A. All funds available in the Clean Water State Revolving Fund Loan Account shall first be used to assure maintenance of progress towards compliance with enforceable deadlines, goals, and requirements of the Oklahoma Environmental Quality Code, Oklahoma's Water Quality Standards, and Federal Clean Water Act, including urban storm water activities and wastewater treatment plant projects.

B. The Oklahoma Water Resources Board shall use the Clean Water State Revolving Fund Loan Account only as provided by the federal Water Quality Act of 1987 for the following purposes:

1. To make a loan to an eligible entity if:

a.the loan application, project and planning documents have been approved by the Board pursuant to Section 1085.58 of this title or the Oklahoma Conservation Commission pursuant to Section 1085.65 of this title,

b.the loan is made at or below market interest rates, including interest-free loans, at terms consistent with the federal Water Quality Act of 1987,

c.principal and interest payments will begin not later than one year after completion of any water quality project and all loans will be fully amortized consistent with the federal Water Quality Act of 1987,

d.the Clean Water State Revolving Fund Loan Account will be credited with all payments of principal of and interest on all loans,

e.the applicant demonstrates to the satisfaction of the Board the financial capability to assure sufficient revenues to pay debt service,

f.the recipient of the loan establishes a dedicated source of revenue for payment of debt service for the loan, and

g.the recipient agrees to maintain financial records in accordance with governmental accounting standards, to conduct an annual audit of the financial records relating to the water quality project, and to submit the audit report to the Board on a scheduled annual basis;

2. To buy or refinance eligible entity obligations at or below market rates if the eligible entity obligations were incurred in construction which began after March 7, 1985;

3. To guarantee or purchase insurance for eligible entities if the guarantee or insurance would improve access to market credit or reduce interest rates;

4. As a source of revenue or security for the payment of principal of and interest on any investment certificate issued by the Board. The proceeds of the sale of such investment certificates shall be deposited in the Clean Water State Revolving Fund Loan Account in compliance with applicable bond resolutions or indentures authorizing the sale;

5. To provide loan guarantees to similar revolving loan accounts or funds established by eligible entities;

6. To earn interest on accounts established under the Clean Water State Revolving Fund Loan Account;

7. To administer the Clean Water State Revolving Fund Loan Account pursuant to the provisions of this act. All funds to be utilized for administrative costs from the Clean Water State Revolving Fund Loan Account shall be subject to annual designation by the State Legislature; and

8. For such other purpose or in such other manner, as is determined by the Board to be an appropriate use of the Clean Water State Revolving Fund Loan Account pursuant to the Clean Water State Revolving Fund Program and which has been specifically approved or otherwise authorized by the Environmental Protection Agency pursuant to the federal Water Quality Act of 1987.

C. An eligible entity may use the loan fund money on nonpoint source pollution reduction if, based upon the needs of the eligible entity, the reduction of nonpoint source pollution would enhance the water quality project. The funds received by the eligible entity may be used for the implementation of the nonpoint source management program pursuant to Section 1085.65 of this title.

Added by Laws 1988, c. 202, § 4, operative July 1, 1988. Amended by Laws 1993, c. 145, § 326, eff. July 1, 1993; Laws 1999, c. 381, § 3, emerg. eff. June 8, 1999; Laws 2002, c. 322, § 4, emerg. eff. May 30, 2002.