§ 4763. Loans to municipalities for privately owned clean water projects

(a) Where the Secretary has determined that a privately owned clean water project is the preferred alternative to abate or control a pollution problem or to provide water quality benefits, a loan may be made to a municipality from the Vermont Environmental Protection Agency Pollution Control Revolving Fund established in section 4753 of this title. In such cases, the following conditions shall apply:

(1) Guaranteed repayment of the loan will be based on a municipal bond, but actual repayment may be made with funds from the owner, as set forth in an agreement between the owner and the municipality.

(2) In all cases, there shall be a binding agreement between the owner and the municipality that provides for the proper operation and maintenance of the privately owned clean water project for at least the term of the loan.

(3) All conditions and limitations of section 4755 of this title apply to loans made under this section.

(4) No construction loan shall be made to a municipality under this subsection, nor shall any part of any revolving loan made under this subsection be expended until all of the following take place:

(A) The Secretary certifies to the Bond Bank that all land use, subdivision, public building, and water supply and wastewater permits necessary to construct and operate any improvements to be financed by the loan have been issued to the owner of the privately owned clean water project.

(B) The applicant municipality certifies to the Bond Bank that the owner has secured all State and federal permits, licenses, and approvals necessary to construct and operate the clean water project to be financed by the loan.

(C) The Secretary certifies to the Bond Bank that the loan eligibility priority established under section 4758 of this title entitles the applicant municipality to immediate financing or assistance under this chapter.

(D) The applicant municipality, in the case of applications by towns, cities, and incorporated villages, and with respect to all loans awarded after July 1, 1992, certifies to the Bond Bank that the project conforms to a duly adopted capital budget and program, consistent with chapter 117 of this title, for meeting the pollution control needs of the municipality.

(E) The applicant municipality, in the case of an application by a district, certifies to the Bond Bank that the project conforms to a capital budget and program duly adopted by the district in accordance with the provisions of its charter.

(b) The Bond Bank may make loans to a municipality for the preparation of final engineering plans and specifications for the construction of a privately owned clean water project or element of such a project in the same manner as set forth in subsection 4756(b) of this title. (Added 1999, No. 148 (Adj. Sess.), § 55, eff. May 24, 2000; amended 2017, No. 185 (Adj. Sess.), § 7, eff. May 28, 2018.)