Section 1807-A. Use of bond proceeds.
(a) Order.--Upon issuance of bonds, the proceeds shall be applied in the following order:
(1) pay the costs of issuance of the bonds, including any refunding bonds;
(2) fund bond reserves;
(3) refund outstanding bonds, if applicable;
(4) make any other deposit required under any instrument or agreement pertaining to the bonds; and
(5) deposit the balance into the subaccounts within the fund for the department and the Commonwealth Financing Authority.
(b) Application of balance.--The bond proceeds deposited under subsection (a)(5) are appropriated to and shall be expended by the department and by the Commonwealth Financing Authority as follows:
(1) For the department to make program grants and loans to approved eligible applicants under section 1808-A from the respective subaccount within the fund.
(2) From the $100,000,000 in the subaccount for use by the Commonwealth Financing Authority:
(i) $50,000,000 for grants through the Multimodal Transportation Fund Program.
(ii) $50,000,000 for grants through the PA Small Water and Sewer Program.
(3) For the expenses in the administration of the program, the department and the Commonwealth Financing Authority may use an amount not to exceed 0.2% of the bond proceeds in the aggregate over the life of the program drawn proportionally from both subaccounts within the fund.
(4) The department may not expend more than the following from proceeds of the fund:
(i) In fiscal year 2024-2025, no more than $125,000,000.
(ii) In fiscal year 2025-2026, no more than $175,000,000 plus any unexpended money available from the 2024-2025 fiscal year.
(iii) In fiscal year 2026-2027, no more than $100,000,000 plus any unexpended money available from 2024-2025 or 2025-2026 fiscal years.
(1807-A added July 11, 2024, P.L.550, No.54)