An Act To Create a Sustainable Funding Mechanism for Water and Wastewater Infrastructure in the State
Maine Legislature, Session 124, LD 0650
Committee Amendment CA_A_H455 (House)
Amends: 30-A MRSA §6006-H, 38 MRSA §411-C

COMMITTEE AMENDMENT 'A "to H.P. 464, L.D. 650, B"ill, "An Act To Create 
a Sustainable Funding Mechanism for Water and Wastewater Infrastructure in the State" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Create a Funding Structure for Sustainable Investment in Public Water 
and Wastewater Infrastructure in the State' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. L 22 MRS A §2610 is enacted to read: 
"§2610. Maine Drinking Water Fund 
1. Establishment; administration. The Maine Drinking Water Fund, referred to in 
this section as "the fund," is established as provided in this section. 
A. The fund is established as a nonlapsing fund to provide fimmcial assistance, in 
accordance with subsection 2, for the acquisition, planning, design, construction, 
reconstruction, enlargement, repair, protection and improvement of public water 
systems, drinking water supplies and water treatment facilities. 
B. The department shall administer the fund. The fund must be invested in the same 
manner as permitted for investment of funds belonging to the State or held in the 
State Treasury. The fund must be established and held separate from any other funds 
and used and administered exclusively for the purpose of this section. The fund 
consists of the following: 
(1) Sums that are appropriated by the Legislature or transferred to the fund from 
time to time from the State Water and Wastewater Infrastructure Fund, pursuant 
to Title 30-A, section 6006-H; 
(2) Interest earned from the investment of fund balances; and 
Page I - 124LRl137(02)-1 
COMMITTEE AMENDMENT 
:~ ... 
~fJ!j; 
f;'&:;~ 
%~ 
flf:!~ 
COMMITTEE AMENDMENT A" to H.P. 464, L.D. 650 
(3) Other funds from any public or private source received for use for any of the 
purposes for which the fund has been established. 
2. Uses. The fund may be used for one or more of the following purposes: 
A. 
To make grants to public water systems, pursuant to this section, for the 
acquisition, planning, design, construction, reconstruction, enlargement, repair, 
protection or improvement of public water systems, drinking water supplies or water 
treatment facilities; 
B. 
To forgive loans held by public water systems for the acquisition, planning, 
design, construction, reconstruction, enlargement, repair, protection or improvement 
of public water systems, drinking water supplies or water treatment facilities; 
C. To provide a state match for federal funds provided to tlie Safe Drinking Water 
Revolving Loan Fund, pursuant to Title 30-A, section 6006-B; 
D. To invest available fund balances and to credit the net interest income on those 
balances to the fund; and 
E. To pay the costs of the department associated with the administration of the fund, 
as long as no more than 5% of the aggregate of the highest fund balance in any fiscal 
year is used for these purposes. ' 
3. Rules. The department shall adopt rules necessary to implement this section, 
including rules to establish one or more grant programs in accordance with subsection 2, 
paragraph A. Rules adopted by the department pursuant to this subsection are routine 
technical rules as defined in Title 5, chapter 375, subchapter 2-A: 
Sec. 2. 30-A MRSA §6006-H is enacted to read: 
§6006-H. State Water and Wastewater Infrastructure Fund 
1. Establishment; purposes. The State Water and Wastewater Infrastructure Fund, 
referred to in this section as "the fund," is established as provided in this section. 
A. The fund is established in the custody of the bank as a special fund to provide 
financial assistance, for capital investment in public water and wastewater 
infrastructure. For the purposes of this section', "public water and wastewater 
infrastructure" includes, but is not limited to public water systems, drinking water 
supplies and treatment facilities, public wastewater systems and treatment facilities 
and water pollution abatement systems. 
B. The bank shall administer the fund. The fund must be invested in the same 
manner as permitted for ihvestment of funds belonging to the State or held in the 
State Treasury. The fund must be established and held separate from any other funds 
or money of the State or the bank and used and administered exclusively for the 
purpose ofthis section. The fund consists of the folIowing: 
(1) Sums that are appropriated by the Legislature or transferred to the fund from 
time to time by the Treasurer of State; 
(2) Principal and interest received from the repayment of loans made from the 
fund; 
COMMITTEE AMENDMENT 
) 
,.' 
) 
) 
I, !~~ 
~ 
~f;;"")., 
I 
,r'--', 
(~) 
I I 
COMMITIEE AMENDMENT A" to H.P. 464, L.D. 650 
(3) The proceeds of notes or bonds issued by the State' for the purpose of deposit 
in the fund; 
(4) Interest earned'from the investment of fund balances; 
(5) Private gifts, bequests and donations made to the State for any of the purposes 
for which the fund is established; and 
(6) Other funds from any public or private source received for use for any of the 
purposes for which the fund has been established. 
2. Uses. The fund may be used for one or more of the following purposes: 
A. To guarantee or insure, directly or indirectly, the payment of notes or bonds 
issued or to be issued by the State for the purpose of financing capital investment in 
water and wastewater infrastructure through' the fund; 
B. To provide funds for capital investment in water and wastewater infrastructure 
through the Maine Drinking Water Fund, established in Title 22, section 2610, and 
the Maine Clean Water Fund, established in Title 38, section 4 I I -C. Transfers to 
these funds must be made in consultation with the agencies administering those funds 
and must be secondary to the repayment of notes' or bonds issued pursuant to 
paragraph A; 
C. To provide a state match for federal funds provided to the State Revolving Loan 
Fund established in section 6006-A and the safe drinking water revolving loan fund 
established in section 6006-8; 
D. To invest available fund balances and to credit the net interest income on those 
balances to the fund; 
, 
E. To invest as a source of revenue or security for the payment of principal and 
interest on general or special obligations of the bank if the proceeds of the sale of the 
obligations have been deposited in the fund; and 
F. To pay the costs of the bank associated with the administration of the fund and 
projects financed by it as long as no more than 2% of the aggregate of the highest 
fund balance in any fiscal year is used for these purposes. 
3. Establishment of accounts. The bank may establish accounts and subaccounts 
within the fund as it determines desirable to effectuate the purposes of this section, 
including, but not limited to, accounts to segregate a portion of the fund for grants and as 
security for bonds issued by the bank for deposit in the fund and to be invested for the 
benefit of specified projects receiving financial assistance from the fund. 
Sec. 3. 38 MRSA §411-C is enacted to read: 
§411-C. Maine Clean Water Fund 
1. Establishment; administration. The Maine Clean Water Fund, referred to in this 
section as "the fund," is established as provided in this section. 
A. The fund is established as a non lapsing fund to provide financial assistance, in 
accordance with subsection 2, for the acquisition, planning, design, construction, 
COMMITTEE AMENDMENT 
I 
(~.-:;~ 
I I 
COMMITIEE AMENDMENT ·A " 
to H.P. 464, L.D. 650 
reconstruction, enlargement, repair, protection and improvement of public wastewater 
systems and treatment facilities and water pollution abatement systems. 
B. The department shall administer the fund. The fund must be invested in the same 
manner as permitted for investment of funds belonging to the State or held in the 
State Treasury. The fund must be established and held separate from any other funds 
and used and administered exclusively for the purpose of this section. The fund 
consists of the following: 
(n Sums that are appropriated by the Legislature or transferred to the fund from 
time to time from the State Water and Wastewater Infrastructure Fund pursuant 
to Title 30-A, section 6006-H; . 
(2) Interest earned from the investment of fund balances; and 
(3) Other funds from any public or private source received for use for any of the 
purposes for which the fund has been established. 
2. Uses. The fund may be used for one or more of the following purposes: 
A. To make grants to public wastewater systems under sections 411 and 412; 
B. To forgive loans held by public wastewater systems for the acquisition, planning, 
design, construction, reconstruction, enlargement, repair, protection or improvement 
of public wastewater systems and treatment facilities and water pollution abatement 
systems; 
C. To provide a state match for federal funds allocated to the state revolving loan 
fund established in Title 30-A, section 6006-A;· 
D. To invest available fund balances and to credit the net interest income on those 
balances to the fund; and 
E. To pay the costs of the department associated with the administration of the fund 
as long as no more than 5% of the aggregate of the highest fund balance in any fiscal 
. year is used for these purposes. 
Sec. 4. 
Stakeholder group; authority for legislation. The Department of 
Health and Human Services and the Department of Environmental Protection shall 
convene a stakeholder group to develop recommendations regarding the funds created in 
this Act. The stakeholder group shall, at a minimum, review and make recommendations 
regarding funding needs and sources for the State Water and Wastewater Infrastructure 
Fund, established in the Maine Revised Statutes, Title 30-A, section 6006-H, taking into 
account the intent to use that fund as a state match for federal funds and to transfer funds 
from that fund to the Maine Drinking Water Fund, established in Title 22, section 2610, 
and the Maine Clean Water Fund, established in Title 38, section 411-C. No later than 
February 1, 20 10, the Department of Health and Human Services and the Department of 
Environmental Protection shall jointly submit a report to the Joint Standing Committee on 
Utilities and Energy regarding the findings and recommendations of the stakeholder 
group. Following receipt and review of the report, the committee may submit legislation 
related to the report to the Second Regular Session of the 124th Legislature.' 
COMMITTEE AMENDMENT 
) 
') 
,) 
. 
\~ 
COMMITIEE AMENDMENT A " 
to H). 464, L.D. 650 
SUMMARY 
This amendment replaces the bill. The amendment establishes a funding structure for 
capital investment in public water and wastewater infrastructure in the State, but does not 
provide actual funds at this time. The funding structure established by the amendment 
consists of: the State Water and Wastewater Infrastructure Fund within the Maine 
Municipal Bond Bank; the Maine Drinking Water Fund within the Department of Health 
and Human Services, which is designed for capital investment and improvement of public 
water systems, drinking water supplies and water treatment facilities; and the Maine 
Clean Water Fund within the Department of Environmental Protection, which is designed 
for capital investment and improvement of public wastewater systems and treatment 
facilities and water pollution abatement systems. 
The amendment directs the Department of Health and Human Services and the 
Department of Environmental Protection to convene a stakeholder group to review and 
. 14 
make recommendations regarding funding needs and sources for the State Water and 
Wastewater Infrastructure Fund, taking into account the intent to use that fund as a state 
match for federal funds and to transfer funds from that fund to the Maine Drinking Water 
Fund and the Maine Clean Water Fund. The amendment requires the departments to 
repOli the results of the stakeholder group to the Joint Standing Committee on Utilities 
and Energy and authorizes the committee to submit legislation related to the report to the 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/25/09 .fo?ac. 
LD650 
LR 1137(02) 
An Act To Create a Sustainable Funding Mechanism forWater and Wastewater Infrastructure in the 
State 
Fiscal Detail ~nd Notes 
Fiscal Note for Bill as Amended by Committee Amendment 'A" 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
The additional costs to the Department of Environmental Protection and to the Department of Health and Human 
"1 
. Services associated with participating in the stakeholder group and providing a report can be absorbed within existing 
\ 
budgeted resources. 
) 
) 
LRl137(02) - Fiscal Note - Page 1 of 1