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H0448........................................................by MR. SPEAKER
Requested by: Division of Environmental Quality
WASTEWATER FACILITY LOAN ACCOUNT - Amends existing law to change the name
of the Water and Wastewater Facility Loan Account to the Wastewater
Facility Loan Account, to provide for treatment of money in the account and
to provide that moneys in the Water Pollution Control Account are
perpetually appropriated to provide grants or contracts for training
drinking water system operating personnel and to provide funds to
capitalize the Drinking Water Loan Account.
01/12 House intro - 1st rdg - to printing
01/12 Rpt prt - to Env Aff
01/21 Rpt out - rec d/p - to 2nd rdg
01/22 2nd rdg - to 3rd rdg
02/02 3rd rdg - PASSED - 67-0-3
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20),
Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet,
Jones(9), Jones(22), Judd, Kellogg, Kempton, Kendell, Kjellander,
Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer,
Miller, Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman,
Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone,
Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Zimmermann,
Mr Speaker
NAYS -- None
Absent and excused -- Crane, Jones(20), Wood
Floor Sponsor - Barraclough
Title apvd - to Senate
02/03 Senate intro - 1st rdg - to Health/Wel
02/09 Rpt out - rec d/p - to 2nd rdg
02/10 2nd rdg - to 3rd rdg
02/18 3rd rdg - PASSED - 32-0-3
AYES--Andreason, Branch, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Boatright, Ingram, Sweeney
Floor Sponsor - Ipsen
Title apvd - to House
02/19 To enrol
02/20 Rpt enrol - Sp signed
02/23 Pres signed
02/24 To Governor
02/25 Governor signed
Session Law Chapter 16
Effective: 07/01/98
H0448|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 448 BY MR. SPEAKER Requested by: Division of Environmental Quality 1 AN ACT 2 RELATING TO WATER QUALITY; AMENDING SECTION 39-3629, IDAHO CODE, TO ESTABLISH 3 THE WASTEWATER FACILITY LOAN ACCOUNT AND TO PROVIDE FOR TREATMENT OF MONEY 4 IN THE ACCOUNT; AMENDING SECTION 39-3630, IDAHO CODE, TO PROVIDE THAT 5 MONEYS IN THE WATER POLLUTION CONTROL ACCOUNT ARE PERPETUALLY APPROPRIATED 6 TO PROVIDE GRANTS OR CONTRACTS FOR TRAINING DRINKING WATER SYSTEM OPERAT- 7 ING PERSONNEL AND TO PROVIDE FUNDS TO CAPITALIZE THE DRINKING WATER LOAN 8 ACCOUNT INCLUDING THE REQUIRED MATCHING SHARE OF FEDERAL CAPITALIZATION 9 FUNDS; AMENDING SECTION 39-3631, IDAHO CODE, TO PROVIDE FOR APPROPRIATION 10 OF MONEYS IN THE WASTEWATER FACILITY LOAN ACCOUNT; AND AMENDING SECTION 11 39-3632, IDAHO CODE, TO PROVIDE THAT THE BOARD OF HEALTH AND WELFARE MAY 12 MAKE LOANS FROM THE WASTEWATER FACILITY LOAN ACCOUNT. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Section 39-3629, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 39-3629.WATER ANDWASTEWATER FACILITY LOAN ACCOUNT ESTAB- 17 LISHED. There is hereby created and established in the agency asset fund in 18 the state treasury an account to be known as thewater andwaste- 19 water facility loan account. Surplus moneys in thewater and20 wastewater facility loan account shall be invested by the state treasurer in 21 the manner provided for idle state moneys in the state treasury under section 22 67-1210, Idaho Code. Interest received on all such investments shall be paid 23 into thewater andwastewater facility loan account. The account 24 shall have paid into it: 25 1. Federal funds which are received by the state to provide for26water andwastewater facility loans together with required state match- 27 ing funds coming from a portion of the moneys in the water pollution control 28 account as established in section 39-3628, Idaho Code; 29 2. All donations and grants from any source which may be used for the 30 provisions of this section; 31 3. All principal and interest repayments of loans made pursuant to this 32 chapter; and 33 4. Any other moneys which may hereafter be provided by law. 34 SECTION 2. That Section 39-3630, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 39-3630. APPROPRIATION OF WATER POLLUTION CONTROL ACCOUNT -- PURPOSE OF 37 CHAPTER. Moneys in the water pollution control account are hereby perpetually 38 appropriated for the following purposes: 39 1. To provide the state's matching share of grants made under the provi- 40 sions of this chapter. 41 2. To provide revenue for the payment of general obligation bonds issued 2 1 pursuant to section 39-3633, Idaho Code, and general obligation refunding 2 bonds issued pursuant to chapter 115, 1973 laws of the state of Idaho. 3 3. To provide for the operations of the water quality programs estab- 4 lished pursuant to this chapter. 5 4. To provide direct grants or contracts for the purpose of providing 6 training for drinking water system and sewage treat- 7 ment plant operating personnel. 8 5. To provide payments for contracts entered into pursuant to this chap- 9 ter. 10 6. To provide funds to capitalize thewater andwastewater 11 facility loan account established in section 39-3629, Idaho Code, including 12 the required matching share of federal capitalization funds. 13 7. To provide funds to capitalize the drinking water loan account 14 established in section 39-7602, Idaho Code, including the required matching 15 share of federal capitalization funds. 16 SECTION 3. That Section 39-3631, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 39-3631. APPROPRIATION OFWATER ANDWASTEWATER FACILITY LOAN 19 ACCOUNT -- PURPOSE OF CHAPTER. Moneys in thewater andwastewater 20 facility loan account are hereby perpetually appropriated for the following 21 purposes: 22 1. To provide loans and other forms of financial assistance authorized 23 under title VI of the federal water quality act of 1987, P.L. 100-4, to any 24 municipality for construction of sewage treatment works. 25 2. To provide funds, subject to annual federal and state appropriation 26 and applicable federal limitations, for operation of the wastewater facility 27 loan program by the department of health and welfare. 283. To provide funds, subject to annual federal and state appropria-29tions and applicable federal limitations, for operation of the water facility30loan program by the department of health and welfare.31 SECTION 4. That Section 39-3632, Idaho Code, be, and the same is hereby 32 amended to read as follows: 33 39-3632. GRANTS AND LOANS FOR DESIGN, PLANNING OR CONSTRUCTION -- LIMITS 34 ON AMOUNT OF GRANTS AND LOANS. (1) The board of health and welfare may divide 35 financial assistance for eligible construction projects into separate grants, 36 loans or a combination of grants and loans for the design, planning, and con- 37 struction stages of project development. The making of a grant or loan for 38 early stages of a project does not obligate the state to make a grant or loans 39 for later stages of the same project. 40 (2) The board may make grants from the water pollution control account; 41 provided, that the projected payments for such grants would not cause the pro- 42 jected balance in the account to fall below zero at any time. All grant pay- 43 ments shall be subject to the availability of moneys in the account. 44 (3) The board may make loans from thewater andwastewater 45 facility loan account, provided that the projected payments for such loans 46 would not cause the projected balance in the account to fall below zero at any 47 time. All loan payments shall be subject to the availability of moneys in the 48 account.
STATEMENT OF PURPOSE
RS07377
One of the major provisions of the Safe Drinking Water Act Amendments of
1996 was to provide capitalization of a Drinking Water State Revolving Fund
loan program. This program will allow the State to make low interest loans
to Idaho communities to improve their drinking water infrastructure.
The purpose of this amending legislation is to establish that the State
matching funds for the Drinking Water Loan Account (Safe Drinking Water Act
State Revolving Fund Loan Program) will be perpetually appropriated from
the Water Pollution. Control Account. This will allow the Division of
Environmental Quality to transfer the State matching funds, as needed.
Environmental Protection Agency guidelines and Idaho Code require that the
interest earned on the idle fund balance for the newly established Drinking
Water Loan Account to be deposited to the Account. In the fiscal year 1998
appropriation for DEQ, the Idaho Legislature included an appropriation of
$2,800,000 to be transferred from the Water Pollution Control Account to the
Drinking Water Loan Account. DEQ has learned from the operation of the
Wastewater Facility Loan Account (Wastewater Facility State Revolving Fund
Loan Program) that the actual loan disbursements for this first annual
appropriation may take up to several years to complete. Additionally, if is
estimated that Idaho will need $1,400,000 of State matching funds annually
from 1999 to 2003. U.S. Environmental Protection Agency guidelines also
require that the Drinking Water Loan Account be a separate account from the
Wastewater Facility Loan Account and this legislation will correct
conflicting terms in Idaho Code.
FISCAL IMPACT
An estimate of the fiscal impact is to assume that the State match will
be, on average, deposited to the Drinking Water Loan Account one year before
the match is actually needed. Assuming a 5% interest rate earned on idle
cash invested, the General Fund will lose (to the benefit of the Drinking
Water Loan Account) $140,000 ($2,800,000 x 5%) for the fiscal year 1998
appropriation and $70,000 ($1,400,000 x 5%) per year for fiscal years 1999
through 2003. Having the State matching funds perpetually appropriated will
ensure that the Idaho Drinking Water Loan program will be able to accept all
future federal drinking water allotments which are estimated to be
$96,000,000 (1% of $9.6 billion).
CONTACT
Name: Dave Sande
Agency: Division of Environmental Quality
Phone: 373-0292 Statement of Purpose/Fiscal Impact H
448