§ 4753 -   Revolving loan funds; authority to spend; report

§ 4753. Revolving loan funds; authority to spend; report

(a) There is hereby established a series of special funds to be known as:

(1) The Vermont environmental protection agency (EPA) pollution control revolving fund which shall be used to provide loans to municipalities, state agencies, and the Vermont housing finance agency, for planning sewage systems and sewage treatment or disposal plants as defined in subdivisions 3501(6) and 3601(3) of this title, for constructing publicly owned sewage systems and sewage treatment or disposal plants as defined in subdivisions 3501(6) and 3601(3) of this title, for planning or construction of certain privately owned wastewater systems, and for implementing related management programs.

(2) The Vermont pollution control revolving fund which shall be used to provide loans to municipalities, state agencies, and the Vermont housing finance agency, for planning pollution control facilities, for constructing publicly owned pollution control facilities, and for constructing certain privately owned wastewater systems and potable water supply systems.

(3) The Vermont environmental protection agency (EPA) drinking water state revolving fund which shall be used to provide loans to municipalities and certain privately-owned water systems for:

(A) planning, designing, constructing, repairing or improving a public water system in order to comply with state and federal standards and protect public health; and

(B) implementing related management programs.

(4) The Vermont solid waste revolving fund which shall be used to provide loans to municipalities (including union municipal districts formed under subchapter 3 of chapter 121 of this title) for planning solid waste handling and disposal facilities as enumerated in section 2203a of this title, and for constructing publicly-owned solid waste handling and disposal facilities as enumerated in section 2203a of this title.

(5) The Vermont drinking water planning loan fund which shall be used to provide loans to municipalities and privately-owned, nonprofit community water systems, with populations of less than 10,000, for conducting feasibility studies and for the preparation of preliminary engineering planning studies and final engineering plans and specifications for improvements to public water systems in order to comply with state and federal standards and to protect public health. The secretary may forgive up to $50,000.00 of the unpaid balance of a loan made from the Vermont drinking water planning loan fund to municipalities after project construction is substantially completed. The secretary shall establish amounts, eligibility, policies, and procedures for loan forgiveness in the annual state intended use plan (IUP) with public review and comment prior to finalization and submission to the United States Environmental Protection Agency.

(6) The Vermont drinking water source protection fund which shall be used to provide loans to municipalities for purchasing land or conservation easements in order to protect public water sources and ensure compliance with state and federal drinking water regulations.

(7) The Vermont drinking water emergency use fund which shall be within the control of the secretary. Disbursements from the fund may be made by the secretary for costs required to undertake the following emergency actions that the secretary considers necessary to protect public health:

(A) collecting and analyzing samples of drinking water;

(B) hiring contractors to perform or cause to be performed infrastructure repairs of a public water system;

(C) hiring certified operators to perform operational activities at a public water system; and

(D) providing or causing to be provided bottled or bulk water for a public water system due to problems with quality or quantity, or both.

(8) [Deleted.]

(b) Each of such funds shall be established and held separate and apart from any other funds or moneys of state and shall be used and administered exclusively for the purpose of this chapter with the exception of transferring funds from the Vermont drinking water planning loan fund and the Vermont drinking water source protection fund to the Vermont environmental protection agency (EPA) drinking water state revolving fund, and from the Vermont pollution control revolving fund to the Vermont environmental protection agency (EPA) pollution control revolving fund, when authorized by the secretary. These funds shall be administered by the bond bank on behalf of the state, except that the fund shall be administered by VEDA concerning loans to privately-owned water systems under subdivision (a)(3) of this section. The funds shall be invested in the same manner as permitted for investment of funds belonging to the state or held in the treasury. The funds shall consist of the following:

(1) Such sums as may be appropriated or transferred thereto from time to time by the general assembly, the state emergency board or the joint fiscal committee during such times as the general assembly is not in session.

(2) Principal and interest received from the repayment of loans made from each of such funds.

(3) Capitalization grants and awards made to the state by the United States of America for any of the purposes for which such funds have been established.

(4) Interest earned from the investment of fund balances.

(5) Private gifts, bequests and donations made to the state for any of the purposes for which such funds have been established.

(6) Other funds from any public or private source intended for use for any of the purposes for which such funds have been established.

(c) In addition to the purposes established in subsection (a) of this section, the various loan funds created herein may be used for one or more of the purposes established in section 4757 of this title.

(d) Funds from the Vermont environmental protection agency pollution control fund and the Vermont pollution control revolving fund, established by subdivisions (a)(1) and (2) of this section, may be awarded for:

(1) the refurbishment or construction of a new or an enlarged wastewater treatment plant with a resulting total capacity of 250,000 gallons or more per day in accordance with the provisions of this chapter and section 1626a of Title 10; or

(2) the construction of stormwater management facilities as specifically or generally described in Vermont's nonpoint source management plan, and which are necessary to remedy or prevent pollution of waters of the state, provided, in any year in which the federal grant for the fund established in subdivision (a)(1) of this section does not exceed the amount available to the state in the 2002 federal appropriation, no more than 30 percent of that year's federal and state appropriations to that fund shall be used for the purpose outlined in this subdivision.

(e) The secretary may bring an action under this subsection or other available state and federal laws against the owner or permittee of the public water system to seek reimbursement to the Vermont drinking water emergency use fund for all disbursements from the fund made pursuant to subdivision (a)(7) of this section. To the extent compatible with the urgency of the situation, the secretary shall provide an opportunity for the responsible water system owner or permittee to undertake the necessary actions under the direction of the secretary prior to making disbursements. (Added 1987, No. 75, § 1; amended 1993, No. 233 (Adj. Sess.), § 62, eff. June 21, 1994; 1995, No. 62, § 44, eff. April 26, 1995; 1997, No. 62, § 67, eff. June 26, 1997; 1997, No. 134 (Adj. Sess.), § 1; No. 148 (Adj. Sess.), § 51, eff. April 29, 1998; 1999, No. 109 (Adj. Sess.), § 2; No. 148 (Adj. Sess.), § 52, eff. May 24, 2000; 2001, No. 61, § 38, eff. June 16, 2001; 2001, No. 109 (Adj. Sess.), § 11; eff. May 16, 2002; No. 149 (Adj. Sess.), § 90, eff. June 27, 2002; 2003, No. 63, § 50, eff. June 11, 2003; 2007, No. 52, §§ 43, 46, eff. May 28, 2007; 2007, No. 130 (Adj. Sess.), § 7, eff. May 12, 2008.)