§ 103.26. Nonreimbursable costs.
(a) The cost of acquisition or construction may not include abandoned, out of service, backup facilities or lateral or collecting sewers.
(b) A payment or grant made by a State or Federal agency which is not paid back by the municipality, public school district or municipality authority to the State or Federal agency and which includes State grant-in-aid payment on plans, Federal grants under the Clean Water Act of 1977, the act of December 27, 1977 (Pub. L. No. 95-217, 91 Stat. 1566-1609) or similar programs, labor or materials given the municipality by a Federal or State agency or State payment made as part of the capital cost of the project for State participation, or interest earned on any form of debt instrument shall be deducted in arriving at the actual cost to the municipality, public school district or municipality authority. Calculation of these deductions shall be based on the ratio of eligible construction costs under the act to the construction costs paid for with State or Federal grant funds or PENNVEST loan funds.
(c) Expenditures made before September 1, 1937, may not be included.
(d) Expenditures not related to acquisition or construction of sewage treatment works are not eligible for payment.
(1) After sewage treatment works are completed and placed in operation, only expenditures for additions or modifications related to the sewage treatment process will be considered for payment. When expenditures are claimed for replacement of components related to the treatment process, the original construction cost of the replaced components and other associated costs are no longer eligible for payment the year in which the expenditures for the replacement components are claimed.
(2) The costs of acquisition of replacement parts, tools, supplies, maintenance vehicles and other equipment are not eligible for payment.
(3) Engineering, financial, legal and administrative expenses incurred in the operation of the sewerage facilities are not eligible for payment.
(e) Sewage treatment facilities funded by PENNVEST may be eligible for a subsidy under the act based on the proportion of local funds contributed toward project costs. Calculation of the local contribution shall be based on the ratio of PENNVEST loan and grant funds received to the total costs of a project funded in whole or in part through PENNVEST funds.
(1) Projects for modifications to existing sewage treatment facilities or new construction projects, or both, that receive funding under the PENNVEST program for the full amount of the as-bid construction contract costs are not eligible for a subsidy under the act.
(2) Existing sewage treatment facility components altered by project construction determined ineligible under paragraph (1) are not eligible for continued subsidy under the act of August 20, 1953 (P. L. 1217, No. 339) (Act 339). For an existing facility currently eligible for an Act 339 subsidy, only those components of the facility that remain in use will remain eligible for payment if not altered by project construction determined ineligible under paragraph (1).
(3) If Municipality A constructs a new facility or modifies an existing facility with funds received under PENNVEST and subsequently enters into a leaseback agreement with or sells the facility to Municipality B, the initial determination under this subsection regarding the facility with respect to Municipality A under this subsection shall apply to the eligibility or ineligibility of the facility to receive the Act 339 subsidy with respect to Municipality B.
(f) Industrial waste treatment works are not eligible for payment.
Authority The provisions of this § 103.26 amended under the act of August 20, 1953 (P. L. 1217, No. 339) (35 P. S. § § 701—703); The Clean Streams Law (35 P. S. § § 691.1—691.1001); section 20 of the Pennsylvania Infrastructure Investment Authority Act (35 P. S. § 751.20); and section 1920-A of The Administrative Code of 1929 (71 P. S. § 510-20).
Source The provision of this § 103.26 adopted September 2, 1971, effective September 3, 1971, 1 Pa.B. 1804; amended January 22, 1982, effective January 23, 1982, 12 Pa.B. 382; amended September 27, 1991, effective September 28, 1991, 21 Pa.B. 4397. Immediately preceding text appears at serial pages (141407) to (141408).
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