49-1308. Long-term water augmentation financial assistance; procedures

A. In compliance with any applicable requirements, an eligible entity may apply to the authority for and accept and incur indebtedness as a result of financial assistance from the long-term water augmentation fund for water supply development projects.

B. The authority shall:

1. Prescribe a simplified form and procedure to apply for and approve financial assistance.

2. Establish by rule criteria by which financial assistance will be awarded, including:

(a) For any financial assistance:

(i) A determination of the applicant's financial ability to construct, operate and maintain the project if it receives the assistance.

(ii) A determination of the applicant's ability to manage the project.

(iii) A determination of the applicant's ability to meet any applicable environmental requirements imposed by federal or state agencies.

(iv) A determination of the applicant's ability to acquire any necessary regulatory permits.

(v) Requirements for local participation in project costs, if deemed advisable by the authority.

(b) If the applicant is applying for a loan:

(i) A determination of the ability of the applicant to repay a loan according to the terms and conditions established by this chapter. At the option of the authority, the existence of a current investment grade rating on existing debt of the applicant that is secured by the same revenues to be pledged to secure repayment under the loan repayment agreement constitutes evidence regarding ability to repay a loan.

(ii) A determination of the applicant's legal capability to enter into a loan repayment agreement.

3. Determine the order and priority of projects assisted under this article based on the merits of the application with respect to water supply development criteria set forth in section 49-1304.

C. The authority shall review on its merits each application received and shall inform the applicant of the authority's determination. If the application is not approved, the authority shall notify the applicant, stating the reasons. If the application is approved, the authority may condition the approval on assurances the authority deems necessary to ensure that the financial assistance will be used according to law and the terms of the application.