Section 16-1-305 - Authorized projects; authorized financial assistance(a) Subject to select water committee review and recommendation of projects, the account may be used for financial assistance for the planning, design and construction of projects on eligible publicly owned water systems which may be either community or noncommunity water systems. Eligible projects may be comprised of improvements to all components of a water supply system as appropriate and permitted by the Safe Drinking Water Act.(b) Financial assistance for the projects authorized in subsection (a) of this section may be in the forms authorized by the Safe Drinking Water Act including: (i) Loans at or below market interest rates. Loans may be awarded only if:(A) All principal and interest payments on loans are credited directly to the account;(B) The annual repayment of principal and payment of interest begins not later than one (1) year after project completion;(C) The loan is fully amortized not later than thirty (30) years after project completion or not later than forty (40) years for disadvantaged communities providing the period of the loan does not exceed the design life of the project; and(D) Each loan recipient establishes a dedicated source of revenue for repayment of the loan.(ii) Refinancing existing debt obligation of publicly owned water systems for planning, design and construction of water systems for which the initial debt was incurred and construction started after July 1, 1993;(iii) Purchasing insurance for or guaranteeing local debt obligations to improve credit market access or reduce interest rates;(iv) Grants and other forms of financial assistance.(c) An amount up to four percent (4%) of the capitalization grant may be used for costs of administering the account and shall be deposited into the administrative account.(d) Repealed By Laws 2010, Ch. 69, § 204.(e) The board may consider the use of an amount of the allowable percentage of the capitalization grant for all of the established set-asides provided for by the Safe Drinking Water Act.(f) The board may authorize the use of any amount of the allowable percentage of the capitalization grant for any set-aside authorized by the Safe Drinking Water Act.Amended by Laws 2022 , ch. 85, § 1, eff. 7/1/2022.