In 1989, KRS Chapter 224A and 200 KAR 17:050 were enacted to begin a new financial program for construction of wastewater projects. Construction grant program funds were no longer available from the U.S. Environmental Protection Agency (EPA) for new projects, and financial assistance was still greatly needed for communities to comply with the Clean Water Act. EPA has been funding the Clean Water State Revolving Fund (CWSRF) in the form of annual capitalization grants to the state. The state must provide a 20 percent match to the federal share.
The CWSRF, also referred to as Fund A, is a 20-year loan program for planning, design and construction of wastewater infrastructure projects, storm water projects and nonpoint source projects. Fund A1 provides assistance to small communities in financing the preliminary costs prior to construction. It is a five-year loan for planning, design and sanitary sewer evaluation study (SSES). If a community applies for a loan for the construction portion of the project under Fund A, the Fund A1 can be rolled over to the Fund A loan.
To be considered eligible to receive a CWSRF loan, a project must be identified on Kentucky's annual Intended Use Plan/Project Priority List (IUP/PPL).
Kentucky's Energy and Environment Cabinet's (EEC) Division of Water (DOW) and Kentucky Infrastructure Authority (KIA), through an interagency agreement, provide communities with low-interest loans from the CWSRF to comply with the requirements of the Clean Water Act.
Two branches within DOW are responsible for administering the CWSRF program along with KIA. Within the Water Infrastructure Branch, the State Revolving Fund (SRF) and Special Appropriation Projects Section (SPAP) is responsible for the administrative duties associated with the CWSRF including reviews of the loan application, engineering and construction procurement/contracts, DBE and pay requests. Also within the Water Infrastructure Branch, the Wastewater Planning Section conducts the environmental reviews for all loan projects and reviews of regional facilities plans and SSES. Within the Surface Water Permits Branch, the Construction and Compliance Section reviews the design and construction contract documents, issues construction permits and monitors the construction progress. The Water Infrastructure Branch is primarily responsible for jointly developing the annual IUP/PPL with KIA.