Kentucky Administrative Regulations › Title 200 - FINANCE AND ADMINISTRATION CABINET › Chapter 17 - Kentucky Infrastructure Authority › Section 200 KAR 17:080 - Guidelines for 2020 water service account

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				45.031,
				224A.011,
				224A.112,
				224A.300-224A.314
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				224A.070(1) and
				224A.113
				authorize the Kentucky Infrastructure Authority to promulgate administrative
				regulations to implement
				KRS
				224A.112.
				KRS
				224A.300(4) requires the
				authority to promulgate administrative regulations requiring an entity
				receiving funding to provide specific operational information and updates of
				its system. This administrative regulation establishes procedures for the
				application for and provision of financial assistance to governmental agencies
				and investor-owned utilities for the construction of infrastructure projects
				from the 2020 water service account of the infrastructure revolving
				fund.
Section 1. Definitions.
(1) "Applicant" means a governmental agency
			 or investor-owned utility that has submitted an application to the authority
			 for a loan or grant from the 2020 water service account.
(2) "Application" means an application
			 submitted by an applicant for a loan or grant from the 2020 water service
			 account.
(3) "Conditional
			 commitment letter" means a letter delivered to the applicant stating the
			 authority's commitment to provide a grant or a loan or a combination thereof
			 under specifications and subject to the satisfaction of certain conditions by
			 the applicant.
(4) "Index" means an
			 index selected by the board of directors at least once annually setting forth
			 interest rates for municipal bonds published by an organization or corporation
			 recognized in the municipal bond market as being a publisher of municipal bond
			 interest rate indices.
(5) "Index
			 rate" means rates of interest published in an index.
(6) "Investor-owned utility" means a
			 partnership, corporation, individual, association, limited liability company or
			 other legal entity:
(a) Not owned, operated or
			 controlled by a governmental agency;
(b) Which owns a water production or
			 distribution facility; and
(c)
			 Which is subject to the jurisdiction of the Public Service Commission of the
			 Commonwealth of Kentucky.
(7) "Kentucky State Clearinghouse" means the
			 project review mechanism, attached to the Department for Local Government,
			 established in
			 KRS
			 45.031
(8) "Kentucky Uniform System of Accounting"
			 means the elements of a basic accounting system, including a standardized
			 format for an annual budget, a chart of accounts with definitions, and a
			 monthly operating report to system managers established by the authority, which
			 shall be used by a water or wastewater system seeking or using funds of the
			 authority if an alternative accounting system has not been approved by the
			 authority.
(9) "Project" means an
			 infrastructure project, including:
(a) An
			 activity which may involve establishing accounting systems meeting the
			 requirements of
			 KRS
			 224A.306;
(b) An activity related to establishing a new
			 uniform accounting system for the use of applicants that merge or consolidate
			 their water services;
(c) An
			 activity in connection with water loss audits and leak detection;
(d) Repair or replacement of a distribution
			 facility deemed reasonable by the authority and undertaken as a result a water
			 loss audit;
(e) An activity
			 necessary to regionalize, merge or consolidate water systems and to eliminate
			 structural and administrative duplication;
(f) An action to encourage new projects to
			 provide service to unserved areas and improve service to underserved areas of
			 the state; and
(g) An activity
			 taken by the Kentucky Geological Survey for the purpose of continuing and
			 expanding the identification and study of the water resource potential of
			 underground coal mines and high yield water wells.
(10) "Project priority list" means the list
			 developed by the authority for funding of projects in priority order.