I. (a) The state of New Hampshire shall pay annually 20 percent of the annual amortization charges, meaning principal and interest, on the eligible costs resulting from the acquisition and construction of sewage disposal facilities by municipalities (meaning counties, cities, towns, or village districts), in accordance with N.H. Rev. Stat. § 485:8, N.H. Rev. Stat. § 485-A:4, IX, and N.H. Rev. Stat. § 485-A:4, XII, for the control of water pollution. The word “construction” shall include engineering services, in addition to the construction of new sewage treatment plants, pumping stations, intercepting sewers, and sewer separation by storm drains when the latter can be demonstrated as a cost-effective method for eliminating a combined sewer overflow structure; the altering, improving or adding to existing treatment plants, pumping stations, intercepting sewers, and sewer separation by storm drains when the latter can be demonstrated as a cost-effective method for eliminating a combined sewer overflow structure; provided the construction has been directed by the department, or constitutes a voluntary undertaking designed to control or reduce pollution in the surface waters of the state as defined in N.H. Rev. Stat. § 485-A:2, and the plan therefor is approved in compliance with the provisions of N.H. Rev. Stat. § 485:8, N.H. Rev. Stat. § 485-A:4, IX, and N.H. Rev. Stat. § 485-A:4, XII. The term “eligible costs” as used in this chapter, except as noted, shall mean the entire cost of the construction of treatment plants, pumping stations, intercepting sewers and sewer separation by storm drains as defined in the Clean Water Act of 1977, less any other grant or subsidy. Cash payments, net of any other grant or subsidy, made by municipalities toward eligible costs shall also be eligible for state contributions in accordance with this section.
(b) Notwithstanding the provisions of subparagraph I(a), state contributions shall not apply toward original costs for the construction of any sewage disposal facility that has received a subsidy in the form of principal forgiveness provided through the American Recovery and Reinvestment Act of 2009.
II. Notwithstanding the provisions of paragraph I, the state of New Hampshire shall make a grant to the respective communities for the following specific projects which are enumerated in this paragraph, in an amount that, subsequent to the application of all available federal funds and the 5 percent local share of each said project, shall provide funds to pay for all interest costs incurred by issuance of bond anticipation notes and upon completion of said project, shall provide funds which are equivalent to the annual amortization charges, meaning principal and interest, on the remaining portion of the eligible costs resulting from the acquisition and construction of said sewage disposal facilities:
(a) Berlin;
(b) Dover (secondary treatment facility, pump station, and force main);
(c) Goffstown contracts 1C and 3A;
(d) Littleton secondary treatment facility;
(e) Manchester (west interceptor north II, Piscataquog River interceptor, northeast interceptor, west interceptor south);
(f) Nashua secondary treatment facility;
(g) Newport secondary treatment facility;
(h) Plymouth secondary treatment facility;
(i) Portsmouth expansion of primary treatment facility;
(j) Walpole village interceptor sewers;
(k) Winchester Ashuelot village interceptor.
III. Notwithstanding the provisions of paragraphs I and II, beginning July 1, 1993, the state of New Hampshire shall pay 20 percent of the annual amortization charges, meaning principal and interest, on the costs resulting from the acquisition and construction of sewage disposal facilities by municipalities (meaning counties, cities, towns, or village districts), for the control of water pollution, which have commenced construction of wastewater treatment facilities since July 1, 1990.
(a) The word “construction” shall include:
(1) Engineering services related to construction activities identified under this paragraph;
(2) The construction of new sewage treatment plants, pumping stations, intercepting sewers, and sewer separation by storm drains when the latter can be demonstrated as a cost-effective method of eliminating a combined sewer overflow structure; and
(3) The altering, improving or adding to existing treatment plants, pumping stations, intercepting sewers, and sewer separation by storm drains when the latter can be demonstrated as a cost-effective method for eliminating a combined sewer overflow structure.
(b) Construction undertaken under this paragraph shall be required to constitute an undertaking designed to control or reduce pollution in the ground waters or surface waters of the state as defined in N.H. Rev. Stat. § 485-A:2, and plans shall be approved in compliance with the provisions of N.H. Rev. Stat. § 485:8, N.H. Rev. Stat. § 485-A:4, IX, and N.H. Rev. Stat. § 485-A:4, XII.
(c) The word “costs” as used in this paragraph shall mean the eligible costs of the construction of treatment plants, pumping stations, intercepting sewers and sewer separation by storm drains as defined in the Clean Water Act of 1977, as amended, and as further defined in rules and regulations promulgated by the U.S. Environmental Protection Agency as provided for in the Clean Water Act of 1977, as amended.
(d) The term “eligible costs” as used in this paragraph shall exclude land acquisition, except for land which shall be an integral part of a treatment process; easements and rights-of-way necessary to the project; collector sewers; and any administrative, legal, and fiscal costs related to the project.
IV. The commissioner of the department of environmental services shall:
(a) Establish and maintain a priority list of projects eligible to receive grants pursuant to N.H. Rev. Stat. § 486:1, III. The priority list shall contain the following:
(1) A section listing the highest priority projects ready for construction and anticipated to receive grants from appropriated funds within the next fiscal year; and
(2) A section listing the projects that may receive grants from appropriations in subsequent fiscal years.
(b) The commissioner or his designee shall hold an annual public hearing to receive testimony on the projects recommended by the department to receive grants in the next fiscal year. After considering the testimony offered at the hearing, the commissioner shall finalize the priority list for the next fiscal year, and project assistance shall be granted accordingly.
(c) The commissioner shall continue to use the priority system as approved by the U.S. Environmental Protection Agency in accordance with 40 C.F.R. part 35 to rank projects for placement on the lists established under N.H. Rev. Stat. § 486:1, IV(a).
(d) The lists and priority system required by N.H. Rev. Stat. § 486:1, IV shall not be considered rules subject to the provisions of RSA 541-A.
V. The department shall perform the following functions related to administration of the provisions of N.H. Rev. Stat. § 486:1, III:
(a) Evaluate and recommend projects to be placed on the priority list established under N.H. Rev. Stat. § 486:1, IV.
(b) Assist municipalities to:
(1) Perform preliminary project planning and design.
(2) Select a qualified consulting engineer.
(3) Negotiate an engineering services agreement in accordance with the provisions of N.H. Rev. Stat. § 485-A:4, XII.
(4) Develop an acceptable grant application for funding under N.H. Rev. Stat. § 486:1, III.
(5) Conduct pre-construction conferences.
(6) Resolve any bid protests filed during the bidding period.
(7) Accomplish tasks necessary during the start-up phase of wastewater treatment plants or major pumping stations.
(c) Review and approve preliminary and final facilities plans for the proposed project.
(d) Review construction plans and specifications in accordance with N.H. Rev. Stat. § 485:8 and N.H. Rev. Stat. § 485-A:4, IX.
(e) Process grant applications for state approval.
(f) Approve construction plans and specifications and issue authorizations to advertise contracts for bids.
(g) Review and approve any revisions to plans and specifications prior to formal advertisement by the municipality.
(h) Review and approve formal addenda to plans and specifications during the formal advertising period.
(i) Review bid documentation to establish the low responsive and responsible bidder.
(j) Issue authorization to award the construction contract to the lowest responsive and responsible bidder.
(k) Perform periodic site inspections to insure compliance with executed construction contract documents.
(l) Review and approve operation and maintenance manuals.
(m) Review and approve change orders during the construction period.
(n) Review all invoices related to the project submitted to the grantee on a monthly basis.
(o) Conduct a final inspection of completed facilities and certify substantial completion.
(p) Based upon a satisfactory final project inspection, review and approve final eligible project costs.