2009 DWSRF AWARDS

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DWSRF 2009 AWARDS
Since the inception of the Drinking Water State  Revolving  Fund  (DWSRF), states have  shown
exceptional creativity in managing their programs in ways that promote sustainability and protect
public health. The 2009 DWSRF Awards for Sustainable Public Health Protection recognize the most
innovative and effective DWSRF state programs that further the goal of clean and safe water through
exceptional planning, management, and finance.
Each regional office could nominate one DWSRF
state program for the Award. The ten state SRF
programs were nominated by the regional offices
based upon the following criteria:

• Minimum cumulative pace level of 80 percent
  through the last fiscal year
• Financial integrity: audits and regional reviews
  concluded that the state program does not have
  any serious financial or programmatic problems

Each nominee also had to demonstrate outstanding
performance and leadership in two or more of the
following criteria:
• Creative use of set-asides
• Best Management Practices
       Asset Management
       Environmental Management Systems
       Public Private Partnerships
• Innovative partnerships
• Effective outreach
• Leveraging practices
• Exceeding American Recovery and
  Reinvestment Act (ARRA) requirements

Winners were recognized at the national meeting of
the Council of Infrastructure Financing Authorities
(CIFA) in Seattle on November 3, 2009. The
nomination materials will be shared with all EPA
regional offices to highlight examples of creative
activities being carried out across the country.
     The DWSRF program  is pleased to share the winners of the 2009 Awards
                       for Sustainable Public Health Protection.

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                                                              DRINKING WATER STATE REVOLVING FUND
  REGION  1
MAINE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND
MAINE MUNICIPAL BOND BANK
Innovative partnerships play a central role in Maine's
DWSRF Program. The Maine Department of Health
and Human Services and the Maine Municipal Bond
Bank work closely with assistance recipients and
actively encourage partnerships to achieve the
most cost-efficient drinking water solutions. The
Program's team-centered approach has made it a
national leader in meeting ARRA requirements:  all
of its ARRA funded projects are under contract or
construction and have signed loan agreements.

Innovation is demonstrated by the collaboration
between the  water utilities of Lewiston and Auburn
                                as they seek to meet the public health requirements
                                of the 2006 amendments to the SDWA. For example,
                                after conducting an evaluation of available options to
                                comply with new requirements for disinfection, the
                                two utilities agreed that adding UV reactors at the
                                Lake Auburn Intake and Treatment Facility would be
                                the best short- and long-term option to economically
                                and sustainably ensure safe drinking water and
                                public health. The resulting project is supported  by
                                ARRA funding and is being designed and constructed
                                to receive Leadership in Energy and  Environmental
                                Design (LEED) certification.
  REGION 3
MARYLAND DEPARTMENT OF ENVIRONMENT WATER QUALITY
FINANCE ADMINISTRATION
The Maryland Department of Environment's (MDE]
Water Quality Finance Administration (WQFA)
uses the DWSRF to finance projects that protect
public health and support sustainability and
water efficiency. In an effort to address the threat
of drought and achieve long-term water system
sustainability, the Maryland DWSRF has increasingly
focused on water conservation,  n order to be
eligible for a WQFA loan, all water systems  must
submit a water audit. Water conservation plans
are also required for water systems that serve a
population greater than 10,000 and those that serve
a population greater than 500 with water losses
exceeding  10 percent.

WQFA is also successfully managing DWSRF-ARRA
funds through outreach and marketing and the
expansion  of subsidies to eligible applicants with
Green Project Reserve (GPR) projects. As part of
                                its ARRA outreach, WQFA conducted a Financing
                                Conference in November 2008 to explain the SRF
                                application process for financial assistance, and
                                also held a series of conference calls to assist
                                new assistance recipients in complying with ARRA
                                requirements.

                                Two projects in  particular demonstrate WQFA's
                                successful use of ARRA funds for projects that would
                                not otherwise have been funded: a major water
                                efficiency project in Baltimore will replace inefficient
                                water fixtures in public buildings with low-flow
                                devices, and Rhodes Point, a 40-home community on
                                Smith Island served by an antiquated water system,
                                will no longer need to rely on the American Red
                                Cross or bottled water. With ARRA funds, WQFA was
                                able to help one community save water and another
                                to correct a urgent water supply problem.

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DWSRF 2009 AWARDS
  REGION 4
FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION
The Florida DWSRF program is notable for its use
of partnerships to enhance its outreach efforts and
project funding process. It has worked closely with
the CWSRF program and the Florida Rural Water
Association (FRWA) to offer workshops and courses
that provide SRF training to local government
officials and consultants, and a 2009 workshop
featured extensive updates on the base program and
ARRA requirements. Additionally, by partnering with
FRWAs Interim Loan Program, the  Florida DWSRF
is able to get projects under construction before
DWSRF funds are available. With a letter provided
by the Program committing to funding projects in
future years, banks can offer affordable bridge loans
                                to finance project construction until DWSRF funds
                                are available.

                                Florida also takes a proactive approach to public
                                health protection by conserving and protecting
                                drinking water supplies. The DWSRF program is
                                creatively using set-aside funding for source water
                                protection activities to update a water-balance
                                computer model used to design and evaluate
                                wastewater reuse systems. Reuse protects drinking
                                water sources by reducing demands on valuable
                                surface and groundwater that is used as a drinking
                                water source.
  REGION 5
WISCONSIN DEPARTMENT OF NATURAL RESOURCES AND
WISCONSINS  DEPARTMENT OF ADMINISTRATION
The Wisconsin Department of Natural Resources
(WDNR) is making creative use of set-asides to
advance DWSRF program  priorities. WDNR used
Wellhead/Source Water Protection set-aside funds
to initiate a research project that will provide
data to support changes to current wastewater
treatment and disposal practices that negatively
impact municipal wells. WDNR will also sponsor
three workshops to provide training to teachers
to enhance, develop, and sustain water education
efforts in Wisconsin K-12 schools in an effort to
                                increase water literacy and engage the public in
                                sustainable water resources practices.

                                Additionally, WDNR is targeting Green Project
                                Reserve (GPR) projects that include energy and
                                water efficiency improvements. Of all the projects
                                that applied for ARRA funding, WDNR  identified 38
                                that were eligible, in whole or in part, for the GPR.
                                ARRA funding that is allocated to these projects is
                                nearly 36 percent of the Program's ARRA grant.

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                                                             DRINKING WATER STATE REVOLVING FUND
  REGION 6
OKLAHOMA DEPARTMENT OF ENVIRONMENTAL QUALITY AND
OKLAHOMA WATER RESOURCES BOARD
The Oklahoma DWSRF program, administered by
the Oklahoma Department of Environmental Quality
(ODEQ) and the Oklahoma Water Resources Board
(OWRB), is helping small water systems through
its innovative use of set-asides. ODEQ developed
an Engineering Plan and Design Grant (EPDG)
Program, funded by the Program Management and
Local Assistance set-asides, to provide assistance
to drinking water systems serving populations of
10,000 or less. EPDG applicants are ranked using
the existing DWSRF Priority System, and funds are
awarded quarterly to applicants with the highest
priority points. EPDG will make it easier for small
                               and disadvantaged water systems to plan and design
                               drinking water projects.

                               ODEQ is also demonstrating its commitment to
                               sustainability by significantly exceeding the 20
                               percent requirement in ARRA for the Green Project
                               Reserve (GPR). The DWSRF program has sufficient
                               eligible GPR projects on its Intended Use Plan to
                               exceed the GPR  requirement by  16 percent. ODEQ
                               has achieved this success  by actively soliciting
                               projects and establishing a target of 30 percent
                               principal forgiveness for GPR projects.
  REGION 7
NEBRASKA DEPARTMENT OF HEALTH AND HUMAN SERVICES AND
NEBRASKA DEPARTMENT OF ENVIRONMENTAL QUALITY
The Nebraska Department of Health and Human
Services and Department of Environmental Quality
use outreach efforts to maximize the effectiveness of
the DWSRF program. DWSRF stakeholder  meetings
are held throughout the state to provide status
updates and solicit information to fine-tune the
Program's direction. The Program also works closely
with individual systems, especially for  projects
considered  high priority due to their public health
benefits. Systems submit engineering  reports to the
Water and Wastewater Advisory Committee, which
reviews applications to determine the  best sources
of funding as well as opportunities to streamline the
environmental review process and increase funding
through partnerships. Once a project is identified
                               for DWSRF funding, follow-up meetings with
                               community leaders are held to clarify requirements
                               in developing funding agreements.

                               Nebraska is also successfully focusing on water
                               efficiency projects, as demonstrated  by its Green
                               Project Reserve Water Efficiency fundable list. To
                               attract assistance recipients, principal forgiveness
                               was doubled for meter projects and capped  at 50
                               percent. As a result, ARRA funds allocated for GPR
                               projects are approximately 25 percent of Nebraska's
                               total ARRA funding. All of the Nebraska's GPR
                               projects are scheduled to complete construction by
                               mid-2010.

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DWSRF 2009 AWARDS
  REGION 8
WYOMING DEPARTMENT OF ENVIRONMENTAL QUALITY, WYOMING WATER
DEVELOPMENT OFFICE AND WYOMING OFFICE OF STATE LANDS AND INVESTMENT
The Office of State Lands and Investment, the
Wyoming Department of Environmental Quality, and
the Wyoming Water Development Office are going
above and beyond ARRA requirements. Wyoming set
a goal of allocating 23 percent of the ARRA grant
towards Green Project Reserve (GPR) projects and
expects to exceed that goal and use a total of 26
percent of their ARRA funds for GPR projects.

To help achieve its DWSRF program goals and
comply with ARRA requirements, Wyoming has
                               conducted significant outreach efforts. The Program
                               has held four Board meetings since May 2009 for
                               communities wishing to apply for ARRA dollars
                               to fund both  conventional drinking water and
                               GPR projects. It also offered an April 2009 video
                               conference workshop with 20 locations state-wide,
                               providing communities the opportunity to learn more
                               about ARRA  funding requirements.
  REGION 9
ARIZONA WATER INFRASTRUCTURE FINANCE AUTHORITY
The Water Infrastructure Finance Authority (WIFA]
of Arizona uses innovative partnerships to conduct
effective outreach and fund drinking water projects.
WIFA provides information about infrastructure
funding options and technical assistance to small
rural communities through the Rural Water
Infrastructure Committee (RWIC). RWIC routinely
holds project information meetings throughout the
state, and it recently added a message board to the
RWIC Web site to facilitate sharing of project-specific
information among committee members. The Yuma
Colonias  B & C project is an example of successful
RWIC collaboration. The project is receiving  co-
funding through WIFA, the USDA Rural Development
Utilities Program (RDUP), Border Environmental
Cooperation Commission (BECC), and the North
                               American Development Bank (NADB). It will connect
                               the Avenue B & C Colonias Improvement District to
                               the City of Yuma water pollution control facility and
                               bring much needed sewer service to the area.

                               WIFA is also advancing the Green Project Reserve
                               (GPR) goals of ARRA by providing additional
                               incentives for green projects. WIFA waived the
                               local match requirement for "green/sustainable"
                               pre-design and design projects to encourage
                               incorporation of green concepts in projects financed
                               by WIFA. This policy increases the attractiveness of
                               planning and financing green projects, and allows
                               small disadvantaged communities to examine
                               green design options that may not have been
                               feasible otherwise.

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                                                               DRINKING WATER STATE REVOLVING FUND
  REGION  10
IDAHO DEPARTMENT OF  ENVIRONMENTAL QUALITY
The Idaho Department of Environmental Quality
has greatly improved Idaho's DWSRF program
performance. After several years of difficulty
securing  sufficient binding commitments, Idaho
now has one of the top loan commitment rates
in Region 10. The Program's revision of criteria
for disadvantaged assistance made it easier for
struggling communities to qualify for extra subsidies
to fund important drinking water projects.

Idaho was also the only Region 10 state that met
the  goal of having at least 50 percent of its DWSRF-
                                ARRA funds committed to projects that were under
                                contract or construction by June 17, 2009. A$12.2
                                million ARRA loan with the Central Shoshone County
                                Water District will correct a long-standing problem
                                with the  Enaville Well in Kellogg, Idaho. The loan
                                includes 50 percent principal forgiveness and will
                                pay for residential metering and installation of a
                                microfiltration plant to treat drinking water. The
                                funds used for principal forgiveness  help Idaho meet
                                the ARRA additional subsidization requirement,
                                while the funds used for metering count toward the
                                ARRA Green Project Reserve (GPR) requirement.

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2009 DWSRF AWARDS

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