Lands and Investments, Office of

Loan and Investment Board

Chapter 42: Local Government Project ARPA Grants

Effective Date: 12/09/2022 to Current

Rule Type: Current Rules & Regulations

Reference Number: 060.0003.42.12092022

Chapter 42

Local Government Project ARPA Grants

Section 1. Authority. This Chapter is adopted pursuant to 2022 Wyo. Sess. Laws Chapter 50, § 2 footnote 17; § 3(d).

Section 2. Definitions. In addition to the definitions in Chapter 1, as used in this Chapter:

1. (a) “ARPA” means the federal American Rescue Plan Pub. L. 117–2.
2. (b) “Business Days” means Monday through Friday, except for federal or state holidays.
3. (c) “Capital Project” means any project that includes the alteration, construction, demolition, enlargement, improvement, maintenance, reconstruction, remodel, renovation, or repair of any new or existing infrastructure, except that “Capital Project” shall not include Water Projects.
4. (d) “COVID-19” means as defined in W.S. § 1-1-141(a)(ii).
5. (e) “Final Rule” means the Treasury’s regulations governing the Coronavirus State and Local Fiscal Recovery Funds, 87 Fed. Reg. 4338–4454 (Jan. 27, 2022) (codified at 31 C.F.R. pt. 35).
6. (f) “Fund” means fifty million dollars ($50,000,000.00) appropriated to the Board for Local Government Support Projects by 2022 Wyo. Sess. Laws Ch. 50, § 2 footnote 17 from the State and Local Fiscal Recovery Fund.
7. (g) “Incurred.” A cost has been “incurred” when the recipient has incurred an obligation with respect to such cost.
8. (h) “Non-Capital Project” means a project that is not a Capital Project or a Water Project.
9. (i) “Tribal Councils” means the Northern Arapaho Business Council and Eastern Shoshone Business Council on the Wind River Reservation. The term “Tribal Councils” does not include businesses, not-for-profit organizations, or any other entity owned or operated by the Tribes or tribal members.
10. (j) “Water Project” means any water or wastewater project eligible for ARPA funding under 31 C.F.R. § 35.6(e)(1).

Section 3. General Policy. The Board shall award grants under the provisions of this Chapter in accordance with ARPA and 2022 Wyo. Sess. Laws Chapter 50 and 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 and represent a prudent use of the Fund.

Section 4. Eligible applicants.

1. (a) Eligible entities. Cities, towns, counties, and Tribal Councils shall be eligible to apply for grants under this Chapter. Businesses owned in whole or in part by the Tribal Councils shall not be eligible applicants.
2. (b) Entities eligible under Subsection (a) of this Section that are members of a Joint Powers Board may submit applications for projects to improve assets of the Joint Powers Board.
3. (c) To be eligible for a grant under this Chapter:
4. (i) An applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered by the Board;
5. (ii) For capital projects, the applicant must own the project or be a member of

a Joint Powers Board that owns the project.

Section 5. ARPA Eligibility Justification. All projects under this Chapter must be eligible for funding under ARPA and the Final Rule.

(a) Each application shall contain a justification explaining how the project is eligible under ARPA for funding.

(i) Applications for Capital Projects shall include the Capital Project justification described in Subsection (b) of this Section.

(ii) Applications for Non-Capital Projects shall include the Non-Capital Project justification described in Subsection (c) of this Section.

(iii) Applications for Water Projects shall include the Water Project justification described in Subsection (d) of this Section.

(iv) If an applicant is unsure of the classification of its proposed project is, it shall submit a written request for determination to the Office. Upon receipt of such request, the Office shall provide a binding determination of which justification is required.

(v) If an applicant submits the wrong category of justification, the Office shall notify the applicant in writing and the applicant shall have until the end of the relevant application period, as set forth in § 6(b) of this Chapter, to submit the proper justification. In no event shall the application deadline be extended because an applicant submitted the wrong justification.

(b) Justification for Capital Projects. For each proposed Capital Project, the application shall contain a written justification, which shall include:

(i) A detailed description of the identifiable harm caused or exacerbated by COVID-19 that the project is intended to address. This description shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the specified harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the specified harm, such as the number of individuals or entities affected, and establishing a link between the harm and COVID-19.

(ii) An independent assessment demonstrating why a Capital Project is appropriate to address the specified harm, which shall include:

(A) An explanation of why the applicant’s existing capital equipment, property, or facilities are inadequate to addressing the specified harm;

(B) A description of how the proposed project will address the identified harm;

(C) An explanation of why policy changes or additional funding to pertinent programs or services would be insufficient without the corresponding Capital Projects; and

(D) A description of why other possible non-capital interventions would be inefficient, costly, or otherwise not reasonably designed to remedy the specified harm without additional capital expenditure.

(iii) An objective comparison of the proposed Capital Project against alternative capital expenditures and demonstrate why their proposed Capital Project is superior to alternative capital expenditures that could be made. Applicants shall assess the proposed Capital Project against at least two alternative types or sizes of capital expenditures that are potentially effective and reasonably feasible. Where relevant, applicants shall compare the proposed project against the alternative of improving existing capital assets already owned or leasing other capital assets. Applicants shall use quantitative data when available. For each identified alternative, applicants shall provide:

(A) A comparison of the effectiveness of the Capital Projects in addressing the specified harm. This comparison shall consider the effectiveness of the Capital Projects in addressing the specified harm over the useful life of the capital asset and shall consider metrics such as the number of impacted or disproportionately impacted individuals or entities served, when such individuals or entities are estimated to be served, the relative time horizons of the project, and consideration of any uncertainties or risks involved with the Capital Project; and

(B) A comparison of the expected total cost of the Capital Projects. This comparison shall consider the expected total cost of the Capital Project required to construct, purchase, install, or improve the capital assets intended to address the specified harm. Applicants shall include pre-development costs in their analysis and shall provide an estimate of ongoing operational costs.

(c) Justification for Non-Capital Projects. Each application for a Non-Capital Project shall contain a justification explaining how the project is eligible, which shall include:

(i) A detailed description of the identifiable harm caused or exacerbated by the public health emergency that the project is intended to address. This description shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the specified harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the specified harm, such as the number of individuals or entities affected, and establishing a link between the harm and COVID-19.

(ii) A detailed description of how the project is a reasonable and proportional response to the identified harm. This description shall include:

(A) A description of how the project will address the identified harm, supported by any available quantitative information;

(B) A description of how the project is cost-effective and financially proportionate to the identified harm; and

(C) A description of how the project is superior to other means of addressing the identified harm.

(d) Justification for Water Projects. Each application for a Water Project shall contain a justification explaining:

(i) Why the project is necessary, including:

(A) An explanation of how the project is responsive to an identified need to achieve or maintain an adequate minimum level of service;

(B) An explanation of how the proposed capital expenditure will provide an adequate minimum level of service;

(C) An explanation of how the project is cost effective, which shall include a comparison of the proposed capital project against alternative capital expenditures and a demonstration of how the proposed capital expenditure is superior; and

(D) An explanation of how the project will be maintained over the useful life of the infrastructure; and

(ii) What other funding options the applicant has explored and why funding under this program is necessary.

Section 6. Application Procedure

(a) Applications. Separate applications shall be prepared for each individual project. Applicants shall submit applications in a manner prescribed by the Office. All applications shall be properly executed by the officers of the applicant.

(b) Timing. The Board may establish one (1) or more open application periods by providing notice to the public on the Office's website. The Board may modify an open application period at any time before the end of the application period. After the close of each application period, the Board shall designate a regular or special meeting to consider applications received during the application period and post notice of that meeting on the Office's website. Applications received by the Office after the close of the application period will not be considered at the designated Board meeting, but may be resubmitted during any later application period designated by the Board.

(c) Justification. Each application shall include the justification required by Section 5.

(d) Application Information. The following information shall be provided by all applicants:

(i) A complete application on a form provided by the Office;

(ii) The appropriate ARPA eligibility justification required by Section 5 of this Chapter.

(iii) A standard resolution authorizing the filing of the application on a form provided by the Office;

(iv) A certification statement attesting that the funds being requested will be used in accordance with all requirements and conditions of ARPA. If it is determined that the funds were not used as intended, they shall be paid back to the Office within fifteen (15) Business Day following notification.

(v) The amount of any CARES grants awarded by the State and any ARPA State and Local Fiscal Recovery Funds the applicant has received and a brief summary of how the funds were spent or how the applicant plans to spend the funds; and

(vi) Other applicable information as requested by the Office.

(e) Additional Information Required: If the funding request is for the purchase of a building or land, a market analysis must be completed to determine the fair-market value. Office staff shall review and approve the methodology used for valuation and the overall market value prior to grant funds being disbursed for reimbursement of related costs.

(f) Preliminary Review. The Office shall notify the applicant, in writing, if the application lacks any of the items required in sub-Sections (c) and (d) of this section. The applicant shall have five (5) Business Day to submit the required information.

(g) False or Misleading Statements.

(i) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(ii) Any requests made for reimbursement that are determined to be false or misleading and/or ultimately ineligible after the funds have been disbursed shall be paid back to the Office within fifteen (15) Business Days following notification.

(h) Incomplete Applications. Applications that are missing one or more of the information items requested and/or fail to meet established deadlines, shall not be presented to the Board for consideration.

(i) Summary Rejection. The Office shall summarily reject all applications that are clearly ineligible under this Chapter or ARPA.

Section 7. Ineligible Project Expenses.

(a) Ineligible Project Costs. The following is a non-exclusive list of project costs ineligible for reimbursement from the Funds:

1. (i) Revenue replacement;
2. (ii) Debt service and replenishments of rainy day funds;
3. (iii) Satisfaction of settlements and judgments;
4. (iv) Any use that disregards or violates federal conflicts of interest requirements, and other federal, state, and local laws and regulations;
5. (v) Damages covered by insurance;
6. (vi) Costs incurred prior to March 3, 2021;
7. (vii) Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency;
8. (viii) Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to ARPA;
9. (ix) Any expense that is ineligible under ARPA or the Final Rule;
10. (x) Reimbursement to donors for donated items or services;
11. (xi) Workforce bonuses not eligible under the Final Rule;
12. (xii) Severance pay;
13. (xiii) Prepayment on contracts;
14. (xiv) Costs for tap fees, sewer and water fees, and plant investment fees;
15. (xv) All non-cash costs;
16. (xvi) Costs for preparation or presentation of applications;
17. (xvii) 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;
18. (xviii) Costs related to issuance of bonds;
19. (xix) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;
20. (xx) Costs to establish and form special districts or joint powers boards;
21. (xxi) Costs for a contingency or extra work allowance in excess of 10% of estimated construction costs;
22. (xxii) Costs of elections;
23. (xxiii) Costs associated with the applicant's equipment; and
24. (xxiv) Markups by engineers/architects of sub-consultant and other outside charges.

(b) If the Office determines that any grant funds were expended for an ineligible purpose, the Office shall notify the grantee and the grantee shall have five (5) business days to refund the Office the full amount disbursed for the ineligible expenditure.

Section 8. Evaluation Criteria.

(a) The Board shall evaluate applications on a merit basis utilizing the following criteria:

1. (i) Whether the project is an appropriate use of the Fund and in compliance with ARPA;
2. (ii) The status of the project, with increased consideration for projects that are shovel ready;
3. (iii) The population to be served relative to the size of the request, with increased consideration for projects serving larger populations with less funding;
4. (iv) Whether alternative sources for funding are available, including the Board's other programs authorized under pursuant to 2022 Wyo. Sess. Laws Chapter 50;
5. (v) Whether the applicant received funding under previous COVID-19 relief programs administered by the Board;
6. (vi) How the applicant spent any direct ARPA funding it received;
7. (vii) If the applicant is a water or sewer project, whether there are other non-water or sewer projects that should be prioritized.

(b) To assist the Board in prioritizing among eligible projects, the Office shall compute a score for each project in accordance with this subsection. The Office shall calculate a score for each project based on:

1. (i) The population served by the proposed project;
2. (A) Applicants whose population is five hundred (500) or less shall receive three (3) points under this Paragraph.
3. (B) Applicants whose population is between five hundred one (501) and three thousand, three hundred (3,300) shall receive two (2) points under this Paragraph.
4. (C) Applicants whose population is between three thousand, three hundred one (3,301) and ten thousand (10,000) shall receive one (1) point under this Paragraph.
5. (D) Applicants whose population is greater than ten thousand (>10,000) shall receive zero (0) points under this Paragraph.
6. (ii) The average median household income (AMHI) in the area to be served by the proposed project compared to the state's AMHI:
7. (A) Applicants whose AMHI is less than sixty percent (60%) shall receive five (5) points under this Paragraph.
8. (B) Applicants whose AMHI is sixty percent (60%) or greater, but less than seventy percent (70%) shall receive four (4) points under this Paragraph.
9. (C) Applicants whose AMHI is seventy percent (70%) or greater, but less than eighty percent (80%) shall receive three (3) points under this Paragraph.
10. (D) Applicants whose AMHI is eighty percent (80%) or greater, but less than ninety percent (90%) shall receive two (2) points under this Paragraph.
11. (E) Applicants whose AMHI is ninety percent (90%) or greater, but less than one hundred ten percent (110%) shall receive one (1) point under this Paragraph.

(iii) Applicant's unemployment rate compared to the state's unemployment rate as of June 30, 2022:

(A) Applicant's whose unemployment rate is higher than the state's unemployment rate shall receive one (1) point under this Paragraph.

(B) Applicant's whose unemployment rate is equal to or lower than the state's unemployment rate shall receive zero (0) points under this Paragraph.

(iv) The amount of match funding being provided by the applicant:

(A) Applicants providing fifty percent (50%) or more in match funding shall receive five (5) points under this Paragraph.

(B) Applicants providing thirty-six percent (36%) to forty-nine (49%) in match funding shall receive four (4) points under this Paragraph.

(C) Applicants providing twenty-six percent (26%) to thirty-five percent (35%) in match funding shall receive three (3) points under this Paragraph.

(D) Applicants providing sixteen percent (16%) to twenty-five percent (25%) in match funding shall receive two (2) points under this Paragraph.

(E) Applicants providing fifteen percent (15%) to five percent (5%) in match funding shall receive one (1) point under this Paragraph.

(F) Applicants providing less than five percent (5%) in match funding shall receive zero (0) points under this Paragraph.

(v) Source of match funding:

(A) If the applicant's entire match is a loan or from the applicant's own funds, the applicant shall receive three (3) points under this Paragraph.

(B) If the applicant's match is partially funded by grant funding (including ARPA SLFRF the county, city or town received) or private donations for the specific project and partially funded by the applicant's own funds, the applicant shall receive two (2) points under this Paragraph.

(C) If the applicant's match is entirely grant or donation funded, the applicant shall receive one (1) point under this Paragraph.

(D) If the applicant is not providing a match, the applicant shall receive zero (0) points under this Paragraph.

(vi) The availability of other relief funding:

(A) Applicants that did not receive any CARES funding or direct ARPA funding shall receive three (3) points under this Paragraph.

(B) Applicants receiving other relief funding shall receive zero (0) points under this Paragraph.

(vii) Whether the proposed project eliminates noncompliance with regulations pertaining to the applicant's proposed project:

(A) If the proposed project shall eliminate existing noncompliance, applicant shall receive three (3) points under this Paragraph.

(B) If the proposed project will prevent noncompliance that is not currently existing, but is imminent or may be reasonably anticipated, the applicant shall receive two (2) points under this Paragraph.

(C) If the proposed project will not eliminate violations, applicant shall receive zero (0) points under this Paragraph.

(viii) Whether the proposed project promotes or achieves the regionalization of two (2) or more services, systems, or jurisdictions:

(A) If the proposed project does achieve regionalization, applicant shall receive three (3) points under this Paragraph.

(B) If the proposed project does not achieve regionalization, applicant shall receive zero (0) points under this Paragraph.

(ix) The status of the proposed project:

(A) Applications submitted for additional funding for a Capital Project currently in the construction phase shall receive three (3) points under this Paragraph.

(B) Applications submitted for funding for a Non-Capital Project with an anticipated start date in 2022, or a Capital Project that has been designed and is ready to bid shall receive two (2) points under this Paragraph.

(C) Applications seeking funding for a Capital Project that has not yet been designed or a Non-Capital Project with a start date on or later than January 2023 shall receive zero (0) points under this Paragraph.

(x) Whether the project is a Water Project or related to other eligible project categories:

(A) Applications for projects that are not Water Projects shall receive four (4) points under this Paragraph.

(B) Applications for Water Projects shall receive zero (0) points under this Paragraph.

(xi) Whether the applicant has a plan for completing the project if, for any reason, the awarded funds are not expended by the deadline for expending ARPA funds:

(A) Applicants who have a plan shall receive one (1) point under this Paragraph.

(B) Applicants who do not have a plan shall receive zero (0) points under this Paragraph.

(xii) Whether the proposed project promotes economic development:

(A) If the proposed project promotes economic development, applicants shall receive two (2) point under this Paragraph.

(B) If the proposed project does not promote economic development, applicants shall receive zero (0) points under this Paragraph.

(xiii) Whether the applicant has a formal maintenance policy and/or an asset management/capital improvement plan for which the asset funding is being requested:

(A) For applications to acquire assets, applicants with a formal maintenance policy and an asset management/capital improvement plan shall receive three (3) points under this Paragraph.

(B) For applications to acquire assets, applicants with a formal maintenance policy or an asset management/capital improvement plan shall receive two (2) points under this Paragraph.

(C) For applications to acquire assets, applicants with neither a formal maintenance policy nor an asset management/capital improvement plan shall receive zero (0) points under this Paragraph.

(xiv) Whether the applicant has a plan to sustain a non-capital program beyond the window for the use of ARPA funds:

(A) For applications that do not involve the purchase of assets, applicants with demonstrated revenue stream to continue the process beyond December 31, 2026 shall receive three (3) points under this Paragraph.

(B) For applications that do not involve the purchase of assets, applicants with a plan to develop a revenue stream to continue the process beyond December 31, 2026 shall receive one (1) points under this Paragraph.

(C) For applications that do not involve the purchase of assets, applicants without a plan to continue the process beyond December 31, 2026 shall receive zero (0) points under this Paragraph.

(xv) Whether the funding being requested is for a partnership project with other communities:

(A) If the proposed project for which funding is being request is a partnership project with other communities the applicant will receive two (2) points under this Paragraph.

(B) If the proposed project for which funding is being request is not a partnership project with other communities the applicant will receive zero (0) points under this Paragraph.

(xvi) The taxes imposed by the applicant:

(A) A county imposing at least eleven (11) or ninety-one and sixty-seven one-hundredths percent (91.67%) of the available mills authorized by Art. XV § 5 of the Wyoming Constitution, or imposing the optional sales tax authorized under W.S. 39-15-204(a)(i) or (iii) shall receive two (2) points under this Paragraph;

(B) A municipality imposing at least seven (7) or eighty-seven and five-tenths percent (87.5%) of the available mills authorized by Art. XV § 6 of the Wyoming Constitution shall receive two (2) points under this Paragraph;

(C) Applicants imposing the economic development tax authorized under W.S. § 39-15-204(a)(vi) shall receive an additional two (2) points under this Paragraph.

(D) Other counties and municipalities shall receive zero (0) points under this Paragraph.

Section 9. Board Consideration. The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant.

Section 10. Fund Disbursement and Administration.

(a) Fund Disbursement. Funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing. Requests shall be submitted for reimbursement no more frequently than once a month and not less than quarterly.

(b) Fund Reversion. Any grant funds that have not been obligated by October 1, 2024 shall be deemed rejected by the recipient and shall revert to the Office. All requests for reimbursement for eligible expenses must be received by the Office no later than October 1, 2026. Any unused portions of the grants awarded pursuant to this Chapter shall revert to the US Department of the Treasury on December 31, 2026 whether or not the project is completed and all eligible expenses have been requested for reimbursement.

Section 11. Reporting Requirements. Applicants shall comply with all federal and state reporting requirements.

Section 12. Audits and Inspections.

(a) The Board may, at its expense, conduct an audit of the records of the applicant.

(b) The applicant shall allow the Federal and/or state government to conduct an audit of the records related to the expenditure of moneys from the Fund.

(c) The applicant shall comply with the Single Audit Act. If seven hundred fifty thousand dollars ($750,000.00) or more is disbursed in any given year, an audit must be completed in accordance with 31 CRF Part 200, Subpart F.