STATE FINANCIAL ASSISTANCE TO PUBLIC AGENCIES FOR POLLUTION CONTROL FACILITIES FOR
THE DISPOSAL OF SOLID WASTE
The purpose of these rules is to prescribe requirements and procedures for obtaining state financial assistance for planning and construction of pollution control facilities for the disposal of solid waste pursuant to Article XI-H of the Oregon Constitution, and to provide for pass-through of federal funds to designated agencies.
As used in these rules unless otherwise required by context:
(1) "Department" means Department of Environmental Quality. Department actions shall be taken by the Director as defined herein.
(2) "Commission" means Environmental Quality Commission.
(3) "Director" means Director of the Department of Environmental Quality or his authorized deputies or officers.
(4) "Agency" means municipal corporation, city, county, or agency of the State of Oregon, or combination thereof, applying or contracting for state financial assistance under these rules.
(5) "EPA" means U.S. Environmental Protection Agency.
(6) "Designated Agency" means a governmental unit designated by the state as a planning or implementing solid waste agency, or both.
Eligible Projects and Project Priorities
Projects eligible for state financial assistance under ORS 468.220 and priority ranking of such eligible projects will be based on the following criteria approved by the Commission:
(1) Projects eligible for state financial assistance for pollution control facilities for the disposal of solid waste as authorized in ORS 468.220 shall meet the following criteria:
(a) The project or facility is part or parcel of or complementary to a Department approved and locally adopted Solid Waste Management Plan;
(b) The project or facility has proven or demonstrated technical feasibility;
(c) The project or facility is within local economic constraints and abilities to administer;
(d) The project or facility must be approved by the Department.
(2) Priority of eligible projects for state assistance for planning and construction of pollution control facilities for the disposal of solid waste shall be based upon the following criteria:
(a) The project or facility is replacing existing inadequate or unacceptable methods of solid waste disposal and thereby results in improved environmental quality;
(b) The project or facility recovers resources from solid wastes;
(c) The projected facility will establish improved solid waste management practices;
(d) The need for state assistance is demonstrated.
Eligible costs for state assistance for planning and construction of pollution control facilities for the disposal of solid wastes shall include but not necessarily be limited to:
(1) Land acquisition limited to that minimum amount of land necessary to the project.
(2) Engineering costs for design and supervision.
(3) Legal assistance directly related to project.
(a) Site development;
(b) Structures (including earth structures);
(c) Fixed utilities.
(5) Major equipment (initial purchase only):
(a) Solid waste processing and handling equipment;
(b) Landfill operation equipment;
(c) Rolling stock;
(d) Miscellaneous equipment under $1,500.
Special Considerations on Eligible Costs For Equipment
Equipment purchases for solid waste disposal facilities with state assistance shall be given special consideration. Intended equipment purchases shall be itemized in the grant-loan application and the applicability of each individual piece of equipment to the project or facility clearly outlined for Department review. The following criteria shall be applied by the Department to equipment purchases:
(1) Equipment purchases shall be limited to initial purchases only and eligibility restricted to only that equipment necessary to sustain the performance of the project or facility.
(2) Equipment required, whether for processing or landfilling of solid wastes, that has an expected useful or mechanical life less than the anticipated life of the project will require a sinking fund or equivalent replacement fund in the submitted project budget for such equipment replacement throughout the life of the project.
(3) All major equipment purchases shall be done through open bidding on specified types or equivalents of equipment. Specifications on major equipment needs shall be reviewed by the Department prior to purchase.
(4) Equipment purchases less than $1,500 (small tools, office equipment, etc.) do not require specifications but must be reviewed and approved by the Department.
The representative of an agency wishing to apply for state financial assistance under these regulations shall submit to the Department three signed copies of each of the following completed documents:
(1) Department Solid Waste Management Projects Grant-Loan application form currently in use by the Department at the time of the application for state financial assistance. This form will be provided by the Department upon request.
(2) All applications for federal financial assistance to the solid waste projects for which state financial assistance is being requested.
(3) Resolution of the agency's governing body authorizing an official of the agency to apply for state and federal financial assistance and to act in behalf of the agency in all matters pertaining to any agreements which may be consummated with the Department or with EPA or other federal agencies.
(4) Five year projection of the agency's estimated revenues and expenses related to the project (on forms provided by the Department).
(5) An ordinance or resolution of the agency's governing body establishing solid waste disposal user rates, and other charges for the facilities to be constructed.
(6) A legal opinion of the agency's attorney establishing the legal authority of the agency to enter into a financial assistance agreement together with copies of applicable agency ordinance and charter sections.
(7) A waste reduction plan which is consistent with ORS 459.055(3)(a) through (f).
(8) An application is not deemed to be completed until any additional information requested by the Department is submitted by the agency.
(9) Applications for financial assistance for planning under ORS 468.220(1)(e) shall be on special forms provided by the Department and shall be accompanied by a resolution of the agency's governing body.
Stat. Auth.: ORS 459.055, ORS 459.305 & ORS 468.220
Stats. Implemented: ORS 468.195 - ORS 468.272
Hist.: DEQ 76, f. 7-29-74, ef. 8-25-74; DEQ 20-1980, f. & ef. 8-1-80; DEQ 31-1980, f. & ef. 11-10-80; DEQ 30-1981, f. & ef. 10-19-81; DEQ 23-1990, f. & cert. ef. 7-6-90
Application documents will be reviewed by the Department staff to determine that: the proposed facilities for which state funds are requested are eligible under these regulations and applicable Oregon statutes; the proposed sources of local revenue to be pledged to the retirement of state loans are acceptable and adequate under the statutes; the facilities for which state financing is requested will be self-supporting and self-liquidating from approved revenues, gifts, user charges, assessments, and other fees; and federal or state assistance funds are assured, or local funds are available, for the completion of the project.
Loan or Obligation Purchase Agreement
(1) Following review and approval of the application documents and final construction plans and specifications by the Department and legal authorization by the governing body of the agency or its electorate, if necessary, to enter into a loan agreement with the state or an agreement to sell its general obligation bonds or other obligations to the state, the Department may enter into such loan or purchase agreement in a principal amount up to 100 percent of the eligible project cost including the construction bid accepted, estimated engineering and inspection costs, eligible legal and fiscal costs and a contingency allowance to be established by the Department. Combinations of funds granted and loaned by whatever means shall not total more than 100 percent of the eligible project costs.
(2) The loan or purchase agreement shall identify sources and amounts of revenue, to be dedicated to loan or obligation retirement sufficient to demonstrate that the facilities to be constructed will be self-supporting and self-liquidating. The agency will be required to furnish an annual audit report to the Department to show that adequate and acceptable revenues continue to be available for loan obligation retirement.
(3) When the state is requested to purchase local obligations and a bond purchase agreement is entered into, the local obligations will be purchased at par to an even multiple of $5,000, except that when the amount of local obligations to be purchased by the state is less than $100,000 they may be purchased at par to a multiple of $1,000.
(4) The loan or obligation interest rate to be paid by the agency shall be equal to the interest rate on the state bonds from which the project is funded, except as provided in sections (5) and (6) of this rule.
(5) The Department shall add to the rate of interest otherwise to be charged on loans or obligations a surcharge not to exceed an annual rate of one-tenth of one percent to be applied to the outstanding principal balances in order to offset the Department's expenses of administering the Bond Fund program.
(6) The loan or obligation retirement schedule of the agency must retire its debt obligation to the state at least as rapidly as the state bonds from which the loan funds are derived are scheduled to be retired except that when a debt retirement schedule longer than the state's bond repayment schedule is legally required, special debt service requirements on the agency's loan or obligation purchase will be established by the Department.
(7) Loan or obligation interest and principal payments shall be due at least 30 days prior to the interest and principal payment dates established for the state bonds from which the loan or obligation purchase is advanced.
Construction Bid Documents Required
Following receipt of construction bids, the agency shall submit three copies each of the following documents to the Department for review and approval of contract award: tabulation of all bids received; engineer's analysis of bids; engineer's recommendations; low bidder's proposal; publisher's affidavits of advertising; and a current project cost estimate summary including an estimate of funds available for the project.
Advancement of Loan or Obligation Purchase Funds
(1) Upon receipt of three copies of the executed construction contract and the loan or obligation purchase agreement, the Department will approve the final loan amount and authorize the Treasury Department to advance the full amount of the loan or obligation purchase price to the agency.
(2) If the funds are advanced under the terms of a previously executed obligation purchase agreement, the agreement will specify a period of time, not to exceed six months, following the advancement of funds by the state during which the agency agrees to offer its obligations for public sale. The terms and conditions of the Department's bid offer for the agency's obligations will be made available to other prospective bidders when the notice of sale of the agency's obligations is published. If the state is the successful bidder for the agency's obligations, the state will receive the obligation and the obligations will be retired under the terms of the obligation purchase agreement. If a private purchaser is the successful bidder, the state will receive reimbursement of the loan or obligation purchase funds previously advanced plus interest at the interest rate on the state bonds from which the project would have been funded if the state had been the successful bidder.
(3) Any excess loan or obligation purchase funds held by the agency following completion of the project must be used for the payment of loan or obligation principal and interest.
Advancement of State Grant Funds
Depending on priority ranking as determined by the Department and the current availability of EPA or other federal grant funds, a project may receive a state grant in an amount not to exceed 30 percent of the total eligible project cost under the terms of a separate grant agreement. Grant payments will be advanced during construction, if requested by the agency, in increments of approximately 25 percent of the total eligible grant project costs as the work is completed. Each payment will be based on the consulting engineer's latest cost estimate of the completed work in place, plus materials purchased and delivered at the time the payment request is submitted to the Department, and expenditures for engineering, legal, and fiscal services that have been documented by the agency to date.