1. (a) The governor, or a state official acting pursuant to authorization from the governor, may transfer an amount up to or equal to thirty-three per cent, calculated on the basis of a fiscal year's drinking water treatment revolving loan fund capitalization grant amount from the drinking water treatment revolving loan fund to the water pollution control revolving fund established under section 342D-83, or an equivalent dollar amount from the water pollution control revolving fund to the drinking water treatment revolving loan fund established under section 340E-35. The following conditions shall apply:

   1. (1) When the State initially decides to transfer funds pursuant to this section:

      1. (A) The attorney general, or an individual designated by the attorney general, shall have signed or concurred in a certification for the drinking water treatment revolving loan fund and water pollution control revolving fund that state law permits the State to transfer funds; and
      2. (B) The operating agreements or other parts of the capitalization grant agreements for the drinking water treatment revolving loan fund and water pollution control revolving fund shall be amended to detail the method the State shall use to transfer funds;
   2. (2) The State shall not use the transfer provision to acquire state match for either fund or use transferred funds to secure or repay state match bonds;
   3. (3) The State may reserve fund amounts for transfer in future years pursuant to requirements under federal law; and
   4. (4) Funds may be transferred on a net basis between the drinking water treatment revolving loan fund and water pollution control revolving fund; provided that the thirty-three per cent transfer allowance associated with drinking water treatment revolving loan fund capitalization grants received is not exceeded.

2. (b) No later than twenty days prior to the convening of each regular session, the department of health shall submit to the legislature a report on:

   1. (1) All transfers between the water pollution control revolving fund and drinking water treatment revolving loan fund pursuant to this section and section 342D-85.5; and
   2. (2) Whether the transfers comply with federal law.

[L 2024, c 218, §2]