Georgia Water Supply Competitive Grant Program Program Guidelines

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1 Georgia Water Supply Competitive Grant Program Program Guidelines In March 008, the Georgia General Assembly approved and the Governor signed the amended state budget for Fiscal Year 008 (HB 989). The amended FY008 budget bill authorizes the Georgia Environmental Facilities Authority (GEFA) to provide $40 million in grant funding to local governments and water and sewer authorities to develop water supply projects. In response, GEFA has established the Georgia Water Supply Competitive Grant Program and has developed these program guidelines to govern the program. PURPOSE OF THE GEORGIA WATER SUPPLY COMPETITIVE GRANT PROGRAM The purpose of the Georgia Water Supply Competitive Grant Program is to assist local governments with their efforts to improve water supply in the state and make local water supply more resistant to periods of drought. ELIGIBILITY GEFA will consider four criteria in evaluating the eligibility of each proposed project: Entities Under this program, GEFA may provide funding to counties and municipalities and water and/or water and sewer authorities. Additionally, applicants must meet the following eligibility criteria: Only those counties and municipalities certified as Qualified Local Governments by the Department of Community Affairs (DCA) and the water and/or water and sewer authorities within those certified governments may receive grant funding under this program. Only applicants within counties that have current DCA-certified Service Delivery Agreements may receive grant funding under this program and the proposed project must be consistent with the verified strategy. Applicants must be in compliance with all State Audit Requirements. Communities within the Metro North Georgia Water Planning District must be certified by the Director of the Environmental Protection Division as either being in compliance or making a good faith effort to comply with all District Plans and/or enforcement measures. Projects Under this program, GEFA may provide funding for water supply projects, including (but not limited to): interconnection of systems, drilling new wells, reopening inactive wells, lowering intake structure/pipes, expanding existing water supply or flood control reservoirs, converting flood control or recreational reservoirs to water supply reservoirs or establishing new water supply reservoirs. GEFA may consider alternative water supply projects as well, on a case-bycase basis. Innovative Projects GEFA may make available a limited amount of funding for innovative water supply projects. The criteria for project selection (see Appendix) provide more information about these projects. 1

2 Activities Under this program, GEFA may provide funding for the following types of activities related to the development of water supply projects: Project design (provided that these costs are necessary for the construction of the water supply project defined in the application); Well drilling and rehabilitation and chemical feed structures; Land acquisition (needed for reservoir construction and buffer land); Stream or wetland mitigation; Grading; Site preparation; Dam design and construction; Master meters; Water transmission lines; Design and construction of intake structures and related piping for water treatment; and Water treatment plant cost if no cost-effective alternative exists for treating new water supply with existing treatment capacity. Timing Under this program, GEFA will only provide grant funding to eligible entities on a costreimbursement basis. GEFA will only provide reimbursement for eligible costs incurred after the date of the applicant s submission of an application for grant funding to GEFA. FUNDING AVAILABLE The amended FY008 budget bill authorizes GEFA to provide $40 million in grant funding to local governments and water and/or water and sewer authorities to develop water supply projects. GEFA expects to set-aside a limited amount of funds for support of innovative water supply projects. If, for any reason, GEFA does not award all available funding in response to the first round of grant applications, GEFA will hold a second round of grant applications. CRITERIA FOR PROJECT SELECTION See Appendix Georgia Water Supply Competitive Grant Program Round 1: Evaluation Criteria. GEFA will evaluate proposals based on all criteria met at the time of application. GEFA will evaluate and score all project applications submitted. GEFA will use the scoring to help rank projects within each of the three project categories. GEFA anticipates funding a combination of projects from the three categories shown in the evaluation criteria described in the Appendix. GEFA will determine the amount of funds to assign to each category after evaluation of the project applications. APPLICATION GUIDELINES AND REQUIREMENTS Applicants must use the Georgia Water Supply Competitive Grant Program Application form (available starting June, 008 at or can be requested by calling ). Application submitted by U.S. Mail must be postmarked no later than August 9, 008. Applications submitted by courier or in person must be received by GEFA by 5:00 p.m. on August 9, 008. Applications that fail to meet this deadline will not be considered. Applications by facsimile will not be accepted.

3 GRANT PROCESS AND TIMELINE As the grant program proceeds, GEFA may refine the program calendar. General dates include: Guidelines and Application Available to Prospective Applicants June, 008 Application Deadline August 9, 008 Application Review Period September, 008 GEFA Board Review - October 008 Final Awards Announced no later than November 008 GEFA reserves the right to amend this program calendar as needed. REQUIREMENTS FOR APPROVED PROJECTS Inspections & Monitoring - Applicant must permit GEFA and/or EPD to inspect the physical location of a project at any time during the construction period. Inspections will be conducted during regular business hours. Procurement - Procurement of construction contracts, construction services, materials, and equipment in GEFA financed projects must be public, open, and competitive, as defined by both State law and the procurement requirements of GEFA funding contracts. Funded construction must meet the requirements of both State law and GEFA funding contracts. PAYMENT Method of Payment - The method of payment will be on a reimbursement basis. Grant recipients will submit a reimbursement / drawdown form (provided by GEFA) to EPD, along with copies of all appropriate support documents, including invoices for eligible expenses. All reimbursements will be provided to grant recipients via electronic funds transfer. Release of grant funds - EPD will monitor construction and endorse GEFA payments in accordance with observed progress. Payments will be conditional on compliance with grant agreement requirements and applicable project approvals issued by EPD. To allow monitoring, the grant recipient must notify EPD prior to commencing construction. No Force Account Labor - GEFA will not allow force account labor costs to be paid with GEFA grant funds. Force account labor, for the purposes of this program is defined as any employee labor costs by employees of the jurisdiction receiving the grant. Applicant may use its own labor force for a project, but costs incurred for that force account labor are not reimbursable under this program. GEFA LOAN INFORMATION Applicants may also apply to GEFA for a loan to support a proposed water supply project. The minimum qualifications outlined in the evaluation criteria (see Appendix) clarify that applicants must provide a certain level of non-grant funding for proposed projects and that a loan from GEFA can qualify as non-grant funding. Any interested loan applicants should review GEFA s Georgia Fund policies and application, available at CONTACT INFORMATION For more information, please contact Kevin Kelly at GEFA kevin.kelly@gefa.ga.gov

4 APPENDIX GEORGIA WATER SUPPLY COMPETITIVE GRANTS PROGRAM - ROUND 1 PROPOSED EVALUATION CRITERIA Maximum Point Value = 0 base points plus 5 available bonus points All applications must be postmarked by August 9, 008 Category 1 Category Category (including interconnection of systems, drilling new wells, reopening inactive wells, lowering intake structures/pipes) (including expanding existing water supply or flood control reservoirs, converting flood control or recreational reservoirs to water supply reservoirs or establishing new water supply reservoirs) (including state-of-the-art water conservation initiatives, advanced leak detection, use of ecosystem services, replicable management practices for averting water supply emergencies, storm water treatment and recycling for water supply and grey water reuse) Minimum Qualifications Minimum Qualifications Minimum Qualifications 1) Applicant can demonstrate need for additional water supply ) Project conforms with applicant's regional Water Development and Conservation Plan once adopted ) Any applicant located within the Metro North Georgia Water Planning District is in compliance with all District Plans. 4) Applicant meets GEFA Applicant Requirements (listed at bottom) 5) Project's non-grant to grant funding ratio is a minimum of :1. Non-grant funding for purposes of this calculation can include loans (from GEFA or other), bond proceeds, tax revenue, land acquisition costs 1) Applicant can demonstrate need for additional water supply ) Project conforms with applicant's regional Water Development and Conservation Plan once adopted ) Any applicant located within the Metro North Georgia Water Planning District is in compliance with all District Plans. 4) Applicant meets GEFA Applicant Requirements (listed at bottom) 5) Project's non-grant to grant funding ratio is a minimum of :1. Non-grant funding for purposes of this calculation can include loans (from GEFA or other), bond proceeds, tax revenue, land acquisition costs 1) Applicant can demonstrate need for additional water supply ) Project conforms with applicant's regional Water Development and Conservation Plan once adopted ) Any applicant located within the Metro North Georgia Water Planning District is in compliance with all District Plans. 4) Applicant meets GEFA Applicant Requirements (listed at bottom) 5) Project's non-grant to grant funding ratio is a minimum of :1. Non-grant funding for purposes of this calculation can include loans (from GEFA or other), bond proceeds, tax revenue, land acquisition costs 4

5 Category 1 Category Category Preferred Qualifications Preferred Qualifications Preferred Qualifications READINESS & TIMELINESS (maximum of 5 points) Notice to Proceed Issued and Project Can Yield New Water Supply Within 18 Months From Time of Grant Award (Board action) Notice to Proceed With Construction Issued 5 0 READINESS & TIMELINESS (maximum of 5 points) 404 Permit Issued & Project Can Yield New Water Supply Within 18 months From Time of Grant Award (Board action) 404 Permit Issued & Dam Design Approved 5 0 OVERALL GEFA will evaluate applications for innovative projects that demonstrate new approaches for meeting water supply needs in Georgia. GEFA will evaluate this type of projects according to the following criteria: EPD Approval of Plans & Specifications Permit Issued 5 Innovativeness Completed test well with proven water quality and quantity & have acquired land 15 or, if no 404 permit, any below that apply Cost-effectiveness Completed test well with proven water quality and quantity 404 Permit Application Submitted Project entails raising existing dam or will make use of existing reservoir not used for water supply Wetlands / Stream Mitigation Plan Complete EPD 401 Certification Issued 8 Ability to meaningfully enhance Georgia's water supply or address a specific region s water supply needs, if replicated in the state Capable of being easily replicated in other parts of the state or a given region of the state EPD Water Withdrawal Permit Issued Ease of permitting & compliance MULTI-JURISDICTIONAL (maximum of points) MULTI-JURISDICTIONAL (maximum of points) Project benefits + Project benefits + Project benefits 6 Project benefits 6 *Benefit is defined as a direct or indirect benefit *Benefit is defined as a direct or indirect benefit 5

6 Category 1 Category Category PLANNING (maximum of 0 points) Demonstrated urgency for new water supply 1 PLANNING (maximum of 0 points) Demonstrated urgency for new water supply Proposed project is already part of applicant's existing water and sewer master plan 8 Proposed project is already part of applicant's existing water and sewer master plan 5 Capability to Increase Safe Water Supply Yield in Future Years Long-Term Source Water Protection Planning Demonstrated WATER MANAGEMENT EFFICIENCY (maximum of 0 points) WATER MANAGEMENT EFFICIENCY (maximum of 0 points) WaterFirst Designation 6 WaterFirst Designation 6 Calculated non-revenue water rate less than % in 007 Applicant's calculated 007 annual average residential use (per capita per day) Calculated non-revenue water rate less than % in 007 Applicant's calculated 007 annual average residential use (per capita per day) High-Efficiency Retrofit High-Efficiency Retrofit Rebate Program Rebate Program Conservation Kits distributed 1 Conservation Kits distributed 1 Conservation Rate Pricing 1 Conservation Rate Pricing 1 System-wide Water Audit System-wide Water Audit Water Reuse System in Place or Planned Water Reuse System in Place or Planned FINANCIAL LEVERAGE (maximum of 15 points) See minimum qualification #5 above for more information FINANCIAL LEVERAGE (maximum of 15 points) See minimum qualification #5 above for more information Leverage 4:1 or better 15 Leverage 5:1 or better 15 Leverage :1 Leverage 4:1 6

7 Category 1 Category Category IMPACT STATEMENT (maximum of 5 bonus points) GEFA will evaluate statement of impact from each applicant that addresses at least the following impact metrics: creation of passive recreational opportunities, jobs created or preserved by proposed project, project activities undertaken to achieve superior environmental performance (performance beyond that required for federal or state permitting). IMPACT STATEMENT (maximum of 5 bonus points) GEFA will evaluate statement of impact from each applicant that addresses at least the following impact metrics: creation of passive recreational opportunities, jobs created or preserved by proposed project, project activities undertaken to achieve superior environmental performance (performance beyond that required for federal or state permitting). GEFA Applicant Requirements All applicants must be designated as a Qualified Local Government by the Georgia Department of Community Affairs. Qualified Local Government status can be reviewed at: All applicants must be in compliance with all State Audit requirements. Compliance questions can be answered at: All applicants must provide documentation of a Service Delivery Strategy (HB 489) agreement and provide documentation that the proposed project is in compliance with the agreement. 7

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