WATER OR WASTE DISPOSAL GRANTS.

SEC. 6002. WATER OR WASTE DISPOSAL GRANTS. Section 306(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended— (1) by striking “(2) The” and inserting the following: “(2) Water, waste disposal, and wastewater facility grants.— “(A) Authority.— “(i) In general.—The”; (2) by striking “aggregating not to exceed $590,000,000 in any fiscal year”; (3) by striking “The amount” and inserting the following: “(ii) Amount.—The amount”; (4) by striking “paragraph” and inserting “subparagraph”; (5) by striking “The Secretary shall” and inserting the following: “(iii) Grant rate.—The Secretary shall”; and (6) by adding at the end the following: “(B) Revolving funds for financing water and wastewater projects.— “(i) In general.—The Secretary may make grants to qualified private, nonprofit entities to capitalize revolving funds for the purpose of providing financing to eligible entities for— “(I) predevelopment costs associated with proposed water and wastewater projects or with existing water and wastewater systems; and “(II) short-term costs incurred for replacement equipment, small-scale extension services, or other small capital projects that are not part of the regular operations and maintenance activities of existing water and wastewater systems. “(ii) Eligible entities.—To be eligible to obtain financing from a revolving fund under clause (i), an eligible entity must be eligible to obtain a loan, loan guarantee, or grant under paragraph (1) or this paragraph.116 STAT. 353 “(iii) Maximum amount of financing.—The amount of financing made to an eligible entity under this subparagraph snail not exceed— “(I) $100,000 for costs described in clause (i)(I); and “(II) $100,000 for costs described in clause (i)(II). “(iv) Term.—The term of financing provided to an eligible entity under this subparagraph shall not exceed 10 years. “(v) Administration.—The Secretary shall limit the amount of grant funds that may be used by a grant recipient for administrative costs incurred under this subparagraph. “(vi) Annual report.—A nonprofit entity receiving a grant under this subparagraph shall submit to the Secretary an annual report that describes the number and size of communities served and the type of financing provided. “(vii) Authorization of appropriations.—There are authorized to be appropriated to carry out this subparagraph $30,000,000 for each of fiscal years 2002 through 2007.”.