74:05:07:10.  Eligible use of funds. The board may award funds for facilities included in the state water facilities plan for one or more of the following uses:

          (1)  To improve, restore, enlarge, extend, construct, or protect facilities, lakes, streams, rivers, watersheds, and other surface or ground water resources;

          (2)  To construct, acquire, or lease buildings and works essential to the operation or protection of facilities;

          (3)  To construct or relocate roads, bridges, utilities, fences, and other public improvements or relocate roads, bridges, utilities, fences, and other private improvements related to the construction and operation of facilities;

          (4)  For the following if they are necessary for the construction or operation of a facility funded under subdivisions (1), (2), or (3) of this section:

               (a)  Fees, services, and costs such as legal, engineering, environmental, architectural, fiscal advisory, recording, planning, management, and for establishing or acquiring rights;

               (b)  The purchase of an interest in or access to existing facilities if the purchase is necessary to provide efficient service and an agreement between buyer and seller is reached;

               (c)  The acquisition of interests in land, water rights, permits, rights-of-way, and other evidence of land or water control which are necessary for development of the facility;

               (d)  Purchase or lease of equipment necessary to install, maintain, extend, protect, operate, or use facilities;

               (e)  Start-up expenses for a period not exceeding one year if the recipient will be unable to pay such expenses;

               (f)  Refinancing debts incurred by or on behalf of a water resources project sponsor if both of the following conditions exist:

                       (i)  The debts were incurred for the facility, any part of the facility, or a service being refinanced; and

                      (ii)  Arrangements cannot be made with the creditors to extend or modify the terms of the debt so that the project can remain fiscally sound;

          (5)  To pay eligible expenses incurred before approval of funding if there were reasons for proceeding before funding was approved;

          (6)  Capitalized interest; or

          (7)  Televising and cleaning sewer lines.

          The board may consider in-kind contributions as match at a level established by usual and customary rates. All in-kind contributions require prior approval by the board or its designated agent.

Source: 13 SDR 23, effective September 3, 1986; 13 SDR 129, 13 SDR 141, effective July 1, 1987; 19 SDR 102, effective January 17, 1993; 19 SDR 202, effective July 4, 1993; 21 SDR 97, effective November 28, 1994; 28 SDR 95, effective December 19, 2001; 33 SDR 106, effective December 26, 2006; 40 SDR 14, effective July 29, 2013.

General Authority: SDCL 46A-1-65.

Law Implemented: SDCL 46A-1-61, 46A-1-63.1, 46A-1-64.