Wyo. Code R. 060-0003-11
Loan and Investment Board
Chapter 11: Clean Water State Revolving Fund Loans
Effective Date: 03/03/2021 to 12/12/2023
Rule Type: Superceded Rules & Regulations
Reference Number: 060.0003.11.03032021
This Chapter is adopted pursuant to Wyoming Statute 16-1-203(a).
In addition to the definitions in Chapter 1, as used in this Chapter:
(l) 'State Environmental Review Process (SERP)' means the review conducted by DEQ, pursuant to W.S. 16-1-204(a), of potential environmental impacts of projects receiving assistance from the Account.
(m) 'Substantial Completion' means that stage in a project when the capital infrastructure constructed is capable of initiating operations or can be used for its intended purpose.
(n) 'USEPA' means the United States Environmental Protection Agency.
(a) The Board shall approve loans and Additional Subsidies under the provisions of this Chapter in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the State of Wyoming and represent a prudent use of loan funds.
(a) Notice. OSLI and DEQ will assess, at least annually, the impacts of state and federal legislation on the Clean Water State Revolving Fund loan program administered under this Chapter. OSLI will provide timely notice to eligible applicants of changes in Additional Subsidies and Special Program requirements. Said notice will be not less than thirty (30) calendar days prior to any application deadline. Methods of notice include, but are not limited to, electronic, telephonic, written, website postings, video conferences or combinations of the same.
(a) Applicants. Municipalities, counties, state agencies, special districts, and joint powers boards in Wyoming shall be eligible applicants for loans and Additional Subsidies under this Chapter.
(b) Additional Subsidies. Additional Subsidies shall be awarded in the form of Principal Forgiveness and Green Project Reserve loans. The Additional Subsidies will be awarded in accordance with all federal regulations. OSLI will award points based on population trend, income data, and unemployment data to determine the amount of principal forgiveness an applicant is eligible to receive. Applicants whose total points are six (6) or greater are eligible for principal forgiveness of up to seventy-five percent (75%) of their loan amount. Applicants whose total points are between four (4) and five (5) are eligible for principal forgiveness of up to fifty percent (50%) of their loan amount. Applicants whose total points are between two (2) and three (3) are eligible for principal forgiveness of up to twenty-five percent (25%) of their loan amount. Applicants whose total points are less than two (2) are not eligible for principal forgiveness.
(i) Population trend points are awarded based on the category that the applicant was in as of the last decennial census (or other available population data acceptable to
OSLI if decennial census data is not available). If an applicant can show population trend data demonstrating that it has likely dropped to a smaller category since the last decennial census, its points will be adjusted up accordingly.
(A) Applicants whose population is five hundred (500) or less will receive three (3) points.
(B) Applicants whose population is between five hundred one (501) and three thousand, three hundred (3,300) will receive two (2) points.
(C) Applicants whose population is between three thousand, three hundred one (3,301) and ten thousand (10,000) will receive one (1) point.
(D) Applicants whose population is ten thousand, one (10,001) or greater will receive zero (0) points.
(ii) Income data points are awarded based on ratio of the local annual median household income (AMHI) to the State AMHI, using data from the most recently released American Community Survey 5-year estimates. If no data directly corresponding to the applicant is available, the county AMHI will be used as the default. The applicant may provide alternate data acceptable to OSLI, such as an income survey, at the applicant’s expense and in lieu of American Community Survey 5-year estimates.
(A) Applicants whose AMHI is less than sixty percent (60%) will receive five (5) points.
(B) Applicants whose AMHI is sixty percent (60%) or greater, but less than seventy percent (70%) will receive four (4) points.
(C) Applicants whose AMHI is seventy percent (70%) or greater, but less than eighty percent (80%) will receive three (3) points.
(D) Applicants whose AMHI is eighty percent (80%) or greater, but less than ninety percent (90%) will receive two (2) points.
(E) Applicants whose AMHI is ninety percent (90%) or greater, but less than one hundred ten percent (110%) will receive one (1) point.
(F) Applicants whose AMHI is one hundred ten percent (110%) or greater will receive zero (0) points.
(iii) Unemployment data points are awarded based on relationship of the local unemployment rate to the State unemployment rate. Local and State unemployment rates for the most recent quarter by county as published by the Wyoming Department of Workforce Services will be used.
(A) Applicants whose unemployment rate is equal to or greater than the State rate will receive one (1) point.
(B) Applicants whose unemployment rate is less than the State rate will receive zero (0) points
(vi) Principal Forgiveness Contingency. Receipt of Principal Forgiveness is contingent on the applicant completing a first loan draw within eighteen (18) months of the effective date of the loan agreement and continuing to make loan draws at least quarterly until the project is complete. Failure of the applicant to comply with these terms shall result in the awarded Principal Forgiveness being forfeited. A request for an extension may be submitted to OSLI if additional time is necessary.
(v) The amount of Green Project Reserve funding will be determined by DEQ based on the project information provided and the requirements of the state and federal regulations.
(c) AMHI data is based on information obtained from the most recent American Community Survey of the U.S. Census Bureau. Median household income data for special districts must be established by an income survey at district expense or other financial data acceptable to OSLI and the Board. If the applicant is a special district or a joint powers board, it must be legally formed and approved prior to submitting its loan application. Applicants must be in compliance with all applicable reporting requirements of both the Wyoming Department of Revenue and the Wyoming Department of Audit prior to its application being considered by the Board. For consideration at the October Board meeting, applicants must file their current financial reports by September 10th with the Department of Audit and notify the OSLI in writing that the filing was done.
(d) Purposes. Loans and Additional Subsidies may be awarded by the Board pursuant to W.S. 16-1-205(a). The Board may authorize loans to refinance existing debt incurred completing an eligible project. The Board may also award loans and Additional Subsidies consistent with changes in state or federal law. Refinancing existing debt obligations for which debt was incurred and building began after March 7, 1985.
(e) Project Eligibility. Only projects on the current Clean Water State Revolving Fund Intended Use Plan are eligible for loans and Additional Subsidies under this Chapter. Eligible applicants are responsible for ensuring that their project(s) are listed on the current Clean Water State Revolving Fund Intended Use Plan.
(f) Ineligible Project Costs. The following project costs shall be ineligible for reimbursement:
(i) Costs for any asset that is owned by a private property owner;
(ii) Costs for tap fees, sewer and water fees, and plant investment fees;
(iii) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of Board approved project costs;
(iv) All non-cash costs except land which is integral to the treatment process and if allowable under federal law but not costs for land in excess of current fair market value and/or costs for an amount of land in excess of that needed for project purposes;
(v) Costs for preparation or presentation of grant or loan applications for any source of funding;
(vi) Costs for transportation, meals, and lodging, and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rate;
(vii) Costs of tools, supplies and furnishings for capital projects not included in DEQ approved construction contract documents, including but not limited to, capital equipment, hammers, tools, furniture, drapes, blinds, file cabinets, file folders, and survey stakes;
(viii) Legal fees, except as pre-approved by DEQ and OSLI;
(ix) Costs related to the issuance of bonds;
(x) Costs of elections;
(xi) Costs to establish and form special districts or joint powers boards;
(xii) Costs incurred prior to loan award, except costs incurred for architectural and engineering design, surveying, state environmental review process (SERP) requirements or in emergency circumstances;
(xiii) Costs for change orders not approved by DEQ and OSLI;
(xiv) Lump sum contracts unless approved by DEQ and OSLI;
(xv) Costs in excess of $50.00, unless approved by DEQ and OSLI, based on an invoice(s) or additional documentation submitted by applicant;
(xvi) Costs associated with the applicant's own employees and equipment, unless pre-approved by DEQ;
(xvii) Markups by engineers/architects of sub-consultant and other outside charges;
(xviii) Projects undertaken using alternate design and construction delivery methods under W.S. 16-6-701, unless pre-approved by DEQ.
(a) Applications. Separate applications shall be prepared for each project. Applicants shall submit a complete application on a form provided by OSLI.
(b) Public Meeting Requirement. All eligible applicants must hold a minimum of one public meeting in advance of submitting a loan application for Board consideration. Notice of the public meeting is to be published in a local or regional newspaper fifteen (15) days prior to the same. The public meeting must provide the public an overview of the proposed project, financing and sustainability. The overview aspect of the public meeting must, at a minimum, address project scope, milestones and costs. The financing aspect of the public meeting must, at a minimum, address the financial impact of project costs upon the public. The sustainability aspect of the public meeting must, at a minimum, address the revenue streams, adjustments of water and sewer rates or other sources required to sustain the proposed project. Eligible applicants must verify compliance with the public meeting requirement through documentation submitted with their loan applications.
(c) Timing of Board Consideration. Loan applications must be received by the Director at least one hundred twenty (120) calendar days prior to any scheduled meeting of the Board. Applicants must cure any defects in their applications no later than forty-five (45) calendar days before any scheduled meeting of the Board. The Board may consider loan applications for loans under this Chapter at any scheduled meeting.
(d) Incomplete Loan Applications. Incomplete loan applications, those missing one or more of the information items requested and/or failing to meet established deadlines, shall not be presented to the Board for consideration.
(a) Criteria. The Board shall evaluate applications utilizing the following criteria:
(i) Whether the applicant is current on all its repayment obligations to the Board;
(ii) Whether the applicant's dedicated source of revenue is acceptable to the Board and will be sufficient to repay its requested loan;
(iii) Whether the applicant is ready to proceed with construction or implementation of the project;
(iv) Whether the applicant has established an adequate operations and maintenance costs fund for the project for which applicant seeks funding;
(v) Whether the applicant has made a significant commitment of funding resources for the project for which it seeks funding;
(vi) The percentage of the applicant's population directly served by the project;
(vii) The project's priority rank on the current intended use plan (IUP); and
(viii) Whether the project is appropriately sized for the population to be served by the project.
(ix) If assessments are included as part of the dedicated source of repayment, applicant shall establish an annual assessment equal to, or greater than, the amount of the annual debt service payment on the loan. This assessment schedule will be filed with the County Assessor's Office on or before February 15th of each year for the full term of the loan, a copy of which will be sent to the OSLI annually.
(b) Interagency Consultation. The OSLI shall facilitate interagency consultation with DEQ through the review of applications for loans and Additional Subsidies and the opportunity to provide comments to the Director for Board consideration. The Board shall request the DEQ to provide the services required under W.S. 16-1-201 through W.S. 16-1-207.
(a) The Board shall consider each application, and allow for comments from the applicant and from the Director. The Board shall also establish loan amounts and terms. Loan terms shall not exceed thirty (30) years, or the useful life of the project, whichever is less.
(a) The interest rate to the DEQ for corrective actions at leaking underground and aboveground storage tank sites shall be established by the Board pursuant to Chapter 14 of these rules.
(b) The interest rate for eligible applicants that qualify for Additional Subsidies, when available, shall be established by the Board pursuant to Chapter 14 of these rules.
(c) The interest rate for all other Clean Water State Revolving Fund loans shall be pursuant to Chapter 14 of these rules.
(d) The interest rate for emergency projects shall be set by the Board pursuant to Chapter 14 of these rules.
(a) Annual payments for all loans shall begin one year after substantial completion of the project as indicated in the final project contract. Annual payments for loans used to refinance existing debt shall begin no later than one (1) year after loan approval.
(a) Requests for disbursements shall be submitted on a form provided by the Director and include supporting invoices establishing the eligibility of costs submitted for disbursements. Loan proceeds will only be disbursed for eligible project costs as set forth in this Chapter and within federal guidelines following review by the OSLI and DEQ.
(a) The Board shall ensure compliance with the provisions of the Single Audit Act and Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. On an annual basis records of loan recipients shall be, at a minimum, compiled by an independent accounting firm. Notification of compliance shall be made to the Board in the form of a Compilation, Review, or Audited Financial Statement prepared by an independent accounting firm. The Board may, at its expense, conduct an independent audit of the loan recipient's records and inspect the construction and operation of the project. Loan recipients shall maintain project accounts in accordance with Generally Accepted Government Accounting Standards (GAGAS).
(b) The Board may, at its expense, conduct an independent audit of the loan recipient's records and inspect the construction and operation of the project. Loan recipients shall maintain project accounts in accordance with Generally Accepted Government Accounting Standards (GAGAS). Loan recipients shall assist and provide any information required by the auditors.
(a) The Director, or the Director's designee, shall review all reports prepared by the OSLI and DEQ for submission to the USEPA.
(a) The Board shall administer the water pollution control revolving loan account program in accordance with all applicable federal laws and regulations. The Board shall enter into, and periodically update, a Memorandum of Understanding with the OSLI and DEQ to implement the program and facilitate program compliance.
(a) A loan origination fee of one-half of one percent (0.5%) of the amount of the loan will be collected at loan closing. The fees will be deposited to the Administrative Account as authorized by W.S. 16-1-205(d).