§ 46-12.2-6. Establishment of the water pollution control revolving fund, the Rhode Island water
pollution control revolving fund and the local interest subsidy trust fund — Sources
of funds — Permitted uses.
(a) The agency shall be the instrumentality of the state for administration of the water
pollution control revolving fund, the Rhode Island water pollution control revolving
fund, and the local interest subsidy trust fund, and such other funds it holds or
for which it is responsible, and, in conjunction with the department, is empowered
to and shall take all action necessary or appropriate to secure to the state the benefits
of title VI of the Clean Water Act, 33 U.S.C. § 1381 et seq., and other federal or state legislation pertaining to the funds and to the
financing of approved projects. Without limiting the generality of the foregoing and
other powers of the agency provided in this chapter, the agency is empowered to and
shall:
(1) Cooperate with appropriate federal agencies in all matters related to administration
of the water pollution control revolving fund and, pursuant to the provisions of this
chapter, administer the fund and receive and disburse such funds from any such agencies
and from the state as may be available for the purpose of the fund.
(2) Administer the Rhode Island water pollution control revolving fund and the local interest
subsidy trust fund, and receive and disburse such funds from the state as may be available
for the purpose of the funds subject to the provisions of this chapter.
(3) In cooperation with the department, prepare, and submit to appropriate federal agencies
applications for capitalization grants under title VI of the Clean Water Act, 33 U.S.C. § 1381 et seq., and enter into capitalization grant agreements, operating agreements, and
other agreements with appropriate federal and state agencies, and accept and disburse,
as provided herein, any capitalization grant awards made under title VI of the Clean
Water Act, 33 U.S.C. § 1381 et seq.
(4) Cooperate with the department in the preparation and submission to appropriate federal
and state agencies of intended use plans identifying the use of capitalization grant
awards and other moneys in the water pollution control revolving fund.
(5) In cooperation with the department, prepare and submit to appropriate federal agencies,
the department and the governor, annual and other reports and audits required by law.
(6) Subject to the provisions of this chapter both to make, and enter into binding commitments
to provide financial assistance to local governmental units, persons or corporations
from amounts on deposit in the water pollution control revolving fund, the Rhode Island
water pollution control revolving fund and from other funds of the agency; and to
provide, and enter into binding commitments to provide subsidy assistance for loans,
local governmental obligations and non-governmental obligations from amounts on deposit
in the local interest subsidy trust fund.
(7) Establish and maintain fiscal controls and accounting procedures conforming to generally
accepted government accounting standards sufficient to ensure proper accounting for
receipts in and disbursements from the water pollution control revolving fund, the
Rhode Island water pollution control revolving fund, the local interest subsidy trust
fund and other funds it holds or for which it is responsible and, adopt such rules,
regulations, procedures, and guidelines which it deems necessary to ensure that local
governmental units, persons and corporations administer and maintain approved project
accounts and other funds and accounts relating to financial assistance in accordance
with generally accepted government accounting standards.
(b) The agency shall establish and set up on its books a special fund, designated the
water pollution control revolving fund, to be held in trust and to be administered
by the agency solely as provided in this chapter and in any trust agreement securing
bonds of the agency. The agency shall credit to the water pollution control revolving
fund or one or more accounts therein:
(1) All federal capitalization grant awards received under title VI of the Clean Water
Act, 33 U.S.C. § 1381 et seq., provided the agency shall transfer to the department the amount allowed
by § 603(d)(7) of the Water Quality Act, 33 U.S.C. § 1383(d)(7), to defray administration expenses;
(2) All amounts appropriated or designated to the agency by the state for purposes of
the fund;
(3) To the extent required by federal law, loan repayments and other payments received
by the agency on any loans, local governmental obligations and non-governmental obligations;
(4) All investment earnings on amounts credited to the fund to the extent required by
federal law;
(5) All proceeds of bonds of the agency to the extent required by any trust agreement
for such bonds;
(6) All other monies which are specifically designated for this fund, including, amounts
from the Rhode Island Clean Water Act environmental trust fund, gifts, bequests, administrative,
civil and criminal penalties, or other funds from any public or private sources; and
(7)(i) Any other amounts required by the provisions of this chapter, agreement, or any other
law or by any trust agreement pertaining to bonds to be credited to the fund or which
the agency in its discretion shall determine to credit thereto.
(ii) At the request of the governor, the agency shall take all action necessary to transfer
the state's allotment under title II of the Clean Water Act, 33 U.S.C. § 1281 et seq., for federal fiscal year 1989 and each federal fiscal year thereafter, to
the purposes of the water pollution control revolving fund, provided that any portion
of any allotment which, under the provisions of the Clean Water Act, 33 U.S.C. § 1251 et seq., may not be transferred to or used for the purposes of the water pollution
control revolving fund, shall continue to be received and administered by the department
as provided by law.
(c) The agency shall establish and set up on its books a special fund, designated the
Rhode Island water pollution control revolving fund, to be held in trust and to be
administered by the agency solely as provided in this chapter and in any trust agreement
securing bonds of the agency. The agency shall credit to the Rhode Island water pollution
control revolving fund or one or more accounts therein:
(1) All amounts appropriated or designated to the agency by the state for purposes of
the fund;
(2) At its discretion, and to the extent allowed by law, loan repayments and other payments
received by the agency on any loans, local governmental obligations and non-governmental
obligations;
(3) At its discretion, all investment earnings and amounts credited to the fund;
(4) All proceeds of bonds of the agency to the extent required by any trust agreement
for such bonds;
(5) All other monies which are specifically designated for this fund, including, amounts
from the Rhode Island Clean Water Act environmental trust fund, gifts, bequests, administrative,
civil and criminal penalties, or other funds from any public or private sources; and
(6) Any other amounts required by provisions of this chapter or agreement, or any other
law or any trust agreement pertaining to bonds to be credited to the fund or which
the agency in its discretion shall determine to credit thereto.
(d) Except to the extent limited by federal law, and subject to the provisions of this
chapter, to the provisions of any agreement with the state authorized by § 46-12.2-7, and to any agreements with the holders of any bonds of the agency or any trustee
therefor, amounts held by the agency for the account of either the water pollution
control revolving fund or the Rhode Island water pollution control revolving fund
shall be applied by the agency, either by direct expenditure, disbursement, or transfer
to one or more other funds and accounts held by the agency or maintained under any
trust agreement pertaining to bonds, either alone or with other funds of the agency,
to the following purposes:
(1) To provide financial assistance to a local governmental unit or corporation to finance
costs of approved projects, and to refinance the costs of the projects, subject to
such terms and conditions, if any, as are determined by the department and/or the
agency in accordance with § 46-12.2-8;
(2) To purchase or refinance debt obligations of a local governmental unit or corporation,
or to provide guarantees, insurance or similar forms of financial assistance for the
obligations;
(3) To fund reserves for bonds of the agency and to purchase insurance and pay the premiums
therefor, and pay fees and expenses of letters or lines of credit and costs of reimbursement
to the issuers thereof for any payments made thereon or on any insurance, and to otherwise
provide security for, and a source of payment for, by pledge, lien, assignment, or
otherwise as provided in § 46-12.2-14, bonds of the agency issued in accordance with this chapter; and
(4)(i) To pay expenses of the agency and the department in administering the funds and the
financial assistance programs of the agency authorized by this chapter. As part of
the annual appropriations bill, the department shall set forth the gross amount of
expenses received from the agency and a complete, specific breakdown of the sums retained
and/or expended for administrative expenses.
(ii) By way of illustration, not by limitation, in the personnel area, the breakdown of
administrative expenses should contain the number of personnel paid, the position
numbers of the personnel, and whether or not the position is a new position or a position
which had been funded previously by federal funds or a position which had been previously
created but unfunded.
(e) The agency shall also establish and set up on its books a special fund, designated
the local interest subsidy trust fund, to be held in trust and to be administered
by the agency solely as provided in this chapter and in any trust agreement securing
bonds of the agency. The agency may maintain a separate account in the local interest
subsidy trust fund for each local governmental unit or corporation which has received
a loan from the agency, in accordance with this chapter, to separately account for
or otherwise segregate all or any part of the amounts credited to the fund and receipts
in and disbursements from the fund. To the extent that the agency is required by this
chapter, by any loan agreement or by any trust agreement, it shall, and, to the extent
that it is permitted, it may in its discretion, credit to the local interest subsidy
trust fund, and to one or more of the accounts or subaccounts therein:
(1) All amounts appropriated or designated to the agency by the state for purposes of
the fund;
(2) Loan repayments and other payments received on loans, local governmental obligations,
and non-governmental obligations;
(3) Investment earnings on amounts credited to the local interest subsidy trust fund;
(4) Proceeds of agency bonds;
(5) All other monies which are specifically designated for this fund including, amounts
from the Rhode Island Clean Water Act environmental trust fund, gifts, bequests, administrative,
civil and criminal penalties, or other funds from any public or private sources; and
(6) Any other amounts permitted by law.
(f) Subject to any agreement with the state authorized by § 46-12.2-7, to the provisions of § 46-12.2-8, and to any agreement with the holders of any bonds of the agency or any trustee
therefor, amounts held by the agency for the account of the local interest subsidy
trust fund shall be applied by the agency, either by direct expenditure, disbursement,
or transfer to one or more other funds and accounts held by the agency or maintained
under any trust agreement pertaining to bonds, either alone or with other funds of
the agency, to the following purposes:
(1) To pay or provide for all or a portion of the interest otherwise payable by local
governmental units, persons or corporations on loans, local governmental obligations,
and non-governmental obligations, in the amounts and on terms determined by the agency
in accordance with § 46-12.2-8;
(2) To provide a reserve for, or to otherwise secure, amounts payable by local governmental
units, persons or corporations on loans, local governmental obligations and non-governmental
obligations outstanding in the event of default thereof; amounts in any account in
the local interest subsidy trust fund may be applied to defaults on loans outstanding
to the local governmental unit, person or corporation for which the account was established
and, on a parity basis with all other accounts, to defaults on any loans, local governmental
obligations, or non-governmental obligations outstanding; and
(3) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or
otherwise as provided in § 46-12.2-14, any bonds of the agency.
(g) Subject to any express limitation of this chapter pertaining to expenditure or disbursement
of funds or accounts held by the agency, funds or accounts held by the agency may
be transferred to any other fund or account held by the agency and expended or disbursed
for purposes permitted by the fund or account.