State Revolving Fund Program James Dailey, Chief SRF Section Alabama Department of Environmental Management
What is the SRF? The Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF) are low interest loan programs intended to finance public wastewater and drinking water infrastructure improvements in Alabama. The programs are funded with a blend of state and federal funds.
Eligible Entities Only available to public entities including municipalities, utility boards and water and sewer authorities Project must rank high on priority list The applicant must demonstrate an ability to repay Projects must clear Environmental review
SRF Advantages Loan interest rate Fixed interest rate with a 20-year term Level debt service Repayment does not begin until construction completion No trustee or rebate fees No closing costs
SRF Advantages Use the engineer of your choice Grant match for CDBG, SPAP, or USDA Easiest government assistance program for water and wastewater projects
SRF Drawbacks Annual cycle Limited funding available Funds are reimbursed Design must be near complete at application stage Cross-cutters Davis-Bacon wage rates
SRF Drawbacks Like all other federally-funded programs, MBE/WBE (DBE) rules apply. Project must clear an environmental review
DWSRF Eligible Projects Projects that strengthen compliance with Federal And State regulations and/or enhance protection of public health New or upgraded water treatment plants Drinking water storage facilities Source water (wells/surface) Water transmission/distribution mains System consolidation projects
Not Eligible - DWSRF Dams, reservoirs, and water rights Growth Fire protection Non-viable PWS systems O & M expenses Land purchase
CWSRF Eligible Projects POTW s New or upgraded treatment Collection system rehabilitation/upgrade Pumping stations Sludge handling/treatment Growth projects (OK for now) Land is eligible only if integral to treatment (constructed wetlands, land application).
The New CWSRF Not just POTW s! Now eligible: Non-point source Estuary projects Agricultural runoff And more (must have water quality benefits)
SRF History SRF Loans CWSRF 221 loans totaling $1.15 Billion since 1989 DWSRF 141 loans totaling $336 Million since 1999
New for SRF in 2012 TVA Grant - $1,120,000 Requires a 50% SRF matching loan Project must be an energy efficiency project at a WTP or WWTP Will continue for 2013 and 2014
SRF for 2012 Annual Capitalization Grant CWSRF - $15,803,000 DWSRF - $11,125,000 2012 Requirements Green Projects (CWSRF Only) Principal Forgiveness Davis-Bacon Wage Rates Disadvantaged Business Enterprise 2012 Interest Rate 2.75%
Green Project Reserve CWSRF Only 10% of the EPA Grant funds must be applied to Green projects Green infrastructure, water and energy efficiency and environmentally innovative projects
Green Projects CWSRF Green Infrastucture Green streets and parking Stormwater harvesting and reuse Riparian buffers Streambank restoration
Green Projects Water and energy efficiency Specific water meters SCADA Renewable energy components Sustainability plans Water reuse Energy audits and studies
SRF Timeline Preapplication due by December 31st (new form) If selected for funding, a full application is due by May 1st The project must clear an environmental review process and credit review Loans close late summer and fall
ADEM State Revolving Fund Website www. Regulations SRF General Information Pre-Applications Full Applications Supplemental General Conditions SRF Reports
SRF Future? Funding Expect cut in Cap Grant in 2013 Green Infrastructure minimum not required? Principal Forgiveness? Davis-Bacon Wage Rates
For More SRF Information James Dailey, Chief SRF Section ADEM P.O. Box 301463 Montgomery, AL 36130-1463 Telephone: (334) 271-7805 Email: jwd@adem.state.al.us Web: www.adem.state.al.us