1. (1) The department may use the following funds to carry out the purposes of the DWSRF:

   1. (a) Capitalization grants provided by the federal government;
   2. (b) State matching funds appropriated under RCW 70A.125.160;
   3. (c) Principal and interest payments;
   4. (d) DWSRF loan fees; and
   5. (e) Any other funds earned and deposited.

2. (2) The department may use these funds to:

   1. (a) Finance DWSRF loans for planning, design, and construction of public water system infrastructure projects that will address or prevent violations of applicable federal, state, and local drinking water requirements;
   2. (b) Finance reasonable costs for the department to administer the DWSRF program; and

   3. (c) Fund set-aside activities as authorized in 40 C.F.R. Section 35.3535 including, but not limited to:

      1. (i) DWSRF program administration;
      2. (ii) Technical assistance specific to small public water systems;
      3. (iii) State drinking water program management; and
      4. (iv) Local assistance and other state programs.

[Statutory Authority: RCW 43.70.040 and 2020 c 20. WSR 22-07-025, § 246-296-040, filed 3/9/22, effective 4/9/22. Statutory Authority: RCW 70.119A.170, 40 C.F.R. 35.352 and 35.3535. WSR 18-21-021, § 246-296-040, filed 10/4/18, effective 11/4/18. Statutory Authority: RCW 70.119A.170 as amended by 2016 c 111. WSR 16-14-086, § 246-296-040, filed 7/5/16, effective 8/5/16. Statutory Authority: RCW 70.119A.170 and Federal Safe Drinking Water Act, H.R. 1452. WSR 12-01-077, § 246-296-040, filed 12/19/11, effective 2/1/12. Statutory Authority: RCW 70.119A.170. WSR 01-21-137, § 246-296-040, filed 10/24/01, effective 11/24/01.]