§1624a. Awards for pollution abatement projects for combined sewer overflows

Link to law: http://legislature.vermont.gov/statutes/section/10/055/01624a
Published: 2015

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The Vermont Statutes Online



Title

10

:
Conservation and Development






Chapter

055

:
AID TO MUNICIPALITIES FOR WATER SUPPLY, POLLUTION ABATEMENT AND SEWER SEPARATION






Subchapter

003
:
CONSTRUCTION GRANTS-IN-AID










 

§

1624a. Awards for pollution abatement projects for combined sewer overflows

(a) When the

Department finds that a proposed water pollution abatement project not covered

under section 1625 of this title is necessary, that the proposed type, kind,

quality, size, and estimated cost of the project, including operation cost and

sewage disposal charges, are suitable for abatement of pollution, and that the

project or the prescribed project phases are necessary to meet the intent of

the water quality classifications established by the Secretary or by statute

under chapter 47 of this title, the Department may award State financial

assistance to the project. These projects may include ancillary work determined

by the Secretary to be necessary to attain the water quality goals.

(b) The

assistance shall consist of:

(1) A grant of

25 percent of the eligible project cost.

(2) A loan from

the Vermont Environmental Protection Agency (EPA) Pollution Control Revolving

Fund or the Vermont Pollution Control Revolving Fund of 50 percent of the

eligible project cost. No interest shall be charged. In a certificate to the

Vermont Municipal Bond Bank, the Secretary shall recommend the term, repayment

schedule, and other terms and conditions of the loan.

(c)

Notwithstanding the percentages of assistance provided for in subsection (b) of

this section, when a municipality is certified by the Secretary of Commerce and

Community Development to be within a designated job development zone, the grant

to the municipality shall be 50 percent of eligible project costs and the loan

shall be 25 percent of eligible project costs.

(d) Grants and

loans under this section may be made from State and federal sources, as

determined by the Secretary.

(e) A loan

agreement may be entered into by action of the legislative body of the

municipality, using procedures specified by applicable general or special

enabling authority, following:

(1)

authorization by the electorate of issuance of bonds in the amount of 25

percent of project costs, unless the municipality has determined to use some

other method of financing its share of project cost; and

(2)

authorization by the electorate of indebtedness in the amount of the loan under

this section.

(f) A loan

agreement may include provisions for deferred repayment if the electorate has

authorized the future issuance of bonds to make a final repayment of the loan,

and the authorization specifies whether the bond agreements will pledge the

full faith and credit of the municipality or sufficient revenues from municipal

sewage disposal charges.

(1) Except as

provided in subdivision (2) of this subsection, loan repayments shall be

according to the following schedule:

(A) 0.50 percent

in the first year and increasing thereafter at 0.50 percent per year through

the ninth year; and

(B) 5.0 percent

in the 10th year through the 19th year; and

(C) the

remainder in the 20th year.

(2)

Notwithstanding subdivision (1) of this subsection, a municipality shall be

entitled to loan repayment under this subdivision if repayment would produce

municipal sewer rates in the municipality which exceed 150 percent of the

current State average rate for a family of four. For purposes of this

calculation, the municipality's sewer rates shall be deemed to include

operating costs, payments on the municipality's water pollution control debt,

and repayment of five percent of the principal of the loan under this section.

The following shall be minimum repayments under this subdivision:

(A) 0.25 percent

per year in the first through the tenth year, dating from the issuance of the

certification of completion of the project;

(B) 0.50 percent

in the 11th year and increasing thereafter at 0.50 percent per year through the

19th year; and

(C) the

remainder in the 20th year.

(3) When a loan

is issued with deferred repayment provisions pursuant to authorization of the

electorate under this section for the future issuance of bonds, upon maturity

of the loan, if other sources of revenue are available, the legislative body of

the municipality may elect not to issue bonds to make the final payment on the

loan. The term of these bonds, if issued, shall not exceed 20 years. As

authorized in the initial vote, these bonds may be secured by a pledge of the

full faith and credit of the municipality or by sufficient revenues from

municipal sewage disposal charges.

(g) State

financial assistance under this section shall be made to the extent that funds

are available and according to a system of priorities established by the

Secretary. In establishing this system, priority shall be given to pollution

abatement and not to the support of demand growth, and to projects discharging

into or near lakes on January 1, 1988.

(h)

Notwithstanding subsection (b) of this section, a loan awarded from the Vermont

Environmental Protection Agency Pollution Control Revolving Loan Fund for a

combined sewer overflow abatement project may be for up to 100 percent of the

eligible project cost if:

(1) the project

is included on a priority list; and

(2) the project

is capitalized, at least in part, with a Federal Clean Water State Revolving

Fund grant that includes loan forgiveness provisions. (Added 1987, No. 219

(Adj. Sess.), § 1, eff. May 27, 1988; amended 1995, No. 190 (Adj. Sess.), §

1(b); 2011, No. 117 (Adj. Sess.), § 1; 2011, No. 138 (Adj. Sess.), § 27, eff.

May 14, 2012.)
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