DWSRF Contacts. Sources of Monies. Purpose. Type of Projects. Eligibility. New Jersey Drinking Water State Revolving Fund Program
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1 New Jersey Drinking Water State Revolving Fund Program DWSRF Contacts Lorraine Salamanca Alan Dillon Department of Environmental Protection Division of Water Supply and Geoscience Bureau of Safe Drinking Water (609) Purpose Provide greatest protection to public health Achieve or maintain compliance with Safe Drinking Water Act regulations Meet capacity development and ensure the water system viability Sources of Monies Authorized by SDWA Amendments of 1996 DWSRF grants from USEPA annually ARRA grant (2009) Superstorm Sandy grant 1981 Water Supply Bond Fund (20 % match) Interest earnings, loan repayments, transfers from CWSRF Eligibility Publicly and privately owned community water systems Nonprofit noncommunity water systems Type of Projects Treatment Notice of Non Compliance issued for reasons other than water quality Purchase/consolidation of system for capacity development FUND 1
2 Type of Projects (cont.) Pump stations/storage tanks Security measures Green infrastructure Water meters or water conservation devices Interconnections Water Source: wells and surface water Other (SCADA, etc.) Type of Projects (cont.) Drought Management Initiative or other water supply management initiatives Solution for saltwater intrusion to preserve aquifer Water main extensions for contaminated private wells Water mains and Appurtenances Emergency Projects Repair in kind to correct failure of the system & needed to restore service Need to meet all requirements in order to get financing New Well Projects Test wells and production wells Need to consider timing and permits; may take several years to secure full funding FFY2014 / SFY2015 Funding Schedule Letter of Intent (LOI) October 7, 2013 Environmental Planning Documents October 7, 2013 Engineering Design Documents March 3, 2014 Track 2 LOI March 3, 2014 Loan Application March 3, 2014 Loan Award May 2015 Funding Options Base DEP/Trust program- projects not impacted by Superstorm Sandy (75/25, 20 PF/40/40 and 50 PF/25/25-Nano) Sandy SRF- sponsors whose facilities were impacted by Superstorm Sandy (75 w/19 PF/25) SAIL- Trust short term loan for cash flow while waiting for FEMA, HUD or other monies Benefits Low interest - 0% from NJDEP and market rates from Trust Potential PF may reduce financial burden Fixed 20 year loan term (or less) Pre-award approval available Short term interim financing available for projects ready to construct and in fundable range FUND 2
3 Interim Financing Trust Loans Interim financing program offered by the Trust 0% interest for publicly owned water systems and 2% for privately owned Project must be within the fundable range and certified by DEP for that funding cycle Borrowed monies must be paid by loan closing of that same funding year Other Trust Loans Planning & design interim Loan- early stage engineering costs- up to 50% Emergency Loans loan for emergency repair of facilities; must agree to develop an asset management plan Interim supplemental loans SAIL bridge loans-statewide Infrastructure Loan Program for Superstorm Sandy affected systems Contact the Trust for more information: or (609) FFY2014/SFY2013 Program Loans closed in May loans (18 projects) for $51.4 M 7 loans got 20% principal forgiveness (PF) 1 loan was a green project (energy efficiency) Loan Terms: *75% zero interest and 25% market rate Changes FFY2015 In Category B, the Department will no longer provide additional priority points for those systems which demonstrate elements for asset management because it is now a loan program requirement. Small Systems Loan Program Very Small Systems Loan Program Small Systems Loan Program Designed to facilitate small system access to DWSRF financing Cap of $1 million per system with a total of $4 million available 50% PF and 25% zero interest from NJDEP, 25% market rate from Trust Given out in population sized Tiers (<500, 500 to 3,300 and 3,301 to 10,000) Once the $4 million is utilized, the remaining small systems are reached in ranked order under traditional Base program Very Small Systems Loan Program DEP only loan designed to provide financing to alleviate acute problems with water system infrastructure for very small systems with a population % of total project costs will be 100% PF, and remaining 15% will be contributed by project sponsor Cap of $500,000 per system as PF Larger can utilize this program to make infrastructure improvements to the smaller water system that they have acquired Once the $.5 million is utilized, the remaining systems are reached in ranked order under traditional Base program which includes the Nano Program. FUND 3
4 Future Considerations As source of monies is tighter, revise loan terms Limit principal forgiveness to publicly owned and small systems serving less than 10,000 residents in NJ CWSRF Program Pollution control projects Wastewater system improvements Combined sewer, stormwater management facilities or nonpoint source Municipalities, Sewage and utility authorities & Other local government units Superstorm Sandy funding Overview The Disaster Relief Appropriation Act (DRAA) was signed by the President of the United States on January 29, The purpose of the DRAA was to provide additional funding to the State s Clean Water and Drinking Water SRF programs to fund disaster assistance to communities impacted by Superstorm Sandy. Also, to fund projects whose purpose is to reduce storm damage risk and vulnerability and/or to enhance resiliency to rapid hydrologic change or other natural disaster. Overview USEPA allocated $191,105,958 to New Jersey s Clean Water SRF and $38,221,192 to the Drinking Water SRF. The State must provide a 20% match to the Sandy SRF federal monies. Eligible Projects The Sandy SRF assistance must be provided to facilities that were impacted by the Superstorm (including physical damage, loss of power, loss/interruption of mission essential services, etc.) and for projects that are otherwise SRF eligible and serve at least one of the following purposes: FUND 4
5 Eligible Projects- continued Eligible Projects- continued Reduces the likelihood of physical damage to a treatment works or drinking water system; Reduces a treatment works or water system s susceptibility to physical damage or ancillary impacts caused by floods; Facilitates preparation for, adaptation to, or recovery from a sudden unplanned change in the amount of and movement of water in proximity to a treatment works or water system; or Facilitates preparation for, adaptation to or recovery from climate change or any other type of natural disaster. Projects for water supply systems with inadequate primary and secondary source capacity Projects for water systems with auxiliary power projects or developing an asset management project Projects for water supply systems with inadequate storage to meet those requirements of the New Jersey Water Supply Management Act (7:19-6.8) Eligible Projects - Examples Projects for water supply systems, which the State classified as vulnerable, as a result of a 2007 NJDEP Interconnection Study Projects for water supply systems that prevent floodwaters from entering a treatment plant or well house, including but not limited to relocating facilities to less flood prone areas and installation of physical barriers around a facility Projects for other interconnections that increase water systems resiliency during time of emergency First Step Submit a Letter of Intent to be included on the Project Priority List for any of the funding options. Complete online at [call (609) to become authorized representative] Can request a pre-planning meeting Important Things to remember Deadlines! Include any attachments with Letter of Intent; like asset management Submit additional information as requested Keep in touch with program staff Confirm costs with NJDEP Websites Water Supply and Geoscience Division Municipal Finance & Construction Element Trust FUND 5
6 FUND 6
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