HB 240 — DRINKING WATER SYSTEM GRANTS & LOANS

The department and the authority shall enter into an agreement for the purpose of describing and allocating e t 17 duties and responsibilities with respect to monitoring the w l n d 18 construction of drinking water facility construction projects = = 19 a l that have been provided financial assistance pursuant to the i a e r 20 provisions of the Drinking Water State Revolving Loan Fund Act a t m m 21 to ensure compliance with the requirements of the federal Safe d r e 22 Drinking Water Act and with the requirements of state laws and c e s k 23 [regulations] rules governing construction and operation of e a n b 24 u [ drinking water supply facilities.

The department shall adopt [regulations] rules .229002.2SA - 8 - or internal procedures establishing the criteria and method for the distribution of federal annual capitalization grant funds between the fund and the nonproject activitiesactivities, [(set-asides)], also known as set-asides, allowed by the federal Safe Drinking Water Act and for the description in the intended use plan and annual report of the financial programmatic status of the nonproject activitiesactivities, [(set-asides)], also known as set-asides, allowed by the federal Safe Drinking Water Act.

The authority, with the assistance of the department, shall establish procedures to identify HB 240 Page 8 affordability criteria for a disadvantaged community and to extend a program to assist such communities.

The department shall set up separate accounts outside the fund to use for nonproject [(set-asides)] activities, also known as set-asides, authorized under the federal Safe Drinking Water Act, Sections 1452(g) and 1452(k), e t 17 and the authority shall set up a separate account outside the w l n d 18 fund for administration of the fund.

The department shall also = = 19 a l provide the additional match for federal Safe Drinking Water i a e r 20 Act, Section 1452(g)(2) activities.

a t m m 21 H.

The [department] authority shall prepare and d r e 22 submit applications for federal capitalization grants to the c e s k 23 United States environmental protection agency as required by e a n b 24 u [ the federal Safe Drinking Water Act." SECTION 4.

Section 6-21A-6 NMSA 1978 (being Laws 1997, .229002.2SA - 9 - Chapter 144, Section 6) is amended to read:

(2) appear on the priority list for the fund, developed and maintained by the department, regardless HB 240 Page 9 of rank on such list;

and e t 17 (5) meet other requirements established by the w l n d 18 authority and state laws, including [but not limited to] = = 19 a l procurement, recordkeeping and accounting.

i a e r 20 B.

Loans from the fund shall be made by the a t m m 21 authority only to local authorities that establish one or more d r e 22 dedicated sources of revenue to repay the money received from c e s k 23 the fund and to provide for operation, maintenance and e a n b 24 u [ equipment replacement expenses of the drinking water facility proposed for funding.

.229002.2SA - 10 - C.

Each loan made by the authority shall provide that repayment of the loan shall begin not later than [one year] eighteen months after completion of construction of the drinking water facility for which the loan was made and shall be repaid in full no later than [twenty] thirty years after completion HB 240 Page 10 of the construction, except in the case of a disadvantaged communitycommunity. [in which case].

(1) terminates not later than the date that is [thirty] forty years after the date of project completion;

and e t 17 (2) does not exceed the expected design life w l n d 18 of the project.

= = 19 a l E.

Financial assistance may be made with an annual i a e r 20 interest rate [which] that is less than a market rate as a t m m 21 determined by procedures established by the authority and d r e 22 reported annually in the intended use plan prepared by the c e s k 23 department, with the assistance of the authority.

e a n b 24 u [ F.

Financial assistance pursuant to the Drinking Water State Revolving Loan Fund Act shall not be given to a .229002.2SA - 11 - local authority if the authority determines that the financial assistance is for a drinking water facility to be constructed in fulfillment or partial fulfillment of requirements made of a subdivider under the provisions of the Land Subdivision Act or the New Mexico Subdivision Act.

Such services, if the authority determines [such] the services are needed, may include [but are not limited to] an engineering report, facility plans, HB 240 Page 11 environmental evaluations, construction contract documents, supervision of construction and start-up services.

Financial assistance shall be made only for eligible items as described by authority procedures and as e t 17 identified pursuant to the federal Safe Drinking Water Act." w l n d 18 SECTION 5.

Section 6-21A-7 NMSA 1978 (being Laws 1997, = = 19 a l Chapter 144, Section 7) is amended to read:

i a e r 20 "6-21A-7.

DEPARTMENT DUTIES--POWERS.-- a t m m 21 A.

The department with the approval of the governor d r e 22 and as authorized in the intended use plan may transfer up to c e s k 23 one-third of a federal wastewater facility construction loan e a n b 24 u [ fund capitalization grant to the drinking water state revolving .229002.2SA - 12 - loan fund;

[This provision is available one year after the receipt of the first full capitalization grant for the Drinking Water State Revolving Loan Fund Act and will expire with the capitalization grant of the year 2002.] Before the department makes the transfer, the department shall:

The department in the annual intended use plan shall certify to the United States environmental protection agency the progress made regarding operator certification and eHB t240 17Page 12 capacity development programs as they relate to the receipt of w l n d 18 capitalization grants available from the environmental = = 19 a l protection agency under the federal Safe Drinking Water Act." i a e r 20 SECTION 6.

Section 6-21A-8 NMSA 1978 (being Laws 1997, a t m m 21 Chapter 144, Section 8) is amended to read:

d r e 22 "6-21A-8.

AUTHORITY DUTIES--POWERS.-- c e s k 23 A.

The authority with the approval of the governor e a n b 24 u [ and as authorized in the intended use plan may transfer up to .229002.2SA - 13 - one-third of a federal drinking water state revolving loan fund capitalization grant to the wastewater facility construction loan fund.

[This provision is available one year after the receipt of the first full capitalization grant and will expire with the capitalization grant of the year 2002.] Before the authority makes the transfer, the authority shall:

The authority [will have] has the power:

(1) to foreclose upon or attach any drinking water facility, property or interest in the facility pledged, mortgaged or otherwise available as security for a project e t 17 financed in whole or in part pursuant to the Drinking Water w l n d 18 State Revolving Loan Fund Act in the event of a default by a = = 19 a l local authority;

iHB a240 ePage r13 20 (2) to acquire and hold title to or leasehold a t m m 21 interest in real and personal property and to sell, convey or d r e 22 lease that property for the purpose of satisfying a default or c e s k 23 enforcing the provisions of a loan agreement;

and e a n b 24 u [ (3) to enforce its rights by suit or mandamus or may [utilize] use all other available remedies under state .229002.2SA - 14 - law in the event of default by a local authority.

The authority [will have] has the power to issue bonds or refunding bonds pursuant to the New Mexico Finance Authority Act and the Drinking Water State Revolving Loan Fund Act when the authority determines that a bond issue is required or desirable to implement the provisions of the Drinking Water State Revolving Loan Fund Act.

e t 17 or w l n d 18 (4) any income, revenues, funds or other money = = 19 a l of the authority from any other source appropriated or iHB a240 ePage r14 20 authorized for use for the purpose of implementing the a t m m 21 provisions of the Drinking Water State Revolving Loan Fund Act, d r e 22 including the fund.

c e s k 23 E.

The bonds and other obligations issued by the e a n b 24 u [ authority shall be issued and delivered in accordance with the provisions of the New Mexico Finance Authority Act and may be .229002.2SA - 15 - sold at any time the authority determines appropriate.

In the event that [funds are] money is not available for a loan for a drinking water facility project when e t 17 application is made, in order to accelerate the completion of w l n d 18 any drinking water facility project, the local authority may, =HB =240 19Page a15 l with the approval of the authority, obligate [such local i a e r 20 authority] itself to provide local funds to pay that portion of a t m m 21 the cost of the drinking water facility project that the d r e 22 authority agrees to make available by loan, and the authority c e s k 23 may reimburse the amount expended on its behalf by the local e a n b 24 u [ authority.

Authority members or employees and any person .229002.2SA - 16 - executing bonds issued pursuant to the New Mexico Finance Authority Act and Drinking Water State Revolving Loan Fund Act shall not be liable personally on [such] the bonds or be subject to [any] personal liability or accountability by reason of the issuance [thereof] of the bonds.

No breach of any pledge, obligation or agreement of the authority shall impose a pecuniary liability upon the state or a charge upon its general credit or taxing power." eHB t240 17Page -16 1725 - w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .229002.2SA