title-15-part-2•15 CAR Part 2 — Financial Assistance
Chapter I
Subchapter A
Subpart 1
15 CAR § 2-101 Scope {#sec-15-car-2-101 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-101}
15 CAR § 2-101. Scope.
This part is enacted for the purpose of implementing and administering the powers, duties, and responsibilities of the Department of Agriculture and the Arkansas Natural Resources Commission to provide financial assistance approved by the commission with respect to certain works and projects for the development and utilization of water resources, water, sewer, and solid waste management systems, and waste disposal and pollution abatement facilities within the state as authorized by the laws of the state and as follows:
(1) The Water, Sewer, and Solid Waste Management Systems Finance Act of 1975, Arkansas Code § 14-230-101 et seq.;
(2) Arkansas Code §§ 15-5-901 – 910;
(3) Arkansas Water, Waste Disposal and Pollution Abatement Facilities Financing Act of 1997 and Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing Act of 2007, Arkansas Code § 15-20-1301 et seq.;
(4) Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing Act of 2025, Arkansas Code § 15-20-1501 et seq.;
(5) Arkansas Code § 15-22-223;
(6) Arkansas Code § 15-22-503;
(7) Arkansas Code § 15-22-507;
(8) Arkansas Water Resources Development Act of 1981, Arkansas Code § 15-22-601 et seq.;
(9) Arkansas Waste Disposal and Pollution Abatement Facilities Financing Act of 1987, Arkansas Code § 15-22-701 et seq.;
(10) Arkansas Water Resources Cost Share Finance Act, Arkansas Code § 15-22-801 et seq.;
(11) Arkansas Code § 25-43-203;
(12) 33 U.S.C. §§ 1251 – 1389;
(13) 33 U.S.C. §§ 2201 – 2357;
(14) 42 U.S.C. § 300f et seq.; and
(15) 40 C.F.R. §§ 35.3100 – 35.3170.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-102 Policy statement, interpretation, and application of rules {#sec-15-car-2-102 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-102}
15 CAR § 2-102. Policy statement, interpretation, and application of rules.
(a)(1) It is the duty and policy of the Department of Agriculture and the Arkansas Natural Resources Commission to fully and expeditiously implement and administer the objectives, purposes, and intent of the Arkansas Water Development Fund Program, the Water, Sewer, and Solid Waste Fund Program, the Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program, the Water and Sewer Treatment Facilities Grant Program, the Clean Water State Revolving Fund Program, the Drinking Water State Revolving Fund Program, and related programs administered by the department.
(2) This part is adopted to assist in the effectuation and implementation of this duty and policy.
(b) Due to the very specialized nature and complexity of administration of the financial assistance programs, the rules, modes of procedure, and guidelines herein provided are, in all instances, subject to and given a liberal, reasonable, fair, and impartial construction, interpretation, and application to the end that the intent and purposes hereof are obtained in compliance with the:
(1) Laws of the state; and
(2) Public purposes sought to be served thereby.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-103 Definitions {#sec-15-car-2-103 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-103}
15 CAR § 2-103. Definitions.
(a) Unless the context otherwise requires, the meaning of certain capitalized words and terms herein that are not otherwise defined is as provided for the words or terms in the applicable law.
(b) As used in this part:
(1) “ACS” means the United States Census Bureau's American Community Survey five-year estimates of demographic, social, economic, and housing information;
(2) “Applicant” means the eligible entity requesting project funds, subject to underwriting, and responsible for debt service, if applicable;
(3) “Application” means all documents submitted by an applicant and required by this part prior to a funding recommendation and award;
(4) “Clean Water Act” means 33 U.S.C. §§ 1251 – 1389;
(5) “Clean Water State Revolving Fund” and “CWSRF” mean the Construction Assistance Revolving Loan Fund created by Arkansas Code § 15-5-901(a)(1)(A);
(6) “Drinking Water State Revolving Fund” and “DWSRF” means the Safe Drinking Water Fund created by Arkansas Code § 15-22-1102(a)(1);
(7) “Leaking underground storage tank (LUST)” means an underground storage tank system from which a release, including spilling, leaking, emitting, discharging, escaping, leaching, or disposing, of a regulated substance into groundwater, surface water, or subsurface soils occurred, when the release was not permitted or authorized by the Division of Environmental Quality or federal law;
(8) “Safe Drinking Water Act” means 42 U.S.C. § 300f et seq.;
(9) “Sewer” means all components of a sewer or wastewater system including collection, treatment, and discharge;
(10) “Solid waste” means any garbage or refuse, sludge from a wastewater treatment plant, water supply treatment plant, or air pollution control facility, and other discarded material resulting from industrial, commercial, mining, and agricultural operations, and from community activities;
(11) “Storm water” means rainwater or melted snow that runs off streets, lawns, and other sites;
(12) “Wastewater” means water that originates from homes, businesses, industries, or storm runoff and contains contaminants such as human waste, food scraps, oils, chemicals, and other pollutants;
(13) “Water and Wastewater Advisory Committee” means a committee composed of representatives from state agencies, federal agencies, and nonprofit organizations that reviews project preapplications and provides recommendations regarding the funding sources for which the project is eligible to apply; and
(14) “Water plan approval” and “water plan compliance” mean authorization from the Arkansas Natural Resources Commission to construct, operate, manage, or maintain a water development project.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
Subpart 2
15 CAR § 2-201 General procedure {#sec-15-car-2-201 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-201}
15 CAR § 2-201. General procedure.
The general procedure for the financial assistance application, review, and consideration process shall be as follows:
(1) Water and sewer projects.
(A) Prior to submission of a formal application for water, sewer, solid waste, and stormwater projects, the applicant must submit a completed Water and Wastewater Advisory Committee preapplication on a form provided by the Department of Agriculture.
(B) Preapplication is not required for emergency projects as defined in 15 CAR § 2-202(b).
(2) Application.
(A) The applicant must submit an application for financial assistance to the department to initiate application review and consideration for financial assistance.
(B)(i) In all instances, applications must be written in the form and include substantive content required by Applications for Financial Assistance, Subpart 3 of this part.
(ii) Every application for funds under a particular program may be considered by the Arkansas Natural Resources Commission at its discretion as a request for financial assistance under any available program.
(3) Preliminary review. Upon receipt, the application is reviewed by department staff for an initial determination of:
(A) Project eligibility;
(B) Applicant eligibility; and
(C) Completeness and accuracy of all required and necessary information.
(4) Final review.
(A) Based upon the determination of eligibility and adequacy of information submitted, the application is thereafter reviewed by department staff for recommendation to the commission.
(B) In this endeavor, the department reviews and investigates the application for the purpose of determining project compliance with:
(i) The approval criteria set forth in Approval Standards and Criteria, Subpart 4 of this part; and
(ii) Such other considerations and factors deemed relevant and necessary for staff recommendation purposes.
(C) In addition, the applicant’s history with respect to the achievement of objectives in previous commission grants, loans, and leases may be examined.
(D) Where applicable, department staff may contact state and federal government entities that have responsibilities associated with the project.
(5) Commission review and consideration. Upon completion of department staff review, the application and department recommendations, if any, are:
(A) Placed upon the commission’s meeting agenda as promptly as practicable; and
(B) Thereby submitted for commission:
(i) Review;
(ii) Consideration; and
(iii) Action.
(6) Memorandum of agreement. The applicant awarded funding must enter an agreement with the department for scheduling the financial assistance, planning and design, and construction phases.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-202 Commission action {#sec-15-car-2-202 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-202}
15 CAR § 2-202. Commission action.
(a) After reviewing and considering the submitted application, the Arkansas Natural Resources Commission may take one (1) of the following forms of action on the application:
(1) Approve and grant the application as submitted, in whole or in part, and thereby authorize such further action as may be necessary to effectuate project closing or the disbursement of funds;
(2) Retain the application under advisement for further consideration or continue the hearing on the same for later ruling and disposition;
(3) Withhold ruling on the application pending submission of additional information required by the commission or Department of Agriculture for consideration, an additional hearing before the commission on the application, or both additional submission and hearing;
(4) Reject and deny the application, in whole or in part;
(5) Approve and grant the application, in whole or in part, contingent upon the:
(A) Applicant taking certain actions;
(B) Existence of adequate and available program funds; or
(C) Receipt and approval by Department of Agriculture staff of any outstanding and necessary:
(i) Material;
(ii) Information;
(iii) Documents;
(iv) Verifications; or
(v) Other authorization; or
(6)(A) Place an application on a priority list pending the availability of program funds.
(B) Applications on a priority list will be given further consideration regarding approval or denial when adequate funds become available.
(b)(1) The commission will act on an application based on:
(A) The information contained therein; and
(B) Department of Agriculture staff's recommendations.
(2)(A) The commission will take action on an application, when practical, within six (6) months of the date the application was submitted to the Department of Agriculture.
(B) Action may be delayed on certain applications for projects dependent on other financing sources.
(3) The Department of Agriculture will, within thirty (30) business days of the commission’s action, notify the applicant of the final action of the commission in accepting, modifying, or rejecting the application.
(c)(1) Emergency applications may be submitted at any time.
(2) An emergency exists when there is an interruption of normal service that:
(A) Threatens life or health;
(B) Cannot be resolved within a reasonable amount of time; and
(C) Result in the applicant declaring an emergency.
(3) The commission or Department of Agriculture may require documentation of such emergency by:
(A) The Engineering Section of the Department of Health;
(B) The Division of Environmental Quality; or
(C) Other appropriate state and federal agencies.
(4)(A) The Department of Agriculture has the discretionary authority to disburse up to three hundred thousand dollars ($300,000) in program funds in an emergency situation without requiring the applicant to follow the normal application review and consideration process.
(B) Any emergency disbursement may only be made after consultation with and concurrence of the Chair of the Arkansas Natural Resources Commission.
(C) Any emergency disbursement made under this provision must be reported to the commission at its next regularly scheduled meeting.
(d) Upon approval and grant of an application, the commission may:
(1) Authorize loan closing and the execution of all necessary closing documents and instruments by the chair or other designated commission representative or representatives;
(2) Authorize and provide for disbursements; and
(3) Authorize such further or additional action necessary to complete and implement the approved transaction, including the imposition and collection of fees and charges fixed by the commission to be paid by an applicant with respect to the commission’s assistance for a specific project.
(e)(1) The Department of Agriculture has the discretionary authority to extend the time granted by the commission to an applicant to comply with specific terms and conditions when, in the Department of Agriculture’s judgment, the applicant achieved substantial compliance.
(2) Any such extension granted pursuant to this provision may:
(A) Not exceed ninety (90) days; and
(B) Be granted only after consultation with the chair.
(3) An extension granted under this section must be reported to the commission at its next regularly scheduled meeting.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
Subpart 3
15 CAR § 2-301 Application content {#sec-15-car-2-301 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-301}
15 CAR § 2-301. Application content.
All applications must be submitted in writing on a form designated by the Department of Agriculture and fully comply with the requirements stated in the form.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-302 Required general information {#sec-15-car-2-302 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-302}
15 CAR § 2-302. Required general information.
The following general information, where deemed applicable by the Department of Agriculture to the applicant and project under consideration or where required for the specific program funds for which application is made, are required for each application unless waived by the department:
(1) Applicant's:
(A) Full, true, and correct legal name;
(B) Office address;
(C) Mailing address, if different from office address;
(D) Telephone number;
(E) Fax number;
(F) Email address, if available;
(G) Federal employer identification number; and
(H) Federal unique entity identifier;
(2) Legal authority under which applicant was created and nature of its legal identity and legal authority, including supporting documents as requested by the department, under which application is made;
(3) Certified copy of the ordinance, resolution, or other specific authorizing instrument or action reflecting applicant's authority to make the application to the Arkansas Natural Resources Commission;
(4) Name, address, telephone number, email address, and fax number, if available, of the applicant’s:
(A) Project engineer;
(B) Project legal counsel;
(C) Bond counsel, if applicable;
(D) Financial consultant, if applicable; and
(E) Assessor, if assessment-based repayment is proposed;
(5) Total amount of funds requested for project assistance from the commission, including a statement of the specific uses and purposes for which such funds are intended to be applied;
(6) Description of the proposed project for which application is made, including:
(A) Project location;
(B) Purpose of project;
(C) Comprehensive project description with sufficient detail to support and justify the project;
(D) Anticipated total project cost;
(E) List of all financing institutions, lenders, or other funding sources, if any, financing the project or other projects related to the project; and
(F) Preliminary project plans and specifications as may be necessary to reflect general engineering feasibility of the project;
(7)(A) Certified copies of applicant's previous two (2) years of annual financial statements required by Arkansas Code § 14-234-119(a)(1) and a statement of applicant's financial condition, including a current statement of all outstanding indebtedness of applicant or related entities, all outstanding general obligation or revenue debt that might affect applicant's overall financial condition, and the security given for all such indebtedness;
(8) Description of the nature and division of all applicants' equitable interests in the project if more than one (1) eligible entity will participate in the project;
(9) A copy of the current user charge (rate) ordinance/resolution and sewer use ordinance (sewer only), as applicable;
(10) Any other information required by law or regulation including without limitation disclosures required by Ark. Exec. Order No. 98-04 (Feb. 27, 1998) and laws implementing the requirements of the order.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-303 Additional information for reservoir projects {#sec-15-car-2-303 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-303}
15 CAR § 2-303. Additional information for reservoir projects.
Where financial assistance is sought in connection with an existing or proposed reservoir, the following additional information is required with the application:
(1) A description of all:
(A) Estimated firm annual yields; and
(B) Proposed reservoir storage capacities;
(2) A statement containing the:
(A) Proposed purposes for which water will be stored or used; and
(B) Places of use or potential use for such water;
(3) A statement of the relative allocation of project costs to each project purpose if for more than one (1) purpose; and
(4) A brief description of existing or proposed improvements in the project or project area and a description of all such improvements that may require relocation.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-304 Supplemental information {#sec-15-car-2-304 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-304}
15 CAR § 2-304. Supplemental information.
The Department of Agriculture reserves the right to require of the applicant any additional information deemed necessary for application review under the particular facts and circumstances of any specific project proposal.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-305 Application verification and certification {#sec-15-car-2-305 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-305}
15 CAR § 2-305. Application verification and certification.
(a) All applications for financial assistance must be certified for accuracy by an authorized signatory and include:
(1) Acknowledgement that the Arkansas Natural Resources Commission:
(A) Is not a party and has no legal relationship, including but not limited to partner, joint venturer, or owner, to the project; and
(B) Is not liable or responsible for the payment of any claims or cost overruns concerning the project that is the subject of the application; and
(2) An estimated disbursement schedule to be modified as necessary during the construction period.
(b)(1) Each application may be approved as to legality by applicant's legal counsel, if deemed necessary by the Department of Agriculture.
(2) Such opinion shall normally reflect the:
(A) Valid formation and existence of the applicant;
(B) Due authority of the person or persons signing the application; and
(C) Legality of the means proposed to finance the project.
(c) The application is subject to approval by the department’s legal counsel, if deemed necessary.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
Subpart 4
15 CAR § 2-401 General approval standards and criteria {#sec-15-car-2-401 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-401}
15 CAR § 2-401. General approval standards and criteria.
In the review and consideration of applications for financial assistance, the Arkansas Natural Resources Commission will consider the following general and nonexclusive criteria for application approval:
(1) Compliance with laws. The applicant and proposed project must comply with all applicable and relevant federal, state, and local laws and regulations, including, if applicable, the Arkansas Water Plan, 15 CAR pt. 29, and Oversight of Retail Water, Wastewater and Sewer Providers, 14 CAR pt. 2, and the applicant possesses all necessary and incidental legal rights and privileges necessary to commence and operate the project.
(2) Eligibility. The applicant and proposed project are eligible for assistance, as determined by the Department of Agriculture and consistent with 15 CAR § 2-701.
(3) Priority.
(A) Water, sewer, solid waste, and stormwater projects are on the relevant state revolving fund project priority list published by the department.
(B) The project’s relative benefit and priority in relation to the needs of other proposed projects and applicants, including whether the project:
(i) Meets known health needs and environmental regulations;
(ii) Is in an economically depressed or disadvantaged area; and
(iii) Meets the readiness conditions defined in 15 CAR § 2-1301(b).
(C) Flood control, levee, and drainage projects.
(i) Applicant collects a tax in a practical amount from the benefited area to pay the local share based on comparison with other similar projects.
(ii) Engineering feasibility studies. Local interest is adequate to ensure that the project will be constructed, provided the:
(a) Feasibility study points out a need; and
(b) Project is feasible.
(4) Economic feasibility. The apparent economic viability and feasibility of the project as a whole, including:
(A) Proposed or projected costs per customer;
(B) Estimated revenues from the project;
(C) The adequacy and reliability of estimated revenues necessary for project cost repayment when indicated; and
(D)(i) The rate burden on the customers of the project using the following calculations:
(a) The current utility rates or proposed utility rates for four thousand gallons (4,000 gals.) of water on an annual basis (water rates) are at least one and one-half percent (1.5%) of the median household income (MHI) for the project area; or
(b) The water rates are equal to or greater than one and one-quarter percent (1.25%) of MHI if fifty-one percent (51%) of the customers who benefit from the project are either low or moderate income as defined by the United States Department of Housing and Urban Developments’ Community Development Block Grant Program.
(ii) Project area MHI is the average of the most recent three (3) years of available data on the ACS five-year estimates for Arkansas.
(5) State and regional needs and public interest.
(A) The relationship between the proposed project and the state and regional water resource development needs and whether the proposed project, if constructed, will serve the public interest and welfare.
(B) In particular, whether a project:
(i) Encourages conservation of water resources;
(ii) Encompasses use of less stressed water resources;
(iii) Seeks a more efficient use of existing resources; or
(iv) Possesses similar features providing a benefit to the public interest in the state as a whole.
(6) Availability of funds. The current and anticipated availability of funds needed to provide the financial assistance requested.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-402 Criteria applicability {#sec-15-car-2-402 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-402}
15 CAR § 2-402. Criteria applicability.
(a) The criteria set forth in this subpart constitute general guidelines and standards for application review and consideration by the Arkansas Natural Resources Commission.
(b) Such criteria will not be strictly applied or interpreted or deemed exclusive.
(c) In all instances, each individual application and project is reviewed and considered on its own individual merits.
(d) The criteria and standards set forth in this subpart are interpreted and applied to allow sufficient flexibility in the ultimate exercise of the commission’s judgment and discretion.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-403 Specific criteria applicable to Water Resources Development General Obligation Bond Program applications {#sec-15-car-2-403 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-403}
Codification Notes: 15 CAR § 2-403, concerning specific criteria applicable to Water Resources Development General Obligation Bond Program applications, was repealed by Ark. R. 2026-61 (eff. June 29, 2026). Authority: Arkansas Code § 15-20-206
15 CAR § 2-404 Specific criteria applicable to Arkansas Water Development Fund applications {#sec-15-car-2-404 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-404}
15 CAR § 2-404. Specific criteria applicable to Arkansas Water Development Fund applications.
(a)(1) In addition to the approval standards and criteria set out in 15 CAR § 2-401, the Arkansas Natural Resources Commission applies the following rankings for prioritizing Arkansas Water Development Fund applications:
Type of project Ranking
Public Water Supply 1
Sewer 2
Irrigation (water conservation) 3
Flood Control or Drainage 4
Erosion and Sediment Control 5
Streambank Stabilization 6
Recreation or Fish and Wildlife 7
Hydro-electric Power 8
Navigation 9
(2) The above rankings are used as a general guide, and priority is based on individual project merits.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-405 Specific criteria applicable to Water, Sewer, and Solid Waste Management Systems Fund applications {#sec-15-car-2-405 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-405}
15 CAR § 2-405. Specific criteria applicable to Water, Sewer, and Solid Waste Management Systems Fund applications.
(a)(1) In addition to the approval standards and criteria set out in 15 CAR § 2-401, the Arkansas Natural Resources Commission applies the following rankings for prioritizing Water, Sewer, and Solid Waste Systems Revolving Fund applications:
Type of project Ranking
Public Water Supply 1
Sewage Systems 2
Solid Waste Collection / Disposal 3
(2) The above rankings are used as a general guide, and priority is based on individual project merits.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-406 Specific criteria applicable to Waste Disposal and Pollution Abatement Facilities General Obligation Bond Program applications {#sec-15-car-2-406 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-406}
15 CAR § 2-406. Specific criteria applicable to Waste Disposal and Pollution Abatement Facilities General Obligation Bond Program applications.
[Reserved.]
15 CAR § 2-407 Specific criteria applicable to Arkansas Water Resources Cost Share Revolving Fund Program applications {#sec-15-car-2-407 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-407}
Codification Notes: 15 CAR § 2-407, concerning specific criteria applicable to Arkansas Water Resources Cost Share Revolving Fund Program applications, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
15 CAR § 2-408 Criteria applicable to establishment of terms and conditions for financial assistance {#sec-15-car-2-408 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-408}
15 CAR § 2-408. Criteria applicable to establishment of terms and conditions for financial assistance.
In establishing the debt service reserve fund, depreciation reserve fund, or other terms and conditions, the Arkansas Natural Resources Commission may consider the following:
(1) Health, safety, environmental, and other special needs;
(2) Overall financial burden on applicant;
(3) Type of system and system's operation and maintenance costs;
(4) Applicant's legal, organizational, management, and financial history;
(5) Type of dedicated revenue or revenues to be used for repayment;
(6) Debt service coverage from dedicated revenues;
(7) History of revenue collections and past due accounts;
(8) Rate study and fiscal distress status; and
(9) Other criteria, as applicable.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-409 Specific criteria applicable to Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program applications {#sec-15-car-2-409 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-409}
15 CAR § 2-409. Specific criteria applicable to Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program applications.
[Reserved.]
Subpart 5
15 CAR § 2-501 Conditions for disbursements {#sec-15-car-2-501 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-501}
15 CAR § 2-501. Conditions for disbursements.
(a) After the Arkansas Natural Resources Commission approves an application, the applicant must complete the following conditions and requirements prior to any release or disbursement of funds:
(1) Submit to the Department of Agriculture, unless otherwise provided and approved by the department, all plans, specifications, and engineering reports for the project in complete and sufficient detail as required for submission to a contractor for bidding or contracting;
(2)(A) Along with any necessary parties, execute all instruments and documents, in form and content acceptable to the department, necessary for closing including loan documents, ordinances or resolutions, construction contracts, closing certificates, legal opinions, corresponding pledges of project security and revenues where appropriate, and all other relevant documents (collectively, "project documents").
(B) Closing procedures and schedule must conform to the department’s requirements, including execution and delivery of the specific project documents with any applicable insertions, corrections, modifications, or amendments required and approved by the department.
(C)(i) The loan is considered closed only after the department certifies that the application is complete under the specific funding program requirements.
(ii) The department may execute a bond purchase agreement, if required by 15 CAR § 2-604, and close the loan before all programmatic and technical requirements are met, provided that reimbursement for eligible construction invoices will not be disbursed until all programmatic and technical requirements are met;
(3) Provide to the department, if not previously provided, written and verified statements setting forth:
(A) Information reflecting the reasonable availability of funds or a commitment from all other revenue or funding sources needed to finance and complete the project; and
(B) A timetable for transfer of funds from the department to the applicant; and
(4) Comply with all other applicable requirements of this part.
(b) The department may require the applicant to submit the following prior to any release or disbursement of funds:
(1) Invoices;
(2) Receipts;
(3) Contracts;
(4) Lien waivers;
(5) Verifications;
(6) Evidence of expenditures or encumbrances;
(7) Construction status and progress reports; or
(8) Other information as the department may require.
(c) Upon compliance with the above requirements, the department may release, advance, or disburse financial assistance funds to the applicant for the approved project.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-502 Disbursement procedures for Water Resources Development General Obligation Bond Program {#sec-15-car-2-502 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-502}
Codification Notes: 15 CAR § 2-502, concerning disbursement procedures for Water Resources Development General Obligation Bond Program, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
15 CAR § 2-503 Disbursement procedures for Waste Disposal and Pollution Abatement Facilities General Obligation Bond Program {#sec-15-car-2-503 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-503}
Codification Notes: 15 CAR § 2-503, concerning disbursement procedures for Waste Disposal and Pollution Abatement Facilities General Obligation Bond Program, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
15 CAR § 2-504 Disbursement procedures for Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program {#sec-15-car-2-504 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-504}
Codification Notes: 15 CAR § 2-504, concerning disbursement procedures for Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
15 CAR § 2-505 Increases in financial assistance {#sec-15-car-2-505 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-505}
15 CAR § 2-505. Increases in financial assistance.
(a) With respect to approved applications for financial assistance under this part, the Department of Agriculture has the discretionary authority to increase the amount of financial assistance to the applicant for bid overruns in an amount not to exceed twenty percent (20%) of approved funding without requesting approval from the Arkansas Natural Resources Commission.
(b)(1) Any increase in financial assistance that exceeds twenty percent (20%) of the approved funding amount will be granted only after consultation with the Chair of the Arkansas Natural Resources Commission.
(2) Any financial assistance increase that exceeds twenty percent (20%) of the approved funding amount must be reported to the commission at its next regularly scheduled meeting.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-506 Deobligation {#sec-15-car-2-506 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-506}
15 CAR § 2-506. Deobligation.
(a) The Department of Agriculture has the discretionary authority to deobligate funds approved by the Arkansas Natural Resources Commission under this part without requesting commission approval only in the following circumstances:
(1) Approved financial assistance exceeded the amount needed to complete a project;
(2) An applicant requests that funds be deobligated; or
(3)(A) In the department’s judgment, an applicant failed to comply with the requirements of this part.
(B) Any deobligation made under this subdivision (a)(3) requires consultation with and concurrence of the Chair of the Arkansas Natural Resources Commission.
(b) Any deobligations made under this section must be reported to the commission at its next regularly scheduled meeting.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
Subpart 6
15 CAR § 2-601 Inspection of works, technical and financial records {#sec-15-car-2-601 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-601}
15 CAR § 2-601. Inspection of works, technical and financial records.
By making application to the Arkansas Natural Resources Commission, the applicant consents and agrees that from the time of application, through construction, and at all times while any assistance from the commission is outstanding:
(1) Facility inspection. The Department of Agriculture has the right to inspect any and all of the projects and all incidental works, areas, facilities, and premises otherwise pertaining thereto;
(2) Record inspection. The department has at all reasonable times the right to inspect, review, or copy all contracts, documents, records, or other information related to the application, the project or projects, and the operation of the applicant's system, including financial records possessed by the applicant or its:
(A) Contractors;
(B) Agents;
(C) Employees; or
(D) Representatives;
(3) Audits. The applicant will provide to the department, unless otherwise agreed to by the department, the following:
(A) Construction audit. Upon completion of the project, an audit by an independent certified public accountant of the expenditure of construction funds, including the financial assistance provided by the commission; and
(B) Annual audit.
(i) The applicant’s audit or report required by law or agreement within thirty (30) days after completion and include:
(a) The financial condition of applicant at the end of such fiscal year;
(b) The results of operations and changes in fund balances with respect to applicant;
(c) The applicant’s compliance with the terms and conditions of financial assistance documents and this part; and
(d) Other management or financial criteria established by the department.
(ii) When the applicant receives financial assistance from a federal funding source or federal program, the annual audit must comply with the provisions of the United States Office of Management and Budget’s Circular No. A-133, “Audits of States, Local Governments, and Non-Profit Organizations”.
(iii) Applicants receiving grants from the commission must submit an annual audit if requested by the department;
(4) All federal and state reviews and audits of project funds.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-602 Project modifications {#sec-15-car-2-602 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-602}
15 CAR § 2-602. Project modifications.
After an application for financial assistance is approved by the Arkansas Natural Resources Commission and after the Department of Agriculture reviews and approves an applicant's plans and specifications for the project, no change, modification, amendment, or departure otherwise to or from the approved plans and specifications that would materially or significantly affect total project cost, estimated revenues, or design is allowed or authorized without the prior written approval thereof by the department.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-603 Records public {#sec-15-car-2-603 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-603}
15 CAR § 2-603. Records public.
All records of the Arkansas Natural Resources Commission and Department of Agriculture relating to the financial assistance programs under this part are public records within the meaning of the Freedom of Information Act of 1967, Arkansas Code § 25-19-101 et seq.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-604 Continuing responsibilities — Repayments and other responsibilities {#sec-15-car-2-604 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-604}
15 CAR § 2-604. Continuing responsibilities — Repayments and other responsibilities.
(a) Unless otherwise provided or approved by the Arkansas Natural Resources Commission, or unless reduced or waived in whole or part by the commission for cause, each applicant is expected to repay and reimburse the commission over a period of time not to exceed the expected useful life of the project.
(b) Project agreements will provide for repayment of all amounts of financial assistance provided by the commission and include:
(1) The repayment period;
(2) The commission’s cost of funds provided; and
(3) A proportionate and equitable share of the expense of administration of the applicable commission program.
(c) Each applicant must comply with the terms and conditions established by the commission or the Department of Agriculture prior to disbursements of funds and at all times while any financial assistance provided by the commission is outstanding, including without limitation the following:
(1) Amount of financial assistance;
(2) Source, type, and form of funding;
(3) Interest rate;
(4) Revenues;
(5) Debt service reserve;
(6) Depreciation reserve;
(7) Audits;
(8) Financial statements;
(9) Management letters;
(10) Letters of conditions or notification; and
(11) Applicable state and federal laws.
(d) In the event of default on a loan, the department is entitled to pursue all available remedies allowed by law, including without limitation, seeking the withholding of general revenue turnback under Arkansas Code §§ 15-5-908, 15-22-1110, and 15-22-1313.
(e) When required by the department, the applicant must execute a bond purchase agreement as follows:
(1) The bond purchase agreement must:
(A) Be prepared by the applicant’s bond counsel according to the term sheet provided by the department;
(B) Set forth the terms and conditions required for the applicant to obtain funding; and
(C) Be executed prior to fund disbursement;
(2)(A) According to the terms of the bond purchase agreement, the department may withdraw approval for financial assistance if closing does not take place within six (6) months after the applicant executes the bond purchase agreement.
(B) In the event of withdrawal under subdivision (e)(2)(A) of this section, the applicant may submit a new application for financial assistance in the manner and subject to the requirements described in this part.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-605 Fees for general obligation bond programs {#sec-15-car-2-605 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-605}
Codification Notes: 15 CAR § 2-605, concerning fees for general obligation bond programs, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
15 CAR § 2-606 Servicing fees {#sec-15-car-2-606 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-606}
15 CAR § 2-606. Servicing fees.
(a)(1) Applicants for financial assistance under this part must pay a servicing fee of three percent (3%) of the total amount of financial assistance provided by the commission.
(2) The commission may waive any servicing fee.
(3) Servicing fees are not collected when the funding provided by the commission is in the form of a grant.
(b) The servicing fee must be paid at the time of the first disbursement of funds, unless otherwise designated by the Department of Agriculture.
(c) The servicing fee must be:
(1) Deposited into the Arkansas Water Development Fund; and
(2) Used for the general operation of the department.
(d) The servicing fee paid on any funds that are returned by the applicant as unneeded is not refundable.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authorities: Arkansas Code § 15-20-206; Arkansas Code § 15-20-209
15 CAR § 2-607 Sanctions {#sec-15-car-2-607 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-607}
15 CAR § 2-607. Sanctions.
(a) The Arkansas Natural Resources Commission may, upon written recommendation of the Department of Agriculture, penalize applicants who fail to demonstrate good faith in dealing with the commission or the department.
(b) Sanctions may include a prohibition from participation in any commission financial assistance program.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-608 Project completion, inspection, and audit {#sec-15-car-2-608 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-608}
15 CAR § 2-608. Project completion, inspection, and audit.
(a) Upon completion of any project for which financial assistance is provided, the applicant or its engineer must furnish to the Department of Agriculture written notification of completion.
(b) Upon receipt of such notification, or upon project completion should notification not be furnished as required herein, the department may:
(1) Conduct a final onsite inspection of the project; and
(2) Audit any financial assistance funds disbursed to the applicant as provided in 15 CAR § 2-601.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-609 Return of funds to commission {#sec-15-car-2-609 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-609}
15 CAR § 2-609. Return of funds to commission.
(a)(1) Financial assistance funds provided to an applicant by the Arkansas Natural Resources Commission must be utilized and expended by the applicant solely and exclusively for the payment of authorized and allowable costs and expenses of the project for which assistance was approved.
(2) Any remaining funds after project completion must be promptly returned to the commission upon request.
(b) In the event funds provided to an applicant by the commission are not utilized and expended by the applicant for the specific project for which such funds were approved within a reasonable period of time after disbursement to the applicant, or in the event the commission or department determines, at any time, that funds were utilized and expended for any unauthorized or unallowable purpose, the applicant must upon demand return or otherwise pay or reimburse to the commission:
(1) Any and all such unused funds; or
(2) Any amounts of funds used and expended for unauthorized or unallowable purposes.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-610 Late payments {#sec-15-car-2-610 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-610}
15 CAR § 2-610. Late payments.
(a)(1) Payments for any loan provided as part of any Arkansas Natural Resources Commission financial assistance program are given a fourteen-day grace period after the date a loan payment is due.
(2) After expiration of the grace period, interest at a rate of five percent (5%) of the payment amount due is charged on the amount due from the due date until the date payment is received.
(b)(1) As provided in all loan and lease-purchase agreements entered into as part of commission financial assistance programs, lease or loan payments are given a seven-day grace period after the date a payment is due.
(2) After expiration of the grace period, interest at the rate stated in the project documents is charged on the amount due from the due date until the date payment is received.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authorities: Arkansas Code § 15-20-206; Arkansas Code § 15-20-209
15 CAR § 2-611 Conveyance to eligible entity when project costs repaid {#sec-15-car-2-611 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-611}
15 CAR § 2-611. Conveyance to eligible entity when project costs repaid.
Upon repayment to the Arkansas Natural Resources Commission of all project costs, payments, fees, and charges required under the project agreements in full satisfaction of the applicant's obligations, the commission will:
(1) Convey any ownership interest it has in the project or cause such interest to be conveyed to the proper applicant or, if applicable, to a group of applicants as their interests may appear; and
(2) Return control over the operation and maintenance of the project to the applicant or applicants, as applicable.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-612 Debt service reserve fund, when requested {#sec-15-car-2-612 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-612}
15 CAR § 2-612. Debt service reserve fund, when requested.
(a)(1) A debt service reserve fund, when required by the Arkansas Natural Resources Commission, must be a restricted account established and maintained by a third-party trustee or the applicant, as approved by the Department of Agriculture.
(2) The debt service reserve fund is solely for the benefit and protection of the commission and may not be used or pledged for any other purpose without prior written approval of the department.
(b) The debt service reserve fund:
(1) Will be funded in whole at closing of the project financing, unless otherwise approved by the department; and
(2) May be funded from the amounts financed by the commission as part of the overall project cost.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-613 Depreciation reserve fund {#sec-15-car-2-613 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-613}
15 CAR § 2-613. Depreciation reserve fund.
(a) The depreciation reserve fund must be a restricted account, established and maintained by a third-party trustee or by the applicant, as approved by the Department of Agriculture.
(b)(1) The depreciation reserve fund is for the replacement of the financed project and may not be used for any other purpose without the written approval of the department.
(2) The depreciation reserve fund will be accumulated at a rate and amount established by the department.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
Subpart 7
15 CAR § 2-701 Eligible entities — Generally {#sec-15-car-2-701 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-701}
15 CAR § 2-701. Eligible entities — Generally.
(a) All entities stated in subsection (b) are collectively referred to in this part as "eligible entities."
(b) Entities eligible to apply for and receive financial assistance from the Arkansas Natural Resources Commission include any governmental authority, municipal nonprofit entity, municipal authority, public water authority, investor-owned water or sewer utility, improvement district, levee board, conservation nonprofit, rural development authority, public facilities board, irrigation district, regional water distribution district, any duly qualified and existing public trust or authority, or rural waterworks facilities board, individually or as agent, representative, or instrumentality of any political subdivision or other eligible entity described above.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-702 Entities eligible for assistance under the Water Resources Development General Obligation Bond Program {#sec-15-car-2-702 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-702}
Codification Notes: 15 CAR § 2-702, concerning entities eligible for assistance under the Water Resources Development General Obligation Bond Program, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
15 CAR § 2-703 Entities eligible for assistance under the Arkansas Water Development Fund Program {#sec-15-car-2-703 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-703}
15 CAR § 2-703. Entities eligible for assistance under the Arkansas Water Development Fund Program.
Financial assistance available under the Arkansas Natural Resources Commission's Arkansas Water Development Fund Program may be obtained for an eligible project by any:
(1) Duly constituted entity listed in 15 CAR § 2-701 that is engaged as a local sponsor of any water development project that is an integral part of the Arkansas Water Plan, 15 CAR pt. 29; and
(2) Nonprofit corporation in existence before August 1, 1997, with sponsorship of such an entity.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-704 Entities eligible for assistance under the Water, Sewer, and Solid Waste Management Systems Program {#sec-15-car-2-704 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-704}
15 CAR § 2-704. Entities eligible for assistance under the Water, Sewer, and Solid Waste Management Systems Program.
Financial assistance available under the Arkansas Natural Resources Commission's Water, Sewer, and Solid Waste Management Systems Program may be obtained for an eligible project by any:
(1) Duly constituted entity listed in 15 CAR § 2-701; and
(2) Nonprofit corporation in existence before August 1, 1997, and that provides water, sewer, or solid waste services to one (1) or more:
(A) City;
(B) Town; or
(C) County.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-705 Entities eligible for assistance under the Water and Sewer Treatment Facilities Grant Program {#sec-15-car-2-705 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-705}
15 CAR § 2-705. Entities eligible for assistance under the Water and Sewer Treatment Facilities Grant Program.
Financial assistance available under the Arkansas Natural Resources Commission's Water and Sewer Treatment Facilities Grant Program may be obtained for an eligible project in any:
(1) City of the first class;
(2) City of the second class;
(3) Incorporated town;
(4) Rural water system; and
(5) Rural wastewater system.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-706 Entities eligible for assistance under the Water Resources Cost Share Revolving Fund Program {#sec-15-car-2-706 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-706}
Codification Notes: 15 CAR § 2-706, concerning entities eligible for assistance under the Water Resources Cost Share Revolving Fund Program, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
15 CAR § 2-707 Entities eligible for assistance under the Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program {#sec-15-car-2-707 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-707}
15 CAR § 2-707. Entities eligible for assistance under the Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program.
Financial assistance available under the Arkansas Natural Resources Commission's Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program may be obtained for an eligible project by any:
(1) Nonprofit corporation;
(2) County, municipality, conservation district, improvement district, drainage district, irrigation district, levee district, regional water distribution district, public facilities board, public water authority, rural development authority, solid waste authority, regional wastewater treatment district, regional solid waste management district, rural water association, or school district in the state;
(3) Agency or instrumentality of the state, including without limitation the commission; and
(4) Individual cooperation, trust, limited liability company, or partnership.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-708 Combination of eligible entities {#sec-15-car-2-708 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-708}
15 CAR § 2-708. Combination of eligible entities.
(a) For purposes of qualifying for and obtaining financial assistance under this part, any group of eligible entities may combine and join in making application for project assistance, provided each separate entity within the group is an eligible entity with respect to the particular program for which such application is made.
(b) Entities that intend to combine or join for the purpose of applying for financial assistance under this part are subject to approval by the Department of Agriculture.
(c) Eligible entities forming a new entity for the purpose of applying for financial assistance under this part must obtain prior approval from the department.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
Subpart 9
15 CAR § 2-901 Projects eligible for financial assistance {#sec-15-car-2-901 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-901}
15 CAR § 2-901. Projects eligible for financial assistance.
To be eligible for financial assistance under the Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program, projects must meet one of the following criteria:
(1) A pollution abatement project to reduce, prevent, recycle, control, or eliminate contamination or pollution from the lands, waters, and air of the state that may cause harm to public health, livestock, wild animals, birds, fish, or other aquatic life;
(2) A water project including without limitation production, impoundment, and disposition of water;
(3) Drainage or flood control project;
(4) Irrigation facilities;
(5) Preservation and development of wetlands and aquatic resources;
(6) Projects for agricultural, administrative, research, residential, recreational, commercial, or industrial purposes to be used and benefited by eligible entities as defined by 15 CAR § 2-705; or
(7) For use by the Arkansas Natural Resources Commission or Department of Agriculture for water, waste disposal, and pollution abatement project costs, including issuance expenses, matching, repayment of indebtedness, consulting services, and refunding of bonds.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026)
Subpart 10
15 CAR § 2-1001 Forms of assistance {#sec-15-car-2-1001 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-1001}
15 CAR § 2-1001. Forms of assistance.
The Arkansas Natural Resources Commission, after duly acting upon an application, may provide financial assistance to a qualifying water development project or water, sewer, or solid waste management systems project in any of the following ways:
(1) Loans.
(A)(i) For those in need of urgent financing, the commission will make temporary, short-term or long-term loans at interest rates established by the Department of Agriculture.
(ii) Short-term loans may be made pending acquisition of long-term financing by the applicant.
(iii) The applicant will execute loan documents with the commission setting forth the terms of the loan.
(B)(i) The interest rate for long-term or short-term loans by the commission are established by the department with consultation of the financial advisor.
(ii) If the commission is convinced that an applicant is financially unable to pay any interest, the commission may approve a loan for which the interest charge is deferred or forgiven.
(C) The date that interest begins to accrue on the unpaid balance of a loan is determined by the department.
(D) The loan documents will include the terms and conditions of the loan, including but not limited to, the:
(i) Rate;
(ii) Principal amount of the loan; and
(iii) Dates and amounts of payments;
(2) Grant-in-aid.
(A) For projects demonstrating an exceptional benefit to the state so general in nature that any method of payment of project costs by the local people would prove inequitable, the commission will make a grant to the eligible entity for the payment of such costs.
(B) Grants may also be approved when the eligible entity cannot, in the commission’s judgment, repay a loan.
(C) Grants are subject to availability of funds; or
(3) Joint venture (water development fund projects only).
(A) For any project that provides exceptional benefits, or when it is determined to be in the best interest of the state, the commission may join with the applicant as a co-owner and sponsor of the project.
(B) Any action under this subsection may consist of the acquisition of real property or joint ownership of the entire project.
(C) Execution of a joint venture agreement between the applicant and the commission is required.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026) Authority: Arkansas Code § 15-20-206
15 CAR § 2-1002 Last funds used — Return of unneeded funds {#sec-15-car-2-1002 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-1002}
Codification Notes: 15 CAR § 2-1002, concerning last funds used — return of unneeded funds, was repealed by Ark. R. 2026-61 (eff. June 29, 2026).
Subpart 13
15 CAR § 2-1301 Specific criteria applicable to the Arkansas Water and Sewer Treatment Facilities Grant Program applications {#sec-15-car-2-1301 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-1301}
15 CAR § 2-1301. Specific criteria applicable to the Arkansas Water and Sewer Treatment Facilities Grant Program applications.
(a) In addition to the approval standards and criteria set out in 15 CAR § 2-401, the Arkansas Natural Resources Commission establishes the following requirements and additional ranking information for prioritizing Water and Sewer Treatment Facilities Grant Program applications.
(b)(1) Eligible projects must be “shovel-ready,” as defined in subdivision (b)(2) of this section, and able to start construction within one (1) year of the grant award.
(2) To be considered “shovel-ready”, the project must:
(A) Have a complete project design stamped by an engineer licensed in the State of Arkansas;
(B) Have the required state and federal permits or can demonstrate that the permits were requested and will be obtained within six (6) months of the grant award; or
(C) Demonstrate the ability to award a bid and begin construction within one (1) year of the grant award.
(c)(1) Each applicant must submit a project priority list application provided by the Department of Agriculture for drinking water projects and clean water projects at least sixty (60) days prior to submitting a funding application.
(2)(A) Project priority list applications are scored to determine ranking for funding consideration.
(B) The scoring criteria are provided in the Clean Water and Drinking Water Intended Use Plans annually.
(d)(1) In addition to the criteria used for project priority list rankings, applications are scored on the following selection criteria:
(A) Project located in a county that has increased or decreased more than ten percent (10%) in population, based on the most recent three (3) years of available data on the ACS five-year estimates for Arkansas, in the past ten (10) years receives five (5) points;
(B) Applicant who has not received funding from the program in the last (2) two years receives ten (10) points;
(C) Project that supports the continuation, expansion, or creation of economic development receives five (5) points;
(D) Project that specifically addresses inflow and infiltration into a wastewater system receives ten (10) points;
(E) Project that reduces unaccounted water loss in a drinking water system having greater than thirty percent (30%) water loss documented by the Department of Health receives ten (10) points; and
(F) Project that includes cooperation between more than one (1) water or wastewater system to improve system function, establish emergency connections, increase water supply, or improve wastewater treatment or other cooperative project approved by the Department of Agriculture receives ten (10) points.
(2) Each application receives a total sum score by combining the project priority list criteria with the selection criteria for funding awards.
(e) Funding awarded under the program must be in accordance with the following:
(1)(A) Funding may be awarded for construction or planning and design.
(B) No more than five percent (5%) of the total funding appropriated each state fiscal year to the program may be awarded for planning and design grants to assist cities, towns, and rural water and wastewater systems with a population of ten thousand (10,000) or less with project designs.
(C) Planning and design projects must be completed within one (1) year of the award and require a ten percent (10%) match from the awardee.
(D) Planning and design grants under this section may not exceed one hundred thousand dollars ($100,000) per applicant;
(2)(A) Eighty percent (80%) of construction funds appropriated in each state fiscal year for the program will be awarded for shovel-ready projects in cities of the first class, cities of the second class, or rural water and wastewater systems with a population of more than one thousand two hundred (1,200).
(B) Funding under the program requires a thirty percent (30%) project match from the awardee.
(C) Funding awards for construction projects under the program may not exceed five million dollars ($5,000,000) per award;
(3)(A) Twenty percent (20%) of the construction funds appropriated in each state fiscal year for the program will be awarded for shovel-ready projects in incorporated towns, cities of the second class, or rural water and wastewater systems with a population of one thousand two hundred (1,200) or less.
(B) Funding under the program requires a twenty-five percent (25%) project match from the awardee.
(C) Funding for construction projects under the program may not exceed one million dollars ($1,000,000) per award;
(4)(A) Funding recipients are not eligible for another grant under the program until the awarded grant is closed out.
(B) A grant is considered “closed out” when:
(i) Construction is complete, retainage is released, and the owner accepted the project; or
(ii) Construction is not complete, and all grant funds are fully expended, in which event the awardee must agree in writing to the department that it will not release retainage until the project is complete, and owner acceptance is issued.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026)
Subpart 14
15 CAR § 2-1401 General criteria applicable to the Clean Water State Revolving Fund Program and the Drinking Water State Revolving Fund Program {#sec-15-car-2-1401 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-1401}
15 CAR § 2-1401. General criteria applicable to the Clean Water State Revolving Fund Program and the Drinking Water State Revolving Fund Program.
(a)(1) In addition to the approval standards and criteria set out in 15 CAR § 2-401, the Arkansas Natural Resources Commission establishes the following requirements for the Clean Water State Revolving Fund and Drinking Water State Revolving Fund.
(2) Due to the specialized nature and complexity of administration of the CWSRF and DWSRF programs, the commission’s rules are subject to and given liberal, reasonable, fair, and impartial interpretation and application to achieve compliance with state and federal laws and the public policy to be served thereby.
(b) The applicant and proposed project must:
(1) Be eligible for a loan from the CWSRF or DWSRF programs under the criteria set forth in this part;
(2)(A) Be included on the applicable project priority list in accordance with the Department of Agriculture’s published intended use plans and applicable law and federal requirements.
(B) Intended use plans are published each fiscal year before the state receives federal funding for the CWSRF and DWSRF and are subject to public notice.
(C)(i) Intended use plans must include the project priority list for the CWSRF and DWSRF programs and describe the ranking criteria for the project priority list.
(ii) The project priority list for each program is used to rank priority projects and determine funding allocation.
(D) Intended use plans must comply with the Clean Water Act and Safe Drinking Water Act as applicable to the funding program;
(3) Comply with applicable provisions of the Clean Water Act, Safe Drinking Water Act, and other federal laws and requirements; and
(4)(A) Retain or obtain the services of:
(i) A consulting engineer;
(ii) Bond counsel; and
(iii) Construction contractor or contractors.
(B) All procurement transactions must be conducted in a manner that provides maximum open and free competition.
(c)(1) The department must conduct an environmental review of any project for which an application for CWSRF or DWSRF funding is made, unless exempt from review.
(2) The environmental review must comply with the National Environmental Policy Act of 1969, 42 U.S.C. § 4321 et seq., and 40 C.F.R. pt. 35.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026)
15 CAR § 2-1402 Priority and availability of funds {#sec-15-car-2-1402 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-1402}
15 CAR § 2-1402. Priority and availability of funds.
(a) The Arkansas Natural Resources Commission must give maximum priority to projects that:
(1) Are needed for compliance with the Clean Water Act or Safe Drinking Water Act;
(2) Provide the greatest protection to public health; and
(3) Assist systems most in need on a per household basis.
(b) Projects are considered in the order established by the relevant project priority list.
(c) If a project is determined to be eligible, it will thereafter be prioritized for funding.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026)
15 CAR § 2-1403 Specific criteria for the Drinking Water State Revolving Fund {#sec-15-car-2-1403 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-1403}
15 CAR § 2-1403. Specific criteria for the Drinking Water State Revolving Fund.
(a) All funds within the DWSRF must be used solely to provide loans and other forms of assistance as authorized by the Safe Drinking Water Act for eligible activities to further the public health protection objectives of the Safe Drinking Water Act.
(b) Eligibility.
(1)(A) Eligible projects include but are not limited to the following:
(i) Projects needed for compliance and public health, except monitoring, operation, and maintenance expenditures;
(ii) Replacement of aging infrastructure if needed to maintain compliance or further public health protection goals;
(iii) Consolidation of water supplies;
(iv)(a) Acquisition of land, only if integral to the project and needed to meet or maintain compliance and further public health protection.
(b) Under 40 C.F.R § 35.3520(c), costs for acquiring land are eligible for funding through the DWSRF, regardless of equivalency, only if the land is required to locate eligible project components and is purchased from a willing seller;
(v) Planning and design of a project; and
(vi)(a) Restructuring systems that are noncompliant or lack the technical, managerial, and financial capacity to maintain the system.
(b) The project described in subdivision (b)(1)(A)(iv)(a) of this section is eligible only if the loan will ensure compliance or if the owner or operator agrees to undertake appropriate changes in operations.
(B) Unless approved by the United States Environmental Protection Agency, loans under the DWSRF program may not be made for:
(i) Dams or rehabilitation of dams;
(ii) Water rights, except if the water rights are owned by a system that is being purchased through consolidation as part of a capacity development strategy;
(iii) Reservoirs, except for finished water reservoirs and those reservoirs that are part of the treatment process and are located on the property where the treatment facility is located;
(iv) Laboratory fees for monitoring;
(v) Operation and maintenance expenses;
(vi) Projects needed mainly for fire protection;
(vii) Projects for systems that lack adequate technical, managerial, and financial capability, unless assistance will ensure compliance;
(viii) Projects for systems in significant noncompliance, unless funding will ensure compliance; or
(ix) Projects primarily intended to serve future growth.
(2) Eligible entities:
(A) Must meet the requirements of 40 C.F.R § 35.3520;
(B) May be privately owned and publicly owned community water systems and non-profit water systems;
(C) Must meet the technical, managerial technical capacity required under Section 1452 of the Safe Drinking Water Act and further defined in 20 CAR § 140-102; and
(3) Eligibility is determined at the time of application.
(c) DWSRF equivalency projects.
(1)(A) Federal crosscutter requirements, which include environmental review requirements, must be applied to projects and activities receiving federal dollars.
(B) Because DWSRF consists of an indistinguishable combination of federal, state, and recycled moneys, the United States Environmental Protection Agency determined that federal crosscutter requirements must be applied to projects identified by the state whose cumulative funding is equivalent to the amount of the capitalization grant and designated as equivalency projects.
(2)(A) The Department of Agriculture must designate certain projects as equivalency projects.
(B) Equivalency projects are subject to the equivalency requirements defined in the Safe Drinking Water Act, 40 C.F.R. pt. 35, and United States Environmental Protection Agency guidance.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026)
15 CAR § 2-1404 Specific Criteria for the Clean Water State Revolving Fund {#sec-15-car-2-1404 omnilex-key=us-ar-regs-official--title-15-part-2--15 CAR § 2-1404}
15 CAR § 2-1404. Specific Criteria for the Clean Water State Revolving Fund.
(a) All funds within the CWSRF must be used solely to provide loans and other forms of assistance as authorized by the Clean Water Act for the construction of publicly owned wastewater facilities or any other activity associated with water quality.
(b) Eligibility. Projects eligible for CWSRF assistance must meet the criteria provided in 33 U.S.C. § 1383 and be for:
(1) Any municipality, intermunicipal, interstate, or state agency to construct publicly owned treatment works, as defined in 33 U.S.C. § 1292;
(2) Implementation of a management program established under 33 U.S.C. § 1329;
(3) Development and implementation of a conservation and management plan under 33 U.S.C. § 1330;
(4) Construction, repair, or replacement of decentralized wastewater treatment systems that treat municipal wastewater or domestic sewage;
(5) Measures to manage, reduce, treat, or recapture stormwater or subsurface drainage water;
(6) Any municipality, intermunicipal, interstate, or state agency to reduce the demand for publicly owned treatment works capacity through water conservation, efficiency, or reuse;
(7) Development and implementation of watershed projects meeting the criteria set forth in 33 U.S.C. § 1274;
(8) Any municipality, intermunicipal, interstate, or state agency to reduce the energy consumption needs for publicly owned treatment works;
(9) Reusing or recycling wastewater, stormwater, or subsurface drainage water;
(10) Measures to increase the security of publicly owned treatment works;
(11) Any qualified nonprofit entity, as determined by the Administrator of the United States Environmental Protection Agency, to provide assistance to owners and operators of small and medium sized publicly owned treatment works to:
(A) Plan, develop, and obtain financing for eligible projects under this section, including planning, design, and associated preconstruction activities; and
(B) Assist such treatment works in achieving compliance with the Clean Water Act.
(c) Nonpoint source projects.
(1)(A) Funds in the CWSRF may be used to finance nonpoint source management projects in accordance with the following criteria.
(B) CWSRF nonpoint source funding is designed to offer eligible borrowers a source of funding for a nonpoint source management project with below-market interest rates and a reasonable repayment period.
(C) This subsection does not apply to nonpoint source projects funded through Nonpoint Source Pollution Grants in accordance with 40 C.F.R. §§ 35.260 – 35.268.
(2) CWSRF funding for nonpoint source projects is available to any of the following:
(A) Homeowners;
(B) Small businesses;
(C) Farmers;
(D) Growers;
(E) Dairy farmers;
(F) Cooperatives; and
(G) Nonprofit entities.
(3)(A) To be eligible for CWSRF nonpoint source funding, a project must be included in an approved nonpoint source management plan.
(B) Project types eligible for assistance from the CWSRF nonpoint source program include but are not limited to:
(i) Construction of leachate collection and treatment systems, the closing and capping of landfills, or the reclamation of old landfills;
(ii) Remediation of groundwater contamination from leaking underground storage tanks;
(iii) Remediation or protection of the groundwater from oil wells or injection wells or other well fields;
(iv) Onsite septic tank repair or replacement to protect:
(a) Groundwater;
(b) Drinking water supplies; and
(c) Public health;
(v) Stormwater management facilities, including the purchase of equipment, land, and easements or construction of facilities to collect, store, and treat stormwater runoff;
(vi) Construction of facilities to collect and treat agricultural or animal waste products and the equipment needed to properly run those facilities; and
(vii) Remediation or reclamation of a brownfield site to protect or restore groundwater.
(4)(A)(i) CWSRF nonpoint source funding may be provided through low interest loans from a local financial institution through a linked deposit account provided that the financial institution agrees to and complies with the terms of participation.
(ii) CWSRF nonpoint source funds will be deposited into a non-interest-bearing demand deposit account or other deposit account at a below market interest rate.
(iii) The financial institutions providing the loan must agree to take full responsibility for the credit evaluation of the borrowers, preparation and execution of loan agreements, disbursement of funds, monitoring and servicing of loans, and the credit risk of nonpayment or default.
(iv) Deposits more than Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation insured amounts must be fully collateralized by the financial institutions.
(B) Loans will be made for the purpose of implementing best management practices for nonpoint source management projects.
(5) The CWSRF nonpoint source funding program may add funding options or features such as direct loans, providing funds to other state agencies in Arkansas for use in nonpoint source abatement, or other types of assistance authorized by federal law to address changes in priorities.
(d) CWSRF equivalency projects.
(1)(A) Federal crosscutter requirements, which include environmental review requirements, must be applied to projects and activities receiving federal dollars.
(B) Because CWSRF consists of an indistinguishable combination of federal, state, and recycled moneys, the United States Environmental Protection Agency determined that federal crosscutter requirements must be applied to projects identified by the state whose cumulative funding is equivalent to the amount of the capitalization grant and designated as equivalency projects.
(2)(A) The Department of Agriculture must designate certain projects as equivalency projects.
(B) A project designated by the department as an equivalency project must comply with 33 U.S.C. § 1382(b)(6) and 40 C.F.R. § 35.310 et seq.
(3) The following projects are not eligible for funding under 33 U.S.C. § 1382:
(A) Costs such as land for the treatment site, except land application sites;
(B) Construction of new collector sewers in existing communities;
(C) Treatment plant office furnishings; and
(D) Cost for treating excessive infiltration and inflow into the sewer system.
(e) Mitigation. Eligible costs related to mitigation include:
(1) Costs necessary to mitigate direct, adverse, or physical impacts resulting from building of the wastewater facilities; and
(2) The costs of land acquired for the mitigation of adverse environmental effects identified pursuant to an environmental review under this subpart.
History
- History: Ark. R. 2026-61 (eff. June 29, 2026)
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