AB 887

Under current law, the Department of Administration and the Department of

Natural Resources administer the safe drinking water loan program (SDWLP),

which provides financial assistance from the environmental improvement program

to local governmental units and to the private owners of community water systems

that serve local governmental units for projects for the planning, designing,

construction, or modification of public water systems. DNR establishes a funding list

for SDWLP projects, and DOA allocates funding for those projects.

Under current law, the state may contract up to $74,950,000 in public debt for

the SDWLP. This bill increases the bonding authority for the program by

$200,000,000 and requires DOA to allocate up to $200,000,000 of the authorized

public debt to projects involving forgivable loans to private users of public water

systems to cover not more than 50 percent of the cost to replace lead service lines.