State Revolving Fund (SRF) Loan Program Status and Direction

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1 State Revolving Fund (SRF) Loan Program Status and Direction Ohio Water Environment Association Government Affairs Workshop Division of Environmental and Financial Assistance (DEFA)

2 Division of Environmental & Financial Assistance Mission Our goal is to help you access technical and financial assistance for implementable solutions to your environmental needs.

3 Division of Environmental & Financial Assistance Organizational Chart Chief Admin Assistance Planning Engineering

4 Ohio s State Revolving Funds (SRFs) Water Supply Revolving Loan Account (WSRLA) Water Pollution Control Loan Fund (WPCLF) **Fund dollars managed by Ohio Water Development Authority (OWDA) under interagency agreement

5 Water Supply Revolving Loan Account Administered jointly with OEPA-Drinking & Ground Water (DDAGW) Provides financial assistance Planning, design and construction Improvements to community water systems and non-profit noncommunity public water systems Annual deadline to submit pre-application is March 1

6 Water Supply Revolving Loan Account Did you know? First Loan awarded in August 1998 Since then, have awarded 442 loans totaling $987 million Federal Capitalization Grants have ranged from $22M to $43M each year Interest Savings to Ohioans = $225 million

7 Water Supply Revolving Loan Account Draft Program Management Plan for SFY 2015 is being developed now. Likely to make at least $150 million available. Disadvantaged Programs can provide up to 40% Principal Forgiveness and 0% interest loan to economically distressed communities.

8 Water Supply Revolving Loan Account Areas of Future Additional Emphasis Water systems should be looking very closely at regionalization Secondary connections/back-up sources, and standby power for WTPs Possible future incentives for preparing asset management plans

9 Water Pollution Control Loan Fund Provides financial and technical assistance to public or private applicants Planning, design, and construction Protect or improve the quality of Ohio's rivers, streams lakes, and other water resources Deadline to nominate potential projects for PY 2015 is August 31, 2014

10 Water Pollution Control Loan Fund Did you know? First Loan awarded in October 1989 (25 th Anniversary in October 2014). Since then, have awarded 1,800 loans totaling over $6.2 Billion The WPCLF has never turned away a loan applicant because of lack of funds.

11 Water Pollution Control Loan Fund Did you know? Federal Capitalization Grants have ranged from $60M to $120M each year. Even if capitalization grants end, Fund modeling indicates the WPCLF can loan out $500 million/year for decades to come. Some of our best ideas (interest rates discounts, WRRSP, green project funding) came from you!

12 Water Pollution Control Loan Fund 2014 Program Highlights Program Management Plan for 2014 is in effect through the end of 2014 Have $450 million available, and will leverage the fund (if needed) to meet demand. Hardship interest rates of 0% and 1% are available to economically distressed communities

13 Water Pollution Control Loan Fund 2014 Program Highlights Offering $5 million in targeted Principal Forgiveness New 30-year term for CSO project >$20 million New Green Project Reserve discount available (0.1% discount)

14 Water Pollution Control Loan Fund A look at No major programmatic changes No minimums or maximums will have funds for all projects Hardship Interest Rater criteria may be adjusted to reflect current median household incomes Principal Forgiveness probably in the +/- $5 million range

15 Water Pollution Control Loan Fund Experiences. Involve us early (Planning and Design loans) (even if you get a better deal elsewhere) Planning, planning, planning.. (Alternatives, capacity, affordability) Affordability for small communities

16 Water Pollution Control Loan Fund Experiences. User Charge Systems (UCS) ensure that adequate funds are collected to repay debt and to pay for the operation, maintenance, and replacement costs (O, M & R) of the treatment system. O, M & R costs are required to be proportional under ORC (k)(3)

17 Water Pollution Control Loan Fund Experiences. Local leaders: Please stay engaged in your project (it is one of your biggest investments) Consultants: Work with us, we ll work with you Within DEFA: We are stressing active project management to keep projects on track

18 Water Pollution Control Loan Fund Community (Applicant) Consultant DEFA

19 Summary Ohio s two State revolving Funds are: Water Supply Revolving Loan Account (WSRLA) Water Pollution Control Loan Fund (WPCLF) Funds are healthy due to longevity Below-market interest rates by design Programs adjust annually to meet the needs identified by Ohio communities and YOU! Early & ongoing communication = Successful Project

20 For more information, contact: Alauddin Alauddin, Chief Ohio EPA - Division of Environmental & Financial Assistance 50 W. Town St., Ste. 700 P.O. Box 1049 Columbus, Ohio