The laws of Maryland have been amended to allow financial assistance to State and local governmental entities in the form of grants and loans for projects that provide protection, restoration, and improvement of the quality of the waters of the State. “Applicant” means any State or local governmental entity. “Board” means the Water Science Advisory Board. “Department” means the Department of the Environment. “Discharge permit” means a permit issued by the Department for the discharge of any pollutant or combination of pollutants into the waters of this State. “Federal Clean Water Act” means the United States of America, Statute 33 U.S.C. 1251 et seq., as amended and such regulations, policies and guidelines as published from time to time pertaining to the Act. “House connection” means the sewerage system from the “Y” branch on the lateral sewer to the building lot property line. “Includes or including” means includes by way of example and not by limitation. “Project schedule” means a listing of significant events in the anticipated order of time of execution to ensure the orderly and timely progression and completion of a project. “Sewage” means any human or animal excretion, domestic waste, or industrial waste. “Sewerage system” means the channels used or intended to be used to collect or dispose of sewage, and any structure or appurtenance used or intended to be used to collect or prepare sewage for discharge into the waters of the State. This includes any sewer of any size, but does not include the plumbing system inside any building served by the sewerage system. Financial Assistance for Control of Nonpoint Sources of Agriculturally Related Water Pollution. Except for the provisions promulgated in §A(2)—(4), of this regulation, all requirements for State financial assistance for control of nonpoint sources of agriculturally related water pollution are contained in the Department of Agriculture's regulations, COMAR 15.01.05. Notwithstanding limitations in the percent of eligible costs set forth in COMAR 15.01.05, grants awarded to governmental entities or for projects on State-owned land may be awarded for up to 100 percent of the total eligible cost of a project. In awarding the grants, the Department will consider both the applicant's financial capability to cost share and any resultant economic benefit in determining the extent of any matching dollar amount. The Department shall award the grants only after prior consultation with the Secretary of Agriculture. The Board of Public Works, upon recommendation made by the Department of the Environment in accordance with these regulations, may award grants or loans to State and local governmental entities for the eligible costs of projects that will provide protection, restoration, and improvement of the quality of the waters of the State. The Department, in consultation with the Secretaries of State Planning, Natural Resources, Agriculture, and Housing and Community Development, shall establish priority systems for determining which projects shall receive financial assistance. An applicant shall obtain all applicable federal, State, and local permits, including construction, discharge, highway, waterway and wetland permits, and comply with all other applicable federal and State laws before application to the Board of Public Works for the grant or loan. Initiation of construction before approval of the Board of Public Works may disqualify the project for financial assistance. The proposed project shall be subject to State Clearinghouse review procedures found in COMAR 16.02.01 at the preapplication stage and again at the application stage if there is a substantial change in the scope of the project. The State priority system for the award of financial assistance shall be developed by the Department, may be subjected to public hearings and will result in a priority list which shall be used to award the financial assistance. The priority system shall take into account, as appropriate: The water quality or public health impacts of the existing circumstances; The problem prevention aspects of the proposed project; Previous efforts expended to correct any existing problem; The financial capacity of the applicant; Cost effectiveness of a proposed project; Planning requirements; Applicant's plans for monitoring and review; and Measures to assure accountability for all financial assistance. Based on the priority system, the Department of the Environment shall develop a priority list of projects. Preapplication to Establish Eligibility and Ranking. Anyone interested in applying for financial assistance shall submit to the Department on the form provided by the Department sufficient information for the Department to determine tentative project eligibility and priority ranking, financial capability, preliminary cost estimates, and certification that the project is consistent with the County Water and Sewer Plan. Projects applying for financial assistance under the Federal Clean Water Act shall be submitted annually on or about June 1. Application after Eligibility and Ranking Determined. After the eligibility and ranking of potential applicants has been tentatively determined, any person tentatively determined to be eligible may apply to the Department of the Environment for financial assistance by submitting, in the number of copies directed by the Department of the Environment, the following: For projects applying for financial assistance under the Clean Water Act, the requirements are contained in 40 CFR §35.2040 which is incorporated by reference. For projects applying for financial assistance for chlorine removal, nitrogen removal, special water quality needs or public health needs: An application on the form furnished by the Department. A report on the feasibility of the project. Clearinghouse review and comment. Certification of consistency with the County Water and Sewer Plan. Project schedule. When required by the Department, approved plans and specifications. A certification that other fund sources are not available or are insufficient for the proposed project. The certification shall be accompanied by evidence of financial inability to fund the project and a description of efforts expended to obtain funds from other governmental and private entities. Financial assistance may not be awarded that will cause a project to be funded at a level exceeding 100 percent of the total project cost. Combined State and federal financial assistance normally may not exceed 87-1/2 percent of the federally eligible cost of a project except grants may be awarded for up to 96-1/4 percent of the eligible cost of projects which contain innovative or alternative technology as define in the Clean Water Act and up to 100 percent of the eligible costs of projects undertaken for chlorine removal, nitrogen removal, existing special water quality needs or public health needs, constructing, equipping, rehabilitating and improving sewerage systems at a State-owned institution or facility. State financial assistance in the form of loans shall be as set forth in Regulation .07 of this chapter. Eligible Cost. Costs eligible for combined federal and State grants shall be as specified in the Clean Water Act. Costs eligible for State grants or loans are actual construction-related costs. In addition the following may, in the discretion of the Department of the Environment, be awarded to include some or all of the following supplementary project costs: Reports; Plans; Specifications; Legal and administrative services; Equipment; Rehabilitation or improvement; Acquisition of interest in land; Acquisition of interest in easements; and Acquisition of rights-of-way. Eligibility of supplementary costs will be determined by the Department based on the financial capability of the applicant to bear the additional cost. State financial assistance for supplementary costs may be in the form of a loan. Ordinary cost of government such as salaries and expenses of elected and appointed officials, and other staff, except as may be eligible on federally funded projects, preparation of routine financial reports and studies and development of sewer-use ordinances are not eligible. A reserve fund shall be established for grant and loan amendments to meet cost increases. Loans: Shall bear at least the same rate of interest as the most recent State general obligation bond sale preceding the date of approval by the Board of Public Works; Shall be repaid within 30 years; May not exceed $500,000 as an aggregate principal amount to a single applicant in any calendar year, unless the Board of Public Works determines that extraordinary circumstances exist. Loan agreements shall include specification of the purpose, amount, manner of repayment, the obligation of the applicant to construct, install and operate the project in a manner which ensures compliance with all contract documents and the discharge permit, maintain the project for its expected life span, and any other condition required by the Board of Public Works. Authorization of payments of State funds may be made by the Department of the Environment only in accordance with policy and procedures of the Board of Public Works. Environment Article, §§9-302, 9-345--350; Agriculture Article, §8-701; Annotated Code of Maryland Effective date: April 21, 1986 (13:8 Md. R. 901) Chapter recodified from COMAR 10.50.07 to COMAR 26.03.08 Regulation .01 amended effective August 6, 1990 (17:15 Md. R. 1863) Regulation .03 amended effective August 6, 1990 (17:15 Md. R. 1863)