Frequently Asked Questions - Stimulus Funds
Can I refinance an existing State Revolving Fund loan to take advantage of the stimulus funding?
What is the basis for accepting emergency State Water Plan applications?
What will happen if a project with stimulus funding does not award contracts by February 16, 2010?
What is a regulated underground storage tank?
How can I apply for use of the LUST Trust Fund dollars?
Can I refinance an existing State Revolving Fund loan to take advantage of the stimulus funding?
Only loans originating on or after October 1, 2008 can be refinanced.
Why is the South Dakota program utilizing principal forgiveness as additional subsidy rather than giving grants?
We are taking the principal forgiveness approach based on information provided by EPA. Making grants with stimulus funds would require the grant recipients to take on additional requirements that we believe would provide no additional benefit to our borrowers.
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What is the basis for accepting emergency State Water Plan applications?
The State Water Plan guidance provides an emergency waiver of the quarterly application process as follows:
In the event of an emergency when a project sponsor cannot wait for the normal application period or for the quarterly amendment process, it may submit an emergency amendment application for the board's consideration at any meeting if it meets one of the following conditions:
1) The proposed project is necessary due to: an act of God; strike, lockout, or other labor disturbance; act of a public enemy; order or restraint of any kind of the government of the United States of America or of the State of South Dakota or any of its departments, agencies, or officials or any civil or military authority other than the applicant or a municipal utility board; storm; drought; flood; explosion; breakage or accident to machinery, transmission pipes, or canals; or any other cause or event not reasonably within the control of the applicant; or
2) The proposed project is necessary to take advantage of an unexpected economic development opportunity in the project area and the opportunity will be lost unless action is taken.
We believe that condition #2 is applicable in light of the passage of the American Recovery and Reinvestment Act of 2009.
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What will happen if a project with stimulus funding does not award contracts by February 16, 2010?
At minimum, the additional subsidy provided through the stimulus funding will be forfeited. Worst case, the entire amount of the stimulus funding will be lost. The department will work with stimulus funding recipients to try to replace the stimulus funding with other EPA State Revolving Funds, if available, and if the recipient has the coverage to repay the entire stimulus funding amount. Additional subsidy cannot be provided from other EPA State Revolving Funds.
What will happen if a project with stimulus funding can only award a portion of its contracts by February 16, 2010?
Most likely a prorated amount of the additional subsidy will be lost based on the percentage of contracts that have been awarded.
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What is a regulated underground storage tank?
Under state and federal law a regulated underground storage tank is one that contains a regulated substance, which is defined as "Regulated substance," any substance defined in § 101(14) of CERCLA 1980, as amended to July 1, 2008, but not including any substance regulated as a hazardous waste under Subtitle (C); petroleum, including crude oil or any fraction thereof which is liquid at standard conditions of temperature and pressure. Usually this will only be petroleum products in South Dakota.
In addition the underground storage tank must meet the following conditions; it is 10 percent or more beneath the surface of the ground. The term does not include any of the following:
(1) A farm or residential tank of 1,100 gallons or less capacity used for storing motor fuel for noncommercial purposes;
(2) A tank used for storing heating oil for consumptive use on the premises where stored;
(3) A septic tank;
(4) A pipeline facility, including gathering lines, regulated under one of the following:
(a) The Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. App. 1672, et seq.); or
(b) The Hazardous Liquid Pipeline Safety Act of 1979 (49 U.S.C. App. 2002, et seq.); or
(c) An intrastate pipeline facility, including gathering lines, regulated under state laws comparable to the provisions of federal law cited to in this subdivision;
(5) A surface impoundment, pit, pond, or lagoon;
(6) A storm water or wastewater collection system;
(7) A flow-through process tank;
(8) A liquid trap or associated gathering lines directly related to oil or gas production and gathering operations; or
(9) A storage tank situated in an underground area, such as a basement, cellar, mineworking, drift, shaft, or tunnel, if the storage tank is situated on or above the surface of the floor.
The term "underground storage tank" or "UST" does not include any pipes connected to a tank that is described in subdivisions (1) to (9), inclusive, of this section.
How can I apply for use of the LUST Trust Fund dollars?
To determine eligibilty for the LUST Trust Fund dollars, you should contact the Ground Water Quality Program within the Department of Environment and Natural Resources (605-773-3296). Your tank must meet the qualifications of a regulated underground storage tank and there must be a suspected release from the tank system.
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