Sec. 22a-477. Clean Water Fund.
Sec. 22a-477. Clean Water Fund. (a) There is established and created a fund to
be known as the "Clean Water Fund". There is established and created within the Clean
Water Fund a water pollution control federal revolving loan account, a water pollution
control state account, a Long Island Sound clean-up account, a drinking water federal
revolving loan account, a drinking water state account and a river restoration account,
which accounts shall be held separate and apart from each other.
(b) There shall be deposited in the water pollution control federal revolving loan
account of the Clean Water Fund: (1) The proceeds of notes, bonds or other obligations
issued by the state for the purpose of deposit therein and use in accordance with the
permissible uses thereof; (2) federal capitalization grants and awards or other federal
assistance received by the state pursuant to Title VI of the federal Water Pollution Control Act; (3) funds appropriated by the General Assembly for the purpose of deposit
therein and use in accordance with the permissible uses thereof; (4) payments received
from any municipality in repayment of a project loan made with moneys on deposit in
the water pollution control federal revolving loan account; (5) interest or other income
earned on the investment of moneys in the water pollution control federal revolving
loan account; (6) any additional moneys made available from any sources, public or
private, for the purposes for which the water pollution control federal revolving loan
account has been established and for the purpose of deposit therein; and (7) on and after
July 1, 1990, and annually thereafter, any moneys forfeited to the state by any person
for a violation of a permit which results in a discharge into a municipal sewage treatment
system, as determined by the commissioner, which are in excess of the total moneys
forfeited to the state for such violations for the fiscal year ending June 30, 1990.
(c) Within the water pollution control federal revolving loan account there are established the following subaccounts: (1) A federal receipts subaccount, into which shall
be deposited federal capitalization grants and awards or other federal assistance received
by the state pursuant to Title VI of the federal Water Pollution Control Act, (2) a state
bond receipts subaccount into which shall be deposited the proceeds of notes, bonds or
other obligations issued by the state for the purpose of deposit therein, (3) a state General
Fund receipts subaccount into which shall be deposited funds appropriated by the General Assembly for the purpose of deposit therein, (4) a federal loan repayment subaccount
into which shall be deposited payments received from any municipality in repayment
of a project loan made from any moneys deposited in the water pollution control federal
revolving loan account. Moneys in each subaccount created under this subsection may
be expended by the commissioner for any of the purposes of the water pollution control
federal revolving loan account and investment earnings of any subaccount shall be deposited in such account.
(d) There shall be deposited in the water pollution control state account of the Clean
Water Fund: (1) The proceeds of notes, bonds or other obligations issued by the state
for the purpose of deposit therein and use in accordance with the permissible uses thereof;
(2) funds appropriated by the General Assembly for the purpose of deposit therein and
use in accordance with the permissible uses thereof; (3) interest or other income earned
on the investment of moneys in the water pollution control state account; (4) payments
received from any municipality as repayment for a grant account loan made with moneys
on deposit in the water pollution control state account; and (5) any additional moneys
made available from any sources, public or private, for the purposes for which the water
pollution control state account has been established other than moneys on deposit in the
federal receipts subaccount of the water pollution control federal revolving loan account.
(e) Within the water pollution control state account there are established the following subaccounts: (1) A state bond receipts subaccount, into which shall be deposited
the proceeds of notes, bonds or other obligations issued by the state for the purpose of
deposit therein; (2) a General Fund receipts subaccount into which shall be deposited
funds appropriated by the General Assembly for the purpose of deposit therein; (3) a
state loan repayment subaccount into which shall be deposited payments received from
any municipality in repayment of a project loan made from any moneys deposited in
the water pollution control state account; (4) a state administrative and management
subaccount into which shall be deposited amounts for administration and management
of the Clean Water Fund which amounts shall be determined by the commissioner in
consultation with the Secretary of the Office of Policy and Management; and (5) a state
grant subaccount, into which shall be deposited (A) the proceeds of notes, bonds or
other obligations issued by the state for the purposes of deposit therein; (B) funds appropriated by the General Assembly for the purpose of deposit therein; and (C) payments
received from a municipality in repayment of a grant account loan.
(f) Moneys deposited in the Clean Water Fund shall be held separate and apart from
all other moneys, funds and accounts. Investment earnings credited to the assets of such
fund and to any account and subaccount thereof shall become part of the assets of such
fund, account and subaccount. Any balance remaining in the Clean Water Fund at the
end of any fiscal year shall be carried forward in such fund, account and subaccount for
the fiscal year next succeeding.
(g) Amounts in the water pollution control federal revolving loan account of the
Clean Water Fund shall be available to the commissioner to provide financial assistance
(1) to any municipality for construction of eligible water quality projects, and (2) for
any other purpose authorized by Title VI of the federal Water Pollution Control Act. In
providing such financial assistance to municipalities, amounts in such account may be
used only: (A) By the commissioner to make loans to municipalities at an interest rate
of two per cent per annum, provided such loans shall not exceed a term of twenty years
and shall have principal and interest payments commencing not later than one year after
scheduled completion of the project, and provided the loan recipient will establish a
dedicated source of revenue for repayment of the loan; (B) by the commissioner to
guarantee, or purchase insurance for, local obligations, where such action would improve credit market access or reduce interest rates; (C) 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 have been deposited in such account;
(D) to be invested by the Treasurer of the state and earn interest on moneys in such
account; (E) by the commissioner to pay for the reasonable costs of administering such
account and conducting activities under Title VI of the federal Water Pollution Control Act.
(h) Amounts in the water pollution control state account of the Clean Water Fund
shall be available: (1) To be invested by the Treasurer of the state to earn interest on
moneys in such account; (2) for the commissioner to make grants to municipalities in
the amounts and in the manner set forth in a project funding agreement; (3) for the
commissioner to make loans to municipalities in amounts and in the manner set forth
in a project funding agreement for planning and developing eligible projects prior to
construction and permanent financing; (4) for the commissioner to make loans to municipalities, for terms not exceeding twenty years, for an eligible water quality project; (5)
for the commissioner to pay the costs of environmental studies and surveys to determine
water pollution control needs and priorities and to pay the expenses of the department
in administering the program; (6) for the payment of costs for administration and management of the Clean Water Fund; (7) provided such amounts are not required for the
purposes of such fund, for the Treasurer of the state to pay debt service on bonds of the
state issued to fund the Clean Water Fund, or for the purchase or redemption of such
bonds; (8) for the commissioner to make grants to municipalities for the development
and installation of structural improvements to secondary clarifier operations including,
but not limited to, flow distribution mechanisms, baffle-type devices, feed well design
and sludge withdrawal mechanisms. Grants under this subdivision shall be for one hundred per cent of the construction cost and not more than three million dollars from the
fund shall be used for such grants; (9) for the commissioner to pay the costs for the
establishment, administration and management of the nitrogen credit exchange program
described in section 22a-524, including, but not limited to, the purchase of equivalent
nitrogen credits from publicly-owned treatment works in the event that the account of
state funds established pursuant to section 22a-524 is exhausted; and (10) for any other
purpose of the Clean Water Fund and the program relating thereto.
(i) The Treasurer may establish such accounts and subaccounts within the Clean
Water Fund as he deems desirable to effectuate the purposes of sections 22a-475 to
22a-483, inclusive, including, but not limited to, accounts (1) to segregate a portion or
portions of the corpus of the water pollution control federal revolving loan account or
the drinking water federal revolving loan account or as security for revenue bonds issued
by the state for deposit in either of such accounts, (2) to segregate investment earnings
on all or a portion of the water pollution control federal revolving loan account, the
water pollution control state account, the drinking water federal revolving loan account
or the drinking water state account, or (3) to segregate moneys in the fund that have
previously been expended for the benefit of an eligible project from moneys that are
initial deposits in the account.
(j) There shall be deposited in the Long Island Sound clean-up account (1) the
proceeds of notes, bonds or other obligations issued by the state for the purpose of
deposit therein and use in accordance with the permissible uses thereof, (2) funds appropriated by the General Assembly for the purpose of deposit therein and use in accordance
with the permissible uses thereof and (3) any additional moneys made available from
any sources, public or private, for the purposes for which the Long Island Sound clean-up account has been established other than moneys on deposit in the federal revolving
loan account.
(k) Amounts in the Long Island Sound clean-up account shall be available: (1) To
be invested by the Treasurer of the state to earn interest on moneys in such account; (2)
for the commissioner to make grants to municipalities who undertake the construction
of combined sewer projects which are found by the commissioner to impact Long Island
Sound or which are part of a system under construction by a municipality prior to July
1, 1990, to mitigate effects of inflow on treatment processes and on Long Island Sound,
provided such grants shall be fifty per cent of the eligible water quality project costs of
such project and be made in accordance with the provisions of section 22a-478; (3) for
the commissioner to make grants to municipalities for eligible water quality projects
for which the commissioner has required nutrient removal to protect Long Island Sound
provided the amount of the grant shall be twenty per cent of the eligible water quality
costs and be made in accordance with the provisions of said section 22a-478; (4) for
the commissioner to make grants to agencies, institutions or persons to conduct research
related to Long Island Sound in accordance with procedures established by the commissioner; (5) for the commissioner to provide funds for (A) sediment, dredging and disposal
activities for Long Island Sound, including necessary studies, (B) physical improvements to coves, embayments, coastal wetlands and salt marshes in physical proximity
to Long Island Sound and (C) harbor water quality programs to enhance the sediment
and water quality of harbors, coves, embayments and wetlands of Long Island Sound;
(6) for the commissioner to provide funds for the restoration and rehabilitation of tidal
coves, embayments and salt marshes degraded by physical modification, development
or the effect of pollution, following a feasibility assessment which shall form the basis
for the commissioner's determination of eligible restoration practices; (7) for the commissioner to provide funds for laboratory development to aid analysis of water quality
samples collected as part of the Long Island Sound ambient monitoring program; (8)
for the commissioner to make grants to municipalities for each municipally-owned
wastewater treatment facility which discharges into coastal waters, for interim improvements to remove total nitrogen from such discharges in a manner which ensures that
the total nitrogen load does not exceed the amount discharged during 1990, provided
such grants shall be one hundred per cent of the eligible project costs of such projects;
and (9) for the commissioner to provide grants on a competitive basis for demonstration
projects to reduce nonpoint source pollution of Long Island Sound, following establishment by the commissioner of criteria for the awarding of such grants. The funds authorized for deposit in the Long Island Sound clean-up account pursuant to section 22a-483
shall, in addition to any use under subdivision (1) of this subsection, be expended in
accordance with the following minimums: (i) For the purposes of subdivision (2) of
this subsection, not less than twenty million five hundred thousand dollars; (ii) for the
purposes of subdivision (4) of this subsection, not less than one million dollars; (iii) for
the purposes of subdivision (6) of this subsection, not less than three million dollars;
(iv) for the purposes of subdivision (7) of this subsection, not less than five hundred
thousand dollars; and (v) for the purposes of subdivision (8) of this subsection, not less
than fifteen million dollars.
(l) There shall be deposited in the river restoration account (1) the proceeds of notes,
bonds or other obligations issued by the state for the purpose of deposit therein and use
in accordance with the permissible uses thereof, (2) funds authorized by the General
Assembly for the purpose of deposit therein and use in accordance with the permissible
uses thereof and (3) any additional moneys made available from any sources, public or
private, for the purposes for which the river restoration account has been established,
except that in no case shall the funds authorized to be deposited in this account from
the Clean Water Fund exceed three million dollars per year.
(m) Amounts in the river restoration account shall be available: (1) To be invested
by the Treasurer of the state to earn interest on moneys in such account; (2) for the
payment of costs incurred by the Department of Environmental Protection for the administration and management of the rivers protection programs of the department; (3) for the
commissioner to provide assistance to river committees established by municipalities for
purposes of protection of rivers; (4) for the commissioner to make grants to municipalities or such river committees for the physical improvement and restoration of rivers
degraded by modification, development or the effects of pollution, including but not
limited to actions to (A) restore water quality, (B) provide minimum stream flows, or
(C) restore or enhance the recreational, economic or environmental value of rivers and
riverfront land; and (5) for the payment of costs incurred by the department of environmental protection for the physical improvement and restoration of rivers degraded by
modification, development or the effects of pollution, including but not limited to actions
to (A) restore water quality, (B) provide minimum stream flows, or (C) restore or enhance
the recreational, economic or environmental value of rivers and riverfront lands by, for
example, planting vegetation, removing physical impediments to river access, stabilizing stream banks, deepening stream channels, installing fish ladders and removing sediment; and (6) for the commissioner to make grants to provide matching funds for riparian
zone restoration projects funded under the federal Agricultural Conservation Program
pursuant to 16 USC Section 590g et seq. Amounts in the river restoration fund shall not
be used for acquisition of land or interests in land, for construction or maintenance of
parking lots, or for construction or maintenance of boat ramps or other structures, with
the exception of restoration or repair of historic river-related structures.
(n) (1) The commissioner shall maintain a priority list of eligible river restoration
projects and shall establish a system setting the priority for making project grants. In
establishing such priority list and ranking system, the commissioner shall consider all
factors he deems relevant, including but not limited to, the following: (A) The public
health and safety; (B) protection of environmental resources; (C) attainment of state
water quality goals and standards; (D) funds expended on water quality improvements;
(E) consistency with basin planning; and (F) state and federal statutes and regulations.
In dispersing funds from the Rivers Restoration Account, the commissioner shall give
priority to providing matching funds for riparian zone restoration projects funded under
the federal Agricultural Conservation Program pursuant to 16 USC Section 590g et seq.,
and regulations adopted thereunder. The priority list of eligible river restoration projects
shall include a description of each project and its purpose, and an explanation of the
manner in which priorities were established.
(2) In each fiscal year the commissioner may make grants to municipalities and river
committees established for river protection in the order of priority under subdivision (1)
of this subsection to the extent of moneys available therefor in the appropriate accounts
of the Clean Water Fund.
(3) The funding of a project shall be pursuant to a project funding agreement between the state, acting by and through the commissioner, and the municipality, river
commission or river committee undertaking the project. A project funding agreement
shall be in a form prescribed by the commissioner.
(4) The commissioner may adopt regulations, in accordance with the provisions of
chapter 54, to carry out the purposes of this section.
(o) There shall be deposited in the drinking water federal revolving loan account
of the Clean Water Fund: (1) The proceeds of notes, bonds or other obligations issued
by the state for the purpose of deposit therein and use in accordance with the permissible
uses thereof; (2) federal capitalization grants and federal capitalization awards received
by the state pursuant to the federal Safe Drinking Water Act or other related federal
acts; (3) funds appropriated by the General Assembly for the purpose of deposit therein
and use in accordance with the permissible uses thereof; (4) payments received from
any recipient in repayment of a project loan made with moneys on deposit in the drinking
water federal revolving loan account; (5) interest or other income earned on the investment of moneys in the drinking water federal revolving loan account; and (6) any additional moneys made available from any sources, public or private, for the purposes for
which the drinking water federal revolving loan account has been established and for
the purpose of deposit therein.
(p) Within the drinking water federal revolving loan account there are established
the following subaccounts: (1) A federal receipts subaccount, into which shall be deposited federal capitalization grants and federal capitalization awards received by the state
pursuant to the federal Safe Drinking Water Act or other related federal acts; (2) a state
bond receipts subaccount into which shall be deposited the proceeds of notes, bonds or
other obligations issued by the state for the purpose of deposit therein; (3) a state General
Fund receipts subaccount into which shall be deposited funds appropriated by the General Assembly for the purpose of deposit therein; and (4) a federal loan repayment
subaccount into which shall be deposited payments received from any recipient in repayment of a project loan made from any moneys deposited in the drinking water federal
revolving loan account. Moneys in each subaccount created under this subsection may
be expended by the commissioner for any of the purposes of the drinking water federal
revolving loan account and investment earnings of any subaccount shall be deposited
in such account.
(q) There shall be deposited in the drinking water state account of the Clean Water
Fund: (1) The proceeds of notes, bonds or other obligations issued by the state for the
purpose of deposit therein and use in accordance with the permissible uses thereof; (2)
funds appropriated by the General Assembly for the purpose of deposit therein and use
in accordance with the permissible uses thereof; (3) interest or other income earned on
the investment of moneys in the drinking water state account; (4) payments received
from any recipient as repayment for a project loan made with moneys on deposit in the
drinking water state account; and (5) any additional moneys made available from any
sources, public or private, for the purposes for which the drinking water state account
has been established other than moneys on deposit in the federal receipts subaccount
of the drinking water federal revolving loan account.
(r) Within the drinking water state account there are established the following subaccounts: (1) A state bond receipts subaccount, into which shall be deposited the proceeds
of notes, bonds or other obligations issued by the state for the purpose of deposit therein;
(2) a General Fund receipts subaccount into which shall be deposited funds appropriated
by the General Assembly for the purpose of deposit therein; and (3) a state loan repayment subaccount into which shall be deposited payments received from any recipient
in repayment of a project loan made from any moneys deposited in the drinking water
state account.
(s) Amounts in the drinking water federal revolving loan account of the Clean Water
Fund shall be available to the commissioner to provide financial assistance (1) to any
recipient for construction of eligible drinking water projects and approved by the Department of Public Health, and (2) for any other purpose authorized by the federal Safe
Drinking Water Act or other related federal acts. In providing such financial assistance
to recipients, amounts in such account may be used only: (A) By the commissioner to
make loans to recipients at an interest rate not exceeding one-half the rate of the average
net interest cost as determined by the last previous similar bond issue by the state of
Connecticut as determined by the State Bond Commission in accordance with subsection
(t) of section 3-20, provided such loans shall not exceed a term of twenty years, or such
longer period as may be permitted by applicable federal law, and shall have principal
and interest payments commencing not later than one year after scheduled completion
of the project, and provided the loan recipient shall establish a dedicated source of
revenue for repayment of the loan, except to the extent that the priority list of eligible
drinking water projects allows for the making of project loans to disadvantaged communities upon different terms, including reduced interest rates or an extended term, if permitted by federal law; (B) by the commissioner to guarantee, or purchase insurance
for, local obligations, where such action would improve credit market access or reduce
interest rates; (C) 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 have been deposited in such account; (D) to be invested by the State
Treasurer and earn interest on moneys in such account; (E) by the Commissioner of
Environmental Protection and the Department of Public Health to pay for the reasonable
costs of administering such account and conducting activities under the federal Safe
Drinking Water Act or other related federal acts.
(t) Amounts in the drinking water state account of the Clean Water Fund shall be
available: (1) To be invested by the State Treasurer to earn interest on moneys in such
account; (2) for the Commissioner of Environmental Protection to make grants to recipients in a manner provided under the federal Safe Drinking Water Act in the amounts
and in the manner set forth in a project funding agreement; (3) with the concurrence of
the Commissioner of Public Health for the Commissioner of Environmental Protection
to make loans to recipients in amounts and in the manner set forth in a project funding
agreement for planning and developing eligible drinking water projects prior to construction and permanent financing; (4) with the concurrence of the Commissioner of
Public Health for the Commissioner of Environmental Protection to make loans to recipients, for terms not exceeding twenty years, for an eligible drinking water project; (5)
with the concurrence of the Commissioner of Public Health for the Commissioner of
Environmental Protection to pay the costs of studies and surveys to determine drinking
water needs and priorities and to pay the expenses of the Department of Environmental
Protection and the Department of Public Health in undertaking such studies and surveys
and in administering the program; (6) for the payment of costs as agreed to by the
Department of Public Health after consultation with the Secretary of the Office of Policy
and Management for administration and management of the drinking water programs
within the Clean Water Fund; (7) provided such amounts are not required for the purposes of such fund, for the State Treasurer to pay debt service on bonds of the state
issued to fund the drinking water programs within the Clean Water Fund, or for the
purchase or redemption of such bonds; and (8) for any other purpose of the drinking
water programs within the Clean Water Fund and the program relating thereto.
(P.A. 86-420, S. 3, 12; P.A. 87-571, S. 3, 7; P.A. 89-377, S. 3, 8; P.A. 90-297, S. 22, 24; 90-301, S. 6-8; June Sp. Sess.
P.A. 90-1, S. 2, 3, 10; P.A. 91-246, S. 1; 91-344, S. 3; P.A. 92-209; 92-219; P.A. 94-154, S. 2, 3; May 25 Sp. Sess. P.A.
94-1, S. 115, 130; P.A. 96-181, S. 110-112, 121; June Sp. Sess. P.A. 98-1, S. 52, 121; P.A. 01-180, S. 7, 9.)
History: P.A. 87-571 essentially replaced prior provisions re clean water fund with new provisions establishing water
pollution control revolving loan fund account and water pollution control grant account; P.A. 89-377 changed the water
pollution control grant account to the water pollution control state account, changed the water pollution control revolving
loan fund account to the water pollution control federal revolving loan account and added a Long Island Sound clean-up
account and made various changes throughout to allocate funds to the appropriate accounts; P.A. 90-297 added Subsec.
(k)(16), concerning tidal coves and embayments, and (k)(7), concerning analysis of water quality samples, and added a
provision allocating moneys within the Long Island Sound clean-up account; P.A. 90-301 added Subsec. (b)(7) re deposit
of moneys forfeited for permit violations and added Subsec. (h)(8) re grants for improvements to clarifier operations and
renumbered the remaining Subdiv. accordingly; June Sp. Sess. P.A. 90-1 deleted Subsec. (c)(5) which created a federal
administrative and management subaccount and added Subsec. (k)(8) concerning removal of total nitrogen from discharges
and reworded the allocations of funds for the Long Island Sound clean-up account; P.A. 91-246 added Subsec. (k)(9)
authorizing commissioner to provide grants on a competitive basis for certain projects to reduce nonpoint source pollution;
P.A. 91-344 amended Subsec. (k) to include in grants authorized under that subsection grants to certain municipal sewer
systems under construction prior to July 1, 1990; P.A. 92-209 amended Subsec. (k) to allow up to $15,000,000 of the
Long Island Sound clean-up account to be used for certain nitrogen removal projects, deleting $100,000 limit for each
municipality's facilities; P.A. 92-219 amended Subsec. (k) to allow use of the funds in the Long Island Sound clean-up
account for physical improvements to, and restoration of, salt marshes; P.A. 94-154 amended Subsec. (a) to establish river
restoration account and added Subsecs. (l), (m) and (n) detailing river restoration account and projects; May 25 Sp. Sess.
P.A. 94-1 amended Subsec. (m) by making technical change; (Revisor's note: In 1995 the reference in Subsec. (n)(1)(F)
to "16 USC Section 550" was changed editorially by the Revisors to "16 USC Section 590g" in conformance with the
amendment to Subsec. (m)); P.A. 96-181 amended Subsecs. (a) and (i) to add drinking water federal revolving loan account
and drinking water state account and made technical changes and added Subsecs. (o) to (t), inclusive, re drinking water
federal revolving loan account and drinking water state account, effective July 1, 1996; June Sp. Sess. P.A. 98-1 made a
technical change in Subsec. (e), effective June 24, 1998; P.A. 01-180 amended Subsec. (h) to add new Subdiv. (9) re
amounts in water pollution control state account available for commissioner to pay costs of nitrogen credit exchange
program and to redesignate existing Subdiv. (9) as Subdiv. (10), effective July 1, 2001.