2019 -- H 6242

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LC002872

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO WATERS AND NAVIGATION - RHODE ISLAND INFRASTRUCTURE

BANK

     

     Introduced By: Representatives Ucci, Kennedy, Craven, McKiernan, and Place

     Date Introduced: June 22, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 46-12.2-2 of the General Laws in Chapter 46-12.2 entitled "Rhode

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Island Infrastructure Bank" is hereby amended to read as follows:

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     46-12.2-2. Definitions.

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     As used in this chapter, unless the context clearly indicates otherwise, the following

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words and phrases shall have the following meanings:

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     (1) "Agency" means the Rhode Island clean water finance agency, and, effective

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September 1, 2015, and thereafter, shall mean the Rhode Island infrastructure bank;

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     (2) "Approved project" means any project or portion thereof that has been issued a

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certificate of approval by the department for financial assistance from the agency, and also

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includes any project approved for financial assistance from the agency in accordance with state

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law, and, furthermore, shall include water pollution abatement projects funded outside of the

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water pollution control revolving fund, the Rhode Island water pollution control revolving fund,

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or the local interest subsidy trust fund, without the requirement of the issuance of a certificate of

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approval; and, furthermore, shall include resiliency related infrastructure projects, and projects

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which may, subject to compliance with all state and federal requirements, include state and

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federal infrastructure located within the state of Rhode Island;

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     (3) "Board" means board of directors of the agency;

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     (4) "Bond act" means any general or special law authorizing a local governmental unit to

 

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incur indebtedness for all or any part of the cost of projects coming within the scope of a water

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pollution abatement project, or for other projects related to this chapter, including but not limited

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to, § 45-12-2;

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     (5) "Bonds" means bonds, notes, or other evidence of indebtedness of the agency;

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     (6) "Certificate of approval" means the certificate of approval contemplated by § 46-12.2-

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8;

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     (7) "Chief executive officer" means the mayor in any city, the president of the town

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council in any town, and the executive director of any authority or commission, unless some other

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officer or body is designated to perform the functions of a chief executive officer under any bond

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act or under the provisions of a local charter or other law;

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     (8) "Clean Water Act" or "act" means the Federal Water Pollution Control Act, act of

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June 30, 1948, ch. 758, as added Oct. 18, 1972, Pub. L. No. 92-500, 86 Stat. 896, as added Dec.

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27, 1977, Pub. L. No. 95-217, 91 Stat. 1566 (codified at 33 U.S.C. § 1251 et seq., as amended and

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as hereafter amended from time to time);

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     (9) "Corporation" means any corporate person, including, but not limited to: corporations,

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societies, associations, limited liability companies, partnerships and sole proprietorships;

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     (10) "Cost" as applied to any approved project, means any or all costs, whenever

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incurred, approved by the agency in accordance with § 46-12.2-8, of planning, designing,

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acquiring, constructing, and carrying out and placing the project in operation, including, without

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limiting the generality of the foregoing, amounts for the following: planning, design, acquisition,

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construction, expansion, improvement, and rehabilitation of facilities; acquisition of real or

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personal property; demolitions and relocations; labor, materials, machinery and equipment;

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services of architects, engineers, and environmental and financial experts and other consultants;

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feasibility studies, plans, specifications, and surveys; interest prior to and during the carrying out

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of any project and for a reasonable period thereafter; reserves for debt service or other capital or

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current expenses; costs of issuance of local governmental obligations or non-governmental

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obligations issued to finance the obligations including, without limitation, fees, charges, and

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expenses and costs of the agency relating to the loan evidenced thereby, fees of trustees and other

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depositories, legal and auditing fees, premiums and fees for insurance, letters or lines of credit or

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other credit facilities securing local governmental obligations or non-governmental obligations

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and other costs, fees, and charges in connection with the foregoing; and working capital,

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administrative expenses, legal expenses, and other expenses necessary or incidental to the

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aforesaid, to the financing of a project and to the issuance therefor of local government

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obligations under the provisions of this chapter;

 

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     (11) "Department" means the department of environmental management;

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     (12) "Financial assistance" means any form of financial assistance provided by the

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agency to a local governmental unit, person, or corporation in accordance with this chapter for all

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or any part of the cost of an approved project, including, without limitation: grants, temporary and

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permanent loans, with or without interest, guarantees, insurance, subsidies for the payment of

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debt service on loans, lines of credit, and similar forms of financial assistance; provided,

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however, notwithstanding the foregoing, for purposes of capitalization grant awards made

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available to the agency, pursuant to the American Recovery and Reinvestment Act of 2009 (P.L.

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111-5), or as otherwise required in connection with other capitalization grant awards made

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available to the agency, financial assistance shall also include principal forgiveness and negative

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interest loans;

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     (13) "Fully marketable form" means a local governmental obligation in form satisfactory

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to the agency duly executed and accompanied by an opinion of counsel of recognized standing in

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the field of municipal law whose opinions have been and are accepted by purchasers of like

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obligations to the effect that the obligation is a valid and binding obligation of the local

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governmental unit issuing the obligation, enforceable in accordance with its terms;

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     (14) "General revenues", when used with reference to a local governmental unit, means

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revenues, receipts, assessments, and other moneys of the local governmental unit received from

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or on account of the exercise of its powers and all rights to receive the same, including without

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limitation:

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     (i) Taxes;

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     (ii) Wastewater system revenues;

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     (iii) Assessments upon or payments received from any other local governmental unit that

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is a member or service recipient of the local governmental unit, whether by law, contract, or

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otherwise;

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     (iv) Proceeds of local governmental obligations and loans and grants received by the

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local governmental unit in accordance with this chapter;

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     (v) Investment earnings;

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     (vi) Reserves for debt service or other capital or current expenses;

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     (vii) Receipts from any tax, excise, or fee heretofore or hereafter imposed by any general

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or special law all or a part of the receipts of which are payable or distributable to or for the

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account of the local governmental unit;

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     (viii) Local aid distributions; and

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     (ix) Receipts, distributions, reimbursements, and other assistance received by or for the

 

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account of the local governmental unit from the United States or any agency, department, or

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instrumentality thereof;

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     (15) "Loan" means a loan by the agency to a local governmental unit, or person, or

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corporation for costs of an approved project, including, without limitation, temporary and

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permanent loans, and lines of credit;

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     (16) "Loan agreement" means any agreement entered into by the agency with a local

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governmental unit, person, or corporation pertaining to a loan, other financial assistance, local

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governmental obligations, or non-governmental obligations, including, without limitation: a loan

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agreement, trust agreement, security agreement, reimbursement agreement, guarantee agreement,

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financing lease agreement, appropriation agreement, or similar instrument;

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     (17) "Local aid distributions" means receipts, distributions, reimbursements, and other

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assistance payable by the state to or for the account of a local governmental unit, except such

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receipts, distributions, reimbursements, and other assistance restricted by law to specific

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statutorily defined purposes;

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     (18) "Local governmental obligations" means bonds, notes, financing lease obligations,

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appropriation obligations, and other evidences of indebtedness in fully marketable form issued by

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a local governmental unit to evidence a loan or other financial assistance, from the agency in

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accordance with this chapter or otherwise as provided herein;

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     (19) "Local governmental unit" means any town, city, district, commission, agency,

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authority, board, bodies politic and corporate, public corporation, or other political subdivision or

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instrumentality of the state or of any political subdivision thereof, including the Narragansett Bay

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commission; and, for purposes of dam safety or dam maintenance projects, any person seeking

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financial assistance as a joint applicant with any of the above entities;

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     (20) "Local interest subsidy trust fund" means the local interest subsidy trust fund

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established under § 46-12.2-6;

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     (21) "Non-governmental obligations" means bonds, notes, or other evidences of

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indebtedness in fully marketable form issued by a person or corporation to evidence a loan, or

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other financial assistance, from the agency in accordance with this chapter or otherwise as

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provided herein;

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     (22) "Person" means any natural person;

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     (23) "Priority determination system" means the system by which water pollution

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abatement projects are rated on the basis of environmental benefit and other criteria for funding

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assistance pursuant to rules and regulations promulgated by the department as they may be

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amended from time to time;

 

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     (24) "Projected energy efficiency savings" means, at the time a loan agreement is entered

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into between the agency and a local governmental unit, the savings projected to be derived from

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the implementation of energy efficient and renewable-energy upgrades to public buildings, as

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determined in accordance with the rules and regulations promulgated by the Rhode Island

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infrastructure bank pursuant to this chapter;

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     (25) "Qualified energy conservation bond" or "QECB" means those bonds designated by

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26 U.S.C. § 54D;

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     (26) "Revenues", when used with reference to the agency, means any receipts, fees,

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payments, moneys, revenues, or other payments received or to be received by the agency in the

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exercise of its corporate powers under this chapter, including, without limitation: loan

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repayments, payments on local governmental obligations, non-governmental obligations, grants,

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aid, appropriations, and other assistance from the state, the United States, or any agency,

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department, or instrumentality of either or of a political subdivision thereof, bond proceeds,

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investment earnings, insurance proceeds, amounts in reserves, and other funds and accounts

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established by or pursuant to this chapter or in connection with the issuance of bonds, including,

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without limitation, the water pollution control revolving fund, the Rhode Island water pollution

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control revolving fund, and the local interest subsidy fund, and any other fees, charges or other

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income received or receivable by the agency;

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     (27) "Rhode Island water pollution control revolving fund" means the Rhode Island water

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pollution control revolving fund established pursuant to § 46-12.2-6;

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     (28) "Trust agreement" means a trust agreement, loan agreement, security agreement,

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reimbursement agreement, currency or interest rate exchange agreement, or other security

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instrument, and a resolution, loan order, or other vote authorizing, securing, or otherwise

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providing for the issue of bonds, loans, or local governmental obligations or non-governmental

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obligations;

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     (29) "Wastewater system revenues" means all rates, rents, fee assessments, charges, and

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other receipts derived or to be derived by a local governmental unit from wastewater collection

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and treatment facilities and water pollution abatement projects under its ownership or control, or

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from the services provided thereby, including, without limitation: proceeds of grants, gifts,

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appropriations, and loans, including the proceeds of loans or grants awarded by the agency or the

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department in accordance with this chapter, investment earnings, reserves for capital and current

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expenses, proceeds of insurance or condemnation, and the sale or other disposition of property;

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wastewater system revenues may also include rates, rents, fees, charges, and other receipts

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derived by the local governmental unit from any water supply of distribution facilities or other

 

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revenue producing facilities under its ownership or control; wastewater system revenues shall not

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include any ad valorem taxes levied directly by the local governmental unit on any real and

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personal property;

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     (30) "Water pollution abatement project" or "project" means any project eligible pursuant

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to Title VI of the Clean Water Act including, but not limited to, a wastewater treatment or

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conveyance project that contributes to removal, curtailment, or mitigation of pollution of the

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surface water of the state, and conforms with any applicable comprehensive land use plan which

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has been adopted or any dam safety, removal or maintenance project; it also means a project to

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enhance the waters of the state, which the agency has been authorized by statute to participate in;

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it also means any other project to which the agency has been authorized to provide financial

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assistance;

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     (31) "Water pollution control revolving fund" means the water pollution control

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revolving fund contemplated by title VI of the Water Quality Act and established under § 46-

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12.2-6;

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     (32) "Water Quality Act" means the Water Quality Act of 1987, Pub. L. No. 100-4, 101

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Stat. 7, 33 U.S.C. § 1251 et seq., as amended from time to time.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO WATERS AND NAVIGATION - RHODE ISLAND INFRASTRUCTURE

BANK

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     This act would expand the definition of “approved project” to include resiliency related

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infrastructure projects and projects which may include state and federal infrastructures within the

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state of Rhode Island.

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     This act would take effect upon passage.

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