§ 1285-u. Septic system replacement fund. 1. Definitions. For purposes
of this section:

(a) "Cesspool" means a drywell that receives untreated sanitary waste
containing human excreta, which sometimes has an open bottom and/or
perforated sides.

(b) "Fund" means the state septic system replacement fund created by
this section.

(c) "Participating county" means a county that notifies the
corporation that it seeks authority to administer a septic system
replacement program within its municipal boundaries and agrees to abide
by the program's goals, guidelines, eligibility requirements and
reimbursement procedures and provide information to property owners
regarding program parameters including eligibility criteria.

(d) "Septic system" means a system that provides for the treatment
and/or disposition of the combination of human and sanitary waste with
water not exceeding one thousand gallons per day, serving a single
parcel of land, including residences and small businesses.

(e) "Septic system project" means the replacement of a cesspool with a
septic system, the installation, replacement or upgrade of a septic
system or septic system components, or installation of enhanced
treatment technologies, including an advanced nitrogen removal system,
to significantly and quantifiably reduce environmental and/or public
health impacts associated with effluent from a cesspool or septic system
to groundwater used as drinking water, or a threatened or an impaired
waterbody.

(f) "Small business" means any business which is resident in this
state, independently owned and operated, not dominant in its field, and
employing not more than one hundred individuals.

2. (a) There is hereby created the state septic system replacement
fund, which shall be administered by the corporation to reimburse
property owners or at the written request of a property owner, the
septic system installer contracted by the property owner, for up to
fifty percent of the eligible costs incurred for eligible septic system
projects, provided that no property owner shall be reimbursed more than
ten thousand dollars and no septic system installer may be reimbursed
more than ten thousand dollars per property.

(b) Eligible costs include design and installation costs, and costs of
the system, system components, or enhanced treatment technologies, but
shall not include costs associated with routine maintenance such as a
pump out of a septic tank.

(c) The department of environmental conservation, in consultation with
the department of health and participating counties, shall from the list
of participating counties establish priority geographic areas and, in
the absence of county information, identify eligible septic system
projects, based on an area's vulnerability to contamination, including
the presence of a sole source aquifer, or known water quality
impairment, population density, soils, hydrogeology, climate, and
reasonable ability for septic system projects to mitigate water quality
impacts. The department of environmental conservation may delegate to a
participating county the identification of priority geographic areas.
The department of environmental conservation, in consultation with
participating counties in which priority areas have been identified,
shall determine the amount of money from the fund to be provided to each
participating county based on density, demand for reimbursement from the
fund and the criteria used to establish the priority geographic areas.
The corporation shall publish information, application forms, procedures
and guidelines relating to the program on its website and in a manner
that is accessible to the public.

(d) The corporation shall provide state financial assistance payments
from the fund, from moneys appropriated by the legislature and available
for that purpose, to participating counties to administer a septic
system replacement program to support septic system projects within
their municipal boundaries undertaken by property owners within their
municipal boundaries. Where such project is located in a priority
geographic area identified by the department of environmental
conservation as threatened or impaired by nitrogen, including
groundwater used as drinking water, such septic system project must
reduce nitrogen levels by at least thirty percent.

(e) The corporation shall make payments monthly to a participating
county upon the receipt by the corporation of a certification from the
participating county of the total costs incurred by property owners
within its municipal boundaries for septic system projects within its
municipal boundaries that are eligible for reimbursement from the fund.

3. (a) A participating county shall notify property owners who may be
eligible to participate in the program. Determinations of eligibility
will be made by the participating county based on the published program
criteria and consideration of a property's location in relation to a
waterbody, impacts to groundwater used as drinking water, and the
condition of the property owner's current septic system as determined
by:

(i) the county health department official; or

(ii) other designated authority having jurisdiction, pursuant to
septic inspections required by a municipal separate storm sewer system
permit; or

(iii) a septic contractor pursuant to the applicable county sanitary
code provided, however, in cases where a property owner has authorized
in writing such contractor to receive reimbursement directly, additional
verification shall be required.

(b) An owner of property served by a septic system or cesspool may
apply to a participating county on an application substantially in the
form provided by the corporation.

(c) Property owners in participating counties must have signed a
property owner participation agreement with the county before the start
of the design phase to be eligible for reimbursement from the fund. The
agreement must be substantially in the form provided by the corporation
and include, without limitation, the program's goals, guidelines,
eligibility requirements and reimbursement procedures.

(d) A property owner may apply for reimbursement of eligible costs by
submitting to the participating county a reimbursement application,
which must include at least:

(i) a signed property owner participation agreement;

(ii) a completed reimbursement application form substantially in the
form provided by the corporation;

(iii) any applicable design approval for the septic system project;

(iv) description of all work completed;

(v) cost documentation and invoice or invoices for eligible costs; and

(vi) any written authorization for a septic system installer to
receive reimbursement directly.

(e) Participating counties will be responsible for reviewing their
property owners' applications and approving, modifying or denying the
reimbursement requests as appropriate and issuing reimbursement payments
to property owners from financial assistance payments made to the county
from the fund.

(f) Participation in this program and the receipt of payments shall
not prevent participating counties from providing additional
reimbursement to property owners.

(g) Subject to the limitations of paragraph (d) of this subdivision,
the county may set graduated incentive reimbursement rates for septic
system projects to maximize pollution reduction outcomes.

4. On or before March first, two thousand nineteen, and annually
thereafter, the corporation shall submit to the governor, the temporary
president of the senate and the speaker of the assembly a report
regarding the program. Such report shall include, but shall not be
limited to, the number and amount of grants provided, the number and
amount of any grants denied, geographic distribution of such projects
and any other information the corporation determines useful in
evaluating the benefits of the program.