[§340E-33.5]  Use of American
Recovery and Reinvestment Act of 2009 and other federal moneys.  (a)  The
director may provide financial assistance to public water systems for the
construction of necessary drinking water infrastructure projects, through the
drinking water fund, using moneys from the American Recovery and Reinvestment
Act of 2009 and other applicable federal acts. 



(b)  The director may establish a separate
account within the drinking water fund and assign to that account federal
moneys appropriated under federal laws that authorize principal forgiveness,
zero and negative interest loans, and grants, including the American Recovery
and Reinvestment Act of 2009 and other applicable federal acts.  The director
may use those moneys and in so doing may include additional requirements and
subsidization not applicable to the remainder of the drinking water fund,
including forgiveness of principal, zero and negative interest loans, and
grants to public water systems that meet eligibility requirements for the
drinking water fund. 



(c)  The director shall certify that a project
is entitled to priority over other eligible projects on the basis of drinking
water quality and financial needs, as well as a preference to those projects
that can be started and completed expeditiously as stipulated under the
American Recovery and Reinvestment Act of 2009 and other applicable federal
acts.



(d)  Among eligible projects, the director may
also give priority to projects that incorporate renewable energy, energy efficiency,
and conservation measures in drinking water infrastructure, to the extent
allowed by federal law.



(e)  Each project receiving financial
assistance shall conform with the conditions for drinking water project
financial assistance under section 340E-37(a). [L 2009, c 98, §2]