(a) Use.--Proceeds of borrowing shall be deposited in a special fund in the State Treasury and shall be used for grants and loans by the Pennsylvania Infrastructure Investment Authority for projects.(b) Appropriation.--The proceeds of all bonds sold under this act are hereby appropriated on a continuing basis to the Pennsylvania Infrastructure Investment Authority for the purpose of making loans and grants under this act.(c) Borrowing authorized.--Pursuant to section 7(a)(3) of Article VIII of the Constitution of Pennsylvania, the issuing officials are authorized and directed to borrow, on the credit of the Commonwealth, money not exceeding in the aggregate $400,000,000 in increments of not more than $150,000,000 every year over a three-year period after the effective date of this section.(d) Grant limitations.--(1) The aggregate amount of grants awarded under this section shall not exceed $200,000,000.(2) The board shall have no power to award any grant, loan or combination thereof that exceeds the following monetary limits:(i) For a sewage treatment system that has an annual average daily flow greater than 100,000,000 gallons per day or a water system that serves a population greater than 300,000 people, $50,000,000.(ii) For a sewage treatment system that has an annual average daily flow greater than 50,000,000 gallons per day but less than 100,000,000 gallons per day or a water system that serves a population between 100,000 and 300,000 people, $35,000,000.(iii) For a sewage treatment system that has an annual average daily flow greater than 20,000,000 gallons per day but less than 50,000,000 gallons per day or a water system that serves a population between 10,000 and 100,000 people, $25,000,000.(iv) For a sewage treatment system that has an annual average daily flow greater than 10,000,000 gallons per day but less than 20,000,000 gallons per day or a water system that serves a population between 3,301 and 10,000 people, $20,000,000.(v) For a sewage treatment system that has an annual average daily flow greater than 1,000,000 gallons per day but less than 10,000,000 gallons per day or a water system that serves a population between 501 and 3,300 people, $15,000,000.(vi) For a sewage treatment system that has an annual average daily flow less than 1,000,000 gallons per day or a water system that serves a population less than 500 people, $10,000,000.(3) Notwithstanding the provisions of paragraph (2), the board, by a vote of at least nine members, may authorize a grant in excess of the limits established in paragraph (2) to comprehensive projects providing or proposing consolidated service to a region encompassing all or parts of two or more municipalities.(4) Proceeds from the bond issued under this act may be used for grants or loans to assist a public utility to acquire a small sewer utility or small water utility as defined under 66 Pa.C.S. § 529 (relating to power of commission to order acquisition of small water and sewer utilities) if both of the following apply:(i) The Pennsylvania Public Utility Commission has determined that the small sewer utility or small water utility has provided unsafe, inadequate or unreasonable service.(ii) The Pennsylvania Public Utility Commission has assessed civil penalties against the small sewer utility or small water utility.(e) Construction.--Nothing in this act shall prohibit the use of funds allocated under the provisions of this act for projects involving the purchase or trading of nutrient credits.2008, July 9, P.L. 915, No. 64, § 8, imd. effective.