NORTH CAROLINA GENERAL ASSEMBLY
1971 SESSION

CHAPTER 909
SENATE BILL 758

AN ACT TO AUTHORIZE THE ISSUANCE OF ONE HUNDRED FIFTY MILLION DOLLARS IN BONDS OF THE STATE TO PROVIDE FUNDS FOR ENVIRONMENTAL IMPROVEMENT THROUGH GRANTS TO UNITS OF GOVERNMENT FOR CONSTRUCTION AND IMPROVEMENT OF WASTEWATER TREATMENT WORKS, WASTEWATER COLLECTION SYSTEMS AND WATER SUPPLY SYSTEMS.

The General Assembly of North Carolina enacts:

Section 1.  Short title. — This act shall be known and may be cited as the "North Carolina Clean Water Bond Act of 1971."
Sec. 2.  Purpose. — The problem of polluted and befouled lakes, streams and estuaries in the State of North Carolina, already serious and destined to grow worse unless immediate action is taken, is a matter of vital concern to the General Assembly. A major factor in the pollution problem is the discharge of waste to the waters of this State by municipalities and other population concentrations from wastewater systems that are inadequate, antiquated and, in some instances, nonexistent.
A problem of equally pressing importance is that of insuring to the citizens of this State an adequate supply of pure water for domestic consumption. The steady growth of population and an increasingly urbanized population have created a constantly rising demand for water at the same time that the available sources of pure water are decreasing. The situation thus created has overtaxed the capacity of many existing water supply systems and has also led to a proliferation of small water supply systems which are costly to construct and operate and which frequently do not provide a desirable quantity or quality of water.
Although most of those units of government that are faced with these problems have made strenuous efforts to improve and expand existing facilities to meet the public need, many have found securing the necessary funds to be difficult, if not impossible. It is the intent and purpose of the General Assembly by this act to provide for the issuance of $150,000,000 in bonds of this State, and to provide that the proceeds realized from the sale of the bonds shall be allocated primarily as grants to local units of government to stimulate the construction and improvement of wastewater treatment works, wastewater collection systems and water supply systems to provide a clean and healthful environment and an abundant supply of pure water.
Although the funds derived from the sale of the bonds authorized by this act shall be used primarily to encourage and assist local government units to meet their responsibilities, it is not intended nor is it possible for the State to assume those responsibilities. They must and properly ought to be met by local governments, responsive to the needs and demands of their citizens, through forceful and appropriate action to resolve existing environmental problems and to meet those that the future portends.
The funds to be derived from the sale of the bonds authorized by this act are sufficient to meet no more than a fraction of the needs which now exist and will arise in the immediate future. For this reason, although public necessity will be the primary consideration in granting funds, great emphasis must be placed on the availability of matching grants and loans from other sources; the creation of efficient systems of regional wastewater disposal and regional water supply; and the willingness and ability of local government units to meet their responsibilities through sound fiscal policies, creative planning and efficient operation and management.
The General Assembly directs, therefore, that those agencies of this State charged with administration of this act, in order to achieve the wisest use of the funds herein provided for, shall exercise the utmost care and judgment in approving grants under this act, for which the ultimate criterion shall be the greatest benefit to the greatest number.
Sec. 3.  Definitions. — As used in this act, unless the context otherwise requires:
(1)	"Board of Water and Air Resources" shall mean the North Carolina piping, pumping equipment and all other necessary Board of Water and Air Resources created by Article 21 of Chapter 143 of the General Statutes, or, should said Board be abolished or otherwise divested of its functions under this act, the public body succeeding it in its principal functions, or upon which are conferred by law the rights, powers and duties given by this act to said Board.
(2)	"Construction cost" shall mean the actual cost of construction of any project for which a grant is made under this act, including engineering, legal, fiscal, administrative and contingency costs, for water supply systems, wastewater collection systems, and wastewater treatment works and any extensions, improvements, remodeling, additions, or alterations to existing systems. Such cost may include the cost of real property as provided for in this act, but shall not include recurring annual expenditures for administration, repairs, operation and maintenance of any wastewater or water supply systems.
(3)	"Department of Administration" shall mean the North Carolina Department of Administration created by Article 36 of Chapter 143 of the General Statutes, or, should said Department be abolished or otherwise divested of its functions under this act, the public body succeeding it in its principal functions, or upon which are conferred by law the rights, powers and duties given by this act to said Department.
(4)	"Receiving agency" shall mean the State Board of Health with relation to receipt of applications for grants for water supply systems and the Board of Water and Air Resources with relation to receipt of applications for grants for wastewater treatment works or wastewater collection systems.
(5)	"State Board of Health" shall mean the North Carolina State Board of Health created by Article 2 of Chapter 130 of the General Statutes, or, should said Board be abolished or otherwise divested of its functions under this act, the public body succeeding it in its principal functions, or upon which are conferred by law the rights, powers and duties given by this act to said Board.
(6)	"State Treasurer" shall mean the Treasurer of the State of North Carolina as provided in Article III of the Constitution of North Carolina and vested with those powers and duties set forth in Article 6 of Chapter 147 of the General Statutes.
(7)	"Unit of government" shall mean any incorporated city, town or village, county, sanitary district, metropolitan sewerage district, water or sewer district, watershed improvement district, water or sewer authority, special purpose district, other municipality, or any agency, board, commission, department or political subdivision or public corporation of the State, now or hereafter created or established, empowered to provide water supply systems, wastewater collection systems or wastewater treatment works.
(8)	"Wastewater collection system" shall mean a unified system of pipes, conduits, pumping stations, force mains, and appurtenances for collecting and transmitting water-carried human wastes and other wastewater from residences, industrial establishments or any other buildings.
(9)	"Wastewater treatment works" shall mean the various facilities and devices used in the treatment of sewage, industrial waste or other wastes of a liquid nature, including the necessary intercepting sewers, outfall sewers, pumping, power, and other equipment and their appurtenances.
(10)	"Water supply system" shall mean a system consisting of facilities and other works for supplying, treating and distributing potable water including, but specifically not limited to, impoundments, reservoirs, wells, intakes, water filtration plants and other treatment facilities, tanks and other storage facilities, transmission mains, distribution appurtenances, equipment and structures.
Sec. 4.  Bond election. — (a) North Carolina Clean Water Bonds. Subject to a favorable vote of a majority of the qualified voters of the State who shall vote thereon in an election called and held as hereinafter provided, the State Treasurer is hereby authorized, by and with the consent of the Governor and Council of State, to issue and sell, at one time or from time to time, bonds of the State, to be designated "State of North Carolina Clean Water Bonds", in an aggregate principal amount not exceeding $150,000,000.
(b)	Referendum. The question of the issuance of the $150,000,000 State of North Carolina Clean Water Bonds shall be submitted to the qualified voters of the State of North Carolina at an election to be held on a date not later than May 6, 1972, to be fixed by the Governor by a proclamation issued by him; provided, that the election herein provided for may be held on the same day as any other State, county, municipal or district election, and any other State, county, municipal or district election may be validly held on the same day as the bond election provided for in this act. Notice of the bond election shall be given by publication at least twice in a newspaper published in each county in the State or having a general circulation therein, and the election and the registration of voters therefor shall be held under and in accordance with the general laws of the State, except that no absentee ballots shall be allowed in said election. The State shall reimburse the counties of the State for all necessary expenses incurred in holding the election and registration therefor, the same to be paid out of the Contingency and Emergency Fund unless the election is held at the same time as the 1972 State primary election, in which event the State shall furnish to the counties all of the bond ballots and return forms, and the counties shall pay all regular election expenses. The State Board of Elections shall cause to be printed and distributed the ballots which are to be used in the bond election, which ballots shall be substantially in the following form:
OFFICIAL BALLOT
ONE HUNDRED FIFTY MILLION DOLLARS
STATE OF NORTH CAROLINA
CLEAN WATER BONDS
Instructions for Marking Ballot
(a)	To vote in favor of the issuance of the bonds, make a cross (X) mark in the square opposite the words "For the issuance of $150,000,000 State of North Carolina Clean Water Bonds."
(b)	To vote against the issuance of the bonds, make a cross (X) mark in the square opposite the words "Against the issuance of $150,000,000 State of North Carolina Clean Water Bonds."
(c)	If you tear or deface or wrongly mark this ballot, return it and get another.
□	For the issuance of $150,000,000 State of North
	Carolina Clean Water Bonds.
□	Against the issuance of $150,000,000 State of North 
	Carolina Clean Water Bonds.          (Facsimile Signature)          
Chairman, State Board of Elections
Those voting in the election who are in favor of the issuance of the bonds shall vote by making an X in the square opposite the words "For the issuance of $150,000,000 State of North Carolina Clean Water Bonds".
Those opposed to the issuance of the bonds shall vote by making an X in the square opposite the words "Against the issuance of $150,000,000 State of North Carolina Clean Water Bonds".
Notwithstanding the foregoing provisions of this subsection, voting machines may be used in accordance with rules and regulations prescribed by the State Board of Elections.
If a majority of those voting thereon in the election shall vote in favor of the issuance of the bonds, the bonds shall be issued as hereinbefore provided. In the event a majority of those voting thereon in the election shall vote against the issuance of the bonds, the bonds shall not be issued.
The result of the election shall be canvassed and declared as provided by law for the holding of elections for State officers and the result thereof certified by the State Board of Elections to the Secretary of State of North Carolina, in the manner and at the time provided by the general election laws of the State.
Sec. 5.  Issuance of bonds. — (a) Terms and conditions. Bonds authorized by this act shall bear such date or dates, shall be serial bonds, and shall mature at such times and in such amounts, not exceeding 25 years from their date or respective dates, and may be made redeemable before maturity, at the option of the State, at such price or prices and under such terms and conditions, and shall bear interest at such rate or rates, payable semi-annually, all as may be fixed by the State Treasurer with the approval of the Governor and Council of State.
(b)	Signatures; form and denomination; registration; reconversion. The bonds issued pursuant to this act shall be signed on behalf of the State of North Carolina by the Governor or shall bear his facsimile signature; shall be signed by the State Treasurer, or shall bear his facsimile signature; shall bear the Great Seal of the State or a facsimile thereof impressed or imprinted thereon; and shall carry interest coupons which shall bear a facsimile of the signature of the State Treasurer. In the event that the bonds shall bear the facsimile signature of the State Treasurer, the bonds shall also be signed by an assistant treasurer or a deputy treasurer, as the State Treasurer shall determine. Should any officer whose signature or facsimile appears on any bonds or coupons cease to be such officer before the delivery of the bonds, such signature or facsimile shall nevertheless have same validity for all purposes as if the officer had remained in office until delivery. The form and denomination of the bonds shall be as the State Treasurer may determine in conformity with this act, and the bonds shall be subject to registration as is now or hereafter may be provided by law for State bonds, and provision may also be made for the reconversion into coupon bonds of any bonds registered as to both principal and interest.
(c)	Manner of sale; expenses. Subject to determination by the Governor and Council of State as to the manner in which the bonds shall be offered for sale, whether by publishing notices in certain newspapers and financial journals or by mailing notices or by inviting bids by correspondence or otherwise, the State Treasurer is authorized to sell the bonds at one time or from time to time at the best price obtainable, but in no case for less than par and accrued interest. All expenses incurred in the sale and issuance of the bonds and any bond anticipation notes shall be paid from the Contingency Account of the Clean Water Fund.
The proceeds of the bonds and the bond anticipation notes herein authorized, except the proceeds of bonds the issuance of which has been anticipated by such bond anticipation notes, shall be placed by the State Treasurer in a special fund known as the "Clean Water Fund" and shall be disbursed only for the purposes provided in this act.
(d)	Notes; repayment.
(1)	By and with the consent of the Governor and Council of State, who shall determine the rate or rates or maximum rate of interest and the date or approximate date of payment, the State Treasurer is hereby authorized to borrow money at the lowest rate of interest obtainable, and to execute and issue notes of the State for the same, but only in the following circumstances and under the following conditions:
a.	For anticipating the sale of any bonds to the issuance of which the Governor and Council of State shall have given consent, if the State Treasurer shall deem it advisable to postpone the issuance of the bonds.
b.	For the payment of interest upon or any installment of principal of any of the bonds then outstanding, if there shall not be sufficient funds in the State Treasury with which to pay the interest or installment of principal as they respectively become due.
c.	For the renewal of any loan evidenced by notes herein authorized.
(2)	Funds derived from the sale of bonds herein authorized shall be used in the payment of any bond anticipation notes that may have been issued in anticipation of the sale of bonds and any renewals of such notes; and funds provided by the General Assembly for payment of the interest on or principal of bonds herein authorized shall be used in paying the interest on or principal of any notes and any renewals thereof, the proceeds of which shall have been used in paying interest on or principal of the bonds. Interest payments upon the notes may be evidenced by interest coupons in the State Treasurer's discretion.
(e)	Coupons receivable in payment, etc. The coupons appertaining to the bonds and notes after maturity shall be receivable in payment of all taxes, debts, dues, licenses, fines and demands of any kind whatever due the State.
(f)	Tax exemptions. All of the bonds, notes and coupons authorized by this act shall be exempt from all State, county and municipal taxation or assessment, direct or indirect, general or special, whether imposed for the purpose of general revenue or otherwise, and the interest on the bonds and notes shall not be subject to taxation as to income, nor shall the bonds, notes or coupons be subject to taxation when constituting a part of the surplus of any bank, trust company or other corporation.
(g)	Investment in bonds lawful. It shall be lawful for all executors, administrators, guardians and fiduciaries generally, and all sinking fund commissions, to invest any moneys in their hands in said bonds and notes.
(h)	Full faith, credit, taxing power pledged. The full faith, credit and taxing power of the State are hereby pledged for the payment of the principal of and the interest on the bonds and notes herein authorized.
Sec. 6.  Clean Water Fund. — There is hereby created in the Department of Administration a fund to be known as the Clean Water Fund, to be administered by the Department of Administration, which shall be responsible for receipt and disbursement of all moneys as provided in this act.
Sec.7.  Use of bond proceeds; allocation. — (a) Grants.
(1)	Purpose. All moneys paid into the Clean Water Fund, other than those set aside for administrative expenses and to defray expenses incurred in the sale of the bonds and the issuance of notes herein authorized, shall be used for grants to units of government for the construction of new or the improvement or expansion of existing wastewater treatment works, wastewater collection systems and water supply systems. If the purchase or acquisition of real property constitutes a substantial portion of the necessary construction costs of any project, and if the applicant demonstrates that it is incapable of bearing such costs, the receiving agency, in its sole discretion, may authorize the use of grant funds, in such amount as it shall determine, for such purposes; but if any portion of the project funds shall be a federal grant or loan which may not be used for such purposes, then no grant for such purposes shall be made under this act except as hereinafter provided.
(2)	Limitation. The maximum grant made under this act shall not exceed twenty-five percent (25%) of the total construction costs of any project, unless a grant of a greater percentage is determined by the receiving agency to be necessary for the project:
a.	To qualify for a federal loan or grant.
b.	To meet an extreme public necessity.
c.	To provide funds for the purchase or acquisition of necessary real property when federal grant or loan funds may not be used for such purposes. In no event shall any grant made under this act exceed thirty percent (30%) of the total construction cost of any project, and to the extent that a grant exceeds twenty-five percent (25%) of project costs, the percentage in excess of twenty-five percent (25%) shall require approval by the Advisory Budget Commission.
(b)	Contingency Account. The Department of Administration, with the concurrence of the Advisory Budget Commission, from time to time shall allocate funds, not to exceed $5,000,000 in the aggregate, from the proceeds of the sale of the bonds herein authorized to a Contingency Account, which shall be maintained and administered as follows:
(1)	Subject to the approval of the Advisory Budget Commission, the Department of Administration may make allocations from the Contingency Account for the following purposes:
a.	To meet the administrative expenses of the Department of Administration, the State Board of Health, and the Board of Water and Air Resources incurred in the administration of this act in excess of the normal operating expenses of the agencies; but the total administrative expenses, in the aggregate, allocated from the Contingency Account shall not exceed one percent (1%) of the proceeds of the bond sale authorized by this act, exclusive of such funds as may be allocated to the Contingency Account from the Contingency and Emergency Fund, as provided in subdivision (2) of this subsection.
b.	To provide additional funds for grants when the funds allocated for any fiscal year are insufficient and the Advisory Budget Commission determines, in its discretion, that there are sufficiently compelling reasons for providing grants, or any portion thereof, from the Contingency Account. For the purposes of this subdivision, State grants to maintain eligibility for federal grants shall be considered sufficient reason for an allocation from the Contingency Account.
(2)	Each agency entitled to receive administrative expense funds from the Contingency Account shall prepare an itemized estimate of administrative funds required for the succeeding fiscal year, and the State Board of Health and the Board of Water and Air Resources shall deliver their estimates to the Department of Administration at least 45 days prior to the beginning of the fiscal year for which the funds are required. The Department of Administration shall determine the administrative expense funds available and, along with its recommendations, shall deliver the estimates of the State Board of Health and of the Board of Water and Air Resources and its own estimate, if any, to the Advisory Budget Commission at least 30 days prior to the beginning of the fiscal year for which the funds are required. Any administrative expense funds approved by the Advisory Budget Commission shall be disbursed by the Department of Administration to the appropriate agency. If the administrative expense funds disbursed to any agency shall prove insufficient, it may apply at any time during the fiscal year for additional funds in the manner above provided. If the funds provided in this act for administrative expenses are exhausted, the Department of Administration, with the concurrence of the Advisory Budget Commission, may apply for disbursement to the Contingency Account of funds for administrative expenses from the Contingency and Emergency Fund. Funds in the Account for administrative expenses not used to defray agency expenses, other than funds disbursed from the Contingency and Emergency Fund, shall be used for the other purposes of this act. Unused funds in the Account for administrative expenses disbursed from the Contingency and Emergency Fund shall be returned to said Fund.
(3)	All costs and expenses incurred in the sale of the bonds and notes authorized by this act shall be paid from the Contingency Account by the Department of Administration upon certification of such costs and expenses by the State Treasurer.
(4)	To the extent that the Advisory Budget Commission deems feasible and appropriate, funds in the Contingency Account, other than funds for administrative expenses and for costs and expenses of sale of bonds and issuance of notes, shall be made available equally to the State Board of Health and to the Board of Water and Air Resources; and to this end, any funds remaining in the Contingency Account, at the end of the fiscal year beginning July 1, 1976, other than administrative expense funds and bond and note sale expense funds, shall be allocated between the two agencies for grants pursuant to this act in inverse ratio to the aggregate allocations from the Contingency Account to each agency during the preceding five fiscal years, as determined from the accounts of the Department of Administration, unless the Advisory Budget Commission shall determine, in its discretion, that some other distribution is more appropriate.
(c)	Pollution Control Account. The sum of $75,000,000 of the proceeds of the sale of the bonds authorized by this act shall be allocated to a Pollution Control Account, from which shall be made grants to units of government for the construction, improvement or expansion of wastewater treatment works and wastewater collection systems and, where authorized, for the acquisition of real property or interests in real property necessary for the construction, expansion or improvement of such works or systems. The Department of Administration shall disburse no funds from the Pollution Control Account except upon receipt by it of written approval of the disbursement from the Board of Water and Air Resources.
(1)	Fifty million dollars ($50,000,000) of the funds allocated to the Pollution Control Account shall be used exclusively for the purpose of providing the State's share of the funds required for an approved wastewater treatment works project to qualify for federal grants.
(2)	The sum of $25,000,000 allocated to the Pollution Control Account shall be allotted among the various counties of the State in the proportion that the population of each county bears to the total population of the State, as such populations were determined by the 1970 Decennial Census of the United States Department of Commerce exclusively for grants to the counties or units of government therein for wastewater collection system projects; and the allocations of funds for grants under the provisions of this subdivision shall not be made in an aggregate amount exceeding $5,000,000 in the first fiscal year, beginning July 1, 1972, or in an aggregate amount exceeding $10,000,000 in the first two fiscal years, or in an aggregate amount exceeding $15,000,000 in the first three fiscal years, or in an aggregate amount exceeding $20,000,000 in the first four fiscal years, or in an aggregate amount exceeding $25,000,000 in the fifth fiscal year.
(d)	Water Supply Systems Account. The sum of $70,000,000 of the proceeds of sale of the bonds authorized by this act shall be allocated to a Water Supply Systems Account from which shall be made grants to units of government for the construction, expansion or improvement of water supply systems and, where authorized, for the acquisition of real property or interests in real property necessary for the construction, expansion, or improvement of water supply systems. The Department of Administration shall disburse no funds from the Water Supply Systems Account except upon receipt by it of written approval of the disbursement from the State Board of Health.
(1)	Fifty million dollars ($50,000,000) of the funds allocated to the Water Supply Systems Account shall be allotted among the various counties of this State in the proportion that the population of each county bears to the total population of the State, as such populations were determined by the 1970 Decennial Census of the United States Department of Commerce for grants to the counties or units of government therein; and the allocations of funds for grants under the provisions of this subdivision shall not be made in an aggregate amount exceeding $10,000,000 in the first fiscal year, beginning July 1, 1972, or in an aggregate amount exceeding $20,000,000 in the first two fiscal years, or in an aggregate amount exceeding $30,000,000 in the first three fiscal years, or in an aggregate amount exceeding $40,000,000 in the first four fiscal years, or in an aggregate amount exceeding $50,000,000 in the fifth fiscal year.
(2)	Twenty million dollars ($20,000,000) of the funds allocated to the Water Supply Systems Account shall be used for the purpose of providing grant funds for water supply systems projects generally and not upon a county allotment basis.
(e)	Annual allocations. Allocations of grants under the provisions of this act, including grants made from the Contingency Account, shall not be made in an aggregate amount exceeding $30,000,000 in the first fiscal year, beginning July 1, 1972, or in an aggregate amount exceeding $60,000,000 in the first two fiscal years, or in an aggregate amount exceeding $90,000,000 in the first three fiscal years, or in an aggregate amount exceeding $120,000,000 in the first four fiscal years, or in an aggregate amount exceeding $150,000,000 in the first five fiscal years; provided, that the aggregate allocations for any fiscal year, except the fifth fiscal year, may be exceeded upon concurrence of the Advisory Budget Commission if the funds in excess of the aggregate sum are required to provide the State's share of funds for projects pursuant to subsection (c)(1) of this section.
(f)	Uncommitted funds. Any funds uncommitted for grants as of June 30, 1977, under subsection (c)(2) of this section shall be allocated thereafter for grants pursuant to subsection (c)(1); and funds uncommitted under subsection (d)(1) of this section shall be allocated for grants after June 30, 1977, pursuant to subsection (d)(2).
(g)	Reversion. When the principal purposes of this act, or any accounts established hereunder, have been accomplished, and in no event later than January 1, 1983, any uncommitted sums remaining in the Clean Water Fund may be used for such purposes as the General Assembly may designate.
Sec. 8.  Eligibility. — No applicant shall be eligible for a grant under this act unless it shall demonstrate to the satisfaction of the receiving agency that:
(1)	The applicant is a unit of government as defined in this act.
(2)	The applicant has the financial capacity to provide its share of project funds.
(3)	The applicant has substantially complied or will substantially comply with all applicable laws, rules, regulations and ordinances, federal, State and local.
(4)	The projected revenues to be derived from the project under the applicant's proposed schedule of fees and charges will be adequate to provide for proper future operation, maintenance and administration and for reasonable expansion of the project.
Sec. 9.  Application for grant; environmental impact statement; notice; hearing. — (a) Application. All applications for grants for water supply systems shall be filed with the State Board of Health; and all applications for grants for wastewater treatment works or wastewater collection systems shall be filed with the Board of Water and Air Resources. Every application for a grant from county allotment funds under this act shall so state and shall identify the county. Every applicant shall also file with the Department of Administration such information concerning the application as the Department of Administration may require by rules or regulations adopted pursuant to this act.
The Department of Administration, the State Board of Health, and the Board of Water and Air Resources shall develop jointly and adopt a standard form of application for grants under this act. The information required to be set forth in the application shall be sufficient to permit the respective agencies to determine the eligibility of the applicant and to establish the priority of the application, as set forth in this act.
Any applicant shall furnish information in addition or supplemental to the information contained in its application upon request by the receiving agency.
(b)	Environmental impact statement. Every applicant shall file with its application a statement setting forth the impact that the project for which grant funds are sought will have upon the environment of the area within which the project is proposed to be located. The statement shall set forth the impact of the project upon water resources, other natural resources, land use patterns, and such other factors as the State Board of Health or the Board of Water and Air Resources shall require by rules and regulations adopted pursuant to this act.
(c)	Notice. Within 60 days after the receipt of any application, the receiving agency shall give notice of the application, sufficient to describe the nature, location and the extent of the project for which grant funds are sought, as follows:
(1)	Notice by certified mail to the governing body or chief executive officer of every local government unit located within the county or counties in which the project for which grant funds are sought is located or proposed to be located.
(2)	Notice by publication once a week for two successive weeks in a newspaper or newspapers published or having general circulation within the county or counties in which the project for which grant funds are sought is located or proposed to be located.
(3)	Notice by first-class mail to every person appearing upon permanent mailing lists to be maintained by the respective receiving agencies. Persons eligible to appear on such lists shall be any official or any agency or other entity of local, State or federal government; any organization representing county or municipal government; and any public or private organization which has as one of its principal aims the protection, preservation or conservation of the environment and natural resources.
(4)	Any other notice required by law or regulation applicable to federal grants or loan funds which are or may be available for the project for which application was filed.
(d)	Hearings. A public hearing shall be held in accordance with the provisions of this subsection by the receiving agency upon request received by the agency within 15 days after mailing the notice required by this section from any person named in subsection (c)(1) of this section; or may be held by the receiving agency upon request received within 15 days after the last date of publication of notice from any person named in subsection (c)(3) or from any competent person who is a resident of the county or counties in which the project is or is proposed to be located if it appears that the public interest will be served by such hearing. The receiving agency shall determine whether the public interest will be served by a hearing, and its determination shall be conclusive; but all requests for hearing shall be retained as a permanent part of the application, whether or not the request is granted.
(1)	Hearings pursuant to this subsection shall be held not less than 30 nor more than 60 days after receipt of request for hearing and shall be conducted by a permanent staff member to be designated by the respective receiving agencies.
(2)	The hearing shall be held in the county in which the project for which grant funds are sought is located or proposed to be located. If the project is located or proposed to be located in two or more counties, the hearing shall be held in the county designated by the receiving agency.
(3)	Notice of the hearing shall be given as provided in subsection (c) of this section and shall be completed at least one week prior to the date of the hearing. The notice shall specify the time, place, and subject matter of the hearing.
(4)	Any person may submit a written statement, which shall be received by the hearing officer and transmitted to the appropriate receiving agency. Persons desiring to make an oral presentation shall so advise the hearing officer prior to the time of the meeting; and the hearing officer may impose reasonable time limitations on oral presentations.
(5)	The hearing officer shall keep minutes of the meeting and shall deliver them, along with his report and with recommendations, if any, to the appropriate receiving agency within 15 days after the date of the meeting, and upon receipt of the minutes of the public hearing and the hearing officer's report and recommendations, if any, the receiving agency shall give due and careful consideration to all testimony and other facts presented at such hearing which are directly related to the grant application.
(6)	Any person may file a written statement or comments relative to the subject matter of the hearing with the appropriate receiving agency at any time within ten days after the date of the hearing; and such written statement or comment shall be a part of the minutes of said hearing.
Sec. 10.  Priorities. — (a) Determination. Every application filed pursuant to Section 7(c)(1) and Section 7(d)(2) during each quarter of a fiscal year shall be considered by the receiving agency with every other application on file during the same quarter to determine the priority to be assigned to such application. Every application filed pursuant to Section 7(c)(2) and Section 7(d)(1) during each fiscal year shall be considered by the receiving agency with every other application filed during the same fiscal year to determine the priority to be assigned to such application. The priority of an application for a grant from county allotment funds shall be determined only with relation to applications for grants from such funds received from other units of government within the county. Any application which does not contain information sufficient to permit the receiving agency to determine either the eligibility of the applicant or the priority to be assigned the application shall not be deemed received for purposes of this section until such information is furnished by the applicant to the receiving agency.
(b)	Priority factors. All applications for grants under this act received during each quarter of the fiscal year shall be assigned a priority for grant funds by the receiving agency. In determining priorities, the receiving agency:
(1)	Shall give primary consideration to the public necessity of the project in promoting the public health, safety and welfare; and
(2)	Shall also give consideration to:
a.	The eligibility of the proposed project for federal grants.
b.	The compatibility of the proposed project with the State's general program of water supply and water pollution control, any applicable regional planning program and the population to be served.
c.	The fiscal responsibility of the applicant.
d.	The need of the applicant for funding assistance.
(c)	Assignment of priority. A written statement relative to each priority assigned shall be prepared by the agency assigning the priority and shall be attached to the application; and the priority assigned shall be conclusive.
(d)	Failure to qualify. Any application filed pursuant to Section 7 (c)(1) or Section 7 (d)(2) that does not qualify for a grant as of the quarter in which the application was filed by reason of the priority assigned the application shall be considered for grant during the next three succeeding quarters upon request of the applicant. If any application filed pursuant to this act fails to qualify for grant during a priority period set forth in subsection (a) of this section, no further consideration shall be given the application; but the applicant may file a new application for grant at any time, and may amend any pending application to include data or information which would tend to qualify the application for a higher priority.
Sec. 11.  Disbursement of funds. — No funds shall be disbursed by the Department of Administration for any grant until it has received from the appropriate receiving agency a certificate of eligibility to the effect that the applicant meets all eligibility criteria, and that notice and hearing requirements of this act have been met.
In the event that the grant payments are to be made in installments, no installment payment shall be disbursed by the Department of Administration until it has received from the appropriate receiving agency a written request for disbursement.
Sec. 12.  Payment of grants. — The receiving agency, in its sole discretion, may determine whether the payment of any grant made under this act shall be in a lump sum or in installments as progress payments and shall, by adoption of appropriate rules and regulations, provide for the manner of approval and payment of grants.
Sec. 13.  Inspection. — Inspection of a project for which a grant has been made under this act may be performed by qualified personnel of the State Board of Health or the Board of Water and Air Resources or may be performed by qualified professional engineers, registered in this State, who have been approved by the State Board of Health or the Board of Water and Air Resources; but no person shall be approved to perform inspections who is an officer or employee of the unit of government to which the grant was made or who is an owner, officer, employee or agent of a contractor or subcontractor engaged in the construction of the project for which the grant was made. For the purpose of payment of inspection fees, inspection services shall be included in the term "construction cost" as used in this act.
Sec. 14.  Rules and regulations. — (a) Adoption. The Department of Administration, the State Board of Health and the Board of Water and Air Resources, in order to accomplish the efficient administration and uniform application of this act, are empowered to adopt, modify and revoke rules of procedure establishing and amplifying the procedures to be followed in the administration of this act and regulations interpreting and applying the provisions of this act. To the extent practicable and appropriate, uniform rules and regulations shall be jointly adopted; and no rule or regulation jointly adopted may be modified or revoked except upon concurrence of all three agencies.
(b)	Approval; duplication. No rule or regulation adopted by the Department of Administration, the State Board of Health or the Board of Water and Air Resources, or each of them, pursuant to this act, shall become effective until approved by the Advisory Budget Commission and until printed or otherwise duplicated and a certified copy filed with the Secretary of State or other official of the State designated by law.
(c)	Copies furnished. A copy of its rules and regulations adopted pursuant to this act shall be furnished free of charge by the receiving agency and the Department of Administration to any governmental unit. Any other person shall be entitled to receive a copy upon payment of a reasonable charge for printing or duplication if the receiving agency or Department of Administration shall so require.
Sec. 15.  Federal grants and loans. — In order to carry out the purpose of this act to secure the greatest benefits possible to the citizens of this State from the funds herein provided for, the Department of Administration, the State Board of Health and the Board of Water and Air Resources are authorized and directed to adopt such rules, regulations and criteria pursuant to and in accordance with this act as are necessary and appropriate to conform to federal requirements for federal grants and loans for any of the purposes set forth in this act. If any applicant for grant funds under this act for a project otherwise eligible for a federal grant or loan fails to qualify for such grant or loan by reason of the failure or refusal of the applicant to meet federal requirements, the receiving agency, in its sole discretion and determination, may refuse the grant applied for under this act. Every grant made pursuant to this act for any project for which federal funds are available shall be conditional upon approval of the applicant's request for federal funds.
Sec. 16.  Annual reports to Advisory Budget Commission. — The Department of Administration, the State Treasurer, the State Board of Health, and the Board of Water and Air Resources shall prepare and file on or before July 31 of each year with the Advisory Budget Commission a consolidated report for the preceding fiscal year concerning the sale and allocation of the proceeds of sale of the bonds authorized by this act.
(a)	Department of Administration. The portion of the report prepared by the Department of Administration shall set forth for the preceding fiscal year itemized and total allocations from the Contingency Account for grants, administrative expenses and costs and expenses of bond sales; itemized and total allocations from the Pollution Control Account of grants authorized by the Board of Water and Air Resources; and itemized and total allocations from the Water Supply Systems Account of grants authorized by the State Board of Health. The Department of Administration shall also prepare a summary report of all bond funds received by and all allocations made from the Clean Water Fund for each fiscal year, the total funds received and allocations made, and unallocated funds on hand in each account as of the end of the preceding fiscal year.
(b)	State Treasurer. The portion of the report prepared by the State Treasurer shall set forth the funds realized from the proceeds of sales of bonds or issuance of bond anticipation notes authorized by this act during the preceding fiscal year; the costs and expenses of such sales, or issuance; the total funds realized from the proceeds of sales of bonds or issuance of bond anticipation notes for all preceding fiscal years and the total costs and expenses of such sales or issuances; and the total amount of the bonds authorized but unissued.
(c)	Boards of Health and Water and Air Resources. The portions of the report prepared by the State Board of Health and the Board of Water and Air Resources:
(1)	Shall identify each grant made by the receiving agency during the preceding fiscal year; the total amount of the grant commitments; the sums actually paid during the preceding fiscal year to each grant made and to each grant previously committed but unpaid; and the total grant funds paid during the preceding fiscal year.
(2)	Shall itemize the expenditure of any administrative expense funds allocated from the Contingency Account during the preceding fiscal year.
(3)	Shall contain a summary for all preceding fiscal years of the total number of grants made; the total funds committed to such grants; the total sum actually paid to such grants; and the total expenditure of administrative expense funds allocated from the Contingency Account.
(4)	Shall contain an assessment and evaluation of the effects that approved projects have had upon water pollution control and water supplies within the purposes of this act and with relation to the total water pollution control and water supply problem.
(d)	Signatures. The report shall be signed by each of the chief executive officers of the State agencies preparing the report.
Sec. 17.  Severability. — If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.
Sec. 18.  Effective date. — This act shall become effective upon ratification.
In the General Assembly read three times and ratified, this the 19th day of July, 1971.