Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 13 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations - DW SRF Lead Service Line Replacement Intended Use Plan › Section 33-13-VI - Priority System

Current through June 25, 2024
The SDWA provides the state with the flexibility to determine
				how to best utilize the Cap grant. To meet the particular and unique issues
				facing the public water systems in Mississippi, SDWA requirements allow states
				to give priority to those projects which:
1. address the most serious risk to human
			 health.
2. are necessary to ensure
			 compliance with the SDWA requirements.
3. assist systems most in need, on a per
			 household basis.
A.
Funding and Ranking
			 Rationale
Projects will be placed on the fundable portion of the Priority
				List according to both priority ranking and readiness to proceed. The term
				"ready to proceed" means that all loan application requirements established in
				the Program regulations are met, and all documents necessary for loan award are
				approved. If a project cannot reasonably be expected to meet the Priority
				System deadlines, then the project will not be placed on the current year's
				Priority List but will be placed on the Planning List. It is the Board's
				judgment with input from the DWSIRLF staff as to when a project is ready to
				proceed. Loans will be awarded to projects (within available funds) that are
				above the funding line on the current year's Priority List, that have met all
				Priority System deadlines and are ready to proceed. Additionally, when
				potential loan recipients are deciding on the needs for their public water
				supplies, they should ensure that all public health and state safe drinking
				water laws are followed. If a state regulation becomes an additional
				requirement of Mississippi's public water supplies, appropriate planning and
				design of the project(s) will be necessary in order to receive funding.
				However, if it is understood that a proposed project is designed to meet
				specific SDWA compliance requirement(s) unrelated to a state requirement, the
				Board may waive the state requirement upon request from the potential loan
				recipient. This waiver would require concurrence from the Bureau of Public
				Water Supply.
1. Funding Lists and
			 Bypass Procedure
Should any projects on the FFY-2023 Priority List (which are
				above the funding line) fail to comply with the deadlines in Section D, the
				project shall be bypassed, and the funds reserved for said project will be
				released. Released funds will first be made available to listed projects, to
				ensure that all projects above the funding line meeting priority system
				deadlines are funded. Any remaining funds will be made available to the
				highest-ranking project(s) shown below the funding line that is ready for loan
				award at the time funds become available. If no projects above the funding line
				are ready for loan award at the time funds become available, projects shown
				below the funding line will be funded on a first-come, first-served basis as
				they become ready for loan award and until the released funds are awarded. This
				same process will continue as each deadline passes and released funds become
				available.
2. FFY-2023 Green
			 Infrastructure Requirement
The FFY-2023 federal appropriation is not expected to require
				that a percentage of the funds appropriated for the Revolving Funds be
				designated for projects that exhibit the elements of green infrastructure,
				water efficiency improvements, energy efficiency improvements or other
				environmentally innovative projects. However, projects that wish to be
				classified in the following elements will be reported as green infrastructure
				to the EPA through its "Project and Benefits Report Database" and noted in the
				future annual report. Projects may exhibit one or more of the "green" elements
				and the details of the project's "green" content will be identified in the
				business case required for each project if the recipient so chooses.
-
Green infrastructure projects
include a wide
				array of practices at multiple scales; green infrastructure projects will
				manage wet weather and will maintain and restore natural hydrology by
				infiltrating, evapotranspiring, and harvesting and using storm water. On a
				regional scale, green infrastructure is the preservation and restoration of
				natural landscape features, such as forests, floodplains, and wetlands, coupled
				with policies such as in fill and redevelopment that reduce overall
				imperviousness in a watershed. On the local scale, it may consist of site- and
				neighborhood-specific practices, such as bio-retention, trees, green roofs,
				permeable pavements, and cisterns.
-
Water efficiency projects
are designed to use
				improved technologies and practices to deliver equal or better services with
				less water. It encompasses conservation and reuse efforts, as well as water
				loss reduction and prevention, to protect water resources for the
				future.
-
Energy efficiency projects
are designed to use
				improved technologies and practices to reduce the energy consumption of water
				projects, use energy in a more efficient way, and/or produce/utilize renewable
				energy.
-
Environmentally innovative projects
include
				projects that demonstrate new and/or innovative approaches to deliver services
				or manage water resources in a more sustainable way.
Projects_desiring to be classified as "green" will be judged
				for eligibility based on the guidance supplied by the EPA and that is available
				at our website
www.healthyms.com/dwsrf
. Systems desiring
				"Green Infrastructure" classification will be required to present a "business
				case" establishing justification for the classification request. Guidance for
				establishing a "business case" is available to assist potential loan recipients
				in preparation of the documentation.
3. Loan Decreases
Any funds recovered from loan decreases during the year will be
				used:
a) first to fund bid overruns,
			 if funds from the loan increase reserve are not sufficient to cover the bid
			 overruns;
b) then to ensure that
			 all projects above the funding line meeting the priority system deadlines are
			 funded (for at least the amount shown on the priority list); and
c) then to fund other loans and/or increases
			 on a first-come, first-served basis.
Any funds not obligated for these purposes may be made
				available for new loan awards ready to proceed on a first-come, first-served
				basis.
4. Match
			 for Special Appropriations Project (SPAP) Grants
On October 10, 2001, EPA issued policy memorandum DWSRF 02-01
				to notify regions and states of a change in policy regarding the use of DWSRF
				monies for providing local match for SPAP grants. This change in EPA policy
				will allow the state to use non-federal, non-state match DWSIRLF funds to
				provide loans that can be used as local match for SPAP grants awarded for
				drinking water projects.
These non-federal, non-state match DWSIRLF loan funds may be
				made available to eligible SPAP grant recipients that are on the priority list
				for use as local match funds for their SPAP grants, provided the grant is for
				loan eligible work. Such projects will be funded in accordance with the
				Priority System and until all non-federal, non-state match monies have been
				obligated or demand for such funds has been met.
5. Subsidization from FFY-2023 Federal
			 Appropriation
The FFY-2023 EPA Capitalization Grant mandates a minimum of 26%
				(12% SDWA Disadvantaged Communities Subsidy + 14% Congressional Subsidy) and
				maximum 49% (26% min + 23% discretionary SDWA Disadvantaged Communities
				Subsidy) of the Grant be provided as additional subsidization to disadvantaged
				communities. Based on the Grant of $6,291,000, a minimum of $1,635,660
				($880,740 & 754,920) in subsidization is required. The DWSIRLF's
				subsidization will be in the form of "Principal Forgiveness" (PF) to individual
				public water supplies that are considered disadvantaged communities, and which
				received reimbursements with Federal Cap grant funds during the construction of
				the project. If the amount of PF which a project is eligible exceeds the amount
				of Federal Cap grant funds which it received, the amount of PF extended will be
				limited to the amount of Federal Cap grant funds used for reimbursement.
Subsidization may be used over a two-year period. Subsidization
				remaining from a previous year may be awarded to loans which are eligible for
				PF over a two-year period. Subsidization for FFY-2023 may be awarded to
				projects eligible for PF in FFY-2023 and FFY-2024.
Disadvantaged Community Program
a.
DWSRF Capitalization Grant
			 funds
During FFY-2023, the following Principal Forgiveness (PF)
				methodology will be used to meet the requirements of both the America's Water
				Infrastructure Act of 2018, the Consolidated Appropriations Act of 2020, and
Infrastructure Investment and Jobs Act of 2021
for providing
				subsidy for disadvantaged systems. A minimum of 26% subsidy will be made
				available and up to 49% can be subsidized to eligible recipients.
The amount of PF for which a potential "Loan Recipient" (LR)
				may be eligible will be determined by calculating the percentage of the "Median
				Household Income" (MHI) of the potential LR versus the MHI of the State of
				Mississippi
($49,111)
as a whole.
90% < LR MHI < 100%
- 15% Principal Forgiveness
80% < LR MHI < 90%
- 25% Principal Forgiveness
70% < LR MHI < 80%
- 35% Principal Forgiveness
LR MHI < 70%
- 45% Principal Forgiveness
PF will be extended to projects until all mandated subsidy
				funds are obligated. Due to the limited amount of PF funds, the maximum amount
				of PF funds a loan recipient may receive for a project will be set at $500,000.
				The amount of PF given will be assigned at loan award after the project goes to
				the bid phase. Once this happens, the amount of PF assigned can only change if
				the project's costs increase, PF is still available, PF assigned has not
				reached the specified maximum, and the Board approves a waiver allowing
				additional subsidization. Once subsidy funds are depleted, only standard loans
				will be made with DWSIRLF funds.
In the event that a LR declines their loan that includes PF,
				the released PF may be reallocated to other projects for the present fiscal
				year that are eligible for PF, or the PF may be carried over to projects for
				the next fiscal year.
If returned PF funds are reallocated to projects awarded during
				the existing fiscal year. The reallocation of PF will be given first to
				projects which did not receive their full allowable amount based on the above
				table up to the maximum allowed limit.
If all projects have received their full allowable amount,
				returned PF funds may be reallocated to projects awarded PF during the existing
				fiscal year based on a percentage of the individual LR's initial loan amount to
				the total loan amount of loans awarded PF during the fiscal year.
In all cases, the amount of PF which is awarded to a project
				may not exceed the amount of Federal Cap grant funds which the project was
				reimbursed during the construction of the project.
b. BIL Supplemental Funds
During FFY-2023, the following Principal Forgiveness (PF)
				methodology will be used to meet the requirements of the Infrastructure
				Investment and Jobs Act of 2021. The annual BIL Supplemental grant is to be
				subsidize at 49% with those subsidies as assistance agreements of 100%
				principal forgiveness or grants. Potential Loan Recipients ranked highest on
				the program's
Priority List
serving a population with a Median
				Household Income less than $49,111 (MS MHI) will be eligible to receive 100%
				principal forgiveness loans to the extent funding allows. The FFY 2023 BIL
				Supplemental allotment for the Program is $26,368,000. The maximum principal
				forgiveness (49%) allowable to eligible borrowers will be $12,920,320.