The Vermont Statutes Online
Conservation and Development
AID TO MUNICIPALITIES FOR WATER SUPPLY, POLLUTION ABATEMENT AND SEWER SEPARATION
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.
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.
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:
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
authorization by the electorate of indebtedness in the amount of the loan under
(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
remainder in the 20th year.
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
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.
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.
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.)