AB 59

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.

Current law specifies several allowable methods of providing financial assistance under the SDWLP, one of which is using funds received as federal capitalization grants. There is, however, a prohibition on using those funds to provide principal forgiveness to a private owner of a community water system. This bill provides that this prohibition does not apply to the use of federal capitalization grants for forgiveness of loans for the replacement of lead service lines.