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Arizona Administrative Code Title Ch Water Infrastructure by alicejenny

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									                                                   Arizona Administrative Code                                       Title 18, Ch. 15
                                         Water Infrastructure Finance Authority of Arizona

                                           TITLE 18. ENVIRONMENTAL QUALITY
                     CHAPTER 15. WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA


           ARTICLE 1. GENERAL PROVISIONS                           R18-15-405. Water Supply Development Revolving Fund Fund-
                                                                               able Range for Financial Assistance
Section
                                                                   R18-15-406. Water Supply Development Revolving Fund Appli-
R18-15-101.   Definitions
                                                                               cation for Financial Assistance
R18-15-102.   Types of Assistance Available
                                                                   R18-15-407. Water Supply Development Revolving Fund Appli-
R18-15-103.   Application Process                                              cation Review for Financial Assistance
R18-15-104.   General Financial Assistance Application Require-    R18-15-408. Water Supply Development Revolving Fund
              ments
                                                                               Requirements
R18-15-105.   General Financial Assistance Conditions
R15-15-106.   Environmental Review                                            ARTICLE 5. TECHNICAL ASSISTANCE
R18-15-107.   Disputes                                                  Article 5, consisting of Sections R18-15-501 through R18-15-
R18-15-108.   Repealed                                             507, adopted by final rulemaking at 6 A.A.R. 2116, effective May
R18-15-109.   Repealed                                             16, 2000 (Supp. 00-2).
R18-15-110.   Repealed
R18-15-111.   Repealed                                             Section
R18-15-112.   Renumbered                                           R18-15-501. Technical Assistance
R18-15-113.   Renumbered                                           R18-15-502. Technical Assistance Intended Use Plan
                                                                   R18-15-503. Clean Water Planning and Design Assistance Grants
     ARTICLE 2. CLEAN WATER REVOLVING FUND                         R18-15-504. Drinking Water Planning and Design Assistance
                                                                                   Grants
Section
                                                                   R18-15-505. Water Supply Development Planning and Design
R18-15-201. Clean Water Revolving Fund Financial Assistance
                                                                                   Assistance Grants
            Eligibility Criteria
                                                                   R18-15-506. Repealed
R18-15-202. Clean Water Revolving Fund Intended Use Plan
                                                                   R18-15-507. Repealed
R18-15-203. Clean Water Revolving Fund Project Priority List
R18-15-204. Clean Water Revolving Fund Project Priority List       R18-15-508. Repealed
            Ranking                                                R18-15-509. Repealed
R18-15-205. Clean Water Revolving Fund Fundable Range for          R18-15-510. Repealed
            Financial Assistance                                   R18-15-511. Repealed
R18-15-206. Clean Water Revolving Fund Application for Finan-           ARTICLE 6. HARDSHIP GRANT FUND PROGRAM
            cial Assistance
R18-15-207. Clean Water Revolving Fund Application Review               Article 6, consisting of Sections R18-15-601 through R18-15-
            for Financial Assistance                               603, adopted by final rulemaking at 6 A.A.R. 2116, effective May
R18-15-208. Clean Water Revolving Fund Requirements                16, 2000 (Supp. 00-2).
                                                                   Section
   ARTICLE 3. DRINKING WATER REVOLVING FUND                        R18-15-601. Hardship Grant Fund Administration
Section                                                            R18-15-602. Hardship Grant Fund Financial Assistance
R18-15-301. Drinking Water Revolving Fund Financial Assis-         R18-15-603. Hardship Grant Fund Technical Assistance
            tance Eligibility Criteria                                     ARTICLE 7. INTEREST RATE SETTING AND
R18-15-302. Drinking Water Revolving Fund Intended Use Plan                       FORGIVABLE PRINCIPAL
R18-15-303. Drinking Water Revolving Fund Project Priority List
R18-15-304. Drinking Water Revolving Fund Project Priority List         Article 7, consisting of Section R18-15-701, adopted by final
            Ranking                                                rulemaking at 6 A.A.R. 2116, effective May 16, 2000 (Supp. 00-2).
R18-15-305. Drinking Water Revolving Fund Fundable Range for       Section
            Financial Assistance                                   R18-15-701. Interest Rate Setting and Forgivable Principal
R18-15-306. Drinking Water Revolving Fund Application for
            Financial Assistance                                               ARTICLE 1. GENERAL PROVISIONS
R18-15-307. Drinking Water Revolving Fund Application              R18-15-101. Definitions
            Review for Financial Assistance                        In addition to the definitions prescribed in A.R.S. § 49-1201, the
R18-15-308. Drinking Water Revolving Fund Requirements             terms of this Chapter, unless otherwise specified, have the follow-
      ARTICLE 4. WATER SUPPLY DEVELOPMENT                          ing meanings:
                 REVOLVING FUND                                              “Applicant” means a governmental unit, a non-point
                                                                             source project sponsor, a drinking water facility, or a
Section                                                                      water provider that is seeking financial assistance from
R18-15-401. Water Supply Development Revolving Fund Finan-                   the Authority under the provisions of this Chapter.
            cial Assistance Eligibility Criteria                             “Application” means a request for financial assistance
R18-15-402. Water Supply Development Revolving Fund                          submitted to the Board or Committee by an applicant.
            Intended Use Plan
R18-15-403. Water Supply Development Revolving Fund Project                  “Authority” means the Water Infrastructure Finance
            Priority List                                                    Authority of Arizona pursuant to A.R.S. § 49-1201(1).
R18-15-404. Water Supply Development Revolving Fund Project                  “Board” means the Board of Directors of the Authority
            Priority List Ranking                                            pursuant to A.R.S. § 49-1201(2).


September 30, 2010                                            Page 1                                                       Supp. 10-3
Title 18, Ch. 15                                      Arizona Administrative Code
                                            Water Infrastructure Finance Authority of Arizona

         “Certified Water Quality Management Plan” means a                      ments of A.R.S. § 49-232 and that demonstrates that the
         plan prepared by a single representative organization des-             water should be identified pursuant to 33 U.S.C. 1313(d)
         ignated by the Governor according to Section 208 of the                and the regulations implementing that statute.
         Clean Water Act, 33 U.S.C. 1288.                                       “Intended Use Plan” means the document prepared by the
         “Clean Water Revolving Fund” means the fund estab-                     Authority identifying the intended uses of Clean Water
         lished by A.R.S. § 49-1221.                                            Revolving Fund and Drinking Water Revolving Fund
         “Committee” means the Water Supply Development                         federal capitalization grants according to R18-15-202 and
         Fund Committee as defined in A.R.S. § 49-1201(5).                      R18-15-302, the intended uses of the Water Supply
                                                                                Development Revolving Fund according to R18-15-402,
         “DBE” means EPA’s Disadvantaged Business Enterprise                    and the intended uses of funds for technical assistance
         Program.                                                               according to R18-15-502.
         “Dedicated revenue source for repayment” means a
                                                                                “Master priority list” means the master priority list for
         source of revenue pledged by a borrower to repay the
                                                                                Capacity Development developed by the Arizona Depart-
         financial assistance.
                                                                                ment of Environmental Quality under A.A.C. R18-4-803,
         “Department” means the Arizona Department of Envi-                     which ranks public water systems according to their need
         ronmental Quality.                                                     for technical assistance.
         “Disbursement” means the transfer of cash from a fund to               “Onsite system” means a conventional septic tank system
         a recipient.                                                           or alternative system that is installed at a site to treat and
         “Discharge” has same meaning as prescribed in A.R.S. §                 dispose of wastewater of predominantly human origin
         49-201(12).                                                            that is generated at that site.
         “Drinking water facility” has same meaning as prescribed               “Planning and design assistance grant” means a technical
         in A.R.S. § 49-1201(6).                                                assistance grant that provides for the use of monies for a
         “Drinking Water Revolving Fund” means the fund estab-                  specific water, wastewater treatment facility, or water
         lished by A.R.S. § 49-1241.                                            supply delivery system for planning or design to facilitate
                                                                                the design, construction, acquisition, improvement, or
         “EA” means an environmental assessment.                                consolidation of a drinking water project, wastewater
         “EID” means an environmental information document.                     project, or water supply development project.
         “EIS” means an environmental impact statement.                         “Planning and design assistance grant agreement” means
         “EPA” means the United States Environmental Protection                 any agreement that defines the terms for a technical assis-
         Agency.                                                                tance grant provided according to Article 5 of this Chap-
                                                                                ter.
         “Executive director” means the executive director of the
         Water Infrastructure Finance Authority of Arizona.                     “Planning and design loan repayment agreement” means
         “Federal capitalization grant” means the assistance agree-             the same as technical assistance loan repayment agree-
         ment by which the EPA obligates and awards funds allot-                ment and has the meaning at A.R.S. § 49-1201(12).
         ted to the Authority for purposes of capitalizing the Clean            “Priority value” means the total points a project received
         Water Revolving Fund and the Drinking Water Revolving                  during the evaluation of its project priority list applica-
         Fund.                                                                  tion.
         “Financial assistance” means the use of monies for any of              “Professional assistance” means the use of monies by or
         the purposes identified in R18-15-102(B).                              on behalf of the Authority to conduct research, conduct
         “Financial assistance agreement” means any agreement                   studies, conduct surveys, develop guidance, and perform
         that defines the terms for financial assistance provided               related activities that benefit more than one water or
         according to this Chapter.                                             wastewater treatment facility.
         “FONSI” means a finding of no significant impact.                      “Project” means any distinguishable segment or segments
         “Fundable range” means a subset of the project priority                of a wastewater treatment facility, drinking water facility,
         list that demarcates the ranked projects which have been               water supply delivery system, or nonpoint source pollu-
         determined to be ready to proceed and will be provided                 tion control that can be bid separately and for which
         with a project finance application.                                    financial or technical assistance is being requested or pro-
                                                                                vided.
         “Governmental unit” means a political subdivision or
         Indian tribe that may receive technical or financial assis-            “Project priority list” means the document developed by
         tance from the Authority pursuant to A.R.S. § 49-1203.                 the Board or Committee according to R18-15-203, R18-
                                                                                15-303, or R18-15-403 that ranks projects according to
         “Grant applicant” means a governmental unit, a nonpoint                R18-15-204, R18-15-304, or R18-15-404.
         source project sponsor, a drinking water facility, or a
         water provider that is seeking a planning and design                   “Recipient” means an applicant who has entered into a
         assistance grant from the Authority under the provisions               financial assistance agreement or planning and design
         of this Chapter.                                                       assistance grant agreement with the Authority.
         “Grant application” means a request for a planning and                 “ROD” means a record of decision.
         design assistance grant submitted to the Board or Com-                 “Staff assistance” means the use of monies for a specific
         mittee by a grant applicant in a format prescribed by the              water or wastewater treatment facility to assist that sys-
         Authority.                                                             tem to improve its operations or assist a specific water
         “Impaired water” means a navigable water for which                     provider with a water supply delivery system. For water
         credible scientific data exists that satisfies the require-            providers, staff assistance is limited to planning and


Supp. 10-3                                                         Page 2                                               September 30, 2010
                                                      Arizona Administrative Code                                          Title 18, Ch. 15
                                            Water Infrastructure Finance Authority of Arizona

         design of water supply development projects according to      B.   An applicant seeking financial assistance through the Clean
         A.R.S. § 49-1203(B)(17).                                           Water Revolving Fund Program shall apply for financial assis-
         “Technical assistance” means assistance provided by the            tance according to Articles 1 and 2 of this Chapter.
         Authority in the form of staff assistance, professional       C.   An applicant seeking financial assistance through the Drinking
         assistance and planning and design assistance grants.              Water Revolving Fund Program shall apply for financial assis-
                                                                            tance according to Articles 1 and 3 of this Chapter.
         “Wastewater treatment facility” has the same meaning as
                                                                       D.   An applicant seeking financial assistance through the Water
         prescribed in A.R.S. § 49-1201(13).
                                                                            Supply Development Revolving Fund Program shall apply for
         “Water provider” has the same meaning as prescribed in             financial assistance according to Articles 1 and 4 of this Chap-
         A.R.S. § 49-1201(14).                                              ter.
         “Water supply development” has the same meaning as            E.   An applicant seeking technical assistance available through
         prescribed in A.R.S. § 49-1201(15).                                the technical assistance programs shall apply for technical
                                                                            assistance according to Articles 1 and 5 of this Chapter.
         “Water Supply Development Revolving Fund” means the
         fund established by A.R.S. § 49-1271.                         F.   An applicant shall mark any confidential information with the
                                                                            words “confidential information” on each page of the material
                          Historical Note                                   containing such information. A claim of confidential informa-
       Adopted effective September 18, 1997 (Supp. 97-3).                   tion may be asserted for a trade secret or information that,
     Amended effective June 4, 1998 (Supp. 98-2). Amended                   upon disclosure, would harm a person’s competitive advan-
     by final rulemaking at 6 A.A.R. 2116, effective May 16,                tage. The Authority shall not disclose any information deter-
      2000 (Supp. 00-2). Amended by final rulemaking at 7                   mined confidential. Upon receipt of a claim of confidential
     A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).                  information, the Authority shall make one of the following
     Amended by final rulemaking at 16 A.A.R. 1709, effec-                  written determinations:
                 tive October 9, 2010 (Supp. 10-3).                         1. The designated information is confidential and the
R18-15-102. Types of Assistance Available                                        Authority shall not disclose the information except to
                                                                                 those individuals deemed by the Authority to have a legit-
A. The Authority may provide financial and technical assistance
                                                                                 imate interest.
    under the following programs if the Board or Committee, as
    applicable, determines funding is available:                            2. The designated information is not confidential.
    1. Clean Water Revolving Fund Program and Clean Water                   3. Additional information is required before a final confi-
         Technical Assistance Program,                                           dentiality determination can be made.
    2. Drinking Water Revolving Fund Program and Drinking                                        Historical Note
         Water Technical Assistance Program,                                  Adopted effective September 18, 1997 (Supp. 97-3).
    3. Water Supply Development Revolving Fund Program                      Amended by final rulemaking at 7 A.A.R. 5956, effective
         and Water Supply Development Technical Assistance                   December 4, 2001 (Supp. 01-4). Section repealed; new
         Program, and                                                       R18-15-103 renumbered from R18-15-102 and amended
    4. Hardship Grant Fund Program.                                         by final rulemaking at 16 A.A.R. 1709, effective October
B. Financial assistance available from the Authority includes any                             9, 2010 (Supp. 10-3).
    of the following:
    1. Financial assistance loan repayment agreements;                 R18-15-104. General Financial Assistance Application
    2. Planning and design loan repayment agreements in accor-         Requirements
         dance with A.R.S. § 49-1203(16) and (17);                     A. The applicant shall provide in the financial assistance applica-
    3. The purchase or refinance of local debt obligations;                tion the information in subsections (B), (C), (D), and (E).
    4. The guarantee or purchase of insurance for local obliga-        B. The applicant shall demonstrate the applicant is legally autho-
         tions to improve credit market access or reduce interest          rized to enter into long-term indebtedness, and is legally
         rates;                                                            authorized to pledge a dedicated revenue source for repayment
    5. Short-term emergency loan agreements in accordance                  under subsection (C).
         with A.R.S. § 49-1269; and                                        1. If the applicant is a political subdivision and the long-
    6. Providing linked deposit guarantees through third-party                   term indebtedness is authorized through an election, the
         lenders as authorized by A.R.S. §§ 49-1223(A)(6), 49-                   applicant shall provide all of the following:
         1243(A)(6), and 49-1273(A)(6).                                          a. One copy of the sample election ballot and election
C. Technical assistance available from the Authority includes                          pamphlet,
    planning and design assistance grants, staff assistance, and                 b. One copy of the governing body resolution calling
    professional assistance. Technical assistance may be offered at                    for the election, and
    the Board’s or Committee’s discretion and shall be identified                c. Official evidence of the election results following
    in the annual Technical Assistance Intended Use Plan as                            the election.
    described in R18-15-502.                                               2. If the applicant is a political subdivision and the long-
                                                                                 term indebtedness is not required by law to be authorized
                        Historical Note
                                                                                 through an election, the applicant shall provide one copy
      Adopted effective September 18, 1997 (Supp. 97-3).
                                                                                 of the approved governing body resolution authorizing
      Former R18-15-102 renumbered to R18-15-103; new
                                                                                 the long-term indebtedness.
      Section made by final rulemaking at 16 A.A.R. 1709,
             effective October 9, 2010 (Supp. 10-3).                       3. If the applicant is a political subdivision and the long-
                                                                                 term indebtedness is authorized through a special taxing
R18-15-103. Application Process                                                  district creation process, the applicant shall provide one
A. An applicant requesting assistance shall apply to the Authority               copy of all final documentation, notices, petitions, and
    for each type of financial or technical assistance described in              related information authorizing the long-term indebted-
    R18-15-102 on forms provided by the Authority.                               ness.


September 30, 2010                                                Page 3                                                        Supp. 10-3
Title 18, Ch. 15                                        Arizona Administrative Code
                                              Water Infrastructure Finance Authority of Arizona

     4.   If the applicant is regulated by the Arizona Corporation                 g. A description of the existing physical facilities.
          Commission, the applicant shall provide evidence that the            2.  The Authority may ask for additional information as nec-
          financial assistance from the Authority to the applicant is              essary to evaluate the applicant’s technical capability.
          authorized by the Arizona Corporation Commission.               E.   The applicant shall demonstrate the applicant is capable to
     5. All other applicants shall demonstrate that a majority of              manage the proposed project.
          the beneficiaries consent to the terms and conditions of             1. The applicant shall provide the following information:
          the financial assistance. The Authority shall assist each                a. Years of experience and related information regard-
          applicant to devise a process by which this consent is                        ing the owners, managers, chief elected officials,
          documented.                                                                   and governing body members of the applicant; and
C.   The applicant shall identify a dedicated revenue source for                   b. A list of professional and outside services retained
     repayment of the financial assistance and demonstrate that the                     by the applicant and the proposed project.
     dedicated revenue source is sufficient to repay the financial             2. If any of the required information listed in subsection
     assistance.                                                                   (E)(1) is not available, the Authority may assist the appli-
     1. The applicant shall provide the following information:                     cant in determining alternative documentation to support
          a. Amount of the financial assistance requested;                         the applicant’s managerial capability.
          b. One copy of each financial statement, audit, or com-              3. The Authority may ask for additional information as nec-
               prehensive financial statement from at least the pre-               essary to evaluate the applicant’s managerial capability.
               vious three fiscal years;
          c. One copy of each budget, business plan, manage-                                      Historical Note
               ment plan, or financial plan from the previous and               Adopted effective September 18, 1997 (Supp. 97-3).
               current fiscal years;                                           Amended by final rulemaking at 7 A.A.R. 5956, effective
          d. One copy of the proposed budget, business plan,                   December 4, 2001 (Supp. 01-4). Amended by final rule-
               management plan, or financial plan for the next fis-             making at 16 A.A.R. 1709, effective October 9, 2010
               cal year;                                                                            (Supp. 10-3).
          e. A projection of revenue anticipated to be collected          R18-15-105. General Financial Assistance Conditions
               over the next five fiscal years from the dedicated         A. The Authority shall not execute a financial assistance agree-
               revenue source for repayment;                                  ment with an applicant until the applicant provides all docu-
          f. A summary of current fees for drinking or wastewa-               mentation specified by the Authority and the requirements of
               ter services including, as applicable, any resolutions         R18-15-106 are met. Projects under the Water Supply Devel-
               passed by the governing body of a political subdivi-           opment Revolving Fund Program are not subject to the
               sion; and                                                      requirements of R18-15-106. For planning and design loans
          g. Copies of documentation relating to outstanding                  that include an environmental information document or an
               indebtedness pledged to the dedicated source for               environmental impact statement, the Authority may execute a
               repayment, including official statements, financial            financial assistance agreement with an applicant prior to the
               assistance agreements, and amortization schedules.             completion of the conditions of R18-15-106, provided that the
     2. If any of the required information listed in subsection               applicant meets the requirements of R18-15-106 before pro-
          (C)(1) is not available, the Authority may assist the appli-        ceeding with the design of the selected alternative.
          cant in determining alternative documentation to support        B. The documentation required prior to execution of the financial
          the applicant’s financial capability.                               assistance agreement shall at a minimum include:
     3. The Authority may ask for additional financial informa-               1. One copy of the governing body resolution approving the
          tion as necessary to evaluate the applicant’s financial                  execution of the financial assistance agreement,
          capability.                                                         2. A project budget, and
D.   The applicant shall demonstrate the applicant is technically
                                                                              3. An estimated disbursement schedule.
     capable to construct, operate, and maintain the proposed
                                                                          C. The financial assistance agreement between the recipient and
     project.
                                                                              the Authority shall at a minimum specify:
     1. The applicant shall provide the following information:
                                                                              1. Rates of interest, fees, and any costs as determined by the
          a. An estimate of the project costs in as much detail as
                                                                                   Authority;
               possible, including an estimate of applicable plan-
               ning, design, construction, and material costs;                2. Project details;
          b. The number of connections to be served by the pro-               3. The maximum amount of principal and interest due on
               posed project;                                                      any payment date;
          c. The most recent version of the applicant’s capital               4. Debt service coverage requirements;
               improvement plan or other plan explaining proposed             5. Reporting requirements;
               infrastructure investments;                                    6. Debt service reserve fund and repair and replacement
          d. One copy of each feasibility study, engineering                       reserve fund requirements;
               report, design memorandum, set of plans and speci-             7. The dedicated source for repayment and pledge;
               fications, and other technical documentation related           8. The requirement that the recipient comply with applica-
               to the proposed project and determined applicable                   ble federal, state and local laws;
               by the Authority for the stage of project completion;          9. A schedule for repayment; and
          e. Copies of resumés, biographies, or related informa-              10. Any other agreed-upon conditions.
               tion of the certified operators, system employees, or      D. The Authority may require a recipient to pay a proportionate
               contractors employed by the applicant to operate and           share of the expenses of the Authority’s operating costs.
               maintain the existing facilities and the proposed          E. The recipient shall maintain the project account in accordance
               project;                                                       with generally accepted government accounting standards.
          f. A description of the service area, including maps;               After reasonable notice by the Authority, the recipient shall
               and                                                            make available any project records reasonably required to


Supp. 10-3                                                           Page 4                                               September 30, 2010
                                                        Arizona Administrative Code                                              Title 18, Ch. 15
                                              Water Infrastructure Finance Authority of Arizona

     determine compliance with the provisions of this Chapter and                   c.     Will provide capacity to serve a population 30%
     the financial assistance agreement.                                                   greater than the existing population,
F.   The Authority shall release loan proceeds subject to a dis-                     d. Are not supported by the state or other regional
     bursement request if the request is consistent with the financial                     growth plan or strategy, or
     assistance agreement and the disbursement schedule.                             e. Directly or indirectly involve or relate to upgrading
     1. The applicant shall submit each disbursement request on                            or extending infrastructure systems primarily for the
           the forms provided by the Authority. Each disbursement                          purposes of future development.
           request shall include a certification and signature docu-           2. Any clean water project in unsewered communities
           ment, a cost-incurred report, and a DBE report. The                       involving the replacement of existing onsite systems, pro-
           Authority shall not process a disbursement until the appli-               viding the new onsite systems do not result in substantial
           cant provides a completed disbursement form.                              increases in the volume of discharge or the loadings of
     2. The applicant shall include copies of invoices, canceled                     pollutants from existing sources, or relocate an existing
           checks, or other documents that show proof of eligible                    discharge.
           costs incurred with each disbursement request.                 C.   The Authority shall deny a categorical exclusion if any of the
G.   The recipient shall make repayments according to an agreed-               following extraordinary circumstances apply to the project:
     upon schedule in the financial assistance agreement. The                  1. The project is known or expected to have potentially sig-
     Authority may charge a late fee for any loan repayment not                      nificant adverse environmental impacts on the quality of
     paid when due. The Authority may refer any loan repayment                       the human environment either individually or cumula-
     past due to the Office of the Attorney General for appropriate                  tively over time.
     action.                                                                   2. The project is known or expected to have disproportion-
                                                                                     ately high and adverse human health or environmental
                        Historical Note                                              effects on any community, including minority communi-
       Adopted effective September 18, 1997 (Supp. 97-3).                            ties, low-income communities, or federally-recognized
     Amended by final rulemaking at 7 A.A.R. 5956, effective                         Indian tribal communities.
      December 4, 2001 (Supp. 01-4). Section repealed; new                     3. The project is known or expected to significantly affect
      Section made by final rulemaking at 16 A.A.R. 1709,                            federally listed threatened or endangered species or their
             effective October 9, 2010 (Supp. 10-3).                                 critical habitat.
                                                                               4. The project is known or expected to significantly affect
R18-15-106. Environmental Review                                                     national natural landmarks or any property with nation-
A. The Authority shall conduct an environmental review accord-                       ally significant historic, architectural, prehistoric, archeo-
    ing to this Section for impacts of the design or construction of                 logical, or cultural value, including but not limited to,
    water infrastructure. Projects under the Water Supply Devel-                     property listed on or eligible for the Arizona or National
    opment Revolving Fund Program are not subject to the                             Registers of Historic Places.
    requirements of R18-15-106. As part of the application pro-                5. The project is known or expected to significantly affect
    cess, the Authority shall request information from the appli-                    environmentally important natural resource areas such as
    cant to conduct an environmental review consistent with 40                       wetlands, floodplains, significant agricultural lands, aqui-
    CFR 35.3140 and 40 CFR 35.3580. The Authority shall deter-                       fer recharge zones, wild and scenic rivers, and significant
    mine whether the project meets the criteria for categorical                      fish or wildlife habitat.
    exclusion under subsections (B) and (C), or whether the                    6. The project is known or expected to cause significant
    project requires the preparation of an environmental assess-                     adverse air quality effects.
    ment (EA) or an environmental impact statement (EIS) to                    7. The project is known or expected to have a significant
    identify and evaluate its environmental impacts.                                 effect on the pattern and type of land use or growth and
B. A project may be categorically excluded from environmental                        distribution of population, including altering the charac-
    review if the project fits within a category that is eligible for                ter of existing residential areas, or may not be consistent
    exclusion and the project does not involve any of the extraor-                   with state or local government, or federally-recognized
    dinary circumstances listed in subsection (C). If, based on the                  Indian tribe approved land use or federal land manage-
    application and other information submitted by the applicant,                    ment plans.
    the Authority determines that a categorical exclusion from an              8. The project is known or expected to cause significant
    environmental review is warranted, the project is exempt from                    public controversy about a potential environmental
    the requirements of this Section, except for the public notice                   impact of the proposed action.
    and participation requirements in subsection (J). The Author-              9. The project is known or expected to be associated with
    ity may issue a categorical exclusion if information and docu-                   providing financial assistance to a federal agency through
    ments demonstrate that the project qualifies under one or more                   an interagency agreement for a project that is known or
    of the following categories:                                                     expected to have potentially significant environmental
    1. Any project relating to existing infrastructure systems                       impacts.
         that involves minor upgrading, minor expansion of sys-                10. The project is known or expected to conflict with federal,
         tem capacity, rehabilitation (including functional replace-                 state, or local government, or federally-recognized Indian
         ment) of the existing system and system components, or                      tribe environmental, resource-protection, or land-use
         construction of new minor ancillary facilities adjacent to                  laws or regulations.
         or on the same property as existing facilities. This cate-       D.   If the Authority denies the categorical exclusion under subsec-
         gory does not include projects that:                                  tion (C), the Authority shall conduct an EA according to sub-
         a. Involve new or relocated discharges to surface water               section (E), unless the Authority decides to prepare an EIS
               or groundwater,                                                 according to subsections (F) and (G) without first undertaking
         b. Will likely result in the substantial increase in the              an EA. If the Authority conducts an EA, the applicant shall:
               volume or the loading of pollutant to the receiving             1. Prepare an environmental information document (EID) in
               water,                                                                a format prescribed by the Authority. The EID shall be of


September 30, 2010                                                   Page 5                                                            Supp. 10-3
Title 18, Ch. 15                                         Arizona Administrative Code
                                               Water Infrastructure Finance Authority of Arizona

          sufficient scope to undertake an environmental review                            zones, wild and scenic rivers, and significant fish or
          and to allow development of an EA under subsection (E);                          wildlife habitat.
          or                                                                         j. The project in conjunction with related federal, state,
     2. Provide documentation, upon Authority approval, in                                 or local government, or federally-recognized Indian
          another format if the documentation is of sufficient scope                       tribe projects is likely to produce significant cumula-
          to allow the development of an EA under subsection (E).                          tive impacts.
E.   The Authority shall conduct the EA that includes:                               k. The project is likely to significantly affect the pat-
     1. A brief discussion of:                                                             tern and type of land use or growth and distribution
          a. The need for the project;                                                     of population, including altering the character of
          b. The alternatives, including a no action alternative;                          existing residential areas.
          c. The affected environment, including baseline condi-                     l. The project is a new regional wastewater treatment
                tions that may be impacted by the project and alter-                       facility or water supply system for a community
                natives;                                                                   with a population greater than 100,000.
          d. The environmental impacts of the project and alter-                     m. The project is an expansion of an existing wastewa-
                natives, including any unresolved conflicts concern-                       ter treatment facility that will increase existing dis-
                ing alternative uses of available resources; and                           charge to an impaired water by more than 10 million
          e. Other applicable environmental laws.                                          gallons per day (mgd).
     2. A listing or summary of any coordination or consultation                2. The Authority may issue a finding of no significant
          undertaken with any federal agency, state or local govern-                 impact (FONSI) if the EA supports the finding that the
          ment, or federally-recognized Indian tribe regarding com-                  project will not have a significant impact on the environ-
          pliance with applicable laws and executive orders;                         ment. The FONSI shall include the submitted EA and a
     3. Identification and description of any mitigation measures                    brief description of the project, alternatives considered,
          considered, including any mitigation measures that must                    and project impacts. The FONSI must also include any
          be adopted to ensure the project will not have significant                 commitments to mitigation that are essential to render the
          impacts; and                                                               impacts of the project not significant. The Authority shall
     4. Incorporation of documents by reference, if appropriate,                     issue the FONSI for public comment in accordance with
          including the EID.                                                         subsection (J).
F.   Upon completion of the EA required by subsection (E), the             G.   The Authority shall prepare or direct the applicant to prepare
     Authority shall determine whether an environmental impact                  an EIS required by subsection (F)(1) when the project will sig-
     statement (EIS) is necessary.                                              nificantly impact the environment, including any project for
     1. The Authority shall prepare or direct the applicant to pre-             which the EA analysis demonstrates that significant impacts
          pare an EIS in the manner prescribed in subsection (G) if             will occur and not be reduced or eliminated by changes to, or
          any of the following conditions exist.                                mitigation of, the project. The Authority shall perform the fol-
          a. The project would result in a discharge of treated                 lowing actions:
                effluent from a new or modified existing facility into
                                                                                1. As soon as practicable after its decision to prepare an EIS
                a body of water and the discharge is likely to have a
                                                                                     and before the scoping process, the Authority shall pre-
                significant effect on the quality of the receiving
                                                                                     pare a notice of intent. The notice of intent shall briefly
                water.
                                                                                     describe the project and possible alternatives and the pro-
          b. The project is likely to directly, or through induced                   posed scoping process. The Authority shall distribute the
                development, have significant adverse effect upon                    notice of intent to affected federal, state, and local agen-
                local ambient air quality or local ambient noise lev-                cies, any affected Indian tribe, the applicant, and other
                els.                                                                 interested parties. The Authority shall issue the notice of
          c. The project is likely to have significant adverse                       intent for public comment in accordance with subsection
                effects on surface water reservoirs or navigation                    (J)(3).
                projects.
                                                                                2. As soon as possible after the distribution and publication
          d. The project would be inconsistent with state or local
                                                                                     of the notice of intent required by subsection (G)(1), the
                government, or federally-recognized Indian tribe
                                                                                     Authority shall convene a meeting of affected federal,
                approved land use plans or regulations, or federal
                                                                                     state, and local agencies, affected Indian tribes, the appli-
                land management plans.
                                                                                     cant, and other interested parties. At the meeting, the par-
          e. The project would be inconsistent with state or local
                                                                                     ties attending the meeting shall determine the scope of the
                government, or federally-recognized Indian tribe
                                                                                     EIS by considering a number of factors, including all of
                environmental, resource-protection, or land-use laws
                                                                                     the following:
                and regulations for the protection of the environ-
                ment.                                                                a. The significant issues to be analyzed in depth in the
          f. The project is likely to significantly affect the envi-                       EIS,
                ronment through the release of radioactive, hazard-                  b. The preliminary range of alternatives to be consid-
                ous, or toxic substances, or biota.                                        ered,
          g. The project involves uncertain environmental effects                    c. The potential cooperating agencies and information
                or highly unique environmental risks that are likely                       or analyses that may be needed from cooperating
                to be significant.                                                         agencies or other parties, and
          h. The project is likely to significantly affect national                  d. The method for EIS preparation and the public par-
                natural landmarks or any property on or eligible for                       ticipation strategy.
                the Arizona or National Registers of Historic Places.           3. Upon completion of the process described in subsection
          i. The project is likely to significantly affect environ-                  (G)(2), the Authority shall identify and evaluate all
                mentally important natural resources such as wet-                    potentially viable alternatives to adequately address the
                lands, significant agricultural lands, aquifer recharge              range of issues identified. Additional issues also may be


Supp. 10-3                                                            Page 6                                                September 30, 2010
                                                       Arizona Administrative Code                                            Title 18, Ch. 15
                                             Water Infrastructure Finance Authority of Arizona

        addressed, or others eliminated, and the reasons docu-                     The Authority may proceed with the project subject to
        mented as part of the EIS.                                                 any mitigation measures described in the FONSI after
   4. After the analysis of issues is conducted according to sub-                  responding to any substantive comments received on the
        section (G)(3), the Authority shall issue a draft EIS for                  FONSI during the 30-day comment period, or 30 days
        public comment according to subsection (J)(4).                             after issuance of the FONSI if no substantive comments
   5. Following public comment according to subsection (J),                        are received.
        the Authority shall prepare a final EIS, consisting of all of         3.   If a notice of intent is prepared and distributed under sub-
        the following:                                                             section (G)(1), the Authority shall publish it as a legal
        a. The draft EIS.                                                          notice at least once, in one or more newspapers of general
        b. An analysis of all reasonable alternatives and the no                   circulation in the county or counties concerned.
              action alternative;                                             4.   If a draft EIS is issued under subsection (G)(4), the
        c. A summary of any coordination or consultation                           Authority shall provide public notice by publishing the
              undertaken with any federal, state, or local govern-                 notice as a legal notice at least once, in one or more news-
              ment, or federally-recognized Indian tribe;                          papers of general circulation in the county or counties
        d. A summary of the public participation process;                          concerned, that the draft EIS is available for public
        e. Comments received on the draft EIS;                                     review. The notice shall provide that comments on the
        f. A list of persons commenting on the draft EIS;                          draft EIS may be submitted to the Authority for a period
        g. The Authority’s responses to significant comments                       of 45 days from the date of publication of the notice.
              received;                                                            When the Authority determines that a project may be
        h. A determination of consistency with the Certified                       controversial, the notice shall provide for a general public
              Water Quality Management Plan, if applicable;                        hearing to receive public comments.
        i. The names and qualifications of the persons prima-                 5.   If the Authority reaffirms or revises a decision according
              rily responsible for preparing the EIS; and                          to subsection (I), the Authority shall provide public
        j. Any other information added by the Authority.                           notice of that fact by publishing the notice as a legal
   6. The Authority shall prepare or direct the applicant to pre-                  notice at least once, in one or more newspapers of general
        pare a supplemental EIS when appropriate, including                        circulation in the county or counties concerned.
        when substantial changes are made to the project that are                                  Historical Note
        relevant to environmental concerns, or when there are
        significant new circumstances or information relevant to                 Adopted effective September 18, 1997 (Supp. 97-3).
        environmental concerns bearing on the project.                        Amended by final rulemaking at 7 A.A.R. 5956, effective
                                                                               December 4, 2001 (Supp. 01-4). Section repealed; new
H. After issuance of a final EIS under subsection (G)(5), the
                                                                                Section made by final rulemaking at 16 A.A.R. 1709,
   Authority shall prepare and issue a record of decision (ROD)
                                                                              effective October 9, 2010 (Supp. 10-3). Section repealed;
   containing the Authority’s decision whether to proceed or not
                                                                                 new R18-15-106 renumbered from R18-15-107 and
   proceed with a project. A ROD issued with a decision to pro-
                                                                               amended at 16 A.A.R. 1709, effective October 9, 2010
   ceed shall include a brief description of the project, alterna-
                                                                                                    (Supp. 10-3).
   tives considered, and project impacts. In addition, the ROD
   must include any commitments to mitigation, an explanation if         R18-15-107. Disputes
   the environmental preferred alternative was not selected, and         A. Any interested party having a substantial financial interest in
   any responses to substantive comments on the final EIS. A                 or suffering a substantial adverse financial impact from an
   ROD issued with a decision not to proceed shall preclude the              action taken under this Chapter, excluding actions taken under
   project from receiving financial assistance under this Article.           R18-15-503, R18-15-504, and R18-15-505, may file a formal
I. For all determinations (categorical exclusions, FONSIs, or                letter of dispute with the executive director according to sub-
   RODs) that are five years old or older and for which the                  sections (B), (C), (D), and (E). Any interested party having a
   project has not been implemented, the Authority shall re-eval-            substantial financial interest in or suffering a substantial
   uate the project, environmental conditions, and public views to           adverse financial impact from an action taken under R18-15-
   determine whether to conduct a supplemental environmental                 503, R18-15-504 or R18-15-505 shall proceed under R18-15-
   review of the project and complete an appropriate environ-                503(H), R18-15-504(H) or R18-15-505(H), as applicable.
   mental review document or reaffirm the Authority’s original           B. The interested party shall file the formal letter of dispute with
   determination. The Authority shall provide public notice of the           the executive director within 30 days of the action and provide
   re-evaluation according to subsection (J)(5).                             a copy to each member of the Board or Committee. The formal
J. The Authority shall conduct public notice and participation               letter of dispute shall include the following information:
   under this Section as follows:                                            1. The name, address, and telephone number of the inter-
   1. If a categorical exclusion is granted under subsection (B),                  ested party;
        the Authority shall provide public notice of that fact by
                                                                             2. The signature of the interested party or the interested
        publishing the notice as a legal notice at least once, in one
                                                                                   party’s representative;
        or more newspapers of general circulation in the county
        or counties concerned.                                               3. A detailed statement of the legal and factual grounds of
                                                                                   the dispute including:
   2. If a FONSI is issued under subsection (F)(2), the Author-
        ity shall provide public notice that the FONSI is available                a. Copies of relevant documents, and
        for public review by publishing the notice as a legal                      b. The nature of the substantial financial interest or the
        notice at least once in one or more newspapers of general                       nature of the substantial adverse financial impact of
        circulation in the county or counties concerned. The                            the interested party; and
        notice shall provide that comments on the FONSI may be               4. The form of relief requested.
        submitted to the Authority for a period of 30 days from          C. Within 30 days of receipt of a dispute letter, the Authority shall
        the date of publication of the notice. If no comments are            issue a preliminary decision in writing, to be forwarded by cer-
        received, the FONSI shall immediately become effective.              tified mail to the party.


September 30, 2010                                                  Page 7                                                         Supp. 10-3
Title 18, Ch. 15                                       Arizona Administrative Code
                                             Water Infrastructure Finance Authority of Arizona

D.   Any party filing a dispute under subsection (B) that disagrees           new Section R18-15-112 renumbered from R18-15-111
     with a preliminary decision of the Authority may file a formal          (Supp. 98-2). Former Section R18-15-112 renumbered to
     letter of appeal, explaining why the party disagrees with the            R18-15-111; new Section R18-15-112 renumbered from
     preliminary decision, with the Board, provided the letter is               R18-15-113 and amended by final rulemaking at 7
     received by the executive director not more than 15 days after           A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).
     the receipt by the party of the preliminary decision.                    Former R18-15-112 renumbered to R18-15-107 by final
E.   The Board shall issue a final decision on issues appealed under         rulemaking at 16 A.A.R. 1709, effective October 9, 2010
     subsection (D) not more than 60 days after receipt of the for-                                (Supp. 10-3).
     mal letter of appeal.
                                                                        R18-15-113. Renumbered
                        Historical Note
       Adopted effective September 18, 1997 (Supp. 97-3).                                         Historical Note
      Amended effective June 4, 1998 (Supp. 98-2). Former                       Section R18-15-113 renumbered from R18-15-112
      R18-15-107 renumbered to R18-15-106; new R18-15-                        (Supp. 98-2). Section R18-15-113 renumbered to R18-
     107 renumbered from R18-15-112 and amended by final                      15-112 by final rulemaking at 7 A.A.R. 5956, effective
     rulemaking at 16 A.A.R. 1709, effective October 9, 2010                             December 4, 2001 (Supp. 01-4).
                          (Supp. 10-3).                                      ARTICLE 2. CLEAN WATER REVOLVING FUND
R18-15-108. Repealed                                                    R18-15-201. Clean Water Revolving Fund Financial Assis-
                          Historical Note                               tance Eligibility Criteria
        Adopted effective September 18, 1997 (Supp. 97-3).              To be eligible to receive financial assistance from the Clean Water
       Amended effective June 4, 1998 (Supp. 98-2). Section             Revolving Fund, the applicant shall demonstrate the applicant is a
        repealed; new Section R18-15-108 renumbered from                governmental unit requesting financial assistance for a purpose as
     R18-15-109 by final rulemaking at 7 A.A.R. 5956, effec-            defined in A.R.S. § 49-1223(A); the proposed project is to design,
     tive December 4, 2001 (Supp. 01-4). Section repealed by            construct, acquire, improve, or refinance a publicly owned waste-
     final rulemaking at 16 A.A.R. 1709, effective October 9,           water treatment facility, or for any other purpose permitted by the
                        2010 (Supp. 10-3).                              Clean Water Act including nonpoint source projects; and the pro-
                                                                        posed project appears on the Clean Water Revolving Fund Project
R18-15-109. Repealed                                                    Priority List developed under R18-15-203.
                         Historical Note                                                         Historical Note
       Adopted effective September 18, 1997 (Supp. 97-3).                      Adopted effective September 18, 1997 (Supp. 97-3).
     Former Section R18-15-109 renumbered to R18-15-108;                     Amended effective June 4, 1998 (Supp. 98-2). Amended
     new Section R18-15-109 renumbered from R18-15-110                      by final rulemaking at 7 A.A.R. 5956, effective December
     by final rulemaking at 7 A.A.R. 5956, effective Decem-                 4, 2001 (Supp. 01-4). Amended by final rulemaking at 16
     ber 4, 2001 (Supp. 01-4). Section repealed by final rule-                A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).
      making at 16 A.A.R. 1709, effective October 9, 2010
                          (Supp. 10-3).                                 R18-15-202. Clean Water Revolving Fund Intended Use Plan
                                                                        A. The Authority annually shall develop and publish a Clean
R18-15-110. Repealed                                                        Water Revolving Fund Intended Use Plan that identifies the
                           Historical Note                                  intended uses of funds available in the Clean Water Revolving
        Adopted effective September 18, 1997 (Supp. 97-3).                  Fund Program. The Intended Use Plan shall include the project
      Former Section R18-15-110 renumbered to R18-15-111;                   priority list according to R18-15-203. If the Intended Use Plan
     new Section adopted effective June 4, 1998 (Supp. 98-2).               is to be submitted as one of the documents required to obtain a
      Former Section R18-15-110 renumbered to R18-15-109;                   federal capitalization grant under Title VI of the Clean Water
      new Section R18-15-110 renumbered from R18-15-111                     Act, 33 U.S.C. 1381 to 1387, the Intended Use Plan shall
        and amended by final rulemaking at 7 A.A.R. 5956,                   include any additional information required by federal law.
         effective December 4, 2001 (Supp. 01-4). Section               B. The Authority shall provide for a public review and written
     repealed by final rulemaking at 16 A.A.R. 1709, effective              comment period of the draft Clean Water Revolving Fund
                   October 9, 2010 (Supp. 10-3).                            Intended Use Plan for a minimum of 14 calendar days. The
                                                                            Authority shall summarize all written comments submitted
R18-15-111. Repealed                                                        and prepare responses for Board review. After review of the
                         Historical Note                                    summary, the Board shall make any appropriate changes to the
        Adopted effective September 18, 1997 (Supp. 97-3).                  Plan and then adopt the Clean Water Revolving Fund Intended
      Former Section R18-15-111 renumbered to R18-15-112;                   Use Plan at a public meeting.
      new Section R18-15-111 renumbered from R18-15-110                                          Historical Note
     and amended effective June 4, 1998 (Supp. 98-2). Former                  Adopted effective September 18, 1997 (Supp. 97-3).
        Section R18-15-111 renumbered to R18-15-110; new                    Amended by final rulemaking at 7 A.A.R. 5956, effective
       Section R18-15-111 renumbered from R18-15-112 and                     December 4, 2001 (Supp. 01-4). Section repealed; new
     amended by final rulemaking at 7 A.A.R. 5956, effective                R18-15-202 renumbered from R18-15-203 and amended
     December 4, 2001 (Supp. 01-4). Section repealed by final               by final rulemaking at 16 A.A.R. 1709, effective October
     rulemaking at 16 A.A.R. 1709, effective October 9, 2010                                  9, 2010 (Supp. 10-3).
                           (Supp. 10-3).
                                                                        R18-15-203. Clean Water Revolving Fund Project Priority
R18-15-112. Renumbered
                                                                        List
                        Historical Note                                 A. The Authority annually shall prepare a Clean Water Revolving
       Adopted effective September 18, 1997 (Supp. 97-3).                    Fund Project Priority List as part of the Intended Use Plan
     Former Section R18-15-112 renumbered to R18-15-113;                     described in R18-15-202. The Board may waive the require-


Supp. 10-3                                                         Page 8                                              September 30, 2010
                                                         Arizona Administrative Code                                             Title 18, Ch. 15
                                               Water Infrastructure Finance Authority of Arizona

     ment to develop a Clean Water Revolving Fund Project Prior-            R18-15-204. Clean Water Revolving Fund Project Priority
     ity List if funds are not adequate to assist any projects or if the    List Ranking
     Board determines that no financial assistance will be offered          A. The Authority shall rank each project on the Clean Water
     for the annual funding cycle.                                               Revolving Fund Project Priority List based on the priority
B.   An applicant pursuing financial assistance from the Authority               value of each project. The Authority shall consider the follow-
     for a project shall request to have the project included on the             ing categories to determine the priority value of each project:
     Clean Water Revolving Fund Project Priority List. The appli-                1. The Authority shall evaluate the current conditions of the
     cant may request that multiple projects be placed on the Clean                   project, including existing environmental, structural, and
     Water Revolving Fund Project Priority List. An applicant shall                   regulatory integrity and the degree to which the project is
     make a request for placement of a project on the Clean Water                     consistent with the Clean Water Act, 33 U.S.C. 1251 to
     Revolving Fund Project Priority List on or before a date speci-                  1387.
     fied by the Authority and in an application format specified by             2. The Authority shall evaluate the degree to which the
     the Authority. The Authority shall include with the project pri-                 project improves or protects water quality.
     ority list application form the criteria under each ranking cate-           3. The Authority shall evaluate the degree to which the
     gory in R18-15-204(A), by which the project will be evaluated                    project addresses water or energy efficiency or environ-
     and the relative importance of each of the criterion.                            mentally innovative approaches.
C.   In preparing the Clean Water Revolving Fund Project Priority                4. The Authority shall evaluate the degree to which the
     List, the Authority shall consider all project priority list appli-              project promotes any of the following:
     cations submitted under subsection (B), all projects requested                   a. Consolidation of facilities, operations, and owner-
     by regulatory authorities, and all plans prepared according to                         ship;
     the Clean Water Act, 33 U.S.C. 1251 to 1387. The Authority
                                                                                      b. Extending service to existing areas currently served
     shall evaluate the merits of each project with respect to water
                                                                                            by another facility; or
     quality issues and determine the priority value of each project
     according to R18-15-204. At a minimum, the Clean Water                           c. A regional approach to operations, management, or
     Revolving Fund Project Priority List shall identify:                                   new facilities.
     1. The applicant,                                                           5. The Authority shall determine whether the project
     2. Project title,                                                                received assistance from the Authority in a previous
                                                                                      funding cycle.
     3. Type of project,
     4. The amount requested for financial assistance,                           6. The Authority shall evaluate the applicant’s local fiscal
                                                                                      capacity.
     5. The subsidy rate index according to R18-15-204(C),
                                                                            B. If two or more projects have the same rank according to sub-
     6. Whether the project is within the fundable range accord-
                                                                                 section (A), the Authority shall give priority to the project with
           ing to R18-15-205, and
                                                                                 the highest current condition value under subsection (A)(1). If
     7. The rank of each project by the priority value determined
                                                                                 projects remain tied, priority will be given to the project with
           according to R18-15-204.
                                                                                 the highest water quality improvement value under subsection
D.   After adoption of the annual Intended Use Plan and project                  (A)(2). If projects remain tied, this process shall continue
     priority list according to R18-15-202, the Board may allow:                 through the categories under subsections (A)(3) through (6),
     1. Updates and corrections to the adopted Clean Water                       sequentially. If projects continue to have the same priority
           Revolving Fund Project Priority List, if the updates and              value, the Board shall determine the priority of the tied
           corrections are adopted by the Board after an opportunity             projects.
           for public comment at a public meeting; or                       C. The Authority shall determine the subsidy rate index for each
     2. Additions to the Clean Water Revolving Fund Project Pri-                 project on the Clean Water Revolving Fund Project Priority
           ority List, if the additions are adopted by the Board after           List based on the applicant’s local fiscal capacity value under
           an opportunity for public comment at a public meeting.                subsection (A)(6) and the overall priority value of the project.
E.   After an opportunity for public comment at a public meeting,                The Authority shall incorporate the subsidy rate index in the
     the Board may remove a project from the Clean Water Revolv-                 financial assistance agreement.
     ing Fund Project Priority List under one or more of the follow-
     ing circumstances:                                                                               Historical Note
     1. The recipient has received all financial assistance identi-                 Adopted effective September 18, 1997 (Supp. 97-3).
           fied in the executed financial assistance agreement with               Amended effective June 4, 1998 (Supp. 98-2). Amended
           the Authority;                                                        by final rulemaking at 7 A.A.R. 5956, effective December
     2. The project was financed with long-term indebtedness                     4, 2001 (Supp. 01-4). Amended by final rulemaking at 16
           from another source;                                                    A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).
     3. The project is no longer an eligible project;                       R18-15-205. Clean Water Revolving Fund Fundable Range
     4. The applicant requests removal;                                     for Financial Assistance
     5. The applicant is no longer an eligible applicant; or                A. Prior to adoption by the Board of the Clean Water Revolving
     6. The applicant did not update, modify, correct or resubmit                Fund Project Priority List, the Authority shall determine which
           a project that remained on the project priority list for              projects are within the fundable range.
           more than 365 days.                                              B. In determining the fundable range, the Authority shall evaluate
                        Historical Note                                          each project for evidence that the project is ready to proceed.
       Adopted effective September 18, 1997 (Supp. 97-3).                        The Authority shall consider the following indicators when
     Amended by final rulemaking at 7 A.A.R. 5956, effective                     evaluating whether the project is within the fundable range:
       December 4, 2001 (Supp. 01-4). Former R18-15-203                          1. Evidence of debt authorization according to R18-15-
      renumbered to R18-15-202; new Section made by final                             104(B);
     rulemaking at 16 A.A.R. 1709, effective October 9, 2010                     2. Evidence that the applicant has obtained applicable local,
                          (Supp. 10-3).                                               state, or federal project permits, as applicable;


September 30, 2010                                                     Page 9                                                          Supp. 10-3
Title 18, Ch. 15                                        Arizona Administrative Code
                                              Water Infrastructure Finance Authority of Arizona

     3.   Evidence of approval by the appropriate authority of                4.    A summary of the applicant’s managerial capability,
          project plans and specifications; and                                     including the experience of elected officials and manage-
     4.   Evidence that the applicant has initiated the bid or solici-              ment team in managing similar organizations and similar
          tation process.                                                           projects;
                                                                              5. A summary of the applicant’s financial capability, includ-
                          Historical Note                                           ing:
     Adopted effective September 18, 1997 (Supp. 97-3). Sec-                        a. The amount of money collected through the dedi-
     tion repealed; new Section R18-15-205 renumbered from                               cated revenue source for repayment for each of the
         R18-15-206 and amended by final rulemaking at 7                                 previous three fiscal years,
      A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).
                                                                                    b. An estimate of the amount of money that will be col-
      Amended by final rulemaking at 16 A.A.R. 1709, effec-
                                                                                         lected through the dedicated revenue source for
                 tive October 9, 2010 (Supp. 10-3).
                                                                                         repayment for the current fiscal year, and
R18-15-206. Clean Water Revolving Fund Application for                              c. A projection of the amount of money that will be
Financial Assistance                                                                     collected through the dedicated revenue source for
A. The Authority shall accept an application for financial assis-                        repayment for each of the next five fiscal years;
    tance from an eligible applicant for a project that appears on            6. The applicant’s history of compliance with, as applicable,
    the Clean Water Revolving Fund Project Priority List and is                     the Clean Water Act, 33 U.S.C. 1251 to 1387, related Ari-
    determined to be in the fundable range. At the Authority’s dis-                 zona statutes, and related rules, regulations, and policies;
    cretion, the Authority may accept an application for financial                  and
    assistance prior to the project appearing on a Board-adopted              7. A summary of any previous assistance provided by the
    Clean Water Revolving Fund Project Priority List.                               Authority to the applicant.
B. The Authority shall not forward an application to the Board for       B.   The Board shall make a determination regarding the appli-
    consideration until all the following conditions are met:                 cant’s request for financial assistance at a public meeting. The
    1. The project is on the Clean Water Revolving Fund Project               Board shall base this determination on the information pro-
         Priority List;                                                       vided in the application, the analysis prepared by the Author-
    2. The applicant has provided supporting documentation                    ity, and any other information provided at the public meeting.
         according to R18-15-205(B);                                          The Authority shall inform the applicant of the Board’s deter-
    3. The applicant has demonstrated legal capability, financial             mination, which may include recommended modifications to
         capability, technical capability, and managerial capability          any of the following:
         as described in R18-15-104;                                          1. The proposed project,
    4. For nonpoint source projects, the applicant has provided               2. The applicant’s legal structure and organization,
         evidence that the project is consistent with Section 319             3. The dedicated revenue source for repayment, or
         and Title VI of the Clean Water Act, 33 U.S.C. 1329,                 4. The structure of the financial assistance request.
         1381 to 1387;                                                   C.   If the Board determines at any time during a funding cycle that
    5. The applicant has obtained or is in the process of obtain-             funds are limited or are not available to provide financial assis-
         ing all permits and approvals required by federal, state,            tance, the Authority shall notify applicants on the current
         and local authorities; and                                           Clean Water Revolving Fund Project Priority List that the
    6. The proposed project is consistent with the Certified                  Authority is no longer accepting applications. The Board shall
         Water Quality Management Plan.                                       determine the amount of funding available, if any, to provide
C. The application criteria required under subsections (A) and (B)            financial assistance for the applications already accepted by
    shall not apply to financial assistance requests for short-term           the Authority. The Board shall consider each application in the
    emergency loans under A.R.S. § 49-1269.                                   order the project appears within the fundable range on the cur-
                                                                              rent Clean Water Revolving Fund Project Priority List. The
                        Historical Note
                                                                              Board shall make a determination as described in subsection
      Adopted effective September 18, 1997 (Supp. 97-3).                      (B) on each application until the available funds are commit-
     Amended effective June 4, 1998 (Supp. 98-2). Former                      ted.
      Section R18-15-206 renumbered to R18-15-205; new
                                                                         D.   Upon Board approval of the applicant’s request for financial
       Section R18-15-206 made by final rulemaking at 7
                                                                              assistance, the Authority shall prepare a financial assistance
     A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).
                                                                              agreement for execution by the applicant and the Authority.
     Amended by final rulemaking at 16 A.A.R. 1709, effec-
               tive October 9, 2010 (Supp. 10-3).                                                 Historical Note
R18-15-207.      Clean Water Revolving Fund Application                         Adopted effective September 18, 1997 (Supp. 97-3).
Review for Financial Assistance                                                Amended effective June 4, 1998 (Supp. 98-2). Section
A. The Authority shall evaluate and summarize each application                  repealed; new Section made by final rulemaking at 7
    received and develop an analysis that provides recommenda-                 A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).
                                                                               Amended by final rulemaking at 16 A.A.R. 1709, effec-
    tions to the Board. The analysis shall at a minimum include:
                                                                                         tive October 9, 2010 (Supp. 10-3).
    1. The scope, size, and budget of the proposed project,
         including as much cost detail as possible;                      R18-15-208. Clean Water Revolving Fund Requirements
    2. A summary of the applicant’s legal capability including           A. The duly authorized agent, principal or officer of the applicant
         authorization to enter into long-term indebtedness and to           shall certify that the applicant has not violated any federal,
         pledge the specified dedicated revenue source for repay-            state, or local law pertaining to fraud, bribery, graft, kickbacks,
         ment;                                                               collusion, conflict of interest, or other unlawful or corrupt
    3. A summary of the applicant’s technical capability includ-             practices relating to or in connection with facilities planning,
         ing its ability to construct, operate, and maintain the pro-        design, or construction work on a wastewater treatment facil-
         posed project;                                                      ity project.


Supp. 10-3                                                          Page 10                                               September 30, 2010
                                                       Arizona Administrative Code                                           Title 18, Ch. 15
                                             Water Infrastructure Finance Authority of Arizona

B.   All projects shall comply with the provisions of the Civil         B.   An applicant pursuing financial assistance from the Authority
     Rights Act of 1964, P.L. 88-352, 42 U.S.C. 2000d et seq., and           for a project shall request to have the project included on the
     all other applicable federal laws.                                      Drinking Water Revolving Fund Project Priority List. The
                                                                             applicant may request that multiple projects be placed on the
                        Historical Note
                                                                             Drinking Water Revolving Fund Project Priority List. An
      Adopted effective September 18, 1997 (Supp. 97-3).                     applicant shall make a request for placement of a project on
     Amended by final rulemaking at 7 A.A.R. 5956, effective                 the Drinking Water Revolving Fund Project Priority List on or
     December 4, 2001 (Supp. 01-4). Amended by final rule-                   before a date specified by the Authority and in an application
      making at 16 A.A.R. 1709, effective October 9, 2010                    format specified by the Authority. The Authority shall include
                          (Supp. 10-3).                                      with the project priority list application form the criteria under
     ARTICLE 3. DRINKING WATER REVOLVING FUND                                each ranking category in R18-15-304(A) by which the project
                                                                             will be evaluated and the relative importance of each of the
R18-15-301. Drinking Water Revolving Fund Financial Assis-                   criterion.
tance Eligibility Criteria                                              C.   In preparing the Drinking Water Revolving Fund Project Pri-
To be eligible to receive financial assistance from the Drinking             ority List, the Authority shall consider all project priority list
Water Revolving Fund, the applicant shall demonstrate that the               applications submitted under subsection (B), all projects
applicant is a drinking water facility as defined by A.R.S. § 49-            requested by regulatory authorities, and all plans prepared
1201 requesting financial assistance for a purpose as defined in             under the Safe Drinking Water Act, 42 U.S.C. 300f to 300j-26.
A.R.S. § 49-1243(A); the proposed project is to plan, design, con-           The Authority shall evaluate the merits of each project with
struct, acquire, or improve a drinking water facility or refinance an        respect to water quality issues and determine the priority value
eligible drinking water facility; and the proposed project appears on        of each project according to R18-15-304. At a minimum, the
the Drinking Water Revolving Fund Project Priority List developed            Drinking Water Revolving Fund Project Priority List shall
under R18-15-303.                                                            identify:
                        Historical Note                                      1. The applicant;
      Adopted effective September 18, 1997 (Supp. 97-3).                     2. Project title;
     Amended by final rulemaking at 7 A.A.R. 5956, effective                 3. Type of project;
     December 4, 2001 (Supp. 01-4). Amended by final rule-                   4. Population of service area;
      making at 16 A.A.R. 1709, effective October 9, 2010                    5. The amount requested for financial assistance;
                          (Supp. 10-3).                                      6. The subsidy rate index according to R18-15-304(C);
R18-15-302. Drinking Water Revolving Fund Intended Use                       7. Whether the project is within the fundable range accord-
Plan                                                                               ing to R18-15-305; and
A. The Authority annually shall develop and publish a Drinking               8. The rank of each project by the priority value, determined
     Water Revolving Fund Intended Use Plan that identifies the                    according to R18-15-304.
     intended uses of funds available in the Drinking Water             D.   After adoption of the annual Intended Use Plan and project
     Revolving Fund Program. The Intended Use Plan shall include             priority list according to R18-15-302, the Board may allow:
     the project priority list according to R18-15-303. If an                1. Updates and corrections to the adopted Drinking Water
     Intended Use Plan is to be submitted as one of the documents                  Revolving Fund Project Priority List, if the updates and
     required to obtain a federal capitalization grant under the Safe              corrections are adopted by the Board after an opportunity
     Drinking Water Act, 42 U.S.C. 300f to 300j-26, the Intended                   for public comment at a public meeting; or
     Use Plan shall include any additional information required by           2. Additions to the Drinking Water Revolving Fund Project
     federal law.                                                                  Priority List, if the additions are adopted by the Board
B. The Authority shall provide for a public review and written                     after an opportunity for public comment at a public meet-
     comment period of the draft Drinking Water Revolving Fund                     ing.
     Intended Use Plan for a minimum of 14 calendar days. The           E.   After an opportunity for public comment at a public meeting,
     Authority shall summarize all written comments submitted                the Board may remove a project from the Drinking Water
     and prepare responses for Board review. After review of the             Revolving Fund Project Priority List under one or more of the
     summary, the Board shall make any appropriate changes to the            following circumstances:
     Plan and then adopt the Drinking Water Revolving Fund                   1. The recipient has received all financial assistance identi-
     Intended Use Plan at a public meeting.                                        fied in the executed financial assistance agreement with
                          Historical Note                                          the Authority;
       Adopted effective September 18, 1997 (Supp. 97-3).                    2. The project was financed with long-term indebtedness
     Amended by final rulemaking at 7 A.A.R. 5956, effective                       from another source;
      December 4, 2001 (Supp. 01-4). Section repealed; new                   3. The project is no longer an eligible project;
     R18-15-302 renumbered from R18-15-303 and amended                       4. The applicant requests removal;
     by final rulemaking at 16 A.A.R. 1709, effective October                5. The applicant is no longer an eligible applicant; or
                       9, 2010 (Supp. 10-3).                                 6. The applicant did not update, modify, correct or resubmit
                                                                                   a project that remained on the project priority list for
R18-15-303. Drinking Water Revolving Fund Project Priority                         more than 365 days.
List
A. The Authority annually shall prepare a Drinking Water                                        Historical Note
     Revolving Fund Project Priority List as part of the Intended              Adopted effective September 18, 1997 (Supp. 97-3).
     Use Plan described in R18-15-302. The Board may waive the               Amended by final rulemaking at 7 A.A.R. 5956, effective
     requirement to develop an annual Drinking Water Revolving                 December 4, 2001 (Supp. 01-4). Former R18-15-303
     Fund Project Priority List if funds are not adequate to assist           renumbered to R18-15-302; new Section made by final
     any projects or if the Board determines that no financial assis-        rulemaking at 16 A.A.R. 1709, effective October 9, 2010
     tance will be offered for the annual funding cycle.                                          (Supp. 10-3).


September 30, 2010                                                 Page 11                                                         Supp. 10-3
Title 18, Ch. 15                                         Arizona Administrative Code
                                               Water Infrastructure Finance Authority of Arizona

R18-15-304. Drinking Water Revolving Fund Project Priority                     4.   Evidence that the applicant has initiated the bid or solici-
List Ranking                                                                        tation process.
A. The Authority shall rank each project listed on the Drinking
     Water Revolving Fund Project Priority List based on the prior-                                 Historical Note
     ity value of each project. The Authority shall consider the fol-            Adopted effective September 18, 1997 (Supp. 97-3).
     lowing categories to determine the priority value of each                   Amended effective June 4, 1998 (Supp. 98-2). Former
     project:                                                                   Section R18-15-305 repealed; new Section R18-15-305
     1. The Authority shall evaluate the current conditions of the             renumbered from R18-15-306 and amended by final rule-
          system through the system’s rank on the Department’s                   making at 7 A.A.R. 5956, effective December 4, 2001
          master priority list.                                                (Supp. 01-4). Amended by final rulemaking at 16 A.A.R.
     2. The Authority shall evaluate the degree to which the                         1709, effective October 9, 2010 (Supp. 10-3).
          project will result in improvement to the water system.         R18-15-306. Drinking Water Revolving Fund Application for
     3. The Authority shall evaluate the degree to which the              Financial Assistance
          project addresses water or energy efficiency or environ-        A. The Authority shall accept an application for financial assis-
          mentally innovative approaches.                                     tance from an eligible applicant for a project that appears on
     4. The Authority shall evaluate the degree to which the                  the Drinking Water Revolving Fund Project Priority List and is
          project promotes any of the following:                              determined to be within the fundable range. At the Authority’s
          a. Consolidation of facilities, operations, and owner-              discretion, the Authority may accept an application for finan-
               ship;                                                          cial assistance prior to the project appearing on a Board-
          b. Extending service to existing areas currently served             adopted Drinking Water Revolving Fund Project Priority List.
               by another facility; or
                                                                          B. The Authority shall not forward an application to the Board for
          c. A regional approach to operations, management, or                consideration until all the following conditions are met:
               new facilities.
                                                                              1. The project is on the Drinking Water Revolving Fund
     5. The Authority shall determine whether the project
                                                                                   Project Priority List;
          received assistance from the Authority in a previous
          funding cycle.                                                      2. The applicant has provided supporting documentation
     6. The Authority shall evaluate the applicant’s local fiscal                  according to R18-15-305(B);
          capacity.                                                           3. The applicant has demonstrated legal capability, financial
B. If two or more projects have the same rank according to sub-                    capability, technical capability and managerial capability
     section (A), the Authority shall give priority to the project with            as described in R18-15-104; and
     the highest current condition value under subsection (A)(1). If          4. The applicant has obtained or is in the process of obtain-
     projects remain tied, priority will be given to the project with              ing all permits and approvals required by federal, state,
     the highest water system improvement value under subsection                   and local authorities.
     (A)(2). If projects remain tied, this process shall continue         C. The application criteria required under subsections (A) and (B)
     through the categories under subsections (A)(3) through (6),             shall not apply to financial assistance requests for short-term
     sequentially. If projects continue to have the same priority             emergency loans under A.R.S. § 49-1269.
     value, the Board shall determine the priority of the tied
     projects.                                                                                    Historical Note
C. The Authority shall determine the subsidy rate index for each                Adopted effective September 18, 1997 (Supp. 97-3).
     project on the Drinking Water Revolving Fund Project Priority             Amended effective June 4, 1998 (Supp. 98-2). Former
     List based on the applicant’s local fiscal capacity value and the          Section R18-15-306 renumbered to R18-15-305; new
     overall priority value of the project. The Authority shall incor-           Section R18-15-306 made by final rulemaking at 7
     porate the subsidy rate index in the financial assistance agree-          A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).
     ment.                                                                     Amended by final rulemaking at 16 A.A.R. 1709, effec-
                                                                                         tive October 9, 2010 (Supp. 10-3).
                          Historical Note
        Adopted effective September 18, 1997 (Supp. 97-3).                R18-15-307. Drinking Water Revolving Fund Application
      Amended effective June 4, 1998 (Supp. 98-2). Amended                Review for Financial Assistance
     by final rulemaking at 7 A.A.R. 5956, effective December             A. The Authority shall evaluate and summarize each application
     4, 2001 (Supp. 01-4). Amended by final rulemaking at 16                  received and develop an analysis that provides recommenda-
       A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).                   tions to the Board. At a minimum, the analysis shall include:
R18-15-305.      Drinking Water Revolving Fund Fundable                       1. The scope, size, and budget of the proposed project,
Range for Financial Assistance                                                     including as much cost detail as possible;
A. Prior to adoption by the Board of the Drinking Water Revolv-               2. A summary of the applicant’s legal capability, including
    ing Fund Project Priority List, the Authority shall determine                  authorization to enter into long-term indebtedness and to
    which projects are within the fundable range.                                  pledge the specified dedicated revenue source for repay-
B. In determining the fundable range the Authority shall evaluate                  ment;
    each project for evidence that the project is ready to proceed.           3. A summary of the applicant’s technical capability, includ-
    The Authority shall consider the following indicators when                     ing its ability to construct, operate, and maintain the pro-
    evaluating whether the project is within the fundable range:                   posed project;
    1. Evidence of debt authorization according to R18-15-                    4. A summary of the applicant’s managerial capability,
         104(B);                                                                   including the experience of elected officials and manage-
    2. Evidence that the applicant has obtained applicable local,                  ment team in managing similar organizations and similar
         state, or federal project permits, as applicable;                         projects;
    3. Evidence of approval by the appropriate authority of                   5. A summary of the applicant’s financial capability, includ-
         project plans and specifications; and                                     ing:


Supp. 10-3                                                           Page 12                                               September 30, 2010
                                                         Arizona Administrative Code                                         Title 18, Ch. 15
                                               Water Infrastructure Finance Authority of Arizona

          a.     The amount of money collected through the dedi-                 making at 16 A.A.R. 1709, effective October 9, 2010
                 cated revenue source for repayment for each of the                                (Supp. 10-3).
                 previous three fiscal years,
                                                                                ARTICLE 4. WATER SUPPLY DEVELOPMENT
           b. An estimate of the amount of money that will be col-
                                                                                           REVOLVING FUND
                 lected through the dedicated revenue source for
                 repayment for the current fiscal year, and               R18-15-401. Water Supply Development Revolving Fund
           c. A projection of the amount of money that will be            Financial Assistance Eligibility Criteria
                 collected through the dedicated revenue source for       To be eligible to receive financial assistance from the Water Supply
                 repayment for each of the next five fiscal years;        Development Revolving Fund, the applicant shall demonstrate the
     6. The applicant’s history of compliance with, as applicable,        applicant is a water provider as defined by A.R.S. § 49-1201(14)
           the Safe Drinking Water Act, 42 U.S.C. 300f to 300j-26,        requesting financial assistance for a purpose as defined in A.R.S. §
           related Arizona statutes, and related rules, regulations and   49-1273(A); the water provider meets the requirements of A.R.S. §
           policies; and                                                  49-1273(C); and the proposed project appears on the Water Supply
     7. A summary of any previous assistance provided by the              Development Revolving Fund Project Priority List developed under
           Authority to the applicant.                                    R18-15-403.
B.   The Board shall make a determination regarding the appli-                                   Historical Note
     cant’s request for financial assistance at a public meeting. The           Adopted effective September 18, 1997 (Supp. 97-3).
     Board shall base this determination on the information pro-               Amended by final rulemaking at 16 A.A.R. 1709, effec-
     vided in the application, the analysis prepared by the Author-                     tive October 9, 2010 (Supp. 10-3).
     ity, and any other information provided at the public meeting.
     The Authority shall inform the applicant of the Board’s deter-       R18-15-402. Water Supply Development Revolving Fund
     mination, which may include recommended modifications to             Intended Use Plan
     any of the following:                                                A. The Authority annually shall develop and publish a Water
     1. The proposed project,                                                  Supply Development Revolving Fund Intended Use Plan that
     2. The applicant’s legal structure and organization,                      identifies the intended uses of funds available in the Water
     3. The dedicated revenue source for repayment, or                         Supply Development Revolving Fund Program. The Intended
     4. The structure of the financial assistance request.                     Use Plan shall include the project priority list according to
C.   If the Board determines at any time during a funding cycle that           R18-15-403 and specify whether funds are available to subsi-
     funds are limited or are not available to provide financial assis-        dize the projects. The Authority is not required to prepare a
     tance, the Authority shall notify applicants on the current               Water Supply Development Revolving Fund Intended Use
     Drinking Water Revolving Fund Project Priority List that the              Plan if funds are not adequate to assist any projects or if the
     Authority is no longer accepting applications. The Board shall            Committee determines that no financial assistance will be
     determine the amount of funding available, if any, to provide             offered for the annual funding cycle.
     financial assistance for the applications already accepted by        B. The Authority shall provide for a public review and written
     the Authority. The Board shall consider each application in the           comment period of the draft Water Supply Development
     order the project appears within the fundable range on the cur-           Revolving Fund Intended Use Plan for a minimum of 14 cal-
     rent Drinking Water Revolving Fund Project Priority List. The             endar days. The Authority shall summarize all written com-
     Board shall make a determination as described in subsection               ments submitted and prepare responses for Committee review.
     (B) on each application until the available funds are commit-             After review of the summary, the Committee shall make any
     ted.                                                                      appropriate changes to the Plan and then adopt the Water Sup-
D.   Upon Board approval of the applicant’s request for financial              ply Development Revolving Fund Intended Use Plan at a pub-
     assistance, the Authority shall prepare a financial assistance            lic meeting.
     agreement for execution by the applicant and the Authority.                                   Historical Note
                         Historical Note                                       Adopted effective September 18, 1997 (Supp. 97-3). Sec-
       Adopted effective September 18, 1997 (Supp. 97-3).                       tion repealed; new Section made by final rulemaking at
      Amended effective June 4, 1998 (Supp. 98-2). Section                     16 A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).
       repealed; new Section made by final rulemaking at 7                R18-15-403. Water Supply Development Revolving Fund
      A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).               Project Priority List
      Amended by final rulemaking at 16 A.A.R. 1709, effec-               A. The Authority annually shall prepare a Water Supply Develop-
                tive October 9, 2010 (Supp. 10-3).                            ment Revolving Fund Project Priority List as part of the
R18-15-308. Drinking Water Revolving Fund Requirements                        Intended Use Plan described in R18-15-402. The Authority is
A. The duly authorized agent, principal or officer of the applicant           not required to prepare a Water Supply Development Revolv-
    shall certify the applicant has not violated any federal, state, or       ing Fund Project Priority List if funds are not adequate to
    local law pertaining to fraud, bribery, graft, kickbacks, collu-          assist any projects or if the Committee determines that no
    sion, conflict of interest, or other unlawful or corrupt practices        financial assistance will be offered for the annual funding
    relating to or in connection with facilities planning, design, or         cycle.
    construction work on a project.                                       B. An applicant pursuing financial assistance from the Authority
B. All projects shall comply with the provisions of the Civil                 for a water supply development project shall request to have
    Rights Act of 1964, P.L. 88-352, 42 U.S.C. 2000d et seq., and             the project included on the Water Supply Development
    all other applicable federal laws.                                        Revolving Fund Project Priority List. The applicant may
                                                                              request that multiple projects be placed on the Water Supply
                        Historical Note                                       Development Revolving Fund Project Priority List. An appli-
      Adopted effective September 18, 1997 (Supp. 97-3).                      cant shall make a request for placement of a project on the
     Amended by final rulemaking at 7 A.A.R. 5956, effective                  Water Supply Development Revolving Fund Project Priority
     December 4, 2001 (Supp. 01-4). Amended by final rule-                    List on or before a date specified by the Authority and in an


September 30, 2010                                                   Page 13                                                      Supp. 10-3
Title 18, Ch. 15                                        Arizona Administrative Code
                                              Water Infrastructure Finance Authority of Arizona

     application format specified by the Authority. The Authority             1.    The Authority shall evaluate the existing, near-term, and
     shall include with the project priority list application form the              long-term water demands of the water provider as com-
     criteria under each ranking category in R18-15-404(A) by                       pared to the existing water supplies of the water provider.
     which the project will be evaluated and the relative importance          2. The Authority shall evaluate the existing and planned
     of each of the criterion.                                                      conservation and water management programs of the
C.   In preparing the Water Supply Development Revolving Fund                       water provider.
     Project Priority List, the Authority shall consider all project          3. The Authority shall evaluate the current conditions of the
     priority list applications submitted under subsection (B). The                 water provider’s facilities and the water provider’s water
     Authority shall evaluate the merits of each project with respect               supply needs, and evaluate how effectively the project
     to water supply development issues and determine the priority                  will benefit the infrastructure or water supply needs.
     value of each project according to R18-15-404. At a minimum,             4. The Authority shall evaluate the sustainability of the
     the Water Supply Development Revolving Fund Project Prior-                     water supply to be developed through the project.
     ity List shall identify:                                                 5. The Authority shall evaluate the applicant’s local fiscal
     1. The applicant;                                                              capacity.
     2. Project title;                                                   B.   If two or more projects have the same rank according to sub-
     3. Type of project;                                                      section (A), the Authority shall give priority to the project with
     4. Population of water provider’s service area;                          the highest water demand value under subsection (A)(1). If
     5. The amount requested for financial assistance;                        projects remain tied, priority will be given to the project with
     6. The subsidy rate index according to R18-15-404(C);                    the highest conservation and water management value under
     7. Whether the project is within the fundable range accord-              subsection (A)(2). If projects remain tied, this process shall
           ing to R18-15-405; and                                             continue through the categories under subsections (A)(3)
                                                                              through (5), sequentially. If projects continue to have the same
     8. The rank of each project by the priority value, determined
                                                                              priority value, the Committee shall determine the priority of
           according to R18-15-404.
                                                                              the tied projects.
D.   After adoption of the annual Intended Use Plan and Water
                                                                         C.   If monies are available to provide a subsidy to the project, the
     Supply Development Revolving Fund Project Priority List
                                                                              Authority shall determine the subsidy rate index for each
     according to R18-15-402, the Committee may allow:
                                                                              project on the Water Supply Development Revolving Fund
     1. Updates and corrections to the adopted Water Supply                   Project Priority List based on the applicant’s local fiscal capac-
           Development Revolving Fund Project Priority List, if the           ity value and the overall priority value of the project. The
           updates and corrections are adopted by the Committee               Authority shall incorporate the subsidy rate index in the finan-
           after an opportunity for public comment at a public meet-          cial assistance agreement.
           ing; or
     2. Additions to the Water Supply Development Revolving                                         Historical Note
           Fund Project Priority List, if the additions are adopted by             New Section made by final rulemaking at 16 A.A.R.
           the Committee after an opportunity for public comment at                  1709, effective October 9, 2010 (Supp. 10-3).
           a public meeting.                                             R18-15-405. Water Supply Development Revolving Fund
E.   After an opportunity for public comment at a public meeting,        Fundable Range for Financial Assistance
     the Committee may remove a project from the Water Supply            A. Prior to adoption by the Committee of the Water Supply
     Development Revolving Fund Project Priority List under one              Development Revolving Fund Project Priority List, the
     or more of the following circumstances:                                 Authority shall determine which projects are within the fund-
     1. The recipient has received all financial assistance identi-          able range.
           fied in the executed financial assistance agreement with      B. In determining the fundable range the Authority shall evaluate
           the Authority;                                                    each project for evidence that the project is ready to proceed.
     2. The project was financed with long-term indebtedness                 The Authority shall consider any of the following indicators
           from another source;                                              when evaluating whether the project is within the fundable
     3. The project is no longer an eligible project;                        range:
     4. The applicant requests removal;                                      1. Evidence of debt authorization according to R18-15-
     5. The applicant is no longer an eligible applicant; or                      104(B);
     6. The applicant did not update, modify, correct or resubmit            2. Evidence that the applicant has obtained applicable local,
           a project that remained on the project priority list for               state, or federal project permits, as applicable;
           more than 365 days.                                               3. Evidence of approval by the appropriate authority of
                                                                                  project plans and specifications; and
                          Historical Note
                                                                             4. Evidence that the applicant has initiated the bid or solici-
       Adopted effective September 18, 1997 (Supp. 97-3).
                                                                                  tation process.
      Amended effective June 4, 1998 (Supp. 98-2). Section
     repealed by final rulemaking at 7 A.A.R. 5956, effective                                       Historical Note
      December 4, 2001 (Supp. 01-4). New Section made by                           New Section made by final rulemaking at 16 A.A.R.
     final rulemaking at 16 A.A.R. 1709, effective October 9,                        1709, effective October 9, 2010 (Supp. 10-3).
                        2010 (Supp. 10-3).
                                                                         R18-15-406. Water Supply Development Revolving Fund
R18-15-404. Water Supply Development Revolving Fund                      Application for Financial Assistance
Project Priority List Ranking                                            A. The Authority shall accept an application for financial assis-
A. The Authority shall rank each project listed on the Water Sup-            tance from an eligible applicant for a project that appears on
    ply Development Revolving Fund Project Priority List based               the Water Supply Development Revolving Fund Project Prior-
    on the priority value of each project. The Authority shall con-          ity List and is determined to be within the fundable range. At
    sider the following categories to determine the priority value           the Authority’s discretion, the Authority may accept an appli-
    of each project.                                                         cation for financial assistance prior to the project appearing on


Supp. 10-3                                                          Page 14                                               September 30, 2010
                                                       Arizona Administrative Code                                           Title 18, Ch. 15
                                             Water Infrastructure Finance Authority of Arizona

     a Committee-adopted Water Supply Development Fund                       2. The applicant’s legal structure and organization,
     Project Priority List.                                                  3. The dedicated revenue source for repayment, or
B.   The Authority shall not forward an application for financial            4. The structure of the financial assistance request.
     assistance to the Committee for consideration until all the fol-   C.   If the Committee determines at any time during a funding
     lowing conditions are met:                                              cycle that funds are limited or are not available to provide
     1. The water supply development project has been priori-                financial assistance, the Authority shall notify applicants on
          tized;                                                             the current Water Supply Development Revolving Fund
     2. The applicant has provided supporting documentation                  Project Priority List that the Authority is no longer accepting
          according to R18-15-405(B);                                        applications. The Committee shall determine the amount of
     3. The applicant has demonstrated legal capability, financial           funding available, if any, to provide financial assistance for the
          capability, technical capability, and managerial capability        applications by the Authority. The Committee shall consider
          under R18-15-104;                                                  each application in the order the project appears within the
     4. The applicant has obtained or is in the process of obtain-           fundable range on the current Water Supply Development
          ing all permits and approvals required by federal, state,          Revolving Fund Project Priority List. The Committee shall
          and local authorities; and                                         make a determination as described in subsection (B) on each
     5. The applicant has demonstrated the ability to meet any               application until the available funds are committed.
          applicable environmental requirements imposed by fed-         D.   Upon Committee approval of the applicant’s request for finan-
          eral, state, or local agencies.                                    cial assistance, the Authority shall prepare a financial assis-
                                                                             tance agreement for execution by the applicant and the
                        Historical Note                                      Authority.
       New Section made by final rulemaking at 16 A.A.R.
         1709, effective October 9, 2010 (Supp. 10-3).                                          Historical Note
                                                                               New Section made by final rulemaking at 16 A.A.R.
R18-15-407. Water Supply Development Revolving Fund                              1709, effective October 9, 2010 (Supp. 10-3).
Application Review for Financial Assistance
A. The Authority shall evaluate and summarize each application          R18-15-408. Water Supply Development Revolving Fund
    for financial assistance received and develop an analysis that      Requirements
    provides recommendations to the Committee. The analysis             The duly authorized agent, principal or officer of the applicant shall
    shall at a minimum include:                                         certify the applicant has not violated any federal, state, or local law
    1. The scope, size, and budget of the proposed project,             pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of
          including as much cost detail as possible;                    interest, or other unlawful or corrupt practices relating to or in con-
    2. A summary of the applicant’s legal capability including          nection with facilities planning, design, or construction work on a
          authorization to enter into long-term indebtedness and to     project.
          pledge the specified dedicated revenue source for repay-                              Historical Note
          ment;                                                                New Section made by final rulemaking at 16 A.A.R.
    3. A summary of the applicant’s technical capability, includ-                1709, effective October 9, 2010 (Supp. 10-3).
          ing its ability to construct, operate and maintain the pro-
          posed project;                                                           ARTICLE 5. TECHNICAL ASSISTANCE
    4. A summary of the applicant’s managerial capability,              R18-15-501. Technical Assistance
          including the experience of elected officials and manage-     The Authority may provide Clean Water technical assistance,
          ment team in managing similar organizations and similar       Drinking Water technical assistance, and Water Supply Develop-
          projects;                                                     ment technical assistance if funding is approved in the Technical
    5. A summary of the applicant’s financial capability, includ-       Assistance Intended Use Plan according to R18-15-502. The
          ing:                                                          Authority shall provide technical assistance in compliance with
          a. The amount of money collected through the dedi-            A.R.S. § 49-1203(B)(16) and (17).
               cated revenue source for repayment for each of the
               previous three fiscal years,                                                       Historical Note
          b. An estimate of the amount of money that will be col-              New Section adopted by final rulemaking at 6 A.A.R.
               lected through the dedicated revenue source for               2116, effective May 16, 2000 (Supp. 00-2). Amended by
               repayment for the current fiscal year, and                    final rulemaking at 7 A.A.R. 5956, effective December 4,
          c. A projection of the amount of money that will be                  2001 (Supp. 01-4). Former R18-15-501 renumbered to
               collected through the dedicated revenue source for            R18-15-502; new Section made by final rulemaking at 16
               repayment for each of the next five fiscal years;                A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).
    6. A summary of any previous assistance provided by the             R18-15-502. Technical Assistance Intended Use Plan
          Authority to the applicant; and                               A. The Authority annually shall develop and publish one or more
    7. A summary of the applicant’s ability to meet any applica-            Technical Assistance Intended Use Plans that identify intended
          ble permitting and environmental requirements imposed             uses of funds available for Clean Water technical assistance
          by federal, state, or local agencies.                             and Drinking Water technical assistance. The Authority shall
B. The Committee shall make a determination regarding the                   develop a Water Supply Development Technical Assistance
    applicant’s request for financial assistance at a public meeting.       Intended Use Plan if funds are available or if the Committee
    The Committee shall base this determination on the informa-             determines that Water Supply Development technical assis-
    tion provided in the application, the analysis prepared by the          tance will be offered. The Intended Use Plan shall identify
    Authority, and any other information provided at the public             whether funds are available and the amount of funds available
    meeting. The Authority shall inform the applicant of the Com-           for planning and design assistance grants, staff assistance, and
    mittee’s determination, which may include recommended                   professional assistance for Clean Water, Drinking Water, and
    modifications to any of the following:                                  Water Supply Development. The Authority may develop Tech-
    1. The proposed project,                                                nical Assistance Intended Use Plans separately for Clean


September 30, 2010                                                 Page 15                                                         Supp. 10-3
Title 18, Ch. 15                                         Arizona Administrative Code
                                               Water Infrastructure Finance Authority of Arizona

     Water, Drinking Water, and Water Supply Development or as             D. The Authority shall solicit, evaluate, and award planning and
     parts of the Intended Use Plans required under R18-15-202,               design assistance grants in accordance with A.R.S. § 41-2702.
     R18-15-302, and R18-15-402. If the Technical Assistance               E. The Authority shall evaluate the grant applications received to
     Intended Use Plan is to be submitted as a document required to           determine which projects are eligible under the Clean Water
     obtain a federal capitalization grant, the Technical Assistance          Act, 33 U.S.C. 1381 to 1387. Eligible grant applications shall
     Intended Use Plan shall include any additional information               specify a demonstrated need of the grant applicant for assis-
     required by federal law. The Authority is not required to pre-           tance in securing financial assistance for development and
     pare a Water Supply Development Technical Assistance                     implementation of a wastewater capital improvement project.
     Intended Use Plan if funds are not adequate to assist any             F. The Authority shall determine planning and design assistance
     projects or if the Committee determines that no Water Supply             grant awards based on the amount of funding available. If
     Development technical assistance will be offered for the                 funding is limited, all eligible projects may not be funded. The
     annual funding cycle.                                                    Authority shall provide the planning and design assistance
B.   The Authority shall provide for a public review and written              grant award recommendations to the Board for review and
     comment period of any draft Technical Assistance Intended                approval at a public meeting. The Board may adopt, modify, or
     Use Plan for a minimum of 14 calendar days. The Authority                reject the Authority’s recommendations in whole or in part.
     shall summarize all written comments received and prepare             G. Within 30 days after the adoption of the planning and design
     responses. The Authority shall provide a summary of the writ-            assistance grant awards at a public meeting, the Authority
     ten comments and the Authority’s responses regarding the                 shall notify all grant applicants whether or not they received an
     Clean Water and Drinking Water Technical Assistance                      award.
     Intended Use Plans to the Board and provide a summary of the          H. An unsuccessful grant applicant may submit an appeal in writ-
     written comments and the Authority’s responses regarding any             ing in accordance with A.R.S. § 41-2704.
     Water Supply Development Technical Assistance Intended                I. The Authority and the grant applicant shall enter into a plan-
     Use Plan to the Committee. After review of the comments and              ning and design assistance grant agreement that shall include
     the Authority’s responses to comments received during the                at a minimum:
     public review and written comment period, the Board or the               1. A scope of work,
     Committee, as applicable, shall adopt the applicable Technical           2. The amount of the grant awarded,
     Assistance Intended Use Plan or Plans at a public meeting with           3. The amount of the local match required,
     any changes made in response to public comments or com-                  4. A final project budget and timeline, and
     ments by members of the Board or Committee.                              5. Reporting requirements.
                                                                           J. Project costs incurred prior to execution of a planning and
                          Historical Note                                     design assistance grant agreement shall not be eligible for
       New Section adopted by final rulemaking at 6 A.A.R.                    grant funding.
     2116, effective May 16, 2000 (Supp. 00-2). Amended by                 K. The Authority shall release grant proceeds subject to a dis-
     final rulemaking at 7 A.A.R. 5956, effective December 4,                 bursement request if the request is consistent with the planning
       2001 (Supp. 01-4). Section repealed; new R18-15-502                    and design assistance grant agreement and the disbursement
     renumbered from R18-15-501 and amended by final rule-                    schedule.
        making at 16 A.A.R. 1709, effective October 9, 2010                   1. The grant recipient shall request each disbursement on
                            (Supp. 10-3).                                          the forms provided by the Authority. Each disbursement
                                                                                   request shall include a certification and signature docu-
R18-15-503. Clean Water Planning and Design Assistance
                                                                                   ment, a cost-incurred report, and a DBE report. The
Grants
                                                                                   Authority shall not process a disbursement until the appli-
A. Planning and design assistance grants to a specific wastewater                  cant provides a completed disbursement form.
    treatment facility shall assist that system to achieve or enhance         2. The grant recipient shall include copies of invoices, can-
    its legal, financial, technical, or managerial capability to facili-           celed checks, or other documents that show proof of eli-
    tate the design, construction, acquisition, improvement, or                    gible costs incurred with each disbursement request.
    consolidation of the wastewater treatment facility. The Board
    shall approve funds available for planning and design assis-                                     Historical Note
    tance grants in the annual Clean Water Technical Assistance                    New Section adopted by final rulemaking at 6 A.A.R.
    Intended Use Plan. The Board may determine that no assis-                   2116, effective May 16, 2000 (Supp. 00-2). Amended by
    tance will be offered for the annual funding cycle.                         final rulemaking at 7 A.A.R. 5956, effective December 4,
B. To be eligible to receive a planning and design assistance grant               2001 (Supp. 01-4). Amended by final rulemaking at 16
    under the Clean Water Technical Assistance Program, the                        A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).
    grant applicant shall demonstrate the applicant is a govern-           R18-15-504. Drinking Water Planning and Design Assistance
    mental unit that owns a wastewater treatment facility, or a non-       Grants
    governmental unit requesting technical assistance specifically         A. Planning and design assistance grants to a specific drinking
    for the purpose of forming a political subdivision. An eligible            water facility, excluding a nonprofit noncommunity water sys-
    grant applicant shall apply for a planning and design assistance           tem, shall assist that facility to achieve or enhance its legal,
    grant on or before a date specified by the Authority and on a              financial, technical, or managerial capability to facilitate the
    grant application form specified by the Authority.                         design, construction, acquisition, improvement, or consolida-
C. A grant applicant shall commit to a matching contribution                   tion of a community water system. The Board shall approve
    toward the total project cost as specified in the Request for              funds available for planning and design assistance grants in the
    Grant Applications. The matching contribution may include                  annual Drinking Water Technical Assistance Intended Use
    cash contributions or in-kind contributions. The Board may                 Plan. The Board may determine that no assistance will be
    waive or modify the grant applicant’s match requirement                    offered for the annual funding cycle.
    according to criteria established in the Request for Grant             B. To be eligible to receive a planning and design assistance grant
    Applications.                                                              under the Drinking Water Technical Assistance Program, the


Supp. 10-3                                                            Page 16                                             September 30, 2010
                                                       Arizona Administrative Code                                          Title 18, Ch. 15
                                             Water Infrastructure Finance Authority of Arizona

   grant applicant shall demonstrate the applicant owns a drink-            (Supp. 01-4). Amended by final rulemaking at 16 A.A.R.
   ing water facility, excluding a nonprofit noncommunity water                  1709, effective October 9, 2010 (Supp. 10-3).
   system. An eligible grant applicant shall apply for a planning
                                                                       R18-15-505. Water Supply Development Planning and Design
   and design assistance grant on or before a date specified by the
                                                                       Assistance Grants
   Authority and on a grant application form specified by the
                                                                       A. Planning and design assistance grant funding to a water pro-
   Authority.
                                                                            vider shall assist the water provider in the planning or design
C. A grant applicant shall commit to a matching contribution
                                                                            of a water supply development project. A single planning and
   toward the total project cost as specified in the Request for
                                                                            design assistance grant award shall not exceed $100,000. The
   Grant Applications. The matching contribution may include
                                                                            Committee shall approve funds available for planning and
   cash contributions or in-kind contributions. The Board may
                                                                            design assistance grants in the annual Water Supply Develop-
   waive or modify the grant applicant’s match requirement
                                                                            ment Technical Assistance Intended Use Plan. The Committee
   according to criteria established in the Request for Grant
                                                                            may determine that no assistance will be offered for the annual
   Applications.
                                                                            funding cycle.
D. The Authority shall solicit, evaluate, and award planning and       B. To be eligible to receive a planning and design assistance grant
   design assistance grants in accordance with A.R.S. § 41-2702.            under the Water Supply Development Technical Assistance
E. The Authority shall evaluate the grant applications received to          Program, the grant applicant shall demonstrate the applicant is
   determine which projects are eligible under the Safe Drinking            a water provider as defined in A.R.S. § 49-1201 and meet the
   Water Act, 42 U.S.C. 300f to 300j-26. Eligible grant applica-            requirements of A.R.S. § 49-1273(C). An eligible grant appli-
   tions shall specify a demonstrated need of the grant applicant           cant shall apply for a planning and design assistance grant on
   for assistance in securing financial assistance for development          or before a date specified by the Authority and on a grant
   and implementation of a drinking water capital improvement               application form specified by the Authority.
   project.                                                            C. A grant applicant shall commit to a matching contribution
F. The Authority shall determine planning and design assistance             toward the total project cost as specified in the Request for
   grant awards based on the amount of funding available. If                Grant Applications. The matching contribution may include
   funding is limited, all eligible projects may not be funded. The         cash contributions or in-kind contributions. The Board may
   Authority shall provide the planning and design assistance               waive or modify the grant applicant’s match requirement
   grant award recommendations to the Board for review and                  according to criteria established in the Request for Grant
   approval at a public meeting. The Board may adopt, modify, or            Applications.
   reject the Authority’s recommendations in whole or in part.         D. The Authority shall solicit, evaluate, and award planning and
G. Within 30 days after the adoption of the planning and design             design assistance grants in accordance with A.R.S. § 41-2702.
   assistance grant awards at a public meeting, the Authority          E. The Authority shall evaluate the grant applications received to
   shall notify all grant applicants whether or not they received an        determine which projects are eligible. Eligible grant applica-
   award.                                                                   tions shall specify a demonstrated need of the grant applicant
H. An unsuccessful grant applicant may submit an appeal in writ-            for assistance in securing financial assistance for planning and
   ing according to A.R.S. § 41-2704.                                       design of a water supply capital improvement project.
I. The Authority and the grant applicant shall enter into a plan-      F. The Authority shall determine planning and design assistance
   ning and design assistance grant agreement that shall include            grant awards based on the amount of funding available. If
   at a minimum:                                                            funding is limited, all eligible projects may not be funded. The
   1. A scope of work,                                                      Authority shall provide the planning and design assistance
   2. The amount of the grant awarded,                                      grant award recommendations to the Committee for review
   3. The amount of the local match required,                               and approval at a public meeting. The Committee may adopt,
   4. A final project budget and timeline, and                              modify, or reject the Authority’s recommendations in whole or
   5. Reporting requirements.                                               in part.
J. Project costs incurred prior to execution of a planning and         G. Within 30 days after the adoption of the planning and design
   design assistance grant agreement shall not be eligible for              assistance grant awards at a public meeting, the Authority
   grant funding.                                                           shall notify all grant applicants whether or not they received an
K. The Authority shall release grant proceeds subject to a dis-             award.
   bursement request if the request is consistent with the planning    H. An unsuccessful grant applicant may submit an appeal in writ-
   and design assistance grant agreement and the disbursement               ing according to A.R.S. § 41-2704.
   schedule.                                                           I. The Authority and the grant applicant shall enter into a plan-
   1. The grant recipient shall request each disbursement on                ning and design assistance grant agreement that shall include
        the forms provided by the Authority. Each disbursement              at a minimum:
        request shall include a certification and signature docu-           1. A scope of work,
        ment, a cost-incurred report, and a DBE report. The                 2. The amount of the grant awarded,
        Authority shall not process a disbursement until the appli-         3. The amount of the local match required,
        cant provides a completed disbursement form.                        4. A final project budget and timeline, and
   2. The grant recipient shall include copies of invoices, can-            5. Reporting requirements.
        celed checks, or other documents that show proof of eli-       J. Project costs incurred prior to execution of a planning and
        gible costs incurred with each disbursement request.                design assistance grant agreement shall not be eligible for
                                                                            grant funding.
                         Historical Note                               K. The Authority shall release grant proceeds subject to a dis-
       New Section adopted by final rulemaking at 6 A.A.R.                  bursement request if the request is consistent with the planning
      2116, effective May 16, 2000 (Supp. 00-2). Former Sec-                and design assistance grant agreement and the disbursement
        tion R18-15-504 repealed; new Section R18-15-504                    schedule.
     renumbered from R18-15-505 and amended by final rule-                  1. The grant recipient shall request each disbursement on
       making at 7 A.A.R. 5956, effective December 4, 2001                       the forms provided by the Authority. Each disbursement


September 30, 2010                                                Page 17                                                        Supp. 10-3
Title 18, Ch. 15                                      Arizona Administrative Code
                                            Water Infrastructure Finance Authority of Arizona

         request shall include a certification and signature docu-         received according to A.R.S. § 49-1267(A). The Authority
         ment, and a cost-incurred report. The Authority shall not         shall only use the monies from the Hardship Grant Fund Pro-
         process a disbursement until the applicant provides a             gram for:
         completed disbursement form.                                      1. Providing hardship grants to political subdivisions or
    2.   The grant recipient shall include copies of invoices, can-              Indian tribes to plan, design, acquire, construct or
         celed checks, or other documents that show proof of eli-                improve wastewater collection and treatment facilities;
         gible costs incurred with each disbursement request.                    and
                                                                           2. Providing training and technical assistance related to
                          Historical Note
                                                                                 operation and maintenance of wastewater treatment facil-
       New Section adopted by final rulemaking at 6 A.A.R.
                                                                                 ities.
     2116, effective May 16, 2000 (Supp. 00-2). Former Sec-
                                                                      B.   The Authority shall identify any funding available for finan-
      tion R18-15-505 renumbered to R18-15-504; new Sec-
                                                                           cial assistance under the Hardship Grant Fund Program in the
      tion R18-15-505 made by final rulemaking at 7 A.A.R.
                                                                           annual Clean Water Revolving Fund Intended Use Plan
          5956, effective December 4, 2001 (Supp. 01-4).
                                                                           described in R18-15-202 and any funding available for techni-
     Amended by final rulemaking at 16 A.A.R. 1709, effec-
                                                                           cal assistance in the Clean Water Technical Assistance
                tive October 9, 2010 (Supp. 10-3).
                                                                           Intended Use Plan described in R18-15-502. If the Board
R18-5-506.    Repealed                                                     determines no funding is available for the Hardship Grant
                                                                           Fund Program, the Authority shall not evaluate any applica-
                         Historical Note
                                                                           tions for financial assistance or grant applications for technical
      New Section adopted by final rulemaking at 6 A.A.R.
                                                                           assistance for funding from the Hardship Grant Fund Program.
       2116, effective May 16, 2000 (Supp. 00-2). Section
      repealed; new Section made by final rulemaking at 7                                       Historical Note
     A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).                   New Section adopted by final rulemaking at 6 A.A.R.
     Section repealed by final rulemaking at 16 A.A.R. 1709,               2116, effective May 16, 2000 (Supp. 00-2). Amended by
              effective October 9, 2010 (Supp. 10-3).                      final rulemaking at 7 A.A.R. 5956, effective December 4,
                                                                            2001 (Supp. 01-4). Section repealed; new Section made
R18-15-507. Repealed
                                                                           by final rulemaking at 16 A.A.R. 1709, effective October
                         Historical Note                                                     9, 2010 (Supp. 10-3).
      New Section adopted by final rulemaking at 6 A.A.R.
                                                                      R18-15-602. Hardship Grant Fund Financial Assistance
       2116, effective May 16, 2000 (Supp. 00-2). Section
                                                                      A. If funding is available in the Hardship Grant Fund Program,
      repealed; new Section made by final rulemaking at 7
                                                                          the Authority shall determine if any of the applicants request-
     A.A.R. 5956, effective December 4, 2001 (Supp. 01-4).
                                                                          ing placement on the Clean Water Revolving Fund Project Pri-
     Section repealed by final rulemaking at 16 A.A.R. 1709,
                                                                          ority List meet the requirements according to A.R.S. § 49-
              effective October 9, 2010 (Supp. 10-3).
                                                                          1268(A)(2). In addition to meeting the requirements of A.R.S.
R18-15-508. Repealed                                                      § 49-1268(A)(2), the applicant shall meet the following:
                                                                          1. On the date the applicant applies for financial assistance,
                          Historical Note
                                                                                the per capita annual income of the community’s resi-
    New Section made by final rulemaking at 7 A.A.R. 5956,
                                                                                dents does not exceed 80% of national per capita income
        effective December 4, 2001 (Supp. 01-4). Section
                                                                                as reported by the U.S. Census Bureau.
    repealed by final rulemaking at 16 A.A.R. 1709, effective
                                                                          2. On the date the applicant applies for financial assistance,
                  October 9, 2010 (Supp. 10-3).
                                                                                the community’s local unemployment rate exceeds by
R18-15-509. Repealed                                                            one percentage point or more the most recently reported
                                                                                average yearly national unemployment rate as reported
                          Historical Note
                                                                                by the U.S. Department of Labor’s Bureau of Labor Sta-
    New Section made by final rulemaking at 7 A.A.R. 5956,
                                                                                tistics.
        effective December 4, 2001 (Supp. 01-4). Section
                                                                      B. The Authority shall make the determination of applicant’s eli-
    repealed by final rulemaking at 16 A.A.R. 1709, effective
                                                                          gibility for the Hardship Grant Fund Program during the rank-
                  October 9, 2010 (Supp. 10-3).
                                                                          ing of the project under R18-15-204. Of the applicants eligible
R18-15-510. Repealed                                                      to receive financial assistance from the Hardship Grant Fund
                                                                          Program, the Authority shall award the hardship grant monies
                          Historical Note
                                                                          based on an applicant’s financial capability and ability to gen-
    New Section made by final rulemaking at 7 A.A.R. 5956,
                                                                          erate sufficient revenues to pay for debt service.
        effective December 4, 2001 (Supp. 01-4). Section
                                                                      C. The Authority shall proceed according to Article 2 of this
    repealed by final rulemaking at 16 A.A.R. 1709, effective
                                                                          Chapter for any applicant meeting the eligibility requirements
                  October 9, 2010 (Supp. 10-3).
                                                                          for the Hardship Grant Fund Program. In addition to proceed-
R18-15-511. Repealed                                                      ing under R18-15-207, the Authority shall identify any appli-
                                                                          cant that qualifies for Hardship Grant Fund Program financial
                          Historical Note
                                                                          assistance and shall make a recommendation to the Board
    New Section made by final rulemaking at 7 A.A.R. 5956,
                                                                          regarding the amount of funding to provide the applicant from
        effective December 4, 2001 (Supp. 01-4). Section
                                                                          the Hardship Grant Fund Program.
    repealed by final rulemaking at 16 A.A.R. 1709, effective
                  October 9, 2010 (Supp. 10-3).                                                 Historical Note
                                                                              New Section adopted by final rulemaking at 6 A.A.R.
    ARTICLE 6. HARDSHIP GRANT FUND PROGRAM
                                                                           2116, effective May 16, 2000 (Supp. 00-2). Amended by
R18-15-601. Hardship Grant Fund Administration                             final rulemaking at 7 A.A.R. 5956, effective December 4,
A. The Authority shall establish a separate account or accounts              2001 (Supp. 01-4). Amended by final rulemaking at 16
    for the Hardship Grant Fund Program from any monies                       A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).


Supp. 10-3                                                       Page 18                                               September 30, 2010
                                                      Arizona Administrative Code                                       Title 18, Ch. 15
                                            Water Infrastructure Finance Authority of Arizona

R18-15-603. Hardship Grant Fund Technical Assistance                        2001 (Supp. 01-4). Amended by final rulemaking at 16
A. If funding is available in the Hardship Grant Fund Program,               A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).
    the Authority shall identify in the Request for Grant Applica-            ARTICLE 7. INTEREST RATE SETTING AND
    tions prepared according to A.R.S. § 41-2702(B) the amount                       FORGIVABLE PRINCIPAL
    of funding for technical assistance available from the Hardship
    Grant Fund Program.                                               R18-15-701. Interest Rate Setting and Forgivable Principal
                                                                      A. The Authority shall prescribe the rate of interest, including
B. The Authority shall make the determination of grant appli-
                                                                          interest rates as low as 0% on Authority loans, bond purchase
    cant’s eligibility for the Hardship Grant Fund Program during
                                                                          agreements, and linked deposit guarantees based on the appli-
    the ranking of the project under R18-15-503. Of the grant
                                                                          cant’s local fiscal capacity under R18-15-204(A)(6), R18-15-
    applicants eligible to receive technical assistance from the
                                                                          304(A)(6), or R18-15-404(A)(5), and an applicant’s ability to
    Hardship Grant Fund Program, the Authority shall award the
                                                                          generate sufficient revenues to pay debt service.
    hardship grant monies based on the financial capability of a
                                                                      B. The Authority may forgive principal on Authority loans, bond
    grant applicant.                                                      purchase agreements, and linked deposit guarantees made to
C. The Authority shall proceed according to R18-15-503 for any            local units of government to plan, acquire, construct, or
    grant applicant requesting assistance for operation and mainte-       improve drinking water facilities based on:
    nance for a wastewater treatment facility. In addition to pro-        1. An applicant’s local fiscal capacity under R18-15-
    ceeding under R18-15-503(F), the Authority shall identify any              304(A)(6), and
    grant applicant that qualifies for Hardship Grant Fund Pro-           2. An applicant’s ability to generate sufficient revenues to
    gram technical assistance and shall make a recommendation to               pay debt service.
    the Board regarding the amount of funding to provide the grant
    applicant from the Hardship Grant Fund Program.                                             Historical Note
                                                                              New Section adopted by final rulemaking at 6 A.A.R.
                         Historical Note                                   2116, effective May 16, 2000 (Supp. 00-2). Amended by
      New Section adopted by final rulemaking at 6 A.A.R.                  final rulemaking at 7 A.A.R. 5956, effective December 4,
    2116, effective May 16, 2000 (Supp. 00-2). Amended by                    2001 (Supp. 01-4). Amended by final rulemaking at 16
    final rulemaking at 7 A.A.R. 5956, effective December 4,                  A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).




September 30, 2010                                               Page 19                                                     Supp. 10-3

								
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