KRS 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 agree ment 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 an y,

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 Agen cy 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 Environmen tal 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 acco unting 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 revie w 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 administrat or 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.