
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 33USC1383]

 
                TITLE 33--NAVIGATION AND NAVIGABLE WATERS
 
           CHAPTER 26--WATER POLLUTION PREVENTION AND CONTROL
 
      SUBCHAPTER VI--STATE WATER POLLUTION CONTROL REVOLVING FUNDS
 
Sec. 1383. Water pollution control revolving loan funds


(a) Requirements for obligation of grant funds

    Before a State may receive a capitalization grant with funds made 
available under this subchapter and section 1285(m) of this title, the 
State shall first establish a water pollution control revolving fund 
which complies with the requirements of this section.

(b) Administration

    Each State water pollution control revolving fund shall be 
administered by an instrumentality of the State with such powers and 
limitations as may be required to operate such fund in accordance with 
the requirements and objectives of this chapter.

(c) Projects eligible for assistance

    The amounts of funds available to each State water pollution control 
revolving fund shall be used only for providing financial assistance (1) 
to any municipality, intermunicipal, interstate, or State agency for 
construction of publicly owned treatment works (as defined in section 
1292 of this title), (2) for the implementation of a management program 
established under section 1329 of this title, and (3) for development 
and implementation of a conservation and management plan under section 
1330 of this title. The fund shall be established, maintained, and 
credited with repayments, and the fund balance shall be available in 
perpetuity for providing such financial assistance.

(d) Types of assistance

    Except as otherwise limited by State law, a water pollution control 
revolving fund of a State under this section may be used only--
        (1) to make loans, on the condition that--
            (A) such loans are made at or below market interest rates, 
        including interest free loans, at terms not to exceed 20 years;
            (B) annual principal and interest payments will commence not 
        later than 1 year after completion of any project and all loans 
        will be fully amortized not later than 20 years after project 
        completion;
            (C) the recipient of a loan will establish a dedicated 
        source of revenue for repayment of loans; and
            (D) the fund will be credited with all payments of principal 
        and interest on all loans;

        (2) to buy or refinance the debt obligation of municipalities 
    and intermunicipal and interstate agencies within the State at or 
    below market rates, where such debt obligations were incurred after 
    March 7, 1985;
        (3) to guarantee, or purchase insurance for, local obligations 
    where such action would improve credit market access or reduce 
    interest rates;
        (4) as a source of revenue or security for the payment of 
    principal and interest on revenue or general obligation bonds issued 
    by the State if the proceeds of the sale of such bonds will be 
    deposited in the fund;
        (5) to provide loan guarantees for similar revolving funds 
    established by municipalities or intermunicipal agencies;
        (6) to earn interest on fund accounts; and
        (7) for the reasonable costs of administering the fund and 
    conducting activities under this subchapter, except that such 
    amounts shall not exceed 4 percent of all grant awards to such fund 
    under this subchapter.

(e) Limitation to prevent double benefits

    If a State makes, from its water pollution revolving fund, a loan 
which will finance the cost of facility planning and the preparation of 
plans, specifications, and estimates for construction of publicly owned 
treatment works, the State shall ensure that if the recipient of such 
loan receives a grant under section 1281(g) of this title for 
construction of such treatment works and an allowance under section 
1281(l)(1) of this title for non-Federal funds expended for such 
planning and preparation, such recipient will promptly repay such loan 
to the extent of such allowance.

(f) Consistency with planning requirements

    A State may provide financial assistance from its water pollution 
control revolving fund only with respect to a project which is 
consistent with plans, if any, developed under sections 1285(j), 1288, 
1313(e), 1329, and 1330 of this title.

(g) Priority list requirement

    The State may provide financial assistance from its water pollution 
control revolving fund only with respect to a project for construction 
of a treatment works described in subsection (c)(1) of this section if 
such project is on the State's priority list under section 1296 of this 
title. Such assistance may be provided regardless of the rank of such 
project on such list.

(h) Eligibility of non-Federal share of construction grant projects

    A State water pollution control revolving fund may provide 
assistance (other than under subsection (d)(1) of this section) to a 
municipality or intermunicipal or interstate agency with respect to the 
non-Federal share of the costs of a treatment works project for which 
such municipality or agency is receiving assistance from the 
Administrator under any other authority only if such assistance is 
necessary to allow such project to proceed.

(June 30, 1948, ch. 758, title VI, Sec. 603, as added Pub. L. 100-4, 
title II, Sec. 212(a), Feb. 4, 1987, 101 Stat. 23.)

                  Section Referred to in Other Sections

    This section is referred to in sections 1301, 1382 of this title.
