§ 162A-24. Regional Water Supply Planning Revolving Fund established; conditions and procedures.
§ 162A‑24. Regional Water Supply Planning Revolving Fund established; conditions andprocedures.
(a) There is established under the control and direction of theDepartment of Administration a Regional Water Supply Planning Revolving Fund,to consist of any moneys that may be appropriated for use through the fund bythe General Assembly or that may be made available to it from any other source.The Department may make advances from the fund to any county, municipality,sanitary district, or to counties and municipalities acting collectively orjointly as a regional water authority, for the purpose of meeting the cost ofadvance planning and engineering work necessary or desirable for thedevelopment of a comprehensive plan for a regional water supply system asdefined in this Article. Such advances shall be subject to repayment by therecipient to the Department from the proceeds of bonds or other obligations forthe regional water supply system, or from other funds available to therecipient including grants, except when, in the judgment of the Department ofEnvironment and Natural Resources, a proposed plan for development andconstruction of a countywide or other regional water system is not feasiblebecause of design and construction factors or because available sources of rawwater supply are inadequate or because construction of a proposed system is noteconomically feasible, (but not if the applicant decides not to proceed withconstruction that has been planned and which the Department of Environment andNatural Resources have declared to be feasible).
(b) The Department of Administration shall not make any advancepursuant to this section without first referring the application and proposalto the Department of Environment and Natural Resources for determination as towhether the following conditions have been met:
(1) The proposed area is suitable for development of a regionalwater supply system from the standpoint of present and projected populations,industrial growth potential, and present and future sources of raw water.
(2) The applicant proposes to undertake long‑rangecomprehensive planning to meet present and projected needs for high qualitywater service through the construction of a regional water supply system asdefined in this Article. The determination by the Department of Environment andNatural Resources that the proposed system would be a "regionalsystem," as defined by this Article, shall be conclusive.
(3) The applicant proposes to coordinate planning of theregional water supply with land‑use planning in the area, in order thatboth planning efforts will be compatible.
(4) The applicant proposes to employ an engineer licensed topractice in the State of North Carolina to prepare a comprehensive regionalwater supply plan, which plan will provide detailed information on source orsources of water to meet projected domestic and industrial water demands;proposed system, including raw water intake(s), treatment plant, storagefacilities, distribution system, and other waterworks appurtenances; proposedinterconnections with existing systems, and provisions for interconnectionswith other county, municipal and regional systems; phased development ofsystems to achieve ultimate objectives if economic feasibility is in question;projected water service areas; proposed equipment; estimates of cost andprojected revenues; and methods of financing.
(c) In addition to the above conditions, the Department ofAdministration shall not make any advance to any applicant until the followingconditions have also been met:
(1) The Department has determined that there is a reasonableprospect of federal (or State) aid in the financing of the projected work ifthe undertaking is one that will be dependent upon federal (or State) aid.
(2) The Department has received firm assurances from theapplicant that the works or project, if feasible, will be undertaken.
(d) All advances made pursuant to this section shall be repaidin full, within one year of the start of construction on the projected system,or within six months after the issuance of bonds for the financing ofconstruction of the system, or within six years from the date of the making ofthe advance, whichever comes first. The Department may, in its discretion,require the repayment of any advance in installments.
(e) The Department of Administration may adopt such rules andregulations with respect to the making of applications or the receipt ofadvances as are consistent with the terms and purpose of this section.
(f) The provisions of Chapter 159 of the General Statutes ofNorth Carolina (Local Government Acts) shall not apply to advances made fromthe Regional Water Supply Planning Revolving Fund as authorized in thisArticle. (1971, c. 892, s.1; 1973, c. 476, s. 128; 1989, c. 727, ss. 213, 214; 1997‑443, s.11A.123.)