{"data":{"id":"us-ky/krs-224a.111","jurisdiction":"us-ky","citation":"KRS 224A.111","heading":"Creation of federally assisted wastewater revolving fund -- Purpose --","body":"Duties of authority.\n(1) The federally assisted wastewater revolving fund shall be established in the State\nTreasury and shall be administered by the authority under an agreement with  the\nEnergy and Environment Cabinet to assure compliance with the federal act.\n(2) The fund shall be a dedicated fund and all moneys in the fund shall be dedicated\nsolely to securing the payment of the principal of, interest on, and premium, if any,\nof revenue bonds issued by the authority under subsection (5) of this section which\nare to be secured solely by loan payments made by governmental agencies that have\nbeen deposited in the fund, making transfers to the federally assisted water supply\nrevolving fund, and providing financial assistance to government agencies for the\nconstruction of publicly owned treatment works as defined in Section 212 of the\nfederal act and for the implementation of a management program established under\nSection 319 of the federa l act and for the development and implementation of a\nconservation and management plan under Section 320 of the federal act.\n(3) The authority may enter into grant agreements with the administrator of the United\nStates Environmental Protection Agency and a ccept capitalization grants for the\nrevolving fund in accordance with payment schedules established with the\nadministrator.\n(4) All payments from the administrator pursuant to subsection (3) of this section shall\nbe deposited in the dedicated revolving fund.\n(5) The authority may issue its revenue bonds or seek appropriations for deposit into\nthe revolving fund, including the amounts required to match the capitalization\ngrants from the administrator. An amount not exceeding the amount permitted by\nthe federal act may be used for the reasonable costs of administering the fund, for\nreviewing and regulating project construction and for other reasonable costs of\ncomplying with the federal act.\n(6) The financial assistance which may be provided to governmental ag encies by the\nrevolving fund shall be limited to:\n(a) Making loans, on the condition that the loans are made at or below market\ninterest rates, including interest free loans; that annual principal and interest\npayments will commence no later than when project construction is completed\nor one (1) year after initiation of operations, and all loans will be fully\namortized not later than thirty (30) years after project construction is\ncompleted; that the recipient of a loan will establish a dedicated source of\nrevenue for repayment of loans; and that the fund will be credited with all\npayments of principal and interest on all loans;\n(b) Guaranteeing, or purchasing insurance for obligations of the fund where the\naction would improve credit market access or reduce interest rates;\n(c) Providing moneys with which to carry out the requirements of assistance\nagreements; and\n(d) Providing a source of revenue or security for the payment of principal and\ninterest on bonds or notes issued by the authority or agencies of the state if the\nproceeds of the sale of the bonds will be deposited in the fund.\n(7) The revolving fund shall be established, maintained and credited with repayments\nand the fund balance shall be available in perpetuity solely for its stated purposes.\n(8) The authority shall obligate all payments from the administrator of the United States\nEnvironmental Protection Agency as well as the required state match, within one (1)\nyear after the receipt of the payments.\n(9) Financial assistance may be provided from t he fund only for those infrastructure\nprojects which the Finance and Administration Cabinet has approved from the\nprioritization schedule prepared by the Energy and Environment Cabinet.\n(10) The authority may make and condition loans from the fund as requi red by state or\nfederal law.\n(11) The authority shall establish fiscal controls and accounting procedures sufficient to\nassure proper accounting during appropriate accountin g periods for payments and\ndisbursements received and made by the revolving fund and for fund balances at the\nbeginning and end of the accounting period.\n(12) The authority or the Energy and Environment Cabinet may make or prepare any\nnecessary or required plan or report.\n(13) The authority or the Energy and Environment Cabinet or the loan recipient shall\nmake available to the administrator of the United States Environmental Protection\nAgency records which the administrator reasonably requires to review in order to\ndetermine compliance with any applicable provision of law.\n(14) The authority may enter into any necessary or required agreement and give or make\nany necessary or required assurance or certification with any person to receive\npayments or grants or to make or provide any financial assistance.\n(15) The authority may enter into any necessary or required agreement with federal or\nstate agencies or persons to carry out the provisions of this section.\n(16) If a loan is made from the federally assisted wa stewater revolving fund which will\nfinance the cost of facility planning and the preparation of plans, specifications, and\nestimates for construction of publicly owned treatment works, the state shall ensure\nthat if the recipient of the loan receives a gra nt under section 201(g) of the federal\nact for construction of such treatment works and an allowance under section\n201(1)(l) of the federal act for nonfederal funds expended for the planning and\npreparation, the recipient shall promptly repay the loan to t he extent of the\nallowance.\n(17) Financial assistance may be provided from the federally assisted wastewater\nrevolving fund only with respect to a project which is consistent with plans, if any,\ndeveloped under Sections 205(j), 208, 303(e), 319, and 320 of  the federal act, as\namended.\n(18) The authority shall require as a condition of making a loan or providing other\nassistance, as described in KRS 224A.100(6), from the fund that the recipient of the\nassistance shall maintain project accounts in accordance with generally accepted\ngovernmental accounting standards.\n(19) Assistance may be provided from the fund, other than under subsection (6)(a) of\nthis section, to a governmental agency with respect to the nonfederal share of the\ncosts of a treatment works pr oject for which the governmental agency is receiving\nassistance from the administrator of the United States Environmental Protection\nAgency under any other authority only if the assistance, as determined by the\nFinance and Administration Cabinet, is necessary to allow the project to proceed.","path":["KRS Chapter 224A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44505","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:42Z","sha256":"8e08b1b6064ad0f66b679dfafa25c365964ee771fe8ef671ace2bf5214133c07","source_id":"us-ky","stale":false,"prev":"us-ky/krs-224a.110","next":"us-ky/krs-224a.1115"},"notice":"GroundRules: Original legal text. Not legal advice."}