Bill Text: OR HB2238 | 2013 | Regular Session | Introduced

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Bill Title: Relating to a clean water grant program for public agencies.

Spectrum: Unknown

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2238 Detail]

Download: Oregon-2013-HB2238-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 550

                         House Bill 2238

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of Governor John A. Kitzhaber, M.D., for
  Department of Environmental Quality)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Changes name of Assessment Deferral Loan Program Revolving Fund
to Small Community Clean Water Grant Program Revolving Fund.
Specifies conditions for grants made from fund. Specifies
requirements for public agencies that receive funding.

                        A BILL FOR AN ACT
Relating to a clean water grant program for public agencies;
  creating new provisions; amending ORS 454.430, 454.433,
  454.436, 454.439, 454.442 and 468.220; and repealing ORS
  454.445.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 454.430 is amended to read:
  454.430. As used in ORS 454.430 to 454.445:
    { - (1) 'Assessment' includes all costs, fees or other
charges for the construction of or connection to sewage treatment
works that are eligible for installment payments under ORS
223.205 to 223.775. - }
    { - (2) 'Commission' means the Environmental Quality
Commission. - }
    { - (3) 'Department' means the Department of Environmental
Quality. - }
    { - (4) 'Extreme financial hardship' has the meaning given
within the assessment deferral programs adopted by public
agencies and approved by the Department of Environmental
Quality. - }
    { - (5) - }   { + (1) + } 'Public agency' means any state
agency, incorporated city, county, sanitary authority, county
service district, sanitary district, metropolitan service
district or other special district authorized to construct water
pollution control facilities { + , or a federally recognized
Indian tribal government + }.
    { - (6) 'Treatment works' means a sewage collection
system. - }
   { +  (2) 'Small community' means:
  (a) A city, including areas within a city's urban growth
boundary, or an urban unincorporated community, that has a
population of 5,000 or less; or

  (b) A community within the reservation of a federally
recognized Indian tribe that is provided with services related to
water pollution control by a public agency. + }
  SECTION 2. ORS 454.433 is amended to read:
  454.433. It is declared to be the policy of this state  { + to
provide financial assistance to small communities for the
construction, upgrade and repair of wastewater treatment and
disposal systems through a grant program administered by the
Department of Environmental Quality. + }  { - : - }
    { - (1) To provide assistance to property owners who will
experience extreme financial hardship resulting from payment of
assessed costs for the construction of treatment works required
by a federal grant agreement or an order issued by a state
commission or agency. - }
    { - (2) To provide assistance through an interest loan
program to defer all or part of property assessments. - }
    { - (3) To capitalize an assessment deferral loan program
with moneys available in the Pollution Control Fund, available
federal funds or available local funds. - }
  SECTION 3. ORS 454.436 is amended to read:
  454.436. (1)   { - There is established the Assessment Deferral
Loan - }   { + The Small Community Clean Water Grant + } Program
Revolving Fund  { +  is established + } separate and distinct
from the General Fund   { - in the State Treasury - } . The
moneys in the   { - Assessment Deferral Loan - }  { + Small
Community Clean Water Grant + } Program Revolving Fund are
  { - appropriated - }  continuously  { + appropriated + } to the
Department of Environmental Quality to be used for the purposes
described in ORS 454.439.
  (2) The   { - Assessment Deferral Loan - }   { + Small
Community Clean Water Grant + } Program Revolving Fund may be
capitalized from any one or a combination of the following
sources of funds in an amount sufficient to fund   { - assessment
deferral loan - }  programs provided for in ORS 454.439:
  (a) From the Water Pollution Control Revolving Fund.
  (b) From capitalization grants or loans from the Pollution
Control Fund.
  (3) In addition to those funds used to capitalize the
  { - Assessment Deferral Loan - }   { + Small Community Clean
Water Grant + } Program Revolving Fund, the fund shall consist
of:
  (a) Any other revenues derived from gifts, grants or bequests
pledged to the state for the purpose of providing financial
assistance to water pollution control projects;
  (b) All repayments of money borrowed from the fund;
  (c) All interest payments made by borrowers from the fund;
  (d) Any other fee or charge levied in conjunction with
administration of the fund; and
  (e) Any available local funds.
  (4) The State Treasurer may invest and reinvest moneys in the
  { - Assessment Deferral Loan - }   { + Small Community Clean
Water Grant + } Program Revolving Fund in the manner provided by
law. All earnings from such investment and reinvestment shall be
credited to the
  { - Assessment Deferral Loan - }   { + Small Community Clean
Water Grant + } Program Revolving Fund.
  SECTION 4.  { + (1) The amendments to ORS 454.436 by section 3
of this 2013 Act are intended to change the name of the
Assessment Deferral Loan Program Revolving Fund to the Small
Community Clean Water Grant Program Revolving Fund.
  (2) For the purpose of harmonizing and clarifying statutory
law, the Legislative Counsel may substitute for words designating
the Assessment Deferral Loan Program Revolving Fund, wherever
they occur in statutory law, words designating the Small
Community Clean Water Grant Program Revolving Fund. + }

  SECTION 5. ORS 454.439, as amended by section 15, chapter 107,
Oregon Laws 2012, is amended to read:
  454.439. (1) The Department of Environmental Quality shall use
the moneys in the   { - Assessment Deferral Loan - }   { + Small
Community Clean Water Grant + } Program Revolving Fund to provide
 { - funds for assessment deferral loan programs administered
by - }   { + grants to + } public agencies  { + for programs + }
that meet all of the following conditions:
    { - (a) The program demonstrates that assessments or charges
in lieu of assessments levied against benefited properties for
construction of treatment works required by a federal grant
agreement or by an order issued by a state commission or agency
will subject property owners to extreme financial hardship. - }
   { +  (a) The program serves a small community that has a
median household income that is equal to or less than the median
household income for this state based upon data obtained from the
latest federal decennial census or upon other data that the
department deems to be reliable. + }
  (b) The governing body   { - has - }   { + of the public agency
must have + } adopted a program   { - and the department has
approved the program. - }  { + for the construction, upgrade or
repair of a wastewater treatment or disposal system. A program
may include:
  (A) Any project in a small community eligible for funding under
ORS 468.423 to 468.440.
  (B) The repair or replacement of equipment or materials
integral to the function of a public agency's sewage collection
system or wastewater treatment works in a small community.
  (C) A project of a public agency that subsidizes the cost of
the replacement or repair of a subsurface sewage disposal system
in a small community owned by a person making less than 100
percent of the median household income for this state based upon
data obtained from the latest federal decennial census or upon
other data that the department deems to be reliable, if the
existing subsurface sewage disposal system is not functioning
properly and either is causing water pollution or is a risk to
public health.
  (c) Except for federally recognized Indian tribal governments,
for programs related to a public agency's sewage collection
system or wastewater treatment works in a small community, the
department must have approved a program for the construction,
upgrade or repair of the public agency's sewage collection system
or wastewater treatment works, or the public agency must propose
to undertake predesign studies that may be used to develop a
program for the construction, upgrade or repair of the public
agency's sewage collection system or wastewater treatment
works. + }
    { - (c) - }   { + (d) + } The  { + wastewater + } treatment
 { - works meets - }   { + or disposal system must meet + } the
requirements of   { - section 2, - }  Article XI-H { + , section
2, + } of the Oregon Constitution { + , + } concerning
eligibility of pollution control bond funds { +  if the project
is to be funded using pollution control bond funds in the Small
Community Clean Water Grant Program Revolving Fund + }.
   { +  (2) A public agency may submit only one application per
grant cycle to the department for a grant from the Small
Community Clean Water Grant Program Revolving Fund. + }
    { - (2) The department also may use the moneys in the
Assessment Deferral Loan Program Revolving Fund to pay the
expenses of the department in administering the Assessment
Deferral Loan Program Revolving Fund and to repay capitalization
loans. - }
  (3) In administering the   { - Assessment Deferral Loan - }
 { + Small Community Clean Water Grant + } Program Revolving
Fund, the department shall:

  (a) Allocate funds to public agencies for   { - assessment
deferral loan programs in accordance with a priority list adopted
by the Environmental Quality Commission. - }   { + grants of not
less than $5,000 and not more than $60,000 per project, taking
into account the following:
  (A) The amount of moneys remaining in the Small Community Clean
Water Grant Program Revolving Fund.
  (B) The number of eligible applicants.
  (C) The costs of the projects.
  (D) The ability of the community to finance the project from
its own revenues or from other sources of grants or loans.
  (E) The ability of the community to financially support the
operation, maintenance and replacement costs for the project.
  (F) The benefits of the project for improved water quality.
  (G) The benefits of the project for improved public health. + }
  (b) Use accounting, audit and fiscal procedures that conform to
generally accepted government accounting standards.
    { - (c) Prepare any reports required by the federal
government as a condition to the award of federal capitalization
grants. - }
    { - (4) The Department of Environmental Quality shall submit
an informational report to the Joint Committee on Ways and Means
or, if during the interim between sessions of the Legislative
Assembly, to the Emergency Board or to the Joint Interim
Committee on Ways and Means before awarding the first loan from
the Assessment Deferral Loan Program Revolving Fund. The report
shall describe the assessment deferral loan program and set forth
in detail the operating procedures of the program. - }
   { +  (4)(a) The department shall award grants under this
section once each fiscal year. The department may award grants in
an amount less than the amount applied for in the grant
application.
  (b) In each fiscal year, the department may award grants whose
total amount is less than the total amount of moneys in the Small
Community Clean Water Grant Program Revolving Fund. If moneys
remain available in the fund at the end of a fiscal year, the
department may use the remaining moneys to provide grants in a
subsequent fiscal year. + }
  SECTION 6. ORS 454.442 is amended to read:
  454.442. Any public agency desiring   { - funding of its
assessment deferral loan program from the Assessment Deferral
Loan Program Revolving Fund may borrow from the Assessment
Deferral Loan Program Revolving Fund in accordance - }   { + a
grant from the Department of Environmental Quality from the Small
Community Clean Water Grant Program Revolving Fund must
comply + } with the procedures contained in ORS 454.430 to
454.445 and 468.220  { - . The public agency shall - }  { +
and + } submit an application to the Department of Environmental
Quality on a form provided by the department. After final
approval of the application, the department shall offer the
public agency funds from the   { - Assessment Deferral Loan - }
 { + Small Community Clean Water Grant + } Program Revolving Fund
through a
  { - loan - }   { + grant + } agreement with terms and
conditions that:
    { - (1) Require the public agency to repay the loan with
interest according to a repayment schedule corresponding to
provisions governing repayment of deferred assessments by
property owners as defined in the public agency's adopted
assessment deferral loan program; - }
    { - (2) Require the public agency to secure the loan with an
assessment deferral loan program financing lien as described in
ORS 454.445; and - }
    { - (3) Limit the funds of the public agency that are
obligated to repay the loan to proceeds from repayment of
deferred assessments by property owners participating in the
assessment deferral loan program adopted by the public
agency. - }
   { +  (1) Specify project costs eligible for funding under a
grant.
  (2) Require the public agency to comply with all federal, state
and local laws and ordinances applicable to the activities to be
performed under the grant agreement.
  (3) Specify recordkeeping and reporting requirements and
requirements regarding invoices for expenditures under a grant.
The department may approve advance payments under a grant
agreement only if the department determines the advance payments
are necessary for the success of the project. + }
  SECTION 7.  { + ORS 454.445 is repealed. + }
  SECTION 8.  { + The repeal of ORS 454.445 by section 7 of this
2013 Act does not affect the validity of any liens against
assessed property that arose under the provisions of ORS 454.445
prior to the effective date of the repeal by section 7 of this
2013 Act. + }
  SECTION 9. ORS 468.220, as amended by section 16, chapter 107,
Oregon Laws 2012, is amended to read:
  468.220. (1) The Department of Environmental Quality is the
agency for the State of Oregon for the administration of the
Pollution Control Fund. The department is authorized to use the
Pollution Control Fund for one or more of the following purposes:
  (a) To grant funds not to exceed 30 percent of total project
costs for eligible projects as defined in ORS 454.505 or sewerage
systems as defined in ORS 468B.005.
  (b) To acquire, by purchase, or otherwise, general obligation
bonds or other obligations of any municipal corporation, city,
county, or agency of the State of Oregon, or combinations
thereof, issued or made for the purpose of paragraph (a) of this
subsection in an amount not to exceed 100 percent of the total
project costs for eligible projects.
  (c) To acquire, by purchase, or otherwise, other obligations of
any city that are authorized by its charter in an amount not to
exceed 100 percent of the total project costs for eligible
projects.
  (d) To grant funds not to exceed 30 percent of the total
project costs for facilities for the disposal of solid waste,
including without being limited to, transfer and resource
recovery facilities.
  (e) To make loans or grants to any municipal corporation, city,
county, or agency of the State of Oregon, or combinations
thereof, for planning of eligible projects as defined in ORS
454.505, sewerage systems as defined by ORS 468B.005 or
facilities for the disposal of solid waste, including without
being limited to, transfer and resource recovery facilities.
Grants made under this paragraph shall be considered a part of
any grant authorized by paragraph (a) or (d) of this subsection
if the project is approved.
  (f) To acquire, by purchase, or otherwise, general obligation
bonds or other obligations of any municipal corporation, city,
county, or agency of the State of Oregon, or combinations
thereof, issued or made for the purpose of paragraph (d) of this
subsection in an amount not to exceed 100 percent of the total
project costs.
  (g) To advance funds by contract, loan or otherwise, to any
municipal corporation, city, county or agency of the State of
Oregon, or combination thereof, for the purpose of paragraphs (a)
and (d) of this subsection in an amount not to exceed 100 percent
of the total project costs.
  (h) To pay compensation required by law to be paid by the state
for the acquisition of real property for the disposal by storage
of environmentally hazardous wastes.

  (i) To dispose of environmentally hazardous wastes by the
Department of Environmental Quality whenever the department finds
that an emergency exists requiring such disposal.
  (j) To acquire for the state real property and facilities for
the disposal by landfill, storage or otherwise of solid waste,
including but not limited to, transfer and resource recovery
facilities.
  (k) To acquire for the state real property and facilities for
the disposal by incineration or otherwise of hazardous waste or
PCB.
  (L) To provide funding for the   { - Assessment Deferral
Loan - }  { +  Small Community Clean Water Grant + } Program
Revolving Fund established in ORS 454.436.
  (m) To provide funding for the Orphan Site Account established
in ORS 465.381 but only to the extent that the department
reasonably estimates that debt service from bonds issued to
finance such facilities or activities shall be fully paid from
fees collected pursuant to ORS 453.402 (2)(c), under ORS 459.236
and under ORS 465.101 to 465.131 for the purpose of providing
funds for the Orphan Site Account and other available funds, but
not from repayments of financial assistance under ORS 465.265 to
465.310 or from moneys recovered from responsible parties.
  (n) To advance funds by contract, loan or otherwise, to any
municipal corporation, city, county or agency of this state, or
combination thereof, for facilities or activities related to
removal or remedial action of hazardous substances.
  (o) To provide funding for the Water Pollution Control
Revolving Fund established under ORS 468.427, either as a grant
or an advance. If the funding provided is an advance, the
department shall establish the program described in ORS 468.433
(2) to pay the bonds that funded the advance.
  (p) To fund loans to or buy debt obligations of a public
agency, as defined in ORS 468.423, that finance the costs of
treatment works, as defined in ORS 468.423, which are funded in
part through the Water Pollution Control Revolving Fund.
  (q) To provide funding for remedial actions related to
contaminated sediment found in the submerged and submersible
lands, as those terms are defined in ORS 274.005, within the
Willamette River between Swan Island and the confluence of the
Willamette and Columbia Rivers and associated remedial actions.
The funding provided under this paragraph may be used for
remedial action costs, as defined in ORS 465.200.
  (2) The facilities referred to in subsection (1)(a) to (c) of
this section shall be only such as conservatively appear to the
department to be not less than 70 percent self-supporting and
self-liquidating from revenues, gifts, grants from the federal
government, user charges, assessments and other fees.
  (3) The facilities referred to subsection (1)(d), (f) and (g)
of this section shall be only such as conservatively appear to
the department to be not less than 70 percent self-supporting and
self-liquidating from revenues, gifts, grants from the federal
government, user charges, assessments and other fees.
  (4) The real property and facilities that receive funding under
subsection (1)(j), (k), (o) and (p) of this section shall be only
such as conservatively appear to the department to be not less
than 70 percent self-supporting and self-liquidating from
revenues, gifts, grants from the federal government, user
charges, assessments and other fees.
  (5) The department may sell or pledge any bonds, notes or other
obligations acquired under subsection (1)(b) of this section.
  (6) Before making a loan or grant to or acquiring general
obligation bonds or other obligations of a municipal corporation,
city, county or agency for facilities for the disposal of solid
waste or planning for such facilities, the department shall
require the applicant to demonstrate that it has adopted a solid

waste management plan that has been approved by the department.
The plan must include a waste reduction program.
  (7) Any grant authorized by this section shall be made only
with the prior review of the Joint Committee on Ways and Means
during the legislative sessions or the Emergency Board or the
Joint Interim Committee on Ways and Means during the interim
period between sessions.
  (8) The department may assess those entities to whom grants and
loans are made under this section to recover expenses incurred in
administering this section.
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