Authority: Title 10.1, Chapters 11.1, 14, 21.1, and 25 and Title 62.1, Chapters 3.1, 22, 23.2, and 24, Code of Virginia.

A. Out of the amounts provided for the Virginia Water Facilities Revolving Fund, the Department of Environmental Quality may transfer $12,500 the first year and $10,000 the second year to the Town of Tangier for a comprehensive plan to clean up waste and ash piles found on the island and implement systems to assure compliance with state environmental protection requirements.

B.1.Out of the amounts for Environmental Financial Assistance, $200,000,000 the first year from the general fund shall be deposited in four equal quarterly installments to the Virginia Water Quality Improvement Fund established in Title 10.1, Chapter 21.1, Code of Virginia.  Any unexpended balances on June 30, 2007 and June 30, 2008 from the amount appropriated in this subparagraph shall not revert to the general fund but shall be carried forward and reappropriated.

2. The amount appropriated in subparagraph B.1. shall be used solely to finance the costs of design and installation of biological nutrient removal facilities or other nutrient removal technology at publicly owned treatment works designated as significant dischargers for compliance with the effluent limitations for total nitrogen and total phosphorus, as required by the tributary strategy plans or applicable regulatory requirements.  The Director of the Department of Environmental Quality is also authorized to make grants from the Virginia Water Quality Improvement Fund to private sewage treatment plants that are licensed by the State Corporation Commission as a public service corporation and that serve residential areas in the Shenandoah-Potomac River Basin with a design capacity greater than 4.0 million gallons per day. 

C.1. Out of the amounts for Environmental Financial Assistance, $17,000,000 the first year from the Water Quality Improvement Fund shall be provided as grants to local governments that are located outside the Chesapeake Bay watershed for:  1) the design and construction of mandated water quality improvement facilities at publicly owned treatment works for projects that would otherwise result in a financial hardship for the residential users of the facilities, based on the reasonable sewer cost guidelines established by the State Water Control Board for the Virginia Water Facilities Revolving Fund; 2) the correction of onsite sewage disposal problems; and 3) the development of comprehensive local and regional wastewater treatment plans, preliminary engineering, and environmental reviews.  The Department of Environmental Quality shall work with the Department of Housing and Community Development to develop appropriate criteria and guidelines for the use of this funding.  Any unexpended balances on June 30, 2007 and June 30, 2008 from the amount appropriated in this paragraph shall not revert to the general fund but shall be carried forward and reappropriated.

2.a.  Out of the amounts for Environmental Financial Assistance, $12,800,000 the first year from the general fund shall be deposited to the Virginia Water Quality Improvement Fund established under the Virginia Water Quality Improvement Act of 1997.  This appropriation meets the mandatory deposit requirements associated with fiscal year 2006 excess general fund revenue collections.  Notwithstanding the provisions of § 10.1-2128, Code of Virginia, the Director of the Department of Environmental Quality is authorized to use these funds as grants to local governments that are located outside the Chesapeake Bay watershed.

b.  Out of the amounts in this Item, $1,613,700 the first year from the general fund shall be deposited to the Virginia Water Quality Improvement Fund established under the Virginia Water Quality Improvement Act of 1997.  Of this amount, $85,545 shall be deposited to the Virginia Water Quality Improvement Fund Reserve pursuant to Item 356 of this act.

c.  The appropriations in subparagraphs C.2.a. and C.2.b., together the amount included in Item 358 of this act, meet the mandatory deposit requirements associated with FY 2006 excess general fund revenue collections and discretionary year-end general fund balances.

3.  Notwithstanding the provisions of § 10.1-2128, Code of Virginia, the Director of the Department of Environmental Quality is authorized to use $4,200,000 the first year from interest earned on the point source portion of the Water Quality Improvement Fund as grants to local governments that are located outside the Chesapeake Bay watershed.

D. Out of the amounts for Environmental Financial Assistance, $7,500,000$6,850,000 the first year and $6,000,000 the second year from the general fund shall be deposited to the Combined Sewer Overflow Matching Fund pursuant to § 62.1-241.12, Code of Virginia.  From this Fund, the City of Richmond shall receive $3,750,000 in the first year and $3,000,000 in the second year and the City of Lynchburg shall receive $3,100,000 in the first year and $3,000,000 in the second year.

E.  Out of the amounts appropriated for Environmental Financial Assistance, the Department of Environmental Quality shall provide $20,000 the first year and $20,000 the second year from the general fund to the Tri-County Lake Administrative Commission for water quality monitoring and analysis at Smith Mountain Lake.

F.  Out of the amounts appropriated for Environmental Financial Assistance, the Department of Environmental Quality shall provide $375,000 the first year from the general fund to the W.E. Skelton 4-H Educational Conference Center located in Franklin County.  The funds shall be used to match federal dollars to upgrade the Center's wastewater treatment facility.  As a condition for this assistance, the Center shall agree to assume the ongoing annual operating cost of the upgraded facility.