(1) The purpose of this subchapter is to implement provisions of the Water Pollution Control State  Revolving Fund Act pursuant to Title 75, chapter 5, part 11, MCA; and sections 601 through 607 of Federal Water Pollution Control Act, 33 USC 1381 through 1387, as amended.

(2) The act creates a financing mechanism for wastewater treatment projects and certain nonpoint source projects through use of loans and other financial incentives.

(3) The act authorizes the use of the state revolving fund to provide several types of financial assistance to municipalities and private persons.  These rules implement financial assistance in the form of a loan to municipalities and private persons.