CHAPTER 446k

WATER POLLUTION CONTROL

Table of Contents

Sec. 22a-472. Hydraulic fracturing waste, oil waste and natural gas waste. Definitions. Prohibitions. Permits. Information requests by Commissioner of Energy and Environmental Protection. Regulations. Oil and gas exploration. Preemption.

Sec. 22a-478. Eligible water quality projects. Eligible drinking water projects. Project grants. Grant account loans.

Sec. 22a-483f. Public water system improvement program.


Sec. 22a-472. Hydraulic fracturing waste, oil waste and natural gas waste. Definitions. Prohibitions. Permits. Information requests by Commissioner of Energy and Environmental Protection. Regulations. Oil and gas exploration. Preemption. (a) For the purposes of this section:

(1) “Dispose” means the discharge, deposit, injection, dumping, spilling, leaking or placing of any waste into or on any land or water so that such waste, or any constituent of such waste, may enter the environment, be emitted into the air or discharged into any waters of the state;

(2) “Fluid” means any material or substance that flows or moves whether in semisolid, liquid, sludge, gas or any other form or state;

(3) “Gas” means all natural gas, whether hydrocarbon or nonhydrocarbon, including, but not limited to, hydrogen sulfide, helium, carbon dioxide, nitrogen, hydrogen and casinghead gas;

(4) “Hydraulic fracturing” means the process of pumping a fluid into or under the surface of the ground in order to create fractures in rock for exploration, development, production or recovery of gas, oil and other subsurface hydrocarbons. “Hydraulic fracturing” does not include the drilling or repair of a geothermal water well or any other well drilled or repaired for drinking water purposes;

(5) “Person” means any individual, firm, partnership, association, syndicate, company, trust, corporation, limited liability company, municipality, agency or political or administrative subdivision of the state;

(6) “Radioactive materials” means any material, solid, liquid or gas, including, but not limited to, waste that emits ionizing radiation spontaneously;

(7) “Store” means holding waste for a temporary period, at the end of which the waste is treated, disposed of or stored elsewhere;

(8) “Transfer” means to move from one vehicle to another or to move from one mode of transportation to another;

(9) “Treat” means any method, technique or process designed to change the physical, chemical or biological character or composition of any waste, including, but not limited to, the reclaiming or rendering of waste from hydraulic fracturing as suitable for use or reuse;

(10) “Waste from hydraulic fracturing” means any wastewater, wastewater solids, brine, sludge, drill cuttings or any other substance used for, associated with, or generated secondarily to the purpose of hydraulic fracturing;

(11) “Natural gas extraction activities” means all geologic or geophysical activities related to the exploration for or extraction of natural gas, including, but not limited to, core and rotary drilling and hydraulic fracturing;

(12) “Oil extraction activities” means all geologic or geophysical activities related to the exploration for or extraction of oil, including, but not limited to, core and rotary drilling and hydraulic fracturing;

(13) “Natural gas waste” means: (A) Any liquid or solid waste or its constituents that is generated secondarily as a result of natural gas extraction activities that may consist of water, brine, chemicals, naturally occurring radioactive materials, heavy metals or other contaminants, (B) leachate from solid wastes associated with natural gas extraction activities, (C) any waste that is generated as a result of or in association with the underground storage of natural gas, (D) any waste that is generated as a result of or in association with liquefied petroleum gas well storage operations, and (E) any products or byproducts resulting from the treatment, processing or modification of any of the wastes described in this subdivision;

(14) “Oil waste” means: (A) Any liquid or solid waste or its constituents that is generated secondarily as a result of oil extraction activities that may consist of water, brine, chemicals, naturally occurring radioactive materials, heavy metals or other contaminants, (B) leachate from solid wastes associated with oil extraction activities, and (C) any products or byproducts resulting from the treatment, processing or modification of any of the wastes described in this subdivision; and

(15) “Apply” means the physical act of placing or spreading natural gas waste or oil waste on any road or real property in the state.

(b) No person may accept, receive, collect, store, treat, transfer, sell, acquire, handle, apply, process or dispose of natural gas waste or oil waste or waste from hydraulic fracturing, including, but not limited to, the discharge of wastewaters into or from a pollution abatement facility or the introduction of natural gas waste or oil waste into any solid waste management facility within or operated by the state.

(c) No person shall collect or transport waste from hydraulic fracturing for receipt, acceptance or transfer in this state.

(d) No person may sell, offer for sale, offer, barter, manufacture, distribute or use any product for anti-icing, de-icing, pre-wetting or dust suppression that is derived from or that contains natural gas waste, oil waste or waste from hydraulic fracturing.

(e) In implementing the provisions of this section, the commissioner shall request of any person information, including, but not limited to, whether and to what extent an anti-­icing, de-icing, pre-wetting or dust suppression product is or may be derived from or contain natural gas waste, oil waste or wastes from hydraulic fracturing, where the materials used to manufacture any such product were obtained, and the chemical composition of such product or waste from hydraulic fracturing. If any person fails to provide the information requested by the commissioner pursuant to this subsection, such failure shall provide a basis for the commissioner to prohibit the sale, offering for sale, bartering, manufacturing, distribution or use of such anti-icing, de-icing, pre-wetting or dust suppression product.

(f) Any information acquired by the commissioner under this section shall be subject to disclosure in accordance with the provisions of chapter 14.

(g) The commissioner may approve, in writing, not more than three requests to allow a person, who the commissioner determines to be professionally qualified, to treat natural gas waste, oil waste or waste from hydraulic fracturing, provided such treatment is solely for the purpose of conducting research to determine whether such waste can be treated to make such waste suitable for use or reuse. The commissioner shall prescribe the form to be used for submitting any such request, including any information that the commissioner deems necessary for evaluating any such request. In approving any such request, the commissioner shall prescribe any conditions or requirements the commissioner deems necessary to prevent pollution to the air, land or waters of the state or to protect human health or the environment and shall include requirements regarding the disposal of any waste from any such research. No person whose request is approved pursuant to this section shall: (1) Apply for or obtain more than three such approvals pursuant to this subsection, and (2) treat more than three hundred thirty gallons of natural gas waste or oil waste or waste from hydraulic fracturing in accordance with this subsection, regardless of the number of approvals issued to such person. The commissioner may authorize a single treatment in excess of such gallon limitation by one person provided such authorization allows for the treatment of not more than five hundred gallons of natural gas waste or oil waste or waste from hydraulic fracturing. For the purposes of this subsection, all natural gas waste or oil waste or wastes from hydraulic fracturing shall be considered to be hazardous waste, as defined in section 22a-448, regardless of the state's incorporation by reference of 40 CFR 261.4(b)(5). Prior to approving any such research request, the Commissioner of Energy and Environmental Protection shall adopt regulations, in accordance with the provisions of chapter 54, including approval of such regulations by the standing legislative regulation review committee, to: (A) Eliminate the exemption in the state's hazardous waste management regulations, adopted pursuant to subsection (c) of section 22a-449 for the wastes identified in 40 CFR 261.4(b)(5) and to provide that such wastes shall be subject to the state's hazardous waste management regulations, as applicable, as set forth in sections 22a-449(c)-100 to 22a-449(c)-119, inclusive, and section 22a-449(c)-11 of the regulations of Connecticut state agencies, (B) ensure that any radioactive materials that may be present in natural gas waste, oil waste or wastes from hydraulic fracturing do not create or will not reasonably be expected to create a source of pollution to the air, land or waters of the state and do not otherwise pose a threat to the human health or the environment of this state, (C) require disclosure of the composition of natural gas waste, oil waste or the waste from hydraulic fracturing, and (D) provide for the maintenance of records concerning the origins and all intermediate and final delivery points of natural gas waste, oil waste or such wastes from hydraulic fracturing.

(h) Any person exploring for oil or gas shall register with the Commissioner of Energy and Environmental Protection on a form prescribed by him. The commissioner shall adopt regulations in accordance with the provisions of chapter 54 setting forth (1) standards for oil and gas exploration and production wells, including, but not limited to, standards for the abandonment of exploration and production activities, and (2) the amount of a fee to be paid by registrants which shall be sufficient to pay the cost of administering the registration program.

(i) The provisions of this section shall be construed to preempt any municipal ordinance or act concerning the acceptance, receipt, collection, storage, treatment, transfer, sale, acquisition, handling, application, processing or disposal of natural gas waste or oil waste or waste from hydraulic fracturing, including, but not limited to, the discharge of wastewaters into or from a pollution abatement facility.

(P.A. 85-88, S. 1, 3; P.A. 11-80, S. 1; P.A. 14-200, S. 1; P.A. 19-112, S. 1.)

History: Pursuant to P.A. 11-80, “Commissioner of Environmental Protection” was changed editorially by the Revisors to “Commissioner of Energy and Environmental Protection”, effective July 1, 2011; P.A. 14-200 designated existing provision re oil and gas exploration as Subsec. (h) and made a technical change therein, added Subsec. (a) re definitions, added Subsec. (b) re prohibition on accepting, receiving, collecting, storing, treating, transferring or disposing of waste from hydraulic fracturing until commissioner adopts regulations, added Subsec. (c) re permit to collect or transport waste after adoption of regulations, added Subsec. (d) re prohibition on selling, offering, bartering, manufacturing, distributing or using product for anti-icing, de-icing, pre-wetting or dust suppression that is derived from hydraulic fracturing waste until commissioner adopts regulations, added Subsec. (e) re authority of commissioner to request information concerning composition and origin of products derived from hydraulic fracturing waste, added Subsec. (f) re disclosure of information obtained by commissioner and added Subsec. (g) re commissioner's authority to approve 3 requests for treatment of hydraulic fracturing waste, effective July 1, 2014; P.A. 19-112 amended Subsec. (a) by redefining “hydraulic fracturing” in Subdiv. (4), redefining “waste from hydraulic fracturing” in Subdiv. (10), adding Subdiv. (11) defining “natural gas extraction activities”, adding Subdiv. (12) defining “oil extraction activities”, adding Subdiv. (13) defining “natural gas waste”, adding Subdiv. (14) defining “oil waste”, and adding Subdiv. (15) defining “apply”, substantially amended Subsec. (b) including by adding “sell, acquire, handle, apply, process”, adding “natural gas waste or oil waste or”, deleting provision re adoption of regulations, and adding provision re introduction of natural gas waste or oil waste into solid waste management facility, amended Subsec. (c) by deleting provisions re adoption of regulations and permit, amended Subsec. (d) by adding “natural gas waste, oil waste or”, and deleting provision re adoption of regulations, amended Subsec. (e) by adding “natural gas waste, oil waste or” and deleting provision re adoption of regulations, amended Subsec. (g) by adding “natural gas waste, oil waste or”, deleting provisions re adoption of regulations, adding new provisions re adoption of regulations, amended Subsec. (h) by deleting provision re adoption of regulations, added Subsec. (i) re preemption of municipal ordinance or act, and made technical changes, effective July 8, 2019.

Sec. 22a-478. Eligible water quality projects. Eligible drinking water projects. Project grants. Grant account loans. (a) The commissioner shall maintain a priority list of eligible water quality projects and shall establish a system setting the priority for making project grants, grant account loans and project loans. In establishing such priority list and ranking system, the commissioner shall consider all factors he deems relevant, including but not limited to the following: (1) The public health and safety; (2) protection of environmental resources; (3) population affected; (4) attainment of state water quality goals and standards; (5) consistency with the state plan of conservation and development; (6) state and federal regulations; (7) the formation in municipalities of local housing partnerships pursuant to the provisions of section 8-336f; and (8) the necessity and feasibility of implementing measures designed to mitigate the impact of a rise in sea level over the projected life span of such project. The priority list of eligible water quality projects shall include a description of each project and its purpose, impact, cost and construction schedule, and an explanation of the manner in which priorities were established. The commissioner shall adopt an interim priority list of eligible water quality projects for the purpose of making project grants, grant account loans and project loans prior to adoption of final regulations, which priority list shall be the priority list currently in effect under subsection (c) of section 22a-439.

(b) In each fiscal year the commissioner may make project grants, grant account loans and project loans to municipalities in the order of the priority list of eligible water quality projects to the extent of moneys available therefor in the appropriate accounts of the Clean Water Fund. Each municipality undertaking an eligible water quality project may apply for and receive a project grant and loan or project grants and loans in an amount equal to one hundred per cent of the eligible water quality project costs.

(c) The funding of an eligible water quality project shall be pursuant to a project funding agreement between the state, acting by and through the commissioner, and the municipality undertaking such project and shall be evidenced by a project fund obligation or grant account loan obligation, or both, or an interim funding obligation of such municipality issued in accordance with section 22a-479. A project funding agreement shall be in a form prescribed by the commissioner. Eligible water quality projects shall be funded as follows:

(1) A nonpoint source pollution abatement project shall receive a project grant of ­seventy-five per cent of the cost of the project determined to be eligible by the commissioner.

(2) A combined sewer project shall receive (A) a project grant of fifty per cent of the cost of the project, and (B) a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs.

(3) A construction contract eligible for financing awarded by a municipality on or after July 1, 2012, as a project undertaken for nutrient removal shall receive a project grant of thirty per cent of the cost of the project associated with nutrient removal, a twenty per cent grant for the balance of the cost of the project not related to nutrient removal, and a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs. Nutrient removal projects under design or construction on July 1, 2012, and projects that have been constructed but have not received permanent, Clean Water Fund financing, on July 1, 2012, shall be eligible to receive a project grant of thirty per cent of the cost of the project associated with nutrient removal, a twenty per cent grant for the balance of the cost of the project not related to nutrient removal, and a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs.

(4) If supplemental federal grant funds are available for Clean Water Fund projects specifically related to the clean-up of Long Island Sound that are funded on or after July 1, 2012, a distressed municipality, as defined in section 32-9p, may receive a combination of state and federal grants in an amount not to exceed fifty per cent of the cost of the project associated with nutrient removal, a twenty per cent grant for the balance of the cost of the project not related to nutrient removal, and a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the allowable water quality project costs.

(5) A municipality with a water pollution control project, the construction of which began on or after July 1, 2003, which has (A) a population of five thousand or less, or (B) a population of greater than five thousand which has a discrete area containing a population of less than five thousand that is not contiguous with the existing sewerage system, shall be eligible to receive a grant in the amount of twenty-five per cent of the design and construction phase of eligible project costs, and a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs.

(6) Any contract entered into by a municipality prior to, on or after May 26, 2016, but before July 1, 2019, that is eligible for financing as a project undertaken for phosphorus removal to at or below thirty-one one hundredths milligrams per liter, provided such amount is specified as the average monthly effluent total phosphorous limit in a discharge permit issued to such municipality by the commissioner pursuant to section 22a-430, shall receive (A) a project grant of fifty per cent of the cost of the project associated with such phosphorus removal, (B) except as provided in subdivision (3) of this subsection, a twenty per cent grant for the balance of the cost of the project, and (C) a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs, provided nothing in this subdivision shall affect any requirement or schedule in any discharge permit issued by the commissioner pursuant to said section.

(7) A municipality with a 2012 population of not less than forty thousand but not more than forty-two thousand with a municipal sewerage system that provides a regional sewerage treatment capacity to not less than five abutting communities, each with 2012 populations of less than five thousand, shall receive funding levels consistent with subdivisions (1) to (6), inclusive, of this subsection plus an additional five per cent for the design and construction phase costs of an eligible water quality project and a loan for the remainder of the costs of such eligible water quality project, provided such loan shall not exceed one hundred per cent of the costs of such eligible water project.

(8) Any other eligible water quality project shall receive (A) a project grant of twenty per cent of the eligible cost, and (B) a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible project cost.

(9) Project agreements to fund eligible project costs with grants from the Clean Water Fund that were executed during or after the fiscal year beginning July 1, 2003, shall not be reduced according to the provisions of the regulations adopted under section 22a-482.

(10) On or after July 1, 2002, an eligible water quality project that exclusively addresses sewer collection and conveyance system improvements may receive a loan for one hundred per cent of the eligible costs provided such project does not receive a project grant. Any such sewer collection and conveyance system improvement project shall be rated, ranked, and funded separately from other water pollution control projects and shall be considered only if it is highly consistent with the state's conservation and development plan, or is primarily needed as the most cost effective solution to an existing area-wide pollution problem and incorporates minimal capacity for growth.

(11) All loans made in accordance with the provisions of this section for an eligible water quality project shall bear an interest rate of two per cent per annum. The commissioner may allow any project fund obligation, grant account loan obligation or interim funding obligation for an eligible water quality project to be repaid by a borrowing municipality prior to maturity without penalty.

(d) Each project loan and grant account loan for an eligible water quality project shall be made pursuant to a project funding agreement between the state, acting by and through the commissioner, and such municipality, and each project loan for an eligible water quality project shall be evidenced by a project loan obligation, each grant account loan for an eligible water quality project shall be evidenced by a grant account loan obligation, or either may be evidenced by an interim funding obligation of such municipality issued in accordance with sections 22a-475 to 22a-483, inclusive. Except as otherwise provided in said sections, each project funding agreement shall contain such terms and conditions, including provisions for default which shall be enforceable against a municipality, as shall be approved by the commissioner. Each project loan obligation, grant account loan obligation or interim funding obligation issued pursuant to a project funding agreement for an eligible water quality project shall bear interest at a rate of two per cent per annum. Except as otherwise provided in sections 22a-475 to 22a-483, inclusive, each project loan obligation, grant account loan obligation and interim funding obligation shall be issued in accordance with the terms and conditions set forth in the project funding agreement. Notwithstanding any other provision of the general statutes, public act or special act to the contrary, each project loan obligation and grant account loan obligation for an eligible water quality project shall mature no later than twenty years from the date of completion of the construction of the project and shall be paid in monthly installments of principal and interest or in monthly installments of principal unless a finding is otherwise made by the Treasurer of the state requiring a different payment schedule. Interest on each project loan obligation and grant account loan obligation for an eligible water quality project shall be payable monthly unless a finding is otherwise made by the Treasurer of the state requiring a different payment schedule. Principal and interest on interim funding obligations issued under a project funding agreement for an eligible water quality project shall be payable at such time or times as provided in the project funding agreement, not exceeding six months after the date of completion of the planning and design phase or the construction phase, as applicable, of the eligible water quality project, as determined by the commissioner, and may be paid from the proceeds of a renewal note or notes or from the proceeds of a project loan obligation or grant account loan obligation. The commissioner may allow any project loan obligation, grant account loan obligation or interim funding obligation for an eligible water quality project to be repaid by the borrowing municipality prior to maturity without penalty.

(e) (1) The commissioner may make a project grant or a grant account loan or both to a municipality pursuant to a project funding agreement for the planning and design phase of an eligible water quality project. Principal and interest on a grant account loan for the planning and design phases of an eligible water quality project may be paid from and included in the principal amount of a loan for the construction phase of an eligible water quality project.

(2) In lieu of a grant and loan pursuant to subsection (b) of this section, the commissioner, upon written request by a municipality, may make a project grant to such municipality in the amount of fifty-five per cent of the cost approved by the commissioner for the planning phase of an eligible water quality project.

(3) If supplemental federal grant funds are available for Clean Water Fund projects specifically related to the clean-up of Long Island Sound that are funded on or after July 1, 2003, a distressed municipality, as defined in section 32-9p, may receive a combination of state and federal grants in an amount not to exceed one hundred per cent of the cost, approved by the commissioner, for the planning phase of an eligible water quality project for nitrogen removal.

(f) A project grant, a grant account loan and a project loan for an eligible water quality project shall not be made to a municipality unless:

(1) In the case of a project grant, grant account loan and project loan for the construction phase, final plans and specifications for such project are approved by the commissioner;

(2) Each municipality undertaking such project provides assurances satisfactory to the commissioner that the municipality shall undertake and complete such project with due diligence and, in the case of a project loan for the construction phase, that it shall own such project and shall operate and maintain the eligible water quality project for a period and in a manner satisfactory to the commissioner after completion of such project;

(3) Each municipality undertaking such project has filed with the commissioner all applications and other documents prescribed by the commissioner within time periods prescribed by the commissioner;

(4) Each municipality undertaking such project has established separate accounts for the receipt and disbursement of the proceeds of such project grant, grant account loan and project loan and has agreed to maintain project accounts in accordance with generally accepted government accounting standards;

(5) In any case in which an eligible water quality project shall be owned or maintained by more than one municipality, the commissioner has received evidence satisfactory to the commissioner that all such municipalities are legally required to complete their respective portions of such project;

(6) Each municipality undertaking such project has agreed to comply with such audit requirements as may be imposed by the commissioner;

(7) In the case of a project grant, grant account loan and project loan for the construction phase, each municipality shall assure the commissioner that it has adequate legal, institutional, managerial and financial capability to construct and operate the pollution abatement facility for the design life of the facility; and

(8) In the case of a project grant, grant account loan and project loan for the construction phase awarded after July 1, 1991, each municipality shall demonstrate, to the satisfaction of the commissioner, that it has implemented an adequate operation and maintenance program for the municipal sewerage system for the design life of the facility.

(g) Notwithstanding any provision of sections 22a-475 to 22a-483, inclusive, to the contrary, the commissioner may make a project grant or project grants and a grant account loan or loans in accordance with the provisions of subsection (c) of this section with respect to an eligible water quality project without regard to the priority list of eligible water quality projects if a public emergency exists which requires that the eligible water quality project be undertaken to protect the public health and safety or the natural and environmental resources of the state.

(h) The Department of Public Health shall establish and maintain a priority list of eligible drinking water projects and shall establish a system setting the priority for making project loans to eligible public water systems. In establishing such priority list and ranking system, the Commissioner of Public Health shall consider all factors which he deems relevant, including but not limited to the following: (1) The public health and safety; (2) protection of environmental resources; (3) population affected; (4) risk to human health; (5) public water systems most in need on a per household basis according to applicable state affordability criteria; (6) compliance with the applicable requirements of the federal Safe Drinking Water Act and other related federal acts; (7) applicable state and federal regulations. The priority list of eligible drinking water projects shall include a description of each project and its purpose, impact, cost and construction schedule, and an explanation of the manner in which priorities were established. The Commissioner of Public Health shall adopt an interim priority list of eligible drinking water projects for the purpose of making project loans prior to adoption of final regulations, and in so doing may utilize existing rules and regulations of the department relating to the program. To the extent required by applicable federal law, the Department of Public Health shall prepare any required intended use plan with respect to eligible drinking water projects; (8) consistency with the plan of conservation and development; (9) consistency with the policies delineated in section 22a-380; and (10) consistency with the coordinated water system plan in accordance with subsection (f) of section 25-33d.

(i) In each fiscal year the Commissioner of Public Health may make project loans to recipients in the order of the priority list of eligible drinking water projects to the extent of moneys available therefor in the appropriate accounts of the Clean Water Fund. Each recipient undertaking an eligible drinking water project may apply for and receive a project loan or loans in an amount equal to one hundred per cent of the eligible project costs.

(j) The funding of an eligible drinking water project shall be pursuant to a project funding agreement between the state, acting by and through the Commissioner of Public Health, and the recipient undertaking such project and shall be evidenced by a project fund obligation or an interim funding obligation of such recipient issued in accordance with section 22a-479. A project funding agreement shall be in a form prescribed by the Commissioner of Public Health. Any eligible drinking water project shall receive a project loan for the costs of the project. All loans made in accordance with the provisions of this section for an eligible drinking water project shall bear an interest rate not exceeding one-half the rate of the average net interest cost as determined by the last previous similar bond issue by the state of Connecticut as determined by the State Bond Commission in accordance with subsection (t) of section 3-20. The Commissioner of Public Health may allow any project fund obligation or interim funding obligation for an eligible drinking water project to be repaid by a borrowing recipient prior to maturity without penalty.

(k) Each project loan for an eligible drinking water project shall be made pursuant to a project funding agreement between the state, acting by and through the Commissioner of Public Health, and such recipient, and each project loan for an eligible drinking water project shall be evidenced by a project loan obligation or by an interim funding obligation of such recipient issued in accordance with sections 22a-475 to 22a-483, inclusive. Except as otherwise provided in said sections 22a-475 to 22a-483, inclusive, each project funding agreement shall contain such terms and conditions, including provisions for default which shall be enforceable against a recipient, as shall be approved by the Commissioner of Public Health. Each project loan obligation or interim funding obligation issued pursuant to a project funding agreement for an eligible drinking water project shall bear an interest rate not exceeding one-half the rate of the average net interest cost as determined by the last previous similar bond issue by the state of Connecticut as determined by the State Bond Commission in accordance with subsection (t) of section 3-20. Except as otherwise provided in said sections 22a-475 to 22a-483, inclusive, each project loan obligation and interim funding obligation shall be issued in accordance with the terms and conditions set forth in the project funding agreement. Notwithstanding any other provision of the general statutes, public act or special act to the contrary, each project loan obligation for an eligible drinking water project shall mature no later than twenty years from the date of completion of the construction of the project and shall be paid in monthly installments of principal and interest or in monthly installments of principal unless a finding is otherwise made by the State Treasurer requiring a different payment schedule. Interest on each project loan obligation for an eligible drinking water project shall be payable monthly unless a finding is otherwise made by the State Treasurer requiring a different payment schedule. Principal and interest on interim funding obligations issued under a project funding agreement for an eligible drinking water project shall be payable at such time or times as provided in the project funding agreement, not exceeding six months after the date of completion of the planning and design phase or the construction phase, as applicable, of the eligible drinking water project, as determined by the Commissioner of Public Health, and may be paid from the proceeds of a renewal note or notes or from the proceeds of a project loan obligation. The Commissioner of Public Health may allow any project loan obligation or interim funding obligation for an eligible drinking water project to be repaid by the borrowing recipient prior to maturity without penalty.

(l) The Commissioner of Public Health may make a project loan to a recipient pursuant to a project funding agreement for an eligible drinking water project for the planning and design phase of an eligible project, to the extent provided by the federal Safe Drinking Water Act, as amended. Principal and interest on a project loan for the planning and design phases of an eligible drinking water project may be paid from and included in the principal amount of a loan for the construction phase of an eligible drinking water project.

(m) A project loan for an eligible drinking water project shall not be made to a recipient unless: (1) In the case of a project loan for the construction phase, final plans and specifications for such project are approved by the Commissioner of Public Health, and when the recipient is a water company, as defined in section 16-1, with the concurrence of the Public Utilities Regulatory Authority, and with the approval of the Commissioner of Public Health for consistency with financial requirements of the general statutes, regulations and resolutions; (2) each recipient undertaking such project provides assurances satisfactory to the Commissioner of Public Health that the recipient shall undertake and complete such project with due diligence and, in the case of a project loan for the construction phase, that it shall own such project and shall operate and maintain the eligible drinking water project for a period and in a manner satisfactory to the Department of Public Health after completion of such project; (3) each recipient undertaking such project has filed with the Commissioner of Public Health all applications and other documents prescribed by the Public Utilities Regulatory Authority and the Commissioner of Public Health within time periods prescribed by the Commissioner of Public Health; (4) each recipient undertaking such project has established separate accounts for the receipt and disbursement of the proceeds of such project loan and has agreed to maintain project accounts in accordance with generally accepted government accounting standards or uniform system of accounts, as applicable; (5) in any case in which an eligible drinking water project shall be owned or maintained by more than one recipient, the Commissioner of Public Health has received evidence satisfactory to him that all such recipients are legally required to complete their respective portions of such project; (6) each recipient undertaking such project has agreed to comply with such audit requirements as may be imposed by the Commissioner of Public Health; and (7) in the case of a project loan for the construction phase, each recipient shall assure the Public Utilities Regulatory Authority, as required, and the Commissioner of Public Health that it has adequate legal, institutional, technical, managerial and financial capability to ensure compliance with the requirements of applicable federal law, except to the extent otherwise permitted by federal law.

(n) Notwithstanding any provision of sections 22a-475 to 22a-483, inclusive, the Commissioner of Public Health may make a project loan or loans in accordance with the provisions of subsection (j) of this section with respect to an eligible drinking water project without regard to the priority list of eligible drinking water projects if an emergency exists, including, but not limited to, an unanticipated infrastructure failure, a contamination of water or a shortage of water, which requires that the eligible drinking water project be immediately undertaken to protect the public health and safety.

(o) The commissioner shall prepare an annual report to the Governor within ninety days after the completion of each fiscal year which includes a list of project funding agreements entered into during the fiscal year then ended, the estimated year that funding will be available for specific projects listed on each priority list of eligible projects and a financial report on the condition of the Clean Water Fund for the fiscal year then ended, which shall include a certification by the commissioner of any amounts to become available for payment of debt service or for the purchase or redemption of bonds during the next succeeding fiscal year.

(P.A. 86-420, S. 4, 12; P.A. 87-571, S. 4, 7; P.A. 88-305, S. 3, 4; P.A. 89-377, S. 4, 8; P.A. 90-301, S. 3, 8; June Sp. Sess. P.A. 90-1, S. 4, 10; P.A. 91-246, S. 2; P.A. 94-108, S. 2; P.A. 96-181, S. 113, 121; P.A. 99-241, S. 13, 66; May 9 Sp. Sess. P.A. 02-5, S. 11: P.A. 03-218, S. 1, 2; P.A. 04-185, S. 1; P.A. 05-288, S. 111; P.A. 10-117, S. 37; P.A. 11-80, S. 1; P.A. 12-155, S. 3.; P.A. 13-15, S. 1; 13-239, S. 64; P.A. 14-13, S. 1; 14-217, S. 86; P.A. 16-57, S. 1; P.A. 19-118, S. 2.)

History: P.A. 87-571 amended Subsec. (b) to provide for cost determination based on cost used by the federal Environmental Protection Agency to make water pollution control construction grants and made other technical changes; P.A. 88-305 added Subsec. (a)(7) re formation of local housing partnerships; P.A. 89-377 amended Subsec. (d) to provide for monthly, rather than annual, payment of principal and interest, unless the treasurer determines otherwise; P.A. 90-301 added Subsec. (f)(7) and (8) re grants and loans for construction phase and re project grants; June Sp. Sess. P.A. 90-1 amended Subsec. (d) to provide that the maturation date of loan obligations shall be determined from the date of completion of construction rather than from issuance of the loan obligation; P.A. 91-246 amended Subsec. (c) to allow certain nonpoint source pollution abatement projects to receive grants of up to 75% of the cost of such projects approved by the commissioner; P.A. 94-108 amended Subsec. (e) to add new Subdiv. (2) re optional project grant for planning for eligible water quality projects; P.A. 96-181 added new Subsecs. (h) to (n), inclusive, re public drinking water projects, relettered existing Subsec. (h) as Subsec. (o) and made conforming changes, effective July 1, 1996; P.A. 99-241 amended Subsec. (c) to provide 30% grants for certain nitrogen removal projects, effective July 1, 1999 (Revisor's note: In codifying P.A. 99-241 the Revisors editorially changed the phrase “... but have nor received payment, ...” to “but have not received payment, ...” for accuracy); May 9 Sp. Sess. P.A. 02-5 amended Subsec. (c) to add provisions re loans for projects that exclusively address sewer collection and conveyance system improvements and to make a technical change, effective July 1, 2002; P.A. 03-218 amended Subsec. (c) by designating existing provisions re amounts, etc. as Subdivs. (1) to (3), inclusive, (6), and (8) to (10), inclusive, deleting language in Subdiv. (2) and (6) re the cost the Environmental Protection Agency uses in making grants, adding provision in Subdiv. (3) re 20% grant for the balance of the cost of the project not related to nitrogen removal for projects prior to and on or after July 1, 1999, and provision re loan for the remainder of the costs, not exceeding 100% of the costs for projects prior to July 1, 1999, adding new Subdiv. (4) re projects related to the clean-up of Long Island Sound in a distressed municipality, adding new Subdiv. (5) re project in a municipality with a population of 5,000 or less or such a population in a discrete area, replacing “cost” with “eligible cost” in Subdiv. (6)(A), adding new Subdiv. (7) re project agreements executed during or after the 2003 fiscal year, and amending Subdiv. (9) to replace “and shall” with “provided such project does”, and added new Subsec. (e)(3) re supplemental federal grant funds for Long Island Sound projects in a distressed municipality, effective July 1, 2003; P.A. 04-185 deleted Subsec. (c)(8) re loan for 100% of the eligible costs on or after July 1, 2006, and redesignated existing Subdivs. (9) and (10) as new Subdivs. (8) and (9); P.A. 05-288 made technical changes in Subsec. (c)(8), effective July 13, 2005; P.A. 10-117 amended Subsec. (h)(7) by deleting “Commissioner of Environmental Protection”, amended Subsec. (i) by replacing “commissioner” with “Commissioner of Public Health”, amended Subsec. (j) by deleting “Commissioner of Environmental Protection” and by replacing “commissioner” with “Commissioner of Public Health”, amended Subsec. (k) by deleting “Commissioner of Environmental Protection”, by replacing “commissioner” with “Commissioner of Public Health” and by deleting “with the concurrence of the Commissioner of Public Health”, amended Subsec. (l) by deleting “Commissioner of Environmental Protection”, amended Subsec. (m) by replacing “Commissioner of Environmental Protection” with “Commissioner of Public Health” in Subdiv. (1), by deleting “Commissioner of Environmental Protection” in Subdivs. (2), (3) and (7) and by replacing “commissioner” with “Commissioner of Environmental Protection” in Subdivs. (5) and (6) and amended Subsec. (n) by deleting “with the concurrence of the Commissioner of Environmental Protection”; pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority” in Subsec. (m), effective July 1, 2011; P.A. 12-155 amended Subsec. (c) by changing “nitrogen removal” to “nutrient removal” in Subdivs. (3) and (4), changing “July 1, 1999” to “July 1, 2012” in Subdiv. (3) and changing “July 1, 2003” to “July 1, 2012” in Subdiv. (4), effective June 15, 2012; P.A. 13-15 amended Subsec. (a) to add Subdiv. (8) re necessity and feasibility of implementing measures designed to mitigate the impact of a rise in sea level over the projected life span of the project; P.A. 13-239 amended Subsec. (c) by adding new Subdiv. (6) re financing for phosphorus removal and redesignating existing Subdivs. (6) to (9) as Subdivs. (7) to (10), effective July 1, 2013; P.A. 14-13 amended Subsec. (c)(6) by replacing reference to first 3 construction contracts with reference to any contract and making technical and conforming changes, effective May 12, 2014; P.A. 14-217 amended Subsec. (c) by adding Subdiv. (7) re funding for municipality with 2012 population of not less than 40,000 but not more than 42,000 with a municipal sewerage system that provides a regional sewerage treatment capacity to not less than 5 abutting communities, each with 2012 populations of less than 5,000 and by redesignating existing Subdivs. (7) to (10) as Subdivs. (8) to (11), effective July 1, 2014; P.A. 16-57 amended Subsec. (c)(6) by replacing “on or before July 1, 2018” with “prior to, on or after May 26, 2016, but before July 1, 2019”, replacing “two-tenths milligrams per liter effluent discharge” with “thirty-one one hundredths milligrams per liter”, adding provision re amount specified as average monthly effluent total phosphorus limit in permit issued to municipality by commissioner pursuant to Sec. 22a-430, and replacing provision re funding priority to be given by commissioner with provision re nothing in Subdiv. to effect any requirement or schedule in any discharge permit issued by commissioner, effective May 26, 2016; P.A. 19-118 amended Subsec. (n) by replacing “if a public drinking water supply emergency exists, pursuant to section 25-32b” with “if an emergency exists, including, but not limited to, an unanticipated infrastructure failure, a contamination of water or a shortage of water”, adding “immediately” re undertaking project to protect public health and safety, and making a technical change, effective July 1, 2019.

Sec. 22a-483f. Public water system improvement program. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate twenty million dollars.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Public Health for the purpose of providing grants-in-aid, which may be provided in the form of principal forgiveness, to eligible public water systems for eligible drinking water projects for which a project funding agreement is made on or after July 1, 2014, between the Commissioner of Public Health and the eligible public water system pursuant to sections 22a-475 to 22a-483, inclusive, under the public water system improvement program established in subsection (c) of this section.

(c) (1) For purposes of the public water system improvement program established pursuant to this section:

(A) “Eligible drinking water project” has the same meaning as provided in section 22a-475;

(B) “Eligible project costs” has the same meaning as provided in section 22a-475;

(C) “Eligible public water system” has the same meaning as provided in section 22a-475; and

(D) “Public service company” has the same meaning as provided in section 16-1.

(2) All provisions applicable to drinking water projects under sections 22a-475 to 22a-483, inclusive, shall be applicable to the public water system improvement program, including eligibility of public water systems, eligible project costs, application procedures for financial assistance, and procedures for approving and awarding such financial assistance. The department shall comply with all allocation goals for smaller eligible public water systems and with the priorities for awarding financial assistance, as provided in sections 22a-475 to 22a-483, inclusive.

(3) An eligible public water system applying for financial assistance pursuant to this section shall submit to the department, along with the application submitted under sections 22a-475 to 22a-483, inclusive, a fiscal and asset management plan. The department shall provide financial assistance as follows:

(A) An eligible public water system that serves ten thousand or fewer persons may receive financial assistance pursuant to this section for up to fifty per cent of eligible project costs;

(B) An eligible public water system that serves more than ten thousand persons may receive financial assistance pursuant to this section for up to thirty per cent of eligible project costs;

(C) An eligible public water system that is a for-profit company, other than a for-profit company that is a public service company, may not receive additional financial assistance pursuant to this section; and

(D) An eligible public water system that is a public service company may not receive financial assistance pursuant to this section unless (i) such financial assistance is for eligible project costs of an eligible drinking water project, (ii) such financial assistance is used by the public service company for such eligible drinking water project, and (iii) the department has consulted with the Public Utilities Regulatory Authority regarding the public service company's receipt of such financial assistance.

(d) All provisions of section 3-20, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

(P.A. 14-98, S. 46; May Sp. Sess. P.A. 16-4, S. 253; P.A. 19-194, S. 1.)

History: P.A. 14-98 effective July 1, 2014; May Sp. Sess. P.A. 16-4 amended Subsec. (a) by decreasing aggregate authorization from $50,000,000 to $20,000,000, effective July 1, 2016; P.A. 19-194 amended Subsec. (c)(1) by redefining “eligible public water system” in Subpara. (C), and adding Subpara. (D) defining “public service company”, amended Subsec. (c)(3) by adding “other than a for-profit company that is a public service company”, and adding Subpara. (D) re eligible public water system that is a public service company, and made technical changes.