KRS 224A.308: Establishment of program to detect water loss from distribution lines or

develop or maintain asset management plans -- Loans forgiven.

(1) The authority shall establish a program to assist governmental agencies in detecting

water loss from d istribution lines or develop or maintain asset management plans.

This may include contracting with third parties to conduct water loss audits, the

creation of asset management plans, and leak detection. The assistance may include

giving low interest loans, on a priority basis established by the authority consistent

with the findings and purposes set out in KRS 224A.300, for the repair or

replacement of distribution facilities, deemed reasonable by the authority,

undertaken as a result of the water loss audit.

(2) The authority may forgive any amount of a distribution facility repair or

replacement loan from the authority remaining unpaid if:

(a) Within five (5) years of entering into the loan agreement the governmental

agency merges with or consolidates with at least one (1) other public or

private water system; and

(b) The merger or consolidation is consistent with a water management planning

council plan as reviewed and prioritized under KRS 151.607.