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-I - Introduction

Current through June 25, 2024
A.
State of Mississippi's Drinking
			 Water State Revolving Loan Fund
The Safe Drinking Water Act Amendments of 1996 (SDWA)
				established the national Drinking Water State Revolving Fund (DWSRF) Program.
				That program allows the Environmental Protection Agency (EPA) to make
				capitalization (Cap) grants to states to, in turn, provide low-cost loans to
				public water systems to help achieve or maintain compliance with SDWA
				requirements. Accordingly, the State Legislature (through Section
				41-3-16, MS Code of 1972
				Annotated) created what is now called the Drinking Water Systems Improvements
				Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF
				capitalization grants from EPA, and to provide low-cost loans to the state's
				public water systems to finance needed infrastructure improvements. This
				legislation also allows the DWSIRLF, subject to the authority of State Law, to
				make loans that may utilize additional subsidization beyond standard DWSIRLF
				loans as well as setting appropriate criteria to determine eligible
				recipients.
That same legislation created the "Local Governments and Rural
				Water Systems Improvements Board" (Board), to oversee the administration of the
				DWSIRLF Program. The Mississippi State Department of Health (Department), as
				the state's drinking water primacy agency, supplies the staff and facilities
				necessary to administer the program. The Board is composed of the following
				nine (9) members: the State Health Officer, who shall serve as chairman of the
				Board; the Executive Director of the Mississippi Development Authority; the
				Executive Director of the Department of Environmental Quality; the Executive
				Director of the Department of Finance and Administration; the Executive
				Director of the Mississippi Association of Supervisors; the Executive Director
				of the Mississippi Municipal League; the Executive Director of the American
				Council of Engineering Companies; the State Director of the United States
				Department of Agriculture, Rural Development; and a manager of a rural water
				system. Each agency director may appoint a designee to serve in his or her
				place on the Board. The Governor appoints the rural water system manager. In
				the creation of the Program, it was the intent of the Legislature that the
				Board endeavor to ensure that the costs of administering the DWSIRLF Program
				are as low as possible in order to provide the water consumers of Mississippi
				with safe drinking water at affordable prices.
As a condition of receiving the DWSRF Cap grants, the SDWA
				requires that each state annually prepare an Intended Use Plan (IUP) designed
				to outline how a state will utilize DWSRF funds to assist in protecting public
				health. The DWSIRLF Fund consists of both state and federal funds. Federal
				funds are provided to the states in the form of awarded Cap grants. Each
				state's allotment of those grants is based on EPA's Needs Survey that is
				performed every four years. State matching funds totaling 20% of the federal
				grant amount to that state are required to be deposited into the Fund and have
				historically been provided through the issuance of bonds; however, the State
				legislature has provided the required State match funds as a direct agency
				appropriation. The purpose of this IUP is to convey the State of Mississippi's
				(State) DWSRF plan for Federal Fiscal Year (FFY) 2023 to EPA, other state
				agencies, the State's public water supplies, and the public.
B.
Program Overview
The basic framework under which the DWSIRLF Program operates is
				established by two documents. The first document is the Drinking Water State
				Revolving Fund Loan Program Operating Agreement (Operating Agreement) between
				the Mississippi State Department of Health and the Environmental Protection
				Agency, Region IV. The current Operating Agreement was agreed to by both
				parties and approved on March 21, 2023. The Operating Agreement establishes the
				basic framework of the DWSIRLF that is not expected to change from
				year-to-year. The second document is the IUP which describes how the State of
				Mississippi will use the funding received from the EPA Cap grant which is
				received each year.
The final authorized allotment of the FFY-2023 Cap Grant from
				EPA for Mississippi is $6,184,000 with $107,000 Wyoming Reallotment for a
				combined $6,291,000. The Program intent to apply for the full amount of this
				cap grant and the BIL Supplemental cap grant. These funds must be used in the
				period of July 2023 through June 2027. As a condition of the FFY-2023 Cap Grant
				the program agrees to comply with DWSRF regulations, the general grant
				regulations at 40 CFR part 200 , and specific conditions of the capitalization
				grant and to enter data into SRF Data System no less than quarterly. The
				FFY-2023 IUP will show in detail the goals (basic, long-term, and short-term),
				the structure, and the financial status of the Program; the role of the
				set-aside activities within the state; and most importantly, the distribution
				of funds towards public water system improvements projects and the criteria
				used to determine their ranking within the priority system. Those desiring to
				receive a copy of this document may contact Jonathan Diaz, Program Support
				Specialist, at (601) 576-7518.
The United States Congress passed the
Infrastructure
				Investment and Jobs Act (AKA the Bipartisan Infrastructure Law or BIL
)
				which was signed by the President on November 15, 2021. The bill appropriates
				an additional $2.202 billion to DWSRF for any eligible projects. Of the $2.202
				billion additional allotment, the Program is projecting the State's 2023
				allotment (1.25%) for eligible projects to be $26,368,000 with a required state
				contribution (10%) of $2,636,800. The maximum principal forgiveness (49%)
				allowable to Eligible Borrowers will be $12,920,320. The Program will take
				action to follow its priority and planning list to apply the funding as
				applicable. See Appendix K for additional details.
C.
Public Input, Review, and Comment
			 Procedures
To ensure that the public has an ample opportunity to review
				and comment upon the IUP, the Department and the Board follows the requirements
				of the "Mississippi Administrative Procedures Law" prior to final submission of
				the IUP to EPA. A public notice period of at least twenty-five (25) days allows
				for review and comment before an oral proceeding. After adoption by the Board,
				a second filing with the Secretary of State's Office occurs; if no additional
				comments are received the IUP becomes law 30 days after the second
				filing.
Public notice will be given in
The Clarion
				Ledger
, a newspaper of statewide circulation, for written and oral
				comments on this IUP.
An oral proceeding is scheduled for 9:00
				a.m. on July 28, 2023.
A transcript of the oral proceeding,
				recording any comments and recommended solutions, will be submitted to the EPA
				along with the Final IUP. Those desiring to receive a copy of the oral
				proceeding transcript should contact Jonathan Diaz, Program Support Specialist,
				at (601) 576-7518. A copy of the "Mississippi Administrative Procedures Law"
				may be obtained from the Mississippi Secretary of State's Office and can also
				be found on the Mississippi State Department of Health's website at
www.healthyms.com/dwsrf
.