SECTION 1.

Section 6 of Chapter 29C of the general laws, as appearing in the 2010 Official Edition, is hereby amended by adding the following subsection:-

(6) No later than February 1, 2014, the department and board, with input from the division of local services, shall establish and publish guidelines for best management practices in water management. Said guidelines shall include but not be limited to the practice of full cost pricing including which direct and indirect costs shall be included in full cost pricing, sound financial management, the use of a stormwater enterprise fund, and the adoption of an asset management plan. The demonstration of adoption of said best management practices shall be considered favorably in decisions about funding as provided for in this section. Projects involving multiple municipalities shall be given preference in decisions about funding as provided for in this section.

SECTION 2.

Section 18 of Chapter 29C of the general laws, as so appearing, is hereby amended by adding at the end of subsection (d), the following sentence:-

The Drinking Water Revolving Fund shall be subject to subsection (6) of section 6 of Chapter 29C of the general laws.