MTER
                            IMPROVEMENT

                         $1,455,000,00
      DWEjRF AWARDS
                FOR
           SUSTAINABLE
          PUBLIC HEALTH
            PROTECTION
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       ABOUT THE AWARDS
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Since the first Drinking Water State Revolving Fund
(DWSRF) loan was made in 1997, borrowers have shown
exceptional creativity in designing projects that promote
sustainability and protect public health. The 2006 DWSRF
Awards for Sustainable Public Health Protection recog-
nize the most innovative and effective DWSRF projects.

Each State could nominate one DWSRF project for the
Award. The projects had to meet several criteria to quali-
fy for the Awards.  There were three mandatory criteria
that all winners  had to comply with:
 Compliance with the Safe Drinking Water Act,
 Audits or financial reviews show that there are no
  financial problems with the project, and
 For awardees who are borrowers, the project was
  ranked high on the project priority list for public health
  benefits.

Finally, each nominee had to demonstrate leadership in
at least one of the four additional criteria: innovation in
financing, innovative approach to planning and/or project
implementation, creative use of partnerships, and pro-
motes sustainable infrastructure.

The 2006 DWSRF Awards reward borrowers and their
supporters who  achieve results that go beyond the typical
project, showing exceptional creativity and dedication to
                                                                 public health protection. These projects are examples of
                                                                 the high level of sophistication that is possible with the
                                                                 DWSRF.

                                                                 Winners will be recognized at the national meeting of the
                                                                 Council for Infrastructure Finance Authorities (CIFA) in
                                                                 Philadelphia, PA in November 2006.  The materials will
                                                                 also be shared with all EPA regional offices to highlight
                                                                 excellent projects in their region and across the country.
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       Cover Photos:
       Left
       Grand Bay Water Works Board, AL: Grand Bay elevated
       Water Storage Tank
       Right
       City of Cherokee, OK: Project site sign announcing DWSRF funding
       Photo This Page:
       City of Cherokee, OK: Interior of water treatment facility in
       Cherokee, OK

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2DD6  WINNERS
REGION  1
WATERVILLE  FIRE  DISTRICT,
WATERVILLE, VT
A $425,000 DWSRF loan provided the Waterville Fire
District with a new control building to house disinfection
and corrosion control equipment, meters, and alarm/con-
trol systems. The loan also funded the construction of
two new 4,500 gallon reservoirs, and replacement of
water mains and services lines. Prior to the project, the
system lacked adequate disinfection capacity, resulting in
bacteriological contamination and discharge of chlorinat-
ed water from storage tank overflow. The SRF loan will
give this small water system the technical, financial and
managerial capacity to provide safe and healthy drinking
water to the 84 people it serves.

CARIBOU UTILITIES, CARIBOU,  ME
Caribou Utilities used a $1,840,000 DWSRF loan to
replace their surface water treatment facility with two
gravel packed water wells, replace two water mains, and
construct a new pump station and disinfection/treatment
facility.  Prior to the project, Caribou relied on surface
water supplies from the Aroostook River, which suffers
from water quality problems. The new facilities will fill
the drinking water supply though ground water sources,
reducing the use of treatment chemicals and maintaining
the flow of the Aroostook River for agricultural uses.

REGION  2
CITY  OF SAN JUAN,  PR
Puerto Rico used DWSRF funds to develop a Capacity
Development pilot project aimed at small communities.
This pilot project is being carried out in fifteen communi-
ties. It seeks to measure the effectiveness of the circuit
riders approach to help small community systems achieve
and maintain technical, financial, and administrative
capacity. A Comprehensive Performance Evaluation
(CPE) was developed to help measure progress. The CPE
spreadsheet provides  several parameters to evaluate the
capacity of each system. System work/action plans are
created based on the CPE results.
WASHINGTON TOWNSHIP
MUNICIPAL UTILITIES  AUTHORITY,
WASHINGTON, NEW JERSEY
Two DWSRF loans totaling $3.9 million were used to
construct a treatment plant consisting of pre-filtration,
iron sequestration, radium removal, pressure filtration,
packed column aeration, pH adjustment, fluoridation,
and disinfection. The treatment plant was designed and
constructed to address elevated radium contamination in
the Washington area water sources. The new system also
provides opportunities for resin used in drinking water
treatment to be reused for uranium mining applications.

REGION 3
TOWN  OF BOONSBORO,  MD
The state of Maryland brokered an agreement between
Boonsboro and neighboring Keedysville to share the
financing and construction for a regional water treatment
system benefiting both communities. Boonsboro took
out a $1,400,000 DWSRF loan for its share of the project.
Water filtration plants were constructed in both commu-
nities and interconnected with a twelve-inch water line.
The project will serve 3,141 residents and will eliminate a
former risk of contamination by surface water.

AOUA  PENNSYLVANIA,  BRISTOL
BOROUGH, PA
The Bristol water treatment facility has been in continu-
ous operation since 1874.  Aqua Pennsylvania purchased
the facility in 1996 and used a $5,949,630 DWSRF loan to
rehabilitate and upgrade the facility. Improvements
include automating the filters and controls, installation of
solids removal equipment, upgrade of chlorination and
electrical systems, integration into a central computer sys-
tem, and replacement of leaking roofs. The project
reduced the potential for water filter failure and discharge
of contaminants, and eliminated structural safety hazards.
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2DD6  WINNERS
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EASTERN WYOMING PUBLIC
SERVICE DISTRICT/LOGAN COUNTY
PUBLIC  SERVICE DISTRICT,
WYOMING COUNTY,  WV
A 30-year, $3.5 million DWSRF loan was combined with
several other grants and loans to consolidate eleven fail-
ing, flooded, and abandoned water systems into the
Eastern Wyoming PSD. The project involves the con-
struction of a new regional water plant and three storage
tanks, and the installation of over 100,000 linear feet of
water lines. At this time, the majority of the District
operates under a "Boil Water Order." Completion of this
project will provide all residents with a safe and depend-
able potable water supply.

REGION 4
GRAND  BAY WATER WORKS
BOARD, AL
Using a $1,805,000 DWSRF loan, the Grand Bay Water
Works Board installed five miles of waterline and a one
million gallon elevated water tank. The new system
brings safe drinking water to approximately 65 house-
holds, and supplements the existing water supply to
serve the Grand Bay population on both sides of a major
interstate highway. The new water tank also served an
unexpected purpose as an emergency shelter during the
hurricanes of 2005.

JEFFERSON COMMUNITIES  WATER
SYSTEM, JEFFERSON COUNTY,  FL
Jefferson County used a DWSRF loan to help fund the
construction of a regional water system consisting of
wells, elevated tanks, distribution facilities, controls, and
services. The new system replaced several private wells
and non-community water systems that were contami-
nated with high levels of bacteria and in close proximity
to pollution point sources. The new system will bring
clean drinking water to the citizens of Jefferson County,
while protecting this hydrogeologically fragile area from
unrestrained well development.
CULKIN  WATER DISTRICT,
VICKSBURG,  MS
Culkin used an $825,878 DWSRF loan to construct a sys-
tem to recycle water produced by the drinking water
treatment plant. Prior to this project, Culkin's filter back-
wash facility was discharging effluent exceeding NPDES
limits  into a dry creek bed, where it was carried by rainfall
into downstream rivers and lakes. Using the DWSRF
loan, Culkin constructed facilities to allow recycling of
clarified filter backwash water, and to allow sludge dis-
posal in a nearby landfill. The project eliminated a public
health threat and brought Culkin into compliance with
its NPDES discharge permit.

REGION  5
CITY OF HUTCHINSON, MN
Hutchinson's drinking water contained a high level of
ammonia, a corrosive substance that leached copper from
the lining of water pipes carrying drinking water to the
community. The city used two DWSRF loans totaling
$14,000,000 to construct a water treatment plant that
uses membrane softening and biological filtration to
remove iron, manganese and ammonia from the water.
This will allow copper corrosion to be controlled with an
environmentally-friendly pH adjustment, thereby sparing
the people of Hutchinson from possible gastrointestinal
distress and eventual brain, liver and kidney damage
brought on by copper ingestion.

GREEN TOWNSHIP,
BROWN  COUNTY, OH
Many of the private wells in Green Township tested posi-
tive for bacteria. While three rural water systems could
be found nearby, extending water service was not finan-
cially feasible for the 60 affected residents. Highland
County Water Company and Brown County agreed that
Highland would provide service to the residents and bor-
row 50 percent of the funds from the DWSRF, while
Brown County would obtain a Community Development
Block  Grant (CDBG) for the remainder of the project.
Using this agreement, the water lines were extended by
13.8 miles to reach Green Township residents.

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 ZDD6 WINNERS
CITY OF  THORP, Wl
The City of Thorp used a DWSRF loan of $1,198,085 and
other resources to construct new wells, a water storage
facility, a water pressure boosting station and upgraded
water treatment processes to reduce radon and uranium
levels, and installed chemical feed systems.  Prior to the
project, the system was comprised of very low capacity
wells (21-44 gallons per minute),  and experienced both
bacteriological and radionuclide contamination. The
project serves a community of 1500 people in a rural part
of west-central Wisconsin.

REGION  6
TEXARKANA, AR
Texarkana Water  Utilities is a regional water supplier in
Arkansas and Texas. Two of its wholesale customers were
having problems operating and maintaining their sys-
tems. In the process of working with these  customers,
the decision was  made for Texarkana to purchase these
two systems. Texarkana purchased the systems for
approximately $2.2 million and made $3.8 million in
upgrades to  bring the systems into compliance with the
Safe  Drinking Water Act.

CITY OF  BLOOMFIELD, N M
Bloomfield is using a $3,737,000 DWSRF loan to fund the
construction of a new filtration system for its wastewater
treatment plant.  The city was unable to meet federal
standards for drinking water turbidity, and identified the
construction of a new filtration system, increased water
capacity, and expansion of the city's existing water treat-
ment plant as the best solution. The new filtration sys-
tem will consistently produce 3 million gallons of filtered
drinking water per day and bring the turbidity level back
to compliance.

CITY OF  CHEROKEE,  OK
Cherokee used two DWSRF loans totaling $250,000 to
modernize the city's water source, previously consisting
of nine shallow, nitrate-contaminated groundwater wells
located on a flood plain.  The loans were used to install
water meters to quantify usage and to construct a reverse
osmosis water treatment plant, reducing nitrates in the
water supply from 11.28 mg/1 to 0-2.5 mg/1. The project
also established a laboratory, a record-keeping system,
and additional operator training, which along with the
new metering capabilities will improve the city's ability to
finance and maintain the water system.

                                POSSUM
                                KINGDOM
                                WATER  SUPPLY
                                CORPORATION,
                                PALO  PINTO
                                AND  STEPHENS
                                COUNTIES, TX
                                The Possum Kingdom
                                area residents received
                                their water from sixty
                                small, non-compliant
                                independent water
                                systems. In 1992, the
                                Possum Kingdom
                                Water Supply
                                Corporation was cre-
                                ated to consolidate the
sixty small systems into a single regional water distribu-
tion system. The Corporation received a $4.7 million
DWSRF loan in 1998, along with $6.5 million in USDA
Rural  Development funds. A new water intake plant was
constructed and other improvements were made. Today,
area residents receive safe, healthy drinking water. The
Corporation recently received a second DWSRF loan to
expand the system further.

REGION  "7
CITY OF  McCooK,  NE
A $9.9 million DWSRF loan helped the city make needed
modifications to its existing well field in order to address
nitrate, uranium and arsenic violations. The project was
also funded in part by a lawsuit settlement from a diesel
spill that damaged the city drinking water reservoir. As
Possum Kingdom Water Supply
Corporation, TX: Placement of the tenth
ring for a Welded Steel Standpipe
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       2DD6 WINNERS
       part of the project, a 4 million gallon reservoir and two
       new wells were added to the city's water system.  The
       project helped to bring McCook back into compliance
       with the Safe Drinking Water Act.
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       Czty of McCook, NE: A DWSRF loan helped finance the construction of
       this new 4-million gallon drinking water reservoir
REGION S
FORT  PECK/DRY PRAIRIE RURAL  WATER
AUTHORITY,  MT
The Fort Peck/Dry Prairie water project used a DWSRF
loan to bring safe drinking water to approximately thirty
thousand people on the Fort Peck Indian Reservation and
surrounding areas.  Prior to the project, the public water
supply source was groundwater containing a high con-
centration of dissolved solids.  When the project is com-
pleted, area residents will be served by a central water
treatment plant and a widespread distribution system
containing 3,200 miles of pipeline.

CLAY  RURAL  WATER  SYSTEM,
UNION  COUNTY, SD
A $4, 331,000 DWSRF loan financed the creation of a
sub-system to serve rural users and four housing devel-
opments in Union County. To create the sub-system,
Clay Rural Water System purchased and upgraded the
waterworks assets of one of the affected housing devel-
opments, then constructed distribution lines to serve the
remaining three housing developments and rural water
users. The project improved the water supply for two
housing projects that had previously violated primary
standards  for radium.
MAGNA  WATER  COMPANY,  UT
Magna Water Company has naturally-occurring arsenic
levels above the Maximum Contaminant Levels (MCL),
as well as perchlorate in the ground water. While there is
no MCL for perchlorate yet, Magna wanted to reduce the
level of this contaminant in its drinking water.
Electrodialysis reversal was identified as a cost-effective
method for removing arsenic and perchlorate. A fixed-
bed bioreactor also destroys perchlorate below detectable
levels. Magna borrowed $6 million from the DWSRF and
combined it with $12 million in grants to design and
build a treatment plant using these technologies.

CITY OF  LONGMONT, CO
Using a $15 million DWSRF loan and $42 million in
other funds, Longmont constructed a new 30 million gal-
lon per day surface water treatment plant, and raw water
and treated water transmission mains, doubling its previ-
ous capacity.  In addition, the Town of Lyons used a $5
million DWSRF loan to connect to Longmont's water
treatment plant, abandoning its old plant in the process.
Longmont has an extensive Water Conservation
Program, which has the aim of reducing per capita levels
below historical levels.

CITY OF  RlVERTON,  WY
The City of Riverton used DWSRF funding to rehabilitate
the Riverton Water Treatment Plant in order to keep their
system in compliance with new surface water treatment
requirements. The  project included replacing and
upgrading filters, improving the waste handling system,
replacing air actuated valving systems, and equipping the
plant with corrosion and pH control systems. Their
proactive efforts will help avoid larger costs in the future
when the requirements go  into effect.

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2DD6  WINNERS
Flowing Wells Irrigation District, AZ: One of the community's wells
where an arsenic treatment plant was constructed

REGION 9
FLOWING  WELLS  IRRIGATION
DISTRICT, AZ
Flowing Wells was one of the state's first communities to
address the new federal arsenic rule, receiving a DWSRF
loan to address arsenic levels before the rule went into
effect. Using a $996,600 DWSRF loan, the District built
an arsenic treatment plant using absorptive granular iron
media in pressure vessels and a backwash tank. Arsenic
occurs naturally in the soil and groundwater in Arizona,
and by planning well in advance, Flowing Wells was able
to ensure compliance with the federal arsenic rule and
provide safe drinking water to its residents.

CITY OF  SANTA BARBARA,  CA
The Sheffield Water Quality Project replaced an open-air
reservoir  with two 6.5 million gallon concrete reservoirs
buried below 20 acres of open space. This $20 million
project, which took ten years from initial concept to final
completion, required the city to work closely with several
agencies, community members, contractors, and other
stakeholders.  At the same time, the city provided potable
water storage and delivery to its customers throughout the
project period.

CITY AND  COUNTY OF  HONOLULU
BOARD  OF WATER  SUPPLY,  HI
Honolulu has utilized over $21 million in DWSRF loans
to provide safe drinking water to  over 770,000 people in
three communities. The funds were used for a variety of
                                                       purposes. A well contaminated with alachlor was
                                                       replaced in Weimanalo, the state's largest public water
                                                       system. New treatment facilities were added in Oahu to
                                                       remove nitrate and agricultural pesticides, protecting the
                                                       health of 173,000 people. Finally, a $5.5 million loan was
                                                       used to make distribution system improvements in Ewa
                                                       Beach and Wahiawa.

                                                       TRUCKEE  MEADOWS WATER
                                                       AUTHORITY, NV
                                                       Truckee Meadows Water Authority (TMWA) serves the
                                                       cities of Reno and Sparks through a system of treated sur-
                                                       face water and wells. When arsenic concentrations in some
                                                       of the wells exceeded Clean Drinking Water Act rules,
                                                       TMWA used a $9 million DWSRF loan to construct a con-
                                                       veyance system to transport contaminated well water to the
                                                       surface water plant for treatment. By maximizing use of
                                                       existing facilities, TMWA saved $11 million off the initial
                                                       cost estimate for  addressing the  arsenic contamination.

                                                       REGION  1 D
                                                       CITY  OF HOMER, AK
                                                       The City of Homer used a  DWSRF loan to extend its
                                                       drinking water distribution system into residential areas
                                                       that had previously been served by private wells or
                                                       hauled water. The loan also financed a master plan for
                                                       drinking water infrastructure. Homeowners added to the
                                                       distribution system will repay between fifty and seventy-
                                                       five percent of the cost of the extension over 20 years.  In
                                                       addition, revenues from a 0.75% tax on all purchases
                                                       within the City of Homer will repay the rest of the cost  of
                                                       this project.

                                                       MUD  BAY WATER SYSTEM,  WA
                                                       Mud Bay used a  combination of DWSRF loans and a
                                                       CDBG grant to replace an  existing spring source with a
                                                       well, allowing it  to increase capacity and hook several
                                                       new residents up to the system. These residents had pre-
                                                       viously relied on small wells, which were damaged in a
                                                       2001 earthquake. The funds also helped replace failing
                                                       water mains, install service meters, source meters, and
                                                       shut-off valves.
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    PAYING FOR
    SUSTAINABLE
                    W&ER
    INFRASTRUCTURE
    INNOVATIONS far the 21st CENTURY
        AN UNPRECEDENTED NATIONAL CONFERENCE TO ADDRESS THE CHALLENGE OF INTEGRATING
      THE MANY DIVERSE TOOLS AND STRATEGIES TO PAY FOR SUSTAINABLE WATER INFRASTRUCTURE
                DQNT MISS OUT ON THE ATTRACTIVE EARLY REGISTRATION DISCOUNTS -
                      REGISTER AND MAKE YOUR HOTEL RESERVATIONS TOOAV AT
                                www.payingforwater.coTn

                 Hera is t simple of the informative agenda sessions we're working on:
     STATE AND LOCAL INNOVATIONS
     < Uadrflfl approaches to effoMivt integration! of
      eorratrurtiwi, financing, and management
      hvirovstive institutional padnershipB that work
     * CnJBilvfc state and tool Ites and ether rwmttt
      sources for water infrastructure
     " Rval successes In a&svl managcnwnt for water
      Methods of achieving full cost pricing while
      nmunn<1 sustaina^k utiitty artions?
FEDERAL ROLES IN WATER INFRASTRUCTURE
INNOVATION
 WaJerEhsa Financing: tapomg the Cull p4nfeal tf the State
 fievotving Funds
 Ruanda, innovations in the SRF program: freeing capital tor
 irwlm*rtl and reduc^f the CPSS oi *ubsidy
 Maximizing putJic health protection through tfie DWSRF pragrani
 USDA Rural Utility Satvicfl Walm Prc-gram: tilB> FularB of
 national program financing
 Hie future federal role in water irtfras4ructure funding


INTERNATIONAL INNOVATIONS IN FINANCE,
TECHNOLOGIES, AND MANAGEMENT
* Lessons frsun abound developing governments and
 IMf(i8lfl*l dvlQpniiH  bank programs, for rmacicing
         mtrrt organizations: a vltaC t*iw rol in intematiMal
 Private sector water providers: where trie/ work, wnere they
 don 1 ; vtfiy they *<*, why they don't
< Lowering costs through technological innovations
                  MARCH 21-23. 2007  - HILTON ATLANTA  - ATLANTA, GEORGIA
GEFA
                   orgta tnviranmiintal Facillcios Auctionry
                         United Stales
                         Environmental Pro!action
                         Agtncy
   FOP, FURTHER INFORMATION AND TO REGISTER, viSF www payinglofWiBter ccmi OR e-mwi, KELLY KUNERT AT kunirtheHyiiep9.gov
Office of Water November 2006 EPA-816-F-06-046

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