The Kentucky Infrastructure Authority (KIA) pursuant to KRS Chapter 224A funds the acquisition and construction of infrastructure projects as defined in KRS 224A.011(23) and owned by governmental agencies. The Authority also coordinates regional infrastructure planning to promote higher levels of technical, managerial and financial capacity of water based utilities. The Authority with the assistance of the Area Development Districts coordinates water and wastewater planning by the Area Water Management Councils. The Councils establish water planning areas, develop and maintain the regional water management plan and identify and prioritize water and wastewater projects, and provide system and project information to the Water Resource Information System (WRIS). KIA is responsible to operate, maintain and update the information database (Water Resource Information System) for statewide water and wastewater planning in accordance with KRS 224A.300. This database tracks, maps, and houses infrastructure project details for regional planning efforts and for utilities that are seeking funding. The Authority is administratively attached to the Department for Local Government.

KIA is the administrator for the US EPA's Clean Water and Drinking Water State Revolving Funds, and Commonwealth funded revolving loan and grant programs, and state appropriated line-item funding for various water and wastewater projects. Infrastructure funding substantially improves human and environmental factors and supports economic growth. For the federal programs, priority is given to projects to correct enforcement issues, consolidation or regionalization of facilities, and underserved/unserved areas of the Commonwealth. The Authority is administratively attached to the Department for Local Government.

The agency is authorized to issues notes and bonds to provide infrastructure financing for governmental agencies and to a limited extent investor-owned private utilities. The provisions of KRS 224A.165 dictate certain limits on the amount of notes and bonds the Authority can have outstanding. The purpose of the loans is to assist in financing the construction of infrastructure projects. The Authority also provides grants and subsidized loan incentives.

The following provides a description of the Authority's programs:

Fund A Clean Water State Revolving Fund (Base, Supplemental, and Emerging Contaminants) – Is a 20 or 30 year loan program for planning, design and construction of wastewater infrastructure projects, storm water projects and nonpoint source projects. Fund A also provides assistance to small communities in financing the preliminary costs prior to construction, commonly referred to as a Planning and Design loan. Planning and Design loans have a 5 year term and are set at the standard interest rate, and may be rolled into a subsequent construction loan.

Fund F Drinking Water State Revolving Loan Fund (Base, Supplemental, Lead Service Line Replacement, and Emerging Contaminants) – Is a 20 or 30 year loan program for planning, design and construction of water infrastructure projects that qualify under EPA requirements. Projects must be recommended by the Kentucky Division of Water in the Energy and Environment Cabinet from the Project Priority List and must be financially feasible as determined by KIA staff.

Fund B Infrastructure Revolving Fund – Is a low-interest state funded loan program that provides for construction or acquisition of infrastructure projects including water and wastewater. Loans are made to governmental entities that are unable to wholly finance a project through other public grant or loan programs, through commercial credit at reasonable rates, or from their own resources. The loans are offered at or below market interest rates for a term not to exceed 30 years. Grants are available, but are reserved for borrowers facing both a financial hardship and an extreme health hazard.

Fund B 2020 Program – This fund provides financing primarily for, but not limited to, water service projects. The fund promotes the merger and consolidation of systems, and encourages the increased financial, managerial, and technical capacity of systems to provide service.

Fund C Governmental Agencies Program – This program provides access to local governmental for funding at better terms than could be obtained on an independent basis. Loans are available at terms of up to thirty years for any eligible infrastructure project owned by governmental entities in the Commonwealth.

Infrastructure for Economic Development Funds – These funds were authorized by the 2006 and 2008 General Assembly for an array of water and sewer projects included in the Commonwealth budget by specific designation. The Authority coordinates the implementation process and provides project administration for the projects funded in these programs.

Local Government Economic Development Fund – (Coal Severance Tax Projects) – These funds were authorized by the 2014 General Assembly from the respective single county fund for projects in coal-producing counties. The Authority coordinates the process of implementation and provides project administration for the water and sewer related projects funded in this program. The program is administered jointly with the Department for Local Government.

Cleaner Water Program Fund – This program was funded by federal appropriation through the American Rescue Plan Act (ARPA). Funds were made available to utilities within counties, based on county population through appropriations in the 2021 and 2022 sessions of the General Assembly. Funding must be fully expended by recipients by December 31, 2026.