Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part VII - Pennsylvania Infrastructure Investment Authority › Chapter 963 - PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY ASSISTANCE › Section 963.11 - Eligible costs

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In addition
				to the costs eligible for assistance enumerated in the act, eligible project
				costs considered by the Board include the following:
(1) Project design and engineering
				incorporated in the final project, including the development of prefeasibility,
				feasibility and planning studies, plans, specifications, cost estimates,
				surveys, project inspection and management and costs associated with the
				completion of a second opinion project review required under §
										963.20 or §
										965.7 (relating to second opinion
				project review).
(2) Financial
				condition and audit reports required for financial assistance
				application.
(3) Administrative
				costs, including financial reporting costs, generated by the project and
				specifically included in the financial assistance agreement. These costs
				include the cost associated with completing the application itself.
(4) Acquisition of property rights, including
				that of necessary easements or rights-of-way, and equipment that are
				preliminary to or a necessary part of the project. Acquisition of property
				rights may include the costs associated with the acquisition, including taxes,
				fees, surveys, title insurance and relocation fees specifically included in the
				financial assistance agreement.
(5)
				Capital contributions to be paid by the applicant for the use of existing
				treatment, storage, distribution or related capacity. Section
				963.17 (relating to funding
				limitations) applies to the payment of capital contributions. In particular,
				capital contributions paid prior to approval by the Authority, and in the
				absence of a letter of no prejudice issued by the Authority, will not be
				considered eligible costs. Capital contributions are eligible costs only when
				the following conditions are met:
(i) The use
				of the capacity by the applicant is either acquired for the life of the
				capacity or is leased for a sufficiently long period and with rights and
				privileges as to be tantamount, in the Authority's judgment, to
				acquisition.
(ii) The price charged
				for the capacity does not exceed the sum of the following:
(A) The applicant's proportionate share of
				the unpaid principal of a debt incurred to finance construction of the
				capacity. The applicant's proportionate share equals the percentage of the
				existing capacity that the applicant is acquiring or leasing.
(B) Costs incurred by the capacity's owner to
				modify the capacity to make it available for the applicant's use.
(iii) The financing of capital
				contributions by the authority does not result in rate reductions to existing
				users beyond those attributable to the mere spreading of common costs over a
				larger number of users, comprised of existing users and those represented by
				the applicant.
(iv) If the capacity
				being acquired or leased is already in use, the evaluation of the project under
				the criteria in §§
											963.8 and
				963.9 (relating to wastewater
				project evaluation criteria; and water project evaluation criteria) is on a net
				benefit basis. Only benefits that are in excess of the benefits already being
				generated by use of the capacity shall be counted in evaluating the
				project.
(v) The financing of
				capital contributions by the authority neither directly nor indirectly
				jeopardizes a source of authority funds. In particular, that portion of a
				capital contribution financed by the Authority equal to the unpaid principal of
				a tax-exempt debt incurred to finance construction of the capacity shall be
				used to retire that debt.
(vi) The
				financing of capital contributions by the authority does not directly or
				indirectly duplicate the assistance provided by the Authority for a
				project.
(6) Legal
				service fees generated by the project.
(7) Permit fees.
(8) Insurance or bonds associated with the
				construction of the project.
(9)
				Security bonds, necessary reserves and costs of establishing and securing total
				financing arrangements for the project.
(10) Interest during construction or
				financing of the project and allowance for funds used during
				construction.
(11) Project
				construction, including labor, materials, machinery, equipment, site
				preparation and restoration costs associated with the project.
(12) Other costs the Board has determined to
				be necessary or incident to the project. The applicant shall demonstrate that
				the activities associated with these costs are integral to the proposed project
				and that the costs are unavoidable.