponsor adopts and implements, prior to the final disbursement of the associated State Revolving Fund construction loan, an asset management plan that meets all requirements of subsection 62-503.700(7), F.A.C.

(e)A project sponsor may have only one active grant under this chapter or one active State Revolving Fund loan with principal forgiveness under Chapter 62-503, F.A.C. A project sponsor may not have both an active grant under this chapter and an active State Revolving Fund loan with principal forgiveness under Chapter 62-503, F.A.C. A grant or loan shall be considered active until the final disbursement has been paid by the Department. The Department shall consider a request for an exception to the requirements of this paragraph when the request meets the requirements of Rule 62-503.850, F.A.C.

(2)Steps involved in obtaining a Small Community Wastewater Facility Grant:

(a)Request for Inclusion. The project sponsor shall submit to the Department a completed Request for Inclusion form as provided for under subsection 62-503.200(30), F.A.C., for a State Revolving Fund loan to establish project ranking as outlined in Rule 62-503.300, F.A.C., and to determine if grant assistance is available for the project. A Request for Inclusion form shall be submitted separately for the planning, design, and construction phases of a project.

1.The Department shall review each Request for Inclusion to verify eligibility and the accuracy of the information provided.

2.Additional information shall be requested by the Department when the data provided by the project sponsor are incomplete or unclear.

(b)Documentation required for consideration at a priority list public meeting. To be considered at a priority list public meeting, the project sponsor shall have postmarked or delivered to the Department all required documentation no later than 45 days prior to the priority list public meeting and shall have responded to all Department comments related to the required documentation by submitting complete responses to the Department at least 15 days prior to the priority list public meeting. The required documentation for grants is the same as the required documentation from subsection 62-503.300(1)(b), F.A.C., for State Revolving Fund (SRF) loans under Chapter 62-503, F.A.C. In addition the following also shall apply:

1.The project sponsor shall notify the Department that a grant is being requested.

2.The Department shall notify the project sponsor if the project qualifies for grant assistance, and if so, what the estimated grant percentage will be.

3.The project sponsor shall notify the Department of its intentions with regards to proceeding with the project.

4.If the project sponsor elects to proceed with the project, the project shall compete for funding at the next priority list public meeting based on priority score.

(c)Priority system. Timely submitted projects shall be given a final priority score as follows:

1.Base priority score. Each grant project shall receive a base priority score (BPS). The BPS shall be determined by the scoring method established in subsections 62-503.300(e)1. through 62-503.300(e)4., F.A.C.

2.Negative population trend. If the population of the sponsor of the project has decreased by more than 20% between the most recent and the previous decennial census, then an additional 25 points shall be added to the BPS.

3.End of useful life. The BPS shall be increased by 25 points if the project replaces any component that has exceeded its maximum expected useful life as determined using the upper end of the useful life ranges listed in rule 62-503.200(36), F.A.C.

(d)Development of Priority List. The Department shall rank projects in final priority score order with the highest score at the top of the priority list. Once the available grant funds have been determined for the fiscal year, grant funding is assigned to projects, moving down the priority list, until all projects have been assigned grant funds or until the available grant funds are exhausted. Projects that have the same final priority score shall be further ranked by the project’s affordability index, where projects with a lower affordability index will be ranked above those projects with a higher affordability index. After the ranking of projects, the proposed priority list shall be posted on the Department’s website not later than 14 days before the priority list public meeting.

(e)Priority List Public Meeting.

1.The Department shall identify the amount of grant funds available.

2.The priority list shall be adopted at a public meeting conducted in accordance with subsection 62-503.300(1)(c), F.A.C.

(f)Grant Application and Agreement.

1.To receive a grant, a project sponsor must demonstrate that it has the financial capability to complete the project, and that it has the ability to repay the SRF loan. The amount of the grant and the terms of the SRF loan repayment shall be incorporated into the project sponsor’s SRF loan agreement.

2.A complete State Revolving Fund (SRF) loan application, as provided for under paragraph 62-503.430(1)(a), shall be submitted to the Department within 120 days, and an SRF loan agreement shall be executed within 210 days, after the project has been identified as eligible for funding at a priority list public meeting.

3.The failure to submit a State Revolving Fund (SRF) loan application or execute an SRF loan agreement within the timeframes listed in subparagraph 2. above, will result in the project being removed from the priority list.  After removal, the project sponsor must successfully compete for funding at a subsequent priority list public meeting in order to retain the grant funding.

Rulemaking Authority 403.1835(10) FS. Law Implemented 403.1835, 403.1838 FS. History—New 11-30-98, Amended 7-22-99, 1-25-07, 8-30-07, __________.

 

62-505.350 Grant Funding.

Substantial rewording of Rule 62-505.350 follows. See Florida Administrative Code for present text.

(1)Allowable project costs. Categories of allowable project costs include wastewater pollution control activities identified in paragraphs 62-503.300(2)(b) through (o), F.A.C., excluding all costs for land.

(2)Ineligible project costs. Ineligible project costs include the following:

(a)Acquiring all or part of existing wastewater management facilities.

(b)Project facilities or services for which the planning, design, construction or procurement requirements of Rule 62-503.700, F.A.C., are not met.

(c)Project facilities or activities not included within the Department-approved project scope.

(d)Costs for the project sponsor’s personnel in constructing project facilities or costs for construction performed by a construction manager at risk.

(e)Costs incurred after the Department conducts the project closeout, which documents project completion, final project costs, and adequacy of the sponsor’s project files.

(f)All costs for land, including costs for acquisition of sewer rights-of-way, sewage treatment plant sites, land necessary for and integral to the treatment process or for ultimate disposal of wastewater, including sanitary landfills.

(g)Service connections on private property.

(h)Any part of a project intended to serve future growth.

(i)Costs reimbursed by other grants or other funding sources.

(j)Costs incurred before the adoption of the project on the fundable portion of the priority list public meeting.

(k)Any other cost not listed as allowable under subsection (1), above.

(3)The amount of the grant and the terms of the State Revolving Fund (SRF) loan repayment shall be incorporated into the project sponsor’s SRF loan agreement. The total grant amount will be transferred to the loan on or before the date of the first loan repayment.

(4)Grant amount.

(a)Each grant shall be limited to no more than 25% of the available funds for that fiscal year.

(b)The grant amount is a percentage of the eligible project cost remaining after financial assistance from other sources has been deducted and is subject to the limitations in Rule 62-505.350, F.A.C.

(5)Grant percentages.

(a)Planning grant percentage. The grant percentage shall be 50%.

(b)Design grant percentage. The base grant percentage shall be 70%. If the affordability index associated with the project is less than 65, then an additional 20% is added to the base grant percentage. If the affordability index associated with the project is greater than or equal to 65 but less than 100, then an additional 10% is added to the base grant percentage.

(c)Construction grant percentage. The base grant percentage shall be 70%. If the affordability index associated with the project is less than 65, then an additional 20% is added to the base grant percentage. If the affordability index associated with the project is greater than or equal to 65 but less than 100, then an additional 10% is added to the base grant percentage. All of the aforementioned grant percentages in this paragraph are predicated upon the project sponsor adopting and implementing an asset management plan that meets all of the requirements in subsection 62-503.700(7), F.A.C. Failure to adopt and implement such an asset management plan prior to the final disbursement of the associated State Revolving Fund construction loan will reduce the construction grant percentage to 0%.

Rulemaking Authority 403.1835(10) FS. Law Implemented 403.1835, 403.1838 FS. History—New 11-30-98, Amended 1-25-07, 8-30-07, __________.

 

62-505.600 Priority List Information.

Rulemaking Authority 403.1835(10) FS. Law Implemented 403.1835 FS. History—New 11-30-98, Amended 1-25-07, 8-30-07, Repealed __________.

 

62-505.700 Planning, Design, Construction, and Procurement Requirements.

Rulemaking Authority 403.1838(3)(a), (b) FS. Law Implemented 403.1835, 403.1838 FS. History–New 11-30-98, Amended 1-25-07, Repealed __________.

 

62-505.750 Environmental Review.

Rulemaking Authority 403.1838 FS. Law Implemented 403.1835 FS. History–New 1-25-07, Repealed __________.

 

62-505.800 Audit Required.

Rulemaking Authority 403.1838(3)(a), (b) FS. Law Implemented 403.1835, 403.1838 FS. History–New 11-30-98, Amended 1-25-07, Repealed __________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Trina Vielhauer, Director, Division of Water Restoration Assistance

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jonathan P. Steverson, Secretary, Department of Environmental Protection

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 18, 2016

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: March 17, 2016