Section 1776.12 - Use of DWS Grant proceeds(a) Except as otherwise provided in the next paragraph. The DWS grant process shall be used solely for the purpose of providing loans to eligible individuals for the construction, refurbishing, and servicing of individual decentralized water systems in rural areas that are or will be owned by the eligible individuals.(b) A grant recipient may use DWS grant funds to pay administrative expenses associated with providing the assistance described in the immediately preceding paragraph.(c) A grant recipient may not use grant funds in any manner inconsistent with the terms of the grant agreement.(d) In the event of ground well water contamination, the Secretary shall allow a loan or subgrant to be made with grant funds under this section for the installation of water treatment where needed beyond the point of entry, with or without the installation of a new water well system.(e) Any entities responsible for fouling a drinking water supply are not eligible to be the recipients of an award for this program. 70 FR 28788 , May 19, 2005, as amended at 85 FR 23211 , Apr. 27, 2020