Sec. 05.09.01.05. Eligible Projects

A. A project shall provide one or more of the physical elements which are the basis of a public service system. Eligible projects include, but are not limited to:

(1) Water production, treatment, storage, and distribution systems;

(2) Sewer collection and treatment facilities;

(3) Solid waste transfer, conversion, and disposal facilities;

(4) Storm water control and drainage facilities;

(5) Bulkheads, piers, wharfs, and ramps;

(6) Bridges, streets, and roads;

(7) Facilities for police, fire, transportation, education, health and recreation, library and cultural facilities, and facilities for the delivery of other public services;

(8) Street lighting, landscaping, and other public space improvements;

(9) Sidewalks, curbs, and gutters;

(10) Governmental office, storage, and maintenance facilities;

(11) Acquisition of machinery and equipment for any of the projects described in this section.

B. When a project is complete, it shall be in compliance with all applicable State and local laws, codes, regulations, and standards.

C. The project shall have an expected useful life at least equal to the term of the corresponding local obligation, and otherwise satisfactory to the Administration.

D. The project may not include any facilities for which the local obligations to be purchased by the Administration would be private activity bonds within the meaning of §141 of the Code, for which an allocation under §146 of the Code would be required.

E. The local government shall provide a certificate that it has determined that the project is consistent with the local comprehensive plan or warranted by extraordinary circumstances with no reasonably feasible alternative, as required under State Finance and Procurement Article, §5-7A-02(b), Annotated Code of Maryland.

F. The project shall be determined by the Department to be consistent generally with the State Economic Growth, Resource Protection, and Planning Policy, and demonstrate specifically that the project:

(1) Is located:

(a) On a site suitable for infill development or redevelopment which:

(i) Is occupied by a structure to be rehabilitated,

(ii) Was previously improved with a structure, or

(iii) Is surrounded by a development; or

(b) In an area:

(i) Designated for growth,

(ii) Within an existing water and sewer service area or an area planned for service within the next 5 years under the adopted county water and sewerage plan, and

(iii) With public facilities and services that are adequate under standards adopted by the local government;

(2) If in a rural area, is:

(a) Located in an existing population center or its designated growth area; and

(b) Sensitive to resource areas, including agricultural and forests lands; and

(3) Is designed with sensitivity for sensitive areas, including streams and stream buffers, 100-year floodplains, habitats of threatened or endangered species, and steep slopes; and

(4) Is consistent with the comprehensive plan of the local jurisdiction in which the project is located.

G. If the project cannot meet the requirements in §F of this regulation, the project shall be determined by the Department to:

(1) Be warranted by extraordinary circumstances, which are defined as circumstances that:

(a) Require emergency action, or

(b) Provide a unique opportunity to promote the purposes of the Program consistent with the State Growth Policy; and

(2) Not have a reasonably feasible alternative, which is defined as an alternative that:

(a) Is capable of being carried out,

(b) Is readily identifiable by the Program,

(c) Is reasonably related to and will carry out the purposes of the State Growth Policy,

(d) Has reasonably ascertainable effects distinguishable from and less environmentally damaging than the project proposed,

(e) Is within the expertise of the local government,

(f) Can be implemented practically and effectively, not remotely or speculatively, and

(g) Is realistic and reasonably available within the time the local government intends to act.

H. The determination under §F or G of this regulation shall be:

(1) Evidenced by a written project report signed by the Administration and the Secretary's designee; and

(2) Finalized in accordance with the procedures set forth in Regulation .08C(3) of this chapter.