Pursuant to § 68-221-502 of “The Waterworks Construction Loan Act of 1974” and within the scope of this Act, the following definitions will be used unless the context requires otherwise: “Act” shall mean “The Waterworks Construction Loan Act of 1974”, same being T.C.A §§ 68- 221-501 et seq. “Construction” means the erection, building, acquisition, alteration, reconstruction, improvement or extension of waterworks, preliminary planning to determine the economic and engineering feasibility of waterworks, the engineering, architectural, legal, fiscal and economic investigations and studies, surveys, designs, plans, working drawings, specifications, procedures, and other action necessary in the construction of waterworks, and the inspection and supervision of the construction of waterworks. “Construction Cost” shall mean the actual cost of construction of the eligible portions of any project for which a loan is made under the Act, including engineering, legal, fiscal, contingency costs, cost of real property, service connections, meters and meter installations, for water supply systems, or alterations to existing systems. No cost shall be eligible for recurring annual expenditures for administration, repairs, operation and maintenance of any water supply system. LOAN ACT “Department” means the Tennessee Department of Environment and Conservation. “Eligible Project” means a project for the construction of waterworks for which approval is required under T.C.A §§ 68-221-501 et seq., which conforms with the applicable rules and regulations of the department, and which in the judgment of the department is economically feasible. “Law” includes any act or statute, general, special, or local, and the charter of any incorporated town or city or metropolitan government of this state. “Municipality” means any county, metropolitan government, incorporated town or city, or special district of this state empowered to provide water services, or any combination of two

1. (2) or more of the foregoing acting jointly, in connection with an eligible project. “Regional Water Supply System” shall mean a municipality that has the capability to provide water service to an area, either by extension of water service into an area outside its own boundaries or the boundaries of another municipality, or by the acquisition of an existing system, and is permitted, by law, to serve the area; and will make a commitment satisfactory to the Department to extend such services; will minimize the cost of integration with other system(s) where proximity of such system(s) indicate the integration is or may become economically feasible; and the system is administered by a common management. “Waterworks” shall be constructed to include all or any part of the following: source of supply, pumping facilities, purification works, collection and storage facilities and distribution system for water, together with all necessary parts and appurtenances for proper operation.

Authority: T.C.A. §§ 68-221-501 et seq. and 4-5-201 et seq. Administrative History: Original rule filed October 16, 2012; effective January 14, 2013. Rule renumbered from 1200-05-04.