§ 46-12.8-5. Procedure for application, approval, and award of financial assistance.
(a) Any local governmental unit or privately organized water supplier may apply to the
agency for financial assistance in accordance with this chapter to finance all or
any part of the cost of an approved project. The agency shall not award financial
assistance to such local government unit or privately organized water supplier hereunder
until and unless the department shall have issued a certificate of approval of the
project or portion thereof for which such financial assistance has been sought. Notwithstanding
the foregoing, for safe drinking water projects funded outside of the drinking water
state revolving fund, the Agency may provide financial assistance without the requirement
of the issuance of a certificate of approval.
(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 from the safe drinking water revolving loan fund, the amount,
if any, of subsidy assistance to be granted, 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) 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
safe drinking water projects and approved projects, or any part thereof, for which
financial assistance has been applied or granted in accordance with this chapter from
the safe drinking water revolving fund, to enter into contracts with local governmental
units and private water companies 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 of approved 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 safe drinking water projects, to be approved for financial assistance
from the safe drinking water revolving fund and specification of eligible costs of
the projects. 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 safe drinking water revolving loan fund equal to an amount as the agency
and the department shall reasonably determine. 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.
(d) Upon issuance of a certificate of approval, the agency shall award as soon as practicable
the financial assistance from the safe drinking water revolving fund to the local
governmental unit or privately organized water supplies 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, notes or other evidences of indebtedness of the agency
or the interests of other participants in the financial assistance program, or for
other 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 or privately organized water supplier, 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 the local
governmental obligations or obligations of the privately organized water supplier,
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.
(e) 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 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 provisions for submission
to the agency and the department by a local governmental unit or a privately organized
water supplier of the information regarding the proposed safe drinking water project,
the distribution system of which it is a part, and the local governmental unit or
privately organized water supplies 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
system revenues to secure and pay the loan and the local governmental obligations
or obligations of the privately organized water supplier issued to evidence the same.
(f) 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 or privately
organized water supplier, 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 privately organized water supplier to
make the payments.