Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 10 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations › Section 33-10-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.
1. Funding Lists and Bypass Procedure
Should any projects on the FFY-2018 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-2018
			 Green Infrastructure Requirement
The FFY-2018 federal appropriation does not 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. Systems desiring
				"Green Infrastructure" classification will be required to present a "business
				case" establishing justification for the classification request.
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-2018 Federal
			 Appropriation
EPA is expected to mandate that a minimum 20% of the FFY-2018
				Cap grant be provided as additional subsidization to disadvantaged communities.
				Based on the FFY-2018 grant amount of $11,957,000 the amount of subsidization
				will be $2,391,400. 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-2018 may be
				awarded to projects eligible for PF in FFY-2018 and FFY-2019.
Disadvantaged Community Program
During FFY-2018, the following Principle Forgiveness (PF)
				methodology will be used since it is anticipated that the FFY-2018 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 ($40,593) 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.
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.