[§342D-87]  Revolving fund; conditions.  (a) 
The following conditions shall apply to each project receiving water pollution
control financing under this part:



(1)  The project shall conform with the state water
quality management plan developed under Title 33 United States Code section
1285(j), 1288, 1313(e), 1329, or 1330;



(2)  The project shall be certified by the director as
entitled to priority over other eligible projects on the basis of financial and
water pollution control needs;



(3)  In the case of wastewater treatment works
construction projects, the application or agreement for the loan shall contain:



(A)  Reasonable assurances that the applicant
will provide for the proper and efficient operation and maintenance of the
treatment works after its construction;



(B)  Reasonable assurances by the applicant
that an impact fee structure will be instituted to ensure that new developments
pay their appropriate share of the costs of the wastewater treatment works, as
determined by the counties; and



(C)  Such other provisions required by federal
or state law or deemed necessary or convenient by the director;



(4)  The county or state agency receiving these funds
for a construction project shall require the installation of the low flow water
fixtures and devices for faucets, hose bibbs, showerheads, urinals, and toilets
in all new construction projects; provided that the fixtures and devices shall
be approved by the International Association of Plumbing and Mechanical
Officials and shall comply with applicable American National Standards
Institute standards and such other standards as may be required by the
respective county for all new residential and public buildings; and



(5)  The county receiving these funds shall take
specific steps to reduce polluted runoff into state waters through educational
and regulatory programs.



(b)  The use of federal funds and state
matching funds in the revolving fund shall be in conformance with Title 33
United States Code sections 1381 to 1387.



(c)  The director may make and condition loans
from the revolving fund which shall:



(1)  Be made at or below market interest rates;



(2)  Require periodic payments of principal and
interest with repayment commencing not later than one year after completion of
the project for which the loan is made; and



(3)  Be fully amortized not later than twenty years
after project completion.



(d)  No loan of funds from the revolving
fund shall be made unless the loan recipient pledges a dedicated source of
revenue for the repayment of the loans.  This pledge may be a county’s full
faith and credit (a general obligation payable from its general fund), special
assessments, revenues from an undertaking, system, or improvements, including
user charges, or any other source of revenue. [L 1997, c 221, pt of §1]