Sec. 6. (a) The making of grants and loans and the providing of other financial assistance from the water infrastructure assistance fund to or for the benefit of participants under this chapter are subject to the following conditions:

(1) A grant, loan, or other financial assistance may be used:

(A) for:

(i) the planning, designing, acquiring, constructing, renovating, improving, or expanding of public water systems; and

(ii) other activities necessary or convenient to the completion of the tasks referred to in item (i);

(B) to:

(i) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the fund (including financial institutions), for a purpose permitted by clause (A); or

(ii) provide interest subsidies;

(C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or

(D) to pay the following:

(i) Consultant, advisory, and legal fees.

(ii) Other costs or expenses necessary or incident to the making of grants, loans, or other financial assistance or the administration of the fund or the program.

(2) A grant may be used for tasks associated with the development and preparation of water infrastructure and resource analyses.

(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants or loans or providing of other financial assistance under this chapter.

(b) In addition to exercising its powers under subsection (a), the authority may also make grants or loans or provide other financial assistance from the fund to or for the benefit of a participant under the following conditions:

(1) A grant, loan, or other financial assistance may be used:

(A) for planning, designing, acquiring, constructing, renovating, improving, or expanding wastewater or storm water collection and treatment systems, and other activities necessary or convenient to the completion of these tasks;

(B) to:

(i) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the water infrastructure assistance fund (including financial institutions), for a purpose permitted by clause (A); or

(ii) provide interest subsidies;

(C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or

(D) to pay:

(i) consultant, advisory, and legal fees; and

(ii) other costs or expenses necessary or incident to the grant, loan, or other financial assistance or the administration of the water infrastructure assistance fund or the infrastructure program.

(2) A grant may be used for tasks associated with the development and preparation of:

(A) long term control plans;

(B) use attainability analyses;

(C) storm water management programs; or

(D) other wastewater or storm water infrastructure and resource analyses.

(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants or loans or providing of other financial assistance under this chapter.

As added by P.L.189-2018, SEC.25.