12-023 Code Vt. R. 12-030-023-X - UNSAFE DAM REVOLVING LOAN FUND RULES
SUBCHAPTER 1 AUTHORITY AND PURPOSE
101 Authority
This rule is adopted under the authority of 10 V.S.A. § 1106, "Unsafe Dam Revolving Loan Fund".
102 Purpose
(a) This Rule establishes the standards and
procedures for the use of the Vermont Unsafe Dam Revolving Loan Fund.
(b) The Unsafe Dam Revolving Loan Fund shall
be used to provide loans and grants to qualified municipalities, nonprofit
entities, and private individuals for the reconstruction, repair, removal,
breaching, draining, or other action necessary to reduce the threat of a dam or
a portion of a dam that has been determined to be unsafe under
10 V.S.A. §
1095.
103 Definitions
(a) As used in this Rule, the following terms
shall have the specified meaning. If a term is not defined, it shall have its
common meaning:
(1) "Commissioner" means the
Commissioner of the Department of Environmental Conservation or his or her duly
authorized representative.
(2)
"Engineer" means a professional engineer licensed under Title 26 who has
experience in the design and investigation of dams.
(3) "Fund" means the unsafe dam revolving
loan fund.
SUBCHAPTER 2 APPLICATION AND ELIGIBILITY
201 Eligibility for Financing
(a) To qualify for financing through the
Fund:
(1) The dam must be owned by a
municipality, nonprofit entity, or private individual(s);
(2) The owner of the dam must have legal
access to the dam to perform the required actions;
(3) The dam must be determined to be unsafe
pursuant to
10 V.S.A. §
1095;
(4) The work must provide a long-term
solution to the unsafe condition of the dam and be approved by the
Commissioner; and
(5) The owner of
the dam must apply for financing through the Fund.
202 Application for Financing
(a) Any person applying for financing through
the Fund shall submit an application on the form provided by the Commissioner.
The application shall be accompanied by the following documentation:
(1) A copy of the property deed or other
document legally describing the property that demonstrates that the applicant
is the dam owner and has legal access to the dam;
(2) Complete design plans, prepared under the
supervision of an engineer, for the physical work to be done on the
dam;
(3) A proposed schedule for
the breaching, removal, draining, repair, reconstruction or other action
necessary to reduce the threat posed by the dam; and
(4) A copy of the unsafe dam order issued
pursuant to
10 V.S.A. §
1095.
203 Selection Process and Criteria
(a) The Commissioner shall review
applications to determine eligibility and to establish funding priorities based
on the action required to be taken to reduce the threat of a dam or portion of
a dam determined to be unsafe pursuant to § 1095 as follows:
(1) First priority for funding shall be given
to dams or portions of dams determined by the Commissioner to present an
imminent threat under
10 V.S.A. §
1095(c) if the work to abate
the threat is done by the dam owner.
(2) Second priority for funding shall be
given to dams or portions of dams determined by the Commissioner to be unsafe
or a menace to people or property where the unsafe dam order directs breaching
or removal and associated draining.
(3) Third priority for funding shall be given
to dams or portions of dams determined by the Commissioner to be unsafe or a
menace to people or property where the unsafe dam order directs draining,
repair, reconstruction, or other action.
(b) Notwithstanding the priorities
established above, a qualified project may be denied funding if there are
inadequate funds to cover eligible costs.
SUBCHAPTER 3 FUND FINANCING
301 Financing; Total Eligible Costs
(a) Financing from the Fund shall be in the
form of a 100% loan, or a 25% grant together with a 75% loan as follows:
(1) First priority projects, as identified in
section 28-202(b)(1), will be funded based on the type of actions that will be
taken by the owner. Actions that include breaching or removal shall be eligible
for 25% grant and 75% loan funding. Actions that include draining, repair,
reconstruction, or other action shall be eligible for 100% loan
funding.
(2) Second priority
projects, as identified in § 28-202(b)(2), shall be eligible for 25% grant and
75% loan funding.
(3) Third
priority projects, as identified in section 28-202(b)(3), shall be eligible for
100% loan funding.
(b)
The total eligible costs per project that may be financed under these Rules is
limited to a maximum of $ 50,000 except that the $ 50,000 cap may be increased
for all projects, at the discretion of the Commissioner, based on accepted
construction cost indexes. Changes to the cap shall be posted on the Agency of
Natural Resources website.
(c) Work
required by an unsafe dam order is an eligible cost, including services
provided by an engineer. No other work shall constitute an eligible
cost.
302 Disbursement
of Funds
(a) Funds will be disbursed on a
reimbursement basis after the applicant provides sufficient documentation of
incurred eligible costs.
(b)
Grants, if any, will be disbursed first.
(c) The duration of all loans shall not
exceed 10 years.
(d) The interest
rate for all loans shall be 2%.
(e)
The Commissioner may retain a percentage of the loan or grant monies designated
to fund eligible costs in order to ensure final completion of the
project.
(f) The Commissioner may
request documentation, as necessary, to determine completion of the project.
Completion of the project shall be determined solely by the
Commissioner.
(g) The Commissioner
shall file a notice of the loan in the land records for the municipality where
the unsafe dam is located. The notice shall be recorded and indexed in
accordance with
24 V.S.A. §§
1154 and
1164
with the state of Vermont listed as the grantee.
303 Repayment
(a) Fund repayment shall be in accordance
with the following:
(1) Loan repayments shall
begin upon completion of the project and shall be made on an annual basis, in
accordance with a schedule established by the Commissioner.
(2) Full repayment of the loan shall be
required upon sale or transfer of the property.
(3) Where it is determined by the
Commissioner that the private individual(s) owner or non-profit entity owner
does not have the financial resources to repay a loan granted under this Rule,
partial loan forgiveness or grants may be authorized, at the Commissioner's
discretion.
(4) Pursuant to
10 VSA §
1106(c), the Commissioner
may bring an action to seek reimbursement to the fund for loans made from the
Fund.
Notes
EFFECTIVE DATE: February 19, 2014 Secretary of State Rule Log #14-005
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