33 U.S.C. § 1383 : US Code - Section 1383: Water pollution control revolving loan funds

Search 33 U.S.C. § 1383 : US Code - Section 1383: Water pollution control revolving loan funds

(a) Requirements for obligation of grant funds
Before a State may receive a capitalization grant with funds made
available under this subchapter and section 1285(m) of this title,
the State shall first establish a water pollution control revolving
fund which complies with the requirements of this section.
(b) Administration
Each State water pollution control revolving fund shall be
administered by an instrumentality of the State with such powers
and limitations as may be required to operate such fund in
accordance with the requirements and objectives of this chapter.
(c) Projects eligible for assistance
The amounts of funds available to each State water pollution
control revolving fund shall be used only for providing financial
assistance (1) to any municipality, intermunicipal, interstate, or
State agency for construction of publicly owned treatment works (as
defined in section 1292 of this title), (2) for the implementation
of a management program established under section 1329 of this
title, and (3) for development and implementation of a conservation
and management plan under section 1330 of this title. The fund
shall be established, maintained, and credited with repayments, and
the fund balance shall be available in perpetuity for providing
such financial assistance.
(d) Types of assistance
Except as otherwise limited by State law, a water pollution
control revolving fund of a State under this section may be used
only -
(1) to make loans, on the condition that -
(A) such loans are made at or below market interest rates,
including interest free loans, at terms not to exceed 20 years;
(B) annual principal and interest payments will commence not
later than 1 year after completion of any project and all loans
will be fully amortized not later than 20 years after project
completion;
(C) the recipient of a loan will establish a dedicated source
of revenue for repayment of loans; and
(D) the fund will be credited with all payments of principal
and interest on all loans;
(2) to buy or refinance the debt obligation of municipalities
and intermunicipal and interstate agencies within the State at or
below market rates, where such debt obligations were incurred
after March 7, 1985;
(3) to guarantee, or purchase insurance for, local obligations
where such action would improve credit market access or reduce
interest rates;
(4) as a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds
issued by the State if the proceeds of the sale of such bonds
will be deposited in the fund;
(5) to provide loan guarantees for similar revolving funds
established by municipalities or intermunicipal agencies;
(6) to earn interest on fund accounts; and
(7) for the reasonable costs of administering the fund and
conducting activities under this subchapter, except that such
amounts shall not exceed 4 percent of all grant awards to such
fund under this subchapter.
(e) Limitation to prevent double benefits
If a State makes, from its water pollution revolving fund, a loan
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 such loan receives a grant under
section 1281(g) of this title for construction of such treatment
works and an allowance under section 1281(l)(1) of this title for
non-Federal funds expended for such planning and preparation, such
recipient will promptly repay such loan to the extent of such
allowance.
(f) Consistency with planning requirements
A State may provide financial assistance from its water pollution
control revolving fund only with respect to a project which is
consistent with plans, if any, developed under sections 1285(j),
1288, 1313(e), 1329, and 1330 of this title.
(g) Priority list requirement
The State may provide financial assistance from its water
pollution control revolving fund only with respect to a project for
construction of a treatment works described in subsection (c)(1) of
this section if such project is on the State's priority list under
section 1296 of this title. Such assistance may be provided
regardless of the rank of such project on such list.
(h) Eligibility of non-Federal share of construction grant projects
A State water pollution control revolving fund may provide
assistance (other than under subsection (d)(1) of this section) to
a municipality or intermunicipal or interstate agency with respect
to the non-Federal share of the costs of a treatment works project
for which such municipality or agency is receiving assistance from
the Administrator under any other authority only if such assistance
is necessary to allow such project to proceed.