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Welcome!

Welcome!. Ecology’s WQ Financial Management Section Presents: FY 2010 Supplemental Funding Application Workshop For: Washington State Water Pollution Control Revolving Fund (Revolving Fund) Economic Recovery Funding through the American Recovery and Reinvestment Act of 2009. Welcome!.

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Welcome!

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  1. Welcome! Ecology’s WQ Financial Management Section Presents: FY 2010 Supplemental Funding Application Workshop For: Washington State Water Pollution Control Revolving Fund (Revolving Fund) Economic Recovery Funding through the American Recovery and Reinvestment Act of 2009

  2. Welcome! • Today’s Topics: • Recovery funding to the Revolving Fund Program • Recovery funding guidance • What to expect (application process) • Application overview and guidance • Discussion and question on project proposals

  3. This is a fast moving and evolving process and we are working hard to balance the conditions around these new federal funds with our existing rules and processes to develop a fair and equitable process and to ensure the best use of available dollars for important water quality projects.

  4. Agenda • Today’s Schedule: • 9:30 – 10:30 Recovery Funding Overview, • 10:30 Break • 10:45 - 12:30 Eligible Recovery projects and Requirements • 12:30 - 1:30 Lunch • 1:30 - 2:30 Application Overview • Review questions and scoring guidance • 2:30 - 3:30 Questions and Discussion • 3:30 Adjourn

  5. Review of Funding Information • Available on the back table: • PowerPoint Handout • FY 2010 Supplemental Funding Application • Economic Recovery Funding guidance • FY 2010 Funding Guidelines • Financial Hardship Analysis Form • FY 2010 procedures for ESA compliance

  6. Goals Water Quality Program Goals: To prevent and clean up water pollution To help communities make sustainable choices that reduce and prevent water quality problems To provide water quality partners with technical and financial assistance

  7. Recovery Funding Overview • Based on the availability of funds for the state’s Clean Water State Revolving Fund through theAmerican Recovery and Reinvestment Act of 2009 (ARRA) Ecology is now accepting additional applications under a FY 2010 Supplemental Application Cycle. • Applications will be accepted at Ecology’s Headquarters in Lacey through close of business 5:00 pm Friday March 13, 2009. • Supplemental applications are for the Revolving Fund loan program with a ready-to-proceed to construction emphasis

  8. Recovery Funding Overview • In October Ecology accepted applications for the FY 2010 funding cycle • Ecology published the Fiscal Year 2010 Water Quality Combined Draft Offer and Applicant List on January 15, 2009 • Supplemental applications will be rated and ranked based on the same application and criteria used for the existing draft list • A combined list of ranked applications will be developed by integrating Supplemental applications with the current ranked list • A Revised Draft List will be published • A two week public comment period will immediately follow the publishing of the Revised Draft List

  9. List Development Process State Fiscal Year 2010 Annual Water Quality Funding Cycle Process Steps Project Implementation 1-5 years AgreementDevelopment July 2009 – Jan 2010* Issue Final Offer List and Funding Letters July 1, 2009* Legislature Passes Budget CurrentStep Issue Draft Offer List (Starts 30-day Public Comment Period) Jan 15, 2009 Governor’s Proposed 2009-11 Budget Rating and Ranking Nov – Dec 2008 Application Submittal Sep 1 - Oct 31 2008 * Estimated Date Note: The next application period will begin Sept. 1, 2009 for the FY 2011 combined funding cycle FY 2011 Application Workshops -Sep 2009 Issue Revised Draft Offer List (Starts 2 week Public Comment Period) Apr 3, 2009* AARA Supplemental Application Process Feb 18 – Mar 13 2009 AARA Federal Recovery Funds Available 9

  10. 2009-11 Biennial Budget - Funding Summary a. Based on the Governor’s proposed FY 2009-11 Biennial Budget b. Estimated based on FFY 2008Congressional Budget c. Estimated based on the American Recovery and Reinvestment Act of 2009

  11. Proposed Recovery Funding Allocations Total funds expected for Washington State - approximately $70 million split into three categories: • 50% (approximately $35M) for subsidization to eligible applicants. • Ecology proposes making these funds available to qualified financial hardship recipients using current hardship determination and funding guidance. • Subsidy will be in the form of “forgivable principal”. • 30% (approximately $21M) for traditional revolving fund loans for water pollution control infrastructure construction projects. • 20% (approximately $14M) of for loans to address “green infrastructure, water or energy efficiency improvements or other environmentally innovative activities.” • Ecology proposes to offer these “Green” projects with 50% forgivable principal loans, based on eligible project costs. • $7 million would be available in forgivable principal

  12. Proposed Recovery Funding Ceiling Limits Not more than half (50%) of each category can go to any one applicant (using current funding program rule language) • Qualified Wastewater Facility Hardship Applicant – approximately $17.5 million maximum in forgivable principal, unless demand is limited (may be combined with water pollution control facility category) • Water pollution control facility construction loans – approximately $10.5 million maximum (may be combined with hardship assistance category) • Qualified Green Infrastructure Applicant – approximately $7 million in loan, maximum • Proposed maximum of $3.5 million as forgivable principal

  13. Questions, Comments and Input

  14. Applicant and Project Eligibility • Applicants must be a public body able to secure a loan. • "Public body" means the state of Washington or any agency, county, city or town, conservation district, other political subdivision, municipal corporation, quasi-municipal corporation, and those Indian tribes now or hereafter recognized as such by the federal government. • Loans shall be secured by a general obligation pledge or a revenue pledge of the recipient. • Projects must be eligible under the Clean Water Act Title VI, water pollution control facilities and associated activities.

  15. Eligibility Requirements and Necessary Approvals • All projects will be ready to proceed to construction within one year of enactment of the Recovery Act. • Priority given to projects ready to construct within 120 days from enactment • Wastewater facility construction projects must: • Provide the Ecology approval letter for the Facility Plan describing this project. • Provide documentation of complete Environmental Review (NEPA w/ FONSI or SERP w/ state concurrence). If ESA is the only outstanding element for SERP concurrence, submit ESA documentation consistent with Ecology’s interim procedure for 2010. • Provide the Ecology approval letter for Plans and Specifications for this project. If design is not approved, Plans and Specifications can be submitted for approval through April 17, 2009

  16. Eligibility Requirements and Necessary Approvals • Green infrastructure project applicants must show that all necessary pre-construction steps are completed or underway • Project design or pre-design • SEPA process documentation • Executive Order 05-05 (Archeological and Cultural Review) • NEPA or SERP may be required for certain projects

  17. Project Requirements (construction) • Wage rate requirements – Davis-Bacon. • Buy American iron, steel, and manufactured goods. • Refinance of eligible costs incurred is only allowed back to October 1, 2008. • Quarterly reporting, including jobs created or retained • All federal requirements for Title VI (State Revolving Fund) of Clean Water Act as amended are required for use of ARRA funding.

  18. Project Construction Deadlines • All projects must be under contract or construction by February 17, 2010. (Federal Requirement for Recovery Funds) • Federal goal to have 50% of projects under contract or construction by June 17, 2009 • State goal to have 100% of projects under contract or construction by Nov 1, 2009 Reallocation

  19. Ecology Emergency Rule Making • Ecology feels the agency may need additional authority to implement some of these provisions • Ecology is in discussion with our Attorney General regarding emergency rule making • More details will be available in the future.

  20. Facilities Project Definition • A facility is a system for the: • Control • Collection • Storage • Treatment • Disposal • Recycling of domestic wastewater or stormwater

  21. Eligible Facility Projects • Examples of Eligible Projects: • Treatment Plant Upgrades or Expansion • Collection Sewers and Side Sewer Laterals • Reserve Capacity • Infiltration and Inflow Correction • Combined Sewer Overflow Abatement • On-site Septic System Repair/Replacement

  22. “green infrastructure, water or energy efficiency improvements or other environmentally innovative activities.” Note: Some of the above categories overlap 1. http://www.psp.wa.gov/downloads/LID/LID_manual2005.pdf

  23. Projects with “Green” Elemements • Projects with “Green” elements may be eligible for the 20% set aside • Clearly identify the portions of the project you consider to be “Green” in the application. • Describe how the project addresses “green infrastructure, water or energy efficiency improvements or other environmentally innovative activities.” • Separate the scope of work and budget for the “Green” elements • Question 1: Scope of Work • Question 2: Budget

  24. FY 2010 Revolving Fund Loan Interest Rates • Recovery funds will be distributed as loans based on the Revolving fund program • Interest rates are based on a percent of tax-exempt municipal bonds • Twenty year loan: 2.9% (60% of average bond rate) • Five year loan: 1.5% (30% of average bond rate)

  25. Hardship WWTF Construction Funding(forgivable principal) Three factors determine hardship funding eligibility for wastewater treatment facilities construction grant and loan projects: • Service area population • Existing residential need at time ofapplication • Financial burden on ratepayers

  26. Proposed Recovery Funding Hardship Funding Continuum

  27. Things to Know Before Applying (cont.) • Facilities projects • Applicant must be in compliance with the Growth Management Act (GMA) before receiving $. • Change orders are capped at 5% of eligible, funded construction costs if funds are available. • Cost overruns are capped at 10% of eligible, funded construction costs if funds are available. • Hardship forms must be submitted with application • Hardship funds, including reduced interest rates and forgivable principal not available for growth

  28. FY 2010 Supplemental Financial Assistance Application

  29. Misc. Application Information • Submittal: Hard copies (3) and a CD (by March 13, 2009) • Resource guide , including scoring guidelines • HUC Code information request added • Water body ID information request added • Web links provided for refinance, hardship forms, and other hardship information • Hardship section to gather basic information for on-site, WWTF, and stormwater • Hardship points for WWTF

  30. Parts of The Application • Resource Guide • Includes Ecology’s Scoring Evaluation Guide • Part I • Part II

  31. Part I • Has twelve questions: • Gather basic information, such as name, address, project location . . . • Identify project duration • Identify amount requested • Other project Information: • types of water bodies affected • types of habitats affected • Planning or implementation • EPA’s 9 Key Elements • Identify refinance projects • misc. requirements, such as TMDL or NPDES • project type (Facilities or Activities)

  32. Part II • Eight questions • Each question is assigned a range of points up to a certain number as shown on the next slide.

  33. Part II (cont.) • Point Allocations: • 1: Scope of Work (up to 250) • 2: Proposed Budget (up to 150) • 3: Water Quality and Public Health Improvements (up to 250) • 4: State and Federal Requirements (up to 100) • 5: Project Team (up to 50) • 6: Project Development/Local Support (up to 100) • 7: Readiness to Proceed (up to 50) • 8: Ratepayer Impact (up to 50) __________ Total: Up to 1000

  34. Part II (cont): • Opening Summary (no points): • The section begins with an executive summary of 250 words or less (to describe the project and the WQ benefit).

  35. Part II—The Questions • Question No. 1 (up to 250 points) • Scope of Work (page 8 Part II): • Points awarded for clear, complete, and well though-out scope of work that directly addresses a WQ problem

  36. Part II—The Questions (cont.) • Question No. 2 (up to 150 points) • Proposed Budget (page 8, Part II): • Points awarded for a complete, reasonable budget that is consistent with the tasks in the scope of work • Points awarded for cost-effective projects with accurate estimates

  37. Part II—The Questions (cont.) • Question No. 3 (up to 250 points) • Water Quality and Public Health Improvements (page 11, Part II): • Points awarded for substantial environmental improvements

  38. Part II—The Questions (cont.) • Question No. 4 (up to 100 points) • State and Federal Requirements (page 11, Part II): • Points awarded for projects that address state and federal requirements, such as: • Permit requirements • Total maximum daily loads (TMDLs) • Watershed plan implementation • Ability to meet water quality standards

  39. Part II—The Questions (cont.) • Question No. 5 (up to 50 points) • Project Team (page 12, Part II): • Points awarded based on skills, qualification, and experience of potential project team members

  40. Part II—The Questions (cont.) • Question No. 6 (up to 100 points) • Project Development/Local Support (page 12, Part II): • Points awarded for project development efforts and commitments from project partners, and for • Applicants designated as an "evergreen community" per RCW 35.105.030.

  41. Part II—The Questions (cont.) • Question No. 7 (up to 50 points) • Readiness to Proceed (page 13, Part II): • Points awarded based on how soon the project will start • Applicant’s readiness to implement project components

  42. Part II—The Questions (cont.) • Question No. 8 (50 points) • Ratepayer Impact for wastewater treatment facility projects (page 13, Part II): • Points awarded if applicant can demonstrate financial hardship

  43. Questions? Thank You

  44. Online Resources • Funding Program Guidelines and material covered today can be found at: • http://www.ecy.wa.gov/programs/wq/funding/2010/index.html

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