ID H0056

Establishes the drinking water loan fund for providing loans to community water systems and nonprofit noncommunity water systems to facilitate compliance with national primary drinking water standards.

Extends the maximum loan amortization period from twenty (20) years to thirty (30) years after project completion, with extended terms up to 30 years allowed for disadvantaged communities if the loan does not exceed the project's design life.

Restricts financial assistance to project expenditures only, excluding monitoring, operation, and maintenance costs, and prohibits use for real property acquisition unless integral to the authorized project and purchased from a willing seller.

Denies loans to water systems lacking technical, managerial, and financial capability or in significant noncompliance with national primary drinking water regulations unless the assistance will ensure compliance and the system agrees to implement necessary operational improvements.

Limits use of deposited amounts to making loans at market interest rates or lower, refinancing municipal debt obligations incurred after July 1, 1993, providing security for state bonds, and earning interest on fund amounts.