Title 42
State Affairs and Government

Chapter 44.1
Sewage and Water Supply Failure Fund

§ 42-44.1-3. Sewage and water supply failure program.

(a) There is hereby created as a separate program to be called the sewage and water supply failure revolving loan program which shall be administered by the general treasurer in accordance with the same laws and fiscal procedures as the general funds of the state. The program shall be funded by such sums as the state may from time to time appropriate, to rectify contaminated domestic water supplies, or failed domestic individual sewage disposal systems.

(b) All monies appropriated for the sewage and water supply failure program or made available from the issuance of bonds pursuant to § 42-44.1-6 shall be made available immediately, and are hereby specifically appropriated to the department of environmental management for the following purposes:

(1) To make low interest loans to individuals for the repair or replacement of a failed domestic individual sewage disposal system;

(2) To make low interest loans to individuals with failed domestic individual sewage disposal systems to finance a connection to a public sewage system when available;

(3) To make low interest loans to individuals with a contaminated domestic water supply system to finance a connection to another water supply;

(4) To make grants to municipalities for up to one-half (½) the cost of extending lateral sewer lines to areas experiencing multiple domestic ISDS failures;

(5) To make grants to municipalities for up to one-half (½) the cost of extending public water systems to areas experiencing contamination of multiple individual domestic water supplies.

(c) Loans made under the provisions of this section may be made directly, or in cooperation with other lenders or any agency, department, or bureau of the federal government or state of Rhode Island. The proceeds received from the repayment of any loans made from this fund shall be deposited in and returned to the sewage and water supply failure bond fund, to constitute a continuing revolving fund for the purposes listed above. Interest rates charged on the loans shall be on a sliding scale relative to income of the recipient.

(d) Grants made to municipalities under the provisions of this section shall not exceed one-half (½) of the direct costs incurred in providing adequate water and sewage disposal to affected residences. These funds may not be used either alone or in conjunction with other funds beyond the area necessary to rectify an established multiple failure of sewer or water systems.