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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 Protection
Agency records which the administrator reasonably requires to review in order to
determine compliance with any applicable provision of law.
(12) 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.
(13) 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.
(14) 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.
(15) 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.
(16) 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.
(17) 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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