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MASSACHUSETTS CLEAN WATER TRUST

M.G.L. pt. Part I, tit. Title III, ch. c. 29C
in effect

M.G.L. c. 29C, § 1 Definitions

c. 29C, § 1. Definitions Section 1. As used in this chapter, the following words shall have, unless the context clearly indicates otherwise, the following meanings: ''Board'', the board of trustees of the Massachusetts Clean Water Trust. ''Bond act'', any general or special law authorizing a local governmental unit to incur indebtedness for all or any part of the cost of a water pollution abatement project. ''Bonds'', bonds, notes or other evidence of indebtedness of the trust. ''Committed contract assistance'', in any year, the sum of: (i) the amount of contract assistance that the commonwealth has committed to provide during the year with respect to bonds of the trust issued, subsidy funds established and all other board-approved financial assistance established or committed prior to such year; and (ii) the amount of contract assistance that the board determines will be required to be committed during the year in order to provide subsidies or other financial assistance, including, without limitation, with respect to bonds of the trust expected to be issued in such year. ''Cost'', as applied to any water pollution abatement project, any or all costs, whenever incurred, approved by the department in accordance with section twenty-seven A of chapter twenty-one, of carrying out a project including, without limiting the generality of the foregoing, costs for planning, preparation of studies and surveys, design, construction, expansion, facilities, improvement and rehabilitation, acquisition of real property, personal property, materials, machinery or equipment, start-up costs, demolitions and relocations, reasonable reserves and working capital, interest on loans, local governmental obligations and notes in anticipation thereof prior to and during construction of such project or prior to the date of such loan, if later, administrative, legal and financing expenses, and other expenses necessary or incidental to the aforesaid. ''Clean Water Act'', the Federal Water Pollution Control Act, Public Law 92–500, 33 USC, Secs. 1251 et seq. ''Department'', the department of environmental protection. ''Drinking water project'', a project of a type or category which the department has determined, consistent with guidance issued by the United States Environmental Protection Agency in accordance with the Safe Drinking Water Act, shall facilitate compliance with national primary drinking water regulations under section 1412 of the Safe Drinking Water Act or otherwise significantly further the health protection objectives of the Safe Drinking Water Act or the department's drinking water regulations including, without limitation, the rehabilitation or development of water sources to replace contaminated sources, the installation or upgrade of drinking water treatment or storage facilities, the installation or replacement of transmission and distribution pipes to prevent contamination and the planning and design of eligible projects. ''Eligible borrower'', with respect to a water pollution abatement project, a local governmental unit authorized to own, operate, finance or otherwise implement such water pollution abatement projects and, with respect to a drinking water project, a local governmental unit or any other person, public or private, authorized to own, operate, finance or otherwise implement such drinking water project. ''Financial assistance or other forms of financial assistance'', a type of assistance provided to or on behalf of an eligible borrower as authorized by Title VI of the Clean Water Act, as defined herein, or Title XIV of the Safe Drinking Water Act, as defined herein, approved by the department under section 27A of chapter 21 or section 18 of this chapter. ''Fund'', the Water Pollution Abatement Revolving Fund, established pursuant to the provisions of section two L of chapter twenty-nine. ''General revenues'', when used with reference to a local governmental unit, revenues, receipts, assessments and other monies of a local governmental unit, and all rights to receive the same including without limitation (i) revenue as defined in section one of chapter forty-four, (ii) local system revenues, (iii) assessments upon or payments received from any other local governmental unit which is a member or service recipient of the local governmental unit, (iv) proceeds of loans made in accordance with this chapter and of grants made in accordance with section thirty-three E of chapter twenty-one, (v) investment earnings, (vi) reserves for debt service or other capital or current expenses, (vii) receipts from any tax, excise or fee all or a part of the receipts of which are payable or distributable to or for the account of the local governmental unit, (viii) local aid distributions and (ix) receipts, distributions, reimbursements and other assistance from the United States; provided, however, that local general revenues shall not include any monies restricted by law to specific statutorily defined purposes inconsistent with their treatment as general revenues for purposes of this chapter. ''Loan'', a form of financial assistance subject to repayment in whole or in part which is provided by the trust to a local governmental unit or other eligible borrower for all or any part of the cost of a water pollution abatement project or a drinking water project, as applicable. A loan may (i) provide for planning, construction, bridge or permanent financing; (ii) be disbursed in anticipation of reimbursement of or direct payment of costs of a project or take the form of a guarantee, line of credit, bond purchase agreement, or other form of financial assistance; and (iii) may be issued at such rates of interest including, without limitation, variable rates and zero interest, may mature at such times and be redeemable at the option of the board or the local governmental unit or other eligible borrower, all as may be determined in accordance with this chapter; provided, however, that for all purposes of this chapter, notwithstanding any other general or special law to the contrary and unless otherwise determined by the board, a loan made at one-half of market interest rate shall be deemed the financial equivalent of a grant of 25 per cent of the eligible costs of the project financed by the loan and a loan made at a zero rate of interest shall be deemed the financial equivalent of a grant of 50 per cent of the eligible costs of the project financed by the loan. ''Loan agreement'', an agreement entered into between the trust and a local governmental unit or other eligible borrower pertaining to a loan or the purchase and delivery of local governmental obligations or other instruments evidencing or securing a loan. A loan agreement may contain, in addition to financial terms, provisions relating to the regulation and supervision of a water pollution abatement project or the wastewater system of which it is a part, to which provisions the department may join as a party to the agreement as authorized in section twenty-seven A of chapter twenty-one. The term ''loan agreement'' shall include, without limitation, a loan agreement, trust agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note resolution, loan order or similar instrument whether secured or unsecured. ''Local aid distributions'', any receipts, distributions, reimbursements or other assistance payable by the commonwealth to or for the account of a local governmental unit including, without limitation, payments under sections eighteen A, eighteen B, eighteen C, eighteen D and eighteen E of chapter fifty-eight and under any other local reimbursement or assistance program described in section twenty-five A of said chapter fifty-eight. ''Local government obligations or local governmental obligations'', bonds, notes or other evidence of indebtedness issued by a local government unit to evidence a loan. ''Local government unit or local governmental unit'', a town, city, district, commission, agency, authority, board or other instrumentality of the commonwealth or of any of its political subdivisions, including any regional local governmental unit. ''Local system revenues'', all rates, rents, fees, assessments, charges and other receipts derived or to be derived by a local governmental unit from any water pollution abatement projects, any system of which such projects are a part and any other revenue producing facilities under its ownership or control, or from the services provided thereby, including without limitation proceeds of grants, gifts, appropriations and loans, including the proceeds of loans or grants made by the trust or the department, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation and the sale or other disposition of property; provided, however, that local system revenues shall not include any ad valorem taxes levied directly by the local governmental unit on any real and personal property. ''Regional local governmental unit'', a local government unit which provides wastewater collection or treatment services either on a wholesale or retail basis to service recipients in two or more cities or towns, or designated parts thereof, and which derives all or part of its general revenues or local system revenues by assessment or other charge on such cities or towns. ''Revenues'', when used with reference to the trust, any receipts, fees, revenues or other payments received or to be received by the trust, including without limitation receipts and other payments received by or deposited in the fund, payments of principal, interest or other charges on loans, grants, appropriations or other assistance from the commonwealth or the United States or any political subdivision or instrumentality of either, investment earnings on its funds and accounts including without limitation the fund, and any other fees, charges or other income received or receivable by the trust or the fund. ''Safe Drinking Water Act'', Title XIV of the Federal Public Health Service Act, commonly known as the Safe Drinking Water Act, 42 USC 300f et seq., as amended. ''Trust'', the Massachusetts Clean Water Trust; provided, however, that the Massachusetts Clean Water Trust shall be the successor to the water pollution abatement trust. ''Trust agreement'', any agreement entered into by the board providing for the issuance, security and payment of bonds. The term ''trust agreement'' shall include a trust agreement, trust indenture, security agreement, reimbursement agreement, currency or interest rate exchange agreement, bond or note resolution or other similar instrument. ''Water pollution abatement project'', any abatement facilities, including without limitation rehabilitation of abatement facilities to remove, curtail or otherwise mitigate infiltration and inflow, collection system, treatment works and treatment facilities as defined in section twenty-six A of chapter twenty-one, and any eligible facilities for implementation of a nonpoint source pollution control management program or estuary conservation and management plan pursuant to the Clean Water Act.

M.G.L. c. 29C, § 2 Massachusetts Clean Water Trust; board of trustees; members; officers

c. 29C, § 2. Massachusetts Clean Water Trust; board of trustees; members; officers Section 2. (a) An unpaid board of trustees consisting of the state treasurer, ex officio, the secretary of the executive office for administration and finance, ex officio, and the commissioner of the department of environmental protection, ex officio, is hereby constituted as a public instrumentality of the commonwealth to be known as the Massachusetts Clean Water Trust to administer the Water Pollution Abatement Revolving Fund established pursuant to section two L of chapter twenty-nine. The trust is hereby designated as the instrumentality of the commonwealth to establish and administer within the fund the state revolving fund pursuant to Title VI of the Clean Water Act. The exercise by the trust, and by the board of trustees thereof, of the powers conferred by this chapter shall be deemed to be the performance of an essential public function. (b) The state treasurer shall serve as chairman of the board of trustees of the trust. The board shall annually elect one of its members as vice-chairman. Each member of the board may appoint a designee pursuant to section six A of chapter thirty. Two members of the board of trustees shall constitute a quorum and the affirmative vote of two trustees shall be necessary and shall suffice for any action taken by the board. Any action of the board may take effect immediately and need not be published or posted unless otherwise provided by law. No vacancy in the membership of the board shall impair the right of a quorum to exercise the powers of the board. Meetings of the board of trustees shall be subject to section eleven A1/2 of chapter thirty A; provided, however, that the provisions of said section eleven A1/2 shall not apply to any meeting of trustees in the exercise of their duties as officers of the commonwealth so long as no matters relating to the official business of the trust are discussed and decided at such meeting. The trust shall be subject to all other provisions of said chapter thirty A; provided, however, that the provisions of said chapter thirty A shall not apply to rules, regulations, procedures and guidelines adopted by the board pursuant to section seven, and records pertaining to the administration of the trust shall be subject to the provisions of section forty-two of chapter thirty and section ten of chapter sixty-six. The fund and all other monies of the trust shall be deemed to be public funds for purposes of chapter twelve A. The operations of the trust shall also be subject to the provisions of chapter two hundred and sixty-eight A and chapter two hundred and sixty-eight B to the same extent as the office of the state treasurer.

M.G.L. c. 29C, § 3 Purpose of trust; powers and duties of board

c. 29C, § 3. Purpose of trust; powers and duties of board Section 3. (a) The purposes for which the trust is created and for which the fund shall be received, held, administered and disbursed by the board of trustees shall be the provision of financial assistance, in the manner contemplated by Title VI of the Clean Water Act, to local governmental units as beneficiaries of the trust to finance the costs of water pollution abatement projects as provided in, and as necessary to implement the provisions of, this chapter. In accordance with the terms of any trust agreement entered into by the trust with respect to bonds secured by monies or revenues of the fund, the holders of such bonds also shall be beneficiaries of such trust. The board shall apply and disburse monies and revenues of the fund without appropriation or allotment by the commonwealth. (b) Without limiting the generality of the foregoing and other powers of the trust, the board of trustees shall have the power: (i) to adopt and amend by-laws and such rules, regulations and procedures for the conduct of the business of the trust as the board shall deem necessary to carry out the provisions of this chapter; (ii) to apply for, receive, administer and comply with the conditions and requirements respecting any grant, gift or appropriation of property, services or monies; (iii) to borrow and repay money by issuing bonds of the trust, to apply the proceeds thereof as provided in this chapter and to pledge or assign or create security interests in the fund and the receipts thereto to secure bonds; (iv) to make loans and other forms of financial assistance authorized by Title VI of the Clean Water Act to local governmental units to finance or refinance costs of water pollution abatement projects, to acquire, hold and sell local governmental obligations and other instruments evidencing the loans and other forms of financial assistance at such prices and in such manner as the board shall deem advisable and to secure bonds of the trust with loans, local governmental obligations and other instruments. (v) to enter into contracts, arrangements and agreements with other persons and execute and deliver all trust agreements, loan agreements and other instruments necessary or convenient to the exercise of the powers of the trust; (vi) to obtain insurance and enter into agreements of indemnification necessary or convenient to the exercise of the powers of the trust; (vii) to sue and be sued and to prosecute and defend actions relating to the affairs of the trust and the fund; provided, however, that the trust is not authorized to become a debtor under the United States Bankruptcy Code; (viii) to engage accounting, management, legal, financial, consulting and other professional services necessary to the conduct of the programs of the trust. (c) In its administration of the federal state revolving loan program as provided in this chapter, the board of trustees shall comply with applicable federal legal requirements under Title VI of the Clean Water Act. The programs of the trust also shall be subject to powers and responsibilities expressly reserved to the department under section twenty-seven A of chapter twenty-one. In addition, the trust shall not be authorized or empowered (1) to be or to constitute a bank or trust company within the jurisdiction or under the control of the department of banking and insurance of the commonwealth or the comptroller of the currency or the treasury department of the United States, or (2) to be or constitute a bank, banker or dealer in securities within the meaning of, or subject to the provisions of, any securities, securities exchange or securities dealers' law of the United States or the commonwealth.

M.G.L. c. 29C, § 4 Monies held in trust; administration of fund

c. 29C, § 4. Monies held in trust; administration of fund Section 4. (a) The board of trustees shall receive in trust, hold, administer and disburse in and from the fund exclusively for the benefit of the beneficiaries thereof the following monies: (i) notwithstanding the provisions of sections two B and two C of chapter twenty-nine, all federal capitalization grants received under Title VI of the Clean Water Act; provided, however, that the reserve required by section six hundred and four (b) of the Clean Water Act to carry out planning under sections two hundred and five (j) and three hundred and three (e) of said Clean Water Act shall not be so received by the board of trustees, but shall be received and administered by the department subject to section two B of chapter twenty-nine; (ii) amounts appropriated by the commonwealth to the trust for purposes of the fund; (iii) proceeds of bonds of the trust to the extent required by the board's resolution for issuance of such bonds or any applicable trust agreement; (iv) loan repayments and other payments received by the trust in respect of loans to local governmental units; (v) investment earnings on monies in the fund; and (vi) any other amounts required to be credited to the fund by any law or by any resolution, loan agreement or trust agreement of the board or which the board shall otherwise determine to deposit therein. (b) Actions by the board with respect to the fund shall be subject to the requirements of this chapter and applicable provisions of any loan agreement or trust agreement of the trust and, with respect to amounts held therein derived from capitalization grants made under Title VI of the Clean Water Act, to the applicable requirements of federal law. Whenever the board takes discretionary action, it shall be guided by the purpose of best effecting the purposes of this chapter to implement financial assistance in support of water pollution abatement practices consistent with the responsibilities of the trust to its bondholders, local governmental units and other beneficiaries of the trust. The provisions of section six B and sections seven A to seven G, inclusive, of chapter twenty-nine shall not apply to grants received by the trust for purposes of the fund from the United States. The state treasurer shall be the treasurer-custodian of the fund as provided in section two L of said chapter twenty-nine, and, subject to any applicable trust agreement, the state treasurer is authorized to invest monies held in the fund in such investments as may be legal investments for funds of the commonwealth. (c) For necessary and convenient administration of the fund, the board shall direct the state treasurer to establish one or more accounts and sub-accounts within the fund as shall be necessary to meet any applicable federal law requirement for segregation of Title VI funds for specified purposes established by federal law or as the board shall otherwise deem necessary or desirable to segregate any monies received or derived from federal capitalization grants under Title VI of the Clean Water Act or any other source from other monies in the fund in order to implement the provisions of this chapter or to comply with any trust agreement. The trust may also establish in any trust agreement or otherwise as the board shall determine one or more other funds and accounts for revenues and other monies of the trust not required to be held in the fund and to apply and disburse such monies and revenues to the purposes of the trust. (d) Notwithstanding the provisions of section twenty-seven of chapter twenty-one, the board, the state treasurer and the comptroller, with the approval of the governor, shall take all action necessary to transfer to the fund the sum of money constituting the commonwealth's allotment for federal fiscal year nineteen hundred and eighty-nine and each federal fiscal year thereafter for authorizations under Title II of the Clean Water Act; provided, however, that any portion of any allotment which, under the provisions of the Clean Water Act, may not be transferred to or used for the purposes of the fund shall continue to be received and administered by the department in accordance with said chapter twenty-one.

M.G.L. c. 29C, § 5 Disbursement of monies by board of trustees; purposes

c. 29C, § 5. Disbursement of monies by board of trustees; purposes Section 5. Subject to limitations in other law respecting the use of particular monies in the fund and the provisions of any trust agreement for bonds of the trust, the board may apply and disburse monies and revenues of the fund or any segregated account therein: (i) to make, and enter into binding commitments to make, loans and other forms of financial assistance authorized by Title VI of the Clean Water Act approved by the department under section 27A of chapter 21 to local governmental units for the purpose of financing or refinancing costs of water pollution abatement projects and to provide for all or any part of the debt service costs on loans and other forms of financial assistance made by the trust during the implementation of such projects and for such period thereafter as the board shall determine. (ii) to provide reserves for or otherwise secure bonds of the trust and to provide insurance and letters or lines of credit or other credit enhancement which it deems reasonable and appropriate for bonds; (iii) to transfer to the Water Pollution Abatement and Drinking Water Projects Administration Fund amounts derived from proceeds of each federal capitalization grant award received by the trust to the extent determined by the board and subject to the approval of the executive office for administration and finance. (iv) to provide payment from any available source for reasonable and necessary professional and financial services incident to the conduct of the programs of the trust, including costs of issuance of its bonds.

M.G.L. c. 29C, § 6 Additional authorized applications and disbursements of fund monies and revenues; contract assistance agreements; criteria for zero rate of interest loans

c. 29C, § 6. Additional authorized applications and disbursements of fund monies and revenues; contract assistance agreements; criteria for zero rate of interest loans Section 6. (a) Subject to limitations in other laws respecting the use of particular monies in the fund and any trust agreement for bonds of the trust, the board may also apply and disburse monies and revenues in the fund or segregated accounts therein: (i) after taking account of any grant made by the department under section 33E of chapter 21 to provide, and enter into binding commitments to provide, a subsidy for, or to otherwise assist local governmental units in the payment of, debt service costs on loans and other forms of financial assistance made by the trust; and (ii) to provide reserves for, or to otherwise secure, amounts payable by local governmental units on loans and other forms of financial assistance made by the trust under this chapter. (b) The board shall apply and disburse monies in the fund and in the Drinking Water Revolving Fund, established under section 18, as applicable, including contract assistance provided in this section, or shall otherwise structure the debt service costs on loans and other forms of financial assistance made by the trust to provide a subsidy or other assistance to local governmental units or other eligible borrowers in the payment of debt service costs on such loans and other forms of financial assistance that shall be the financial equivalent of a loan made at an interest rate equal to 2 per cent. Notwithstanding the foregoing, but subject to the limit on contract assistance provided in this section and the availability thereof after taking into account committed contract assistance, the board may commit such available contract assistance to provide additional financial assistance to local governmental units or other eligible borrowers that shall be the financial equivalent of a loan made at an interest rate less than 2 per cent and which additional subsidy may include principal forgiveness; provided, that principal forgiveness committed under this section in any year shall not exceed 25 per cent of the total costs of all projects on that year's applicable clean water or drinking water intended use plan; and provided further, that a loan or other form of financial assistance that qualifies for an additional subsidy shall receive such additional subsidy in the amount and at a rate as determined by the board, which shall not exceed the financial equivalent of a 75 per cent subsidy as compared to a market rate loan as calculated at the time of board approval of such loan or other form of financial assistance. (c) The department of environmental protection shall promulgate regulations, under section 7 establishing the types of eligible projects and criteria that the department shall use to evaluate applications for additional subsidies equivalent to a loan made at an interest rate of less than 2 per cent. The additional subsidies shall be made available to eligible projects appearing on the department's intended use plan the year following the release of regulations by the department and subsequent years. The criteria shall be reflective of: the board's current priorities; best management practices; and sustainability criteria, as determined by the United States Environmental Protection Agency and required by the Water Resources Reform and Development Act of 2014. Notwithstanding the foregoing regulations, all permanent loans and other forms of financial assistance made by the trust, which finance the costs of certain water pollution abatement projects on the department's intended use plan for calendar year 2009 to calendar year 2069, inclusive, and meet the criteria listed below, shall provide for an additional subsidy or other assistance in the payment of debt service such that the loans and other forms of financial assistance shall be the financial equivalent of a loan made at a 0 per cent rate of interest; provided, that the costs of water pollution abatement projects on an intended use plan that are eligible for a permanent loan or other financial assistance from the trust at the financial equivalent of a loan made at a 0 per cent rate of interest shall not exceed 35 per cent of the total costs of all water pollution abatement projects on the intended use plan. (d) Projects shall be eligible for 0 per cent rate of interest loans if the department verifies that: (1) the project is primarily intended to remediate or prevent nutrient enrichment of a surface water body or a source of water supply; (2) the applicant is not currently, due to a violation of a nutrient-related total maximum daily load standard or other nutrient based standard, subject to a department enforcement order, administrative consent order or unilateral administrative order, enforcement action by the United States Environmental Protection Agency or subject to a state or federal court order relative to the proposed project; (3) the applicant has a Comprehensive Wastewater Management Plan approved by the department of environmental protection or the department of environmental protection determines that the project is consistent with an areawide waste management plan approved under section 208 of the federal Clean Water Act; (4) the project has been deemed consistent with the regional water resources management plans, including but not limited to a current areawide water resources management plan adopted under section 208 of the federal Clean Water Act, if such a plan exists; and (5) the applicant has adopted land use controls, subject to the review and approval of the department in consultation with the executive office of economic development and the secretary of housing and livable communities, and, where applicable, any regional land use regulatory entity, intended to limit wastewater flows to the amount authorized under zoning and wastewater regulations as of the date of the approval of the CWMP. (e) The department shall promulgate regulations under section 7 establishing the types of eligible projects and criteria that the department shall use to evaluate applications for additional financial assistance, including principal forgiveness and additional financial incentives, consistent with the sustainability criteria as determined by the United States Environmental Protection Agency as required by the Water Resources Reform and Development Act of 2014. The financial assistance and financial incentives provided under these regulations shall be made available to projects appearing in the department's intended use plan the year following the release of regulations by the department and subsequent years. Such criteria may include, the following requirements, any 1 of which shall be sufficient to qualify the project for assistance: (i) the project is pursuant to a regional wastewater management plan that has been adopted by a regional planning agency with regulatory authority; (ii) the project is necessary to connect a local or regional local governmental unit to a facility of the Massachusetts Water Resources Authority, if the local or regional local governmental unit has paid or committed to pay the entry fee of that authority; (iii) the project is a green infrastructure project, as defined in section 26A of chapter 21, with consideration being given to projects that effectively combine green infrastructure with wastewater infrastructure and drinking water infrastructure projects; (iv) the project uses regional water resources to offset, by at least 100 per cent, the impact of water withdrawals on local water resources in the watershed basin of the receiving community; (v) the project is a direct result of a disaster affecting the service area that is the subject of a declaration of emergency by the governor; (vi) the project is intended to provide public water supply to consumers whose groundwater or public or private wells are impacted by contamination; or (vii) the program is an innovative water project utilizing new technology, which improves environmental or treatment quality, reduces cost, increases access and availability of water, conserves water or energy or improves management, in the areas of drinking water, wastewater, stormwater, groundwater or coastal resources; provided, that the project has not been fully implemented, other than as a pilot project, previously in the commonwealth. (f) To provide the subsidy or assistance the state treasurer, acting on behalf of the commonwealth, shall enter into an agreement with the trust. Under the agreement, the commonwealth shall provide contract assistance for debt service obligations on loans and other forms of financial assistance made by the trust, up to a maximum amount of $138,000,000 per fiscal year. The agreement shall provide for payments by the commonwealth to the trust at such times during each fiscal year and upon such terms and under such conditions as the trust may stipulate. The trust may pledge such agreement and the rights of the trust to receive amounts thereunder as security for the payment of debt obligations issued to the trust. Such agreement shall constitute a general obligation of the commonwealth, for which the faith and credit of the commonwealth shall be pledged for the benefit of the trust and of the holders of any debt obligations of the trust which may be secured by the pledge of such agreement or of amounts to be received by the trust under such agreement. (g) Each year, the trust shall commit contract assistance for debt service obligations on loans and other forms of financial assistance made by the trust in an amount that is at least 80 per cent of the limit set forth in subsection (f). If, in any year, the trust is unable to satisfy the 80 per cent threshold, the trust shall file a written report with the office of the state treasurer, the department, the chairs of the house and senate committees on ways and means and the house and senate chairs of the joint committee on the environment, natural resources and agriculture, not later than January 1 of that fiscal year, explaining the reasons why the 80 per cent threshold will not be satisfied in that year. (h) With respect to projects appearing on the department's intended use plan for calendar year 2016 and subsequent years: (i) the board shall not commit contract assistance to provide for the additional subsidy or other form of financial assistance referred to in subsections (c), (d) or (e) to any local governmental unit unless it has established a sewer enterprise fund or water enterprise fund, as applicable, under section 53F1/2 of chapter 44, or in lieu of the applicable enterprise fund has established a separate restricted account that is the equivalent of such fund; and (ii) any local government unit that transfers or otherwise uses money from its enterprise fund or restricted account for its local governmental operating budget, other than to pay or reimburse, valid expenses or obligations related to such fund or restricted account, will not be eligible to seek new commitments of contract assistance to provide for the additional subsidy or other form of financial assistance referred to in subsections (c), (d) or (e) for a period of 5 years following the date of such transfer or other use; provided however, this clause shall only apply if the disqualifying event occurred after January 1, 2015.

M.G.L. c. 29C, § 7 Clean Water Act; powers and duties of board

c. 29C, § 7. Clean Water Act; powers and duties of board Section 7. The board is authorized and directed to take all necessary or incidental actions to secure for the commonwealth the benefits of Title VI of the Clean Water Act, including exercise of the powers: (i) to cooperate with appropriate federal agencies in all matters related to the administration of the state revolving loan fund as contemplated by Title VI of the Clean Water Act; (ii) to prepare in cooperation with the department and submit to the appropriate federal agencies applications for capitalization grants under Title VI of the Clean Water Act and to enter into capitalization grant agreements, operating agreements and other agreements with the United States and the department relating to the purposes of the fund; (iii) to cooperate with the department in preparing and submitting to the appropriate federal agencies intended use plans identifying the use of capitalization grant awards and other monies in the fund; (iv) to prepare in cooperation with the department and submit to the appropriate federal agencies, the governor, the department and the clerks of the senate and the house, annual and other reports and audits, in form and content satisfying legal requirements under Title VI of the Clean Water Act, of activities of the board pertaining to the fund; (v) to establish and collect such fees, charges and interest rates as the board shall determine to be reasonable and to hold, apply and disburse such monies within or without the fund to the implementation of the purposes of this chapter; (vi) to establish, jointly with the state treasurer, fiscal controls and accounting procedures for the fund and the trust; and (vii) to adopt after consultation with the department regulations, procedures and guidelines for administration of its loan programs and for maintenance of suitable accounting procedures by local government units for loan proceeds and projects. Such regulations, procedures and guidelines shall be consistent with requirements of Title VI of the Clean Water Act and all applicable rules, regulations, procedures and guidelines of the department, and may determine, without limitation, the form and content of loan applications, loan agreements and local government obligations.

M.G.L. c. 29C, § 8 Appropriations to water pollution abatement trust; agreements

c. 29C, § 8. Appropriations to water pollution abatement trust; agreements Section 8. Upon the board's request, the state treasurer shall pay to the trust for deposit in the fund monies appropriated by the commonwealth to the trust for any purposes of the fund or any account therein. The state treasurer, the secretary of the executive office for administration and finance, the department and the trust shall enter into agreements establishing procedures for payment of amounts appropriated by the commonwealth to the trust. An agreement may include such covenants and undertakings of the commonwealth and the trust as the state treasurer, the secretary of the executive office for administration and finance, the department and the board may deem necessary or desirable, including without limitation provision for payments by the commonwealth in anticipation of receipt of federal capitalization grants or the execution and delivery of loan agreements by the trust. Notwithstanding any law to the contrary, unless otherwise specifically provided therein provisions contained in any act enacted by a vote, taken by the yeas and nays of two-thirds of each house of the general court present and voting thereon, and approved by the governor, authorizing the state treasurer to issue bonds or notes of the commonwealth or otherwise authorizing the commonwealth to borrow money for purposes of providing monies to meet any appropriation to the trust for purposes of the fund shall be deemed to authorize the state treasurer, with the approval of the governor, to enter into agreement or agreements with the trust pledging the full faith and credit of the commonwealth to a schedule of payments to the fund of the amounts therein appropriated including without limitation the amount, time and manner of such payments. The agreements of the commonwealth and the rights of the trust thereunder may be assigned and pledged as security for bonds of the trust. No agreement authorized by this section shall supersede or interfere with the exercise of the powers specifically reserved to the department under section twenty-seven A of chapter twenty-one. Notwithstanding any general or special law to the contrary, in the discretion of the state treasurer, with the approval of the governor, payments to the trust of amounts authorized pursuant to the issuance of bonds by the commonwealth, as provided in this section may be met by the deposit in the fund of bonds of the commonwealth which are so authorized to meet such appropriation. Bonds so deposited may be assigned and pledged as security for bonds of the trust and may mature or be redeemable on such dates and in such amounts, may bear interest at such rate or rates or be deposited in the fund at such discount or premium, may bear such limitations on negotiation or resale by the trust, and may bear such other terms and conditions, as the state treasurer shall determine to be in the best interests of the commonwealth; provided, however, that the effective yield on such bonds shall not exceed the greater of the effective yield on the bonds of the trust which they secure and the effective yield on comparable bonds not so deposited in the fund, as determined by the state treasurer after consultation with the secretary of the executive office for administration and finance. For purposes of section forty-nine of chapter twenty-nine, the net proceeds of bonds deposited in the fund as instrument the principal amount of which increases during the life of the instrument shall be deemed to be the present value of the amount payable thereon at maturity discounted to the date of deposit at the yield on such bonds.

M.G.L. c. 29C, § 9 Bonds and notes; issuance

c. 29C, § 9. Bonds and notes; issuance Section 9. (a) The board may provide by resolution for the issuance from time to time of bonds for any purpose of the trust, which bonds may be issued as general obligations of the trust or as special obligations payable solely from particular revenues or monies of the trust. The bonds of each issue may be dated, may bear interest at such rate or rates, including rates variable from time to time, and may mature or otherwise be payable or redeemable at such times as the board may determine. The board shall determine the denominations of bonds, the details of their execution and authentication and their places of payment within or without the commonwealth. Prior to initial issuance of each series of bonds the board shall advise the state finance and governance board established under section 97 of chapter 6 of the terms of the bonds and the timing of their issuance. In case any trustee or officer whose signature appears on any bonds shall cease to be such officer before their delivery, the signature shall nevertheless be valid and sufficient as if the officer had remained in office until delivery. Bonds may be issued in certificated or uncertificated form, payable to bearer or registered owners, and, if notes, may be made payable to bearer or to order. The board may sell the bonds of the trust at public or private sale at par or for such premium or discount price as it may determine. The board may by resolution delegate to any trustee or officer of the trust the power to determine any of the matters set forth in this section. (b) Bonds of the trust may be secured by a trust agreement between the trust and the bond owners or a corporate trustee which may be any trust company or bank having the powers of a trust company within or without the commonwealth. A trust agreement may pledge or assign, in whole or in part, any loan agreements and local governmental obligations, and the revenues, funds and other assets or property held or to be received by the trust, including without limitation all monies and investments on deposit from time to time in the fund or any account thereof and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the trust, and the proceeds thereof. A trust agreement may contain, without limitation, provisions for protecting and enforcing the rights, security and remedies of the bondholders, provisions defining defaults and establishing remedies, which may include acceleration and may also contain restrictions on the remedies by individual bondholders. A trust agreement may also contain covenants of the trust concerning the custody, investment and application of monies, the enforcement of loan agreements and local governmental obligations, the issue of additional or refunding bonds, the use of any surplus bond proceeds, the establishment of reserves and the regulation of other matters customarily treated in trust agreements. At the request of the board, the state treasurer shall and is hereby authorized to join in any trust agreement or to otherwise agree with the trust, any lender or any trustee for bondholders to hold the fund in compliance with any covenants and provisions relating to the fund contained in any trust agreement. (c) Bonds may be issued by the trust in the form of lines of credit or other banking arrangements under terms and conditions determined by the board. In addition to other lawful security, bonds may be secured, in whole or in part, by financial guarantees, by insurance, by letters or lines of credit or by other credit enhancement issued to the trust or to a trustee or other person, by any bank, trust company, insurance or surety company or other financial institution, within or without the commonwealth; the trust may pledge or assign, in whole or in part, any loan agreements and local governmental obligations and the revenues, funds and other assets and property held or to be received by the trust, and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the trust, and the proceeds thereof, as security for such guarantees or insurance or for the reimbursement to any issuer of a line or letter of credit. (d) The board may by resolution provide for the issue by the trust of interim receipts or temporary bonds, exchangeable for definitive bonds when the bonds are executed and are available for delivery. The board may also provide for replacement of mutilated, destroyed or lost bonds. The trust may purchase and invite offers to tender for purchase any outstanding bonds; provided, however, that no purchase by the trust shall be made at a price, exclusive of accrued interest, if any, exceeding the bond's principal amount or, if greater, its redemption price when next redeemable at the option of the trust. The trust may resell any bonds it purchases in such manner and for such price as it may determine. (e) The board may also provide for issue by the trust of temporary notes in anticipation of grants, revenues or appropriations to the fund. The issue of such notes shall be governed by the applicable provisions of this chapter relating to the issue of bonds; provided, however, that notes issued in anticipation of revenues shall mature no later than one year from their respective dates, or the date of expected receipt of such revenues, if later, and notes issued in anticipation of grants shall mature no later than six months after the expected date of receipt of such grant. The board may also issue refunding bonds of the trust for the purpose of paying any bonds at or prior to maturity. Refunding bonds may be issued at any time at or prior to the maturity or redemption or purchase of the refunded bonds. Refunding bonds may be issued in sufficient amounts to pay or provide for payment of the principal of the bonds being refunded, together with any redemption premium thereon, any interest or discount accrued or to accrue to the date of payment, costs of issuance and other expenses and reserves reasonably necessary to achieve the refunding. (f) Bonds of the trust are (i) securities in which public officers and agencies, insurance companies, financial institutions, investment companies, executors, administrators, trustees and others may properly invest funds including capital within their control, and (ii) securities which may be deposited with any public officer or any agency for any purpose for which the deposit of bonds is authorized by law. (g) Bonds issued by the trust shall not be deemed to be a debt or a pledge of the faith and credit of the commonwealth or of any of its political subdivisions, but shall be payable solely from the revenues and monies of the fund and other monies and rights pledged to their payment. Bonds shall recite that neither the commonwealth nor any political subdivision thereof shall be obligated to pay the same and neither the faith and credit nor the taxing power of the commonwealth or any political subdivision is pledged to their payment. Every bond shall recite whether it is a general obligation of the trust or a special obligation payable solely from particular revenues, funds, assets or other property. (h) Bonds of the trust shall be deemed to be investment securities under chapter one hundred and six. Bonds, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation by and within the commonwealth. The trust shall not be required to pay any taxes, assessments or excises upon its income, existence, operation, or assets, monies or revenues. (i) It shall be lawful for any bank or trust company to act as a depository of the fund or trustee under a trust agreement, provided it furnishes indemnification and reasonable security as the board may require. Any assignment or pledge of revenues, funds and other assets and property made by the trust shall be valid and binding and shall be deemed continuously perfected for the purposes of chapter one hundred and six and other laws when made. The revenues, funds and other assets and property, rights therein and thereto and proceeds so pledged and then held or thereafter acquired or received by the trust shall immediately be subject to the lien of such pledge without any physical delivery or segregation or further act, and the lien of any such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the trust, whether or not such parties have notice thereof. The trust agreement by which a pledge is created need not be filed or recorded to perfect the pledge except in the records of the board and no filing need be made pursuant to said chapter one hundred and six. Any pledge or assignment made by the trust is an exercise of its political and governmental powers, and loan agreements, local governmental obligations, revenues, funds, assets, property and contract or other rights to receive the same and the proceeds thereof which are subject to the lien of a pledge or assignment created under this chapter shall not be applied to any purposes not permitted by the pledge or assignment. Any holder of a bond and any trustee under a trust agreement, except to the extent its rights may be restricted by the trust agreement, may bring suit upon the bonds and may pursue any other legal action to protect and enforce its rights and compel performance of all duties required to be performed by the trust and the board.

M.G.L. c. 29C, § 10 Loans to local governmental units

c. 29C, § 10. Loans to local governmental units Section 10. (a) Any local governmental unit may apply to the trust for a loan to assist in financing the cost of a water pollution abatement project. At the option of the trust, loans may be unsecured or may be secured by local governmental obligations for delivery to the trust to evidence the loan. Each loan shall be made pursuant to a loan agreement between the trust and the local governmental unit acting by and through the officer or officers, board, committee or other body authorized by law, or otherwise its chief executive officer. The department may join in any loan agreement to effectuate its powers and responsibilities provided in sections twenty-seven A and thirty-three E of chapter twenty-one. (b) A local government unit may receive, apply, pledge, assign and grant security interests in, its general revenues and local system revenues to secure its obligations under loans and local governmental obligations as provided in this chapter and may fix, revise, charge and collect fees, rates, rents, assessments and other charges of general or special application for the operation or services of any water pollution abatement project, the system of which it is a part and any other revenue producing facilities from which the local governmental unit derives local system revenues, to meet its obligations under any loan agreement or local governmental obligation or otherwise to provide for the construction, maintenance and operation of the project and the system and facilities. (c) For entering into a loan and establishing the authorized terms and conditions thereof, and for issuing any local government obligations a local governmental unit shall be deemed to have the powers expressly granted to local governmental units in this chapter and the powers granted to that local governmental unit in any bond act applicable to it specifically or as a member of a class of governmental instrumentalities. Liberal construction shall be given in support of the broadest interpretation of local government unit powers derived from either this chapter or any bond act, provided that nothing in this chapter shall be construed as affecting the manner of voting and other procedures relating to, or otherwise required by any bond act for, the authorization of indebtedness of any local governmental unit by the governing body thereof or any limitations on indebtedness of local governmental units. (d) If any city or town, or any board, commission, or other public instrumentality thereof or of the commonwealth, which is a service recipient of a regional local governmental unit shall fail to pay when due and after demand any certified charges of the regional local governmental unit required to meet its obligations under this chapter, the regional local governmental unit may certify to the state treasurer the amount owing to the regional local governmental unit by such city, town or other instrumentality and the state treasurer shall promptly pay over to the regional local governmental unit without further appropriation any local aid distributions otherwise certified to the state treasurer as payable to the city or town, or in the case of any other instrumentality, as payable to all cities and towns in the service area of such instrumentality, until such time as any deficiency in the amounts due the regional local governmental unit shall have been offset by such payments from the state treasurer. In the event of a dispute between any city or town and the regional local governmental unit concerning the amount to be repaid to the regional local governmental unit by any city or town said dispute shall be arbitrated by an appeal board consisting of the commissioner of the department of revenue or his designee, the commissioner of the department of environmental protection or his designee, and a third member to be nominated by the Massachusetts Municipal Association. The state treasurer shall not offset any deficiency amount from the local aid distribution due to any city or town unless or until the appeal board has rendered its decision. Any amount paid to such local governmental unit by the treasurer under this section which is later determined, upon audit, to be in excess of the actual amount due the regional local governmental unit, shall upon demand of the local governmental unit or city or town, be repaid by the regional local governmental unit to the local governmental unit, city or town. (e) In addition to authority otherwise provided by law, if all or any part of a project shall fail to be approved for financial assistance pursuant to this act, the local governmental unit may apply to the Massachusetts Industrial Finance Agency for a loan to finance all or any part of such project. For such purposes, any local governmental unit as defined in this chapter shall qualify as a public body under section thirty of chapter twenty-three A. The second sentence of paragraph (c) of section thirty-five of said chapter twenty-three A shall not apply to bonds issued by the agency.

M.G.L. c. 29C, § 11 Default on loan; remedies

c. 29C, § 11. Default on loan; remedies Section 11. (a) In addition to other remedies of the trust under any loan agreement, if any local government unit other than a regional local governmental unit shall fail to pay to the trust when due and after demand any principal, interest or other charges payable under a loan or loan agreement, the board after applying to such payment amounts held in the fund pursuant to section six for the account of such local governmental unit, may certify to the state treasurer the amount owing to the trust by said local governmental unit. The state treasurer shall promptly pay over to the trust for deposit in the fund without further appropriation any local aid distributions otherwise certified to the state treasurer as payable to the local governmental unit. Notwithstanding the foregoing, if the local government unit is a regional local governmental unit, and if the board shall have determined (i) that the failure of the regional local government unit to pay to the trust the amount then payable is due to a failure by a city or town or other service recipient of the regional local governmental unit to pay to the regional local governmental unit any assessment or other charge attributable to said loan and (ii) that the regional local governmental unit has failed or refused after demand to exercise the remedies provided in paragraph (d) of section ten of this chapter or any similar provision of law, the board, after applying to such payment amounts held in the fund pursuant to section six for the account of such city, town or other service recipient, may certify to the state treasurer the amount owing the regional governmental unit by that city, town or other service recipient and the same payment procedures shall apply. If the board shall determine that no city, town or other service recipient is in default to the regional local governmental unit, after application by the board to such payment of amounts held in the fund pursuant to section six for the account of the regional local governmental unit pro rata in proportion to the service provided each city, town or other service recipient therein, the state treasurer, under the same procedures, shall pay to the trust any local aid distribution payable to each city and town which is, or the agency, commission or other appointed body of which is, a member or other service recipient of the regional local governmental unit, pro rata in proportion to the service provided such cities and towns. If a local governmental unit shall fail to pay to the trust any amount payable under a loan or loan agreement and shall also fail to pay any amount due to a regional local governmental unit of which it is a member or service recipient on account of any assessment thereon, local aid distributions available to remedy such failures under this paragraph and under paragraph (d) of section ten of this chapter or any similar provision of law shall be paid to the trust and the regional local governmental unit pro rata in proportion to the amounts due and unpaid. If a governmental unit or a member or other service recipient of a regional local governmental unit is an agency, commission or instrumentality of a city or town or its governing body is appointed by the governing body or chief executive officer of a city or town, payments under this section shall be made from any local aid distributions payable to such city or town. Payment by the state treasurer under this section shall continue to be made until any deficiency in the local governmental unit's payment to the trust shall have been offset by the payments from the state treasurer. In the event of a dispute between any city or town and the regional local governmental unit concerning the amount to be paid to the regional local government unit by any city or town said dispute shall be arbitrated by an appeals board consisting of the commissioner of the department of revenue or his designee, the commissioner of the department of environmental protection or his designee, and a representative nominated by the Massachusetts Municipal Association. Any amount paid to the trust by the state treasurer under this section which is later determined, upon audit, to be in excess of the actual amount due the trust shall, upon demand of the local governmental unit or city or town, be repaid from the fund to the state treasurer. (b) The trust may also recover from a local governmental unit in an action in superior court any amount due the trust together with any other actual damages the board shall have sustained from the failure or refusal of the local governmental unit to make payments owing to the trust.

M.G.L. c. 29C, § 12 Collection and enforcement powers of local governments

c. 29C, § 12. Collection and enforcement powers of local governments Section 12. (a) In order to provide for the collection and enforcement of fees, rates, rents, assessments and other charges for the operation of any water pollution abatement project, the system of which it is a part and any other revenue producing facilities from which the local governmental unit derives local system revenues, in addition to any other authority provided by law or any applicable bond act, local governmental units are hereby granted all the powers and privileges granted to them by the General Laws with respect to any similar fee, rate, rent, assessment or other charge. Without limiting the generality of the foregoing, local governmental units shall have the powers and be subject to the limitations to the extent applicable and consistent with this chapter provided in sections forty-two A to forty-two F, inclusive, of chapter forty, whether or not said sections have been accepted by the local governmental unit, and chapters sixty, eighty and eighty A. (b) Any local governmental unit may enter into agreements with the trust or the department regarding the operation of a pricing system for the services provided by any water pollution abatement project, the system of which it is a part and any other revenue producing facilities from which the local governmental unit derives local system revenues. Such agreements may include without limitation provisions defining the costs of such services, the water pollution abatement project and such local system and other facilities, and covenants or agreements regarding the fixing and collection of fees, rates, rents, assessments and other charges for such costs and the maintenance of such pricing system at levels sufficient to pay or provide for all such costs and any payments due the trust under any loan agreement or local governmental obligations. (c) Any local governmental unit may enter into agreements with the trust and the department regarding the operation of an enterprise fund established for any water pollution abatement project, the system of which it is a part and any other revenue producing facilities from which the local governmental unit derives local system revenues. Such agreements may include without limitation fiscal and accounting controls and procedures, provisions regarding the custody, safeguarding and investment of local system revenues and other amounts credited thereto, the establishment of reserves and other accounts and funds and the application of any surplus funds. (d) Any local governmental unit may or, in the case of a regional local governmental unit, any city, town, board, commission or other instrumentality which is a member or other service recipient thereof may (i) for furnishing wastewater services, establish rates, rents, fees, assessments and other charges on the basis of a flat rate per volume of wastewater processed or on the basis of ascending unit rates based on the quantity or strength of wastewater processed and (ii) provide for furnishing wastewater services in its charges or through abatement proceedings conducted in accordance with its regulations for assurance of service to persons who by reason of age, infirmity or poverty are unable to pay the charges otherwise applicable, provided that the aggregate liability of the local governmental unit or such member or other service recipient for amounts attributable to any loan or local governmental obligations shall be in no way diminished thereby. Any local governmental unit and any such member or other service recipient which raises all or any part of the cost of wastewater services or any assessment therefor through real and personal property taxes assessed by the local governmental body shall indicate on the tax bills furnished to each taxpayer the portion of the tax assessed for such services.

M.G.L. c. 29C, § 13 Local governmental obligations; issuance; interest; payment; taxation

c. 29C, § 13. Local governmental obligations; issuance; interest; payment; taxation Section 13. (a) Local governmental obligations issued by a local governmental unit shall be dated, may bear interest at such rate or rates, including rates variable from time to time subject to such minimum or maximum rate, if any, as may be determined by such index or other method of determination provided in the applicable loan agreement, shall mature in such amount or amounts and at such time or times, not later than the maximum dates, if any, provided herein, and may be made redeemable in whole or in part before maturity at the option of the local governmental unit or at the option of the trust at such price or prices and under such terms and conditions as may be fixed in the loan agreement prior to the issue of the local governmental obligations. The local governmental obligations may be issued as serial bonds or term bonds or any combination thereof with such provisions, if any, for sinking funds for the payment of bonds as the local governmental unit and the trust may agree. Local governmental obligations may be in such form, payable to the bearer thereof or the registered owner, be certificated or uncertificated, be in such denominations, payable at such place or places, within or without the commonwealth, and otherwise bear such terms and conditions, not inconsistent with this chapter and the applicable bond act, as provided in the applicable loan agreement or as the board and the local governmental unit shall otherwise agree. Local governmental obligations may be issued in principal amount equal to the loan evidenced thereby or at such discount as the board and the local governmental unit shall agree. (b) Subject to the requirements of Title VI of the Clean Water Act, local governmental obligations shall be payable within a period not exceeding the greater of the period, if any, specified in the applicable bond act or the useful life of the water pollution abatement project financed by such obligations, as determined by the department, or, if incurred to finance more than one project, the average useful life of such projects. Except as otherwise provided in this chapter, local governmental obligations shall be payable by such installment or installments of principal, annual or otherwise, as will extinguish the same at maturity, the first installment to be payable no later than one year after the date of issuance of such obligations or one year after the date of completion of the project financed by such obligations, as determined by the department, whichever date is later, and the remaining installments of principal, if any, to be in such amounts and payable on such dates as the board and the local governmental unit shall agree. (c) Notwithstanding the provisions of sections seventeen and seventeen A of chapter forty-four to the contrary, if a local governmental unit has authorized a loan in accordance with this chapter and the issuance of local governmental obligations under any bond act, the local governmental unit may, subject to the loan agreement and with the approval of the board, issue notes to the trust or any other person in anticipation of the receipt of the proceeds of the loan. The issue of such notes shall be governed by the provisions of this chapter relating to the issue of local governmental obligations other than notes, to the extent applicable, provided the maturity date of such notes shall not exceed three years from the date of issue of such notes or the expected date of completion of the project financed thereby, as determined by the department, if later. Notes issued for less than the maximum maturity date may be renewed by the issue of other notes maturing no later than the maximum maturity date. The second sentence of section seventeen A of chapter forty-four shall not apply to the issue of such notes. (d) A local governmental unit may issue local governmental obligations to refund or pay at maturity or earlier redemption any local governmental obligations outstanding under any loan agreement or to refund or pay any other debt of the local governmental unit issued to finance the water pollution abatement project to which such loan agreement pertains. Local governmental obligations for refunding may be issued in sufficient amounts to pay or provide for the principal of the obligations refunded, any redemption premium thereon, any interest accrued and to accrue to the date of payment of such obligations, the costs of issuance of such refunding obligations and any reserves required by the applicable loan agreement. An issue of refunding local governmental obligations, the amount and dates of maturity or maturities and other details thereof, the security therefor and the rights, duties and obligations of the local governmental unit in respect to the same shall be governed by the provisions of this chapter relating to the issue of local governmental obligations other than refunding obligations as the same may be applicable. (e) Except as otherwise provided in section fourteen, the applicable bond act, or by agreement between the trust and a local governmental unit, all local governmental obligations shall be general obligations of the local governmental unit issuing the same for which its full faith and credit are pledged and for the payment of which all taxable property in the local governmental unit shall be subject to ad valorem taxation without limit as to rate or amount except as otherwise provided by law.

M.G.L. c. 29C, § 14 Limited obligations payable from local system revenues

c. 29C, § 14. Limited obligations payable from local system revenues Section 14. Notwithstanding any general or special law to the contrary, when authorized by a two-thirds vote as defined in section one of chapter forty-four or by such other vote as is authorized by the applicable bond act, local governmental obligations may be issued as limited obligations payable solely from local system revenues pledged to their payment in accordance with section fifteen. Unless otherwise provided in the applicable loan agreement, local governmental obligations issued in accordance with this section shall not be general obligations of the local governmental unit or a pledge of its full faith and credit and, notwithstanding any general or special law to the contrary, the amount of principal and premium, if any, of and interest on such obligations shall not be included in the computation of any limit on the indebtedness of the local governmental unit or on the total taxes assessable by the local governmental unit in any year or on any assessment, levy or other charge made by the local governmental unit on any other political subdivision or instrumentality of the commonwealth. Any local governmental obligation issued in accordance with this section shall recite on its face that it is a limited obligation payable solely from local system revenues pledged to its payment.

M.G.L. c. 29C, § 15 Security agreements for local governmental obligations

c. 29C, § 15. Security agreements for local governmental obligations Section 15. (a) Notwithstanding any general or special law to the contrary, when authorized by a two-thirds vote as defined in section one of chapter forty-four or by such other vote as is authorized by the applicable bond act, any local governmental obligations may be secured by one or more security agreements between the local governmental unit and a corporate trustee, which may be a trust company or bank having the powers of a trust company within or without the commonwealth, or directly between the trust and the local governmental unit. Any such security agreement shall be in such form and shall be executed as provided in the applicable loan agreement or as otherwise agreed to between the board and the local governmental unit. (b) Any security agreement directly or indirectly securing local governmental obligations, other than local governmental obligations issued in accordance with section fourteen, may pledge or assign, and create security interests in, all or any part of the general revenues of the local governmental unit. Any trust agreement securing local governmental obligations issued in accordance with said section fourteen may pledge or assign, and create security interests in, all or any part of the local system revenues of the local governmental unit, but shall not otherwise pledge or assign any other general revenues of the local governmental unit unless otherwise authorized by the applicable bond act. Any security agreement may contain such provisions for protecting and enforcing the rights, security and remedies of the trust, or other holders of the local governmental obligations, as may be determined by the board and the local governmental unit, including without limitation provisions defining defaults and providing for remedies, including without limitation, the acceleration of maturities and, in the case of local governmental obligations issued under said section fourteen, the appointment of a receiver of the project financed thereby and the system of which it is a part, the covenants setting forth the duties of, and limitations on, the local governmental unit in relation to the custody, safeguarding, investment and application of monies, including general revenues and local system revenues, the issue of additional and refunding local governmental obligations and other bonds, notes or obligations on a parity or superior thereto, the establishment of reserves, the establishment of sinking funds for the payment of local governmental obligations, and the use of surplus proceeds. A security agreement securing local governmental obligations issued in accordance with said section fourteen may also include covenants and provisions not in violation of law regarding the acquisition, construction, operation and carrying out of the water pollution abatement project financed by such obligations, the system of which it is a part and any other revenue producing facilities from which the local governmental unit derives local system revenues, the fixing and collection of local system revenues and the making and amending of contracts relating thereto. Any local governmental obligations may also be secured by insurance or by letters or lines of credit or other credit facilities and a local governmental unit may pledge or assign any of its general revenues or local system revenues, as appropriate, as security for payments made thereon. (c) Any pledge of general revenues or local system revenues made by a local governmental unit shall be valid and binding and shall be deemed continuously perfected for the purpose of chapter one hundred and six and any other law from the time made. The general revenues, local system revenues, monies, rights and proceeds so pledged and then held or thereafter acquired or received by the local governmental unit shall immediately be subject to the lien of such pledge without any physical delivery or segregation thereof or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise, regardless of whether such parties have notice thereof. Neither the security agreement or any other agreement by which a pledge is created need be filed or recorded except in the records of the local governmental unit and no filing need be made under the provisions of said chapter one hundred and six. (d) A pledge of general revenues or local system revenues in accordance with this chapter shall constitute a sufficient appropriation thereof for the purposes of any provision for appropriation for so long as such pledge shall be in effect and, notwithstanding any general or special law to the contrary, such revenues shall be applied as required by the pledge and the security agreement evidencing the same without further appropriation.

M.G.L. c. 29C, § 16 Termination of trust

c. 29C, § 16. Termination of trust Section 16. The trust and its existence shall continue until terminated by law; provided, however, that no such law shall take effect so long as the trust shall have bonds outstanding unless adequate provision has been made for the payment or satisfaction thereof. Upon termination of the trust, the title to the fund and all other properties of the trust which remain after provision for the payment or satisfaction of all bonds of the trust shall vest in the commonwealth. The obligations, debts and liabilities of the trust shall be assumed by and imposed upon the commonwealth, and shall be transferred to the state treasurer or to such other successor as the general court may designate.

M.G.L. c. 29C, § 17 Annual reports

c. 29C, § 17. Annual reports Section 17. The board, in cooperation with the state treasurer, shall, at all times keep full and accurate accounts of all receipts, expenditures and disbursements from the fund and all assets and liabilities of the trust which shall be open to inspection by any officer or duly appointed agent of the commonwealth. The trust shall submit an annual report, in writing, to the governor, the department and the clerk of the house of representatives who shall forward the same to the president of the senate, the speaker of the house of representatives, the chairman of the senate committee on ways and means and the chairman of the house committee on ways and means. Said report shall include financial statements relating to the operations, properties, and expenditures of the trust maintained in accordance with generally accepted accounting principles so far as applicable and audited by an independent certified public accountant firm.

M.G.L. c. 29C, § 18 Drinking Water Revolving Fund; implementation and administration; subsidies and financial assistance

c. 29C, § 18. Drinking Water Revolving Fund; implementation and administration; subsidies and financial assistance Section 18. (a) In addition to the powers and duties of the board otherwise provided in this chapter, the trust is hereby designated as the instrumentality of the commonwealth to establish and administer within the Drinking Water Revolving Fund, the state revolving fund pursuant to the Safe Drinking Water Act. The board shall apply monies in the Drinking Water Revolving Fund for the purpose of providing financial assistance, in the manner contemplated by section 1452 of the Safe Drinking Water Act, section 160 of chapter 111 and the department's drinking water regulations, to local governmental units and other eligible borrowers as provided herein, as beneficiaries of the fund, to finance or refinance costs of eligible drinking water projects approved by the department of environmental protection. (b) The board shall receive in trust, hold, administer and disburse without further appropriation or allotment by the commonwealth in and from the Drinking Water Revolving Fund exclusively for the benefit of the beneficiaries thereof the following monies: (i) notwithstanding the provisions of sections 2B and 2C of chapter 29, all federal capitalization grants received under the Safe Drinking Water Act for purposes of the fund; (ii) amounts appropriated by the commonwealth to the trust for purposes of the fund; (iii) proceeds of bonds of the trust to the extent required by the board's resolution for issuance of such bonds or any applicable trust agreement; (iv) investment earnings on monies in the fund; and (v) any other amounts required to be credited to the fund by any law or by any resolution, loan agreement or trust agreement of the board or which the board shall otherwise determine to deposit therein. (c) In the implementation of this section and the administration of the Drinking Water Revolving Fund, all provisions of this chapter and subsections (a), (c), (e) and (f) of section 27A of chapter 21 applicable to the Water Pollution Abatement Revolving Fund and the provision of financial assistance by the trust to local governmental units and other eligible borrowers for costs of water pollution abatement projects shall be equally applicable, to the extent consistent with this section, to the Drinking Water Revolving Fund and to the provision of financial assistance for costs of drinking water projects and the board and the department shall have the powers and shall be subject to the applicable limitations provided in this chapter and said subsections (a), (c), (e) and (f) to carry out the provisions of this section. Without limiting the generality of the foregoing, the board may apply and disburse monies and revenues of the Drinking Water Revolving Fund: (i) to make, and enter into binding commitments to make, loans and other forms of financial assistance authorized by the Safe Drinking Water Act to local governmental units and other eligible borrowers for the purpose of financing or refinancing costs of drinking water projects or portions thereof which have been approved by the department, including approval of the costs of such projects or portion thereof eligible to receive financial assistance as provided in this section, and completed, as determined by the department, after the promulgation date of the department's regulations implementing its powers under this section and to provide for all or any part of the debt service costs on loans and other forms of financial assistance made by the trust during the construction of such projects and for such period thereafter as the board shall determine; (ii) to provide reserves for or otherwise secure bonds of the trust and to provide insurance and letters or lines of credit or other credit enhancement which it deems reasonable and appropriate for bonds; (iii) to provide, and enter into binding commitments to provide, a subsidy for, or to otherwise assist local governmental units and other eligible borrowers in the payment of, debt service costs on loans and other forms of financial assistance made by the trust pursuant to this section and to provide any other subsidization authorized by the Safe Drinking Water Act in addition to the subsidy or other assistance authorized by this section; (iv) to provide reserves for, or to otherwise secure, amounts payable by local governmental units and other eligible borrowers on, loans and other forms of financial assistance made by the trust pursuant to this section; (v) to transfer to the Water Pollution Abatement and Drinking Water Projects Administration Fund established under section 2W of chapter 29 amounts derived from the proceeds of each federal capitalization grant award received by the trust to the extent determined by the board; and (vi) to provide payment from any available source for reasonable and necessary professional and financial services incident to the conduct of the programs of the trust, including costs of issuance of its bonds. (d) The powers and duties otherwise conferred upon the department by law with respect to the regulation and supervision of public water supplies shall in no respect be diminished by this section including, but not limited to, the authority of the department to ensure that public water systems demonstrate technical, managerial and financial capacity with respect to the department's drinking water regulations. The department and the board shall establish standards, guidelines, criteria and other rules and regulations for the administration and implementation of their powers under this section including, without limitation, a priority system and priority list for the approval of projects, the determination of eligible borrowers and eligible costs of projects and the terms and conditions of loans by the trust. (e) In addition to the authority provided in section 9, the board may provide by resolution for the issuance from time to time of bonds of the trust to carry out the purposes of this section. The holders of such bonds shall also be beneficiaries of the Drinking Water Revolving Fund to the extent provided in any trust agreement entered into by the trust with such holders. Except to the extent limited by the requirements of Title VI of the Clean Water Act or by the Safe Drinking Water Act or other applicable federal law, the board may secure bonds of the trust by pledging monies held in or otherwise allocable to either or both the Water Pollution Abatement Revolving Fund or the Drinking Water Revolving Fund, where the board determines that doing so will reasonably promote the purposes of either or both funds. (f) Any local governmental unit and any other eligible borrowers may apply to the trust for a loan or other financial assistance authorized by the Safe Drinking Water Act to assist in financing or refinancing the cost of a drinking water project approved by the department. For entering into a loan or other financial assistance for financing or refinancing a drinking water project and establishing the authorized terms and conditions thereof and for issuing any local governmental obligations to secure the same, a local governmental unit shall be deemed to have all of the same powers expressly granted to local governmental units by this chapter with respect to loans or other financial assistance for financing or refinancing water pollution abatement projects and the powers granted to any such local governmental unit in any bond act applicable to it specifically or as a member of a class of governmental instrumentalities. Without limiting the generality of the foregoing, all local governmental units shall have the powers and shall be subject to the limitations with respect to such loans and local government obligations and the public water system of which the drinking water project financed by such loan is a part and the local system revenues therefrom set forth in sections 10 to 15, inclusive.

M.G.L. c. 29C, § 19 Cape Cod and Islands Water Protection Fund

c. 29C, § 19. Cape Cod and Islands Water Protection Fund Section 19. There shall be a separate fund to be known as the Cape Cod and Islands Water Protection Fund. The fund shall be subject to this chapter, except as otherwise provided in this section. There shall be credited to the fund revenue from appropriations or other money authorized by the general court and specifically designated to be credited to the fund including, but not limited to, revenues received under the excise imposed under section 3C of chapter 64G, any investment income earned on the fund's assets and all other sources, each source being tracked separately for accounting purposes as of June 30 of each year. The trust shall hold the fund in an account separate from other funds of the trust. Proceeds of the fund shall not be used to offset or otherwise replace contract assistance funds or reserve funds used for pool financing. The trust shall apply and disburse amounts credited to the fund, without further appropriation, to provide subsidies and other assistance, which may include principal forgiveness, to local governmental units and other eligible borrowers in the payment of debt service costs on loans and other forms of financial assistance made by the trust for water pollution abatement projects in municipalities that are members of the fund. Each municipality within Barnstable or Nantucket counties or within the county of Dukes County shall be a member of the fund if it is subject to: (i) an area wide wastewater management plan under section 208 of the federal Clean Water Act, 33 U.S.C. 1288; or (ii) a suitable equivalent plan determined by the department of environmental protection as submitted to the department of environmental protection by a majority vote of the chief executive officers of the municipality. Water pollution abatement projects eligible for subsidies and other assistance under this section may include the utilization of innovative strategies and alternative septic system technologies that result in nutrient reduction for marine and fresh waters. The fund may provide subsidies and other assistance as provided in this section with respect to debt incurred prior to the establishment of the fund in the towns of Nantucket, Edgartown, Tisbury, Oak Bluffs, Falmouth, Chatham and Provincetown and the city of Barnstable for water pollution abatement projects apart from the trust. Amounts credited to the fund shall be expended or applied only with the approval of the Cape Cod and Islands Water Protection Fund Management Board established under section 20 and in a manner determined by the management board, in addition to any approvals required under this chapter. The management board may direct the comptroller to transfer a specified amount not to exceed 10 per cent of the annual revenue deposited into the fund to the Cape Cod Commission for the purposes of contracting with an entity or entities to evaluate and report on the efficacy of adaptive management measures to reduce nitrogen pollution of coastal waterways undertaken pursuant to an area wide wastewater management plan or a suitable equivalent plan, to monitor the water quality and watersheds of areas subject to the study and to support further assessment and water quality modeling to further refine area wide wastewater management plans or suitable equivalent plans in Barnstable and Nantucket counties and the county of Dukes County. Any amounts remaining in the fund at the end of a fiscal year shall be carried forward into the following fiscal year and shall remain available for application and disbursement without further appropriation. A municipality that is a member of the fund under this section may withdraw from the fund by a 2/3 vote of its legislative body; provided, however, that a municipality shall not withdraw from the fund during the term of any financial assistance award from the fund to the municipality. A municipality that has withdrawn from the fund shall not have representation on the Cape Cod and Islands Water Protection Fund Management Board established under section 20. A municipality that has withdrawn from the fund and votes, by majority vote of its legislative body, to return to the fund shall not receive money from the fund until not less than 2 years from the date of its vote to return.

M.G.L. c. 29C, § 20 Cape Cod and Islands Water Protection Fund Management Board; annual reports; audit

c. 29C, § 20. Cape Cod and Islands Water Protection Fund Management Board; annual reports; audit Section 20. There shall be a Cape Cod and Islands Water Protection Fund Management Board that shall consist of 1 person to be appointed by each board of selectmen or town council in each municipality that is a member of the Cape Cod and Islands Water Protection Fund; provided, however, that an appointee of a board of selectmen or town council shall be a member of the respective appointing authority, a town manager, town administrator or other municipally employed professional staff. The executive director of the Cape Cod commission, the executive director of the Martha's Vineyard commission and the town manager of Nantucket shall serve as non-voting ex-officio members of the board. Each member of the management board shall serve for a term of 3 years and until a successor is appointed and qualified and each member of the management board shall be eligible for reappointment. Each member of the management board appointed to fill a vacancy on the management board shall be appointed for the unexpired term of the vacant position. The members of the management board shall select a member to serve as chairperson and vice-chairperson for a term established by vote of the management board. The Cape Cod commission, in consultation with the Martha's Vineyard commission, shall provide administrative and technical support to the management board and may be compensated for its associated costs by vote of the management board. The management board's duties shall be limited to determining the method for subsidy allocation, including, but not limited to, an equitable distribution among participating municipalities consistent with revenue deposited from each municipality into the fund, and to ensuring that money from the Cape Cod and Islands Water Protection Fund is spent only for the purposes in section 19. Annually, not later than June 1, the commissioner shall produce a written report to the management board with the total amount of revenue collected under section 3C of chapter 64G in the preceding fiscal year from occupancies in each municipality that is a member of the fund. The management board shall maintain complete itemized records of all receipts, expenditures and disbursements from the fund in accordance with generally accepted accounting principles and shall produce an annual written report that shall include, but not be limited to: (i) an account of revenue generated under section 3C of chapter 64G; (ii) itemized expenses of the board; (iii) summaries of the projects funded through the Cape Cod and Islands Water Protection Fund; (iv) an account of administrative expenses of the Cape Cod commission and the Martha's Vineyard Commission; and (v) 5-year projections relative to expected revenue and upcoming projects. Annually, not later than January 15, the annual written report shall be provided to the chairs of the joint committee on environment and natural resources and to each representative and senator who represents at least 1 municipality in the county of Barnstable, the county of Dukes County or the county of Nantucket.
Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIII/Chapter29CFetched: 10/20/2026

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