Arkansas Administrative Code

15 CAR § 26-1007. Publicly owned alternative systems. (a) Eligible costs. Eligible costs for publicly owned alternative collection and treatment systems for residences and small commercial establishments as defined by this part include: (1) The cost of major rehabilitation, upgra…

15 CAR § 26-1008. Real property. (a) Eligible costs for land, easements, and rights-of-way include the: (1) Cost (including associated legal, administrative, and engineering costs) of land acquired in a fee simple manner for the construction of wastewater treatment facilities, in…

15 CAR § 26-1009. Equipment, material, and supplies. (a) Eligible costs of equipment, material, and supplies include: (1) The cost of a reasonable inventory of laboratory chemicals and supplies necessary to initiate plant operations and laboratory items necessary to conduct tests…

15 CAR § 26-101. Policy statement — Interpretation and application of this part. (a)(1) It is the duty and policy of the Arkansas Natural Resources Commission to fully and expeditiously implement and administer the objectives, purposes, and intent of the Clean Water Revolving Loa…

15 CAR § 26-1010. Infiltration/inflow. Eligible costs include the cost of wastewater facilities adequate to transport and treat nonexcessive infiltration/inflow and for sewer system rehabilitation necessary to eliminate excessive infiltration/inflow as determined in a sewer syste…

15 CAR § 26-1011. Miscellaneous costs. (a) Eligible costs include: (1) Unless otherwise specified in this part, the costs of meeting specific statutory and regulatory procedures for the project; (2) Costs of royalties for or rights in a patented process or product with the prior …

15 CAR § 26-102. Definitions. The following words and terms, when used in this part, shall have the following meanings, unless the context clearly indicates otherwise: (1) “Act” means the Federal Water Pollution Control Act of 1972, as amended, 33 U.S.C. § 1251 et seq.; (2)(A) “A…

15 CAR § 26-103. Policy declarations. (a) General. (1)(A) The 1987 amendments to the Act created and provided federal funding for state water pollution control revolving loan programs. (B) These programs are intended to be perpetual funds providing low interest loan assistance fo…

15 CAR § 26-201. Eligible activities of the CWRLF program. (a) General. (1)(A) The CWRLF program is funded in part by a capitalization grant from the United States Environmental Protection Agency. (B) As required by 40 C.F.R. § 35.3100 et seq., State Revolving Fund Program Implem…

15 CAR § 26-202. Lending rate. (a)(1) The lending rate for the CWRLF program will be set by the Director of the Arkansas Natural Resources Commission. (2) The lending rate is made up of the subsidized interest rate and the financing fee. (3) Either of these rates may be revised a…

15 CAR § 26-203. Obligation period. Funds allotted by Title VI shall be available for obligation to the state for one (1) year after the close of the federal fiscal year for which the funds are authorized.

15 CAR § 26-204. Reserves. (a) According to Section 604(b), the Director of the Arkansas Natural Resources Commission shall reserve some of the state's allotment from each federal fiscal year for planning under Section 205(j) and Section 303(e) of the Act. (b) The reserve for non…

15 CAR § 26-205. Revisions. For the purposes of this part, there will be three (3) types of revisions: (1)(A) Major revisions. (B) According to the Act, the Arkansas Natural Resources Commission shall hold public hearings to consider adoption and approval of the priority list, th…

15 CAR § 26-206. Audit. (a) The Administrator of the United States Environmental Protection Agency will conduct or require the state to have an independently conducted financial and compliance audit of the CWRLF program. (b) The audit shall be conducted according to the auditing …

15 CAR § 26-207. Capitalization grant application. The Arkansas Natural Resources Commission staff shall submit the intended use plan with an application for the federal capitalization grant to the United States Environmental Protection Agency.

15 CAR § 26-208. Project priority list. (a)(1) The project priority list is an ordered listing, prepared according to the priority system, of projects anticipated to receive loans. (2) All projects eligible for loan assistance must be included on the state's project priority list…

15 CAR § 26-209. Intended use plan. (a)(1) Each fiscal year after the United States Congress appropriates and the state receives its allocation of funds for the CWRLF, the Arkansas Natural Resources Commission staff shall prepare an intended use plan that shall be subjected to pu…

15 CAR § 26-210. CWRLF financing. (a) The CWRLF has been established to help and encourage communities to construct and/or improve wastewater systems required to improve water quality and public health with low-interest financial assistance. (b) Communities requesting assistance …

15 CAR § 26-211. Procurement. (a)(1) In the CWRLF program, each borrower will be expected to obtain the services of: (A) A consulting engineer; (B) Bond counsel; and (C) Construction contractor or contractors. (2) All procurement transactions shall be conducted in a way that prov…

15 CAR § 26-301. Preplanning conference. (a) Potential applicants shall confer with the Arkansas Natural Resources Commission staff as early in the planning process as practical. (b) During the conference the staff will provide information, advice, instruction, and guidance on th…

15 CAR § 26-302. Preapplication documents. Before entering into a memorandum of agreement as described in 15 CAR § 26-303, the applicant must submit the following documents: (1)(A) A resolution from the governing body naming the applicant's signatory authority or authorities for …

15 CAR § 26-303. Memorandum of agreement. (a)(1) The Arkansas Natural Resources Commission staff will regulate the number and timing of projects receiving assistance in a given fiscal year through the execution of a memorandum of agreement. (2) This will be done to: (A) Maintain …

15 CAR § 26-304. Engineering report. (a) The applicant shall submit two (2) copies of the engineering report, including environmental information, for review. (b)(1) The Arkansas Natural Resources Commission staff will approve the engineering report after confirming that the appr…

15 CAR § 26-305. Required environmental review and determination. (a) As required by the provisions of Section 602(b)(6) of the Act, the Arkansas Natural Resources Commission staff will conduct an environmental review of the project proposed for funding from the CWRLF program. (b…

15 CAR § 26-306. Planning and design costs. (a)(1) Temporary loans to provide applicants funding for planning and design costs may be provided if funds are available. (2) The Arkansas Natural Resources Commission staff reserves the right to refuse issuance of a planning and desig…

15 CAR § 26-307. Application process. An application shall be filed with the Arkansas Natural Resources Commission staff that contains the following information: (1) General information. General information such as the names, titles, addresses, and phone numbers for the signatory…

15 CAR § 26-308. User charge ordinance. (a) Using sewer rates. (1) Before enactment, the applicant shall submit a proposed user charge ordinance and rate structure documentation establishing the rates that will be charged for each class of sewer customers. (2) Upon approval of th…

15 CAR § 26-309. Intergovernmental agreements. (a) The applicant shall submit a copy of any actual or proposed intergovernmental contract under which the applicant either will: (1) Use another system for treatment; or (2) Receive wastewater for treatment. (b) Before loan closing,…

15 CAR § 26-310. Review of applications. The Arkansas Natural Resources Commission staff shall review the application for funds and present it to the Director of the Arkansas Natural Resources Commission or his or her designee for certification only after the following requiremen…

15 CAR § 26-311. Bond ordinance. (a)(1) The borrower shall direct its bond counsel to prepare a bond ordinance according to the term sheet provided by the Arkansas Natural Resources Commission staff. (2) The bond counsel shall assure that the ordinance is enacted according to sta…

15 CAR § 26-312. Bond purchase agreement. (a)(1) Upon enactment of the bond ordinance, the applicant will enter into a bond purchase agreement with the Arkansas Natural Resources Commission staff. (2) The bond purchase agreement shall be prepared by the borrower's bond counsel ac…

15 CAR § 26-313. Loan closing. (a)(1) Upon enactment of the bond ordinance and execution of the bond purchase agreement, the borrower's bond counsel shall arrange a loan closing according to Arkansas Natural Resources Commission staff requirements. (2) Before loan closing, the bo…

15 CAR § 26-314. Audit. (a)(1) The borrower's annual audits must comply with the provisions of the United States Office of Management and Budget’s Circular No. A-133, “Audits of States, Local Governments, and Non-Profit Organizations”. (2) This is only for those fiscal years in w…

15 CAR § 26-401. Value engineering. (a) Borrowers will be required by the Arkansas Natural Resources Commission staff to perform value engineering if the estimated cost of building the wastewater facilities is twenty million dollars ($20,000,000) or more. (b) The borrower shall u…

15 CAR § 26-402. Plans and specifications. (a)(1) The borrower shall prepare: (A) Plans and specifications for constructing the proposed project; and (B) A final engineering design report on all significant elements of the project. (2)(A) These documents shall conform to Recommen…

15 CAR § 26-403. Approval of plans and specifications. (a) The Arkansas Natural Resources Commission staff approval of the plans and specifications does not relieve the borrower of any liabilities or responsibilities with respect to the design, construction, operation, or perform…

15 CAR § 26-501. Disbursement requests. (a) General. (1) The borrower may request the disbursement of loan funds by providing necessary documents as appropriate and consistent with this part. (2) Disbursements will only be made for costs incurred pursuant to work done on the proj…

15 CAR § 26-502. The Arkansas Development Finance Authority’s administrative fee. (a) The Arkansas Development Finance Authority shall be reimbursed for program administration costs by fees collected from each borrower. (b) The fees will be assessed according to the interagency a…

15 CAR § 26-503. The Arkansas Natural Resources Commission’s administrative fee. (a) Each borrower that has gone through loan closing shall be charged an administrative fee that will be used to defray the costs of the Arkansas Natural Resources Commission staff in administering t…

15 CAR § 26-504. Fidelity bond requirements. (a) The borrower shall furnish to the Arkansas Natural Resources Commission staff evidence that the treasurer of the borrower has a fidelity bond. (b) The amount of the bond must be at least equal to the amount of funds in his or her p…

15 CAR § 26-601. Awarding construction contracts. (a)(1) The borrower shall obtain authorization from the Arkansas Natural Resources Commission staff before advertising for bids on the project. (2) All addenda to correct errors, to clarify information in the bidding documents, or…

15 CAR § 26-602. Timely construction progress. (a) The borrower: (1) Shall agree to initiate and complete the construction of the project quickly; (2) Shall request a construction schedule from the contractor; (3) Will monitor the contractor's performance regarding the schedule; …

15 CAR § 26-603. Inspection during construction. (a) Resident inspection. (1) The borrower shall provide for full-time inspection of the project by the consulting engineer or the borrower’s engineering staff. (2) This will be done to ensure the work is being performed according t…

15 CAR § 26-604. Alterations in approved plans and specifications. (a)(1) Should it become apparent after contract award that changes in the approved plans and/or specifications are necessary or appropriate, a change order including written justification shall be submitted to the…

15 CAR § 26-605. Contractor insolvency. In the event of contractor insolvency, any agreements that the borrower may enter into with the bonding company must be submitted for Arkansas Natural Resources Commission staff approval.

15 CAR § 26-606. Operation and maintenance manual and record drawings. (a)(1) The borrower shall prepare an operation and maintenance manual for Arkansas Natural Resources Commission staff approval for all projects involving the construction or modification of wastewater treatmen…

15 CAR § 26-607. Construction completion and final inspection. (a)(1) The borrower shall provide the Arkansas Natural Resources Commission staff with notification that the project is complete and make a written request to the commission staff for final inspection. (2) The commiss…

15 CAR § 26-701. Responsibilities of borrower. (a)(1) After the satisfactory completion of the project, the borrower shall be held accountable by the Arkansas Natural Resources Commission for the continued validity of all representations and assurances made to the commission staf…

15 CAR § 26-702. Project performance certification. (a) The borrower shall retain the engineering firm responsible for providing engineering services during construction as the prime engineer to provide the services required by the project performance work plan during the first y…

15 CAR § 26-703. Repayment schedule. (a) Repayment to the CWRLF by the borrower shall be according to the terms of the loan agreement. (b)(1) Upon an event of default under the loan, ordinance, or resolution of the borrower authorizing the loan, all available remedies allowed by …