13382331, 62-503.200 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 13382331

Notice of Proposed Rule

Department:

DEPARTMENT OF ENVIRONMENTAL PROTECTION

Chapter:

STATE REVOLVING FUND LOAN PROGRAM

Overview

RULE:

62-503.200	Definitions
62-503.300	General Program Information
62-503.430	Loan Applications and Agreements
62-503.500	Funds Reserved for Specific Purposes
62-503.600	Priority List Information (Repealed)
62-503.700	Planning, Design, Construction, and Procurement Requirements
62-503.751	Environmental Review
62-503.800	Audits Required
62-503.850	Exceptions to Program Requirements

PURPOSE:

Amendments to Chapter 62-503, F.A.C., are proposed to clarify administrative procedures, delete unnecessary or redundant language, better define allowable and unallowable costs, restructure the priority system, and to improve the methodology for calculating the financing rate.   Changes to the project priority system are being proposed so that projects addressing the Department’s core mission will receive the highest priority.  These revisions would align the program’s priority system with the priorities of other Department programs.  Changes in the financing rate formula will generally increase the base financing rate slightly, especially at current market rates, however the financing rate reductions proposed for implemented asset management plans, innovative/alternative projects, and new federal requirements for construction projects will frequently result in a net decrease in the financing rate for the average sponsor.  The proposed changes will, however, result in an increase in financing rates during times when the bond market rates are somewhat higher that the current rate. This change was requested by the Division of Bond Finance to protect the AAA bond rating the program currently receives.  The degree to which a sponsor is financially disadvantaged will remain the primary factor in determining the amount of the subsidy.  The allowance for planning and design activities is being deleted and replaced with planning and design loans which will be reimbursed based on invoiced costs.  Also, the requirements for an acceptable asset management plan and qualifications for innovative/alternative projects are being incorporated to define what is expected to qualify for the financing rate incentives.

SUMMARY:

Rule 62-503.200, F.A.C., is being amended to incorporate new definitions and to revise existing definitions. New definitions for “Inflow/Infiltration project,” “planning loan,” “design loan,” and “construction loan” are proposed to provide clarification on the requirements of each type of loan available.  New definitions have also been included for “Asset Management Plan”, “Innovative/Alternative project”, “segment cap”, “septic tank failure”,  “waiting portion”, and loan service fee.  Rule 62-503.300, F.A.C., establishes new deadlines for project submittals, clarifies allowable and unallowable project costs, and adds separate planning loans and design loans in place of preconstruction loans along with the required submittals to qualify for each type of loan.  Proposed changes include a new formula for calculating the financing rate and financing rate incentives for implementing asset management plans and constructing innovative/alternative projects, as well as reductions for new federal requirements.  The project priority system was moved to this section and would be changed to align with Department and EPA priorities.  Revisions to Rule 62-503.430, F.A.C., include moving the application requirements to this section and various clarifications on the agreement requirements.  The proposed changes to Rule 62-503.500, F.A.C., incorporate anticipated federal requirements for the program, allowing principal forgiveness and reserved funds for green projects as required by the federal government.  Rule 62-503.600, F.A.C., will be repealed and the language moved to Rule 62-503.300, F.A.C.  The proposed changes to Rule 62-503.700, F.A.C., are intended to clarify what is expected in planning and design documents as well as the procurement process for design/build and construction manager at-risk construction contracts. Revisions to Rules 62-503.751, 62-503.800, and 62-503.850, F.A.C., are minor updates and clarifications.
OTHER RULES INCORPORATING THIS RULE: 62-505.200, 62-505.300, and 62-505.350, F.A.C.
EFFECT ON THOSE OTHER RULES: The references to 62-503, F.A.C., that are currently in 62-505, F.A.C., will be amended as necessary to reflect changes in 62-503.

RULEMAKING AUTHORITY:

403.1835(10) and 403.1837(9) FS.

LAW:

403.1832, 403.1835, 403.031, 403.1837, and 215.97 FS.

PRINT PUBLISH DATE:

10/2/2013 Vol. 39/192

COMMENTS:

From 10/2/2013 To 10/23/2013 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

Ref-00134 Notice of Intent (NOI) to Use the Generic Permit for Pollutant Discharges to Surface Waters of the State From the Application of Pesticides - DEP Form 62-621.300(8)(f), F.A.C.

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