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The American Recovery and The American Recovery and Reinvestment Act of 2009 (ARRA) Reinvestment Act of 2009 (ARRA)

California Department of Public HealthSafe Drinking Water State Revolving Fund

ARRA Temporarily Creates a Distinct “Program” Within the Base SRF Program

BASE SRF PROGRAM

ARRA “program”

- Some base program provisions

+Special ARRA provisions

Focus & Objectives Differ from Base SRF Focus & Objectives Differ from Base SRF ProgramProgram

Key objective is to preserve and create jobs Key objective is to preserve and create jobs and promote economic recoveryand promote economic recovery

Priority for projects ready to start construction Priority for projects ready to start construction within 120 dayswithin 120 days

50% of funds for additional subsidy50% of funds for additional subsidy 20% of funds for “green” projects20% of funds for “green” projects Within 1 year of enactment, all funds must be Within 1 year of enactment, all funds must be

committed to projects under construction or committed to projects under construction or having awarded contracts for constructionhaving awarded contracts for construction

Key PerspectiveKey Perspective

ARRA appropriations are ARRA appropriations are IN ADDITION TOIN ADDITION TO base base SRF program appropriationsSRF program appropriations

ARRA is not focused on building the corpus of ARRA is not focused on building the corpus of the fundsthe funds

ARRA is focused on quickly delivering ARRA is focused on quickly delivering assistance to “ready to go” projectsassistance to “ready to go” projects Job creation and preservationJob creation and preservation Additional subsidy (MINIMUM of 50% of cap grant)Additional subsidy (MINIMUM of 50% of cap grant)

New ARRA SRF requirementsNew ARRA SRF requirements

Davis Bacon:Davis Bacon: Davis-Bacon Act wage rules apply to all Davis-Bacon Act wage rules apply to all

assistance agreements made in whole or in assistance agreements made in whole or in part with funds appropriated by the ARRA.part with funds appropriated by the ARRA.

Department of Labor provides prevailing wage Department of Labor provides prevailing wage rates and instructions for reporting.rates and instructions for reporting.

ARRA Requirements cont….ARRA Requirements cont….

Iron and SteelIron and Steel All of the iron, steel, and manufactured goods used in All of the iron, steel, and manufactured goods used in

a project must be produced in the United States.a project must be produced in the United States. Administrator of EPA may waive this requirement if :Administrator of EPA may waive this requirement if :

• Inconsistent with the public interestInconsistent with the public interest• Sufficient and reasonably available quantities, of Sufficient and reasonably available quantities, of

satisfactory quality are not produced in the USsatisfactory quality are not produced in the US• Use of US manufactured products will increase Use of US manufactured products will increase

project cost by >25%project cost by >25% Must apply consistent with international agreements.Must apply consistent with international agreements.

ARRA Requirements cont….ARRA Requirements cont….

Green Project Reserve (GPR):Green Project Reserve (GPR):““To the extent there are sufficiently eligible To the extent there are sufficiently eligible

project applications, not less than 20 percent project applications, not less than 20 percent of the funds appropriated herein for the ARRA of the funds appropriated herein for the ARRA funds shall be for projects to address green funds shall be for projects to address green infrastructure, water or energy efficiency infrastructure, water or energy efficiency improvements or other environmentally improvements or other environmentally innovative activities”innovative activities”

ARRA Requirements cont….ARRA Requirements cont….

• Funds may be used to buy, refinance or restructure debt obligations of eligible recipients only when that debt was incurred on or after October 1, 2008

• EPA shall reallocate funds where projects are not under contract or construction within 12 months of enactment

• No funds may be used to acquire land or a conservation easement for source water protection, to implement source water protection measures, or to establish or implement wellhead protection programs

DWSRF Loan RatesDWSRF Loan Rates

Current interest rate for 2009 = 2.5017%Current interest rate for 2009 = 2.5017%

Eligible Projects for this FundingEligible Projects for this FundingOnly projects that are “Only projects that are “ready to proceedready to proceed”: ”: • Complete application must be submitted by Complete application must be submitted by

deadline specified by CDPH (June 2009?).deadline specified by CDPH (June 2009?).• Must include final plans and specifications.Must include final plans and specifications.• Must comply with environmental requirements at the Must comply with environmental requirements at the

time of application :time of application : Must be determined to be NEPA excluded Must be determined to be NEPA excluded ANDAND CEQA CEQA

exempt; exempt; OROR All final CEQA documents and filings must be complete, All final CEQA documents and filings must be complete,

and project must be adopted and approved by the Lead and project must be adopted and approved by the Lead Agency.Agency.

• Plus, applicant must be able to complete the federal Plus, applicant must be able to complete the federal requirements of Section 7 of the Endangered Species Act requirements of Section 7 of the Endangered Species Act andand Section 106 of the National Historic Preservation Act Section 106 of the National Historic Preservation Act within 60 days.within 60 days.

Additional Project InformationAdditional Project Information• Funding agreement cannot be issued by Funding agreement cannot be issued by

CDPH and construction cannot begin until final CDPH and construction cannot begin until final environmental clearance.environmental clearance.

• Construction must begin within 60 days of Construction must begin within 60 days of executed funding agreement.executed funding agreement.

• Water system must have adequate Technical, Water system must have adequate Technical, Managerial, and Financial capacity. Managerial, and Financial capacity.

• Our CDPH District Office can provide information on Our CDPH District Office can provide information on this requirement. this requirement.

• Any Proposition 218 requirement for a rate Any Proposition 218 requirement for a rate increase must be met prior to issuance of a increase must be met prior to issuance of a funding agreement by CDPH.funding agreement by CDPH.

SDWSRF Economic RecoverySDWSRF Economic RecoveryFunding ProcessFunding Process

• Applicant submits a pre-application for Economic Recovery Applicant submits a pre-application for Economic Recovery Funding (ER$) – Closed on Feb 27, 2009Funding (ER$) – Closed on Feb 27, 2009

• CDPH reviews and ranks ER$ pre-apps – Target due date CDPH reviews and ranks ER$ pre-apps – Target due date = March 15, 2009= March 15, 2009

• CDPH publishes draft Project Priority List – Target due CDPH publishes draft Project Priority List – Target due date = April 7, 2009date = April 7, 2009

• CDPH invites projects to submit complete application – CDPH invites projects to submit complete application – Target due date = April 10, 2009Target due date = April 10, 2009

• CDPH evaluates funding application – April thru June 2009CDPH evaluates funding application – April thru June 2009

• CDPH issues funding agreement – starting summer of CDPH issues funding agreement – starting summer of 20092009

SDWSRF ER$ Project Priority ListSDWSRF ER$ Project Priority List

• Only projects that are ready to proceed will be Only projects that are ready to proceed will be included. included.

• Projects ranked into health-based categoriesProjects ranked into health-based categories Ranking within each category is based on: Ranking within each category is based on:

• Median household incomeMedian household income• Consolidation of systemsConsolidation of systems• Population served.Population served.

Funding ApplicationsFunding ApplicationsCDPH invites projects from PPL based on CDPH invites projects from PPL based on

available funding. available funding. • Applicant will have 60 days to submit a completed Applicant will have 60 days to submit a completed

application. application. • There will be There will be no extensionsno extensions to this deadline. to this deadline. • CDPH will process applications in the order receivedCDPH will process applications in the order received• CDPH will continue to process applications until all funds CDPH will continue to process applications until all funds

have been allocated.have been allocated.• CDPH to issue funding agreement within 60 days of CDPH to issue funding agreement within 60 days of

determination of project eligibility and funding amount. determination of project eligibility and funding amount. • The funding application and required documents will be The funding application and required documents will be

posted on our website in early March. posted on our website in early March.

Upcoming Workshops/EventsUpcoming Workshops/Events

2009 California Financing Coordinating 2009 California Financing Coordinating Committee (CFCC) Funding FairsCommittee (CFCC) Funding Fairs

March 10, 2009March 10, 2009 – Eureka – City of Eureka – Eureka – City of Eureka

April 2, 2009April 2, 2009 – Merced – UC Cooperative – Merced – UC Cooperative ExtensionExtension

May 7, 2009May 7, 2009 – Sacramento – Cal – Sacramento – Cal Environmental Protection AgencyEnvironmental Protection Agency

For location information, visit the CFCC For location information, visit the CFCC website:website: www.cfcc.ca.govwww.cfcc.ca.gov

Contact/Resources InformationContact/Resources Information

http://www.cdph.ca.gov/services/funding/pages/SRF.aspx

• SDWSRF program information:

• SDWSRF Economic Recovery Pre-application •http://www.cdph.ca.gov/certlic/drinkingwater/Pages/UniversalPreapplication.aspx

• Email to request current program announcements:contact SDWSRF@cdph.ca.gov