Transcript Drinking Water State Revolving Fund Program (DWSRF)

Vermont Drinking Water
State Revolving Fund
Intended Use Plan
American Recovery and
Reinvestment Act of 2009
1
DWSRF Program Contacts
Water Supply Division and Vermont Rural Water Association
 Eric Blatt (241-3425)
 Section Chief, Engineering and Financial Services
 Bryan Redmond (241-3408)
 Program Specialist
 Eric Law (241-4656)
 Project Development Specialist
 Ashley Lucht (241-3424)
 Capacity Development Specialist
 Ian Schrauf (800-556-3792 ext 321)
 VRWA DWSRF Technical Assistance Provider
2
DWSRF Agenda








ARRA Goals – Principally for Job Creation
and Job Preservation – Must Move
Projects Expeditiously
ARRA-Specific Provisions
Fund Distribution and Set-Asides
Priority Ranking System
Construction Project Priority List
Green Infrastructure
Remaining Steps to be taken
Questions and Comments
3
ARRA-Specific Provisions
(slide 1 of 3)
 February 17, 2010 Deadline for Contracts
 Goal of committing 50% of funds in 120
days
 Green Project Reserve (GPR)
At least 20% of funds ($3.9M) for GPR
Must reserve funds for 180 days (until
8/17/09)
4
ARRA-Specific Provisions
(slide 2 of 3)
Must provide at least 50% aggregate subsidy
(we intend to provide at least 57% subsidy
for each ARRA loan)
ARRA Subsidy to be in form of loan principal
forgiveness
Additional subsidy for those communities that
qualify for negative interest using current
method (max subsidy equivalent to ~ 75%
grant)
Additional Subsidy of 10% for Green
Infrastructure – additional loan forgiveness
5
ARRA-Specific Provisions
(slide 3 of 3)

Davis Bacon Wage Requirements Apply

Buy American Iron, Steel and Manufactured
Goods Provisions Apply

Other Related Program Changes –
Construction Contract Management and
Engineering Agreements
6
ARRA Available Funds

EPA Grant = $19,500,000

No State Match Required for ARRA Funds
7
ARRA
Tentative Fund Distribution

Loans

Set-Asides
$17,355,000
$2,145,000
8
Set-Aside Fund Distribution
DWSRF Set-asides for FFY 08
Set-aside (Maximum %)
Administration (4%)
Funds
Available
$780,000
Grant
Request
$780,000
Technical Assistance (2%)
$390,000
$390,000
$1,950,000
$975,000
$0
$0
$3,120,000
$2,145,000
Program Management (10%)
Local Assistance (Not allowed)
Totals
9
Set-asides:
Administrative
 DWSRF Program Staff (may increase staffing)
 FED/DWSRF Support (may increase staffing)
 Financial Administrative Support Includes









VMBB (may include application assistance)
Financial and Program Audits
VEDA
Other Operational Costs
On-site assistance
Archeological Services
Legal Services
DWSRF assistance
Contracts with Technical Assistance Providers
10
Priority Ranking System








Preference given to quick start projects
System Facility Deficiencies
Weighting factor of 1.2 for small water systems
serving sensitive sub-populations
Physical System Consolidation
Financial Need/Affordability
Population
Downtown Center Preference
Security
11
Current Funding Estimate
ARRA Project Priority List

$17.355M available for construction projects
this funding cycle

Priority List divided into 2 groups

Fundable list consisting of 46 projects
 Non Fundable list consisting of 99 projects

Total need is roughly $120M
12
Green Infrastructure

Water Efficiency


Water meters if not currently used
Energy Efficiency


Mechanical upgrades such as VFDs for pumps and
blowers
Water facility building envelope improvements

Green Technology
 Environmentally Innovative Projects

Solar powered mixing system
13
The Business Case
 A case needs to be made for traditional projects that
claim green components
 To make the case, a simple memo should include:
 Reference to engineering study/planning document
 Shows substantial water/energy saving benefits
 Look to EPA to define ‘substantial’, but may become
State’s discretion
 Projects meeting categorical criteria for green
projects do not need to make a case
14
Business Case Example
 Water Line Replacement
 Water efficiency
Community ID’s substantial leak in system
Green credit applies to that part of the project
 Energy efficiency
PER determines pipe condition is driving pumping
inefficiencies
Green credit applies to replacement of that section of
deteriorating pipe
15
One Example of Green
Technology
Photo courtesy of Engineering Ventures, Inc.
16
Recent Changes to Draft
IUP/Priority List

Changes are anticipated to both IUP and
Priority List

Division will direct-solicit green projects to
meet 20% Green Project Reserve

Final IUP and Priority List will reflect those
changes
17
What’s Next?
 Written comment period was to end March 27,
2009, but is being extended an additional week
 Grant Application was submitted and we are
awaiting award of the funds from EPA
 State legislation needed to enable the amount and
method for providing subsidy
 Anticipate legislation by early May 2009
 If all falls into place, funds may be available by mid
to late May 2009
18
Questions and
Comments
19