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12105120D
SENATE BILL NO. 494
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Senate Committee on Finance
on February 7, 2012)
(Patrons Prior to Substitute--Senators Watkins and Hanger)
A BILL to amend and reenact §§ 10.1-1186.01 and 62.1-241.12 of the Code of Virginia and to amend and reenact the third enactment of Chapters 851 and 900 of the Acts of Assembly of 2007, relating to reimbursement to localities of funds for upgrades of publicly owned treatment works and grants for CSO projects in Lynchburg and Richmond.

Be it enacted by the General Assembly of Virginia:

1.  That §§ 10.1-1186.01 and 62.1-241.12 of the Code of Virginia are amended and reenacted as follows:

§ 10.1-1186.01. Reimbursements to localities for upgrades to treatment works.

A. The General Assembly shall fund grants to finance the reasonable costs of design and installation of nutrient removal technology at the publicly owned treatment works designated as significant dischargers contained in subsection E, or as eligible nonsignificant dischargers as defined in § 10.1-2117. Notwithstanding § 10.1-2128, at such time as grant disbursements pursuant to this section reach 200 percent of the appropriations provided for in Chapter 951 of the Acts of Assembly of 2005 and Chapter 10 of the Acts of Assembly of 2006, Special Session I, the House Committee on Agriculture, Chesapeake and Natural Resources, the House Committee on Appropriations, the Senate Committee on Agriculture, Conservation and Natural Resources, and the Senate Committee on Finance shall review the future funding needs to meet the purposes of the Water Quality Improvement Act and the appropriate funding mechanism for such needs.

B. The disbursement of grants for the design and installation of nutrient removal technology at those publicly owned treatment works included in subsection E and eligible nonsignificant dischargers shall be made monthly based on a requisition submitted by the grant recipient in the form requested by the Department. Each requisition shall include written certification that the applicable local share of the cost of nutrient removal technology for that portion of the project covered by such requisition has been incurred or expended. Except as may otherwise be approved by the Department, disbursements shall not exceed 95 percent of the total grant amount until satisfactory completion of the project. The distribution of the grants shall be effected by one of the following methods:

1. In payments to be paid by the State Treasurer out of funds appropriated to the Water Quality Improvement Fund pursuant to § 10.1-2131;

2. Over a specified time through a contractual agreement entered into by the Treasury Board and approved by the Governor, on behalf of the Commonwealth, and the locality or public service authority undertaking the design and installation of nutrient removal technology, such payments to be paid by the State Treasurer out of funds appropriated to the Treasury Board; or

3. In payments to be paid by the State Treasurer upon request of the Director of Environmental Quality out of proceeds from bonds issued by the Virginia Public Building Authority, in consultation with the Department of Environmental Quality, pursuant to §§ 2.2-2261, 2.2-2263, and 2.2-2264, including the Commonwealth's share of the interest costs expended by the locality or regional authority for financing such project during the period from 50% 50 percent completion of construction to final completion of construction.

C. The General Assembly shall have the sole authority to determine whether disbursement will be made pursuant to subdivision B 1, B 2, or B 3, or a combination thereof;, provided that a disbursement shall only be made pursuant to subdivision B 3 upon a certification by the Department of Environmental Quality that project grant reimbursements for the fiscal year will exceed the available funds in the Water Quality Improvement Fund.

D. Exclusive of any deposits made pursuant to § 10.1-2128, the grants awarded pursuant to this section shall include such appropriations as provided for in Chapter 951 of the Acts of Assembly of 2005; and Chapter 10 of the Acts of Assembly of 2006, Special Session I.

E. The disbursement of grants to finance the costs of design and installation of nutrient removal technology at the following 89 85 publicly owned treatment works and other eligible nonsignificant dischargers shall be provided pursuant to the distribution methodology included in § 10.1-2131. However, in no case shall any publicly owned treatment works receive a grant of less than 35% 35 percent of the costs of the design and installation of nutrient removal technology.


 FACILITY NAME                         OWNER
 
 Shenandoah - Potomac River Basin
 
 ACSA-Fishersville STP                 Augusta County Service Authority
 Luray STP                             Town of Luray
 ACSA-Middle River Regional STP        Augusta County Service Authority
 HRRSA-North River WWTF
    Regional Sewer Authority           Harrisonburg-Rockingham
 ACSA-Stuarts Draft STP                Augusta County Service Authority
 Waynesboro STP                        City of Waynesboro
 ACSA-Weyers Cave STP                  Augusta County Service Authority
 Berryville STP                        Town of Berryville
 Front Royal STP                       Town of Front Royal
 Mount Jackson STP                     Town of Mount Jackson
 New Market STP                        Town of New Market
 Shenandoah Co.-North Fork
 
   Regional WWTP                      Shenandoah County
 Stoney Creek Sanitary District STP    Stoney Creek Sanitary District
 Strasburg STP                         Town of Strasburg
 Woodstock STP                         Town of Woodstock
 FWSA-Opequon Water Reclamation
    Facility Authority                 Frederick-Winchester Service
 FWSA-Parkins Mill WWTF Authority      Frederick-Winchester Service
 Purcellville-Basham  Simms WWTF       Town of Purcellville
 LCSA-Broad Run WRF                    Loudoun County Service Authority
 Leesburg WPCF                         Town of Leesburg
 Round Hill WWTP                       Town of Round Hill
 PWCSA-H.L. Mooney WWTF Authority      Prince William County Service
 Upper Occoquan Sewage Authority WWTP  Upper Occoquan Sewage Authority
 FCW&SA-Vint Hill WWTF                 Fauquier County Water and Sewer
                                          Authority
 Alexandria Sanitation Authority WWTP  Alexandria Sanitation Authority
 Arlington Co. WPCF                    Arlington County
 Fairfax Co. - Noman-Cole
    Pollution Control Facility         Fairfax County
 Stafford Co.-Aquia WWTP               Stafford County
 Colonial Beach STP                    Town of Colonial Beach
 Dahlgren Sanitary District WWTP
    Authority                          King George County Service
 Fairview Beach STP  Authority         King George County Service
 Purkins Corner WWTP Authority         King George County Service
 District of Columbia - Blue
    Plains STP (Virginia portion
    and Fairfax County contract
    for capacity)                      Loudoun County Service Authority
 
 Rappahannock River Basin
 
 Culpeper WWTP                         Town of Culpeper
 Marshall WWTP                         Town of Marshall
 Mountain Run WWTP                     Culpeper County
 Orange STP                            Town of Orange
 Rapidan STP                           Rapidan Service Authority
 FCW&SA-Remington WWTP                 Fauquier County Water and Sewer
                                          Authority
 Warrenton STP                         Town of Warrenton
 Wilderness Shores WWTP                Rapidan Service Authority
 Spotsylvania Co.-FMC WWTF             Spotsylvania County
 Fredericksburg WWTF                   City of Fredericksburg
 Stafford Co.-Little Falls Run WWTF    Stafford County
 Spotsylvania Co.-Massaponax WWTF      Spotsylvania County
 Montross-Westmoreland WWTP            Westmoreland County
 Oakland Park STP Authority            King George County Service
 Tappahannock WWTP                     Town of Tappahannock
 Urbanna WWTP                          Hampton Roads Sanitation District
 Warsaw STP                            Town of Warsaw
 Reedville Sanitary District WWTP      Reedville Sanitary District
 Kilmarnock WWTP                       Town of Kilmarnock
 
 York River Basin
 
 Caroline Co. Regional STP             Caroline County
 Gordonsville STP                      Rapidan Service Authority
 Ashland WWTP                          Hanover County
 Doswell WWTP                          Hanover County
 HRSD-York River STP                   Hampton Roads Sanitation District
 Parham Landing WWTP                   New Kent County
 Totopotomoy WWTP                      Hanover County
 HRSD-West Point STP                   Hampton Roads Sanitation District
 HRSD-Mathews Courthouse STP           Hampton Roads Sanitation District
 
 James River Basin
 
 Buena Vista STP                       City of Buena Vista
 Clifton Forge STP                     Town of Clifton Forge
 Covington STP                         City of Covington
 Lexington-Rockbridge Regional WQCF    Maury Service Authority
 Alleghany Co.-Low Moor STP            Alleghany County
 Alleghany Co.-Lower Jackson River
    WWTP                               Alleghany County
 Amherst-Rutledge Creek WWTP           Town of Amherst
 Lynchburg STP                         City of Lynchburg
 RWSA-Moores Creek Regional STP
    Authority                          Rivanna Water and Sewer
 Crewe WWTP                            Town of Crewe
 Farmville WWTP                        Town of Farmville
 Chesterfield Co.-Falling  Creek WWTP  Chesterfield County
 Henrico Co. WWTP                      Henrico County
 Hopewell Regional WWTF                City of Hopewell
 Chesterfield Co.-Proctors Creek WWTP  Chesterfield County
 Richmond WWTP                         City of Richmond
 South Central Wastewater
    Authority WWTF                     South Central Wastewater Authority
 Chickahominy WWTP                     New Kent County
 
HRSD-Boat Harbor STP  District        Hampton Roads Sanitation
 HRSD-James River STP  District        Hampton Roads Sanitation
 HRSD-Williamsburg STP District        Hampton Roads Sanitation
 HRSD-Nansemond STP  District          Hampton Roads Sanitation
 HRSD-Army Base STP District           Hampton Roads Sanitation
 HRSD-Virginia Initiative Plant STP
    District                           Hampton Roads Sanitation
 HRSD-Chesapeake/Elizabeth STP
    District                           Hampton Roads Sanitation
 
 Eastern Shore Basin
 
 Cape Charles WWTP                     Town of Cape Charles
 Onancock WWTP                         Town of Onancock
 Tangier Island WWTP                   Town of Tangier
 Broadway Regional WWTP                Town of Broadway

F. To the extent that any publicly owned treatment works receives less than the grant specified pursuant to § 10.1-2131, any year-end revenue surplus or unappropriated balances deposited in the Water Quality Improvement Fund, as required by § 10.1-2128, shall be prioritized in order to augment the funding of those projects for which grants have been prorated. Any additional reimbursements to these prorated projects shall not exceed the total reimbursement amount due pursuant to the formula established in subsection E of § 10.1-2131.

G. Notwithstanding the provisions of subsection B of § 10.1-2131, the Director of the Department of Environmental Quality shall not be required to enter into a grant agreement with a facility designated as a significant discharger or eligible nonsignificant discharger if the Director determines that the use of nutrient credits in accordance with the Chesapeake Bay Watershed Nutrient Credit Exchange Program (§ 62.1-44.19:12 et seq.) would be significantly more cost-effective than the installation of nutrient controls for the facility in question.

§ 62.1-241.12. Combined Sewer Overflow Matching Fund established; purposes.

A. There is hereby established the Combined Sewer Overflow Matching Fund ("Fund") to match federal money for purposes of providing provide grants to localities for CSO projects. The Fund shall be established out of the sums appropriated from time to time by the General Assembly for the purpose of matching, which may include funds designated to match federal funds allocated to Virginia for CSO controls, and funds from any other source, public or private. The Fund, and all income from the investment of moneys held in the Fund and any other sums designated for deposit to the Fund from any source, public or private, shall be set apart as a permanent and perpetual fund, subject to liquidation only upon the solution of Virginia's combined sewer overflow problems, as may be determined by the General Assembly. The Fund shall be administered and managed by the Virginia Resources Authority, subject to the right of the State Water Control Board, following consultation with the Authority, to direct the distribution of grants from the Fund to particular local governments. The State Water Control Board may establish such terms and conditions on any grant as it deems appropriate, and grants shall be disbursed from the Fund by the Virginia Resources Authority in accordance with the written direction of the State Water Control Board.

B. In the fiscal year beginning July 1, 2012, not less than $78 million of the net proceeds of bonds issued by the Virginia Public Building Authority shall be deposited into the Fund to be used, along with any interest earnings thereon, by the Virginia Resources Authority and the State Water Control Board to make grants to the cities of Lynchburg and Richmond to pay a portion of the capital costs of their CSO control projects. Thirty-six percent of such net proceeds shall be provided to the City of Lynchburg and 64 percent to the City of Richmond. No such net proceeds shall be used to pay debt service on obligations of the Cities of Lynchburg or Richmond or any other localities or regional or local authorities.

2.  That the third enactment of Chapters 851 and 900 of the Acts of Assembly of 2007 are amended and reenacted as follows:

3.  That based upon a determination determinations by the General Assembly pursuant to (i) subsection C of § 10.1-1186.01 of the Code of Virginia to distribute the grants certain Water Quality Improvement Grants for the design and installation of nutrient removal technology at publicly owned treatment works designated as significant dischargers or as eligible nonsignificant dischargers as defined in § 10.1-2117 of the Code of Virginia and (ii) subsection B of § 62.1-241.12 of the Code of Virginia to make grants to the Cities of Lynchburg and Richmond to pay a portion of the capital costs of their combined sewer overflow control projects, through the use of bonds as provided for in subdivision B 3 of § 10.1-1186.01 and subsection B of § 62.1-241.12, the Virginia Public Building Authority is authorized to fund certain Water Quality Improvement Grants such grants through the issuance of bonds as follows:

§ 1. Pursuant to §§ 2.2-2261, 2.2-2263, and 2.2-2264 of the Code of Virginia, the Virginia Public Building Authority is hereby authorized to finance, through the issuance of bonds, without limitation and together with other available funds, (i) certain Virginia Water Quality Improvement Grants pursuant to Article 4 (§ 10.1-2128 et seq.) of Chapter 21.1 of Title 10.1 of the Code of Virginia, through the issuance of bonds, without limitation and together with other available funds ("Nutrient Removal Grants") and (ii) certain Combined Sewer Overflow grants pursuant to subsection B of § 62.1-241.12 of the Code of Virginia ("CSO Grants," and together with Nutrient Removal Grants, "the Grants"). Such grants Grants shall be used exclusively to fund (a) a portion of some or all of the acquisition, design, construction, installation, equipping equipage, improvement, or renovation of nutrient removal technology for significant dischargers contained in § 2 of this enactment subsection E of § 10.1-1186.01 of the Code of Virginia and eligible nonsignificant dischargers as defined in § 10.1-2117 of the Code of Virginia and (b) a portion of the capital costs of the combined sewer overflow control projects of the Cities of Lynchburg and Richmond pursuant to subsection B of § 62.1-241.12.

§ 2. The Virginia Public Building Authority is authorized to take any and all necessary, proper, or convenient steps and to exercise any and all powers granted to it by law to carry out the undertaking and financing contemplated by the provisions of this enactment, including the power to finance grants the Grants to fund a portion of the costs of any or all of the projects set forth in this act by the issuance of revenue bonds from time to time in an aggregate principal amount not to exceed $250 $628 million, plus amounts needed to fund issuance costs, reserve funds, original issue discount, and other financing expenses.

§ 3. The $550 million of the net proceeds of Virginia Public Building Authority bonds shall finance Virginia Water Quality Improvement Nutrient Removal Grants to fund or reimburse approved capital costs for each such nutrient removal project as and to the extent determined by the Department of Environmental Quality pursuant to the provisions of this enactment and of Article 4 (§ 10.1-2128 et seq.) of Chapter 21.1 of Title 10.1 of the Code of Virginia, including but not limited to the qualifications of projects for Virginia Water Quality Improvement Grants as set forth in §§ 10.1-2129, 10.1-2130, and 10.1-2131 of the Code of Virginia and in written guidelines developed by the Secretary of Natural Resources in accordance with § 10.1-2129. The remaining $78 million of the net proceeds shall finance the CSO Grants in accordance with subsection B of § 62.1-241.12 of the Code of Virginia. Bond proceeds may not be used to pay debt service on obligations of regional or local governments or authorities. A separate account shall be maintained for the grants under this enactment and for bonds issued to finance such grants. Upon certification to the Authority by the Department of Environmental Quality that a project qualifies for a grant under the provisions of this act and the provisions of Article 4 (§ 10.1-2128 et seq.) of Chapter 21.1 of Title 10.1 of the Code of Virginia and of the proposed amount and purpose of such grant, the Authority shall cause the disbursement of bond proceeds to fund such grant, but only to the extent of available funds therefore.

§ 4. The proceeds of such bonds are hereby appropriated for disbursement from the state treasury pursuant to Article X, Section 7 of the Constitution of Virginia, and § 2.2-1819 of the Code of Virginia. Grants funded with The net proceeds of the bonds issued to make Nutrient Reduction Grants will be deposited in a separate account in the Virginia Water Quality Improvement Fund, pursuant to § 10.1-2128 of the Code of Virginia, which authorizes such Fund to consist of such other sums as may be made available to it from any other source, public or private. Upon certification to the Authority by the Department of Environmental Quality that a project qualifies for a Nutrient Reduction Grant under the provisions of this act and the provisions of Article 4 (§ 10.1-2128 et seq.) of Chapter 21.1 of Title 10.1 of the Code of Virginia and of the proposed amount and purpose of such Grant, the Authority shall cause the disbursement of bond proceeds to fund such Grant, but only to the extent of available funds therefor. The net proceeds of the bonds issued to finance the CSO Grants shall be deposited in the Combined Sewer Overflow Matching Fund established pursuant to § 62.1-241.12 of the Code of Virginia. The general conditions and general provisions of a general appropriation act enacted by the General Assembly, in effect from time to time, and all of the terms and conditions contained therein shall apply to the capital projects listed in this act.

§ 5. No bonds authorized pursuant to this enactment in excess of the aggregate principal amount of $378 million shall be issued prior to July 1, 2008 2013.

3.  That the amended authorization made to § 2 of the third enactments of Chapters 851 and 900 of the Acts of Assembly of 2007, as amended by the second enactment of this act, relating to the Virginia Public Building Authority to issue bonds in an additional aggregate principal of $378 million, is for the purposes of (i) funding or reimbursing approved capital costs for additional nutrient removal technology projects of significant dischargers as defined in subsection E of § 10.1-1186.01 of the Code of Virginia and of eligible nonsignificant dischargers as defined in § 10.1-2177 of the Code of Virginia, pursuant to the Chesapeake Bay TMDL Phase 1 Watershed Improvement Plan, and (ii) financing grants to the cities of Lynchburg and Richmond to pay a portion of the capital costs of their combined sewer overflow control projects pursuant to subsection B of § 62.1-241.12 of the Code of Virginia.


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