Alabama Administrative Code › Title 335 - ALABAMA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT › WATER DIVISION - OPERATOR CERTIFICATION PROGRAM › Chapter 335-11-2 - DRINKING WATER STATE REVOLVING FUND PROGRAM › Section 335-11-2-.09 - Terms Of Assistance Agreements From The DWSRF

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The Department may offer loans for
				projects for up to 100 percent of allowable project costs with a range of
				options regarding the term and interest rate.
(2) The principal amount of the loan shall be
				repaid over a period not to exceed EPA requirements or the life of the
				facilities being financed, whichever is sooner. Repayment shall begin no later
				than one year after estimated completion of construction, or three years from
				the date of loan award, whichever comes first. Thereafter, loan repayments
				shall be made in accordance with the loan amortization in the assistance
				agreement. The repayment period may be equal to less than the EPA-permitted
				maximum at the discretion of the Department.
(3) Capitalized interest, if applicable,
				shall be charged to the borrower as detailed in the assistance
				agreement.
(4) Loan interest shall
				be charged to the borrower as detailed in the assistance agreement.
(5) The applicant shall prepare an operation
				and maintenance manual for any new or substantially upgraded water treatment
				plant.
(6) The applicant shall
				conform to all federal, state, and local laws pertaining to construction of the
				project and procurement of design, inspection, and construction
				services.
(7) The Department may
				assess penalties for late loan repayments as stipulated in the assistance
				agreement.
(8) To ensure adequate
				funds for major maintenance and replacement of the projects funded by this
				program, the applicant may be required to set aside annually to a replacement
				reserve fund from current revenues, after taking into account costs of
				operations and maintenance and debt service requirements, an amount to be
				determined by the Department. Funds may be withdrawn from the account if major
				maintenance or replacement of equipment in excess of budgeted amounts is
				required.
(9) The assistance
				agreement shall contain terms and conditions that the Department deems
				necessary to maintain the financial integrity of the DWSRF.
(10) Loans shall be made only to public
				entities that:
(a) Are included on the project
				priority list;
(b) In the opinion
				of the Department, have demonstrated the technical, financial, and managerial
				ability to operate and maintain the facilities over their useful life and to
				repay the loan;
(c) Provide
				security for repayment of the loan;
(d) Are not in default with any outstanding
				debt indentures, grant agreements, or loans;
(e) Agree to periodically adjust user fees
				and charges in order that a revenue stream is generated sufficient to operate
				and maintain the facilities and repay the loan;
(f) Agree to maintain records in accordance
				with governmental accounting standards and to conduct annual audits of the
				public body's financial records; and,
(g) Provide assurances as reasonably required
				by the Department and EPA.