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25 Pa. Code § 963.5. Financial assistance criteria.

§ 963.5. Financial assistance criteria.

 (a)  The Board will consider the following criteria when considering applications for financial assistance:

   (1)  Whether the project will improve the health, safety, welfare or economic well being of the people of this Commonwealth.

   (2)  Whether the proposed project will lead to an effective or complete long-term solution to the problems experienced with the water supply, sewage treatment or stormwater system to be aided, including compliance with State and Federal statutes, regulations or standards.

   (3)  The cost-effectiveness of the proposed project in comparison with other alternatives, including other institutional, financial and physical alternatives, known to the Board at the time of its funding decision.

   (4)  The consistency of the proposed project with other State and regional resource management and economic development plans. These plans may include the State Water Plan, the official sewage plan for the area served adopted under the Pennsylvania Sewage Facilities Act (35 P. S. § §  750.1—750.20), the Comprehensive Water Facilities Plan, when available and the State’s Economic Development Strategy.

   (5)  Whether the applicant has demonstrated its ability to operate and maintain the project in a proper manner.

   (6)  Whether the project encourages consolidation of water or sewer systems if the consolidation would enable the customers of the systems to be more effectively and efficiently served.

   (7)  Whether a stormwater project is sponsored by more than one municipality and is located at strategic locations determined by the basin-wide studies undertaken under the Storm Water Management Act, or other joint municipal or county efforts.

   (8)  The availability of other sources of funds at reasonable rates to finance all or a portion of the project and the need for Authority assistance to finance the project or to attract the other sources of funding. The Board may require the applicant to participate in financing a project when it determines that the applicant has the financial capability to do so. The extent of applicant participation in financing a project and the reasonableness of interest rates on alternative sources of financing will both be determined by the effect that a project’s financing will have on user rates, relative to users’ ability to pay. To the extent that data availability permits, the Authority will consider the relationship between an applicant’s projected user rates and ability to pay and compare it with systems in comparable socio-economic circumstances. Comparisons will be made separately for sewerage systems, water systems and stormwater systems.

   (9)  A project will not be considered for financial assistance which will have a detrimental impact on the Commonwealth’s air, land or water, or on the natural scenic, historic or aesthetic values of the environment, unless the environmental harm can be satisfactorily mitigated.

 (b)  In making comparisons between systems, the Authority recognizes that projects funded by the Authority may entail higher costs for users than those paid by other users in comparable socio-economic circumstances. Reasons for these cost differences could include improved services provided by the new project and construction cost increases that occur over time and that lead to cost differences among projects built at different times.


   The provisions of this §  963.5 amended July 7, 1995, effective July 8, 1995, 25 Pa.B. 2720. Immediately preceding text appears at serial pages (136456) to (136457).

Cross References

   This section cited in 25 Pa. Code §  963.18 (relating to project implementation and reporting).

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