Section 1. As used in this chapter, the following words shall have, unless the context clearly indicates otherwise, the following meanings:''Board'', the board of trustees of the Massachusetts Clean Water Trust.''Bond act'', any general or special law authorizing a local governmental unit to incur indebtedness for all or any part of the cost of a water pollution abatement project.''Bonds'', bonds, notes or other evidence of indebtedness of the trust.''Committed contract assistance'', in any year, the sum of: (i) the amount of contract assistance that the commonwealth has committed to provide during the year with respect to bonds of the trust issued, subsidy funds established and all other board-approved financial assistance established or committed prior to such year; and (ii) the amount of contract assistance that the board determines will be required to be committed during the year in order to provide subsidies or other financial assistance, including, without limitation, with respect to bonds of the trust expected to be issued in such year.''Cost'', as applied to any water pollution abatement project, any or all costs, whenever incurred, approved by the department in accordance with section twenty-seven A of chapter twenty-one, of carrying out a project including, without limiting the generality of the foregoing, costs for planning, preparation of studies and surveys, design, construction, expansion, facilities, improvement and rehabilitation, acquisition of real property, personal property, materials, machinery or equipment, start-up costs, demolitions and relocations, reasonable reserves and working capital, interest on loans, local governmental obligations and notes in anticipation thereof prior to and during construction of such project or prior to the date of such loan, if later, administrative, legal and financing expenses, and other expenses necessary or incidental to the aforesaid.''Clean Water Act'', the Federal Water Pollution Control Act, Public Law 92–500, 33 USC, Secs. 1251 et seq.''Department'', the department of environmental protection.''Drinking water project'', a project of a type or category which the department has determined, consistent with guidance issued by the United States Environmental Protection Agency in accordance with the Safe Drinking Water Act, shall facilitate compliance with national primary drinking water regulations under section 1412 of the Safe Drinking Water Act or otherwise significantly further the health protection objectives of the Safe Drinking Water Act or the department's drinking water regulations including, without limitation, the rehabilitation or development of water sources to replace contaminated sources, the installation or upgrade of drinking water treatment or storage facilities, the installation or replacement of transmission and distribution pipes to prevent contamination and the planning and design of eligible projects.''Eligible borrower'', with respect to a water pollution abatement project, a local governmental unit authorized to own, operate, finance or otherwise implement such water pollution abatement projects and, with respect to a drinking water project, a local governmental unit or any other person, public or private, authorized to own, operate, finance or otherwise implement such drinking water project.''Financial assistance or other forms of financial assistance'', a type of assistance provided to or on behalf of an eligible borrower as authorized by Title VI of the Clean Water Act, as defined herein, or Title XIV of the Safe Drinking Water Act, as defined herein, approved by the department under section 27A of chapter 21 or section 18 of this chapter.''Fund'', the Water Pollution Abatement Revolving Fund, established pursuant to the provisions of section two L of chapter twenty-nine.''General revenues'', when used with reference to a local governmental unit, revenues, receipts, assessments and other monies of a local governmental unit, and all rights to receive the same including without limitation (i) revenue as defined in section one of chapter forty-four, (ii) local system revenues, (iii) assessments upon or payments received from any other local governmental unit which is a member or service recipient of the local governmental unit, (iv) proceeds of loans made in accordance with this chapter and of grants made in accordance with section thirty-three E of chapter twenty-one, (v) investment earnings, (vi) reserves for debt service or other capital or current expenses, (vii) receipts from any tax, excise or fee all or a part of the receipts of which are payable or distributable to or for the account of the local governmental unit, (viii) local aid distributions and (ix) receipts, distributions, reimbursements and other assistance from the United States; provided, however, that local general revenues shall not include any monies restricted by law to specific statutorily defined purposes inconsistent with their treatment as general revenues for purposes of this chapter.''Loan'', a form of financial assistance subject to repayment in whole or in part which is provided by the trust to a local governmental unit or other eligible borrower for all or any part of the cost of a water pollution abatement project or a drinking water project, as applicable. A loan may (i) provide for planning, construction, bridge or permanent financing; (ii) be disbursed in anticipation of reimbursement of or direct payment of costs of a project or take the form of a guarantee, line of credit, bond purchase agreement, or other form of financial assistance; and (iii) may be issued at such rates of interest including, without limitation, variable rates and zero interest, may mature at such times and be redeemable at the option of the board or the local governmental unit or other eligible borrower, all as may be determined in accordance with this chapter; provided, however, that for all purposes of this chapter, notwithstanding any other general or special law to the contrary and unless otherwise determined by the board, a loan made at one-half of market interest rate shall be deemed the financial equivalent of a grant of 25 per cent of the eligible costs of the project financed by the loan and a loan made at a zero rate of interest shall be deemed the financial equivalent of a grant of 50 per cent of the eligible costs of the project financed by the loan.''Loan agreement'', an agreement entered into between the trust and a local governmental unit or other eligible borrower pertaining to a loan or the purchase and delivery of local governmental obligations or other instruments evidencing or securing a loan. A loan agreement may contain, in addition to financial terms, provisions relating to the regulation and supervision of a water pollution abatement project or the wastewater system of which it is a part, to which provisions the department may join as a party to the agreement as authorized in section twenty-seven A of chapter twenty-one. The term ''loan agreement'' shall include, without limitation, a loan agreement, trust agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note resolution, loan order or similar instrument whether secured or unsecured.''Local aid distributions'', any receipts, distributions, reimbursements or other assistance payable by the commonwealth to or for the account of a local governmental unit including, without limitation, payments under sections eighteen A, eighteen B, eighteen C, eighteen D and eighteen E of chapter fifty-eight and under any other local reimbursement or assistance program described in section twenty-five A of said chapter fifty-eight.''Local government obligations or local governmental obligations'', bonds, notes or other evidence of indebtedness issued by a local government unit to evidence a loan.''Local government unit or local governmental unit'', a town, city, district, commission, agency, authority, board or other instrumentality of the commonwealth or of any of its political subdivisions, including any regional local governmental unit.''Local system revenues'', all rates, rents, fees, assessments, charges and other receipts derived or to be derived by a local governmental unit from any water pollution abatement projects, any system of which such projects are a part and any other revenue producing facilities under its ownership or control, or from the services provided thereby, including without limitation proceeds of grants, gifts, appropriations and loans, including the proceeds of loans or grants made by the trust or the department, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation and the sale or other disposition of property; provided, however, that local system revenues shall not include any ad valorem taxes levied directly by the local governmental unit on any real and personal property.''Regional local governmental unit'', a local government unit which provides wastewater collection or treatment services either on a wholesale or retail basis to service recipients in two or more cities or towns, or designated parts thereof, and which derives all or part of its general revenues or local system revenues by assessment or other charge on such cities or towns.''Revenues'', when used with reference to the trust, any receipts, fees, revenues or other payments received or to be received by the trust, including without limitation receipts and other payments received by or deposited in the fund, payments of principal, interest or other charges on loans, grants, appropriations or other assistance from the commonwealth or the United States or any political subdivision or instrumentality of either, investment earnings on its funds and accounts including without limitation the fund, and any other fees, charges or other income received or receivable by the trust or the fund.''Safe Drinking Water Act'', Title XIV of the Federal Public Health Service Act, commonly known as the Safe Drinking Water Act, 42 USC 300f et seq., as amended.''Trust'', the Massachusetts Clean Water Trust; provided, however, that the Massachusetts Clean Water Trust shall be the successor to the water pollution abatement trust.''Trust agreement'', any agreement entered into by the board providing for the issuance, security and payment of bonds. The term ''trust agreement'' shall include a trust agreement, trust indenture, security agreement, reimbursement agreement, currency or interest rate exchange agreement, bond or note resolution or other similar instrument.''Water pollution abatement project'', any abatement facilities, including without limitation rehabilitation of abatement facilities to remove, curtail or otherwise mitigate infiltration and inflow, collection system, treatment works and treatment facilities as defined in section twenty-six A of chapter twenty-one, and any eligible facilities for implementation of a nonpoint source pollution control management program or estuary conservation and management plan pursuant to the Clean Water Act.