State Revolving Fund Program James Dailey Chief SRF

State Revolving Fund Program James Dailey, Chief SRF Section Alabama Department of Environmental Management adem. alabama. gov

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. adem. alabama. gov

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 adem. alabama. gov

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 adem. alabama. gov

SRF Advantages • Use the engineer of your choice • Grant match for CDBG, SPAP, or USDA Easiest government assistance program for water and wastewater projects adem. alabama. gov

SRF Drawbacks • • Annual cycle Limited funding available Funds are reimbursed Design must be near complete at application stage • Cross-cutters • Davis-Bacon wage rates adem. alabama. gov

SRF Drawbacks • Like all other federally-funded programs, MBE/WBE (DBE) rules apply. • Project must clear an environmental review adem. alabama. gov

DWSRF Eligible 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 adem. alabama. gov

Not Eligible - DWSRF • • • Dams, reservoirs, and water rights Growth Fire protection Non-viable PWS systems O & M expenses Land purchase adem. alabama. gov

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). adem. alabama. gov

The New CWSRF Not just POTW’s! Now eligible: • Non-point source • Estuary projects • Agricultural runoff • And more (must have water quality benefits) adem. alabama. gov

SRF History SRF Loans CWSRF – 221 loans totaling $1. 15 Billion since 1989 DWSRF – 141 loans totaling $336 Million since 1999 adem. alabama. gov

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 adem. alabama. gov

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% adem. alabama. gov

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 adem. alabama. gov

Green Projects CWSRF Green Infrastucture • • Green streets and parking Stormwater harvesting and reuse Riparian buffers Streambank restoration adem. alabama. gov

Green Projects Water and energy efficiency • • • Specific water meters SCADA Renewable energy components Sustainability plans Water reuse Energy audits and studies adem. alabama. gov

SRF Timeline • Preapplication due by December 31 st (new form) • If selected for funding, a full application is due by May 1 st • The project must clear an environmental review process and credit review • Loans close late summer and fall adem. alabama. gov

ADEM State Revolving Fund Website www. adem. alabama. gov • • • Regulations SRF General Information Pre-Applications Full Applications Supplemental General Conditions SRF Reports adem. alabama. gov

SRF Future? Funding Expect cut in Cap Grant in 2013 Green Infrastructure minimum not required? Principal Forgiveness? Davis-Bacon Wage Rates adem. alabama. gov

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 adem. alabama. gov

adem. alabama. gov