Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 15 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations - DW SRF Emerging Contaminants Intended Use Plan › Section 33-15-VI - Priority System

Current through June 25, 2024
The SDWA provides the state with the flexibility to determine
				how to best utilize the EC Cap grant. To meet the goals of public water systems
				in the State of Mississippi and this FFY-2024 EC RJP, those projects which meet
				the following will be given priority:
1. Are DWSIRLF-eligible and address the most
			 serious risk to human health related to identifying and addressing emerging
			 contaminants in drinking water, with a focus on PFAS.
2. Assist systems most in need, on a per
			 household basis.
3. Prioritize
			 addressing PFAS in drinking water over other eligible emerging contaminants.
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.
1. Funding
			 Lists and Bypass Procedure
Should any projects on the FFY-2024 EC 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. 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.
3.
			 Subsidization from FFY-2022 EC Cap Grant
The FF Y-2022 BIL EC Cap Grant mandates 100% of the projects
				part of the Grant be provided as subsidization to loan recipients. Based on the
				Grant of $8,133,000 and set-aside amount of $1,545,270, a minimum of $6,587,730
				in subsidization is required. The DWSIRLF's subsidization will be in the form
				of "Principal Forgiveness" (PF) to individual public water supply loan
				recipients, and which received reimbursements with Federal EC Cap Grant funds
				during the lifetime of the project, from loan initiation through loan closeout.
				If the amount of PF which a project is eligible exceeds the amount of Federal
				EC 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-2024 EC Priority List projects
				may be awarded to projects eligible for PF in FFY-2025 and FFY-2026.
Disadvantaged Community Program
a.
DWSRF EC Capitalization Grant
			 Funds
During FFY-2024, the following Principal Forgiveness (PF)
				methodology will be used to meet the requirements of the BIL of 2021 (
				P.L.
				117-8 ) for providing subsidy to water systems for
				addressing emerging contaminants in drinking water. 100% principal forgiveness
				will be available for the project portion of the FFY-2022 EC Cap Grant to loan
				recipients. The FFY-2022 EC federal appropriation for the Program is
				$8,133,000. The project portion of the FFY-2022 EC Cap Grant is $6,587,730. The
				principal forgiveness (100%) available to eligible borrowers is
				$6,587,730.
All BIL EC projects will receive 100% Principal
				Forgiveness.
PF will be extended to projects until all mandated subsidy
				funds are obligated. The amount of PF given will be assigned at loan
				award.
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.
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.