STATE REVOLVING LOAN PROGRAMS

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1 STATE REVOLVING LOAN PROGRAMS PAST, PRESENT AND FUTURE Presented by Karol Patton Department of Environmental Quality February 5, 2019

2 STATE REVOLVING LOAN FUND FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Funds Awarded (Millions) Projects Funded

3 DRINKING WATER REVOLVING LOAN PROGRAM FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Funds Awarded (Millions) Projects Funded

4 FISCAL YEAR 2019 SRF Fundable Range $141.6 Million 17 Projects Green Project Reserve 6 Projects $2.3 Million Principal Forgiveness 4 Disadvantaged Communities $12.6 Million Principal Forgiveness DWRF Fundable Range $47.9 Million 5 Projects One Disadvantaged Community $4.7 Million Principal Forgiveness

5 2019 SRF FUNDING REQUIREMENTS Green Projects Principal Forgiveness Davis Bacon American Iron And Steel Qualifications Based Selection (QBS) Fiscal Sustainability Plan (FSP)

6 PILOT DRINKING WATER GRANT PROGRAM Received $9.5 Million For Grants Update Distribution System Inventory Update/Improve Asset Management Plans Lead Service Line Replacement 18 Small, Medium and Large Communities Located Throughout The State Received Grants

7 GRANT RECIPIENTS BATTLE CREEK $500,000 BENTON HARBOR $284,000 DETROIT $1,000,000 ESCANABA $389,000 EVART $433,000 GRAND RAPIDS $1,000,000 HUDSON $368,000 IRONWOOD $469,000 JACKSON $250,000 KALAMAZOO $1,000,000 LUDINGTON $469,000 MANISTEE $331,000 MT. CLEMENS $346,000 MUSKEGON $600,000 MUSKEGON HEIGHTS $318,000 OWOSSO $508,000 SAGINAW $963,000 ST. JOSEPH $272,000

8 STORMWATER, WASTEWATER & ASSET MANAGEMENT GRANT PROGRAM

9 SAW GRANT PROGRAM Majority Of Grant Applications are for Wastewater Asset Management Planning 3rd Round Ended November th Round Awarded Spring 2018

10 SAW GRANT PROGRAM 558 Of SAW Grants Have Been Awarded As Of Today 107 Of SAW Grants Have Been Completed Impact Of The Grant Program Inventory Of Assets Across The State Million Of Feet Of Sanitary and Storm Sewer Will Be Televised Over 480 WAMPs Completed Over 270 SWAMPs Completed

11 CONDITION ASSESSMENT Existing Sediment Levels 10-20% Compromised Assets

12 REVOLVING LOAN PROGRAMS LEAN PROCESS IMPROVEMENT (LPI) UPDATE

13 WHAT WE HEARD (INTERNAL/EXTERNAL) DEQ Staff Need To Be More Involved Early In The Process Customers Want To Know Changes Of Funding Before Putting So Much Effort In Up-front Easier Project Plan Development Process To Be Efficient With Time, Resources And Money Use AMPs, Master Plans, PER, etc.

14 WHAT WE HEARD CONTINUED Vary Loan Interest Rates Establish PPLs To Provide More Flexibility More Principal Forgiveness Update Scoring Process

15 THREE TEAMS Pre-planning Project Plan Changes Scoring, Funding Allocation and Project Priority List Timing Changes

16 RECOMMENDATION GROUP #1 Create an Intent-to-apply Form First Step In Process Clear And Simple Form, Gather Information To Guide Applicant In The Best Direction For Their Needs Implement Pre-application Meeting Bring DEQ-RLS, DEQ District Staff and Community Representatives Together Early In The Process

17 RECOMMENDATION GROUP #2 Traditional Project Plan To Be Replaced By Streamlined Planning Document Tiered and Tailored To Project Type and Potential Environmental Impact Certain Documents May Be Provided In Lieu And/Or In Support Of The Streamlined Planning Document, To Reduce Duplication Of Planning Efforts

18 RECOMMENDATION GROUP #3 Change/Update Project Scoring Criteria; Allow For Focus On Different Priorities Consider Changing The Timing Of Project Plan Submittals And PPLs Allow Project Plan Submittals Two Times A Year Review Loan Terms, Interest Rate, And Principal Forgiveness For Possible Improvements

19 LPI IMPLEMENTATION STATUS Legislation Was Introduction During The Last Legislative Session But Did Not Pass Intent-to-apply Form and Pre-application Meetings are Being Implemented Project Planning Recommendations are Undergoing Internal Review Opened Up A Second Call For Drinking Water Projects

20 OUTCOMES Received 22 Intent-to-apply Forms For SRF Projects Received 19 Intent-to-apply Forms For DWRF Projects Received 6 Intent-to-apply Forms For The Drinking Water Second Call

21 Karol Patton Acting Program Manager QUESTIONS? Revolving Loan Program

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