2005 Idaho Code - 39-3627 — PAYMENTS BY STATE BOARD OF ENVIRONMENTAL QUALITY -- CONTRACTS WITH MUNICIPALITIES AND COMMUNITY AND NONPROFIT NONCOMMUNITY PUBLIC WATER SYSTEMS -- RULES -- APPROVAL OF ATTORNEY GENERAL -- AUDIT OF PAYMENTS

                                  TITLE  39
                              HEALTH AND SAFETY
                                  CHAPTER 36
                                WATER QUALITY
    39-3627.  PAYMENTS BY STATE BOARD OF ENVIRONMENTAL QUALITY -- CONTRACTS
WITH MUNICIPALITIES AND COMMUNITY AND NONPROFIT NONCOMMUNITY PUBLIC WATER
SYSTEMS -- RULES -- APPROVAL OF ATTORNEY GENERAL -- AUDIT OF PAYMENTS. (1) The
Idaho board of environmental quality may make payments not to exceed ninety
percent (90%) of the estimated reasonable cost of an eligible construction
project funded by a grant. Payments may be made which are equal to one hundred
percent (100%) of the estimated reasonable cost of an eligible construction
project funded by a loan.
    (2)  The Idaho board of environmental quality may, in the name of the
state of Idaho, enter into contracts with municipalities and community and
nonprofit noncommunity public water systems and any such municipality and
community and nonprofit noncommunity public water system may enter into a
contract with the Idaho board of environmental quality, concerning eligible
construction projects. Any such contract may include such provisions as may be
agreed upon by the parties thereto, and shall include, in substance, the
following provisions:
    (a)  An estimate of the reasonable cost of the project as determined by
    the Idaho board of environmental quality.
    (b)  An agreement by the municipality or community and nonprofit
    noncommunity public drinking water system, binding for the actual service
    life of the sewage treatment works or the actual service life of the
    community and nonprofit noncommunity public drinking water system:
         (i)    To proceed expeditiously with, and complete, the project in
         accordance with plans approved pursuant to section 39-118, Idaho
         Code.
         (ii)   To commence operation of the sewage treatment works or
         community and nonprofit noncommunity public drinking water system on
         completion of the project, and not to discontinue operation or
         dispose of the sewage treatment works or community and nonprofit
         noncommunity public drinking water system without the approval of the
         board of environmental quality.
         (iii)  To operate and maintain the sewage treatment works or
         community and nonprofit noncommunity public drinking water system in
         accordance with applicable provisions and rules of the board.
         (iv)   To make available on an equitable basis the services of the
         sewage treatment works or community and nonprofit noncommunity public
         drinking water system to the residents and commercial and industrial
         establishments of areas it was designed to serve.
         (v)    To provide for the payment of the municipality's share or the
         community and nonprofit noncommunity public drinking water system's
         share of the cost of the project when the project is built using
         grant funds.
         (vi)   To develop and to secure the approval of the department of
         plans for the operation and maintenance of the sewage treatment works
         or community and nonprofit noncommunity public drinking water system;
         and of plans and programs for the recovery of the capital costs and
         operating expenses of the works or system.
         (vii)  To allow the board to make loans of up to one hundred percent
         (100%) and supplemental grants based upon financial capability to a
         municipality for the estimated reasonable cost of an eligible
         project, which may include treatment of nondomestic wastewater.
         (viii) To provide for the accumulation of funds through the use of
         taxing powers, through charges made for services, through revenue
         bonds, or otherwise, for the purposes of: (1) capital replacement,
         (2) future improvement, betterment, and extension of such works
         occasioned by increased wastewater loadings on the works, and (3)
         establishing a fund dedicated solely to repayment of principal and
         interest of loans made subsequent to this chapter.
         (ix)   To commence annual principal and interest payments not later
         than one (1) year from the date construction is completed and to
         provide for full amortization of loans not later than twenty (20)
         years from the date project construction is completed.
    (c)  The terms under which the Idaho board of environmental quality may
    unilaterally terminate the contract and/or seek repayment from the
    municipality or community and nonprofit noncommunity public drinking water
    system of sums already paid pursuant to the contract for noncompliance by
    the municipality with the terms and conditions of the contract and the
    provisions of this chapter.
    (3)  The board of environmental quality may, in the name of the state of
Idaho, enter into loan contracts with applicants for the implementation of
nonpoint source pollution control programs. To be eligible for a loan the
project proposed by an applicant must be consistent with the state nonpoint
source management plan. Up to five percent (5%) of the total state revolving
loan fund may be used for nonpoint source pollution control projects which
demonstrate a benefit/nexus to a municipality.
    (4)  The board may adopt rules necessary for the making and enforcing of
contracts hereunder and establishing procedures to be followed in applying for
state construction grants or loans or training grants herein authorized as
shall be necessary for the effective administration of the grants and loans
program.
    (5)  All contracts entered into pursuant to this section shall be subject
to approval by the attorney general as to form. All payments by the state
pursuant to such contracts shall be made after audit and upon warrant as
provided by law on vouchers approved by the director.