DEPARTMENT OF HEALTH

[Filed October 4, 2018, 4:51 p.m., effective November 4, 2018]

Effective Date of Rule: Thirty-one days after filing.

Purpose: WAC 246-296-040 Use of funds by the state, 246-296-060 Establishing a DWSRF loan fee, loan fee account, and loan fee uses, and 246-296-080 Ineligible projects and project-related costs, the adopted rule clarifies and aligns WAC 246-296-040 with the federal rule under 40 Code of Federal Regulations (C.F.R.) Part 35 for set-aside activities which will allow the department of health (department) to broaden the use of the loan fee account. The adopted rule amends WAC 246-296-060 to include the use of the loan fee account for projects that are eligible to receive a drinking water state revolving fund (DWSRF) loan under 40 C.F.R. 35.3520. The United States Environmental Protection Agency (EPA) has the authority to grant a deviation for prohibited projects on a case-by-case basis. The adopted rule amends WAC 246-296-080 to allow projects currently prohibited from receiving a DWSRF loan under 40 C.F.R. 35.3535 to be considered eligible to receive funds when EPA grants a deviation. This change will allow the department to request a deviation from EPA on a case-by-case basis.

Citation of Rules Affected by this Order: Amending WAC 246-296-040, 246-296-060, and 246-296-080.

Statutory Authority for Adoption: RCW 70.119A.170.

Other Authority: 40 C.F.R. 35.352 and 35.3535.

Adopted under notice filed as WSR 18-17-119 on August 17, 2018.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 3, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 3, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 3, Repealed 0.

Date Adopted: October 3, 2018.

Acting Assistant Secretary

AMENDATORY SECTION(Amending WSR 16-14-086, filed 7/5/16, effective 8/5/16)

WAC 246-296-040Use of funds by the state.

(1) The department may use the following funds to carry out the purposes of the DWSRF:

(a) Capitalization grants provided by the federal government;

(b) State matching funds appropriated under RCW 70.119A.170;

(d) DWSRF loan fees; and

(e) Any other funds earned and deposited.

(2) The department may use these funds to:

(a) Finance DWSRF loans for planning, design, and construction of public water system infrastructure projects that will address or prevent violations of applicable federal, state, and local drinking water requirements;

(b) Finance reasonable costs for the department to administer the DWSRF program; and

(c) Fund set-aside activities as authorized in ((categories (b) through (e) of))40 C.F.R. Section 35.3535 ((of the SDWA,)) including, but not limited to:

(i) DWSRF program administration;

(ii) Technical assistance specific to small public water systems;

(iii) State drinking water program management; and

(iv) Local assistance and other state programs.

AMENDATORY SECTION(Amending WSR 16-14-086, filed 7/5/16, effective 8/5/16)

WAC 246-296-060Establishing a DWSRF loan fee, loan fee account, and loan fee uses.

(1) The department shall:

(a) Establish the terms of a DWSRF loan fee; and

(b) Annually set the DWSRF loan fee amount.

(2) The department shall set the DWSRF loan fee for each project.

(3) The DWSRF loan amount may include the DWSRF loan fee.

(4) The department shall determine the amount of DWSRF loan fee account funds to be used for program administration.

(5) The department shall use DWSRF loan fees ((only)) for program administration activities and for projects in accordance with WAC 246-296-040.

(6) The department shall deposit and retain DWSRF fees in a dedicated DWSRF loan fee account.

AMENDATORY SECTION(Amending WSR 12-01-077, filed 12/19/11, effective 2/1/12)

WAC 246-296-080Ineligible projects and project-related costs.

Except for projects and project-related costs under subsections (1) and (2) of this section, which are considered eligible to receive funds when EPA grants a deviation as allowed under Section 1452 of the SWDA, the following projects and project-related costs ((that)) are not eligible for assistance from the DWSRF program ((include)):

(1) Acquiring, building, or repairing dams or raw water reservoirs;

(2) Acquiring water rights, except if the water rights are owned by a public water system that is being acquired by restructuring;

(3) Laboratory costs for monitoring;

(4) Operation and maintenance costs;

(5) Projects needed primarily for fire protection;

(6) Projects needed primarily to serve future population growth;

(7) Projects that have received assistance from the national set-aside for Indian tribes and Alaska native villages under Section 1452(i) of the SDWA;

(8) Projects for an individual water supply system or a Group B public water system unless the public water system is being restructured into a Group A public water system under WAC 246-296-110; and

(9) Projects that are solely for the purpose of installing service meters.