DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT 
Water Quality Control Commission
5 CCR 1002-51
REGULATION NO. 51 
WATER POLLUTION CONTROL REVOLVING FUND RULES
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51.5	PROCEDURES FOR IDENTIFYING PROJECTS ESTABLISHING THE PROJECT ELIGIBILITY LIST, AND DISTRIBUTING FUNDS
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(2)	The Project Eligibility List shall be comprised of six categories:
(a)	Category 1 includes those projects that improve or benefit public health or that will remediate a public health hazard as defined in this regulation.
(b)	Category 2 includes those projects that enable an entity to achieve permit compliance. 
(c)	Category 3 includes those projects that contribute to the prevention of a public health hazard; enable an entity to maintain permit compliance; or enables an entity to address a possible future effluent limit or emerging issue.
(d)	Category 4 includes those projects that implement a watershed/nonpoint source management plan.
(e)	Category 5 includes those projects that implement a source water protection plan.
(f)	Category 6 includes those projects that seek funding only under the American Recovery and Reinvestment Act of 2009 and that were not already on the Project Eligibility List as of January 1, 2009. Categories 1-5 will be given consideration prior to funding of Category 6 projects.
Note:  Eligibility List Categories are determined based on information provided by the applicant during the Annual Eligibility List Survey process.  Based upon receipt and review of the Preliminary Engineering Report and a loan application, the assigned Eligibility List Category may be revised during the prioritization process to more accurately reflect the proposed project.
(3)	All loan projects shall submit applications by deadlines established in the annual IUP.  If it is determined that the WPCRF lacks sufficient funds to cover loans for all eligible projects that are ready to proceed within the funding year, Category 1 projects will be funded prior to Category 2 projects, which will be funded prior to Category 3 projects, which will be funded prior to Category 4 projects, which will be funded prior to Category 5 projects, which will be funded prior to Category 6 projects - until all funds are obligated.  Within each category, the following criteria will be used to further prioritize the projects:
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51.35	FINDINGS IN SUPPORT OF EMERGENCY REVISIONS TO REGULATION #51, WATER POLLUTION CONTROL REVOLVING FUND RULES [5 CCR 1002-51] (MARCH 9, 2009)
The Commission conducted this rulemaking hearing to add a sixth category of projects for inclusion on the Water Pollution Control Revolving Fund Project Eligibility List.  The addition of this category will ensure that Colorado will be able to use all funds that may become available under the American Recovery and Reinvestment Act of 2009 (ARRA). Projects added to the existing 2009 Project Eligibility list will receive funding only if necessary to fully utilize existing loan capacity and new federal funding that may become available in 2009.  Consistent with the existing structure for prioritization, Category 6 projects will only be considered for funding after all other projects designated under Categories 1-5 have been given an opportunity to proceed.  Category 6 projects will be subject to the eligibility requirements and intra-category ranking system outlined in Section 51.5 of this regulation.
The Commission intends that terms and conditions specific to the administration of grant monies received under the ARRA will be memorialized in an addendum to the 2009 Water Pollution Control Revolving Fund and State Domestic Wastewater Treatment Grant Intended Use Plan (IUP).  Such terms and conditions may include additional criteria for funding eligibility and priority ranking to comply with the requirements of the ARRA and to maintain consistency with EPA’s final ARRA guidance document.  Interim deadlines or milestones to ensure that projects are proceeding expeditiously to meet the 12-month deadline in the ARRA may also be included in the IUP Addendum.  To the extent that any of the terms and conditions in the IUP Addendum may differ from the original 2009 IUP or these Regulations, the Commission intends that the provisions of the IUP Addendum will govern with respect to the details of administering ARRA funds among the six funding categories.  The Commission will utilize its administrative action hearing process, including opportunity for public review and comment, for approval of any IUP Addendum(s) as developed by the Water Quality Control Division, the Division of Local Affairs, and the Colorado Water Resources and Power Development Authority, consistent with Section 606(c) of the federal Clean Water Act.
The Commission adopted these revisions on an emergency basis, with the intent that such revisions become effective immediately.  The Commission found that immediate adoption of these revisions to Regulation #51 is imperatively necessary to preserve public health, safety or welfare and that compliance with the requirements of section 24-4-103, C.R.S. would be contrary to the public interest.  
The Commission found that immediate effectiveness of these regulatory revisions was necessary to ensure timely addition of new projects to the Project Eligibility List contained within the 2009 IUP.  To that end, the Commission conducted an administrative action hearing immediately after the Regulation #51 rulemaking hearing for the purpose of considering appropriate additions to the IUP (in the form of an addendum) and addition of specific projects to the Project Eligibility List contained in the IUP.  The Commission determined that the projects added to the Project Eligibility List are emergency projects needed to prevent or address threats to public health or the environment.  The Commission intends that the revised Project Eligibility List be submitted to the General Assembly for action by the April 1, 2009 statutory approval deadline.