110 STAT. 1668 PUBLIC LAW 104-182—AUG. 6, 1996 Publication. the State agency having primary responsibility for administration of the State program under section 1413, after consultation with other appropriate State agencies (as determined by the State): Provided, That in nonprimacy States eligible to receive assistance under this section, the Governor shall determine which State agency will have authority to establish priorities for financial assistance from the State loan fund. "(2) COST OF ADMINISTERING FUND. —Each State may annually use up to 4 percent of the funds allotted to the State under this section to cover the reasonable costs of administration of the programs under this section, including the recovery of reasonable costs expended to establish a State loan fund which are incurred after the date of enactment of this section, and to provide technical assistance to public water systems within the State. For fiscal year 1995 and each fiscal year thereafter, each State may use up to an additional 10 percent of the funds allotted to the State under this section— "(A) for public water system supervision programs under section 1443(a); "(B) to administer or provide technical assistsince through source water protection programs; "(C) to develop and implement a capacity development strategy under section 1420(c); and "(D) for an operator certification program for purposes of meeting the requirements of section 1419, if the State matches the expenditures with at least an equal amount of State funds. At least half of the match must be additional to the amount expended by the State for public water supervision in fiscal year 1993. An additional 2 percent of the funds annually allotted to each State under this section may be used by the State to provide technical assistance to public water systems serving 10,000 or fewer persons in the State. Funds utilized under subparagraph (B) shall not be used for enforcement actions. "(3) GUIDANCE AND REGULATIONS. — The Administrator shall publish guidance and promulgate regulations as may be necessary to carry out the provisions of this section, including— "(A) provisions to ensure that each State commits and emends funds allotted to the State under this section as efficiently as possible in accordance with this title and applicable State laws; "(B) guidance to prevent waste, fraud, and abuse; and "(C) guidance to avoid the use of funds made available under this section to finance the expansion of any public water system in anticipation of future population growth. The guidemce and regulations shall also ensure that the States, and public water systems receiving assistance under this section, use accounting, audit, and fisced procedures that conform to generally accepted accounting standards. "(4) STATE REPORT. —Each State administering a loan fund and assist£ince program under this subsection shall publish and submit to the Administrator a report every 2 years on its activities under this section, including the findings of the most recent audit of the fund and the entire State allotment. The Administrator shall periodically audit all State loan funds established by, and all other amounts allotted to, the States
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