11

Vermont Drinking Water State Revolving Fund

Intended Use Plan American Recovery and

Reinvestment Act of 2009

22

DWSRF Program ContactsWater 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

33

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

44

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)

55

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 forgivenessAdditional 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

66

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

77

ARRA Available Funds

EPA Grant = $19,500,000

No State Match Required for ARRA Funds

88

ARRA Tentative Fund Distribution

Loans $17,355,000

Set-Asides $2,145,000

99

Set-Aside Fund Distribution

DWSRF Set-asides for FFY 08

Set-aside (Maximum %) Funds Available

Grant Request

Administration (4%) $780,000 $780,000

Technical Assistance (2%) $390,000 $390,000

Program Management (10%) $1,950,000 $975,000

Local Assistance (Not allowed) $0 $0

Totals $3,120,000 $2,145,000

1010

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

1111

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

1212

Current Funding EstimateARRA 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

1313

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

1414

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

1515

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

1616

One Example of Green Technology

Photo courtesy of Engineering Ventures, Inc.

1717

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

1818

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

1919

Questions and Comments