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

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

(c)  The director shall certify that a projectis entitled to priority over other eligible projects on the basis of drinkingwater quality and financial needs, as well as a preference to those projectsthat can be started and completed expeditiously as stipulated under theAmerican Recovery and Reinvestment Act of 2009 and other applicable federalacts.

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

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