§ 56-0305. Application procedure.

1. Any municipality or soil and water conservation district may make
an application for such state assistance payment, in a manner, form, and
time frame and containing such information as the respective
commissioner, the president of the environmental facilities corporation
or the secretary of state may require. Subject to the provisions of
section thirty-two of the chapter of the laws of 1996 which added this
section, the respective commissioner, the president of the environmental
facilities corporation or the secretary of state shall review such
application and may approve, disapprove, or recommend modifications
thereto consistent with applicable law, criteria, standards, or rules
and regulations relative to such projects.

2. In reviewing such applications for eligibility, the respective
commissioner, the president of the environmental facilities corporation
or the secretary of state shall give due consideration to:

(a) the suitability and feasibility of the project in relation to the
goals of the applicable program or plan;

(b) the priority of the project in relationship to other projects
proposed under the same program or plan. Highest priority shall be
granted to projects which will provide the greatest reduction in
pollutants or most significant habitat improvement. For water quality
improvement projects which have been developed with the assistance of,
or by any other state agencies, the respective commissioner, the
president of the environmental facilities corporation or secretary of
state shall be consulted with when determining the priority of the
project;

(c) the availability of matching funds on the part of the municipality
or the soil and water conservation district to finance the
municipality's or soil and water conservation district's share of the
project cost. In submitting the application, the municipality or soil
and water conservation district shall submit proof to the satisfaction
of the respective commissioner, the president of the environmental
facilities corporation or secretary of state of the availability of such
matching funds; and

(d) the urgency of the need to provide state assistance payments for
the project in relation to the availability of other funding sources and
the municipality's or soil and water conservation district's ability to
finance such project based on the availability of other moneys including
federal funds.

3. Upon approval of an application for such assistance payment, the
respective commissioner, the president of the environmental facilities
corporation or the secretary of state and the municipality or soil and
water conservation district shall enter into a contract for such payment
toward the cost of the approved project which shall include the
following provisions:

(a) A current estimate of the cost of the project as determined by the
respective commissioner, the president of the environmental facilities
corporation or the secretary of state at the time of the execution of
the contract and a specific timetable for progress and completion of the
project;

(b) An agreement by the respective commissioner, the president of the
environmental facilities corporation or secretary of state to make state
assistance payments toward the cost of the project by periodically
reimbursing the municipality or soil and water conservation district for
costs incurred during the progress of the project to the maximum agreed
upon state share. Such costs are subject to final computation and
determination by the respective commissioner, the president of the
environmental facilities corporation or secretary of state upon
completion of the project; and

(c) An agreement by the municipality or soil and water conservation
district to proceed expeditiously with the project and to complete the
project in accordance with the timetable set out in the contract as so
approved by the respective department or authority and with the
conditions of applicable permits, administrative orders, or judicial
orders. A finding by the respective commissioner, the president of the
environmental facilities corporation or secretary of state that the
municipality or soil and water conservation district has not met the
conditions of the contract in good faith shall constitute a material
breach of the contract.