DRINKING WATER TREATMENT REVOLVING FUND (DWTRF) LOAN PROGRAM STIMULUS EDITION

1. DRINKING WATER TREATMENT REVOLVING FUND (DWTRF) LOAN PROGRAMSTIMULUS EDITION Region 3Workshop March 24, 2009 Presented by Bob DeCrease Bureau for Public Health

2. 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

3. 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.)

4. 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

5. 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

6. 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

7. 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

8. DWTRF Loan Application

9. DWTRF Health/Compliance

10. DWTRF Health/Compliance

11. DWTRF Ready to Proceed

12. 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

13. 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

15. For More Information Bob DeCrease Capitol and Washington Streets 1 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