Budget Amendment ID: FY2013-S4-202-R2
2nd Redraft ENV 202
Dam, Seawall and Retaining Wall Infastructure Fund
Messrs. Hedlund, Ross, Knapik and Tarr moved that the proposed new text be amended by inserting, after Section XX, the following new Section:-
SECTION XX: Chapter 29 of the General Laws is hereby amended by inserting after section 2EEEE, inserted by section 18 of chapter 194 of the acts of 2011, the following section:-
2FFFF. There shall be established and set upon the books of the commonwealth a separate fund to be known as the Dam, Sea Wall and Retaining Wall Infrastructure Fund, hereinafter referred to as the fund. There shall be credited to said fund monies appropriated to the fund by the general court and any monies credited or transferred to the fund from any other fund or source and to include without limitation any investment earnings on fund monies. The fund shall be administered by the executive office of energy and environmental affairs.
Amounts credited to the fund shall be used, without further appropriation, to provide grants or loans to local governmental units and other eligible borrowers to finance or refinance costs of eligible coastal and inland waterways infrastructure projects including, but not limited to, seawalls, jetties, revetments, retaining walls, levies, dams and other means of flood control. A local governmental unit shall include a town, city, district, commission, agency, authority, board or other instrumentality of the commonwealth or any of its political subdivisions, including any regional local governmental unit.
A local governmental unit and other eligible borrowers may apply to the executive office of energy and environment affairs for financial assistance to assist in financing the cost of coastal and inland waterway infrastructure projects. The executive office of energy and environment affairs may promulgate rules and regulations for the administration and implementation of this section, including, but not limited to, a priority system and priority list for the approval of projects and the determination of eligible borrowers and eligible costs of projects. Consideration for eligibility shall be given to an applicant for a structure identified by the federal government as requiring imminent infrastructure improvement. Factors to consider when prioritizing grants from the fund shall include: (i) affirmative steps taken by local governmental bodies to identify future infrastructure needs; (ii) applicable data from Federal Emergency Management Agency or the National Flood Insurance Program demonstrating areas in the commonwealth that are subject to repetitive property damage and are a priority for coastal and inland waterways infrastructure projects; Fiscal Year 2013 budget Recommendations (iii) demonstrated flood prevention efforts and financial contributions made by the applicant; (iv) projects to repair or remove high hazard and significant hazard dams, as defined by department of conservation and recreation regulations. The department may consult with and receive inspection and other support from the department of fish and game, the division of fisheries and wildlife and the riverways program, or any successor agencies, to accomplish its duties pursuant to this section; and, (v) dams that exacerbate flooding regardless of classification or condition and that if removed will increase natural floodplain capacity.
Monies deposited into the fund that are unexpended at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent fiscal year. Any repayment by borrowers of loans of financial assistance from fund monies shall be credit to the fund.
(a) to receive and accept from any source loans, contributions or grants for or in aid to a dam removal or repair loan financing program;
(b) to contract with guarantors, financial institutions or other qualified loan origination and servicing organizations, which shall assist in prequalifying borrowers for loans and which shall service and administer each loan. The Fund may require that each borrower be charged a fee to defray the costs of origination, servicing and administration of education loans. The amount and method of collection of such fee shall be determined by the Fund.
(c) to contract with a guarantor to provide security for the payment of loans through the issuance of default insurance or letters of credit or other credit arrangements or to provide a guarantee of payment covering all or a portion of each loan made by or on behalf of the Fund.
(d) to employ attorneys, accountants, consultants, financial experts, loan processors, banks, managers, and such other employees and agents as may be necessary in its judgment, and to fix their compensation;
(e) to make direct loans or to purchase loans from financial institutions and require that the proceeds of such Fund loans be used for making dam removal and repair loans, funding reserves, providing for capitalized interest and paying other costs and fees involved in a making loan.
(f) to sell dam removal or repair loans or Fund loans to such buyers on such terms and in such amounts as the Fund may determine.
(g) to charge and equitably apportion among participating financial institutions its administrative costs and expenses incurred in the exercise of the powers and duties granted by this chapter;
(h) to borrow working capital funds and other funds as may be necessary for start-up and continuing operations, as long as such funds are borrowed in the name of the Fund only. Such borrowings shall be limited obligations of the character and shall be payable solely from revenues of the Authority or the proceeds of bonds pledged for that purpose;
(i) to examine records and financial reports of participating institutions related to the loans guaranteed under this section, and to examine records and financial reports of any person, organization or institution retained under this section;
(k) to do all things necessary or convenient to carry out the purposes of this chapter.
The fund shall be initially be funded by a one-time appropriation of $10,000,000, which the comptroller shall transfer from the unexpended balance of a fund, trust or other separate account in existence on April 1, 2012, including the balance of any amounts transferred to the Water Pollution Abatement Trust by the state treasurer pursuant to paragraph (a) of section 16 of chapter 275 of the acts of 1989 for the Water Pollution Abatement Revolving Fund, including repayments of such loans and any investment earnings thereon, whether established administratively or by law, and including a separate account established under section 6 of chapter 6A of the General Laws or section 4F of chapter 7 of the General Laws; provided, however, the secretary and comptroller shall report to the house and senate committees on ways and means 45 days prior to any such transfer. The request shall certify that the secretary, in consultation with the comptroller, has determined this balance not to be necessary for the purposes for which it was made available
SECTION . Chapter 21E of the General Laws is hereby amended by adding the following section:-
Section 22. Notwithstanding any general or special law to the contrary, no municipality or public entity shall be liable under this chapter for, or related to, the presence, release or threat of release of oil or any hazardous material related to a dam, as defined in section 44 of chapter 253, that occurred prior to the date a dam was acquired by a municipality or public entity; provided, however, that an activity conducted by a municipality or public entity that involves the management or removal of oil or hazardous material in relation to the management, maintenance or removal of a dam shall be performed in accordance with applicable environmental laws and permits.
By inserting after section X the following new section:--
SECTION . Chapter 40 of the General Laws is hereby amended by adding the following section:-
Section 61. (a) A city or town that acquires by gift, purchase, eminent domain under chapter 79, or otherwise, a dam, as defined in section 44 of chapter 253, located within the city or town, including any real property appurtenant thereto, for the purposes of removing, repairing, reconstructing or making improvements to the dam may assess betterments to pay the costs of or relating to acquiring, owning, removing, maintaining or improving any such dam. Such betterments may be assessed upon properties benefiting from the acquisition, ownership, removal, repair, maintenance or improvement of a dam and in such amounts as the authorized board or official shall determine. A betterment so assessed shall be subject to chapter 80. Any betterment assessed pursuant to this section may be apportioned for a maximum term of 40 years.
By inserting after section _ the following new section:--
SECTION . The first paragraph of section 8 of chapter 44 of the General Laws, as most recently amended by section 33 of chapter 188 of the acts of 2010, is hereby further amended by adding the following clause:-
(25) For the acquisition of a dam or the removal, repair, reconstruction and improvements to a dam owned by a municipality, as may be necessary to maintain, repair or improve such dam, 40 years; provided, however, that this clause shall include dams, as defined in section 44 of chapter 253, acquired by gift, purchase, eminent domain under chapter 79, or otherwise, and located within a municipality, including any real property appurtenant thereto, if such dam and any appurtenant real property is not at the time of such acquisition owned or held in trust by the commonwealth.