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H.627

AN ACT RELATING TO THE SPECIAL ENVIRONMENTAL REVOLVING FUND

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  24 V.S.A. § 4771(a)(5) is amended to read:

(5)(A)  Notwithstanding subdivision (4) of this subsection, a

privately-owned privately owned nonprofit community type system may qualify for a 30-year loan term at an interest rate, plus administrative fee, to be established by the secretary of natural resources which shall be no more than three percent or less than minus three percent, provided that the applicant system meets the income level and annual household user cost requirements of a disadvantaged municipality as defined in subdivision 1571(9)(A) of Title 10, and provided that at least 80 percent of the residential units served by the water system is continuously occupied by local residents and at least 80 percent of the water produced is for residential use , in which case.

(B)  Notwithstanding subdivision (4) of this subsection, a privately owned nonprofit community type system may qualify for a 30-year loan term at an interest rate, plus administrative fee, to be established by the secretary of natural resources which shall be no more than three percent or less than zero percent, provided that the applicant has a median household income below the state average median household income as determined by the secretary of natural resources, and which after construction of the proposed water supply improvement will have an annual household user cost greater than 2.5 percent of the median household income as determined by the secretary.

(C)  If the secretary determines that a privately owned nonprofit community type system qualifies for a loan under this subdivision, the secretary shall certify the loan term and interest rate to VEDA.  In no instance shall the annual interest rate, plus an administrative fee, be less than is necessary to achieve an annual household user cost equal to one percent of the median household income of the applicant water system computed in the same manner as prescribed in subdivision 1624(b)(2)(B) of Title 10.

Sec. 2.  ANNUAL REPORT

The secretary of natural resources shall report in writing to the senate committee on natural resources and energy and the house committee on fish, wildlife and water resources on or before January 31 of each year regarding loans from the special environmental revolving fund under 24 V.S.A. § 4771(a)(5)(B).  The report shall include:  the number of privately owned nonprofit community water systems that have applied for loans from the special environmental revolving fund under 24 V.S.A. § 4771(a)(5)(B); the number of loans issued under 24 V.S.A. § 4771(a)(5)(B); the total dollar amount of loans issued under 24 V.S.A. § 4771(a)(5)(B); and a general description of privately owned nonprofit community water systems receiving loans under 24 V.S.A. § 4771(a)(5)(B), including the age of the development in which each privately owned nonprofit community water system is located.

Sec. 3.  SUNSET

Subdivision 4771(a)(5)(B) of Title 24 (loans for privately owned nonprofit community type systems) is repealed June 30, 2011.

Sec. 4.  EFFECTIVE DATE

This act shall take effect upon passage.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us