SB 664

Under the Clean Water Fund Program, this state provides financial assistance

to local governmental units for projects to control water pollution, including sewage

treatment plants, using state and federal funds. One form of financial assistance

provided under the Clean Water Fund Program is a loan at a subsidized interest rate.

The Clean Water Fund Program also provides grants to local governmental units

that satisfy financial hardship criteria.

The federal act that appropriated money for the federal Environmental

Protection Agency for federal fiscal year 2010 (federal 2010 appropriations act)

provides additional funds for state programs like the Clean Water Fund Program.

This bill authorizes those funds to be expended under the Clean Water Fund

Program. The federal 2010 appropriations act requires states to use a portion of the

funds to increase the amount of subsidy provided to recipients of financial assistance

in the form of forgiveness of principal of a loan, negative interest loans, or grants.

This bill requires the increased subsidy to be provided in the form of forgiveness of

part of the principal of a loan.

Under the Safe Drinking Water Loan Program, this state provides loans to local

governmental units for projects for the construction or modification of public water

systems, using state and federal funds. The loans are provided at subsidized interest

rates.

The federal 2010 appropriations act provides additional funds for state

programs like the Safe Drinking Water Loan program. This bill authorizes those

funds to be expended under the Safe Drinking Water Loan Program. The federal

2010 appropriations act requires states to use a portion of the funds to increase the

amount of subsidy provided to recipients of financial assistance in the form of

forgiveness of principal of a loan, negative interest loans, or grants. This bill requires

the increased subsidy to be provided in the form of forgiveness of part of the principal

of a loan.