There is hereby established in the environmental fee fund created in § 1-40-30, the drinking water administrative subfund. This subfund shall consist of legislative appropriations, federal grants, gifts, civil penalties received for any drinking water standards violations, and fees received pursuant to § 34A-3A-20. The fund shall be maintained separately and be administered by the department in order to defray expenses of all activities associated with administering the drinking water program. Expenditures from the subfund shall be appropriated through the normal budget process. Unexpended funds and interest shall remain in the subfund until appropriated by the Legislature.