640.107.  Drinking water revolving fund — loans and grants — funds for training and technical assistance. — 1.  There is hereby established, as a subfund of the water and wastewater fund established in section 644.122, the "Drinking Water Revolving Fund", which shall be maintained and accounted for separately, and which shall consist of moneys from all lawful public and private sources including legislative appropriations, federal capitalization grants, interest on investments and principal and interest payments with respect to loans made from the drinking water revolving fund.  Money in the drinking water revolving fund may be used only for purposes as are authorized in the federal Safe Drinking Water Act, as amended, and the American Recovery and Reinvestment Act of 2009 as enacted by the 111th United States Congress.

  2.  The commission shall, consistent with the requirements of the federal Safe Drinking Water Act and the American Recovery and Reinvestment Act of 2009 for the drinking water revolving fund to become eligible for capitalization grants from the United States Environmental Protection Agency, establish criteria and procedures for the selection of projects and the making of loans or the grant of loan subsidies for disadvantaged communities.

  3.  After providing for review and public comment, and in accordance with the requirements for such plans set forth in the federal Safe Drinking Water Act, the commission shall annually prepare an intended use plan for the funds available in the drinking water revolving fund.

  4.  Consistent with the requirements of the federal Safe Drinking Water Act, and only to the extent funds are available to be obligated for eligible projects of public water systems, in developing its annual intended use plan, the commission shall make available no less than thirty-five percent, but may make available greater than thirty-five percent, of the moneys credited to the drinking water revolving fund solely for project loans and loan subsidies for projects of systems serving fewer than ten thousand people in accordance with the following:

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provided that, in any fiscal year, loan subsidies may not exceed the maximum percentage as specified in the federal Safe Drinking Water Act.  In any fiscal year in which there are insufficient applicants and projects in the population categories listed in this subsection to allocate the percentages of funds specified pursuant to this subsection, any balance of funds otherwise reserved for systems serving fewer than ten thousand people shall be available for obligation to eligible projects from any eligible applicant.  Such uncommitted balances shall be redistributed in accordance with the intended use plan.

  5.  The department shall make available two percent of the moneys from the federal capitalization grants received pursuant to this section for training and technical assistance to public water systems serving fewer than ten thousand people.  Training and technical assistance provided pursuant to this subsection shall be consistent with rules of the commission.

  6.  The state may provide assistance, as funds are available, pursuant to this chapter to any eligible public water system pursuant to the federal Safe Drinking Water Act, as amended, to assist in the construction of public drinking water facilities as authorized by the commission.  Further, the state may provide additional assistance or subsidies to any eligible entity as described in this subsection in the form of principal forgiveness, negative interest loans, grants, or any combination thereof, to the extent allowed by the federal Safe Drinking Water Act or American Recovery and Reinvestment Act of 2009, as enacted by the 111th United States Congress, and within the process provided by the Missouri Constitution and revised statutes of the state of Missouri.