Mass DEP Municipal Services Drinking Water State Revolving

Mass. DEP Municipal Services Drinking Water State Revolving Fund Ashraf Gabour Program Manager CERO/SERO

Jointly Administered Water Pollution Abatement Trust Mass. DEP Sue Perez Steven Mc. Curdy Nate Keenan Joe Delaney Heather Saxelby O’Donnell John Felix

DWSRF Purpose • The Safe Drinking Water • Act, as amended in 1996, established the Drinking Water State Revolving Fund to make funds available to drinking water systems to finance infrastructure improvements. App. $80 Million in financing offered to communities yearly.

Traditional DWSRF projects • Water Treatment Plant improvements • Distribution System improvements • Water Storage facilities NOTE: DWSRF is a financing source, not a regulatory program. If a project is permissible under statutes or regulations, it can be financed with DWSRF.

Non-traditional DWSRF projects • Energy efficiency within system • Renewable Energy at WTF • Water System Planning NOTE: DWSRF is principally concerned with public health, but CWSRF can finance any water quality improvement project. CWSRF is therefore often a better solution for issues like recharge, stormwater management, etc.

DWRSF Schedule Two year time line • Project Evaluation Form (PEF): August 15 2014 • Projects are ranked by Mass DEP: Fall 2014 • Mass DEP publishes Intended Use Plan (IUP): March, 2015 • Local Authorization (Town Meeting/City Council): June 30, 2015 • Submitting Loan Application to DEP: October 15, 2015 • Project Approval Certificate (PAC) Mass. DEP: December 30, 2015 • Commence of Construction: June 30, 2016

Ranking of Projects (PEF) Rank Description Tier 1 Projects that are proposing to correct a serious existing problem with the water supply or addresses water supply issues that are showing evidence of becoming serious and will likely exceed a standard or compromise the use of a water supply if not corrected. Exceedance of an MCL, TT, MRDL, Action Level, and/or Mass. DEP ORSG Level. Tier 2 Projects that are being undertaken to prevent a potential serious threat to a major water system component. Tier 3 Projects are those undertaken to address exceedances of Secondary Maximum Contaminant Levels (SMCL) that compromise the potability of a water supply. Tier 4 Projects that are proposing to upgrade/rehab/replace water supply infrastructure components that are approaching or have passed their planned useful life-cycle Tier 5 Infrastructure components that have an indirect connection to providing safe drinking water (fencing, meters, etc. )

Why Borrow From the Trust • Benefits of Using the Trust What does the 2% rate mean for your community? • On an average $5 m loan the community would save $738, 144 over the life of the loan (using current market rates) 2% Loan vs Market Rate $2, 000 $1, 863, 580. 00 $1, 800, 000 $1, 600, 000 $1, 400, 000 $1, 125, 436. 00 • • Equates to a 40% interest subsidy $1, 200, 000 $1, 000 Savings generated through economy of scale • • • $800, 000 $600, 000 Underwriters fees FA fees Bond Counsel fees $400, 000 $200, 000 $0 2% Trust Loan Market Rate Loan

Loan Terms and Fees Clean Water Drinking Water Interim Loan Rate 2% (20 Years) Calculated (30 Years)* 2% ½ MMDT Rate (0. 10%) Max. Term 30 years 20 years 1 year Admin Fee 0. 15% N/A Effective Loan rate 2. 15% (20 Years) 2. 15% N/A Origination Fee (one-time) Approx. $7. 50/$1, 000** Approx. $7. 50/$1, 000 $500 -$1, 000 * Rate calculated at time of bond sale, estimated between 2. 4 -2. 9% ** To be determined at time of bond sale to offset costs

• Borrower Loan Application • Due to Mass. DEP October 15, 2015 Loan Application has three parts 1. Applicant Information - Authorized Representative, Local Appropriation etc. 2. Project Requirements - Plans and Specifications, Cost, Schedule, etc. 3. Supplemental Requirements - Permits, Planning, Professional Services Agreement, etc.

Application Requirements • Certificate of Title • MEPA • Historic Preservation • Conservation Commission • Flood Insurance • DW Permits

Mass. DEP Project Approval Certificate (PAC) • PAC Issued by Mass. DEP to the MWPAT • A copy is sent to Community • PAC certifies project eligibility, costs, and lists conditions

• Before bidding, Mass. DEP must give “Permission to Advertise” • Bid Specs/Contracts must be approved by Mass. DEP • Mass. DEP Civil Rights Section reviews and approves DBE participation • Mass. DEP reviews bid results and issues “Authorization to Award”

Mass. DEP Project Regulatory Agreement (PRA) • Contract between Mass. DEP and Borrower • Establishes Mass. DEP control over project • • • Outlines project eligibility and funding Establishes disbursement procedures Loan closeout process Legal requirements of Borrower Discusses project defaults and how to remedy

• Disbursements Proceeds of the loan are generally disbursed to the community monthly • “Payment Requisition” is completed by the community and forwarded to Mass. DEP with the appropriate documentation • Mass. DEP reviews the request and approves eligible costs • Mass. DEP forwards the request to the MWPAT • MWPAT wires to borrower every Thursday with funds often available the next day

DWSRF Contact information http: //www. mass. gov/dep/water/wastewat. htm#dwsrf Financial • Sue Perez 617 -367 -9333 x 816 • Nate Keenan 617 -367 -9333 x 508 • Heather Saxelby O’Donnell 617 -367 -9333 x 584 Program • Steve Mc. Curdy 617 -292 -5779 • Joe Delaney 617 -292 -5808 • John Felix 617 -292 -5523 • Ashraf Gabour 617 -556 -1076