Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 6 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations › Section 33-6-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:
* address the most serious risk to human health
* are necessary to ensure compliance with the SDWA
				requirements
* 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.
1. Funding Lists and Bypass Procedure
Should any projects on the FFY-2016 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-2016 Green
			 Infrastructure Requirement
The FFY-2016 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 infill 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-2016 Federal
			 Appropriation
EPA is expected to mandate that a minimum of 20% but no more
				than 30% of the FFY-2016 Cap grant be provided as additional subsidization to
				disadvantaged communities. Based on the FFY-2016 grant amount of $9,099,000 the
				amount of subsidization will be between $1,819,800 and $2,727,700. 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 time period. Subsidization for FFY-2016 may be
				awarded to projects eligible for PF in FFY-2017 and FFY-2018.
Disadvantaged Community Program
During FFY-2016, the following PF methodology will be used
				since it is anticipated that the FFY-2016 federal appropriation will continue
				to require the state to provide additional subsidy for disadvantaged
				communities.
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 ($36,311) 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
This PF will be extended to projects until all mandated
				subsidy funds are obligated. The amount of PF given will be assigned at loan
				award and will not change after the project goes to the bid phase.
				Additionally, 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. Once
				subsidy funds are depleted, only standard loans will be made with DWSIRLF
				funds.
MHI's to be used for calculating PF will be those displayed in
				the publication "The Sourcebook of Zip Code Demographics", Twenty-third
				Edition. Where the affected community is included in more than one zip code
				area, an average will be used for the community's MHI.
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.