§100.56. Water Sector Program

            A. As used in this Section, the following terms shall have the following meanings:

            (1) "Commission" shall mean the Water Sector Commission.

            (2) "Committee" shall mean the Joint Legislative Committee on the Budget.

            (3) "Division" shall mean the division of administration.

            (4) "Fund" shall mean the Water Sector Fund.

            B.(1) The Water Sector Commission is hereby established to review applications submitted pursuant to the Water Sector Program and make recommendations for funding to the Joint Legislative Committee on the Budget.

            (2) The commission shall be comprised of the following members:

            (a) Five members of the House of Representatives appointed by the speaker of the House of Representatives.

            (b) Five members of the Senate appointed by the president of the Senate.

            (3) A Senate member of the commission and a House member of the commission shall serve as co-chairmen of the commission.

            (4) A quorum of the commission shall be six members. Any recommendations made by the commission shall require a quorum for approval.

            (5) The staffs of the Senate, House of Representatives, and legislative fiscal office shall provide staff support and otherwise assist the commission as requested by the commission.

            C. The Water Sector Program is hereby established to provide grant funding for repairs, improvements, and consolidation of community water and sewer systems. The division of administration, office of facility planning and control, and the office of community development shall administer the program in consultation with the Louisiana Department of Health and the Department of Environmental Quality. The division shall establish a working panel comprised of employees of the office of facility planning and control and the office of community development, within the division of administration, the office of public health within the Louisiana Department of Health, and the Department of Environmental Quality. The working panel shall review and rate applications submitted by community water systems, community sewer systems, and local governing authorities and submit recommendations for funding to the commission.

            D.(1) The division shall promulgate guidance for the administration of the program. The guidance shall include application requirements, application period dates and deadlines for submissions and approval, criteria for ratings, grant requirements, rate study requirements, procedures for the consideration of extension requests and adjustments to grant awards, and a process for ensuring funding for small water and sewer systems and prioritizing critical infrastructure needs. The Administrative Procedure Act, R.S. 49:950 et seq., shall not apply to guidance promulgated pursuant to this Section. The division shall submit the proposed guidance to the commission for review and approval. Any changes to the guidance shall require approval by the commission.

            (2) Prior to the application period, the division shall conduct outreach and educational efforts for all water and sewer systems to raise awareness regarding the program.

            (3) The division shall post on its website a copy of the guidance promulgated pursuant to this Section as well as any additional information regarding the program, including the application process, procurement, or scoring criteria upon request of the commission.

            E. In addition to the guidance provided for in Subsection D of this Section, the division shall submit a proposal outlining administrative costs for the program to the commission for review and approval prior to implementing the program. The commission shall review the proposed administrative costs and make a recommendation to the Joint Legislative Committee on the Budget for funding for administrative costs. The committee shall review the recommendations submitted by the commission and approve administrative costs for the program.

            F. Notwithstanding any provision of law to the contrary, the division may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be considered administrative costs.

            G.(1) Each grant recipient shall be required to provide matching funds, as provided for in the guidance, unless the commission recommends waiving the match requirement.

            (2) A rate study shall be completed on each grant recipient as provided for in the guidance.

            H. Applications shall include the following, at a minimum:

            (1) The amount of grant funding requested.

            (2) The amount and proposed source of funding for the proposed match.

            (3) Proposals for repairs, improvements, or consolidation with neighboring systems.

            (4) Assurance the entity will comply with the rate determination of the rate study completed by a third party chosen by the division prior to release of funds for construction and permission to bid.

            (5) Repealed by Acts 2022, No. 660, §2, eff. June 18, 2022.

            I. The division shall submit the working panel's ratings of proposed projects and recommendations for funding for the projects to the commission. The working panel's recommendations to the commission shall include recommendations for utilization of existing funding sources including the Drinking Water Revolving Loan Fund, Clean Water State Revolving Fund, and Community Water Enrichment and Other Improvements Fund.

            J. The commission shall review the ratings and recommendations submitted by the working panel. The commission shall submit its recommendations for grant awards to the Joint Legislative Committee on the Budget. The recommendations shall include:

            (1) Proposed matching funds, unless the commission recommends a waiver of matching funds or decreased match for any project based on the determination that the local governing authority or water system is unable to provide the match.

            (2) Funding for small water and sewer systems as provided for in the guidance.

            K.(1) The committee shall review the recommendations submitted by the commission and have final approval of projects that receive grant awards through the program.

            (2)(a) The commission may approve adjustments to any grant award for a project for any of the following reasons:

            (i) Duplication of benefits.

            (ii) Increase in project costs, not to exceed five percent of the total grant award for a project.

            (iii) The inability of a grant recipient to complete one or more projects within the scope of the grant award.

            (iv) Technical corrections.

            (b) Notwithstanding the provisions of Paragraph (1) of this Subsection, any adjustments made pursuant to the provisions of this Paragraph shall be reported to the Joint Legislative Committee on the Budget but shall not require approval of the committee.

            (c) The commission shall not consider a request to adjust a grant award due to an increase in project costs until the grantee has submitted a value engineering review of the project to the division.

            (3) The commission may rescind any grant award for a project if the grant recipient fails to comply with the guidance approved by the commission.

            L. Beginning January 1, 2022, the division shall submit a quarterly status update, including a construction progress report, for projects that received funding approval to the Water Sector Commission and the Joint Legislative Committee on the Budget.

            M. Each grant recipient that receives funding pursuant to this Section shall comply with the provisions of R.S. 24:513.

            N. The provisions of R.S. 39:72.1(A) shall not apply to monies appropriated pursuant to this Section.

            O.(1)(a) Any monies deposited into the Phase II Subfund on or after July 1, 2024, shall be used only to provide grant funding for repairs, improvements, and consolidation of community water and sewer systems awarded pursuant to the provisions of this Subsection.

            (b)(i) Any monies deposited into the Emergency Subfund shall be used only to provide emergency grant funding to address or mitigate an emergency related to a community water system as defined in R.S. 40:5.8 or community sewer system as defined in the state Sanitary Code, if such system is under a court-appointed receivership in accordance with R.S. 30:2075.3, R.S. 33:42, or R.S. 40:5.9, or under the appointment of a fiscal administrator in accordance with R.S. 39:1351 et seq.

            (ii) Notwithstanding any provision of this Section to the contrary, any award of emergency grant funding shall be made in accordance with the procedures and requirements for requests and approvals of funding for emergencies and receivership expenses as provided in the guidance promulgated pursuant to this Subsection.

            (2) The commission shall hold a meeting no later than September 1, 2024, to submit priorities to the division to utilize in the development of guidance for emergency grants and any new grants awarded pursuant to the Water Sector Program on or after July 1, 2024.

            (3) Upon receipt, the division shall promulgate guidance for the award and administration of emergency grants and any new grants awarded after July 1, 2024. The guidance shall include application requirements, deadlines for application submissions and approval, criteria for ratings, a process for prioritizing critical infrastructure needs, and procedures for requests and approvals of funding for emergencies and receivership expenses. The Administrative Procedure Act, R.S. 49:950 et seq., shall not apply to guidance promulgated pursuant to this Subsection. No later than October 1, 2024, the division shall submit the proposed guidance to the commission for review and approval. Any changes to the guidance shall require approval by the commission.

            (4)(a) In addition to the guidance provided for in this Subsection, the division shall submit a proposal outlining administrative costs for program awards made pursuant to the provisions of this Subsection. The proposal shall be submitted to the commission for review and approval at the same time that the guidance is submitted to the commission. The commission shall review the proposed administrative costs and make a recommendation to the Joint Legislative Committee on the Budget for funding for administrative costs. The Joint Legislative Committee on the Budget shall review the recommendations submitted by the commission and approve administrative costs for program awards made pursuant to the provisions of this Subsection.

            (b) Notwithstanding any provision of law to the contrary, the division may enter into consulting services, professional services, and information and technology services contracts for the purpose of the procurement of any goods or services necessary to implement and expedite the distribution of funds as emergency procurements exempt from the provisions of the Louisiana Procurement Code and corresponding rules and regulations. The cost of such contracts shall be considered administrative costs and shall require approval of the Joint Legislative Committee on the Budget.

            (5)(a) Each grant recipient shall be required to provide matching funds, as provided for in the guidance, unless the commission recommends reducing or waiving the match requirement.

            (b) A rate study shall be completed on each grant recipient as provided for in the guidance.

            (6) The division shall begin accepting applications for available funds, including those appropriated by the legislature, no later than thirty days after approval by the commission of the guidance. The applications shall include the following, at a minimum:

            (a) The amount of grant funding requested.

            (b) The amount and proposed source of funding for the proposed match.

            (c) The applicant's proposal for use of grant monies for repairs, improvements, or consolidation with neighboring systems.

            (d) An assurance that the applicant will comply with the rate determination of the rate study completed by a third party chosen by the division prior to release of funds for construction and permission to bid.

            (7) Within forty-five days of the end of the application period, the division shall submit ratings of the proposed projects by the working panel established in Subsection C of this Section and recommendations for funding for the projects to the commission.

            (8) The commission shall review the ratings and recommendations submitted by the working panel. The commission shall submit its recommendations for grant awards to the Joint Legislative Committee on the Budget. The recommendations shall include:

            (a) The amount of proposed matching funds for each project or a recommendation for a waiver or a decreased match for any project based on the commission's determination that the local governing authority or water system is unable to provide the full, required match.

            (b) Funding for small water and sewer systems as provided for in the guidance.

            (9) The Joint Legislative Committee on the Budget shall review the recommendations submitted by the commission and have final approval of funding for projects. No monies shall be expended from the Phase II Subfund without approval of the Joint Legislative Committee on the Budget.

            (10) The division shall submit a quarterly status update, including a construction progress report, for projects that received funding approval to the commission and the Joint Legislative Committee on the Budget.

            (11) Each grant recipient that receives funding pursuant to this Subsection shall comply with the provisions of R.S. 24:513.

            P. Repealed by Acts 2022, No. 660, §2, eff. June 18, 2022.

            Acts 2021, No. 410, §1, eff. June 17, 2021; Acts 2022, No. 660, §§1, 2, eff. June 18, 2022; Acts 2024, No. 497, §1, eff. June 10, 2024.