Sec. 22a-478. Eligible water quality projects. Eligible drinking water projects. Project grants. Grant account loans.
Sec. 22a-478. Eligible water quality projects. Eligible drinking water projects.
Project grants. Grant account loans. (a) The commissioner shall maintain a priority
list of eligible water quality projects and shall establish a system setting the priority for
making project grants, grant account loans and project loans. In establishing such priority
list and ranking system, the commissioner shall consider all factors he deems relevant,
including but not limited to the following: (1) The public health and safety; (2) protection
of environmental resources; (3) population affected; (4) attainment of state water quality
goals and standards; (5) consistency with the state plan of conservation and development; (6) state and federal regulations; and (7) the formation in municipalities of local
housing partnerships pursuant to the provisions of section 8-336f. The priority list of
eligible water quality projects shall include a description of each project and its purpose,
impact, cost and construction schedule, and an explanation of the manner in which
priorities were established. The commissioner shall adopt an interim priority list of
eligible water quality projects for the purpose of making project grants, grant account
loans and project loans prior to adoption of final regulations, which priority list shall
be the priority list currently in effect under subsection (c) of section 22a-439.
(b) In each fiscal year the commissioner may make project grants, grant account
loans and project loans to municipalities in the order of the priority list of eligible water
quality projects to the extent of moneys available therefor in the appropriate accounts
of the Clean Water Fund. Each municipality undertaking an eligible water quality project
may apply for and receive a project grant and loan or project grants and loans in an
amount equal to one hundred per cent of the eligible water quality project costs.
(c) The funding of an eligible water quality project shall be pursuant to a project
funding agreement between the state, acting by and through the commissioner, and the
municipality undertaking such project and shall be evidenced by a project fund obligation or grant account loan obligation, or both, or an interim funding obligation of such
municipality issued in accordance with section 22a-479. A project funding agreement
shall be in a form prescribed by the commissioner. Eligible water quality projects shall
be funded as follows:
(1) A nonpoint source pollution abatement project shall receive a project grant of
seventy-five per cent of the cost of the project determined to be eligible by the commissioner.
(2) A combined sewer project shall receive (A) a project grant of fifty per cent of
the cost of the project, and (B) a loan for the remainder of the costs of the project, not
exceeding one hundred per cent of the eligible water quality project costs.
(3) A construction contract eligible for financing awarded by a municipality on or
after July 1, 1999, as a project undertaken for nitrogen removal shall receive a project
grant of thirty per cent of the cost of the project associated with nitrogen removal, a
twenty per cent grant for the balance of the cost of the project not related to nitrogen
removal, and a loan for the remainder of the costs of the project, not exceeding one
hundred per cent of the eligible water quality project costs. Nitrogen removal projects
under design or construction on July 1, 1999, and projects that have been constructed
but have not received permanent, Clean Water Fund financing, on July 1, 1999, shall
be eligible to receive a project grant of thirty per cent of the cost of the project associated
with nitrogen removal, a twenty per cent grant for the balance of the cost of the project
not related to nitrogen removal, and a loan for the remainder of the costs of the project,
not exceeding one hundred per cent of the eligible water quality project costs.
(4) If supplemental federal grant funds are available for Clean Water Fund projects
specifically related to the clean-up of Long Island Sound that are funded on or after July
1, 2003, a distressed municipality, as defined in section 32-9p, may receive a combination of state and federal grants in an amount not to exceed fifty per cent of the cost of
the project associated with nitrogen removal, a twenty per cent grant for the balance of
the cost of the project not related to nitrogen removal, and a loan for the remainder of
the costs of the project, not exceeding one hundred per cent of the allowable water
quality project costs.
(5) A municipality with a water pollution control project, the construction of which
began on or after July 1, 2003, which has (A) a population of five thousand or less, or
(B) a population of greater than five thousand which has a discrete area containing a
population of less than five thousand that is not contiguous with the existing sewerage
system, shall be eligible to receive a grant in the amount of twenty-five per cent of the
design and construction phase of eligible project costs, and a loan for the remainder of
the costs of the project, not exceeding one hundred per cent of the eligible water quality
project costs.
(6) Any other eligible water quality project shall receive (A) a project grant of twenty
per cent of the eligible cost, and (B) a loan for the remainder of the costs of the project,
not exceeding one hundred per cent of the eligible project cost.
(7) Project agreements to fund eligible project costs with grants from the Clean
Water Fund that were executed during or after the fiscal year beginning July 1, 2003,
shall not be reduced according to the provisions of the regulations adopted under section
22a-482.
(8) On or after July 1, 2002, an eligible water quality project that exclusively addresses sewer collection and conveyance system improvements may receive a loan for
one hundred per cent of the eligible costs provided such project does not receive a project
grant. Any such sewer collection and conveyance system improvement project shall be
rated, ranked, and funded separately from other water pollution control projects and
shall be considered only if it is highly consistent with the state's conservation and development plan, or is primarily needed as the most cost effective solution to an existing
area-wide pollution problem and incorporates minimal capacity for growth.
(9) All loans made in accordance with the provisions of this section for an eligible
water quality project shall bear an interest rate of two per cent per annum. The commissioner may allow any project fund obligation, grant account loan obligation or interim
funding obligation for an eligible water quality project to be repaid by a borrowing
municipality prior to maturity without penalty.
(d) Each project loan and grant account loan for an eligible water quality project
shall be made pursuant to a project funding agreement between the state, acting by and
through the commissioner, and such municipality, and each project loan for an eligible
water quality project shall be evidenced by a project loan obligation, each grant account
loan for an eligible water quality project shall be evidenced by a grant account loan
obligation, or either may be evidenced by an interim funding obligation of such municipality issued in accordance with sections 22a-475 to 22a-483, inclusive. Except as otherwise provided in said sections, each project funding agreement shall contain such terms
and conditions, including provisions for default which shall be enforceable against a
municipality, as shall be approved by the commissioner. Each project loan obligation,
grant account loan obligation or interim funding obligation issued pursuant to a project
funding agreement for an eligible water quality project shall bear interest at a rate of
two per cent per annum. Except as otherwise provided in sections 22a-475 to 22a-483,
inclusive, each project loan obligation, grant account loan obligation and interim funding
obligation shall be issued in accordance with the terms and conditions set forth in the
project funding agreement. Notwithstanding any other provision of the general statutes,
public act or special act to the contrary, each project loan obligation and grant account
loan obligation for an eligible water quality project shall mature no later than twenty
years from the date of completion of the construction of the project and shall be paid
in monthly installments of principal and interest or in monthly installments of principal
unless a finding is otherwise made by the Treasurer of the state requiring a different
payment schedule. Interest on each project loan obligation and grant account loan obligation for an eligible water quality project shall be payable monthly unless a finding is
otherwise made by the Treasurer of the state requiring a different payment schedule.
Principal and interest on interim funding obligations issued under a project funding
agreement for an eligible water quality project shall be payable at such time or times
as provided in the project funding agreement, not exceeding six months after the date
of completion of the planning and design phase or the construction phase, as applicable,
of the eligible water quality project, as determined by the commissioner, and may be
paid from the proceeds of a renewal note or notes or from the proceeds of a project loan
obligation or grant account loan obligation. The commissioner may allow any project
loan obligation, grant account loan obligation or interim funding obligation for an eligible water quality project to be repaid by the borrowing municipality prior to maturity
without penalty.
(e) (1) The commissioner may make a project grant or a grant account loan or both
to a municipality pursuant to a project funding agreement for the planning and design
phase of an eligible water quality project. Principal and interest on a grant account loan
for the planning and design phases of an eligible water quality project may be paid from
and included in the principal amount of a loan for the construction phase of an eligible
water quality project.
(2) In lieu of a grant and loan pursuant to subsection (b) of this section, the commissioner, upon written request by a municipality, may make a project grant to such municipality in the amount of fifty-five per cent of the cost approved by the commissioner for
the planning phase of an eligible water quality project.
(3) If supplemental federal grant funds are available for Clean Water Fund projects
specifically related to the clean-up of Long Island Sound that are funded on or after July
1, 2003, a distressed municipality, as defined in section 32-9p, may receive a combination of state and federal grants in an amount not to exceed one hundred per cent of the
cost, approved by the commissioner, for the planning phase of an eligible water quality
project for nitrogen removal.
(f) A project grant, a grant account loan and a project loan for an eligible water
quality project shall not be made to a municipality unless:
(1) In the case of a project grant, grant account loan and project loan for the construction phase, final plans and specifications for such project are approved by the commissioner;
(2) Each municipality undertaking such project provides assurances satisfactory to
the commissioner that the municipality shall undertake and complete such project with
due diligence and, in the case of a project loan for the construction phase, that it shall
own such project and shall operate and maintain the eligible water quality project for a
period and in a manner satisfactory to the commissioner after completion of such project;
(3) Each municipality undertaking such project has filed with the commissioner all
applications and other documents prescribed by the commissioner within time periods
prescribed by the commissioner;
(4) Each municipality undertaking such project has established separate accounts
for the receipt and disbursement of the proceeds of such project grant, grant account
loan and project loan and has agreed to maintain project accounts in accordance with
generally accepted government accounting standards;
(5) In any case in which an eligible water quality project shall be owned or maintained by more than one municipality, the commissioner has received evidence satisfactory to the commissioner that all such municipalities are legally required to complete
their respective portions of such project;
(6) Each municipality undertaking such project has agreed to comply with such
audit requirements as may be imposed by the commissioner;
(7) In the case of a project grant, grant account loan and project loan for the construction phase, each municipality shall assure the commissioner that it has adequate legal,
institutional, managerial and financial capability to construct and operate the pollution
abatement facility for the design life of the facility; and
(8) In the case of a project grant, grant account loan and project loan for the construction phase awarded after July 1, 1991, each municipality shall demonstrate, to the satisfaction of the commissioner, that it has implemented an adequate operation and maintenance program for the municipal sewerage system for the design life of the facility.
(g) Notwithstanding any provision of sections 22a-475 to 22a-483, inclusive, to the
contrary, the commissioner may make a project grant or project grants and a grant account loan or loans in accordance with the provisions of subsection (c) of this section
with respect to an eligible water quality project without regard to the priority list of
eligible water quality projects if a public emergency exists which requires that the eligible water quality project be undertaken to protect the public health and safety or the
natural and environmental resources of the state.
(h) The Department of Public Health shall establish and maintain a priority list of
eligible drinking water projects and shall establish a system setting the priority for making project loans to eligible public water systems. In establishing such priority list and
ranking system, the Commissioner of Public Health shall consider all factors which he
deems relevant, including but not limited to the following: (1) The public health and
safety; (2) protection of environmental resources; (3) population affected; (4) risk to
human health; (5) public water systems most in need on a per household basis according
to applicable state affordability criteria; (6) compliance with the applicable requirements
of the federal Safe Drinking Water Act and other related federal acts; (7) applicable
state and federal regulations. The priority list of eligible drinking water projects shall
include a description of each project and its purpose, impact, cost and construction
schedule, and an explanation of the manner in which priorities were established. The
Commissioner of Public Health shall adopt an interim priority list of eligible drinking
water projects for the purpose of making project loans prior to adoption of final regulations, and in so doing may utilize existing rules and regulations of the department relating
to the program. To the extent required by applicable federal law, the Department of
Public Health and the Commissioner of Environmental Protection shall prepare any
required intended use plan with respect to eligible drinking water projects; (8) consistency with the plan of conservation and development; (9) consistency with the policies
delineated in section 22a-380; and (10) consistency with the coordinated water system
plan in accordance with subsection (f) of section 25-33d.
(i) In each fiscal year the commissioner may make project loans to recipients in the
order of the priority list of eligible drinking water projects to the extent of moneys
available therefor in the appropriate accounts of the Clean Water Fund. Each recipient
undertaking an eligible drinking water project may apply for and receive a project loan
or loans in an amount equal to one hundred per cent of the eligible project costs.
(j) The funding of an eligible drinking water project shall be pursuant to a project
funding agreement between the state, acting by and through the Commissioner of Environmental Protection and the Commissioner of Public Health, and the recipient undertaking such project and shall be evidenced by a project fund obligation or an interim
funding obligation of such recipient issued in accordance with section 22a-479. A project
funding agreement shall be in a form prescribed by the Commissioner of Environmental
Protection and the Commissioner of Public Health. Any eligible drinking water project
shall receive a project loan for the costs of the project. All loans made in accordance
with the provisions of this section for an eligible drinking water project shall bear an
interest rate not exceeding one-half the rate of the average net interest cost as determined
by the last previous similar bond issue by the state of Connecticut as determined by
the State Bond Commission in accordance with subsection (t) of section 3-20. The
commissioner may allow any project fund obligation or interim funding obligation for
an eligible drinking water project to be repaid by a borrowing recipient prior to maturity
without penalty.
(k) Each project loan for an eligible drinking water project shall be made pursuant
to a project funding agreement between the state, acting by and through the Commissioner of Environmental Protection and the Department of Public Health, and such
recipient, and each project loan for an eligible drinking water project shall be evidenced
by a project loan obligation or by an interim funding obligation of such recipient issued
in accordance with sections 22a-475 to 22a-483, inclusive. Except as otherwise provided
in said sections 22a-475 to 22a-483, inclusive, each project funding agreement shall
contain such terms and conditions, including provisions for default which shall be enforceable against a recipient, as shall be approved by the Commissioner of Environmental Protection and the Commissioner of Public Health. Each project loan obligation or
interim funding obligation issued pursuant to a project funding agreement for an eligible
drinking water project shall bear an interest rate not exceeding one-half the rate of the
average net interest cost as determined by the last previous similar bond issue by the
state of Connecticut as determined by the State Bond Commission in accordance with
subsection (t) of section 3-20. Except as otherwise provided in said sections 22a-475
to 22a-483, inclusive, each project loan obligation and interim funding obligation shall
be issued in accordance with the terms and conditions set forth in the project funding
agreement. Notwithstanding any other provision of the general statutes, public act or
special act to the contrary, each project loan obligation for an eligible drinking water
project shall mature no later than twenty years from the date of completion of the construction of the project and shall be paid in monthly installments of principal and interest
or in monthly installments of principal unless a finding is otherwise made by the State
Treasurer requiring a different payment schedule. Interest on each project loan obligation for an eligible drinking water project shall be payable monthly unless a finding is
otherwise made by the State Treasurer requiring a different payment schedule. Principal
and interest on interim funding obligations issued under a project funding agreement
for an eligible drinking water project shall be payable at such time or times as provided
in the project funding agreement, not exceeding six months after the date of completion
of the planning and design phase or the construction phase, as applicable, of the eligible
drinking water project, as determined by the Commissioner of Environmental Protection
and the Commissioner of Public Health, and may be paid from the proceeds of a renewal
note or notes or from the proceeds of a project loan obligation. The commissioner may
allow any project loan obligation or interim funding obligation for an eligible drinking
water project to be repaid by the borrowing recipient prior to maturity without penalty
with the concurrence of the Commissioner of Public Health.
(l) The Commissioner of Environmental Protection and the Commissioner of Public
Health may make a project loan to a recipient pursuant to a project funding agreement
for an eligible drinking water project for the planning and design phase of an eligible
project, to the extent provided by the federal Safe Drinking Water Act, as amended.
Principal and interest on a project loan for the planning and design phases of an eligible
drinking water project may be paid from and included in the principal amount of a loan
for the construction phase of an eligible drinking water project.
(m) A project loan for an eligible drinking water project shall not be made to a
recipient unless: (1) In the case of a project loan for the construction phase, final plans
and specifications for such project are approved by the Commissioner of Public Health,
and when the recipient is a water company, as defined in section 16-1, with the concurrence of the Department of Public Utility Control, and with the approval of the Commissioner of Environmental Protection for consistency with financial requirements of the
general statutes, regulations and resolutions; (2) each recipient undertaking such project
provides assurances satisfactory to the Commissioner of Public Health and the Commissioner of Environmental Protection that the recipient shall undertake and complete such
project with due diligence and, in the case of a project loan for the construction phase,
that it shall own such project and shall operate and maintain the eligible drinking water
project for a period and in a manner satisfactory to the Department of Public Health
after completion of such project; (3) each recipient undertaking such project has filed
with the Commissioner of Public Health all applications and other documents prescribed
by the Commissioner of Environmental Protection, the Department of Public Utility
Control and the Commissioner of Public Health within time periods prescribed by the
Commissioner of Public Health; (4) each recipient undertaking such project has established separate accounts for the receipt and disbursement of the proceeds of such project
loan and has agreed to maintain project accounts in accordance with generally accepted
government accounting standards or uniform system of accounts, as applicable; (5) in
any case in which an eligible drinking water project shall be owned or maintained by
more than one recipient, the commissioner has received evidence satisfactory to him
that all such recipients are legally required to complete their respective portions of such
project; (6) each recipient undertaking such project has agreed to comply with such
audit requirements as may be imposed by the commissioner; and (7) in the case of a
project loan for the construction phase, each recipient shall assure the Commissioner
of Environmental Protection, the Department of Public Utility Control, as required, and
the Commissioner of Public Health that it has adequate legal, institutional, technical,
managerial and financial capability to ensure compliance with the requirements of applicable federal law, except to the extent otherwise permitted by federal law.
(n) Notwithstanding any provision of sections 22a-475 to 22a-483, inclusive, to the
contrary, the Commissioner of Public Health with the concurrence of the Commissioner
of Environmental Protection may make a project loan or loans in accordance with the
provisions of subsection (j) of this section with respect to an eligible drinking water
project without regard to the priority list of eligible drinking water projects if a public
drinking water supply emergency exists, pursuant to section 25-32b, which requires that
the eligible drinking water project be undertaken to protect the public health and safety.
(o) The commissioner shall prepare an annual report to the Governor within ninety
days after the completion of each fiscal year which includes a list of project funding
agreements entered into during the fiscal year then ended, the estimated year that funding
will be available for specific projects listed on each priority list of eligible projects and
a financial report on the condition of the Clean Water Fund for the fiscal year then ended,
which shall include a certification by the commissioner of any amounts to become
available for payment of debt service or for the purchase or redemption of bonds during
the next succeeding fiscal year.
(P.A. 86-420, S. 4, 12; P.A. 87-571, S. 4, 7; P.A. 88-305, S. 3, 4; P.A. 89-377, S. 4, 8; P.A. 90-301, S. 3, 8; June Sp.
Sess. P.A. 90-1, S. 4, 10; P.A. 91-246, S. 2; P.A. 94-108, S. 2; P.A. 96-181, S. 113, 121; P.A. 99-241, S. 13, 66; May 9
Sp. Sess. P.A. 02-5, S. 11: P.A. 03-218, S. 1, 2; P.A. 04-185, S. 1; P.A. 05-288, S. 111.)
History: P.A. 87-571 amended Subsec. (b) to provide for cost determination based on cost used by the federal Environmental Protection Agency to make water pollution control construction grants and made other technical changes; P.A. 88-305 added Subsec. (a)(7) re formation of local housing partnerships; P.A. 89-377 amended Subsec. (d) to provide for
monthly, rather than annual, payment of principal and interest, unless the treasurer determines otherwise; P.A. 90-301
added Subsec. (f)(7) and (8) re grants and loans for construction phase and re project grants; June Sp. Sess. P.A. 90-1
amended Subsec. (d) to provide that the maturation date of loan obligations shall be determined from the date of completion
of construction rather than from issuance of the loan obligation; P.A. 91-246 amended Subsec. (c) to allow certain nonpoint
source pollution abatement projects to receive grants of up to 75% of the cost of such projects approved by the commissioner;
P.A. 94-108 amended Subsec. (e) to add new Subdiv. (2) re optional project grant for planning for eligible water quality
projects; P.A. 96-181 added new Subsecs. (h) to (n), inclusive, re public drinking water projects, relettered existing Subsec.
(h) as Subsec. (o) and made conforming changes, effective July 1, 1996; P.A. 99-241 amended Subsec. (c) to provide 30%
grants for certain nitrogen removal projects, effective July 1, 1999 (Revisor's note: In codifying P.A. 99-241 the Revisors
editorially changed the phrase "... but have nor received payment, ..." to "but have not received payment, ..." for accuracy);
May 9 Sp. Sess. P.A. 02-5 amended Subsec. (c) to add provisions re loans for projects that exclusively address sewer
collection and conveyance system improvements and to make a technical change, effective July 1, 2002; P.A. 03-218
amended Subsec. (c) by designating existing provisions re amounts, etc. as Subdivs. (1) to (3), inclusive, (6), and (8) to
(10), inclusive, deleting language in Subdiv. (2) and (6) re the cost the Environmental Protection Agency uses in making
grants, adding provision in Subdiv. (3) re 20% grant for the balance of the cost of the project not related to nitrogen removal
for projects prior to and on or after July 1, 1999, and provision re loan for the remainder of the costs, not exceeding 100%
of the costs for projects prior to July 1, 1999, adding new Subdiv. (4) re projects related to the clean-up of Long Island
Sound in a distressed municipality, adding new Subdiv. (5) re project in a municipality with a population of 5,000 or less
or such a population in a discrete area, replacing "cost" with "eligible cost" in Subdiv. (6)(A), adding new Subdiv. (7) re
project agreements executed during or after the 2003 fiscal year, and amending Subdiv. (9) to replace "and shall" with
"provided such project does", and added new Subsec. (e)(3) re supplemental federal grant funds for Long Island Sound
projects in a distressed municipality, effective July 1, 2003; P.A. 04-185 deleted Subsec. (c)(8) re loan for 100% of the
eligible costs on or after July 1, 2006, and redesignated existing Subdivs. (9) and (10) as new Subdivs. (8) and (9); P.A.
05-288 made technical changes in Subsec. (c)(8), effective July 13, 2005.