R653-10-2. Definitions

(1) As used in this section: (a) "Applicant" means a secondary water supplier . (b) "Board" means the Board of Water Resources. (c) "Division" means the Division of Water Resources. (d) "Project" means the purchase and installation of a meter for a secondary water system that, as of the effective date of this rule, provides secondary water service that is not metered. (e) "Secondary water" means the same as that term is defined in Section 73-10-34. (f) "Secondary water connection" means the location where the water leaves the secondary water supplier's mainline and enters the water user's line. (g) "Secondary water supplier" means the same as that term is defined in Section 73-10-34. R653-10-3. Grants for Secondary Water Meters. (1)(a) The board may issue a grant to an applicant to fund a project for the purchase and installation of meters on an existing secondary water system that provides secondary water service that is not metered. (b) The board may not issue a grant under this section to fund: (i) metering of secondary water for service that begins on or after the effective date of this rule; or (ii) the replacement or repair of an existing secondary water meter. (2)(a) A secondary water supplier with 7,000 secondary water connections or fewer may receive no more than $5,000,000 in grant funds. (b) A secondary water supplier with more than 7,000 secondary water connections may receive no more than $10,000,000 in grant funds. (c)(i) Subject to the other provisions of this rule, a grant may not exceed the following amounts for the costs associated with a project, including installation or purchase of meters: (A) for contracts completed with the board calendar year 2022, 70% of the costs of a project; (B) for contracts completed with the board calendar year 2023, 70% of the costs of a project; and (C) for contracts completed with the board calendar year 2024, 65% of the costs of a project. (d) A secondary water supplier may pay up to 85% of its share of project costs under Subsection (c) through a 1% interest loan from the board. (3) Projects receiving project grant funds under this rule must: (a) commit all grant funds through contract no later than December 31, 2024; and (b) spend all grant funds and complete construction of the project no later than December 31, 2026. R653-10-4. Applications for Grants. (1)(a) To obtain a grant under this rule, an applicant shall submit an application with the division. (b) If grant funding described in Subsection R653-10-1(1) remains after the first round of applications and grant disbursements, the board may designate one or more additional application periods to ensure the entire funding amount is awarded by December 31, 2024. (2) An application submitted to the division shall include: (a) a detailed project cost estimate, including engineering fees, meter costs, and installation costs; (b) the total number of pressurized secondary water connections in the applicant's secondary water system; (c) the number of meters to be installed under the grant; (d) detailed estimated secondary water use information, including: (i) average lot size; (ii) average irrigated acreage; and (iii) estimated secondary water usage before the project versus after completion of the project; (e) the timeline for purchase and installation of meters under the project, including the projected start date and expected completion date; (f) estimated need for additional water and timeline for anticipated shortages; (g) project plans and specifications---stamped and signed by the Utah licensed professional engineer responsible for the project; (h) an agreement to: (i)(A) provide an educational component promoting water conservation on a monthly water use statement provided to the applicant's secondary water customers; or (B) bill according to usage based on a tiered conservation rate; or (C) provide both an educational component on water conservation and bill based on a tiered conservation rate; and (ii)(A) commit project grant funds through contract no later than December 31, 2024; and (B) spend all project grant funds and complete construction of the project no later than December 31, 2026; (i) applicant's verification that the information provided in the application is accurate and any estimates or projections submitted are based on sound professional judgement and the best available data; and (j) additional information required on the application. R653-10-5. Application Review and Prioritization. (1) The division shall: (a) review and prioritize an application submitted under Section R653-10-4; and (b) recommend to the board which applicants should be awarded a grant under this rule. (2) In reviewing and prioritizing applications submitted under Subsection (1), the division: (a) may contact an applicant to: (i) verify information in the application; (ii) seek clarifications and supplemental information; and (iii) address and correct anomalies and inconsistencies in the application; and (b) shall score the applications based on the following: (i) Return on Investment---projects that provide the greatest level of water conservation from funds contributed by the state. (A) The metric for measuring Return on Investment is the ratio of estimated annual water use savings resulting from the project divided by the total state contribution to the project, including grants, loans, and other forms of financial assistance provided by the state. (ii) Need---applicants facing imminent secondary water shortages where the project will delay or eliminate the need for new water development. (A) The metric for measuring Need is the imminency of secondary water shortage and the period of time the project will delay the shortage and the need for new water development. (iii) Shovel Readiness---projects with accelerated construction schedules. (A) The metric for measuring Shovel Readiness is the project's start date, and time to completion divided by the number of meters installed. (3) Each scoring category in Subsection (2) will be weighted as follows: (a) Return on Investment---60% weight; (b) Need---20% weight; and (c) Shovel Readiness---20% weight. (4)(a) The division will prioritize each application based on the scoring criteria in Subsection (2) and weighting requirements in Subsection (3). (b) The prioritization will form the basis for the division's recommendation to the board on applicants that should be awarded a grant.