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

(1)  The project shall conform with the state waterquality management plan developed under Title 33 United States Code section1285(j), 1288, 1313(e), 1329, or 1330;

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

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

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

(B)  Reasonable assurances by the applicantthat an impact fee structure will be instituted to ensure that new developmentspay their appropriate share of the costs of the wastewater treatment works, asdetermined by the counties; and

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

(4)  The county or state agency receiving these fundsfor a construction project shall require the installation of the low flow waterfixtures and devices for faucets, hose bibbs, showerheads, urinals, and toiletsin all new construction projects; provided that the fixtures and devices shallbe approved by the International Association of Plumbing and MechanicalOfficials and shall comply with applicable American National StandardsInstitute standards and such other standards as may be required by therespective county for all new residential and public buildings; and

(5)  The county receiving these funds shall takespecific steps to reduce polluted runoff into state waters through educationaland regulatory programs.

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

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

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

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

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

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