Bay Restoration Fund fees deposited into the Onsite Sewage Disposal System Fund shall be used: To provide grants or loans up to 100 percent for: The cost to upgrade an existing onsite sewage disposal system with the best available technology for the removal of nitrogen; The cost difference between a conventional onsite sewage disposal system and an onsite sewage disposal system that utilizes the best available technology for the removal of nitrogen; The cost of replacing multiple onsite sewage disposal systems located in the same community with a new community sewerage system that is owned by a local government and that meets enhanced nutrient removal standards, and the cost may not exceed the sum of the cost difference between conventional onsite sewage disposal systems and new onsite sewage disposal systems that use the best available technology for removing nitrogen; and The cost of connecting a property using an onsite sewage disposal systems to an existing wastewater treatment plant that meets either enhanced nutrient removal or biological nutrient removal standards. This cost may not exceed the sum of the cost of onsite sewage disposal systems that include best available technology for removing nitrogen. This cost may include payment of principal, but not interest, of debt issued by a local government for such connection. To provide grants or loans up to 100 percent for the cost of repairing or replacing failing onsite sewage disposal systems with a system that uses the best available technology for the removal of nitrogen. This option is available only to low-income homeowners. The cost is the total cost of repair, replacement and upgrade including wastewater disposal drainfields, provided that funds are available after addressing the priorities listed in Regulation .04A(1)(a) and (b) of this chapter. For the Department’s operating expenses, including technical assistance, to administer the Bay Restoration Onsite Sewage Disposal System Fund not to exceed 8 percent of fees deposited into the Onsite Sewage Disposal System Fund. For expenses of a local public entity, not to exceed 10 percent of the fees deposited into the onsite sewage disposal system fund, to administer, enforce, and implement regulations adopted by the Department and delegated to the local public entity, for the reduction of nitrogen using best available technology at onsite sewage disposal systems. Project Prioritization. Funding shall be based on the following order of priority: Failing onsite sewage disposal systems in the Chesapeake and Atlantic Coastal Bays Critical Area, with best available technology for the removal of nitrogen; Failing onsite sewage disposal systems outside the Chesapeake and Atlantic Coastal Bays Critical Area, with best available technology for the removal of nitrogen; Nonconforming onsite sewage disposal systems in the Chesapeake and Atlantic Coastal Bays Critical Area, with best available technology for the removal of nitrogen; Nonconforming onsite sewage disposal systems outside the Chesapeake and Atlantic Coastal Bays Critical Area, with best available technology for the removal of nitrogen; Other onsite sewage disposal systems in the Chesapeake and Atlantic Coastal Bays Critical Area including new construction, with best available technology for the removal of nitrogen; Other onsite sewage disposal systems outside the Chesapeake and Atlantic Coastal Bays Critical Area, including new construction, with best available technology for the removal of nitrogen. Grant Awards. The Department shall request and accept applications for financial assistance annually and shall award grants based on the following factors: Total number of septic systems within a county; Number of septic systems within the Chesapeake Bay and Atlantic Coastal Bays Critical Area within a county; Grant funding requested by the county or its authorized agent. Income Based Grant Eligibility. Homeowners with existing onsite sewage disposal systems or new onsite sewage disposal system construction may qualify for grant funding based on their income as follows: Up to 100 percent of the approved cost for annual household income of $300,000 or less; Up to 50 percent of the approved cost for annual household income above $300,000. Not for profit entities with existing onsite sewage disposal systems or proposing new onsite sewage disposal system construction may qualify for up to 100 percent of the approved cost as grant funding. Businesses with existing onsite sewage disposal systems or proposing a new onsite sewage disposal system construction can qualify for up to 50 percent of the approved cost as grant funding. Small businesses, as defined by COMAR 21.01.02.01, with existing onsite sewage disposal systems or proposing a new onsite sewage disposal system construction can qualify for up to 75 percent of the approved cost as grant funding. The grant eligibility percentages in this section may be adjusted in the future based on higher or lower funding demands for the upgrade of onsite sewage disposal systems. Procedures for Review, Public Notice and Public Hearing for Projects Not Located in the Priority Funding Area. Departmental Review. The applicant shall submit a complete application to include the following: Information about the public health issues that the project addresses including a description of the current condition of the onsite sewage disposal system based on factors such as type of soil, lot size, water table, bacteria samples, and dye tests; The anticipated mitigation that the project will provide to the identified public health issues; Information regarding any potential new development resulting from the project; Measures to be taken to mitigate the potential impacts of new growth resulting from the project; Evidence that demonstrates the total net nitrogen reduction resulting from the project as well as any additional nitrogen loading that may result from potential new growth, including: Methods used to calculate the total nitrogen reductions and additional nitrogen loading; and Assumptions relied upon to calculate the total nitrogen reductions and additional nitrogen loading; and Language amending the Water and Sewer Plan in draft or final form to identify the problem area and provide proof of available sewer service capacity, including identity of all necessary service agreements, proposed service area boundary changes, and any text and data changes needed to document new sewerage services. Notice of Application and Public Hearing. Upon receiving an application for funding, the Department shall coordinate with the Maryland Department of Planning prior to granting preliminary approval and shall: Provide a 30-day public notice on its website homepage summarizing: The public health issues being addressed by the project; New in-fill growth resulting from the project; Mitigation measures to lessen the impact of new growth that could result from the project; Net nitrogen reductions resulting from the project that shall consider the impact of additional nitrogen loading from potential new growth; and A deadline for receiving written comments; Provide a copy of the public notice to any interested party that has requested such notice; and Provide an opportunity for a public hearing, if requested within 30 days of the public notice. If a public hearing is held regarding an application: The applicant shall attend the hearing and present information concerning the application; Written comments shall be accepted if they are received by the Department on or before the deadline specified by the Department; and Oral comments may be made at the public hearing. Determination of Preliminary Approval. The Department shall, in coordination with the Maryland Department of Planning, make its determination of preliminary approval: Based on the information received with the application, along with any written comments received or any oral public comments received at the hearing that raise issues of law or material facts regarding an application for funding, but only if the issues are pertinent to purposes of the onsite sewage disposal system fund; or If no public hearing is requested, based on the information received with the application and from written comments that raise issues of law or material facts regarding an application for funding, but only if the issues are pertinent to purposes of the onsite sewage disposal system fund. Funding Approval. Upon granting an applicant preliminary approval for funding, the Department shall submit the application for a Priority Funding Area exception to the Smart Growth Coordinating Committee or to such body as may be designated by the State to consider applications for Priority Funding Area exceptions, for final approval or disapproval. The Smart Growth Coordinating Committee shall formally notify the Department of its decision. Grant Conditions: Upon final approval of a priority funding area exception by the Smart Growth Coordinating Committee or such other body as may be designated by the State to consider applications for Priority Funding Area exceptions, the Department shall notify the applicant of the approval and shall enter into a grant agreement with the applicant that shall include terms and conditions of such final approval, including: A denial of access for any future connections not included in the project’s proposed service area; Limits on potential new developments that could result from the project; A requirement to amend the county water and sewer plan; Provisions to ensure that the funding for the project will not unduly impede access to funding for upgrading other individual onsite sewage disposal systems within the jurisdiction; and A certification from the county’s environmental health director that the project is consistent with a public health area of concern and shall be subsequently added to the county’s water and sewer plan.