(a) Proceeds.--Proceeds of the borrowing authorized by the electors pursuant to the act of February 12, 2004 (P.L. 72, No. 10), known as the Water and Wastewater Treatment Project Bond Act, shall be deposited in the fund.(b) Fund.--(1) The Water Supply and Wastewater Treatment Fund is established as a restricted fund in the State Treasury.(2) The fund shall be used in accordance with the following:(i) $200,000,000 shall be used by the department to fund grants and loans in accordance with this chapter.(ii) $50,000,000 shall be used by the Pennsylvania Infrastructure Investment Authority to finance projects of existing water and wastewater systems which, when complete, do any of the following:(A) Repair, rehabilitate or modernize existing water or wastewater systems to meet environmental or public health standards.(B) Eliminate existing combined or sanitary wastewater overflow problems.(C) Construct water or wastewater infrastructure to improve public health or eliminate environmental concerns.(D) Construct wastewater infrastructure utilizing nutrient reduction technology.(c) Sinking Fund.--The Water Supply and Wastewater Treatment Sinking Fund is established to make principal and interest payments under section 3907(d) (relating to Commonwealth indebtedness).2004, Nov. 30, P.L. 1708, No. 218, § 3, imd. effective.