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224A.1115 Creation of federally assisted water supply revolving fund -Purpose -- Duties of authority.
(1)
The federally-assisted water supply revolving fund shall be established in the
State Treasury and shall be administered by the authority under an agreement
with the Energy and Environment Cabinet to assure compliance with the
federal act.
(2) The fund shall be a dedicated fund and all moneys in the fund shall be
dedicated solely to securing the payment of the principal of, interest on, and
premium, if any, of revenue bonds issued by the authority under subsection (5)
of this section which are to be secured solely by loan payments made by
governmental agencies that have been deposited in the fund, making transfers
to the federally-assisted water supply revolving fund, and providing financial
assistance to government agencies for the construction of publicly-owned
water supply projects.
(3) The authority may enter into grant agreements with the administrator of the
United States Environmental Protection Agency and accept capitalization
grants for the revolving fund in accordance with payment schedules
established with the administrator of the United States Environmental
Protection Agency.
(4) All payments from the administrator of the United States Environmental
Protection Agency pursuant to subsection (3) of this section shall be deposited
in the dedicated revolving fund.
(5) The authority may issue its revenue bonds or seek appropriations for deposit
into the revolving fund, including the amounts required to match the
capitalization grants from the administrator of the United States Environmental
Protection Agency. An amount not exceeding the amount permitted by the
federal act may be used for the reasonable costs of administering the fund, for
reviewing and regulating project construction and for other reasonable costs of
complying with the federal act.
(6) The authority shall make any loan from the revolving fund subject to those
conditions established by state or federal law.
(7) The revolving fund shall be established, maintained, and credited with
repayments and the fund balance shall be available in perpetuity solely for its
stated purposes.
(8) Financial assistance may be provided from the fund only for those
infrastructure projects which the Finance and Administration Cabinet has
approved from the prioritization schedule prepared by the Energy and
Environment Cabinet.
(9) The authority shall establish fiscal controls and accounting procedures
sufficient to assure proper accounting during appropriate accounting periods
for payments and disbursements received and made by the revolving fund and
for fund balances at the beginning and end of the accounting period.
(10) The authority or the Energy and Environment Cabinet may make or prepare
any necessary or required plan or report.
(11) The authority or the Energy and Environment Cabinet or the loan recipient
shall make available to the administrator of the United States Environmental
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Protection Agency records which the administrator reasonably requires to
review in order to determine compliance with any applicable provision of law.
The authority may enter into any necessary or required agreement and give or
make any necessary or required assurance or certification with any person to
receive payments or grants or to make or provide any financial assistance.
The authority may enter into any necessary or required agreement with federal
or state agencies or persons to carry out the provisions of this section.
If the loan is made from the federally-assisted water supply revolving fund
which will finance the cost of facility planning and the preparation of plans,
specifications, and estimates for construction of publicly-owned water supply
projects, the state shall ensure that if the recipient of the loan receives a grant
under the federal act for construction of those water supply projects and an
allowance under the federal act for nonfederal funds expended for the planning
and preparation, the recipient shall promptly repay the loan to the extent of the
allowance.
Financial assistance may be provided from the federally-assisted water supply
revolving fund only with respect to a project which is consistent with plans, if
any, developed under the federal act, as amended.
The authority shall require as a condition of making a loan or providing other
assistance, as described in KRS 224A.100(6), from the fund that the recipient
of the assistance shall maintain project accounts in accordance with
generally-accepted governmental accounting standards.
Assistance may be provided from the fund to a governmental agency with
respect to the nonfederal share of the costs of a water supply system project
for which the governmental agency is receiving assistance from the
administrator of the United States Environmental Protection Agency under any
other authority only if the assistance is necessary to allow the project to
proceed, as determined by the Finance and Administration Cabinet.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 388, effective July 15, 2010. -Amended 2003 Ky. Acts ch. 38, sec. 2, effective June 24, 2003. -- Created 1994
Ky. Acts ch. 373, sec. 8, effective July 15, 1994.
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