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Funding Options for Water
Presented by
Michigan Department of Environmental Quality
Revolving Loan Section
Sonya Butler, Chief
American Recovery & Reinvestment Act Update
• Most ARRA projects are still in construction
– 15 of 28 DW projects closed
– 41 of 67 CW projects closed
• September 30, 2013
– Deadline to spend all ARRA funds
• 1512 Quarterly Reports
– Continue until projects are closed
Fiscal Year 2012 Activities
• CWSRF
– Fundable Range: $314 million
– Actually funded 34 projects; $170 million
• DWRF
– Fundable Range: $40 million
– Actually funded 7 projects; $27 million
• SWQIF
– Actually funded 2 projects; $2 million
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Fiscal Year
SRF HISTORY IN MICHIGAN
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Fiscal Year
DWRF HISTORY IN MICHIGAN
$ Amt # of projects
Current Fiscal Year 2013 Project Priority List
• Clean Water
– Fundable Range: $400 million – 39 projects
• Drinking Water
– Fundable Range: $40 million – 8 projects
• Strategic Water Quality Initiatives
– Fundable Range: $2 million – 2 projects
• Interest Rate
– 2 percent
Federal Program Requirements
• Davis Bacon
– Permanent CW & DW requirement in 2012
• Disadvantaged Business Enterprise
– Minority owned
– Women owned
• Green Projects
• Principal Forgiveness
Capitalization Grant Requirements
• 2010:
– 20% green projects
– 30% principal forgiveness
• 2011:
– 20% green projects
– 30% principal forgiveness
• 2012:
– 10% green projects for CW only
– 20% principal forgiveness
Types of Green Projects
• Green Project Reserve
– Green Infrastructure
– Energy Efficient
– Water Efficient
– Green Innovative
• Green Project guidelines available at:
– www.michigan.gov/cleanwaterrevolvingfund
MI Cap Grant Amounts
YEAR CWSRF DWRF
2009 $29 m $28 m
ARRA $168 m $67 m
2010 $87 m $41 m
2011 $63 m $28 m
2012 $60 m $27 m
2013 ???? ????
S2 Grant Program
• Grants for planning and design activities for SRF and SWQIF projects
• Grant covers eligible expenses beginning December 14, 2010 forward
• Grants are awarded quarterly
• 60 day DEQ response time on submitted grant applications
S2 Grant Program (cont’d)
• $40 million program allocation
• $32.8 million awarded (as of 1/30/2013)
• $7.2 million remaining
• Currently 14 grant applications in the review process ($4 million)
• Apply at any time
S2 Grant Program (cont’d)
• Any funding source can be used to construct the project
• Must begin constructing the project within 3 years of grant award
• Grant Application available online
– www.michigan.gov/cleanwaterrevolvingfund
– Lower left corner of the screen
Recent Statute Changes
• Creates new grant program (includes asset management)
• Creates state funded loan program
• Defines disadvantaged community for CWSRF
• Revises disadvantaged community calculation for DWRF
• Effective date of legislation is January 2, 2013
Legislative Information
• House Bill 5673
– Enrolled as Public Act 511 of 2012
• Senate Bill 1156
– Enrolled as Public Act 560 of 2012
• Senate Bill 1157
– Enrolled as Public Act 561 of 2012
• Senate Bill 1158
– Enrolled as Public Act 562 of 2012
SAW Grant Program
• Eligible grant activities include:
– Planning and design for SRF or SWQIF projects (includes stormwater and nonpoint source)
– Asset management for sewage collection and treatment system or a stormwater system
– Development of management plans for the treatment of stormwater
– Testing & demonstration of innovative wastewater and stormwater technologies
Ineligible Grant Activities
• General local government administrative activities
• Activities performed by municipal employees unrelated to the project
Asset Management
• Evaluate the condition of infrastructure
• Prioritize needs and repairs/replacement
• Develop funding structure
• Encourage coordination of construction activities with other utilities, MDOT & county road commissions
SAW Grant Program
• Applications funded first come, first serve
• 120 day DEQ review period
• New $2 million grant cap per community
– 90%/10% local match up to $1 million
– 75%/25% local match for amounts exceeding $1 million
– 100% grant for disadvantaged communities
100% Grant
• A 100% grant can go to:
– Disadvantaged community per calculation
– Municipality in receivership
– Municipality operating under an emergency manager or emergency financial manager appointed by the state
– Municipality operating under a consent agreement
Grant Requirements
• Begin construction of the project using any funding source, within 3 years of the grant award
• Asset management grantees must make significant progress toward achieving the funding structure to implement the asset management program
SAW Loan Program
• Eligible projects will be similar to federal CWSRF program
• No priority ranking – 1st come, 1st serve
• Expect fewer program requirements
– No Davis Bacon
– No Disadvantaged Business Enterprise
Next Steps for SAW
• Workgroup to help develop and implement SAW programs
• Application & guidelines expected within 6 months
• Updates will be provided on DEQ website
• Future workshops
Workgroup Issues to Review
• Asset Management
• Loan Requirements
• Stormwater Management Plan
• Innovative Technologies
Workgroup Members
• Nate Zill, Lenawee County
• Gary Burk, City of Owosso Utilities Director
• Harry Sheehan, Washtenaw County Water Resources Commission
• Dima El-Gamal, Stantec Consulting
• Larry Fox, C2AE
• Keith McCormack, Hubbell, Roth & Clark
• Various DEQ staff
By October 1, 2013
• Funding Options for Water will include:
– CWSRF
– DWRF
– SWQIF
– S2 Grants (maybe)
– SAW Grant and Loan
Contact Information
Michigan Dept. of Environmental Quality
Revolving Loan Section
Sonya Butler, Chief
– Call 517.373.2161
– Write BUTLERS2@michigan.gov
– Review www.michigan.gov/cleanwaterrevolvingfund
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