(1) The purpose of this subchapter is to implement the provisions of the Drinking Water State Revolving Fund Act pursuant to Title 75, chapter 6, part 2, MCA; and the Federal Safe Drinking Water Act, 42 USC 300f to 42 USC 300j-26, inclusive, as amended to January 1, 1997.

(2) The act establishes a program under which the state may provide financial assistance to community water systems and nonprofit noncommunity water systems.

(3) The act delegates implementation of certain financial provisions to the department and certain technical provisions to the department of environmental quality.

(4) The act authorizes the department and the department of environmental quality to adopt rules within their respective authorities.

(5) The board of environmental review has adopted rules to assure that the state's regulations pertaining to public water supplies comply with the Federal Safe Drinking Water Act.  ARM 17.38.101, et seq. and 17.38.201, et seq.

(6) The department of environmental quality may adopt rules to implement the program.

(7) The act authorizes the use of the state revolving fund to make loans to community water systems and nonprofit community water systems and to provide financial and technical assistance to any public water system as part of a capacity development strategy.

(8) The department proposes rules to implement the making of loans to community water systems and nonprofit noncommunity water systems from the state revolving fund.  The act further authorizes the state revolving fund to be used to purchase insurance for or to guarantee obligations issued by municipalities.  The department reserves the right to adopt rules to implement a guarantee and insurance component of the program if it determines it is necessary or desirable.