1. (1) This chapter implements section 373.475, F.S., and provides procedures and criteria for making loans to water supply entities for the development and construction of water storage facilities to increase the availability of sufficient water for all existing and future reasonable-beneficial uses and natural systems.
2. (2) Loan amounts for up to 75 percent of the costs of planning, designing, constructing, upgrading, or replacing water resource infrastructure or facilities, whether natural or man-made, including the acquisition of real property for water storage facilities may be awarded. Loans shall be a minimum of $75,000.
3. (3) The Department shall solicit proposals at least once a year, in years which funding is appropriated by the legislature for water storage facility projects to receive loan funding under this chapter. Any solicitation for proposals by the Department shall specify the weight to be given to the criteria set forth in subsection 62-554.300(2), F.A.C., for purposes of ranking proposals that are received by the Department. In years in which funding is available, projects will be awarded funding in order of rank until the appropriated funds are exhausted.
4. (4) If the Department is soliciting proposals for projects, an interested applicant may apply for loan funding under this chapter for activities identified in paragraph 373.475(3)(a), F.S., by submitting Water Storage Facility Loan Program Request for Funding, Form 1, effective 7-19-18, hereby adopted and incorporated by reference. Copies of the form may be obtained by writing to the Florida Department of Environmental Protection, Drinking Water State Revolving Fund, 3900 Commonwealth Boulevard, Mail Station 3505, Tallahassee, Florida 32399 or the form can be obtained at HYPERLINK "http://www.flrules.org/Gateway/reference.asp?No=Ref-09536" http://www.flrules.org/Gateway/reference.asp?No=Ref-09536.
5. (5) The Department shall perform an environmental review for each project to be funded in accordance with rule 62-552.680, F.A.C.

6. (6) The project sponsor shall submit the following:

   1. (a) Evidence of the permittability or implementability of the facility proposed for financial assistance.
   2. (b) Evidence that the purpose of the water storage facility proposed for financial assistance is consistent with the applicable water supply plan.
   3. (c) The public participation process used to explain the project and the financial impacts to the public.

   4. (d) Financial feasibility information addressing the following:

      1. The sources and amounts of revenues to be dedicated to repaying the loan and the expenses, charges, and liens against or to be paid from such dedicated funds or revenues. The information shall demonstrate the ability to repay the loan with a margin of safety, which includes the following:

      a. Pledged revenue coverage ratio of at least 1.15 for projects sponsored by a local governmental agency;

      b. A current term debt and capital lease coverage ratio of at least 1.15, as explained in subsection 62.554.300(7), F.A.C., for projects sponsored by other than a local governmental agency; or

      c. Other equivalent means of providing a margin of safety, as approved by the Department.

      2. Capital improvements that will be financed from the same funds or revenues dedicated to repaying the loan.

      3. The proposed system of charges, rates, fees, and other collections that will generate the revenues to be dedicated to loan repayment. The rate structure of the revenue generation system shall be approved at least six months before the first loan repayment is due or before the project closeout, whichever occurs first. The rate structure shall be implemented in a timely manner to ensure the generation of sufficient revenues dedicated to loan repayment and may be implemented in phases to the extent timely and sufficient revenue generation will be accomplished. The revenue generation system shall be revised, as necessary, to satisfy the pledged revenue requirements of the loan.

7. (7) Procurement. Procurement of goods and services by loan recipients under this loan program must be in conformance with the applicable provisions of chapter 287, F.S. When procuring property and services under a Department loan, a project sponsor shall follow the policies and procedures it uses for procurements from its non-Department funds provided that the procurement conforms to applicable state and local laws and regulations.

Rulemaking Authority 373.475 FS. Law Implemented 373.475 FS. History–New 7-19-18.