GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 186
The General Assembly of North Carolina enacts:
Section 1. G.S. 159G-3 reads as rewritten:
"§ 159G-3. Definitions.
As used in this Chapter, the following words shall have the meanings indicated, unless the context clearly requires otherwise:
(1) 'Administrative
Account' means the Administrative Account in the Clean Water Revolving Loan and
Grant Fund established in the Office of State Budget and Management under the
provisions of this Chapter to cover administrative costs of the program.
(2) 'Applicant' means a local government unit that applies for a revolving loan or grant under the provisions of this Chapter. In addition, a local government may provide funds to a nonprofit agency which is currently under contract and authorized to provide wastewater treatment or water supply services to that unit of local government.
(3) 'Clean Water Revolving
Loan and Grant Fund' means the fund established in the Office of State
Budget and Management Department of Environment, Health, and Natural Resources
to carry out the provisions of this Chapter, with various accounts therein
as herein provided.
(4) 'Construction costs' means the actual costs of planning, designing and constructing any project for which a revolving loan or grant is made under this Chapter including planning; environmental assessment; wastewater system analysis, evaluation and rehabilitation; engineering; legal, fiscal, administrative and contingency costs for water supply systems, wastewater collection systems, wastewater treatment works and any extensions, improvements, remodeling, additions, or alterations to existing systems. Construction costs may include excess or reserve capacity costs, attributable to no more than 20-year projected domestic growth, plus ten percent (10%) unspecified industrial growth. In addition, construction costs shall include any fees payable to the Environmental Management Commission or the Division of Environmental Health for review of applications and grant of permits, and fees for inspections under G.S. 159G-14. Construction costs may also include the costs for purchase or acquisition of real property.
(5) 'Grant' means a sum of money given by the State to a local government unit to subsidize the construction costs of a project authorized by this Chapter, without any obligation on the part of such unit to repay such sum.
(6) 'Commission for Health Services' means the Commission for Health Services created by G.S. 130A-29.
(6a) 'Debt instrument' means an instrument in the nature of a promissory note executed by a local government unit under the provisions of this Chapter, to evidence a debt to the State and obligation to repay the principal, plus interest, under stated terms.
(7) 'Division of Environmental Health' means the Division of Environmental Health of the Department of Environment, Health, and Natural Resources.
(8) 'Environmental Management Commission' means the Environmental Management Commission of the Department of Environment, Health, and Natural Resources.
(9) 'Local Government Commission' means the Local Government Commission of the Department of the State Treasurer, established by Article 2 of Chapter 159 of the General Statutes.
(10) 'Local government unit' means a county, city, town, incorporated village, sanitary district, metropolitan sewerage district, metropolitan water district, county water and sewer district, water and sewer authority or joint agency created pursuant to Part 1 of Article 20 of Chapter 160A of the General Statutes.
(11) 'Office of State Budget
and Management' means the Office of State Budget and Management established by
law.
(12) 'Receiving agency' means the Division of Environmental Health with respect to receipt of applications for revolving loans and grants for water supply systems, and the Environmental Management Commission and the Division of Environmental Management with respect to receipt of applications for revolving loans and grants for wastewater systems.
(13) 'Revolving construction loan' means a sum of money loaned by the State to a local government unit to subsidize the construction costs of a project authorized by this Chapter, with an obligation on the part of such unit to repay such sum, the proceeds of such repayment to be deposited in the Water Pollution Control Revolving Fund.
(14) 'Revolving emergency loan' means a sum of money loaned by the State to a local government unit upon a certification, as provided in this Chapter, of a serious public health hazard, with an obligation on the part of such unit to repay such sum.
(15) 'Revolving loan' includes a revolving construction loan and an emergency loan.
(15a) 'State' means the State of North Carolina.
(15b) 'State Treasurer' means the Treasurer of the State elected pursuant to Article III, Section 7 of the Constitution or his designated representative.
(16) 'Wastewater Accounts' means the
various accounts in the Clean Water Revolving Loan and Grant Fund established
in the Office of State Budget and Management Department of
Environment, Health, and Natural Resources under this Chapter for revolving
loans and grants for wastewater treatment work and wastewater collection system
projects.
(17) 'Wastewater collection system' means a unified system of pipes, conduits, pumping stations, force mains, and appurtenances other than interceptor sewers, for collecting and transmitting water-carried human wastes and other wastewater from residences, industrial establishments or any other buildings, and owned by a local government unit.
(18) 'Wastewater treatment works' means the various facilities and devices used in the treatment of sewage, industrial waste or other wastes of a liquid nature, including the necessary interceptor sewers, outfall sewers, phosphorous removal equipment, pumping, power and other equipment and their appurtenances.
(19) 'Water Supply Accounts' means the
various accounts in the Clean Water Revolving Loan and Grant Fund established
in the Office of State Budget and Management Department of Environment,
Health, and Natural Resources under this Chapter for revolving loans and
grants for water supply system projects.
(20) 'Water supply system' means a public water supply system consisting of facilities and works for supplying, treating and distributing potable water including, but not limited to, impoundments, reservoirs, wells, intakes, water filtration plants and other treatment facilities, tanks and other storage facilities, transmission mains, distribution piping, pipes connecting the system to other public water supply systems, pumping equipment and all other necessary appurtenances, equipment and structures."
Sec. 2. G.S. 159G-4 reads as rewritten:
"§ 159G-4. Appropriations.
(a) Of the funds appropriated to the Clean Water Revolving Loan and Grant Fund, the amount required in each fiscal year to provide the State match of any federal funds deposited into the Water Pollution Control Revolving Fund shall be allocated to that fund.
(b) Of the appropriations
made from the General Fund to the Clean Water Revolving Loan and Grant Fund for
use of the Office of State Budget and Management Department of
Environment, Health, and Natural Resources as provided in this Chapter,
allocations are made as follows after first subtracting the amounts allocated
under subsection (a) of this section, to the extent that there are any excess
funds available:
Wastewater Accounts
General Wastewater Revolving Loan Account 45.00%
Emergency Wastewater Revolving Loan Account 14.00%
High-Unit Cost Wastewater Account 10.00%
Water Supply Accounts
General Water Supply Revolving Loan Account 23.00%
High-Unit Cost Water Supply Account 3.00%
Emergency Water Supply Revolving Loan Account 5.00%
(c) All payments of
interest and repayments of principal resulting from revolving loans shall be
credited to the respective accounts from which the revolving loan funds were
disbursed. Terms and conditions for repayment of revolving loans shall be
established by the Office of State Budget and Management, Department
of Environment, Health, and Natural Resources, with the assistance of the
Local Government Commission, consistent with the requirements of the Federal
Water Pollution Control Act and this Chapter. Provided, the interest rate
for all revolving loans authorized by this Chapter shall be fixed at the same
percent per annum as the interest rate fixed under the Federal Water Pollution
Control Act for loans from the Water Pollution Control Revolving Fund
established by G.S. 159G-5(c), not to exceed the lesser of four percent (4%) or
one-half the prevailing national market rate for tax exempt general obligation
debt of similar maturities derived from a published indicator. Provided
further, the interest rate may be fixed at a lower rate per annum if authorized
by the Federal Water Pollution Control Act Regulations. It is the intent
of the General Assembly to provide uniform interest payments for all loans made
to units of local government irrespective of the account from which loans are
made for either wastewater or water supply projects."
Sec. 3. G.S. 159G-5(a) reads as rewritten:
"§ 159G-5. Clean Water Revolving Loan and Grant Fund.
(a) There is established
in the Office of State Budget and Management Department of
Environment, Health, and Natural Resources a fund to be known as the Clean
Water Revolving Loan and Grant Fund, Fund. The Fund is to
be administered by the Office of State Budget and Management, Department
of Environment, Health, and Natural Resources which shall be responsible
for receipt and disbursement of all moneys as appropriated and provided for in
this Chapter."
Sec. 4. G.S. 159G-6 reads as rewritten:
"§ 159G-6. Distribution of funds.
(a) Revolving loans and grants.
(1) All funds appropriated or accruing to the Clean Water Revolving Loan and Grant Fund, other than funds set aside for administrative expenses, shall be used for revolving loans and grants to local government units for construction costs of wastewater treatment works, wastewater collection systems and water supply systems and other assistance as provided in this Chapter.
(2) The maximum principal amount of a revolving loan or a grant may be one hundred percent (100%) of the nonfederal share of the construction costs of any eligible project. The maximum principal amount of revolving loans made to any one local government unit during any fiscal year shall be three million dollars ($3,000,000). The maximum principal amount of grants made to any one local government unit during any fiscal year shall be five hundred thousand dollars ($500,000).
(3) The State Treasurer
shall be responsible for investing and distributing all funds appropriated or
accruing to the Clean Water Revolving Loan and Grant Fund for revolving loans
and grants under this Chapter. In fulfilling his responsibilities under
this section, the State Treasurer shall make a written request to the Office
of State Budget and Management Department of Environment, Health, and
Natural Resources to arrange for the appropriated funds to be (i)
transferred from the appropriate accounts to a local government unit to provide
funds for one or more revolving loans or grants or (ii) invested as authorized
by this Chapter with the interest on and the principal of such investments to
be transferred to the local government unit to provide funds for one or more
revolving loans or grants.
(b) Wastewater Accounts. -
The sums allocated in G.S. 159G-4 and accruing to the various Wastewater
Accounts in each fiscal year shall be used to make revolving loans and grants
to local government units as provided below. The Office of State
Budget and Management Department of Environment, Health, and Natural
Resources shall disburse no funds from the Wastewater Accounts except upon
receipt of written approval of the disbursement from the Environmental
Management Commission.
(1) General Wastewater Revolving Loan and Grant Account. - The funds in the General Wastewater Revolving Loan and Grant Account shall be used exclusively for the purpose of providing for revolving construction loans or grants in connection with approved wastewater treatment work or wastewater collection system projects.
(2) High-Unit Cost Wastewater Account. - The funds in the High-Unit Cost Wastewater Account shall be available for grants to applicants for high-unit cost wastewater projects. Eligibility of an applicant for such a grant shall be determined by comparing estimated average household user fees for water and sewer service, for debt service and operation and maintenance costs, to one and one-half percent (1.5%) of the median household income in the county in which the project is located. The projects which would require estimated average household water and sewer user fees greater than one and one-half percent (1.5%) of the median household income are defined as high-unit cost wastewater projects and will be eligible for a grant equal to the excess cost, subject to the limitations in subsection (a)(2) of this section.
(3) Emergency Wastewater Revolving Loan Account. - The funds in the Emergency Wastewater Revolving Loan Account shall be available for revolving emergency loans to applicants in the event the Environmental Management Commission certifies that a serious public health hazard, related to the inadequacy of existing wastewater facilities, is present or imminent in a community.
(c) Water Supply
Accounts. - The sums allocated in G.S. 159G-4 and accruing to the various Water
Supply Accounts in each fiscal year shall be used to provide revolving loans
and grants to local government units as provided below. The Office of
State Budget and Management Department of Environment, Health, and
Natural Resources shall disburse no funds from the Water Supply Accounts
except upon receipt of written approval of the disbursement from the Division
of Environmental Health.
(1) General Water Supply Revolving Loan and Grant Account. - The funds in the General Water Supply Revolving Loan and Grant Account shall be used exclusively for the purpose of providing for revolving construction loans and grants in connection with water supply systems generally and not upon a county allotment basis.
(2) High-Unit Cost Water Supply Account. - The funds in the High-Unit Cost Water Supply Account shall be available for grants to applicants for high-unit cost water supply systems, on the same basis as provided in G.S. 159G-6(b)(2) for high-unit cost wastewater projects.
(3) Emergency Water Supply Revolving Loan Account. - The funds in the Emergency Water Supply Revolving Loan Account shall be available for revolving emergency loans to applicants in the event the Division of Environmental Health certifies that a serious public health hazard, related to the water supply system, is present or imminent in a community.
(d) Administrative
Account. - The Office of State Budget and Management, from time to time, may
allocate funds from the Administrative Account to meet the expenses of the
Office of State Budget and Management, Local Government Commission, Division of
Environmental Health and Environmental Management Commission incurred in the administration
of this Chapter in excess of normal operating expenses.
Each agency entitled to receive administrative expense
funds from the Administrative Account shall prepare an itemized estimate of
administrative funds required for the succeeding fiscal year, and the Division
of Environmental Health, the Local Government Commission and the Environmental
Management Commission shall deliver their estimates to the Office of State
Budget and Management at least 45 days prior to the beginning of the fiscal year
for which the funds are required. The Office of State Budget and
Management shall determine the administrative expense funds available and,
along with its recommendations, shall deliver the estimates of the Division of
Environmental Health, the Local Government Commission and of the Environmental
Management Commission and its own estimate, if any, to the Advisory Budget
Commission at least 30 days prior to the beginning of the fiscal year for which
the funds are required. Any administrative expense funds shall be
disbursed by the Office of State Budget and Management to the appropriate
agency. If the administrative expense funds disbursed to any agency shall
prove insufficient, it may apply at any time during the fiscal year for
additional funds in the manner above provided.
(e) Notwithstanding any other provision of this Chapter, funds in the Water Pollution Control Revolving Fund shall not be available as grants except to the extent permitted by Title VI of the Federal Water Quality Act of 1987 and the regulations thereunder."
Sec. 5. G.S. 159G-8(a) reads as rewritten:
"(a) Application. - All
applications for revolving loans and grants for water supply systems shall be
filed with the Division of Environmental Health and all applications for revolving
loans and grants for wastewater treatment works or wastewater collection
systems shall be filed with the Environmental Management Commission. Every
applicant shall also file with the Office of State Budget and Management such
information concerning the application as the Office of State Budget and
Management may require by rules adopted pursuant to this Chapter. Any
application may be filed in as many categories as it is eligible for
consideration under this Chapter. Applications for revolving construction
loans or grants for wastewater treatment works and wastewater collection
systems, except applications for emergency wastewater loans, shall first be
submitted for a loan or grant from the Water Pollution Control Revolving Fund
established by G.S. 159G-5(c). If the application is denied, the
application shall then be considered for a revolving loan or a grant from the
General Wastewater Revolving Loan and Grant account established under G.S.
159-6(b)(1).
The Office of State Budget and Management, the Division of
Environmental Health Department of Environment, Health, and Natural
Resources, the Commission for Health Services, and the Environmental
Management Commission may develop jointly and adopt a standard form of
application under this Chapter. Any application for construction grants
under the Federal Water Pollution Control Act may be considered as an
application for revolving construction loans or grants under G.S.
159G-5(c) and G.S.
159G-6(b)(1). The information required to be set forth in the application
shall be sufficient to permit the respective agencies to determine the
eligibility of the applicant and to establish the priority of the application,
as set forth in this Chapter.
Any applicant shall furnish information in addition or supplemental to the information contained in its application upon request by the receiving agency."
Sec. 6. G.S. 159G-12 reads as rewritten:
"§ 159G-12. Disbursement.
(a) No funds shall be
disbursed by the Office of State Budget and Management Department of
Environment, Health, and Natural Resources for any revolving loan or grant
until it has received from the receiving agency a certificate of eligibility to
the effect that the applicant meets all eligibility criteria, and that all
procedural requirements of this Chapter have been met.
(b) In the event that the
revolving loan or grant payments are to be made in installments, no payment
shall be disbursed by the Office of State Budget and Management Department
of Environment, Health, and Natural Resources until the receiving agency
submits a written request for disbursement.
(c) The receiving agency, in its sole discretion, may determine whether the payment of any revolving loan or grant made under this Chapter shall be in a lump sum or in installments as progress payments and shall, by adoption of appropriate rules and regulations, provide for the manner of approval and payment of revolving loans or grants. The State Treasurer, with the approval of the receiving agency and consistent with the provisions of G.S. 159G-6(a)(3), shall, by adoption of appropriate rules, provide for the payment of revolving loans or grants."
Sec. 7. G.S. 159G-15 reads as rewritten:
"§ 159G-15. Rules.
(a) The Office of
State Budget and Management, Department of Environment, Health, and
Natural Resources, the Commission for Health Services Services, and
the Environmental Management Commission may adopt, modify and repeal rules
establishing the procedures to be followed in the administration of this Chapter
and regulations interpreting and applying the provisions of this Chapter, as
provided in the Administrative Procedure Act. Uniform rules may be
jointly adopted where feasible and desirable, and no rule jointly adopted may
be modified or revoked except upon concurrence of all agencies involved.
(b) A copy of its rules
adopted to implement the provisions of this Chapter shall be furnished free of
charge by the receiving agency and the Office of State Budget and Management
Department of Environment, Health, and Natural Resources to any
local government unit."
Sec. 8. G.S. 159G-16 reads as rewritten:
"§ 159G-16. Federal grants and loans.
In order to carry out the purpose of this Chapter to secure the
greatest benefits possible to the citizens of this State from the funds herein
appropriated, the Office of State Budget and Management, Department
of Environment, Health, and Natural Resources, the Commission for Health Services
Services, and the Environmental Management Commission shall adopt
such rules and criteria, not inconsistent with the provisions of this Chapter,
as are necessary and appropriate to conform to regulations for federal grants
and loans for any of the purposes set forth in this Chapter."
Sec. 9. G.S. 159G-17 reads as rewritten:
"§ 159G-17. Annual reports to Joint Legislative Commission on Governmental Operations.
(a) The Office of
State Budget and Management, Department of Environment, Health, and
Natural Resources, the Division of Environmental Health Health, and
the Environmental Management Commission shall prepare and file on or before
July 31 of each year with the Joint Legislative Commission on Governmental
Operations a consolidated report for the preceding fiscal year concerning the
allocation of revolving loans and grants authorized by this Chapter.
(b) Office of State
Budget and Management. - The portion of the report prepared by the Office
of State Budget and Management Department of Environment, Health, and
Natural Resources shall set forth for the preceding fiscal year itemized
and total allocations from the Administrative Account for administrative
expenses; itemized and total allocations from the Wastewater Accounts of
revolving loans and grants authorized by the Environmental Management
Commission; and itemized and total allocations from the Water Supply Accounts
of revolving loans and grants authorized by the Division of Environmental
Health. The Office of State Budget and Management Department of
Environment, Health, and Natural Resources shall also prepare a summary
report of all allocations made from the Clean Water Revolving Loan and Grant
Fund for each fiscal year; the total funds received and allocations made; and
unallocated funds on hand in each account as of the end of the preceding fiscal
year.
(c) Environmental Management Commission and Division of Environmental Health. - The portions of the report prepared by the Environmental Management Commission and the Division of Environmental Health shall include:
(1) Identification of each revolving loan and grant made by the receiving agency during the preceding fiscal year; the total amount of the revolving loan and grant commitments; the sums actually paid during the preceding fiscal year to each revolving loan and grant made and to each revolving loan and grant previously committed but unpaid; and the total revolving loan and grant funds paid during the preceding fiscal year.
(2) Itemization
of expenditures of any administrative expense funds allocated from the
Administrative Account during the preceding fiscal year.
(3) Summarization for all
preceding years of the total number of revolving loans and grants made; the
total funds committed to such revolving loans and grants; and the total
sum actually paid to such revolving loans and grants grants. and
the total expenditure of administrative expense funds allocated from the
Administrative Account.
(4) Assessment and evaluation of the effects that approved projects have had upon water pollution control and water supplies within the purposes of this Chapter and with relation to the total water pollution control and water supply problem.
(d) The report shall be signed by each of the chief executive officers of the State agencies preparing the report."
Sec. 10. G.S. 159G-18(a) reads as rewritten:
"(a) Local government
units may execute debt instruments payable to the State in order to obtain
revolving loans provided for in this Chapter. Local government units
shall pledge as security for such obligations the user fee revenues derived
from operation of the benefited facilities or systems only, or their faith and
credit, or both. The faith and credit of such local government units
shall not be pledged or be deemed to have been pledged unless the requirements
of Article 4, Chapter 159 of the General Statutes have been met. The Office
of State Budget and Management and the State Treasurer, with the assistance
of the Local Government Commission, shall develop and adopt appropriate debt
instruments for use under this Chapter. The Local Government Commission
shall develop and adopt appropriate procedures for the delivery of debt
instruments to the State without any public bidding therefor."
Sec. 11. This act is effective upon ratification.
In the General Assembly read three times and ratified this the 3rd day of June, 1991.
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James C. Gardner
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives