§ 16-1-305 — Authorized projects; authorized financial assistance

(a) Subject to select water committee review and
recommendation of projects, the account may be used for
financial assistance for the planning, design and construction
of projects on eligible publicly owned water systems which may
be either community or noncommunity water systems. Eligible
projects may be comprised of improvements to all components of a
water supply system as appropriate and permitted by the Safe
Drinking Water Act.
(b) Financial assistance for the projects authorized in
subsection (a) of this section may be in the forms authorized by
the Safe Drinking Water Act including:
(i) Loans at or below market interest rates. Loans
may be awarded only if:
(A) All principal and interest payments on loans
are credited directly to the account;
(B) The annual repayment of principal and
payment of interest begins not later than one (1) year after
project completion;
(C) The loan is fully amortized not later than
thirty (30) years after project completion or not later than
forty (40) years for disadvantaged communities providing the
period of the loan does not exceed the design life of the
project; and
(D) Each loan recipient establishes a dedicated
source of revenue for repayment of the loan.
(ii) Refinancing existing debt obligation of publicly
owned water systems for planning, design and construction of
water systems for which the initial debt was incurred and
construction started after July 1, 1993;
(iii) Purchasing insurance for or guaranteeing local
debt obligations to improve credit market access or reduce
interest rates;
(iv) Grants and other forms of financial assistance.
(c) An amount up to four percent (4%) of the
capitalization grant may be used for costs of administering the
account and shall be deposited into the administrative account.
(d) Repealed By Laws 2010, Ch. 69, § 204.
(e) The board may consider the use of an amount of the
allowable percentage of the capitalization grant for all of the
established set-asides provided for by the Safe Drinking Water
Act.
(f) The board may authorize the use of any amount of the
allowable percentage of the capitalization grant for any set-
aside authorized by the Safe Drinking Water Act.