1. (a) Money in the fund may be used to do the following:

   1. (1) Provide loans or other financial assistance to participants for the:

      1. (A) planning;
      2. (B) designing;
      3. (C) construction;
      4. (D) renovation;
      5. (E) improvement;
      6. (F) expansion; or

      7. (G) any combination of clauses (A) through (F);

         for public water systems that will facilitate compliance with national primary drinking water regulations applicable to public water systems under the Safe Drinking Water Act or otherwise significantly further the health protection objectives of the Safe Drinking Water Act and other activities necessary or convenient to complete these tasks.

   2. (2) Pay the cost of administering the fund and the program.
   3. (3) Conduct all other activities that are allowed by the Safe Drinking Water Act.
2. (b) The authority shall develop and implement a strategy to assist participants in acquiring and maintaining technical, managerial, and financial capacity as contemplated by 42 U.S.C. 300g-9. The authority shall ensure that all new community water systems and new nontransient, noncommunity water systems, as contemplated by the Safe Drinking Water Act, commencing operations after October 1, 1999, demonstrate technical, managerial, and financial capacity with respect to each federal primary drinking water regulation in effect on the date operations commence.
3. (c) This chapter does not require the authority to provide a loan or other financial assistance to any participant that would cause any bonds or other obligations issued to finance the program to lose their exemption from federal income taxation.
4. (d) The authority may contract with the department, the budget agency, or any other entity or person for assistance in administering the program and the fund and in carrying out the purposes of this chapter.

As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999, SEC.12; P.L.184-2002, SEC.25; P.L.235-2005, SEC.149.