Update: Clean Water State Revolving Fund Program (CWSRF) Construction Grants and Loans Section August 5, 2010
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1 Update: Clean Water State Revolving Fund Program (CWSRF) Construction Grants and Loans Section August 5,
2 Contacts at CG&L Daniel M. Blaisdell, Section Chief Mark Hubbard, Project Management Branch Michael Adamio, Planning and Administration Branch Kim Colson, Engineering Branch Seth Robertson, Design Management Unit Jennifer Haynie, Facilities Evaluation Unit Contact information is on CG&L s web page 2
3 Overview Programmatic Changes New Intended Use Plan Engineering Report Guidance Looking Ahead 3
4 Programmatic Changes Internally Expand SRF Program EPA Interest Expand SRF Program DWQ Strategic Plan ARRA Introduces principal forgiveness (PF) Introduces green project reserve (GPR) Time limited 4
5 Programmatic Changes 2010 Capitalization Grant Continues idea of PF Continues idea of GPR Hints of sustainability Substantial increase in funding 5
6 Programmatic Changes Capitalization Grant Incl. State Match (in Million $) 6
7 Programmatic Changes Other considerations: State Water Infrastructure Commission Program Evaluation Division (Legislative) Report Legislative Study Commission on Water and Wastewater Infrastucture Credit market tightening 7
8 Overview Programmatic Changes New Intended Use Plan Engineering Report Guidance Looking Ahead 8
9 Intended Use Plan (IUP) Covers 2009, 2010 Capitalization Grants and Repayments First Round Availability = +/ $60 Million Next Few Slides Address: New Loan Limits For 2010 Grant Principal Forgiveness (PF) and Green Project Reserve (GPR) New Prioritization System New Process Timeline 9
10 IUP Loan Limit Changes Maximum Project Loan Amount Now $25M No More Than $50M in Outstanding CWSRF Debt 10
11 IUP Principal Forgiveness 2010 PF $5,507,429 (statutory minimum) $10M (program maximum). PF Eligibility Less than 10,000 customers. Minimum combination of user rates/mhi and poverty rate points Differs from ARRA 11
12 IUP Principal Forgiveness PF Provisions: Similar to ARRA with 50% of loan amount forgiven, but with a $1M maximum of PF per project Not available for green projects 12
13 IUP Green Project Reserve 2010 GPR Statutory minimum of $7,354,600 GPR Provisions Maximum of $2M per project loaned at 0% interest Excess of $2M loaned at prevailing CWSRF interest rate (currently 2.22%) Project must be green 13
14 IUP Priorities Four Areas for Points Project Type Environmental Management Financial Guidance on CG&L s web page 14
15 IUP Process Changes Goals Fund more projects, faster (places burden on CG&L and owners/engineers) Move to a competitive process Increase quality of applications Increase quality of funded projects (i.e., higher scoring) 15
16 IUP Process Changes Application Accepted Twice / Year Prioritize Notify of Intent to Fund Engineering Report/Environmental Information Document Permitting Contracting 16
17 IUP Process Changes Schedule for Funded Projects That Must Be Met (by both CG&L and applicant) Applications Intent to Fund (1 month) Engineering Report/EID (9 months) Permitting (18 months) Under Construction Contract (22 months) 17
18 Engineering Reports (ER) Develop New Guidance Provide specific guidance for specific project types Streamline guidance where possible Clarify expectations to all (applicants / consultants / staff) Reviewability 18
19 Engineering Reports (ER) Eight Specific Project Types Covered 1. WWTP Construction (new / expanding) 2. Collection system construction (new / expanding) 3. Collection system rehab 4. WWTP equipment replacement 5. Reclaimed water 6. Stormwater 7. Stream restoration 8. Energy efficiency 19
20 Looking Ahead Finalize Guidance Documents in August (undergoing both internal and external review) Initial Funding Application Round (Sept 1) Davis Bacon Act required: ARRA 2010 Federal Fiscal Year Future? 20
21 Looking Ahead Draft 2011 Appropriations Bill Continues PF and GPR Reauthorization of CWSRF Pending (for awhile) Slightly Increases Allocation Both 2011 Appropriations and Reauthorization Propose Increase Funding 2012 Needs Survey 21
22 Looking Ahead CWSRF Reauthorization? (in Million $) 22
23 Intended Use Plan: cwsrf/iup Application and Forms: apps CG&L Contact Information: acts 23
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