DRINKING WATER TREATMENT REVOLVING FUND

(DWTRF) LOAN PROGRAMSTIMULUS EDITION

Region 3WorkshopMarch 24, 2009

Presented byBob DeCrease

Bureau for Public Health

DWTRF Loan Program

What is the DWTRF Loan Program 39 loans totaling $66,463,309 provided to-date for

water projects 9 pending loans totaling $34,341,360 committed Over $20 Million requested in loans for next year

funding Will be awarded $8.4 Million EPA funds end of

September Affordable design loans are available through the

DWTRF Deferred repayment loans available to make projects

affordable

DWTRF Loan Program Typically obtains $5,650,000 in EPA funds matched with $1,650,000

of state infrastructure funds for a total of $7,300,000 annually Repayments of existing loans add $2,400,000 per year Projects must be approved by the Infrastructure Council 15% of funds must go to small systems (<10,000 people) 30% of funds must go to disadvantaged systems

(User rates > 1.50% MHI /4,000 gallons) Water systems must apply to the DWTRF Program to be placed on the

Project Priority List (PPL). PPL project ranking is based on public health benefit (0 to 50 pts.) compliance with SDWA (0 to 20 pts.) affordability of the project (0 to 30 pts.)

DWTRF Loan Program Standard DWTRF Loan rates and terms

Disadvantaged water systems (User rates > 1.50% MHI/4,000 gal) 0% interest plus 1% administrative fee for 30 years

Non-disadvantaged water systems (User rates < 1.50% MHI) 2% interest plus 1% administrative fee for 20 years

No interest charged during construction Repayments start 3 to 6 months after project completion A Capacity Development Assessment to determine system’s financial,

managerial, and technical capacity is completed No penalties for early payoff of loan Disadvantage Business Enterprise Good Faith Efforts must be

followed

DWTRF Loan Program American Recovery and Reinvestment (ARRA) affect on

the DWTRF Loan Program One time additional loan funds totaling $19,250,000 will be

provided for water projects $250,000 reserved for project administration ARRA PPL contains 84 projects requesting over $214 Million Loan commitments will be based on the PPL rankings but projects

will be by-passed pending “readiness to proceed” status A Readiness to Proceed checklist has been established to aid the

by-pass process Water systems will be responsible to update the checklist when an

additional milestone is completed Goal of the ARRA is to get projects to construction as soon as

possible

DWTRF Loan Program American Recovery and Reinvestment (ARRA)

affect on the DWTRF Loan Program (Continued) At least 50% of the ARRA must be provided in the

form of grants, debt forgiveness, or negative interest At least 20% of the ARRA must be to water systems

that qualify for Green Infrastructure Projects funded by ARRA must only use American

made iron, steel, and manufactured goods Loan closings for all ARRA projects must be

completed by February 17, 2010 Davis-Bacon Act wage rules at a minimum will apply

to all funding assistance

DWTRF Loan Program American Recovery and Reinvestment (ARRA)

affect on the DWTRF Loan Program (Continued) Loan terms will focus on negative interest rates Negative interest rates will provide flexibility without

the burden of federal grant requirements DWTRF funds may replace other agency funds such as

Infrastructure Council or Small Cities Block Grants The administrative fee (1%) will be waived for

disadvantaged projects Design loans will not be eligible for ARRA funds

DWTRF Loan Application

DWTRF Health/Compliance

DWTRF - Priority Ranking Worksheet System Name:

Project Title:

Mark an X by any/all that describe your systems specific issues. Acute health hazards such as: Chronic health hazards such as: Nitrate or nitrite MCL exceedance Lead or Copper MCL exceedance

Turbidity or microbiological exceedance Turbidity or microbiological exceedance

No filtration for surface water plants Primary organic or radiological MCL exceedance

No disinfection for water system New/revised treatment technologies

Water outages lasting 1 week or longer

Water outages lasting several days up to 1 week

DWTRF Health/Compliance Periodic health hazards such as: Potential health hazards such as: Low chlorine residual concentration Poor water quality or limited quantity

Occasional primary MCL exceedance New source to augment existing sources

Water outages lasting 1 day to several days Install/upgrade waste disposal facilities

Bringing facilities up to current design standards

Regulatory compliance such as: Needed system improvements such as:

Administrative orders, agreements, statutes, or regulatory deadlines

Obsolete, undersized, malfunctioning, or leaking equipment or lines

Sanitary survey recommendations, NPDES permits, new regulations, or design standards

Poor aesthetic quality of water (e.g. iron, manganese, taste, & odor)

Future proposed regulations

Extensions with documented cases of fecal coliform

Description of Public Health/Compliance Issues & Project Scope To Correct the Issues:

DWTRF Ready to ProceedCheck the appropriate answer for each item:

Complete Incomplete Not

Applicable

FONSI or CE issued by Health Department (Attach cover letter)

Preliminary Title Opinion (Attach if complete)

Final Title Opinion (Attach if complete)

Health Department Permit (Attach if complete)

Design Loan / Grant (Attach summary page(s) of agreement)

80% of User Agreements (Attach listing of all users and status of agreement)

Other Committed Funds (Attach Commitment letters)

List Sources and Amounts:

1

2

3

Rule 42 covering the project costs (Attach CPA cover letter for Rule 42)

Rate Ordinance / 19A Rate Case (Attach ordinance or PSC final order)

PSD Boundary Adjustment (Attach authorization letter from County Commission)

Contract Bids advertised (Send copy of advertisement). If not, when are bids planned to be advertised: ______________________

Contract Bids in hand (Send copy of bid tabs). If not, when will bids planned to be in hand:______________________

What is DBE? EPA funding requires compliance with the Good Faith Efforts for

Disadvantaged Business Enterprises (DBE) (includes Women, Minority, and Small companies)

What are the DBE basic requirements Break the project or contract into smaller parts that could be sub-

contracted Obtain a list of DBE firms that perform the work in those smaller parts Provide DBE firms 2 weeks advance notice of advertisements Keep track of all DBE communications Evaluate any submitted DBE proposals for low bidder

It is not a requirement that a DBE firm must be used The objective is to provide DBE firms the opportunity to participate in

federal funds It is suggested that the Regional Planning & Development Councils be

used to assist in procurement of professional services

DWTRF DESIGN LOANS Emphasis for agency funding is now “Being Ready To Go” 100% of Design Engineering is eligible Bond Counsel is eligible up to $10,000 100% of Land/Right of Way, Legal, and Accounting fees are eligible Project Administration is eligible up to $10,000 Same loan terms and requirements as the construction program apply Can enable a project to proceed quickly to construction Every year of construction delay costs the water system 10 to 15%

additional capital cost due to inflation

For More InformationBob DeCrease

Capitol and Washington Streets1 Davis Square, Suite 200

Charleston, WV 25301-1798(304) 558-6749

robert.w.decrease@wv.gov

Website: http://www.wvdhhr.org/oehs/eed/i&cd