Chapter 10. Financial Assistance for the Construction of Solid Waste Processing and Disposal Facilities
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Applicant” means a State or local governmental entity requesting financial assistance under this chapter.
(2)
“Construction” means either physically installing a new solid waste processing or disposal facility, or rehabilitating or improving an existing facility.
(3)
“Department” means the Maryland Department of the Environment.
(4)
“Financial assistance” means grants, loans, or loan guarantees approved by the State's Board of Public Works.
(5)
“Local governmental entity” means a county, municipality, sanitary commission, or a regional solid waste authority.
(6)
“Secretary” means the Secretary of the Environment.
(7)
“Solid waste disposal facility” means a sanitary landfill or any other facility which is used for the final disposal of solid waste.
(8)
“Solid waste processing facility” means an incinerator, transfer station, resource recovery plant, composting facility, or any other combination of structures, machinery, or devices used to reduce or alter the volume, chemical characteristics, or physical characteristics of solid waste before disposal or use.
Regulation .02 General Provisions.LinkCopy Citation
A.
Funds available under this program are intended to be used as a last resort measure to assist regional and local governmental entities in solving solid waste disposal or processing system inadequacies, when it can be demonstrated that the applicant has insufficient or limited financial capability to proceed with necessary construction projects.
B.
Financial assistance under this chapter shall be limited to:
(1)
Projects involving solid waste processing or disposal facilities;
(2)
State and local governmental entities; and
(3)
Not more than 87-1/2 percent of eligible project costs.
C.
A project may receive financial assistance under this chapter if:
(1)
The project is in conformance with the approved county solid waste management plan;
(2)
A public hearing required by the Department on the project has been held, in addition to a hearing held before the adoption of the solid waste management plan; and
(3)
The project conforms with other applicable State and federal requirements.
D.
Proposed projects are subject to State Clearinghouse review procedures in accordance with COMAR 16.02.01. Each project which the Department submits to the Board of Public Works for financial assistance approval shall be accompanied by the comments from the Clearinghouse's intergovernmental review process.
E.
The award of State financial assistance may not cause project funding to exceed 100 percent of the total project costs.
F.
State assistance may not exceed 87-1/2 percent of eligible project costs as described in Regulation .03, of this regulation. For a project undertaken by the Maryland Environmental Service, pursuant to an order by the Secretary, eligible costs shall be as authorized under Natural Resources Article, §3-101(b), Annotated Code of Maryland, as amended.
Regulation .03 Project Eligibility.LinkCopy Citation
A.
Project costs which are eligible for financial assistance under this chapter may include:
(1)
The acquisition of new facilities;
(2)
The construction of new facilities;
(3)
Additions to, or modifications of, existing facilities;
(4)
Equipment purchases; and
(5)
Lands, easements, and rights-of-way.
B.
Project costs which may not be funded, except as provided for in §C, of this regulation, include:
(1)
Feasibility studies;
(2)
Planning;
(3)
Administrative costs and overhead; or
(4)
Plans and specifications.
C.
Project costs outlined in §B, of this regulation, may be funded if the:
(1)
Secretary determines that the applicant does not have the financial capability to produce the necessary feasibility studies, plans, and specifications; and
(2)
Applicant is requesting financial assistance in the form of a loan or a loan guarantee.
D.
The award of a loan or loan guarantee does not eliminate the requirement that the applicant obtain all required permits for a solid waste processing or disposal facility. The applicant shall remain liable for repayment of all applicable loans regardless of whether a permit is issued or the facility becomes operational.
E.
Allowances. The additional costs permitted in §C, of this regulation, may not exceed the percent of the total project cost as interpolated from Tables 1 and 2. State participation for these costs shall require a bona fide commitment from the applicant that construction of the proposed project will begin within 2 years.
Regulation .04 Applications for Assistance.LinkCopy Citation
A.
Applications for assistance under this chapter shall consist of two parts, the preliminary application and the final application. They shall include documentation of need and such other information as may be required by the Department.
B.
The preliminary application shall be submitted to the Department (who shall submit it to the State Clearinghouse) and shall include sufficient information for the Department to determine the following:
(1)
Project eligibility;
(2)
Project need and priority ranking;
(3)
Financial capability of the applicant; and
(4)
Previous attempts by the applicant to fund the project using other resources.
C.
If the project falls within the fundable range of the annual priority list, the Department shall require that the applicant submit a final application which includes:
(1)
Certification that the project is consistent with the appropriate approved county solid waste management plan;
(2)
Certification by the applicant to the Board of Public Works that:
(a)
Other sources of funding are either unavailable or insufficient for the proposed project; and
(b)
Federal grants for the project are not jeopardized by the award of State financial assistance by the Board of Public Works;
(3)
Certification of the applicant's inability to fund the proposed project; and
(4)
For applications which include the cost of construction:
(a)
Copies of pertinent State construction permits;
(b)
Copies of design plans and specifications; and
(c)
Studies and reports which demonstrate the engineering feasibility and cost-effectiveness of projects.
Regulation .05 Priority List and Ranking System.LinkCopy Citation
A.
The Department, once a year, shall rank separately applications for grants, loans, and loan guarantees. The Department shall consider the comments and recommendations provided by the State Clearinghouse's intergovernmental review in the ranking process.
B.
The Department shall provide adequate notice and opportunity for public comment concerning the annual priority list.
C.
The Department may change the ranking of projects as a result of public comment.
D.
Upon recommendation of the Secretary, the Board of Public Works may award financial assistance for projects not included on the annual priority list, if it determines that:
(1)
The project is the result of an unanticipated immediate need; and
(2)
Serious damage to public health or the environment would result if approval of the project is delayed until after the next annual priority list is prepared.
E.
Priority Rankings.
(1)
Priority rankings shall be determined by a scoring system based on weighted scores. Highest scores will receive the highest priority ranking.
(2)
If a tie exists, preference shall be given to correction of the most severe public health or environmental problem as determined by the Department.
F.
Scoring System. Scores assigned to each category are as follows:
(1)
Category I--Public Health and Environmental Impacts (Points Available in Each Sub-Category).
(a)
Facility described in the application for assistance is:
(i)
Causing an increase in waters of the State, of at least one order of magnitude in any three key chemical parameters, as specified by the Department; or
(ii)
Not in compliance with 40 CFR §257.3-3, which is incorporated by reference. Maximum points under §F(1) of this regulation ----------------------------------- 100.
(b)
Facility is not in compliance with at least one of the criteria in 40 CFR 257 (except part 257.3-3), 10 points for each criterion listed there, maximum of ------------ 100.
(2)
Category II — Problem Prevention (Points Available in Each Sub-Category).
(a)
Aggregate life of all solid waste disposal facilities within the applicant's jurisdiction is less than 3 years for the principal type of solid waste to be accepted at the
(b)
The percentage of the jurisdiction's solid waste disposal capacity provided by the facility described in the application for assistance is:
(i)
75—100 ---------------------------------------------- 100,
(ii)
50—74 ----------------------------------------------- 75,
(iii)
Less than 50 ---------------------------------------- 50;
(c)
The percentage of the jurisdiction's solid waste processing capacity provided by the facility described in the application for assistance is:
(i)
75—100 ----------------------------------------------- 75,
(ii)
50—74 ----------------------------------------------- 50,
(iii)
Less than 50 ---------------------------------------- 25.
(3)
Category III — Previous Efforts by the Applicant to Solve the Problem (Points Available in Each Sub-Category). Points will be assigned to reflect previous efforts made by the applicant to correct the problem as follows:
(a)
Development of scope of work ---------------------------- 20;
(b)
Preparation of plans and specifications ----------------- 20;
(c)
Certification by applicant that federal, local, and private funding sources have been solicited ------------------- 40;
(d)
Certification by applicant that equipment has been purchased or reasonable attempts have been made to effect the necessary improvements ------------------------------ 20.
(4)
Category IV — Applicant's Financial Capability. The financial capability of applicants will be assessed based on a comparison of median household income within the total areas to be served. Points will be assigned as follows:
(a)
Application is for loan guarantee ----------------------- 25.
(b)
Table 3. Financial Capability.
G.
Ordinary operating expenses of local government, for example, salaries, are not eligible for funding under this chapter.
Regulation .06 Allocation of Funds.LinkCopy Citation
The Department annually shall allocate available funds as described below:
A.
Up to 10 percent of the funds shall be placed in a reserve fund for emergency projects and for grant amendments and loan or loan guarantee increases necessitated by change orders and cost overruns;
B.
Not more than 25 percent of the funds not reserved under §A, of this regulation, shall be set aside for grants; and
C.
Funds remaining after the reserve fund and grant fund are established shall be used for loans and loan guarantees.
Regulation .07 Financial Agreement.LinkCopy Citation
A.
Approval by the Board of Public Works of financial assistance shall be conditioned upon the execution of a suitable financial agreement between the State and the applicant.
B.
The financial agreement required by the Board of Public Works as a condition of financial assistance shall include terms which:
(1)
Provide salvage rights by the State upon default of the applicant;
(2)
Require the applicant to maintain accounting records and submit monthly accounting reports to the Department;
(3)
Describe the grant, loan, or loan guarantee payment and repayment schedules;
(4)
Provide that a project sign will be erected when total State participation in the project exceeds $10,000;
(5)
Require the applicant to follow all State environmental control laws and regulations in constructing the project;
(6)
Require the applicant to operate and maintain the facility in accordance with Environment Article, Title 7, Subtitle 2 or §9-204, Annotated Code of Maryland;
(7)
Provide that the agreement may be voided by the Department if construction has not begun within 6 months of the award of financial assistance and, if voided, shall require the applicant to repay all previously awarded funds with interest;
(8)
Require that extra work orders or change orders be approved by the Department before the contractor is authorized to proceed, and upon approval, the applicant may request an amendment to the grant or loan agreements; and
(9)
Require the applicant to accept responsibility for costs which exceed 5 percent of the original total award for assistance, unless change orders have been authorized by the Department under §B(8), of this regulation.
C.
Financial agreements may also include special conditions or requirements recommended by the Department and approved by the Board of Public Works.
D.
The applicant shall follow local bidding requirements. If local bidding requirements do not exist, bidding procedures satisfactory to the Board of Public Works shall be followed.
Regulation .08 Special Requirements.LinkCopy Citation
A.
A governmental entity receiving financial assistance under this chapter may not award a contract on a cost-plus basis.
B.
The following conditions apply to loans approved under this chapter:
(1)
Loans shall bear the same rate of interest as the bonds from which the proceeds are used to provide the loan. Costs associated with the sale of bonds may be included in the repayment schedule as required by the Board of Public Works;
(2)
The loan shall be repaid within 30 years and the first payment shall be made at a time stipulated by the Board of Public Works.
C.
A loan guarantee of the principal of, or interest on, any commercial loan or obligation to finance an eligible project may be made only if the:
(1)
Applicant certifies that it is unable to obtain sufficient credit on reasonable terms to finance its actual needs without a guarantee; and
(2)
Board of Public Works determines that there is a reasonable assurance of repayment of the loan obligation.
D.
Financial assistance provided under this chapter may not be applied to projects whose construction was initiated before approval by the Board of Public Works.
Chapter annotations
Authority: Chapter 306, Acts of 1982, Laws of Maryland
History: Effective date: August 12, 1985 (12:16 Md. R. 1606)
History: Chapter recodified from COMAR 10.17.14 to CIMAR 26.03.10