It is enacted by the General Assembly as follows:

SECTION 1. Section 37-8-17.2 of the General Laws in Chapter 37-8 entitled "Public Buildings" is hereby amended to read as follows:

{ADD 37-8-17.2. Energy conservation revolving fund. -- ADD} (a) There is hereby created as a separate fund within the treasury the energy conservation revolving fund 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 fund shall consist of such sums as the state may from time to time appropriate, as well as monies received from the federal government, gifts, bequests, donations, utility provided subsidies, or otherwise from any public or private source, which monies are intended to implement and encourage energy conservation and cost reduction measures in state owned and leased facilities.

(b) All moneys placed in the energy conservation revolving fund shall be made available to make loans or grants for the implementation of energy conservation and energy cost reduction measures {ADD , water conservation, and water and sewer cost reduction measures ADD} in facilities and buildings owned or leased by the state of Rhode Island.

(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 from the repayment of any loans made for that purpose shall be deposited in and returned to the energy conservation revolving fund, to constitute a continuing revolving fund for the purposes listed above.

(d) The statewide energy conservation office of the Rhode Island department of administration shall adopt rules and regulations consistent with the purposes of this chapter and chapter 35 of title 42, administrative procedures, which provide for an orderly and equitable disbursement and repayment of funds.

SECTION 2. This act shall take effect upon passage.