HB1807 HD1.DOC

SECTION 1. The purpose of this Act is to enable Hawaii to receive and use moneys under the federal American Recovery and Reinvestment Act of 2009 and any later federal laws for drinking water or wastewater infrastructure

SECTION 2. Chapter 340E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§340E- Use of American Recovery and Reinvestment Act of 2009 and other federal moneys. (a) The director may provide financial assistance to public water systems for the construction of necessary drinking water infrastructure projects, through the drinking water fund, using moneys from the American Recovery and Reinvestment Act of 2009 and other applicable federal acts.

(b) The director may establish a separate account within the drinking water fund and assign to that account federal moneys appropriated under federal laws that authorize principal forgiveness, zero and negative interest loans, and grants, including without limitation the American Recovery and Reinvestment Act of 2009 and other applicable federal acts. The director may use those moneys and in so doing may include additional requirements and subsidization not applicable to the remainder of the drinking water fund, including forgiveness of principal, zero and negative interest loans, and grants to public water systems that meet eligibility requirements for the drinking water fund.

(c) The director shall certify that a project is entitled to priority over other eligible projects on the basis of drinking water quality and financial needs as well as a preference to those projects that can be started and completed expeditiously as stipulated under the American Recovery and Reinvestment Act of 2009.

(d) Among eligible projects, the director may also give priority to projects that incorporate renewable energy, energy efficiency, and conservation measures in drinking water infrastructure, to the extent allowed by federal law.

(e) Each project receiving financial assistance shall conform with the conditions for drinking water project financial assistance under section 340E-37(a)."

SECTION 3. Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§342D- Use of American Recovery and Reinvestment Act of 2009 and other federal moneys. (a) The director may provide financial assistance for publicly owned wastewater treatment works for the construction of necessary wastewater infrastructure projects, through the revolving fund, using moneys from the American Recovery and Reinvestment Act of 2009 and other applicable federal acts.

(b) The director may establish a separate account within the revolving fund and assign to that account federal moneys appropriated under federal laws that authorize principal forgiveness, zero and negative interest loans, and grants, including without limitation the American Recovery and Reinvestment Act of 2009 and other applicable federal acts. The director may use those moneys and in so doing may include additional requirements and subsidization not applicable to the remainder of the revolving fund, including forgiveness of principal, zero and negative interest loans, and grants to publicly-owned wastewater treatment works that meet eligibility requirements for the revolving fund.

(c) The director shall certify that a project receiving financial assistance is entitled to priority over other eligible projects on the basis of water pollution and financial needs as well as a preference to those projects that can be started and completed expeditiously as stipulated under the American Recovery and Reinvestment Act of 2009.

(d) Among eligible projects, the director may also give priority to projects that incorporate renewable energy, energy efficiency, and conservation measures in wastewater infrastructure, to the extent allowed by federal law.

(e) Each project receiving financial assistance shall be in conformance with the conditions for water pollution control financing under section 342D-87(a) (1), (2), (4) and (5) and (b)."

SECTION 4. Section 340E-31, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

"American Recovery and Reinvestment Act of 2009" means the federal law, P.L. , making appropriations for various purposes, including job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and state and local fiscal stabilization purposes."

SECTION 5. Section 342D-80, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 6. There is appropriated out of federal funds received by the State from the American Recovery and Reinvestment Act of 2009 and any other applicable federal acts the sum of $ or so much thereof as may be necessary for fiscal year 2009-2010 to fund drinking water and wastewater infrastructure projects pursuant to this Act.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

HOUSE OF REPRESENTATIVES	H.B. NO.	1807
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 1
STATE OF HAWAII