(1) The authority shall establish a program to assist governmental agencies in detecting
water loss from distribution lines. The program may include contracting with third parties to conduct water loss audits
and leak detection. The program may include giving low interest loans, on a priority basis established
by the authority consistent with the findings and purposes set out in KRS 224A.300, for the repair or replacement of distribution facilities, deemed reasonable by the
authority, undertaken as a result of the water loss audit.
(2) The authority may forgive any amount of a distribution facility repair or replacement
loan from the authority remaining unpaid if:
(a) Within five (5) years of entering into the loan agreement the governmental agency
merges with or consolidates with at least one (1) other public or private water supplier;
(b) The merger or consolidation is consistent with a 2020 water management planning
council plan as reviewed and prioritized under KRS 151.607.
(3) The authority may fund the requirements of this section from the 2020 water service
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