340-054-0022 Clean Water State Revolving Fund Loans: Loan Application Requirements (1) Application submittal. DEQ will notify interested parties at least annually of the opportunity to submit applications for a CWSRF loan. An eligible applicant may submit a CWSRF loan application to DEQ at any time. (2) Consideration for funding. DEQ will consider an applicant for funding only if its project is included in the Intended Use Plan and its application meets all of this division’s requirements. (3) All CWSRF loans. An applicant must submit the following to DEQ: (a) A complete application on the applicable DEQ form; (b) Documents specified in the DEQ checklist of loan application requirements; (c) Audited financial statements for the three years preceding the application date and the applicant’s current budget, unless waived in writing by DEQ; (d) Evidence the applicant has the authority to undertake the project including, but not limited to, evidence of a loan approval resolution or similar authorization for signing a loan agreement and establishing a loan reserve account; (e) Evidence the applicant has authority to collect and pledge the revenue offered as repayment for a CWSRF loan, repay a loan and, where applicable, the ability to ensure ongoing operation and maintenance of the proposed project. DEQ may require an applicant to meet the following criteria for a revenue-secured loan described under OAR 340-054-0065(2) or OAR 340-054-0066(2): (A) An applicant’s revenue stream is not at risk from undue dependence on a limited portion of the system’s or qualified institution’s customer base or a pattern of delinquent payment from that portion of the system’s or qualified institution’s customer base, and (B) An applicant must have the ability to collect from delinquent customers; (f) Pre-award compliance review report or other evidence DEQ requires showing compliance with federal nondiscrimination requirements; (g) For projects serving two or more public agencies, the executed inter-agency agreements, contracts or other legally binding instruments necessary for financing, constructing and operating the proposed project. The documents must be satisfactory to DEQ for determining an adequate pledge of security; (h) Evidence of resolution, ordinance or other authorization approving bonds secured by sewer or other revenue sources if required by DEQ; (i) Official statement of recently issued bonds if required by DEQ; (j) A DEQ-approved certification that the requirements for the cost and effectiveness analysis and the subsequent project selection are completed as required by section 602(b)(13) of the CWA; (k) Any other information DEQ requests as necessary to complete the loan application. (4) Local community loan. In addition to the requirements in section (3) of this rule, a public agency applying for a CWSRF local community loan must submit the following to DEQ: (a) A description of how the project will implement a nonpoint source control activity or estuary management effort. (b) A projected cash flow statement based on anticipated number of local loans, their repayment schedule, amount and timing of department disbursement and amount and timing of repayments to DEQ. (c) Unless waived by DEQ, evidence of a user charge system or other source of revenue if the applicant will be securing and repaying the loan with sewer system revenues. (d) Unless waived by DEQ, demonstration of compliance with applicable federal environmental cross-cutting authorities. (e) Documentation that demonstrates compliance with the land use requirements in OAR 340-018-0050. (f) DEQ-approved plans and specifications that comply with OAR chapter 340, division 52, unless waived by a DEQ engineer. (g) An environmental determination obtained from DEQ for a nonpoint source pollution control (CWA § 319) or estuary management (CWA § 320) project that are construction and treatment works as defined in ORS 468.423. The environmental determination must meet the following conditions: (A) An applicant must provide all necessary documentation to support DEQ’s review of the entire projects’ potential environmental impacts and include an analysis of a no action alternative and other reasonable alternatives considered. (B) Project construction must begin within five years of the environmental determination. (h) If an applicant does not obtain an environmental determination as specified in subsection (4)(g) of this section, an applicant may submit to DEQ, and DEQ may accept, an environmental determination made by another agency that meets the following conditions: (A) The project scope must be essentially unchanged from the scope the other agency accepted. (B) The other agency’s determination must have been made within the previous five years. (C) The applicant met and documented the federal environmental cross-cutting authorities. (5) All design or construction loans. In addition to the requirements in section (3) of this rule, an applicant applying for a CWSRF design or construction loan must submit the following to DEQ: (a) Unless waived by DEQ, evidence of a user charge system or other source of revenue if the applicant will be securing and repaying the loan with sewer system revenues. (b) Unless waived by DEQ, demonstration of compliance with applicable federal environmental cross-cutting authorities for a construction project. (c) An environmental determination obtained from DEQ for a construction project of a treatment works as defined in ORS 468.423, including a nonpoint source pollution control (CWA § 319) or estuary management (CWA § 320) project, that are construction and treatment works as defined in ORS 468.423. The environmental determination must meet the following conditions: (A) An applicant must provide all necessary documentation to support DEQ’s review of the entire projects’ potential environmental impacts and include an analysis of a no action alternative and other reasonable alternatives considered. (B) Project construction must begin within five years of the environmental determination. (d) If an applicant does not obtain an environmental determination, as specified in subsection (5)(c) of this section, an applicant may submit to DEQ, and DEQ may accept, an environmental determination made by another agency that meets the following conditions: (A) The project scope must be essentially unchanged from that the other agency accepted. (B) The other agency’s determination must have been made within the previous five years. (C) The applicant met and documented the federal environmental cross-cutting authorities. (e) Documentation that demonstrates compliance with the land use requirements in OAR 340-018-0050. (f) For a construction-only loan, DEQ-approved plans and specifications for the project as OAR chapter 340, division 052 requires. (g) If the estimated cost of a wastewater treatment facility project is in excess of $10 million, a value engineering study satisfactory to DEQ done prior to beginning construction. The study must be a specialized cost control technique specifically applicable to the wastewater treatment facility design identifying cost savings that can be made without sacrificing project reliability or efficiency. (6) Design or construction loan for a point source project. In addition to the requirements in sections (3) and (5) of this rule, an applicant applying for a CWSRF design or construction loan for a point source project must submit the following to DEQ: (a) An engineered planning document in the form of either a facility plan or project pre-design report that provides a comprehensive evaluation of environmental factors, engineering alternatives and financial considerations affecting the project area. This document must adequately describe the effectiveness and suitability of the proposed project to address the identified water quality problem. An applicant must have DEQ review and approve this document before signing a design or construction loan. (b) Evidence of a sewer use ordinance or equivalent authority that prohibits: (A) New connections from inflow sources into the wastewater collection system; and (B) Introducing wastewater into the wastewater collection system containing toxics or other pollutants in amounts or concentrations that have the potential of endangering public safety, adversely affecting the project or precluding selecting the most cost-effective alternative for the project. (c) When a public agency applies for a wastewater facility construction loan that includes a sponsorship option, complete information about the nonpoint source control or estuary management activity on the applicable application form. DEQ will only consider a sponsorship option if a nonpoint source control or estuary management activity is included as part of the entire project scope. (7) Design or construction loan for a nonpoint source project. In addition to the requirements in sections (3) and (5) of this rule, an applicant applying for a CWSRF design or construction loan for a nonpoint source project must submit an engineered planning report to DEQ. The report must define the water quality problem and specify actions an applicant will implement to correct the problem. (8) Federal loans. In addition to the applicable requirements in sections (3)–(7) of this rule, a loan designated as a federal loan must meet the requirements for federally funded projects in the Clean Water Act Title VI and EPA’s January 6, 2015, memo “Interpretive Guidance for Certain Amendments in the Water Resources Reform and Development Act to Titles I, II, V, and VI of the Federal Water Pollution Control Act.” (9) CDFI loans. In addition to requirements in sections (3) and (5) of this rule, a qualified institution applying for a CWSRF loan must submit: (a) Documentation demonstrating that all sub-loans will comply with applicable provisions of OAR chapter 340, division 71 and chapter 340, division 73. (b) A description of project eligibility under OAR 340-054-0015(3). (c) A projected cash flow statement based on anticipated number of sub-loans, sub-loan repayment schedule, amount and timing of sub-loan disbursements. [Note: Publications referred to are not included here. The CWSRF Intended Use Plan is available from the agency. View a PDF of the EPA Interpretive Guidance by clicking on the "tables" link below.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 468.020 & 468.440 Statutes/Other Implemented: ORS 468.423 – 468.440 History: DEQ 12-2021, amend filed 07/26/2021, effective 07/26/2021 DEQ 36-2017, minor correction filed 12/13/2017, effective 12/13/2017 DEQ 18-2017, amend filed 11/06/2017, effective 11/07/2017 DEQ 9-2015, f. & cert. ef. 10-16-15 DEQ 11-2012, f. & cert. ef. 12-14-12 DEQ 10-2003, f. & cert. ef. 5-27-03