§ 46-12.2-8. Procedures for application, approval, and award of financial assistance.
(a) Any local governmental unit, person or corporation may apply to the agency for financial
assistance in accordance with this chapter to finance all or any part of the cost
of a water pollution abatement project. The agency shall not award financial assistance
to a local governmental unit, person or corporation until and unless the department
shall have issued a certificate of approval of the project or portion thereof. Notwithstanding
the foregoing, for water pollution abatement projects funded outside of the water
pollution control revolving fund, the Rhode Island water pollution control revolving
fund, or the local interest subsidy trust fund, the agency may provide financial assistance
without the requirement of the issuance of a certificate of approval, and such projects
shall not be required to be listed on the department's priority list as set forth
in this chapter.
(b) If the department shall determine, in accordance with rules and regulations promulgated
pursuant to this chapter, that an application for financial assistance or portion
thereof shall be approved, it shall deliver to the agency a certificate of approval
of the project or a portion thereof which shall specify the project or portion thereof
eligible for financial assistance and such other terms, conditions and limitations
with respect to the construction and operation of the project as the department shall
determine. The agency shall specify, among other things, the type and amount of financial
assistance to be provided, the costs thereof eligible for financial assistance, the
amounts, if any, of the financial assistance, to be provided from the water pollution
control revolving fund and/or the Rhode Island water pollution control revolving fund,
the amount, if any, of subsidy assistance to be granted from the local interest subsidy
trust fund, the amount, if any, of other financial assistance permitted by this chapter
to be provided, and such other terms, conditions, and limitations on the financial
assistance, the expenditure of loan proceeds, and the construction and operation of
the project as the agency shall determine or approve.
(c) Any water pollution abatement project or portion thereof included on the priority
list established by the department for federal fiscal year 1989 or any federal fiscal
year thereafter shall be eligible for financial assistance in accordance with this
chapter.
(d) In addition to the authority provided by law, the department shall be responsible
for, and shall have all requisite power to, review and approve reports and plans for
water pollution abatement projects and approved projects, or any part thereof, for
which financial assistance has been applied or granted in accordance with this chapter,
to enter into contracts with local governmental units, persons or corporations relative
to approved projects, including, without limiting the generality of the foregoing,
the costs of approved projects eligible for financial assistance, grants, and other
terms, conditions and limitations with respect to the construction and operation of
the project, and to inspect the construction and operation thereof of projects in
compliance with approved plans. Without limiting the generality of the foregoing,
in connection with the exercise of its powers and performance of its duties under
this chapter, the department shall have all the powers provided by law to the department
and its director. The department shall adopt rules, regulations, procedures, and guidelines
to carry out the purposes of this chapter and for the proper administration of its
powers and duties under this chapter. The rules, regulations, procedures, and guidelines
shall include among other things, criteria for determining those water pollution abatement
projects to be approved for financial assistance (the criteria shall include the priority
determination system), specification of eligible costs of the projects, and provisions
for compliance by projects constructed in whole or in part with funds directly made
available under this chapter by federal capitalization grants with the requirements
of the Clean Water Act, 33 U.S.C. § 1351 et seq., and other federal laws applicable to the project. The department shall cooperate
with the agency in the development of capitalization grant applications, operating
plans, and intended use plans for federal capitalization grant awards under title
VI of the Clean Water Act, 33 U.S.C. § 1381 et seq., and may enter into such agreements and other undertakings with the agency
and federal agencies as necessary to secure to the state the benefits of title VI
of the Clean Water Act, 33 U.S.C. § 1381 et seq. In order to provide for the expenses of the department under this chapter,
the agency shall transfer to the department for application to the expenses an amount
from the water pollution control revolving fund equal to the maximum amount authorized
by federal law, and such additional amounts as may be needed from the Rhode Island
water pollution control fund and from any other monies available. The agency and the
department shall enter into an operating agreement and amend the same, from time to
time, allocating their respective rights, duties, and obligations with respect to
the award of financial assistance and grants to finance approved projects under this
chapter and establishing procedures for the application, approval, and oversight of
projects, financial assistance, and grants.
(e) Upon issuance of a certificate of approval, the agency shall award as soon as practicable
the financial assistance to the local governmental unit, person or corporation for
any approved project specified in the certificate; provided, however, the agency may
decline to award any financial assistance which the agency determines will have a
substantial adverse effect on the interests of holders of bonds or other indebtedness
of the agency or the interests of other participants in the financial assistance program,
or for good and sufficient cause affecting the finances of the agency. All financial
assistance shall be made pursuant to a loan agreement between the agency and the local
governmental unit, person or corporation, acting by and through the officer or officers,
board, committee, or other body authorized by law, or otherwise its chief executive
officer, according to the terms and conditions of the certificate of approval and
such other terms and conditions as may be established by the agency, and each loan
shall be evidenced and secured by the issue to the agency of local governmental obligations
or non-governmental obligations in fully marketable form in principal amount, bearing
interest at the rate or rates specified in the applicable loan agreement, and shall
otherwise bear such terms and conditions as authorized by this chapter and the loan
agreement.
(f) The agency shall adopt rules, regulations, procedures, and guidelines for the proper
administration of its financial assistance programs and the provision of financial
assistance under this chapter. The rules, regulations, procedures, and guidelines
shall be consistent with the requirements of title VI of the Clean Water Act, 33 U.S.C. § 1381 et seq., and any rules, regulations, procedures, and guidelines adopted by the department,
and may include, without limitation, forms of financial assistance applications, loan
agreements, and other instruments, and provision for submission to the agency and
the department by a local governmental unit, person or corporation of the information
regarding the proposed water pollution abatement project, the wastewater system of
which it is a part, and the local governmental unit or corporation as the agency or
the department shall deem necessary, to determine the eligibility of a project for
financial assistance under this chapter, the financial feasibility of a project, and
the sufficiency of general revenues or wastewater system revenues to secure and pay
the loan and the local governmental obligations or non-governmental obligations issued
to evidence the project. The agency shall, no later than December 31, 2015, enter
into an agreement with the Rhode Island commerce corporation to ensure collaboration
for brownfields and energy efficiency related projects to which the agency provides
financial assistance to corporations.
(g) Subject to the provisions of any trust agreement securing bonds of the agency, when
the agency shall have awarded a loan eligible for subsidy assistance from funds held
by the agency for the credit of the local interest subsidy trust fund, the agency
shall credit to the applicable account in the fund maintained in accordance with § 46-12.2-6(e), the amount, if any, as provided in the loan agreement to defray all or a portion
of the interest otherwise payable by the local governmental unit, person or corporation
on the loan.
(h) In addition to other remedies of the agency under any loan agreement or otherwise
provided by law, the agency may also recover from a local governmental unit, person
or corporation, in an action in superior court, any amount due the agency together
with any other actual damages the agency shall have sustained from the failure or
refusal of the local governmental unit or corporation to make the payments.