Download as PDF
224A.111 Creation of federally assisted wastewater revolving fund -- Purpose -Duties of authority.
(1)
(2)
(3)
(4)
(5)
(6)
The federally assisted wastewater 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.
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 treatment works as defined in Section 212 of the
federal act and for the implementation of a management program established under
Section 319 of the federal act and for the development and implementation of a
conservation and management plan under Section 320 of the federal act.
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.
All payments from the administrator pursuant to subsection (3) of this section shall
be deposited in the dedicated revolving fund.
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. 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.
The financial assistance which may be provided to governmental agencies by the
revolving fund shall be limited to:
(a) Making loans, on the condition that the loans are made at or below market
interest rates, including interest free loans; that annual principal and interest
payments will commence no later than when project construction is completed
or one (1) year after initiation of operations, and all loans will be fully
amortized not later than thirty (30) years after project construction is
completed; that the recipient of a loan will establish a dedicated source of
revenue for repayment of loans; and that the fund will be credited with all
payments of principal and interest on all loans;
(b) Guaranteeing, or purchasing insurance for obligations of the fund where the
action would improve credit market access or reduce interest rates;
(c) Providing moneys with which to carry out the requirements of assistance
agreements; and
(d) Providing a source of revenue or security for the payment of principal and
interest on bonds or notes issued by the authority or agencies of the state if the
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
proceeds of the sale of the bonds will be deposited in the fund.
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.
The authority shall obligate all payments from the administrator of the United States
Environmental Protection Agency as well as the required state match, within one (1)
year after the receipt of the payments.
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.
The authority may make and condition loans from the fund as required by state or
federal law.
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.
The authority or the Energy and Environment Cabinet may make or prepare any
necessary or required plan or report.
The authority or the Energy and Environment Cabinet or the loan recipient shall
make available to the administrator of the United States Environmental 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 a loan is made from the federally assisted wastewater revolving fund which will
finance the cost of facility planning and the preparation of plans, specifications, and
estimates for construction of publicly owned treatment works, the state shall ensure
that if the recipient of the loan receives a grant under section 201(g) of the federal
act for construction of such treatment works and an allowance under section
201(1)(l) of 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 wastewater
revolving fund only with respect to a project which is consistent with plans, if any,
developed under Sections 205(j), 208, 303(e), 319, and 320 of 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, other than under subsection (6)(a) of
this section, to a governmental agency with respect to the nonfederal share of the
costs of a treatment works 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, as determined by the
Finance and Administration Cabinet, is necessary to allow the project to proceed.
Effective: June 24, 2015
History: Amended 2015 Ky. Acts ch. 73, sec. 1, effective June 24, 2015. -- Amended
2010 Ky. Acts ch. 24, sec. 387, effective July 15, 2010. -- Amended 2003 Ky. Acts
ch. 38, sec. 1, effective June 24, 2003. -- Amended 1994 Ky. Acts ch. 373, sec. 7,
effective July 15, 1994. -- Created 1988 Ky. Acts ch. 124, sec. 11, effective March
31, 1988.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.