West Virginia Code of State Rules › Agency 44 - Water Development Authority › Title 44 - LEGISLATIVE RULES WATER DEVELOPMENT AUTHORITY › Series 44-01 - Requirements governing disbursement Of loans And grants To governmental agencies For The design, acquisition Or construction Of water development projec › Section 44-1.8 - Priority system for construction grantrecipients to determine whether a state hardship grant should be provided to help relieve a hardship in local funding

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1. Introduction.
In fiscal year 1975-76, the West Virginia Water Development
				  Authority received funds for the first time to assist communities in the funding
				  of needed sewage facilities.
In accordance with  Public Law 92-500, the Federal Water
				  Pollution Control Act Amendments of 1972, as amended, the Office of Water
				  Resources of the Division of Environmental Protection has established a priority
				  rating system for determination of construction grant recipients to accomplish
				  the goals set forth in the Act. The priority system is a mechanism through which
				  water quality problems are ranked state-wide relative to their severity and
				  volume. Once a community has obtained a priority, the eligible portions of the
				  project are recommended for a federal grant.
In accordance with provisions of W. Va. Code '22C-1, the
				  Authority has developed the following criteria to identify grant applicants who
				  may experience a financial hardship and thereby qualify for state hardship grant
				  funds. However, availability of hardship funds will NOT be retroactive to
				  entities where construction has been initiated.
8.2. Criteria.
In order to accurately evaluate the financial impact a proposed
				  system will have on a given community, several factors must be considered. The
				  most accurate information relating to the financial impact of a proposed sewage
				  system is not available, however, until the applicant is ready to initiate
				  construction of the project. Therefore, a hardship grant will not be awarded
				  until a project is ready for construction, as determined by the Authority.
8.2.1. Criteria for grant applicants. -- The
				Authority intends to evaluate the financial impact a proposed system will have on
				a community due to the installation of wastewater treatment facilities.
				Therefore, the following constraints will be used to determine the eligibility of
				project for state hardship grants:
(a) The
				applicant must have adequately addressed the cost-effective aspects of the
				project and project alternatives;
(b)
				The applicant must have approvable plans and specifications, as determined by the
				Authority; and
(c) As appropriate,
				the applicant must have been awarded a construction grant by the United States
				Environmental Protection Agency.
Criteria to determine grant applicants that qualify as
				  hardship:
(A) The state median family
				income is used as the basis for determining the acceptable sewer user charge
				level. The determination will be made using a methodology to be the subject of
				periodic review by the Water Development Board at public meetings held as
				required; and
(B) Projects with
				proposed user charges in excess of the values determined in item (A) would be
				considered for hardship grant award.
Criteria to determine allocation of hardship funds:
Applicants recommended as hardship under Section 8.2.1 (1) of
				  these rules, will be allocated funds in such a manner that those communities with
				  a relatively high user charge will be eligible for a larger hardship fund
				  allocation.
(A) Funding of projects
				recommended as hardship under Section 8.2.1 (1) of these rules, will be developed
				in the following manner: The hardship grant amount is based on the difference
				between the proposed user charge, which is derived using criteria prescribed by
				the Authority, and the recommended (see Section 8.2.1 (1) of these rules) sewer
				user charge. The difference in costs would then be used to calculate the
				reduction in the project's debt service necessary to reduce the proposed user
				charge to the recommended level. Since the maximum size of the hardship grant is
				set by the Water Development Board, the grant may be insufficient to meet the
				needs of the project in bringing the user charge down to the recommended
				level;
(B) In the event a community
				funded by a hardship grant is able to reduce its user charge rates to the
				recommended level and subsequently receives additional grant funds for the
				project, the community must return the Authority's funds in excess of those
				required to maintain the user charge at the recommended level;
(C) Hardship grant funds may be withdrawn from
				a project if the project does not proceed promptly (as determined by the
				Authority) to completion upon award of a hardship grant; and
(D) Appropriations in any fiscal year may not
				be sufficient to fund all the recommended applicants. Grants will be made until
				all qualifying projects have received grants or grant funds are exhausted,
				whichever occurs first.