| (a) This loan application option will provide an eligible
applicant that meets all applicable board requirements an alternative
to secure a commitment and close a loan for the pre-design, design
or construction costs associated with funding of a project under §363.1305
of this subchapter (relating to Use of Funds). Under this option,
a loan may be closed and funds necessary to complete planning and
design activities released. If planning requirements have not been
satisfied, design and construction funds will be held or escrowed
and released in the sequence described in this section. Following
completion of planning activities and environmental assessment, the
executive administrator may require the applicant to make changes
in order to proceed with the project. If the portion of a project
associated with funds in escrow cannot proceed, the loan recipient
shall use the escrowed funds to redeem bonds purchased by the board
in inverse order of maturity.
(b) Reservoir projects are eligible for a board commitment
to fund planning, permitting, acquisition, and design costs under
this option. Applicants for reservoir construction funds must complete
planning, permitting, acquisition, and design before receiving a commitment
to fund reservoir construction costs.
(c) The executive administrator may recommend to the
board the use of this section if, based on available information,
there appear to be no significant permitting, environmental, engineering,
or financial issues associated with the project. An application for
pre-design funding may be considered by the board despite a negative
recommendation from the executive administrator.
(d) Applications for pre-design funding must include
the following information:
(1) for loans including construction cost, preliminary
engineering feasibility report, which will include at minimum: a description
and purpose of the project; area maps or drawings as necessary to
fully locate the project area(s); a proposed project schedule; estimated
project costs and budget including sources of funds; current and future
populations and projected water needs and sources; and a discussion
of known permitting, social or environmental issues which may affect
the alternatives considered and the implementation of the proposed
project;
(2) contracts for engineering services, which may be
in draft form;
(3) evidence that an approved water conservation plan
will be adopted prior to closing;
(4) all information required in §363.12 of this
chapter (relating to General, Legal and Fiscal Information); and
(5) any additional information the executive administrator
may request to complete evaluation of the application.
(e) After board commitment and completion of all closing
and release prerequisites as specified in §363.42 of this chapter
(relating to Loan Closing) and §363.43 of this chapter (relating
to Release of Funds), funds will be released in the following sequence:
(1) for planning and permitting costs, after receipt
of executed contracts for the planning or permitting phase;
(2) for acquisition and design costs, after receipt
of executed contracts for the design phase and upon approval of an
engineering feasibility report as specified in §363.13 of this
chapter (relating to Preliminary Engineering Feasibility Report) and
compliance with §363.14 of this chapter (relating to Environmental
Assessment); and
(3) for construction costs, after issuance of any applicable
permits, and after bid documents are approved and executed construction
documents are contingently awarded.
(f) The executive administrator will use preliminary
environmental data provided by the applicant, as specified in subsection
(d) of this section, together with information available to the executive
administrator, and make a written report to the board on known or
potential significant social or environmental concerns.
(g) The executive administrator will advise the board
concerning projects that involve major economic or administrative
impacts to the applicant resulting from environmentally related special
mitigative or precautionary measures from an environmental assessment
under §363.14 of this chapter.
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