GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
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HOUSE DRH40068-LH-49* (1/28)
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Short Title: Water and Sewer Infrastructure/Funds. |
(Public) |
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Sponsors: |
Representatives Owens, Crawford, E. Warren, and Brubaker (Primary Sponsors). |
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Referred to: |
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A BILL TO BE ENTITLED
AN ACT to appropriate funds to the rural economic development center for local government water and sewer grants.
The General Assembly of North Carolina enacts:
SECTION 1.(a) Appropriation. There is appropriated from the General Fund to the Rural Economic Development Center, Inc., (Rural Center) the sum of fifty million dollars ($50,000,000) for the 2009‑2010 fiscal year to be used to provide grants to local government units for wastewater‑related projects and for public water system‑related projects as provided by this section. The Board of Directors of the Rural Center may determine whether specific water or wastewater needs exist that merit special consideration and may establish one or more subcategories of the program to address the identified needs.
SECTION 1.(b) Definitions. The definitions in G.S. 159G‑20 apply in this section, except that all census calculations are based on the most recent federal decennial census. In addition, the following definitions shall apply in this section unless otherwise provided:
(1) Ability to pay. An assessment of the ability of a local government unit to pay for a water infrastructure project as calculated annually by the Division of Community Assistance in the Department of Commerce.
(2) Economically distressed area. Any of the following:
a. An economically distressed county as defined in G.S. 143B‑437.01.
b. That part of a county in which the poverty rate is at least one hundred fifty percent (150%) of the State poverty rate. The poverty rate is the percentage of the population whose income is below the most recent federal poverty level set by the U.S. Bureau of the Census.
c. If it is not a county, its ability to pay is less than fifty percent (50%) of the ability to pay of the county in which it is located.
(3) Rural county. A county with a population density of fewer than 250 people per square mile based on the most recent federal decennial census.
SECTION 1.(c) Eligible Applicants; Eligible Projects. A local government unit is eligible for a grant under this section if it meets the eligibility requirements under subsection (d) or subsection (e) of this section for the specific type of grant. The funds appropriated under this section may be used to provide either a planning grant that meets the requirements under subsection (d) of this section or a supplemental grant that meets the requirements of subsection (e) of this section. The following projects are eligible for receiving a grant under this section:
(1) Wastewater collection system.
(2) Wastewater treatment works.
(3) Public water system.
(4) Wastewater and drinking water infrastructure planning.
(5) Multijurisdictional wastewater, drinking water, water quality, and stormwater planning.
SECTION 1.(d) Planning Grants. A planning grant under this section is available for the costs associated with preliminary planning for wastewater collection system projects, wastewater treatment works projects, and public water system projects. Preliminary planning includes developing a capital improvement plan, developing a comprehensive land‑use plan that provides for water quality protection, conducting a feasibility study, developing a regional or multijurisdictional infrastructure or water quality improvement plan, assembling a financing plan to carry out a project, completing a grant application, and preparing a preliminary engineering report for a proposed project. A planning grant is subject to the following restrictions:
(1) Eligibility. A local government unit is eligible for a planning grant if it meets the following criteria:
a. It is a rural county or is located in one of these counties.
b. It is an economically distressed county or is located in an economically distressed county or an economically distressed area.
c. For purposes of this subsection, a regional council of governments organized under G.S. 160A‑460 or a regional planning and development commission organized under G.S. 153A‑391 is considered a local government unit. A regional council of governments or regional planning and development commission is eligible for a grant if it serves a rural county and is applying for a regional or multijurisdictional planning project involving two or more units of local government.
(2) Maximum. A planning grant shall not exceed forty thousand dollars ($40,000) for each unit of local government.
(3) Matching funds. A local government unit shall match a planning grant on a dollar‑for‑dollar basis unless the unit meets one or more of the following descriptions, in which instance the Rural Center may require a match of fifty percent (50%) or less:
a. It is an economically distressed county or located in an economically distressed county.
b. Its poverty rate is at least one hundred fifty percent (150%) of the State poverty rate.
c. If it is not a county, its ability to pay is less than fifty percent (50%) of the ability to pay of the county in which it is located.
SECTION 1.(e) Supplemental Grants. A supplemental grant is available to match other funds to be applied to the construction costs of an eligible project. Other funds include federal funds, State funds, and local funds. A supplemental grant is subject to the following restrictions:
(1) Eligibility. A local government unit is eligible for a supplemental grant if it meets the following criteria:
a. It is a rural county or is located in one of these counties.
b. It adopts a resolution to set the household user fee for water and sewer service in the area served by the project at an amount that equals or exceeds the high‑unit‑cost threshold.
(2) Maximum. A supplemental grant shall not exceed five hundred thousand dollars ($500,000) unless the applicant meets one or more of these descriptions:
a. It is an economically distressed county or is located in an economically distressed county.
b. Its poverty rate is at least one hundred fifty percent (150%) of the State poverty rate.
c. If it is not a county, its ability to pay is less than fifty percent (50%) of the ability to pay of the county in which it is located.
The maximum supplemental grant for an applicant meeting at least one of these descriptions is the lesser of one million dollars ($1,000,000) or twenty‑five percent (25%) of the total project cost.
(3) Matching funds. A local government unit shall match a supplemental grant on a dollar‑for‑dollar basis unless the unit meets one or more of the following descriptions, in which instance the Rural Center may require a match of fifty percent (50%) or less:
a. It is an economically distressed county or is located in an economically distressed county.
b. Its poverty rate is at least one hundred fifty percent (150%) of the State poverty rate.
c. If it is not a county, its ability to pay is less than fifty percent (50%) of the ability to pay of the county in which it is located.
A local government unit that meets one or more of these descriptions may not provide less than a dollar‑for‑dollar match if the supplemental grant amount requested exceeds five hundred thousand dollars ($500,000).
SECTION 1.(f) Criteria for Grants. All projects must document a current critical water or wastewater need affecting human health or the environment. The criteria in G.S. 159G‑23, the criteria set out in this section, and any other criteria established by the Board of Directors of the Rural Center shall apply to a grant provided under this section. An application for a project that serves an economically distressed area shall have priority over a project that does not. The Board of Directors of the Rural Center may determine that a crisis need exists that merits special consideration and may establish a subcategory of this program to address one or more crisis applications. No provision in this section is intended to prohibit the Board of Directors of the Rural Center from working with the members of the General Assembly and the Governor to deploy resources to stimulate economic recovery to rural communities in the State. To that end, the Board of Directors of the Rural Center may determine that an economic crisis situation exists and grant a waiver of the requirement under subsection 1(d)(1)a. or 1(e)(1)a. to assist communities that otherwise would qualify for assistance under this program. Furthermore, under this program, the Rural Center may contract with other agencies to explore and test new and alternative water and wastewater technologies that may benefit small and rural communities.
SECTION 1.(g) Grant Applications. Any application for a grant under this section shall be submitted by the local government unit to the Rural Center. An application shall be submitted on a form prescribed by the Rural Center and shall contain the information required by the Rural Center. An applicant shall submit to the Rural Center any additional information requested by the Rural Center to enable the Rural Center to make a determination on the application. An application that does not contain information required on the application or requested by the Rural Center is incomplete and is not eligible for consideration. An applicant may submit an application in as many categories as it is eligible for consideration under this section.
SECTION 1.(h) Environmental Assessment. An application submitted under this section for a supplemental grant shall state whether the project to be funded by the grant requires an environmental assessment. If the application indicates that an environmental assessment is not required, it must identify the exclusion in the North Carolina Environmental Policy Act, Article 1 of Chapter 113A of the General Statutes, that applies to the project. The Rural Center shall give the Department of Environment and Natural Resources a copy of an application that indicates an environmental assessment is not required. If the Department of Environment and Natural Resources determines that the project requires an environmental assessment, the Department shall notify the Rural Center and the applicant, and the applicant shall submit the assessment to the Department before the Rural Center continues its review of the application. An application that does not identify an exclusion in the North Carolina Environmental Policy Act shall include the environmental assessment of the project's probable impacts on the environment that was submitted to the Department of Environment and Natural Resources. If the Department notifies the Rural Center that an environmental impact statement is required, the Rural Center shall not award the applicant a grant until a final environmental impact statement has been completed and approved as provided in the Environmental Policy Act.
SECTION 1.(i) Review of Applications and Award of Grant. The Rural Center shall review grant applications and award grants as provided by this subsection:
(1) Point assignment. The Rural Center shall review all grant applications submitted under this section for an application period, to be determined by the Rural Center, and shall rank each application in accordance with the points assigned to the evaluation criteria. Applications addressing a crisis need may be ranked according to a special set of criteria or be reviewed for a specifically determined application period. The Rural Center shall make a written determination of an application's rank and attach the determination to the application. The Rural Center's determination of rank is conclusive.
(2) Reconsideration. When an application's rank is too low to receive an award of a grant for the application period, the Rural Center may reconsider an amended application, provided the application addresses questions from the previous grant round. The Rural Center may reject any amended application that does not adequately address questions from the previous grant round. The Rural Center's determination of adequacy is conclusive.
(3) Notification of decision. When the Rural Center determines that an application's rank makes it eligible for an award of a grant, the Rural Center shall send the applicant a letter of intent to award the grant. The notice shall set out any conditions the applicant must meet to receive an award of a grant. When the applicant satisfies the conditions set out in the letter of intent, the Rural Center shall send the applicant an offer to award a grant. The applicant shall give the Rural Center written notice of whether it accepts or rejects the offer. A grant is considered awarded the date the offer to award the grant is sent by the Rural Center.
SECTION 1.(j) Disbursement of Grant. A planning grant awarded under this section shall be disbursed in not more than two payments. Other grants awarded under this section shall be disbursed in two or more payments based on the progress of the project for which the grant was awarded. To obtain a payment, a grant recipient shall submit a request for payment to the Rural Center and shall document the expenditures for which the payment is requested. The Rural Center shall review the payment request for compliance with all grant conditions.
SECTION 1.(k) Withdrawal of Grant. An award for a supplemental grant for a project is withdrawn if the applicant fails to enter into a construction contract for the project within one year after the date of the award for supplemental grants under subsection (e) of this section unless the Board of Directors of the Rural Center finds that the applicant has good cause for the failure. If the Rural Center finds good cause for an applicant's failure, the Rural Center shall set a date by which the applicant must take action or forfeit the grant. Planning grants may be withdrawn if there is insufficient progress in meeting the scope of work within one year of the award date.
SECTION 1.(l) Inspection of Project. The Rural Center may inspect a project as provided by this subsection:
(1) Authority. The Rural Center may inspect a project for which it awards a grant under this section to determine the progress made on the project and whether the construction of the project is consistent with the project described in the grant application. The inspection may be performed by personnel of the Rural Center or by a professional engineer licensed under Chapter 89C of the General Statutes.
(2) Disqualification. An individual may not perform an inspection of a project under this section if the individual meets any of the following criteria:
a. Is an officer or employee of the local government unit that received the grant award for the project.
b. Is an owner, officer, employee, or agent of a contractor or subcontractor engaged in the construction of the project for which the grant was made.
SECTION 1.(m) Administration Costs. The Rural Center may use a portion of the funds appropriated under this section for administration, not to exceed two percent (2%), for the life of the grant program created by this section.
SECTION 1.(n) Reporting Requirement. The Rural Center shall report to the Joint Legislative Commission on Governmental Operations on a semiannual basis concerning the progress of the grant program created under this section. The first report is due no later than January 15, 2010.
SECTION 1.(o) Separate Accounts. Each grant that is provided under this section shall be administered through a separate account.
SECTION 1.(p) Loans Prohibited. The Rural Center shall not use the funds appropriated under this section to make loans.
SECTION 2. This act becomes effective July 1, 2009.