Drinking Water Infrastructure Grants
Tribal Set-Aside Program
Revised Guidelines
June 2013
Effective Date:
FINAL DRAFT
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Office of Water (4606M)
EPA816-D-13-001
June 2013
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1 TABLE OF CONTENTS
2
3 LIST OF ACRONYMS 1
4 I. INTRODUCTION 2
5 A. Purpose of Guidelines 2
6 II. PROGRAM OVERVIEW 2
7 A. Roles and Responsibilities 4
8 B. Program Goals and Strategic Measures 4
9 C. Statutory Authority and Controlling Regulations 6
10 III. FUNDING AMOUNT AND ALLOCATION 6
11 A. Funding Amount 6
12 B. Allocation of DWIG-TSA Program Funds 7
13 1. EPA's Drinking Water Infrastructure Needs Survey 7
14 2. IHS's Community Deficiency Profile and Home Inventory Tracking System 7
15 3. Regional Allotment Factor and Allocation Formula 7
16 C. Allotted Funds Memorandum 8
17 D. Potential for Additional Funds 8
18 E. Fund Re-allotments 9
19 IV. POTENTIAL RECIPIENTS AND FUNDING MECHANISMS FOR DWIG-TSA FUNDS 9
20 A. Federally Recognized Tribes 9
21 B. The State of Alaska 10
22 C. Indian Health Service 10
23 V. WATER SYSTEM ELIGIBILITY FACTORS 12
24 A. System Ownership 12
25 B. Public Water Systems Serving Commercial or Industrial Properties 13
26 C. System Location 13
27 D. EPA and Tribal Primacy Authority 13
28 E. Constructed Conveyance Public Water Systems 14
29 VI. ELIGIBLE USES OF DWIG-TSA FUNDS 14
30 A. Expansion, Consolidation or Development of a New Public Water System 15
31 B. Unscheduled "Emergency" Projects 16
32 VII. INELIGIBLE USES OF DWIG-TSA FUNDS 16
33 VIM. COMBINING DWIG-TSA FUNDS WITH OTHER SOURCES OF MONEY 17
34 IX. DWIG-TSA AND CWISA INTER-PROGRAM TRANSFER AUTHORITY 18
35 X. THRESHOLD REQUIREMENTS AND RANKING CRITERIA 18
36 A. Threshold Requirements 19
37 1. Technical, Managerial and Financial Capacity 19
38 2. Systems Compliant with the SDWA 21
39 3. Project Readiness 21
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1 B. Ranking Criteria 22
2 1. Applicant Ability to Self Finance 22
3 2. Project Cost Efficiency 23
4 XI. OGWDW AND REGIONAL PROGRAM RESPONSIBILITIES 24
5 A. OGWDW Responsibilities 24
6 B. Regional Responsibilities 24
7 1. Regional Outreach 25
8 2. Plan & Specification Review 25
9 3. Other Regional Responsibilities 25
10 APPENDICES 27
11 Appendix A. SDWA Section 1452 A-l
12 Appendix B. EPA Administrator's Delegated Authority to DWIG-TSA Program B-l
13 Appendix C. Grant Management and Oversight Requirements C-l
14 Appendix D. Interagency Agreement (IA) Standard Terms and Conditions D-l
15 Appendix E. Federal Cross-Cutting Authorities E-l
16 Appendix F. Example Region Allocation F-l
17 Appendix G. EPA Tribal Drinking Water Program Direct Implementation Nexus (TDI Nex) Data
18 Entry Guidelines G-l
19 Appendix H. Guidelines for Fund Transfer Authority between the DWIG-TSA and CWISA Programs
20 (Map 2013) H-l
21 Appendix I. EPA-Approved Third Party Organizations Meeting the Requirements of National
22 Tribal Drinking Water Operator Certification 1-1
23 Appendix J. Preliminary Engineering Report Template J-l
24 Appendix K. Example Certification Form for a Tribe Documenting Utility Account Information...K-l
25 Appendix L. 2012 Median Metropolitan & Non-metropolitan Household Incomes by State (HUD)
26 L-l
27 Appendix M. IHS 2012 Allowable Cost per Unit M-l
28
29 LIST OF FIGURES
30 Figure 1: DWIG-TSA Program Roles and Responsibilities 5
31 Figure 2: IHS Areas and EPA Regions 11
32 Figure 3: Overview of CWISA and DWIG-TSA Programs Transfer Authority 19
33
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1
2
LIST OF ACRONYMS
ANV
CDP
CWISA
DL
DWIG-TSA
DWINS
DWSRF
EPA
ERP
ETT
FFY
GMO
HITS
HUD
IA
IASSC
IGMS
IHS
MCL
MOA
NPDWR
OECA
OGD
OGWDW
OMB
OW
OWM
PWSS
QAPP
SDS
SDWA
SDWIS
SNC
STARS
TDI Nex
TT
Alaska Native Village
Community Deficiency Profile
Clean Water Indian Set-Aside
Deficiency Level
Drinking Water Infrastructure Grant Tribal Set -Aside
Drinking Water Infrastructure Needs Survey
Drinking Water State Revolving Fund
U.S. Environmental Protection Agency
Enforcement Response Policy
Enforcement Targeting Tool
Federal Fiscal Year
Grants Management Office
Home Inventory Tracking System
U.S. Department of Housing and Urban Development
Interagency Agreement
Interagency Agreement Shared Service Center
Integrated Grants Management System
Indian Health Service
Maximum Contaminant Limit
Memorandum of Agreement
National Primary Drinking Water Regulations
Office of Enforcement and Compliance Assurance
Office of Grants and Debarment
Office of Ground Water and Drinking Water
Office of Management and Budget
Off ice of Water
Office of Waste Management
Public Water System Supervision
Quality Assurance Project Plan
Sanitary Deficiency System
Safe Drinking Water Act
Safe Drinking Water Information System
Significant Noncompliance
Sanitation Tracking and Reporting System
Tribal Drinking Water Program Direct Implementation Nexus
Treatment Technique
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i I. INTRODUCTION
2
3 Section 1452 of the Safe Drinking Water Act (SDWA) authorizes the Environmental Protection Agency
4 (EPA) to award capitalization grants to states to establish a Drinking Water State Revolving Loan Fund
5 (DWSRF). These funds are used to make low interest loans and offer other types of assistance to eligible
6 water systems. Section 1452(i) of the SDWA also authorizes EPA to set aside a portion of each year's
7 DWSRF appropriation and use it to make direct grants (not loans) for capital improvements to public
8 water systems that serve tribes.
9
10 The Drinking Water Infrastructure Grant Tribal Set-Aside (DWIG-TSA) program allocates funds to be used
11 only "for public water system expenditures referred to in subsection (a)(2)/' and to "address the most
12 significant threats to public health." Subsection (a)(2) further directs that financial assistance may be
13 used for public water system expenditures which will facilitate compliance with the National Primary
14 Drinking Water Regulations (NPDWRs) or will otherwise further the health protection objectives of the
15 SDWA (Appendix A).
16
17 EPA's Office of Water (OW) has been delegated the authority by the EPA Administrator to allocate
18 funding to the DWIG-TSA Program. The authority to approve grants to tribes for drinking water
19 infrastructure needs has been delegated by the EPA Administrator to EPA Regions (Appendix B). The
20 fiduciary responsibility, which includes accounting for funds utilization and expenditures of DWIG-TSA
21 Program funds, is a shared responsibility between OW and EPA Regions. This accountability is necessary
22 to allow OW to respond to Congressional and public inquiries and to communicate the program impacts
23 to internal and external stakeholders. Guidelines were developed in 1998 to assist Regions with program
24 implementation. In 2010, EPA initiated a program evaluation of both the DWIG-TSA and Clean Water
25 Indian Set-Aside (CWISA) programs. Through the evaluation, EPA sought to determine the effectiveness
26 of the programs in meeting stated goals and whether program performance measures are accurate
27 indicators of EPA's progress in meeting these goals. The evaluation resulted in recommendations to
28 revise the 1998 guidelines to articulate program goals, priorities, and performance measures and ensure
29 that selected projects meet these standards.
30
31 A. Purpose of Guidelines
32
33 These guidelines provide an overview of the DWIG-TSA Program, describe the allocation process used to
34 distribute funds to the Regions and detail the eligible uses for the funds. They also articulate minimum
35 threshold criteria and ranking requirements for project selection to ensure consistency and
36 transparency across Regional DWIG-TSA Programs. The responsibilities of OW currently implemented
37 through the Office of Ground Water and Drinking Water (OGWDW) and the Regions in administering the
38 DWIG-TSA Program are also discussed along with the administrative policies used to manage the
39 program.
40
41 II. PROGRAM OVERVIEW
42
43 Each year, EPA's OGWDW uses an allocation formula to distribute set-aside funds among the nine EPA
44 Regions with federally recognized tribes. Each EPA Region is responsible for working with the Indian
45 Health Service (IMS) and the tribes in their Region, to identify, prioritize, and select projects to receive
46 funding from its share of the program allowance. Regions are given flexibility in project selection but
47 must ensure that the selection process meets the requirements of SDWA Section 1452(i)(2), which state
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3
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5
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that funds "shall be used to address the most significant threats to public health associated with public
water systems that serve Indian Tribes." Project selection should also prioritize projects that meet, to
the maximum extent practicable, the requirements listed in Section 1452(b)(3)(A) of the SDWA, as
shown below, and the additional requirements outlined in this guidance.
SDWA Section 1452(b)(3)(A) states that funded projects should:
(i) address the most serious risk to human health;
(ii) are necessary to ensure compliance with the requirements of this title; and
(iii) assist systems most in need on a per household basis
To assist in the project selection process, these guidelines establish three threshold requirements that
must be met by a water system serving a tribe prior to award of DWIG-TSA project funding:
• Technical, managerial and financial capacity;
• Compliance with the SDWA (as described in Section X-A-2 ); and
• Project readiness.
In addition, two criteria for ranking projects for funding are also included. These criteria are to ensure
that projects designed to address significant threats to public health are prioritized. They are:
• Evaluation of an applicant's ability to self-finance a project (Recommended Criteria); and
• Evaluation of the project's cost efficiency (Required Criteria).
EPA Regions are responsible for the development of a quantifiable approach for project selection.
There are a number of tools available to Regions to help identify and prioritize projects. These include:
• Responses from American Indian tribes and Alaska Native Villages (ANVs) to Regional project
solicitations;
• Findings from sanitary surveys of public water systems serving tribes;
• Safe Drinking Water Information System (SDWIS) data on systems with maximum contaminant
level (MCL) exceedances/violations, treatment technique violations; and
• Projects included in the IMS Sanitation Deficiency System (SDS) database.
While each Region has flexibility in designing a program that works best for the tribes in that Region,
Regional programs must comply with the statutory requirements and be consistent with the threshold
requirements and ranking criteria outlined in Section X of these guidelines. Prior to implementing their
program under these national guidelines, each Region is required to update their program guidelines.
During this process the Region will allow OGWDW and tribes to review and comment on their guidelines
prior to finalization. Once the guidelines are developed, each Region must work with the IMS and tribes
regarding project selection.
After the Regions have identified the projects to be funded, they must notify OGWDW of their
selections. OGWDW then will transfer the program funds to the Regions, and they work to allocate the
funding in projects. The SDWA authorizes EPA to administer grants to tribes and, in the case of the
ANVs, to the State of Alaska.
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1 The tribes have two methods they can use to implement the project. They may request to administer
2 the project funds themselves through a direct grant, or they may request that IMS administer the project
3 funds for them. To qualify for a grant, the tribe must meet the grant requirements listed in Appendix C
4 and the Region must determine that the tribe has the necessary capacity to successfully complete the
5 project, following an approved grant work plan. If EPA approves a tribe's request to administer the grant
6 itself, a grant agreement is signed between EPA and the tribe and grant regulations must be followed.
7
8 In the case where an interagency agreement (IA) is used, this agreement will be signed between IMS and
9 EPA, and funds are administered by IMS. The required standard terms and conditions for these lAs are
10 provided in Appendix D. In either situation, EPA Regions are responsible for managing the award and for
11 administering and tracking project progress after an award.
12
is A. Roles and Responsibilities
14
15 There are many active partners that participate in the DWIG-TSA Program. Each has responsibilities
16 throughout the different stages of the program, from guideline development, project selection,
17 dispersing funds and managing project construction progress. Figure 1 provides an overview of the
18 DWIG-TSA Program activities and the overarching roles and responsibilities of agencies and offices that
19 participate in the program. The primary partners are EPA Headquarters, Interagency Agreement Shared
20 Service Center (IASSC) West, EPA Regional Grants Management Offices (GMOs), EPA Regional program
21 staff, IMS and tribes/ANVs.
22
23 B. Program Goals and Strategic Measures
24
25 Progress made by the DWIG-TSA Program is measured against Strategic Plan Goal 2 (Protecting
26 America's Waters) of the FY2011-2015 EPA Strategic Plan.1 This goal, Protecting America's Waters, has
27 two program measures by which the DWIG-TSA Program is evaluated:2
28
29 1. Percent of the population in Indian country served by community water systems that receive
30 drinking water that meets all applicable health-based drinking water standards; and
31 2. Number of American Indian and ANV homes provided access to safe drinking water in
32 coordination with other federal agencies.
33
34
1 EPA, September 2010, Fiscal Year 2011 - 2015 EPA Strategic Plan,
http://www2.epa.gov/planandbudget/stategicplan
EPA, April 2012, National Water Program Guidance, Appendix E: 2013 Detailed Measures Appendix,
http://water.epa.gov/resource performance/planning/upload/FY-2013-NWPG-4-20-2012 Appendix-E.pdf
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Figure 1: DWIG-TSA Program Roles and Responsibilities
Headquarters
IASSC or GMO
Region
IMS
Tribe/ANV
Announce
funding
through
annual
allottment
memo
Select
projects
based
threshold
requirements
and ranking
criteria
Work with Regions to select
projects
EPA enters into IA with IMS
EPA enters into direct grant with
Tribe/ANV
Implement project
Manage project progress
Report on
measures*
i
-1
Report
project
progress
i
F
Closeout project
* Tribal Direct Implementation Nexus (TDI Nex) is a data reporting tool used by the DWIG-TSA Program.
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1 In addition to program measures, OGWDW also uses the number of American Indian and ANV homes
2 lacking access to safe drinking water as a program indicator. Information on tribal home access to safe
3 drinking water is obtained from IMS Community Deficiency Profile (CDP) of the Sanitation Tracking and
4 Reporting System (STARS), a database used by IMS to track sanitation facilities deficiencies. In
5 accordance with P.L 94-437, as amended, at 25 DSC 1632(g)(4), IMS associates each American Indian
6 and ANV tribe or community with a deficiency level (DL) between 1 and 5, with DL5 being the greatest
7 deficiency.3
8
9 Tribal homes that lack access to safe drinking water are defined by the Tribal Infrastructure Task Force,4
10 as homes ranked in STARS with a DL 4 or DL 5. IMS is developing the Home Inventory Tracking System
11 (HITS), which will geographically locate all tribal homes with corresponding deficiency attribute data.
12 After HITS is fully populated, it will be used by the DWIG-TSA Program to identify tribal homes for its
13 measure and allocation formula.
14
is C. Statutory Authority and Controlling Regulations
16
17 The statutory authority for DWIG-TSA Program grants is the SDWA, as amended, Section 1401
18 Definitions and Section 1452(i) State Revolving Loan Fund, Indian Tribes. EPA determined that
19 program-specific regulations are not required for the conduct of the DWIG-TSA Program as the
20 regulations in 40 CFR Part 31 Uniform Administrative Requirements for Grants and Cooperative
21 Agreements to State and Local Governments apply to the program.
22
23 There are a number of federal laws, executive orders and government-wide policies that apply
24 additional terms to projects and activities receiving federal financial assistance. These "cross-cutting
25 federal authorities" apply to both direct grant and IA funded projects and include environmental laws
26 such as the National Environmental Policy Act, the National Historic Preservation Act, Endangered
27 Species Act and the Wild and Scenic Rivers Act, and authorities such as Executive Orders on Equal
28 Employment Opportunity and government-wide debarment and suspension rules. A basic list of these
29 cross-cutting-laws is contained in Appendix E.
30
31 III. FUNDING AMOUNT AND ALLOCATION
32
33 A. Funding Amount
34
35 The SDWA allows EPA to use up to 1.5% of the annual DWSRF appropriation to carry out Section 1452 of
36 the SDWA as grants to tribes (the DWIG-TSA Program). Since 2010, EPA has been authorized through its
37 appropriation from Congress to use up to a 2% set aside from the DWSRF each federal fiscal year (FFY)
38 for grants to tribes. The total amount of DWIG-TSA Program funds varies annually based on the DWSRF
39 appropriation level.
40
41
3 Indian Health Service, Office of Environmental Health and Engineering, Division of Sanitation Facilities
Constructions, May 2003, Guide for Reporting Sanitation Deficiencies for Indian Homes and Communities: Working
Draft, http://www.ihs.gov/dsfc/documents/sdsworkingdraft2003.pdf
Infrastructure Task Force Access Subgroup, March 2008, Meeting the Access Goal,
http://www.epa.gov/tp/pdf/infra-tribal-access-plan.pdf
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i B. Allocation of DWIG-TSA Program Funds
2
3 The nine Regions involved with the DWIG-TSA Program each receive a "base" amount that is equal to 2%
4 of the annual DWIG-TSA appropriation, accounting for 18% of the available DWIG-TSA funds. The
5 remaining funds are allotted to the Regions using a formula that incorporates two factors: 1) EPA
6 drinking water infrastructure need cost data; and 2) IMS tribal home count data.
7
8 1. EPA's Drinking Water Infrastructure Needs Survey
9
10 As required by the SDWA, the Drinking Water Infrastructure Needs Survey (DWINS) analysis is updated
11 every four years, making it a resource for drinking water infrastructure cost data for both states and
12 tribes. The American Indian and ANV drinking water infrastructure needs were last updated in the 2011
13 DWINS and will be used in the allocation formula for FFYs 2014 to 2017, at which point updated DWINS
14 data from the 2015 DWINS should be available. In FFY 2018 and every four years following, OGWDW, in
15 coordination with the Regions, will examine the source of the cost data to determine if EPA DWINS or
16 IMS Sanitation Deficiency cost data are most representative at that time. Consideration will be given to
17 the timing of when the DWINS survey data was collected.
18
19 2. IHS's Community Deficiency Profile and Home Inventory Tracking System
20
21 In the allocation formula DWIG-TSA funds, DL 3, DL 4 and DL 5 homes are extracted from the data in
22 STARS because of their direct correlation to the goals of the program. Because all homes classified as DL
23 4 and DL 5 lack access to safe drinking water and only a smaller portion of homes classified as DL 3 meet
24 this requirement, homes with DL 4 and DL 5 are given twice the emphasis as DL 3 homes when
25 calculating the Regional allotment factor.
26
27 The DWIG-TSA Program currently uses CDP data, which is updated annually. When the IMS HITS data are
28 used by IMS in their allocation formula, these data will replace the CDP and become the data source for
29 DL 3, DL 4 and DL 5 homes in the DWIG-TSA allocation formula. At that point, only tribal homes
30 associated with a public water system will be included in the allocation formula. Tribal homes not
31 associated with a public water system will not be used in the allocation formula.
32
33 3. Regional Allotment Factor and Allocation Formula
34
35 Using data obtained from DWINS and IMS CDP (and in the future HITS), the allotment factor for each
36 Region is calculated by the following formula.
37
Region A Allotment Factor =
/((DL 4 homes + DL 5 homes) x 2) + DL 3 homes\
0.5 x
in Region A
((DL 4 homes + DL 5 homes) x 2) + DL 3 homes
\ in IHS CDP (or HITS) /
+ 0.5 x
/ DWINS AP+ANV Cost Data for \
/ Region A
1 DWINS AI+ANV Total Cost Nationwide
38
39 *AI-American Indian
40
41 Each Regional allotment of the DWIG-TSA funds is then determined by the following formula.
42
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Regional A Allocation =
(2% x DWIG TSA Appropriation) + ((82% x DWIG TSA Appropriation) x Region A Allotment Factor)
2
3 An example Regional allocation based on the 2011 American Indian and ANV DWINS cost data and the
4 November 2012 IMS CDP home counts are provided in Appendix F.
5
6 C. Allotted Funds Memorandum
7
8 After EPA receives its annual appropriation for the fiscal year and OGWDW calculates the Regional
9 funding allotments using the above formula, OGWDW will send an annual allotment memorandum to
10 the Regions. It will list the Regional allocations, provide availability of funds that have been re-allotted,
11 if applicable, and include IMS Allowable Unit cost per home (used to rank projects), if updated
12 information is available. The annual memorandum will also include a list of all health-based drinking
13 water violations data associated with tribally owned American Indian and Alaska Native Village public
14 water systems from the Safe Drinking Water Information System (SDWIS) for the twelve month period
15 of July 1 to June 30. The data will indicate if the cause of each violation could be eliminated with
16 infrastructure improvements. The list will be developed jointly by OGWDW and the Regions. This
17 allocation memorandum will be completed within 30 days of when EPA has received its annual budget
18 appropriation.
19
20 Once Regions receive the memorandum, they have two years to submit to OGWDW their selected
21 projects; however it is strongly encouraged that Regions make their selections by the end of the first
22 year. This recommendation is consistent with the August 2006 memo from the OGWDW Director to
23 improve the state DWSRF program pace and the timely and efficient use of federal capitalization grants.5
24 Once projects are selected, Regions must report available project data as required in the EPA Tribal
25 Drinking Water Program Direct Implementation Nexus (TDI Nex) Data Entry Guidelines (see Appendix G).
26 The purpose of TDI Nex is to provide a comprehensive picture of the DWIG-TSA Program and describe
27 the public health benefits of DWIG-TSA funded projects. Following notification of data entry into the TDI
28 Nex, OGWDW will transfer the funds required for the selected projects to the Regions.
29
30 Regions will be required to update the data entry for each project, following the award, with the
31 assigned IA or grant number and IMS Project Data System project number (if funding is via an IA with
32 IMS).
33
34 D. Potential for Additional Funds
35
36 The EPA capitalization grants to states for DWSRF programs are available for a limited time (two years).
37 The SDWA requires that any funds not obligated to the states within this two-year time frame are to be
38 reallotted among the states that have obligated all of their funds. The SDWA also allows EPA to reserve,
39 and allocate, 10% of these "reallotment" funds for additional grants to tribes (i.e., the DWIG-TSA
40 Program). EPA reserves the maximum amount allowable (10%) of any available reallotment funds for
41 additional grants to tribes through the DWIG-TSA Program. If additional funds become available
42 through this process they will be identified in the annual alloted funds memorandum.
Cynthia C. Dougherty, August, 2006, Memorandum: National Priorities for the Drinking Water State Revolving
Fund, http://www.epa.gov/ogwdw/dwsrf/pdfs/memos/memo dwsrf policy 2006-08-21.pdf
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Formula To calculate the re-allotment of DWSRF funds, EPA uses the same formula that was used
originally to allot the DWIG-TSA funds for that year's appropriation.
Timing
The timing of any re-allotment of DWSRF funds will be established through the DWSRF
program when this event occurs.
2
3 E. Fund Re-allotments
4
5 Any fiscal year DWIG-TSA funds originally allotted to a Region that are not awarded within two years of
6 allocation will be re-allotted among those Regions that have awarded all of their funds for that fiscal
7 year. Funds will not be taken without notification and consultation with the Regions. OGWDW will keep
8 all of the allotted funds for the DWIG-TSA Program within the program. Any funds that are available for
9 internal re-allotments are re-allotted among the EPA Regions using the same formula that was used to
10 originally allot DWIG-TSA funds for that year's appropriation.
11
12 IV. POTENTIAL RECIPIENTS AND FUNDING MECHANISMS FOR
13 DWIG-TSA FUNDS
14
15 Typically, funds are provided through a grant to a tribe, a grant to the State of Alaska or an IA with the
16 IMS.
17
is A. Federally Recognized Tribes
19
20 The SDWA gives EPA the authority to award grants directly to tribes. All tribes recognized by the
21 Bureau of Indian Affairs are eligible to receive grants from the DWIG-TSA Program unless they have
22 been deemed ineligible to receive federal funds by any federal agency or department or the Region
23 determines that the tribe does not have the necessary capacity to successfully complete the project
24 following an approved grant work plan. After the funds are awarded, the tribe may elect to provide
25 some or all of the funds to a local government, a tribal consortium, IMS or a non-tribally owned water
26 system that serves tribal members in order for them to conduct the project. The plan for the tribe's use
27 of the grant funds must be identified in the grant award document. It must also be clear that in such a
28 case, the tribe is still the grant recipient and is ultimately responsible to EPA for proper management of
29 the funds.
30
31 Direct grants to tribes through the DWIG-TSA Program are subject to assistance agreement regulations,
32 Office of Management and Budget (OMB) cost principles, the Cash Management Improvement Act and
33 EPA policies. The grants must be awarded and managed as any other assistance agreement. The Office
34 of Grants and Debarment (OGD) has developed Orders, Grants Policy Issuances (GPIs), and directives to
35 assist project officers and program offices in fulfilling and understanding their responsibilities (available
36 at http://intranet.epa.gov/ogd/policv/policy.htm). Several grant requirements are discussed further in
37 Appendix C.
38
39 Some tribes may elect to have IMS administer and manage the project on their behalf. This requires an
40 IA between EPA and IMS. Funds provided by EPA through an IA to IMS may only be used in agreements
41 authorized by the Indian Sanitation Facilities Act, 42 U.S.C. 2004a (Public Law 86-121). Tribes that have
42 assumed the responsibility to implement the Indian Health Service Sanitary Facilities Construction
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1 Program under Title I or Title III of Public Law 93-638 (Indian Self-Determination Act) can only receive
2 DWIG-TSA funds through a direct grant with EPA.
3
4 B. The State of Alaska
5
6 The SDWA also gives EPA the authority to award grants to the State of Alaska on behalf of ANVs. Award
7 of funds to the State of Alaska for the benefit of ANVs may only occur when the village asks the state to
8 administer the project and the state agrees to manage the project on their behalf. In the case of a grant
9 for a project made to the State of Alaska, DWIG-TSA funds can be provided in an amount not to exceed
10 4% for project management. These indirect project management costs do not include reimbursement
11 for project design or construction oversight responsibilities.
12
13 C. Indian Health Service
14
15 IMS has been providing drinking water infrastructure to tribes through the Sanitation Facilities
16 Construction Program since 1959. IMS is organized in twelve area offices as shown in Figure 2. Some
17 tribes may request that IMS design, construct and/or administer construction of the projects funded with
18 DWIG-TSA Program funds. Assuming that IMS agrees to provide the requested service, the tribe can
19 request EPA to directly transfer the funds for the project to IMS through an IA. An IA reduces the
20 administrative burden on the tribe, lessens paperwork for all parties and provides IMS with access to all
21 of the funds throughout the project.
22
23 Using the Integrated Grants Management System (IGMS), Regions will submit an IA funding package
24 (Decision Memorandum, Commitment Notice and Scope of Work) to IASSC West. A signed
25 memorandum of agreement (MOA) between IMS and a tribal recipient is not required as part of the
26 initial funding package, however, they should be provided to IASSC West for inclusion in the official IA
27 file once available.
28
29 The IA describes the scope of work for the project, milestones, target dates, project period, budget and
30 payment terms. The total project period, including extensions, may not exceed seven years without
31 specific regulatory or statutory authorization, or a signed waiver.6'7 As such, project funds must be
32 liquidated (spent) within that seven-year period. After the IA is executed, the funds are transferred to
33 the IMS Area Office and they are considered obligated for the FFY.
34
35 If multiple projects are to be combined into a single IA, it should be done strategically based on project
36 scale and schedule. Similar-term projects are better grouped together to ensure the award does not
37 extend beyond the seven-year authorization period. Similarly, an IA with multiple projects should be
38 limited to one FFY. Additional projects should not be added to an IA of a previous FFY unless the project
39 is phased over several years and benefits the same tribe; in this case, one IA is preferred.
40
41
42
As per Interagency Agreement Policy Issuance (IPI-08-02), Guidance on Project Period Duration, and
Interagency Agreement Policy Issuance (IPI-11-02), Clarification of Senior Resource Official Review Requirements
for Time Extensions under Interagency Agreements.
Class Waiver for the Clean Water Act Indian Set-Aside and the Safe Drinking Water Act Tribal Set-Aside
Infrastructure Programs dated July 21, 2008.
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Figure 2: IMS Areas and EPA Regions
Indian Health Service (IMS) Areas &
Environmental Protection Agency (EPA) Regions
2
3
4
5
6
7
8
9
10
11
12
13
14
M) EPA Regions
Aberdeen
Alaska
Albuquerque
Bemidji
Billings
California
Nashville
Navajo
Oklahoma City
Phoenix
Portland
Tucson
*Souree. IHS GtS
When DWIG-TSA projects are funded through an IA with IHS, IHS often does the engineering,
construction project management and funds administration. When IHS provides any of these services,
DWIG-TSA funds can be used for these costs. The scope and cost for IHS engineering, construction
project management and administration should be discussed and negotiated between the tribe, EPA
Region and IHS Area. If the design, management and administration costs are more than 15% of the
construction the Region should request written documentation from IHS to include in their project file
explaining the expenditures.
Appendix D contains the IA standard terms and conditions to be used between Regions and IHS Area
offices. These terms and conditions may be updated periodically by IASSC West to incorporate changes
to interagency agreement policies and procedures, add new statutory requirements, or in response to
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1 requests from OGWDW to incorporate additional programmatic requirements that have been mutually
2 agreed upon between OGWDW and the IMS Headquarters. No changes shall be made to the standard
3 terms and conditions included in this guidance by the Regions or IMS Area offices.
4
5 The IA standard terms and conditions specify that an umbrella Quality Assurance Project Plan (QAPP)
6 previously prepared by EPA, defining how samples are collected at the completion of drinking water
7 construction projects, applies to DWIG-TSA funded projects. The QAPP8 describes applicable water
8 sample collection and analysis activities conducted at the completion of drinking water facility
9 construction to ensure proper project performance and operation. If the scope of the DWIG-TSA funded
10 project includes a pilot water treatment facility study or hydraulic network modeling, IMS is responsible
11 for preparing an individual project specific QAPP in accordance with EPA Guidance for Quality Assurance
12 Project Plans.9
13
14 V. WATER SYSTEM ELIGIBILITY FACTORS
15
16 A. System Ownership
17
18 The SDWA specifies that the DWIG-TSA funds be used to address the most significant risks to public
19 health associated with public water systems serving Indian tribes. This can include systems owned by a
20 tribe, or systems owned by someone other than a tribe, as long as the system serves a tribal population,
21 regardless of whether EPA or state primacy has oversight. EPA's definition of what constitutes a
22 system that serves Indian tribes follows.
23
24 Tribally Owned Water Systems: All existing community water systems and all non-profit,
25 non-community water systems owned by a tribal government are considered to serve an Indian
26 tribe and are eligible to have projects funded with DWIG-TSA funds provided they serve tribal
27 homes.
28
29 During project evaluation, Regions should consider whether it is reasonable for the DWIG-TSA to
30 fund the entire cost of the project. In some cases, a significant portion of the water produced by
31 some tribally-owned water systems serves a non-tribal population. The Region must resolve
32 whether it is appropriate for the DWIG-TSA funds to pay for the entire project, or whether the
33 non-tribal community being served should pay for a portion of the project.
34
35 Similarly, a significant portion of the water produced by some tribally-owned community and
36 non-profit non-community water systems will serve connections other than tribal homes
37 (whether it is a tribal or non-tribal entity). In such cases, Regions must decide whether it is
38 appropriate for DWIG-TSA funds to pay for the entire project or whether another entity should
39 pay for a share of the project cost. In both of the above situations, Regions have the
40 responsibility and authority to determine the appropriate DWIG-TSA funding level.
41
42 Non-Tribally Owned Water Systems: The tribal population served by the water system must be
43 governed by a federally recognized tribal entity. When considering projects with
"Water Sample Collection and Analysis QAPP for Tribal Water and Wastewater Infrastructure Projects" signed by
EPA's QA Manager, OWM, OGWDW, and IMS (March 2012).
See "Water Sample Collection and Analysis QAPP for Tribal Water and Wastewater Infrastructure Projects"
signed by EPA's QA Manager, OWM, OGWDW and IMS (March 2012).
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1 non-tribally-owned water systems, Regions must take into account the tribal proportion of the
2 population to benefit from the project. A system's tribal population may be a small percentage
3 of the total service population, but a particular project may be primarily for the benefit of that
4 tribal population. If the project is exclusively, or primarily, for the benefit of a tribal population,
5 then the Region may conclude that the DWIG-TSA should fund the entire cost of the project. On
6 the other hand, if the tribal population benefiting from the project is a relatively small
7 percentage of the total population benefiting from the project, then the Region must conclude
8 that it is not appropriate for the DWIG-TSA to fund the entire cost of the project. In this case the
9 DWIG-TSA Program should fund the project proportionally according to the tribal population
10 served. Regions should evaluate these situations on a project by project basis.
11
12 Federally Owned Systems: The DWIG-TSA Program cannot directly be used to fund drinking
13 water systems owned and operated by the federal government for the benefit of a tribe. If a
14 project meets the criteria of the SDWA 1452(i)(l) and (2); however, tribes may choose to have
15 EPA enter into an IA with a federal agency to provide construction or improvement of drinking
16 water facilities so long as the terms of the IA meet the criteria to be considered a grant or
17 cooperative agreement, and not a contract. That is, the purpose of the IA must be to carry out
18 the public purpose for the benefit of the tribe. It shall not be for the direct benefit or use of the
19 United States Government.
20
21 B. Public Water Systems Serving Commercial or Industrial Properties
22
23 Community water systems typically serve residential properties and their funding for improvements
24 serves the goal of providing safe drinking water to tribal homes. Funding of systems serving solely
25 commercial or industrial uses is not allowed under the DWIG-TSA Program. Funding can only be
26 provided for systems if they serve a tribal residential population and the extent of funding must be
27 scaled to the proportion of water served to residential users.
28
29 C. System Location
30
31 The SDWA does not restrict funding to projects that are within reservations or on tribally-owned land.
32 The Act only requires that the system serve an Indian tribe. As such, system location alone is not a factor
33 in determining eligibility.
34
35 D. EPA and Tribal Primacy Authority
36
37 EPA is directly responsible for the oversight of public water systems operated in Indian country, with the
38 exception of those systems operating on the Navajo Nation and ANVs that are overseen by the Navajo
39 Nation and the State of Alaska, respectively. The entity that regulates or has primacy over the public
40 water system is not a factor in determining eligibility for DWIG-TSA funds. Many federally recognized
41 tribes are eligible to seek and assume authority to operate their own regulatory primacy program under
42 the SDWA. Even if tribes receive this authority, such a determination has no impact on the DWIG-TSA
43 Program. Primacy for overseeing implementation of the SDWA does not alter a tribe's opportunities or
44 limitations under the DWIG-TSA Program.
45
46
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i E. Constructed Conveyance Public Water Systems
2
3 Based on the 1996 Amendments to the SDWA, EPA modified its federal drinking water regulations to
4 adopt a revised definition of "public water system/' and on August 5, 1998 published a revised definition
5 of a public water system. It is defined as "a system for the provision to the public of water for human
6 consumption through pipes or other constructed conveyances, if such system has at least 15 service
7 connections or regularly serves at least 25 individuals."10 Systems that serve Indian tribes and meet this
8 definition are eligible for DWIG-TSA funding. This revised definition expanded the means of delivering
9 water to include not only systems that provide water for human consumption through pipes, but also
10 systems that provide water for human consumption through "other constructed conveyances." A
11 constructed conveyance is broadly interpreted to refer to any manmade conduit such as a ditch, culvert,
12 waterway, flume, mine drain or canal.
13
14 VI. ELIGIBLE USES OF DWIG-TSA FUNDS
15
16 The DWIG-TSA Program can only fund public water system projects that EPA determines will meet the
17 SDWA priorities for funding as discussed in the Program Overview section of this document. These
18 include projects that address the most serious health risks, facilitate compliance with the NPDWR and
19 address those systems most in need (on a household basis). Eligible project categories should directly or
20 in a phased manner:
21
22 • Address a current NPDWR health-based violation (MCL) or treatment technique violation (TT);
23 • Address a current MCL or action level exceedance(s);
24 • Address a system deficiency as part of an approved NPDWR exception;
25 • Address drinking water outages or limited supply needed for human consumption;
26 • Reduce the risk of failure of major treatment or distribution system components;
27 • Provide first service to homes that lack access to safe drinking water; and
28 • Provide operational efficiencies to reduce operation and maintenance costs.
29
30 Examples of eligible projects are provided below.
31
Example Eligible Project Types
Rehabilitate or develop sources (excluding reservoirs, dams, dam rehabilitation and water rights) to
replace contaminated sources;
Install or upgrade treatment facilities if, in the Region's opinion, the project would improve the quality
of drinking water to comply with NPDWR;
Install or upgrade storage facilities, including finished water reservoirs, to prevent microbiological
contaminants from entering the water system;
Install or replace transmission and distribution pipes to prevent contamination caused by leaks or
breaks in the pipe, or improve water pressure to safe levels;
Replace aging infrastructure if the replacement is needed to maintain compliance or further the health
protection goals of the SDWA;
Install new transmission, distribution or service lines to connect existing homes to a public water
supply;
Water efficiency projects (e.g., installation of meters);
Expansion, consolidation or development of a new public water system (Limited Circumstances See
EPA guidelines on the definition of a public water system can be found here:
http://water.epa.gov/infrastructure/drinkingwater/pws/pwsdef2.cfm
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Section A Below); and
Preliminary engineering
reports (PERs) for future project funding by DWIG-TSA Program.*
1
2
3
4
5
6
7
8
9
10
11
12
13
* Regions have the discretion to limit the total amount of funds awarded to develop PERs. See Section X.A.3 on
Project Readiness.
A. Expansion, Consolidation or Development of a New Public Water System
Under limited circumstances, expansion, consolidation or construction of new public water systems are
eligible projects for DWIG-TSA funds. While Section 1452 states that DWIG-TSA funds may only be
used for assisting existing public water systems and are not available for the construction of new public
water systems, EPA believes that the SDWA may be interpreted to permit the creation of new public
water systems, in limited circumstances, to solve the public health problems intended to be addressed
by the statute. The conditions used to determine that development of a new water supply is
appropriate are listed below.
Conditions for Creation of New Water Systems with DWIG-TSA Funds
Options for connection with adjacent public water systems have been fully explored and deemed
unreasonable by EPA Region;
Upon completion of the project, the entity created must meet the federal definition of a public water
system;
Funding is limited to projects where an actual public health problem exists with documented health
risks;
The project must be limited in scope to the specific geographic area affected by health risk; and
The project can only be sized to accommodate a reasonable amount of growth expected over the life of
the facility. Growth cannot be a substantial portion of the project.
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
A project to supply drinking water to existing homes that do not currently receive their drinking water
from an existing public water system is eligible for funding, if the current source of the drinking water
available to the homes has documented concentration levels of contaminants above the MCL for the
NPDWR and/or there is an inadequate supply of safe drinking water at the home to meet the basic
water needs of four gallons per person per day.11 Note that DWIG-TSA grants can only be awarded to
tribes, not directly to the water system or to the individual home owners.
System consolidation can also be an eligible project for DWIG-TSA funds if specific circumstances exist.
The purpose of system consolidation funded by DWIG-TSA is to address the public health risk posed to
the service population by the current system. This is accomplished through provision of an alternative
water source and/or the expansion of the user base to support long-term tribally sustained operation
and maintenance of the system. A project to eliminate an existing public water system through
consolidation with another existing system is eligible for funding if the water served by the system to be
eliminated exceeds the MCL for at least one contaminant included on the NPDWR, has a TT violation,
and/or lacks an adequate quantity of water for human consumption at the home to meet the basic
water needs of four gallons per person per day.12 Additionally, systems which the Region believes are
lacking in adequate technical, managerial and financial capacity are also eligible for consolidation with a
system that demonstrates it has capacity.
Sphere Handbook, Chapter 2: Minimum Standards in Water Supply, Sanitation and Hygiene Promotion.
http://mv.ewb-usa.org/theme/librarv/myewb-usa/proiect-resources/technical/SphereHandbook-Chapter2.pdf
Sphere Handbook, Chapter 2: Minimum Standards in Water Supply, Sanitation and Hygiene Promotion.
http://mv.ewb-usa.org/theme/librarv/myewb-usa/proiect-resources/technical/SphereHandbook-Chapter2.pdf
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1
2 All projects selected for construction of new public water systems, system expansion and system
3 consolidation should meet the project cost efficiency requirements (see the Project Selection Criteria).
4 Regions should avoid funding a costly system consolidation when there are lower capital cost alternative
5 solutions (e.g. treatment), particularly in situations where the tribe has the technical, managerial and
6 financial capacity to operate and maintain its facilities. DWIG-TSA funds are limited and the Region
7 should make award decisions to benefit the maximum tribal population.
8
9 B. Unscheduled "Emergency" Projects
10
11 It is possible that an emergency project will become necessary after a Region uses its prioritization
12 method to rank projects for a year and informs the tribes of the rankings and selections. Such projects
13 can include those where some type of failure was unanticipated or the result of natural disaster or an
14 emergency and may require immediate attention to protect public health. In these cases, the Regions
15 have the authority to fund the emergency project ahead of the selected projects provided it meets the
16 requirements of the DWIG-TSA Program. Funding can be redirected from a project to support an
17 emergency project only between the time the project is identified and entered into TDI Nex and when
18 an IA is signed with IMS or a direct grant is signed by a tribe. After an IA or a direct grant has been signed
19 for a project, funds cannot be redirected. The Region must inform the tribe(s) whose project(s) were
20 by-passed of the Region's decision and provide the rationale behind that decision and update the
21 project data in the TDI Nex. The projects that were by-passed should receive consideration for the next
22 available round of funding. Regions should identify, in their priority system, the types of situations that
23 constitute emergencies.
24
25 VII. INELIGIBLE USES OF DWIG-TSA FUNDS
26
27 According to Section 1452 (a)(2), the SDWA specifically disallows projects for:
28
29 • Monitoring;
30 • Operation and maintenance;
31 • Projects intended primarily for future growth, and
32 • Land acquisition (unless the land is integral to the project and is from a willing seller) (Section
33 1452(k)(l)(A)(i)).
34
35 Water systems serving a tribe that do not meet the threshold requirements established in Section XI of
36 these guidelines are also not eligible for DWIG-TSA funds. In addition, EPA has determined that a
37 number of other types of projects are ineligible for funding through the DWIG-TSA Program.
38
Examples of Projects Ineligible for Funding
Dams, or rehabilitation of dams, including bank stabilization, erosion control or repair to weirs and
flow control structures;
Water rights (except if the water rights are owned by a public water system that is being consolidated
and the EPA Regional Office has determined that the consolidation is necessary because the system to
be consolidated lacks adequate technical, managerial, or financial capacity);
Reservoirs (except for finished water reservoirs and those reservoirs that are part of the treatment
process and are located on the property where the treatment facility is located);
Projects that serve only commercial uses such as livestock watering
Projects needed mainly for fire protection;
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Compliance monitoring; and
Projects for tasks that are considered routine operation and maintenance.
1
2
3
4
5
6
7
8
9
10
There are a number of "non-infrastructure improvement" activities described in SDWA sections
1452(g)(2) and 1452(k) that allow the use of DWSRF fund appropriations. It is EPA's interpretation that
the SDWA does not provide the same allowance for the DWIG-TSA funds. Both sections specifically use
language that a "state" may use funds for these other purposes. SDWA defines a "state" as each of the
50 states, the District of Columbia, and the Commonwealth of Puerto Rico. Indian tribes were not
included in the term "state." As a result, EPA does not have the statutory authority to use DWIG-TSA
funds for the purposes described in sections (g)(2) and (k). These prohibited and ineligible activities are
identified below.
Activities in Section 1452(g)(2) of the SDWA not eligible for DWIG-TSA funds
Supplement the Public Water System Supervision Program;
Administer or provide technical assistance through source water protection programs;
Develop and implement a capacity development strategy; and
Administer an operator certification program.
11
Activities in Section 1452(k) of the SDWA not eligible for DWIG-TSA funds
Loans to water systems to acquire land or a conservation easement;
Loans to any community water system to implement source water protection measures in delineated
areas;
Loans to any community water system to assist them with source water protection;
Technical or financial assistance to any water system to carry out a capacity development strategy; and
Implementation of a wellhead protection program.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Although the SDWA does not provide for the above activities under the DWIG-TSA Program, EPA
recognizes their importance to tribal water system operation, especially system capacity development
(including operator training and certification) and the various source water protection activities. Since
FFY 1998, EPA has received funding under the Public Water System Supervision (PWSS) Program to
provide tribal water systems, regulated under SDWA by the Regions or the Navajo Nation, technical
assistance to improve the technical, financial and managerial capacity of tribes to operate and maintain
their public water systems, among other priorities. In addition, in FFY 2011 EPA began the National
Tribal Drinking Water Operator Certification Program.13
VIII. COMBINING DWIG-TSA FUNDS WITH OTHER SOURCES OF MONEY
There are many sources of financial assistance available to assist tribes with projects to improve their
drinking water systems. In some circumstances, there may not be sufficient funds from one source to
complete a project, therefore, leveraging funds from multiple sources should be recommended to the
tribal applicant. Regions that have limited DWIG-TSA allotments that may not be able to fund an entire
project in one fiscal year should examine this option to ensure funds are not subject to re-allotment.
Authorized through direct implementation authority set forth in Public Law No. 105-65, iii Stat.1334,1374
(1997) and 42 U.S.C. 300j-2(a)(8)
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1 For projects with multiple funding sources, Regions need to evaluate the appropriate amount in which
2 DWIG-TSA funds can contribute. Using the Region's ranking criteria can help assess how a project will
3 address health risks or meet water infrastructure needs of tribal homes. DWIG-TSA funds can be
4 combined with other federal or state funds as long as the Region determines that the portion of funds
5 provided by the DWIG-TSA Program support the requirements of these guidelines.
6
7 There is one exception in which funds cannot be combined for a single project. The SDWA language in
8 Section 1452(i)(l) states that DWIG-TSA funds "may be used by the Administrator to make grants to
9 Indian tribes and ANVs that have not otherwise received either grants from the Administrator under this
10 section or assistance from state loan funds established under this section" (emphasis added). Some
11 states allow tribally-owned public water systems to apply for and receive funds from their state's
12 DWSRF program. While this is another potential source of funds for tribes, the SDWA limits a tribe's
13 ability to mix DWIG-TSA and state DWSRF funds. A tribe may not receive funds from both the DWIG-TSA
14 and a state DWSRF for the same project. In instances where a tribe would like to use both DWIG-TSA
15 and state DWSRF funds to improve a single water system, the two funding sources must be used on
16 separate and discretely different projects.
17
18 The SDWA language should not be interpreted to mean that a tribe is only eligible to receive one grant
19 or only have one project funded from the DWIG-TSA. Some tribes have many systems and it is EPA's
20 interpretation that Congress did not intend that tribes only be allowed to improve one of their systems.
21 Further, some water systems may require multiple projects. Nothing in the above SDWA language
22 should be interpreted to mean that EPA can only fund one project per water system.
23
24 IX. DWIG-TSA AND CWISA INTER-PROGRAM TRANSFER AUTHORITY
25
26 In FFY 2012, Congress provided EPA with the authority to transfer funds between the CWISA
27 administered by the Office of Wastewater Management (OWM) and DWIG-TSA Programs. Starting in
28 FFY 2013, EPA began implementing this authority by allowing Regions the ability to transfer funds
29 between the two programs up to an amount that is equivalent to 33% of a Region's DWIG-TSA
30 allotment. Any transferred clean water infrastructure funds must be used to fund projects that are
31 related to drinking water and will provide the greatest public health benefit to tribes. To determine the
32 amount of funds that could be transferred in each Region, OWM and OGWDW provide funding levels
33 based on EPA Regions. Figure 3 provides an overview of the transfer process for both the CWISA and
34 DWIG-TSA Programs. Appendix H contains the guidelines that outline the required documentation and
35 approvals for an inter-program funds transfer.
36
37 X. THRESHOLD REQUIREMENTS AND RANKING CRITERIA
38
39 Included in this section are DWIG-TSA Program threshold requirements EPA has established that water
40 systems serving tribes must meet prior to funding. These requirements are intended to provide a
41 consistent programmatic approach to evaluating projects submitted for funding and are based on the
42 statutory requirements of EPA under the SDWA. This section also includes ranking criteria EPA Regions
43 can use to prioritize projects for funding. These ranking factors shall be incorporated into the
44 quantifiable selection factors in each Region's program.
45
46
47
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Figure 3: Overview of CWISA and DWIG-TSA Programs Transfer Authority
Regional Allotment Calculations
OWM/OGWDW includes allotments and maximum amount availablefor transfer.
Notification of Transfe r
Regions notify OWM/OGWDW of interest to transfer funds.
Transfe r J ustHkation
Regions submit justification to OWM/OGWDW or Regional Administrator (See Requirements in
Appendix H).
Transfer Justification Review/Approval
Justification reviewed by OWM/OGWDW or Regional Administrator.
2
3
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5
6
7
8
9
10
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Funds Re programming
Upon approval, OWM/OGWDW reprograms funds.
A. Threshold Requirements
There are three threshold requirements that a water system serving a tribe must meet prior to project
funding:
• Technical, managerial and financial capacity;
• Systems compliant with the SDWA; and
• Project readiness.
Regions have the flexibility to include additional threshold requirements in their guidelines that are
consistent with the program's authorities, goals and objectives.
1. Technical. Managerial and Financial Capacity
The DWIG-TSA Program only funds drinking water infrastructure projects at public water systems that
have the technical, managerial and financial capacity to ensure compliance with the requirements of the
SDWA per requirements of Section 1452 (a)(3)(A)(i). EPA has established the following criteria to ensure
this requirement is met by the DWIG-TSA Program.
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1 Prior to the award of DWIG-TSA funds, the public water system receiving the improvement(s) must
2 demonstrate that it has:
3
4 a. Certified Operator: An operator in charge is certified at the appropriate level to operate the
5 public water system, including the infrastructure proposed in the project. Operator certification
6 helps protect human health and the environment by establishing minimum professional
7 standards for the operation and maintenance of public water systems. A tribe or the water
8 system serving the tribe must provide copies of the operator's certification prior to award of
9 DWIG-TSA funds. The certification required to meet this requirement can be issued from EPA, a
10 state or an EPA approved third party (see Appendix I).
11
12 b. Annual Operating Budget: An annual operating budget that shows income, operation and
13 maintenance costs, and short lived asset reserves. A key element in demonstrating public water
14 system managerial and financial capacity is a documented understanding of the revenue and
15 expenditures that allow a system to be operated and maintained over the long term. EPA
16 requires that an annual operating budget for the public water system serving the tribe be
17 provided prior to award with information on income from user rates or other sources, operation
18 and maintenance costs and short lived asset reserves. The recommended details to include in an
19 annual operating budget are included in Section 6.f. "Annual Operation Budget" of the PER
20 requirements document in Appendix J. If a tribe does not have an annual operating budget, EPA
21 Regions are encouraged to work with the tribe to assist them in developing one.
22
23 An annual operating budget is also required when a tribe requests funding for PER development
24 to demonstrate the public water system serving the tribe and considering improvements
25 through DWIG-TSA funds has an operating budget. This operating budget only needs to consider
26 the existing infrastructure under operation by the public water system. Changes to the
27 operating budget that may result from future infrastructure improvements should be reflected
28 in the PER.
29
30 c. Accounting System: An accounting system used to manage the financial operating plan of the
31 public water system benefiting from the funds has the ability to record, track and report the
32 public water system's revenues and expenses separate from other program activities. One of
33 the common features cited by the Infrastructure Task Force is a sustainable utility, where utility
34 funds are managed separately from general tribal funds.14 The ability to track operating funds is
35 an important element in demonstrating a utility's managerial and financial capacity. Expenses or
36 revenues associated with the utility should be managed in a separate accounting system or
37 tracked through separate line items within the tribe's accounting ledger.
38
39 To meet DWIG-TSA Program threshold requirements, tribes must document that the accounting
40 system for the public water system benefiting from the funds has the capability to record, track
41 and report on the program specific financial information independently from other programs.
42 Regions shall require as part of the project award a written certification from the governing
43 body of the public water system that their accounting system meets these requirements. An
44 example certification letter is included in Appendix K.
45
Infrastructure Task Force, January 2012, Summary of Commonalities and Best Practices from Tribal Utility
Interview, http://www.epa.gov/tp/pdf/itf-commonalities-12.pdf
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1 2. Systems Compliant with the SDWA
2
3 The primary purpose of the DWIG-TSA Program is to support the construction of drinking water
4 infrastructure that will facilitate compliance with the SDWA. According to the SDWA Section 1452
5 (a)(3)(A)(ii), DWSRF funds, including those allotted to the DWIG-TSA Program, cannot be awarded to
6 existing public water systems that are in significant noncompliance (SNC) with any requirements of the
7 National Primary Drinking Water Regulations.
8
9 In December 2009, the Office of Enforcement and Compliance Assurance (OECA) released an
10 Enforcement Response Policy (ERP), which provides a new enforcement targeting approach that
11 identifies all unaddressed violations at a public water system. The new approach replaces the prior
12 strategy which focused on water systems in SNC on a rule-by-rule basis. The ERP is supported by the
13 Enforcement Targeting Tool (ETT), which assigns a point value to individual violations at each system to
14 prioritize public water systems with the most serious, numerous or long lasting unaddressed violations
15 for possible enforcement actions.15
16
17 The Director of the OGWDW issued a memo on March 30, 2012, instructing that the term "significant
18 noncompliance" be interpreted for the purpose of the DWSRF Program implementation as systems with
19 ETT scores of 11 or greater.16 This means assistance from the DWIG-TSA Program may not be provided
20 for projects at systems that have an ETT score of 11 or greater prior to award, unless the project will
21 directly address existing violations that impact the ETT score. It should be noted that OECA requires
22 public water systems with an ETT score of 11 or higher to return to compliance within six months of
23 reaching that score, or be addressed through an enforceable order to correct all non-compliance at the
24 system.
25
26 3. Project Readiness
27
28 Projects that have not been fully evaluated prior to funding are at risk of not addressing infrastructure
29 needs to reduce the risk to public health with the most feasible and cost efficient solution and can also
30 result in construction delays. To improve project readiness to ensure that health risks are adequately
31 addressed, a project submitted for funding must have a completed PER that follows the standardized
32 template for PERs developed by the Infrastructure Task Force (Appendix J). The standardized PER
33 makes it easier for tribes to receive funding from more than one federal source and simplifies
34 coordination between federal agencies.
35
36 The PER should clearly describe the public water system's current situation, analyze alternatives and
37 propose a specific course of action from an engineering perspective. The alternatives analysis must
38 compare construction cost and operation and maintenance costs. A project that has been vetted
39 through an alternatives analysis and is ready for implementation ensures that funds are awarded to
40 projects that are ready to proceed to construction.
41
15 Memo dated December 8, 2009 from Cynthia Giles, EPA Assistant Administrator to Regional Administrators.
http://www.epa.gov/enforcement/water/documents/policies/drinking water erp 2009.pdf
16 Cynthia C. Dougherty, March 2012, Memorandum: Update to the Implementation of Capacity Development &
Drinking Water State Revolving Fund Programs to Reflect the New Enforcement Policy & Enforcement
Targeting Tool, http://water.epa.gov/type/groundwater/upload/erpettmemo.pdf
DWIG-TSA Guidelines June 2013
DRAFT 21
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DWIG-TSA funds will not be awarded without the submission of a PER, however there are some
instances in which IMS Area Sanitation Facilities Construction Program Director may determine that a
PER is not required because the project's scope is limited. It should be noted, however, that even when
a PER is not required, an annual operating budget for current operating conditions as part of the funding
award must still be submitted per Section X.A.
As indicated in Section VI, Regions may award projects to develop a PER. Regions should take steps to
ensure that projects receiving funds for development of a PER will be for the construction of
infrastructure authorized by the DWIG-TSA Program and construction ready (pending the availability of
project funds) as soon as possible following completion of the PER. Following completion of a
DWIG-TSA funded PER, Regions have the discretion in their program guidelines to identify how they will
handle award of a DWIG-TSA project to construct the recommended alternative identified in the PER.
B. Ranking Criteria
Regions must develop a quantifiable method of prioritizing projects and the method must be applied to
all the potential projects each fiscal year. Regions have flexibility in developing the prioritization method
within their Region, but must meet the requirements of Section 1452(b)(3)(A) of the SDWA.
SDWA Section 1452(b)(3)(A) states that ftr
•ejects should:
(i) address the most serious risk to human health;
(ii) are necessary to ensure compliance with the requirements of this title; and
(iii) assist systems most in need on a per household basis.
Each Region's prioritization method should differentiate the projects according to the severity of the
health risk to be resolved by the project. Acute health risks should be resolved before non-acute risks
and known threats should be addressed before potential threats. Assuming projects address similar
health risks, ranking criteria can help Regions select the best project for funding in a given fiscal year.
There are two factors that the Regions shall consider in developing their Regional guidelines:
• Evaluation of an applicant's ability to self finance a project (recommended) and
• Evaluation of the project's cost efficiency (required).
Specific ranking criteria for these issues are discussed below. The Regional Administrator in each Region
has the ability to waive these specific criteria on a case-by-case basis. This is allowed if the Region can
demonstrate that a project provides a significant public health benefit or resolves serious compliance
issues as described in Section 1452(b)(3)(A) of the SDWA and that these considerations outweigh these
ranking criteria.
1. Applicant Ability to Self Finance
The ability of tribes to pay for needed infrastructure varies widely across the country. The applicant's
ability to self finance refers to the ability of the community served by the public water system to provide
funds to cover all or a portion of the cost associated with the construction of the proposed
infrastructure. The limited grant funds from the DWIG-TSA Program should be used to assist public
water systems that serve communities with the greatest financial need. Therefore, the Regions may
develop within their project ranking criteria a method to reduce the priority of projects requested from
DWIG-TSA Guidelines
DRAFT
June 2013
22
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1 public water systems that serve a community with a median household income equal to or greater than
2 80% of the statewide nonmetropolitan household income. In the Region's project prioritization this
3 factor is recommended to be weighted to account for a maximum of 7% of the overall calculation, a
4 percentage that is equivalent to the current IMS ranking system for the consideration of other funds that
5 can be added to a project's financing.
6
7 The median household income of the service area and the nonmetropolitan median household income
8 of the state will be determined from available U.S. Census data. If there is reason to believe that the
9 Census data do not provide an accurate representation of the median household income within the area
10 to be served, the reasons will be documented and the applicant may furnish, or the Region may obtain,
11 additional information regarding such median household income. Information will consist of reliable
12 data from local, Regional, state or federal sources, or from a survey conducted by a reliable impartial
13 source.
14
15 Appendix L provides an example of how household income of the water system's service area can be
16 calculated. Also included in Appendix L are current non-metropolitan household income amounts by
17 state prepared by the U.S. Department of Housing and Urban Development (HUD), which are used by
18 the U.S. Department of Agriculture in determining the loan/grant mix for water project awards. These
19 numbers are calculated from the American Community Survey data of the U.S. Census and are updated
20 as new data are released.
21
22 2. Project Cost Efficiency
23
24 SDWA Section 1452(b)(3)(A)(iii) requires the DWIG-TSA Program to assist systems most in need on a per
25 household basis. Including project cost efficiency in the Region's prioritization process addresses this
26 requirement. In the Region's project prioritization this factor is recommended to be weighted to
27 account for a minimum of 15% of the overall ranking process. This weighting factor is consistent with
28 existing IHS ranking criteria.
29
30 IHS determines the economic feasibility of a project by comparing the per unit project cost to serve a
31 home to the total allowable unit cost based on the HUD Dwelling Construction and Equipment Cost
32 (DCE) and the IHS Health Facilities Cost Index.17 The threshold costs included in Appendix M are 50% of
33 the IHS calculated 2012 allowable cost. These figures represent the highest threshold costs allowable for
34 drinking water facilities under the IHS approach. These figures will be updated by OGWDW as they are
35 available from IHS Headquarters and will be provided to the Regions in the annual allotted funds
36 memorandum. Projects with a unit cost per home equal to or greater than the amounts shown in
37 Appendix M will receive a lower priority in the Region's allocation process.
38
39 Regions have the flexibility to develop their own project cost efficiency methodology other than the
40 process described in this guidance. This criterion will be deemed met for Regions that utilize the IHS
41 SDS as the project prioritization process. A Region can increase the weighting factor used to consider
42 cost efficiency or make project cost efficiency a threshold criteria to determine if a project is eligible for
43 funding. In any case, if the project selected for funding has a unit cost equal to or greater than
44 $132,000 per tribal home served, the Regional Administrator must be notified to ensure awareness of
45 such projects.
IHS, May 2003, Guide for Reporting Sanitation Deficiencies for Indian Homes and Communities
http://www.ihs.gov/dsfc/documents/SDSWorkingDraft2003.pdf
DWIG-TSA Guidelines June 2013
DRAFT 23
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1
2 XL OGWDW AND REGIONAL PROGRAM RESPONSIBILITIES
3
4 The responsibilities of OGWDW staff and their Regional counterparts were described in a recent
5 memorandum from OGWDW to Regional drinking water program managers.18 These responsibilities are
6 described below, including the requirements for regular meetings between OGWDW and Regions, and
7 project management responsibilities for all involved with the program.
8
9 A. OGWDW Responsibilities
10
11 Twice a year, OGWDW DWIG-TSA staff will initiate a teleconference with the Regional programs to
12 discuss funding allocation and project selection issues. The first meeting is scheduled approximately 90
13 days following the annual announcement of the funding allocations to the Regions. The second meeting
14 takes place in the fall following the close of the fiscal year to discuss funded project milestones and
15 implementation challenges encountered with the tribes and/or IMS.
16
17 In addition, OGWDW program staff shall:
18
19 1. Designate a DWG-TSA National Program Coordinator with the responsibility for Regional
20 coordination;
21 2. Develop an annual allotted funds memorandum providing the funding amount for that fiscal
22 year to each Region, and update project cost efficiency data (the memo is to be sent to the
23 Regions within 30 days of when EPA's annual appropriation is finalized);
24 3. Monitor and report on the overall progress made by the DWIG-TSA Program in meeting Regional
25 and national goals;
26 4. Schedule, lead and summarize progress meetings with Regions to track projects and identify and
27 resolve problems encountered by Regions during implementation;
28 5. Access, review and summarize the most recent data from SDWIS, IMS PDS and EPA's Integrated
29 Grants Management System prior to the meeting through TDI Nex;
30 6. Work with the Regions to categorize the causes of health based drinking water regulation
31 violations at tribally owned and operated systems as either infrastructure or operations and
32 maintenance related; and
33 7. Identify and coordinate responses to DWIG-TSA Program implementation issues with the IMS
34 Headquarters.
35
36 B. Regional Responsibilities
37
38 After OGWDW allots the DWIG-TSA funds to Regions, Regions are responsible for management and
39 oversight of the direct grants and interagency agreements associated with their projects. Each Region
40 shall develop a set of quantifiable methods and standards to identify and prioritize water system
41 projects. Prior to DWIG-TSA Program funding being obligated for FFY 2014, Regions must submit their
42 guidelines to OGWDW for comment to ensure consistency with these guidelines. Within 30 days of
43 receipt of the Regional guidelines, OGWDW will either inform each Region that their guidelines are
44 consistent with the national program or will provide written comments to the Region for consideration
18 Mindy Eisenberg, EPA OGWDW, March 23, 2012, EPA National Tribal Drinking Water Program Oversight and
Accountability.
DWIG-TSA Guidelines June 2013
DRAFT 24
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1 in revising their guidelines to ensure national consistency. Future updates of the Region's DWIG-TSA
2 Program guidelines must also be submitted to OGWDW for review following the same schedule.
3
4 1. Regional Outreach
5
6 Regions should provide their program guidelines to the tribes in their Region and allow for an adequate
7 opportunity for review and comment. Guidelines should also be redistributed when revisions are
8 made.
9
10 Annually, Regions must inform tribes about projects identified for DWIG-TSA Program funding. They
11 must also inform tribes and other parties about the estimated amount of DWIG-TSA funds to be
12 awarded for each project. In some instances, such as for the ANVs, it may also be appropriate to inform
13 the states of the Region's plans.
14
15 It is important that the Regions consult and coordinate with the local IMS Area Office in project selection
16 to avoid confusion and possible duplication of effort.
17
18 2. Plan & Specification Review
19
20 Prior to project award if a Region has directly provided or funded a review of the plans and
21 specifications for the same or similar project, the Region must ensure that the tribe has sufficiently
22 addressed the review comments provided before project award.
23
24 For projects funded with lAs to IMS following project award where appropriate, EPA Regions shall
25 provide comments to IMS Area Offices on the design and planning documents associated with projects
26 funded through an IA.
27
28 For projects funded through direct grants to tribes following project award, it is recommended that EPA
29 Regions include the following grant conditions:
30
31 Prior to the start of project construction the tribe must:
32
33 a. Provide the plans and specifications to the EPA Region for review and comment
34 b. Sufficiently address the review comments provided by the EPA Region
35
36 3. Other Regional Responsibilities
37
38 EPA Regional Program staff will participate in the semi-annual meetings with OGWDW program staff as
39 discussed in the OGWDW Responsibilities section above. In addition, Regional staff have the
40 responsibility to:
41
42 1. Designate a Regional Program Coordinator to participate in semi-annual meetings/conference
43 calls. The Regional Program Coordinator is responsible for presenting a summary of annual
44 Regional project selection decisions and awarded project status oversight activities;
45 2. Ensure that the Regionally-entered data fields in the TDI Nex are updated according to the Tribal
46 Direct Implementation Nexus Data Guidelines (Appendix G) prior to meetings;
DWIG-TSA Guidelines June 2013
DRAFT 25
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1 3. Work with OGWDW staff to categorize the causes of health based drinking water regulation
2 violations at tribally owned and operated systems as either infrastructure or operations and
3 maintenance related;
4 4. Attend semi-annual meetings prepared to review detailed information on the following topics:
5 a. Individual DWIG-TSA funded project details, schedule, milestones, outputs and planned
6 project oversight for both direct grant and IA awards,
7 b. The factors influencing annual project prioritization and selection for DWIG-TSA award,
8 c. The expected impact of the individual DWIG-TSA projects on Regional goals and national
9 Tribal Drinking Water Program measures,
10 d. Progress on DWIG-TSA project funds expenditure, milestones and outputs, as well as the
11 demonstrated impact on expected Regional outcomes and Tribal Drinking Water
12 Program measures, and
13 e. Identification and qualification of any discrepancies between the amount of funds
14 expended and project milestone progress reported; and
15 5. Identify and report issues associated with EPA Region and IMS Area office coordination or EPA
16 Region and grant recipient coordination that may impact the award of DWIG-TSA funds or
17 completion of DWIG-TSA funded projects.
18
DWIG-TSA Guidelines June 2013
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APPENDICES
DWIG-TSA Guidelines June 2013
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Appendix A. SDWA Section 1452
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Q:\COMP\ENVIR2\SDWA
Sec. 1452 SAFE DRINKING WATER 454
(A) the Indian Tribes is recognized by the Secretary of
the Interior and has a governing body carrying out sub-
stantial governmental duties and powers;
(B) the functions to be exercised by the Indian Tribe
are within the area of the Tribal Government's jurisdic-
tion; and
(C) the Indian Tribe is reasonably expected to be capa-
ble, in the Administrator's judgment, of carrying out the
functions to be exercised in a manner consistent with the
terms and purposes of this title and of all applicable regu-
lations.
(2) PROVISIONS WHERE TREATMENT AS STATE INAPPRO-
PRIATE.—For any provision of this title where treatment of In-
dian Tribes as identical to States is inappropriate, administra-
tively infeasible or otherwise inconsistent with the purposes of
this title, the Administrator may include in the regulations
promulgated under this section, other means for administering
such provision in a manner that will achieve the purpose of the
provision. Nothing in this section shall be construed to allow
Indian Tribes to assume or maintain primary enforcement re-
sponsibility for public water systems or for underground injec-
tion control in a manner less protective of the health of persons
than such responsibility may be assumed or maintained by a
State. An Indian tribe shall not be required to exercise crimi-
nal enforcement jurisdiction for purposes of complying with the
preceding sentence.
[42 U.S.C. 300J-11]
STATE REVOLVING LOAN FUNDS
SEC. 1452. (a) GENERAL AUTHORITY.—
(1) GRANTS TO STATES TO ESTABLISH STATE LOAN FUNDS.—
(A) IN GENERAL.—The Administrator shall offer to
enter into agreements with eligible States to make capital-
ization grants, including letters of credit, to the States
under this subsection to further the health protection ob-
jectives of this title, promote the efficient use of fund re-
sources, and for other purposes as are specified in this
title.
(B) ESTABLISHMENT OF FUND.—To be eligible to receive
a capitalization grant under this section, a State shall es-
tablish a drinking water treatment revolving loan fund (re-
ferred to in this section as a "State loan fund") and comply
with the other requirements of this section. Each grant to
a State under this section shall be deposited in the State
loan fund established by the State, except as otherwise
provided in this section and in other provisions of this
title. No funds authorized by other provisions of this title
to be used for other purposes specified in this title shall be
deposited in any State loan fund.
(C) EXTENDED PERIOD.—The grant to a State shall be
available to the State for obligation during the fiscal year
for which the funds are authorized and during the fol-
lowing fiscal year, except that grants made available from
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
455 SAFE DRINKING WATER Sec. 1452
funds provided prior to fiscal year 1997 shall be available
for obligation during each of the fiscal years 1997 and
1998.
(D) ALLOTMENT FORMULA.—Except as otherwise pro-
vided in this section, funds made available to carry out
this section shall be allotted to States that have entered
into an agreement pursuant to this section (other than the
District of Columbia) in accordance with—
(i) for each of fiscal years 1995 through 1997, a
formula that is the same as the formula used to dis-
tribute public water system supervision grant funds
under section 1443 in fiscal year 1995, except that the
minimum proportionate share established in the for-
mula shall be 1 percent of available funds and the for-
mula shall be adjusted to include a minimum propor-
tionate share for the State of Wyoming and the Dis-
trict of Columbia; and
(ii) for fiscal year 1998 and each subsequent fiscal
year, a formula that allocates to each State the propor-
tional share of the State needs identified in the most
recent survey conducted pursuant to subsection (h),
except that the minimum proportionate share provided
to each State shall be the same as the minimum pro-
portionate share provided under clause (i).
(E) REALLOTMENT.—The grants not obligated by the
last day of the period for which the grants are available
shall be reallotted according to the appropriate criteria set
forth in subparagraph (D), except that the Administrator
may reserve and allocate 10 percent of the remaining
amount for financial assistance to Indian Tribes in addi-
tion to the amount allotted under subsection (i) and none
of the funds reallotted by the Administrator shall be real-
lotted to any State that has not obligated all sums allotted
to the State pursuant to this section during the period in
which the sums were available for obligation.
(F) NONPRIMACY STATES.—The State allotment for a
State not exercising primary enforcement responsibility for
public water systems shall not be deposited in any such
fund but shall be allotted by the Administrator under this
subparagraph. Pursuant to section 1443(a)(9)(A) such
sums allotted under this subparagraph shall be reserved
as needed by the Administrator to exercise primary en-
forcement responsibility under this title in such State and
the remainder shall be reallotted to States exercising pri-
mary enforcement responsibility for public water systems
for deposit in such funds. Whenever the Administrator
makes a final determination pursuant to section 1413(b)
that the requirements of section 1413(a) are no longer
being met by a State, additional grants for such State
under this title shall be immediately terminated by the
Administrator. This subparagraph shall not apply to any
State not exercising primary enforcement responsibility for
public water systems as of the date of enactment of the
Safe Drinking Water Act Amendments of 1996.
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
Sec. 1452 SAFE DRINKING WATER 456
(G) OTHER PROGRAMS.—
(i) NEW SYSTEM CAPACITY.—Beginning in fiscal
year 1999, the Administrator shall withhold 20 per-
cent of each capitalization grant made pursuant to
this section to a State unless the State has met the re-
quirements of section 1420(a) (relating to capacity de-
velopment) and shall withhold 10 percent for fiscal
year 2001, 15 percent for fiscal year 2002, and 20 per-
cent for fiscal year 2003 if the State has not complied
with the provisions of section 1420(c) (relating to ca-
pacity development strategies). Not more than a total
of 20 percent of the capitalization grants made to a
State in any fiscal year may be withheld under the
preceding provisions of this clause. All funds withheld
by the Administrator pursuant to this clause shall be
reallotted by the Administrator on the basis of the
same ratio as is applicable to funds allotted under
subparagraph (D). None of the funds reallotted by the
Administrator pursuant to this paragraph shall be al-
lotted to a State unless the State has met the require-
ments of section 1420 (relating to capacity develop-
ment).
(ii) OPERATOR CERTIFICATION.—The Administrator
shall withhold 20 percent of each capitalization grant
made pursuant to this section unless the State has
met the requirements of 1419* (relating to operator
certification). All funds withheld by the Administrator
pursuant to this clause shall be reallotted by the Ad-
ministrator on the basis of the same ratio as applica-
ble to funds allotted under subparagraph (D). None of
the funds reallotted by the Administrator pursuant to
this paragraph shall be allotted to a State unless the
State has met the requirements of section 1419 (relat-
ing to operator certification).
(2) USE OF FUNDS.—Except as otherwise authorized by this
title, amounts deposited in a State loan fund, including loan
repayments and interest earned on such amounts, shall be
used only for providing loans or loan guarantees, or as a source
of reserve and security for leveraged loans, the proceeds of
which are deposited in a State loan fund established under
paragraph (1), or other financial assistance authorized under
this section to community water systems and nonprofit non-
community water systems, other than systems owned by Fed-
eral agencies. Financial assistance under this section may be
used by a public water system only for expenditures (not in-
cluding monitoring, operation, and maintenance expenditures)
of a type or category which the Administrator has determined,
through guidance, will facilitate compliance with national pri-
mary drinking water regulations applicable to the system
under section 1412 or otherwise significantly further the
health protection objectives of this title. The funds may also be
1So in law. The reference to "1419" probably should be to "section 1419". See the amendment
made by section 130 of Public Law 104-182.
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
457 SAFE DRINKING WATER Sec. 1452
used to provide loans to a system referred to in section
1401(4)(B) for the purpose of providing the treatment described
in section 1401(4)(B)(i)(III). The funds shall not be used for the
acquisition of real property or interests therein, unless the ac-
quisition is integral to a project authorized by this paragraph
and the purchase is from a willing seller. Of the amount cred-
ited to any State loan fund established under this section in
any fiscal year, 15 percent shall be available solely for pro-
viding loan assistance to public water systems which regularly
serve fewer than 10,000 persons to the extent such funds can
be obligated for eligible projects of public water systems.
(3) LIMITATION.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), no assistance under this section shall be provided to
a public water system that—
(i) does not have the technical, managerial, and fi-
nancial capability to ensure compliance with the re-
quirements of this title; or
(ii) is in significant noncompliance with any re-
quirement of a national primary drinking water regu-
lation or variance.
(B) RESTRUCTURING.—A public water system described
in subparagraph (A) may receive assistance under this sec-
tion if—
(i) the use of the assistance will ensure compli-
ance; and
(ii) if subparagraph (A)(i) applies to the system,
the owner or operator of the system agrees to under-
take feasible and appropriate changes in operations
(including ownership, management, accounting, rates,
maintenance, consolidation, alternative water supply,
or other procedures) if the State determines that the
measures are necessary to ensure that the system has
the technical, managerial, and financial capability to
comply with the requirements of this title over the
long term.
(C) REVIEW.—Prior to providing assistance under this
section to a public water system that is in significant non-
compliance with any requirement of a national primary
drinking water regulation or variance, the State shall con-
duct a review to determine whether subparagraph (A)(i)
applies to the system.
(b) INTENDED USE PLANS.—
(1) IN GENERAL.—After providing for public review and
comment, each State that has entered into a capitalization
agreement pursuant to this section shall annually prepare a
plan that identifies the intended uses of the amounts available
to the State loan fund of the State.
(2) CONTENTS.—An intended use plan shall include—
(A) a list of the projects to be assisted in the first fiscal
year that begins after the date of the plan, including a de-
scription of the project, the expected terms of financial as-
sistance, and the size of the community served;
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
Sec. 1452 SAFE DRINKING WATER 458
(B) the criteria and methods established for the dis-
tribution of funds; and
(C) a description of the financial status of the State
loan fund and the short-term and long-term goals of the
State loan fund.
(3) USE OF FUNDS.—
(A) IN GENERAL.—An intended use plan shall provide,
to the maximum extent practicable, that priority for the
use of funds be given to projects that—
(i) address the most serious risk to human health;
(ii) are necessary to ensure compliance with the
requirements of this title (including requirements for
filtration); and
(iii) assist systems most in need on a per house-
hold basis according to State affordability criteria.
(B) LIST OF PROJECTS.—Each State shall, after notice
and opportunity for public comment, publish and periodi-
cally update a list of projects in the State that are eligible
for assistance under this section, including the priority as-
signed to each project and, to the extent known, the ex-
pected funding schedule for each project.
(c) FUND MANAGEMENT.—Each State loan fund under this sec-
tion shall be established, maintained, and credited with repay-
ments and interest. The fund corpus shall be available in per-
petuity for providing financial assistance under this section. To the
extent amounts in the fund are not required for current obligation
or expenditure, such amounts shall be invested in interest bearing
obligations.
(d) ASSISTANCE FOR DISADVANTAGED COMMUNITIES.—
(1) LOAN SUBSIDY.—Notwithstanding any other provision
of this section, in any case in which the State makes a loan
pursuant to subsection (a)(2) to a disadvantaged community or
to a community that the State expects to become a disadvan-
taged community as the result of a proposed project, the State
may provide additional subsidization (including forgiveness of
principal).
(2) TOTAL AMOUNT OF SUBSIDIES.—For each fiscal year, the
total amount of loan subsidies made by a State pursuant to
paragraph (1) may not exceed 30 percent of the amount of the
capitalization grant received by the State for the year.
(3) DEFINITION OF DISADVANTAGED COMMUNITY.—In this
subsection, the term "disadvantaged community" means the
service area of a public water system that meets affordability
criteria established after public review and comment by the
State in which the public water system is located. The Admin-
istrator may publish information to assist States in estab-
lishing affordability criteria.
(e) STATE CONTRIBUTION.—Each agreement under subsection
(a) shall require that the State deposit in the State loan fund from
State moneys an amount equal to at least 20 percent of the total
amount of the grant to be made to the State on or before the date
on which the grant payment is made to the State, except that a
State shall not be required to deposit such amount into the fund
prior to the date on which each grant payment is made for fiscal
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
459 SAFE DRINKING WATER Sec. 1452
years 1994, 1995, 1996, and 1997 if the State deposits the State
contribution amount into the State loan fund prior to September
30, 1999.
(f) TYPES OF ASSISTANCE.—Except as otherwise limited by
State law, the amounts deposited into a State loan fund under this
section may be used only—
(1) to make loans, on the condition that—
(A) the interest rate for each loan is less than or equal
to the market interest rate, including an interest free loan;
(B) principal and interest payments on each loan will
commence not later than 1 year after completion of the
project for which the loan was made, and each loan will be
fully amortized not later than 20 years after the comple-
tion of the project, except that in the case of a disadvan-
taged community (as defined in subsection (d)(3)), a State
may provide an extended term for a loan, if the extended
term—
(i) terminates not later than the date that is 30
years after the date of project completion; and
(ii) does not exceed the expected design life of the
project;
(C) the recipient of each loan will establish a dedicated
source of revenue (or, in the case of a privately owned sys-
tem, demonstrate that there is adequate security) for the
repayment of the loan; and
(D) the State loan fund will be credited with all pay-
ments of principal and interest on each loan;
(2) to buy or refinance the debt obligation of a municipality
or an intermunicipal or interstate agency within the State at
an interest rate that is less than or equal to the market inter-
est rate in any case in which a debt obligation is incurred after
July 1, 1993;
(3) to guarantee, or purchase insurance for, a local obliga-
tion (all of the proceeds of which finance a project eligible for
assistance under this section) if the guarantee or purchase
would improve credit market access or reduce the interest rate
applicable to the obligation;
(4) as a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds
issued by the State if the proceeds of the sale of the bonds will
be deposited into the State loan fund; and
(5) to earn interest on the amounts deposited into the
State loan fund.
(g) ADMINISTRATION OF STATE LOAN FUNDS.—
(1) COMBINED FINANCIAL ADMINISTRATION.—Notwith-
standing subsection (c), a State may (as a convenience and to
avoid unnecessary administrative costs) combine, in accordance
with State law, the financial administration of a State loan
fund established under this section with the financial adminis-
tration of any other revolving fund established by the State if
otherwise not prohibited by the law under which the State loan
fund was established and if the Administrator determines
that—
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Q:\COMP\ENVIR2\SDWA
Sec. 1452 SAFE DRINKING WATER 460
(A) the grants under this section, together with loan
repayments and interest, will be separately accounted for
and used solely for the purposes specified in subsection (a);
and
(B) the authority to establish assistance priorities and
carry out oversight and related activities (other than finan-
cial administration) with respect to assistance remains
with the State agency having primary responsibility for
administration of the State program under section 1413,
after consultation with other appropriate State agencies
(as determined by the State): Provided, That in nonpri-
macy States eligible to receive assistance under this sec-
tion, the Governor shall determine which State agency will
have authority to establish priorities for financial assist-
ance from the State loan fund.
(2) COST OF ADMINISTERING FUND.—Each State may annu-
ally use up to 4 percent of the funds allotted to the State under
this section to cover the reasonable costs of administration of
the programs under this section, including the recovery of rea-
sonable costs expended to establish a State loan fund which
are incurred after the date of enactment of this section, and to
provide technical assistance to public water systems within the
State. For fiscal year 1995 and each fiscal year thereafter, each
State may use up to an additional 10 percent of the funds al-
lotted to the State under this section—
(A) for public water system supervision programs
under section 1443(a);
(B) to administer or provide technical assistance
through source water protection programs;
(C) to develop and implement a capacity development
strategy under section 1420(c); and
(D) for an operator certification program for purposes
of meeting the requirements of section 1419,
if the State matches the expenditures with at least an equal
amount of State funds. At least half of the match must be ad-
ditional to the amount expended by the State for public water
supervision in fiscal year 1993. An additional 2 percent of the
funds annually allotted to each State under this section may
be used by the State to provide technical assistance to public
water systems serving 10,000 or fewer persons in the State.
Funds utilized under subparagraph (B) shall not be used for
enforcement actions.
(3) GUIDANCE AND REGULATIONS.—The Administrator shall
publish guidance and promulgate regulations as may be nec-
essary to carry out the provisions of this section, including—
(A) provisions to ensure that each State commits and
expends funds allotted to the State under this section as
efficiently as possible in accordance with this title and ap-
plicable State laws;
(B) guidance to prevent waste, fraud, and abuse; and
(C) guidance to avoid the use of funds made available
under this section to finance the expansion of any public
water system in anticipation of future population growth.
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
461 SAFE DRINKING WATER Sec. 1452
The guidance and regulations shall also ensure that the States,
and public water systems receiving assistance under this sec-
tion, use accounting, audit, and fiscal procedures that conform
to generally accepted accounting standards.
(4) STATE REPORT.—Each State administering a loan fund
and assistance program under this subsection shall publish
and submit to the Administrator a report every 2 years on its
activities under this section, including the findings of the most
recent audit of the fund and the entire State allotment. The
Administrator shall periodically audit all State loan funds es-
tablished by, and all other amounts allotted to, the States pur-
suant to this section in accordance with procedures established
by the Comptroller General.
(h) NEEDS SURVEY.—The Administrator shall conduct an as-
sessment of water system capital improvement needs of all eligible
public water systems in the United States and submit a report to
the Congress containing the results of the assessment within 180
days after the date of enactment of the Safe Drinking Water Act
Amendments of 1996 and every 4 years thereafter.
(i) INDIAN TRIBES.—
(1) IN GENERAL.—ll/2 percent of the amounts appropriated
annually to carry out this section may be used by the Adminis-
trator to make grants to Indian Tribes and Alaska Native vil-
lages that have not otherwise received either grants from the
Administrator under this section or assistance from State loan
funds established under this section. The grants may only be
used for expenditures by tribes and villages for public water
system expenditures referred to in subsection (a)(2).
(2) USE OF FUNDS.—Funds reserved pursuant to paragraph
(1) shall be used to address the most significant threats to pub-
lic health associated with public water systems that serve In-
dian Tribes, as determined by the Administrator in consulta-
tion with the Director of the Indian Health Service and Indian
Tribes.
(3) ALASKA NATIVE VILLAGES.—In the case of a grant for a
project under this subsection in an Alaska Native village, the
Administrator is also authorized to make grants to the State
of Alaska for the benefit of Native villages. An amount not to
exceed 4 percent of the grant amount may be used by the State
of Alaska for project management.
(4) NEEDS ASSESSMENT.—The Administrator, in consulta-
tion with the Director of the Indian Health Service and Indian
Tribes, shall, in accordance with a schedule that is consistent
with the needs surveys conducted pursuant to subsection (h),
prepare surveys and assess the needs of drinking water treat-
ment facilities to serve Indian Tribes, including an evaluation
of the public water systems that pose the most significant
threats to public health.
(j) OTHER AREAS.—Of the funds annually available under this
section for grants to States, the Administrator shall make allot-
ments in accordance with section 1443(a)(4) for the Virgin Islands,
the Commonwealth of the Northern Mariana Islands, American
Samoa, and Guam. The grants allotted as provided in this sub-
section may be provided by the Administrator to the governments
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
Sec. 1452 SAFE DRINKING WATER 462
of such areas, to public water systems in such areas, or to both, to
be used for the public water system expenditures referred to in
subsection (a)(2). The grants, and grants for the District of Colum-
bia, shall not be deposited in State loan funds. The total allotment
of grants under this section for all areas described in this sub-
section in any fiscal year shall not exceed 0.33 percent of the aggre-
gate amount made available to carry out this section in that fiscal
year.
(k) OTHER AUTHORIZED ACTIVITIES.—
(1) IN GENERAL.—Notwithstanding subsection (a)(2), a
State may take each of the following actions:
(A) Provide assistance, only in the form of a loan, to
one or more of the following:
(i) Any public water system described in sub-
section (a)(2) to acquire land or a conservation ease-
ment from a willing seller or grantor, if the purpose of
the acquisition is to protect the source water of the
system from contamination and to ensure compliance
with national primary drinking water regulations.
(ii) Any community water system to implement
local, voluntary source water protection measures to
protect source water in areas delineated pursuant to
section 1453, in order to facilitate compliance with na-
tional primary drinking water regulations applicable
to the system under section 1412 or otherwise signifi-
cantly further the health protection objectives of this
title. Funds authorized under this clause may be used
to fund only voluntary, incentive-based mechanisms.
(iii) Any community water system to provide fund-
ing in accordance with section 1454(a)(l)(B)(i).
(B) Provide assistance, including technical and finan-
cial assistance, to any public water system as part of a ca-
pacity development strategy developed and implemented in
accordance with section 1420(c).
(C) Make expenditures from the capitalization grant of
the State for fiscal years 1996 and 1997 to delineate and
assess source water protection areas in accordance with
section 1453, except that funds set aside for such expendi-
ture shall be obligated within 4 fiscal years.
(D) Make expenditures from the fund for the establish-
ment and implementation of wellhead protection programs
under section 1428.
(2) LIMITATION.—For each fiscal year, the total amount of
assistance provided and expenditures made by a State under
this subsection may not exceed 15 percent of the amount of the
capitalization grant received by the State for that year and
may not exceed 10 percent of that amount for any one of the
following activities:
(A) To acquire land or conservation easements pursu-
ant to paragraph (l)(A)(i).
(B) To provide funding to implement voluntary, incen-
tive-based source water quality protection measures pursu-
ant to clauses (ii) and (iii) of paragraph (1)(A).
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
463 _ SAFE DRINKING WATER _ Sec. 1452
(C) To provide assistance through a capacity develop-
ment strategy pursuant to paragraph (1)(B).
(D) To make expenditures to delineate or assess source
water protection areas pursuant to paragraph (IXC).
(E) To make expenditures to establish and implement
wellhead protection programs pursuant to paragraph
(3) STATUTORY CONSTRUCTION. — Nothing in this section
creates or conveys any new authority to a State, political sub-
division of a State, or community water system for any new
regulatory measure, or limits any authority of a State, political
subdivision of a State or community water system.
(1) SAVINGS. — The failure or inability of any public water sys-
tem to receive funds under this section or any other loan or grant
program, or any delay in obtaining the funds, shall not alter the
obligation of the system to comply in a timely manner with all ap-
plicable drinking water standards and requirements of this title.
(m) AUTHORIZATION OF APPROPRIATIONS. — There are authorized
to be appropriated to carry out the purposes of this section
$599,000,000 for the fiscal year 1994 and $1,000,000,000 for each
of the fiscal years 1995 through 2003. To the extent amounts au-
thorized to be appropriated under this subsection in any fiscal year
are not appropriated in that fiscal year, such amounts are author-
ized to be appropriated in a subsequent fiscal year (prior to the fis-
cal year 2004). Such sums shall remain available until expended.
(n) HEALTH EFFECTS STUDIES. — From funds appropriated pur-
suant to this section for each fiscal year, the Administrator shall
reserve $10,000,000 for health effects studies on drinking water
contaminants authorized by the Safe Drinking Water Act Amend-
ments of 1996. In allocating funds made available under this sub-
section, the Administrator shall give priority to studies concerning
the health effects of cryptosporidium (as authorized by section
1458(c)), disinfection byproducts (as authorized by section 1458(c)),
and arsenic (as authorized by section 1412(b)(12)(A)), and the im-
plementation of a plan for studies of subpopulations at greater risk
of adverse effects (as authorized by section 1458(a)).
(o) MONITORING FOR UNREGULATED CONTAMINANTS. — From
funds appropriated pursuant to this section for each fiscal year be-
ginning with fiscal year 1998, the Administrator shall reserve
$2,000,000 to pay the costs of monitoring for unregulated contami-
nants under section 1445(a)(2)(C).
(p) DEMONSTRATION PROJECT FOR STATE OF VIRGINIA. — Not-
withstanding the other provisions of this section limiting the use
of funds deposited in a State loan fund from any State allotment,
the State of Virginia may, as a single demonstration and with the
approval of the Virginia General Assembly and the Administrator,
conduct a program to demonstrate alternative approaches to inter-
governmental coordination to assist in the financing of new drink-
ing water facilities in the following rural communities in south-
western Virginia where none exists on the date of enactment of the
Safe Drinking Water Act Amendments of 1996 and where such
communities are experiencing economic hardship: Lee County,
Wise County, Scott County, Dickenson County, Russell County, Bu-
chanan County, Tazewell County, and the city of Norton, Virginia.
December 31, 2002
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Q:\COMP\ENVIR2\SDWA
Sec. 1453 SAFE DRINKING WATER 464
The funds allotted to that State and deposited in the State loan
fund may be loaned to a regional endowment fund for the purpose
set forth in this subsection under a plan to be approved by the Ad-
ministrator. The plan may include an advisory group that includes
representatives of such counties.
(q) SMALL SYSTEM TECHNICAL ASSISTANCE.—The Administrator
may reserve up to 2 percent of the total funds appropriated pursu-
ant to subsection (m) for each of the fiscal years 1997 through 2003
to carry out the provisions of section 1442(e) (relating to technical
assistance for small systems), except that the total amount of funds
made available for such purpose in any fiscal year through appro-
priations (as authorized by section 1442(e)) and reservations made
pursuant to this subsection shall not exceed the amount authorized
by section 1442(e).
(r) EVALUATION.—The Administrator shall conduct an evalua-
tion of the effectiveness of the State loan funds through fiscal year
2001. The evaluation shall be submitted to the Congress at the
same time as the President submits to the Congress, pursuant to
section 1108 of title 31, United States Code, an appropriations re-
quest for fiscal year 2003 relating to the budget of the Environ-
mental Protection Agency.
[42 U.S.C. 300J-12]
SOURCE WATER QUALITY ASSESSMENT
SEC. 1453. (a) SOURCE WATER ASSESSMENT.—
(1) GUIDANCE.—Within 12 months after the date of enact-
ment of the Safe Drinking Water Act Amendments of 1996,
after notice and comment, the Administrator shall publish
guidance for States exercising primary enforcement responsi-
bility for public water systems to carry out directly or through
delegation (for the protection and benefit of public water sys-
tems and for the support of monitoring flexibility) a source
water assessment program within the State's boundaries. Each
State adopting modifications to monitoring requirements pur-
suant to section 1418(b) shall, prior to adopting such modifica-
tions, have an approved source water assessment program
under this section and shall carry out the program either di-
rectly or through delegation.
(2) PROGRAM REQUIREMENTS.—A source water assessment
program under this subsection shall—
(A) delineate the boundaries of the assessment areas
in such State from which one or more public water sys-
tems in the State receive supplies of drinking water, using
all reasonably available hydrogeologic information on the
sources of the supply of drinking water in the State and
the water flow, recharge, and discharge and any other reli-
able information as the State deems necessary to ade-
quately determine such areas; and
(B) identify for contaminants regulated under this title
for which monitoring is required under this title (or any
unregulated contaminants selected by the State, in its dis-
cretion, which the State, for the purposes of this sub-
section, has determined may present a threat to public
December 31, 2002
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Appendix B. EPA Administrator's Delegated
Authority to DWIG-TSA Program
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i Appendix B
2 EPA Administrator's Delegated Authority to DWIG-TSA Program
3
4 9-67. Drinking Water State Revolving Fund (DWSRF) Program
5 1200 TN 499
6 2/14/2000
7
8 1. AUTHORITY. Pursuant to Sections 1419, 1420, and 1452 of the Safe Drinking Water Act (SDWA), as
9 amended, the authority to:
10 a. Allot funds among the States, Indian Tribes, Alaskan Native Villages, governments of the
11 Virgin Islands, the Northern Mariana Islands, American Samoa and Guam, the Trust Territory
12 of the Pacific Islands, and to the District of Columbia for drinking water infrastructure needs,
13 as authorized by Section 1452.
14 b. Approve capitalization grant agreements to States and grants to Indian Tribes, Alaskan
15 Native Villages, and the State of Alaska for the benefit of Native Villages, governments or
16 public water systems of the Virgin Islands, the Northern Mariana Islands, American Samoa
17 and Guam, the Trust Territory of the Pacific Islands, and to the District of Columbia for
18 drinking water infrastructure needs, as authorized by Section 1452.
19 c. Make determinations annually on a fiscal year basis to withhold a certain percentage of
20 each capitalization grant, in accordance with Sections 1420(a), 1420(c), and 1452(a)(l)(G)(i),
21 made to a State if it has not:
22 1. developed and is implementing a program to ensure demonstration of technical,
23 managerial, and financial capacity by new community and nontransient,
24 noncommunity water systems; and
25 2. developed and is implementing a strategy to assist public water systems in
26 acquiring and maintaining the technical, managerial, and financial capacity to
27 comply with the Act.
28 d. Concur with determinations made under l(c) and l(e).
29 e. Make determinations to withhold 20% of a State's capitalization grant, in accordance with
30 Section 1419(b) and Section 1452(a)(l)(G)(ii), made to a State if it has not adopted and is
31 implementing a program for the certification of operators of community and nontransient,
32 noncommunity public water systems that meets the requirements of guidelines published
33 pursuant to section 1419(a) or meets the requirements of Section 1419(c).
34 f. Reallot unobligated and withheld funds in accordance with the requirements of Section
35 1452.
36 2. TO WHOM DELEGATED.
37 a. Authorities l(a), l(d), and l(f) are delegated to the Assistant Administrator for Water (OW).
38 b. Authorities l(b), l(c), and l(e) are delegated to Regional Administrators.
39 3. LIMITATIONS.
40 a. To achieve national consistency in withholding decisions under l(c), each Regional
41 Administrator is to make withholding decisions, in accordance with the guidance published
42 under Sections 1420(d)(4) and 1452(g)(3) and must seek concurrence from the Assistant
43 Administrator for OW on:
44 1. the decision on the first State new systems program submitted under Section
45 1420(a) in each Region, and all decisions to withhold funds; and
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1 2. the decision on the first capacity development strategy submitted under Section
2 1420(c) in each region, and all decisions to withhold funds.
3 b. To achieve national consistency in withholding decisions under l(e), each Regional
4 Administrator is to make withholding decisions, in accordance with the guidance published
5 under Sections 1419(a) and 1452(g)(3) and must seek concurrence from the Assistant
6 Administrator for OW on:
7 1. the decision on one State operator certification program submitted under Section
8 1419(b) in each Region, and all decisions to withhold funds;
9 2. the decision on any State operator certification program submitted under Section
10 1419(c) (programs submitted as "equivalent") in each Region, and all decisions to
11 withhold funds;
12 c. Withholdings under l(c) and l(e) do not apply to Native American Tribes, the Virgin Islands,
13 the Northern Mariana Islands, Guam, American Samoa, and the Trust Territory of the Pacific
14 Islands.
15 d. For concurrences under l(b), the Regional Administrator shall obtain the concurrence of
16 the Director of the Office of Ground Water and Drinking Water for the following:
17 1. in those cases where a state capitalization grant applicant requests an exception to
18 cash draw procedures related to aggressive leveraging proposals or other cases
19 which would involve the draw of cash at a more accelerated rate than specified in
20 the DWSRF Guidelines or regulations;
21 2. for approval of any capitalization grants where the DWSRF will be used to generate
22 payments for state match bonds. However, this concurrence is not required if
23 concurrence was given for such use on a previous capitalization grant and there are
24 no changes to the structure of the program.
25 4. REDELEGATION AUTHORITY.
26 a. The authorities delegated to the Assistant Administrator for OW under l(a) and l(f) may not
27 be redelegated.
28 b. The authority delegated to Regional Administrators to approve the initial grant agreement
29 in each State, or the initial grant to the District of Columbia and the above listed territories
30 under l(b) may not be redelegated.
31 c. The authority delegated to Regional Administrators to approve all grants to Native American
32 Tribes and the State of Alaska for the benefit of Native Villages in l(b) may be redelegated
33 to the Regional Division Director level, or equivalent, and may not be redelegated further.
34 d. The authority delegated to Regional Administrators to approve amendments to initial grant
35 agreements and approve subsequent grant agreements to States, the District of Columbia,
36 and above listed territories under l(b) and l(e) may be redelegated to the Regional Division
37 Director level, or equivalent, and may not be redelegated further.
38 e. Regional Administrators may redelegate the authority under l(c) and l(e) to the Water
39 Division Directors, or equivalent, and this authority may not be redelegated further.
40 f. The Assistant Administrator for OW may redelegate the authorities under l(d) and 3(a) and
41 3(b) to the Office Director level or equivalent, and this authority may not be redelegated
42 further.
43 5. ADDITIONAL REFERENCES.
44 a. 40 CFR Parts 30, 31, 32, 141, and 142
45 b. EPA Delegation 1-14, Assistance Agreements
46 c. EPA Assistance Administration Manual
47 d. EPA Guidance on Implementing the Capacity Development Provisions of the Safe Drinking
48 Water Act Amendments of 1996
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1 e. EPA Guidelines for the Certification and Recertification of the Operators of Community and
2 Nontransient Noncommunity Public Water Systems
3 f. EPA DWSRF Program Guidelines and additional regulations and guidance for the Program
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Appendix C. Grant Management and
Oversight Requirements
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1
2
3
4
5
6
7
8
9
10
11
Appendix C
Grant Management and Oversight Requirements
Grants through the DWIG-TSA program are subject to assistance agreement regulations, Office of
Management and Budget (OMB) cost principles, the Cash Management Improvement Act, and Agency
policies. Grants must be awarded and managed as any other assistance agreement. The Office of Grants
and Debarment (OGD) has developed Orders, Grants Policy Issuances (GPIs) and directives to assist
project officers and program offices in fulfilling and understanding their responsibilities (available at
http://intranet.epa.gov/ogd/policv/policy.htm. Several grant requirements are discussed in further
detail below.
Orders, Policies, and Directives Overview
EPA Order 5700.7, Environmental
Results Under Assistance
Agreements
The Order applies to funding packages to the Grants Management
Office after January 1, 2005, and requires EPA Program Offices to:
1) Link proposed assistance agreements to the Agency's Strategic
Plan/Government Performance and Results Act (GPRA)
architecture;
2) Ensure that outputs and outcomes are appropriately addressed in
assistance agreement work plans and funding recommendations;
and
3] Ensure that progress in achieving agreed-upon outputs and
outcomes is adequately addressed in grantee progress reports and
advanced monitoring activities.
OGD policy memorandum GPI
00-02, Pre-Award Costs, and 2 CFR
225
Applies to all grants awarded on or after April 1,2000 and addresses
EPA's revised interpretation of a provision in the general grant
regulations at 40 CFR 31.23(a) concerning the approval ofpre-award
costs.
Addresses EPA's interpretation of a provision in the general grant
regulations at 40 CFR 31.23(a) allowing up to 90 days of preaward
costs.
• Recipients may incur pre-award costs [up to] 90 calendar days
prior to the award date provided they include such costs in their
application, the costs meet the definition ofpre-award costs and
are approved by the EPA Project Officer and EPA Award Official.
• The award official can approve pre-award costs incurred more
than 90 calendar days prior to the grant award date, in appropriate
circumstances, if the pre-award costs are in conformance with the
requirements set forth in 2 CFR 225 (supersedes OMB Circular
A-87, Cost Principles for State, Local, and Indian Tribal
Governments) and with applicable Agency regulations, policies and
guidelines.
If otherwise consistent with the coverage of 2 CFR 225, the following
two situations may meet the requirements at Appendix B 31.
Pre-award costs:
• Any allowable costs incurred after the start of the fiscal year for
which the funds were appropriated but before grant award (i.e. for
a FY 2010 project, this date is October 1, 2009).
• Allowable facilities planning and design costs associated with the
construction portions of the project included in the grant that were
incurred before the start of the fiscal year for which the funds were
appropriated (i.e. for a FY 2010 project, this date is October 1,
2009).
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Orders, Policies, and Directives
OMB Circular A-16, which
incorporates Executive Order
12906 and the One-Stop Geospatial
E-gov Initiative
OGD Cost Review Guidance
EPA Order 5700.6A2, Policy on
Compliance, Review, and Monitoring
OGD directives to project officers
OGD policy memorandum GPI
08-05, Guidance regarding Grants
Management and the Management
of I nteragency Agreements und the
Performance Appraisal and
Recognition System (PARS)
Office of Human Resources (OHR)
PARS policy documents
"Place of performance"
requirement
Project officer must indicate in the funding recommendations for a
proposed assistance agreement that the grant involves or relates to the
creation, collection, or analysis of geospatial information.
GPI's 00-05 & 08-04 require EPA staff to review all elements of cost for
all funding packages. Cost review checklists are available at
http://intranet/epa.gov/ogd/cost review/main/index.htm.
Streamlines post-award management of assistance agreements and
helps ensure effective oversight of recipient performance and
management. Requires EPA project office to develop and carry out
post-award monitoring plan, and conduct annual baseline monitoring
or the equivalent for every award.
Grants will be managed according to the EPA Project Officer Manual
fhttp://intranet.epa.gov/OGD/proiect officer manua!6/)and directives
listed at http://intranet.epa.gov/OGD/policv/policv.htm
For consideration in assessing grants project officer and
supervisor/manager compliance with key grants management policies
under the PARS process, developing PARS performance agreements,
and conducting mid-year and end-of-year performance reviews.
http://intranet.epa.gov/policv/pars/index.htm
For most projects, the geographic information needed includes the
NPDES or SDWIS number(s). For those without these identification
numbers, the latitude and longitude of the project should be provided.
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Appendix D. Inter agency Agreement (IA)
Standard Terms and Conditions
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1 Interagency Agreement between the
2 U.S. Environmental Protection Agency and the Indian Health Service
3 for [Tribal Drinking Water Facilities] Construction
4
5 I. ADMINISTRATIVE TERMS AND CONDITIONS
6
7 This Interagency Agreement (IA) provides for the coordination between the Environmental Protection
8 Agency (EPA) Region [ ] Drinking Water Infrastructure Grants -Tribal Set Aside (DWIG-TSA) Program
9 and the Indian Health Service (IMS) Sanitation Facilities Construction Program. This IA applies to funds
10 appropriated to the EPA under section 1452(i) of the Safe Drinking Water Act, which the EPA intends to
11 transfer to the IMS under this IA.
12
13 If the actual cost of providing the facilities is less than the amount in the Project Documents, the IMS
14 Area Office and the EPA Region, in consultation with the Tribe, will coordinate the disposition of the
15 remaining funds. The parties may decide to increase the scope or identify another project for funding,
16 or the IMS may return the unused funds to the EPA. Any project changes agreed to by the parties must
17 be reflected in the IA through an amendment prior to expiration of the IA and before allocating funds to
18 a new project, unless the IMS decides to return the funds to the EPA. If the parties cannot come to
19 agreement, the IMS will return the funds to the EPA.
20
21 Funds transferred by EPA to the IMS under this IA may only be used in agreements authorized by Indian
22 Sanitation Facilities Act, 42 U.S.C. 2004a.
23
24 The IMS is approved to purchase equipment in accordance with its equipment management policies. The
25 IMS will determine that the equipment is in the best interest of the government and is necessary for the
26 performance of the projects under this IA. Disposition of the equipment will be subject to IMS
27 equipment management policies or as specified in the Project Documents with no further accountability
28 to EPA.
29
30 A. Resolution of Disagreements
31
32 Should disagreements arise on the interpretation of the provisions of this agreement or amendments
33 and/or revisions thereto, that cannot be resolved at the operating level, the area(s) of disagreement
34 shall be stated in writing by each party and presented to the other party for consideration. If
35 agreement or interpretation is not reached within 30 days, the parties shall forward the written
36 presentation of the disagreement to respective higher officials for appropriate resolution.
37
38 If a dispute related to funding remains unresolved for more than 30 calendar days after the parties have
39 engaged in an escalation of the dispute, disputes will be resolved in accordance with instructions
40 provided in the Treasury Financial Manual (TFM) Volume I, Part 2, Chapter 4700, Appendix 10, available
41 at http://www.fms.treas.gov/tfm/index.html.
42
43 B. Duration of Agreement and Termination Procedures
44
45 This agreement shall continue in effect until IMS or EPA provides written notice of termination, or when
46 a project (or projects) funded under this agreement are completed or are no longer needed for the
47 purpose identified in the Project Documents. Any funds that are obligated up to and on the date of
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1 termination will remain obligated to the project(s) identified in this agreement. Notice shall be given
2 to the other party at least 60 days in advance of a termination date.
3
4 As per section 4.3.2 of EPA's "Interagency Agreement Policies, Procedures, and Guidance Manual 2008"
5 the total duration of the project period for an IA may not exceed 7 years unless
6 (1) there is statutory or regulatory authorization for a longer period, (2) a signed waiver from an EPA
7 Director, Office of Grants & Debarment (OGD), or designee, granting an exception is obtained, or (3) in
8 the case of an allocation (appropriation) transfer, a shorter period is mandated, i.e., 5 years. This
9 durational limitation includes both the original period of performance and any extensions. The initial
10 determination of the appropriate length of the project period should take this limitation into account.
11 (For example, an IA between IMS and EPA normally has a 5-year term. The IA can be extended upon
12 approval of the parties for up to two more years for a total IA term of 7-years. An IA cannot be
13 extended beyond the 7-year limit unless a waiver is granted by the EPA Director, Office of Grants &
14 Debarment.) To exceed the 7-year policy limitation, a waiver request must be submitted in writing by
15 the appropriate EPA Senior Resource Official to OGD. The OGD Director, or designee, may approve
16 waivers on a class or individual basis because of national security concerns, circumstances of unusual or
17 compelling urgency, unique programmatic considerations, or because the waiver would be in the public
18 interest.
19
20 C. Sufficient Progress
21
22 EPA expressly reserves the right to terminate the IA for failure to make sufficient progress so as to
23 reasonably ensure completion of the project within the project period (as defined in Section I.B.),
24 including any extensions. EPA will measure sufficient progress by examining the performance required
25 under the Statement of Work, the time remaining for performance, and/or the availability of funds
26 necessary to complete performance. Prior to exercising this right to terminate, EPA will follow the
27 resolution procedures cited Section I.A.
28
29 D. Cost Collection upon Cancellation
30
31 If the EPA cancels the order, the IMS is authorized to collect costs incurred prior to cancellation of the
32 order plus termination costs, up to the total payment amount provided for under the agreement.
33
34 E. lAs with Contracts or Procurement
35
36 The IMS will use its administrative policies and procedures including those under the Buy Indian Act
37 provisions for direct federal acquisition, to implement and execute projects funded under this IA.
38
39 F. Fiscal and Project Reporting Requirements
40
41 The IMS will update its Sanitation Tracking and Reporting System (STARS) quarterly and provide a report
42 in STARS that may be accessed by the EPA. The report will include at minimum, project-specific
43 estimated expenditures and actual milestones achieved to date and will be available to the respective
44 EPA Regional DWIG Program Coordinator and to the EPA Financial Management Center. The STARS will
45 be updated by the 30th day following the end of a quarter, beginning with the first full reporting period
46 after funds are received by the IMS.
47
48 G. Audit Findings
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1
2 If an audit determines that any direct or indirect costs in a project funded under this IA are unallowable,
3 the parties to this IA will be notified immediately following resolution of the audit and the IMS project
4 account will be credited for ineligible costs.
5
6 II. PROGRAMMATIC TERMS AND CONDITIONS
7
8 A. Authority and Purpose
9
10 The activities under this IA are being executed by the EPA pursuant to the Safe Drinking Water Act
11 section 1450 (b), 42 USC 300j-9(b) and 1452(i), 42 USC 300j-12(i). The services and facilities will be
12 provided to the Tribe by the IMS under the Transfer Act, 42 U.S.C. 2001; Indian Sanitation Facilities Act,
13 42 U.S.C. 2004a; and Title III of Indian Health Care Improvement Act, as amended, 25 U.S.C. 1632.
14
15 B. EPA Responsibilities
16
17 1. The EPA Regional Office shall designate a representative to coordinate its participation in projects
18 (Regional Program Coordinator). This representative shall formally advise the respective IMS Area Office
19 of this designation.
20
21 2. As resources permit the EPA shall provide to the IMS and Tribes technical assistance as needed to
22 successfully meet applicable program requirements.
23
24 3. The EPA Regional Office will ensure that the proposed projects are in accordance with the Safe
25 Drinking Water Act, annual national guidance and the Drinking Water Infrastructure Grants Tribal
26 Set-Aside Program Final Guidelines October 1998 and the Addendums.
27
28 4. EPA Regional Office will ensure that water collection and analysis methodologies (as applicable) are
29 in accordance with the IHS/EPA jointly developed Quality Assurance Project Plan (QAPP).
30
31 5. EPA is responsible for any distribution within the EPA of the final technical and financial report
32 provided to the respective EPA Regional Program Coordinator after the construction phase completion.
33
34 6. The EPA will not be a signatory on any Project Summaries or Memorandums of Agreement.
35
36 7. Where appropriate, EPA Regions shall provide comments to IMS Area Offices on the design and
37 planning documents associated with projects funded by the IA within 30 days of receiving said
38 documents.
39
40 8. EPA Regions shall monitor construction progress with: data from the IMS database, discussions with
41 the IMS Area Offices and field site visits as necessary to ensure the level of expended funds is reasonable
42 given the reported milestone dates. The EPA will consult with the IMS Area Office quarterly to discuss
43 project status.
44
45 9. The EPA Regions will participate in the final project inspection, as deemed necessary and resources
46 permitting. At project completion, the EPA Region will review the final technical and financial reports
47 provided by the IMS Area Office and will initiate the necessary EPA close-out process.
48
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1 10. The EPA Regions will acknowledge and respond to IMS Area invitations to participate in project
2 activities within 10 days of receipt.
3
4 C. IMS Responsibilities
5
6 1. The IMS shall implement and execute projects funded under this IA using its administrative policies
7 and procedures as described in the Indian Health Manual, Part 5, Chapter 2, Memorandum of
8 Agreement.
9
10 2. Project Documents (Project Summary/ Memorandum of Agreement or Arrangements as described
11 in 42 U.S.C. 2004a) will be developed by the IMS Area Office, in consultation with the respective Tribes
12 and respective EPA Regional Office.
13
14 3. Unless otherwise stipulated in the project documents, the IMS shall be the lead agency in assuring
15 compliance with the National Environmental Policy Act (NEPA), the National Historic Preservation Act
16 (NHPA), and other applicable Federal requirements only if the EPA funds are deposited in the IMS
17 financial system (UFMS).
18
19 4. Quarterly progress reports will be available to EPA through the IMS STARS system as stated in I.F.,
20 Fiscal and Project Reporting Requirements. Should the need arise and if the agencies mutually agree,
21 the report may be supplemented.
22
23 5. The EPA Regional Office shall be formally notified of and invited to participate in the conceptual
24 design meeting, the final plans and specification review, and the final inspections for projects in which
25 EPA funds are utilized. IMS shall notify the EPA at least 30 business days prior to these events to allow
26 optimal participation. Notification will be by e-mail.
27
28 6. As applicable, upon completion of each project under this IA, all rights title and interest to the
29 provided sanitation facilities shall be transferred to the Tribe or to a responsible entity identified by the
30 Tribe in accordance with the Project Documents. Each respective IMS Area Office shall make such
31 arrangements as they determine necessary for the ownership and operation and maintenance of the
32 completed facilities.
33
34 7. For each project funded under this IA, a final technical and financial report shall be provided no
35 later than 365 days after construction phase completion to the respective EPA Regional Program
36 Coordinator. Electronic copies of the report shall be provided to the EPA representatives identified
37 above in Fiscal Reporting Requirements.
38
39 8. The water sampling umbrella Water Sample Collection and Analysis Quality Assurance Project Plan
40 (QAPP) for Tribal Drinking Water and Wastewater Infrastructure Projects, developed jointly between
41 EPA and IMS, will be implemented by IMS as applicable.
42
43 9. For an EPA funded project for a pilot water treatment study or for a specific hydraulic network
44 model calibration, the IMS will prepare an individual project specific Quality Assurance Project Plan
45 (QAPP) in accordance with EPA Guidance for Quality Assurance Project Plans (QA/G-5) (EPA 2001) which
46 can be found at http://www.epa.gov/QUALITY/qs-docs/r5-final.pdf. The QAPP must be submitted for
47 review and approval by the EPA OW QA Officer through the EPA IA Project Officer, who must approve
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1 the Quality Assurance procedures or standards in writing. EPA will have 60 calendar days to approve
2 the QAPP submitted by IMS, after that time the QAPP will be considered final.
3
4 10. Restrictions on FY13 Funding for Corporations with Unpaid Federal Tax Liabilities and Felony
5 Convictions
6
7 This interagency agreement (IA) obligates and transfers or advances EPA funds appropriated under
8 Public Law 113-6 (Department of Defense, Military Construction and Veterans Affairs, and Full-Year
9 Continuing Appropriations Act, 2013) and Public Law 112-175 (Continuing Appropriations Resolution,
10 2013). As a result, this IA is subject to the provisions contained in the Department of the Interior,
11 Environment, and Related Agencies Appropriations Act, 2012, Public Law 112-74, Division E, Title IV,
12 Sections 433 and 434, regarding unpaid federal tax liabilities and federal felony convictions.
13
14 The IMS is also subject to the provisions of Division E, Sections 433 and 434 of the FY12 Appropriations
15 Act, regarding federal felony convictions and unpaid federal tax liabilities, in accordance with
16 Department of Health & Human Services Acquisition Policy Number 2012-03. IHS will forward to the
17 EPA Award Official, within 45 days, any documentation supporting an award where a written
18 determination was made by the agency debarring and suspending official that suspension or debarment
19 was considered but is not necessary to protect the interests of the Government.
20
21
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Appendix E. Federal Cross-Cutting
Authorities
-------
i Appendix E
2 Federal Cross-Cutting Authorities
3
4 A number of federal laws and Executive Orders apply in Federal financial assistance programs - including
5 projects and activities funded through the DWIG-TSA Program. Below is a list of statutes, regulations, and
6 other information that may be helpful in complying with the requirements of other federal authorities.
7
8 Environmental Authorities
9 • Archeological and Historic Preservation Act of 1974, Pub. L 86-523, as amended
10 • Clean Air Act, Pub. L. 84-159, as amended
11 • Coastal Barrier Resources Act, Pub. L. 97-348
12 • Coastal Zone Management Act, Pub. L. 92-583, as amended
13 • Endangered Species Act, Pub. L. 93-205, as amended
14 • Environmental Justice, Executive Order 12898
15 • Floodplain Management, Executive Order 11988 as amended by Executive Order 12148
16 • Protection of Wetlands, Executive Order 11990
17 • Farmland Protection Policy Act, Pub. L. 97-98
18 • Fish and Wildlife Coordination Act, Pub. L. 85-624, as amended
19 • National Environmental Policy Act, Pub. L. 91-190, as amended
20 • National Historic Preservation Act of 1966, PL 89-665, as amended
21 • Wild and Scenic Rivers Act, Pub. L. 90-542, as amended
22
23 Economic and Miscellaneous Authorities
24 • Demonstration Cities and Metropolitan Development Act of 1966, Pub. L. 89-754, as amended
25 • Executive Order 12372, Intergovernmental Review of Federal Programs
26 • Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean
27 • Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal
28 • Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans
29 • Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended
30 • Debarment and Suspension, Executive Order 12549
31 • Davis-Bacon Act, Pub. L. 107-217, as amended
32
33 Social Policy Authorities
34 • Age Discrimination Act of 1975, Pub. L. 94-135
35 • Title VI of the Civil Rights Act of 1964, Pub. L. 88-3524
36 • Section 13 of the Federal Water Pollution Control Act Amendments of 1972, Pub. L. 92-500 (the
37 Clean Water Act)
38 • Section 504 of the Rehabilitation Act of 1973, Pub. L. 93-112 (including Executive Orders 11914 and
39 11250)
40 • The Drug-Free Workplace Act of 1988, Pub. L. 100-690 (applies only to the capitalization grant
41 recipient)
42 • Equal Employment Opportunity, Executive Order 11246
43 • Women's and Minority Business Enterprise, Executive Orders 11625,12138 and 12432
44 • Section 129 of the Small Business Administration Reauthorization and Amendment Act of 1988, Pub.
45 L. 100-590
46 • Anti-Lobbying Provisions (40 CFR part 30) [applies only to capitalization grant recipients].
47
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Appendix F. Example Region Allocation
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1
2
3
APPENDIX F
Example Regional Allocation
Example Regional Allocation of DWIG-TSA Funding
(Assumed $18,000,000 DWIG-TSA Funding Level1)
Region
1
2
4
5
6
7
8
9
10
Funding Amount2
$ 397,000
$ 475,000
$ 767,000
$ 924,000
$ 3,126,000
$ 548,000
$ 2,488,000
$ 5,863,000
$ 3,412,000
% of Total DWIG-TSA Funds
2.2%
2.6%
4.3%
5.1%
17.4%
3.0%
13.8%
32.6%
19.0%
4
5
6
7
8
9
10
Totals
$ 18,000,000
Note:
1 The funding level used in this example is not based on actual Drinking Water State Revolving Fund
appropriation amount.
2 Allocation distribution based on the 2011 EPA Drinking Water Infrastructure Needs Survey and the
November 2012 IMS home counts using the formula described in Section III B of the guidelines.
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Appendix G. EPA Tribal Drinking Water
Program Direct Implementation Nexus
(TDINex) Data Entry Guidelines
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
EPA Tribal Drinking Water Program
Tribal Direct Implementation Nexus (TDI Nex)
Data Guidelines
March 2012
I. Introduction
The Tribal Direct Implementation Nexus (TDI Nex) unites existing data systems from the
Environmental Protection Agency (EPA) and Indian Health Service (IMS) with EPA Regional Tribal
and Alaska Native Village (ANV) program data to assist in the oversight of the Drinking Water
Infrastructure Grants Tribal Set-Aside (DWIG-TSA) Program. Information from existing agency
wide data systems: the IMS Project Data System (PDS), the EPA Integrated Grants Management
System (IGMS), and the EPA Safe Drinking Water Information System (SDWIS) form the
backbone of the TDI Nex. The EPA Regional Tribal/ANV data supplements the existing data
sources to improve EPA's ability to describe the success of the DWIG-TSA program.
This document summarizes data fields available through the TDI Nex Tool and the
responsibility and frequency of data updates. The use of this tool will start with the FY 2012
funding year and will continue for future funding cycles or until future notice.
22
23
24
25
IMS Project Data
System (PDS)
Integrated Grants
ribal Direct
Implementation
Nexus (TDI Nex)
afe Drinking Water
nformation Syst
(SDWIS)
Management System
(IGMS)
EPA Regional
Tribal/ANV
Program Dat
Figure 1: Data Sources Integrated via the TDI Nex
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
II. Purpose of Data Integration
The data integration effort is part of an overall strategy by EPA to better establish the
specific public health benefits realized in both State and tribal communities by the State
Revolving Fund and DWIG-TSA programs. Date Integration will also improve EPA's ability to:
demonstrate the use of DWIG-TSA funds and identify aspects of DWIG-TSA program
implementation that lead to lasting success in Indian country. The TDI Nex tool will be used to
improve accountability of the DWIG-TSA program by; helping track and summarize the annual
fund usage over time. The outputs of the tool will be used to help the DWIG-TSA program
demonstrate successful implementation overtime including: compliance with the National
Primary Drinking Water Regulations and a summary of EPA infrastructure investments. The
specific Region entered data fields are intended to support EPA's goal of improved program
accountability.
III. Summary of Data Responsibility
Table 1 summarizes the minimum update frequency and responsible entity associated with
the four data sources integrated by the TDI Nex. EPA Headquarters will be responsible for
updating the IGMS, IMS PDS and SDWIS data sources quarterly. The Regional Tribal and ANV
Program Data shall be updated by the EPA Regions at a minimum prior to each of the bi-annual
Regional—Headquarters check in discussions. Additionally, any project changes that impact
the required regional data fields (see Table 3 below) and occur outside of scheduled meetings
should be updated within 30 calendar days of the change.
Table 1: Data Source Minimum Update Frequency and Responsibility
Data Source
Integrated Grants
Management System (IGMS)
Safe Drinking Water
Information System (SDWIS)
IMS Project Data System (PDS)
Regional Tribal and ANV
Program Data
Minimum Update Frequency
Quarterly
Quarterly
Quarterly
Bi-Annually prior to check-in
meetings
Responsibility Entity
EPAHQ
EPAHQ
EPAHQ
EPA Regions
IV. Description of Data Sources
The following section describes the data fields associated with each database included in
the TDI Nex tool.
A. Integrated Grants Management System (IGMS) Data
The IGMS is a database used by EPA to manage grant and interagency agreement funding
agency wide. Twenty - three IGMS data fields that are of importance to EPA's tribal drinking
water program have been incorporated into the TDI Nex via a data pull from IGMS that will be
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1
2
3
4
completed quarterly by EPA Headquarters and uploaded to the TDI Nex tool via an excel
spreadsheet. The IGMS data will include the follow fields:
Table 2: Integrated Grants Management System Data Fields Included in the TDI Nex
Awarding Region Code
Applicant Type
Project Officer
Award Date
Award Fiscal Year
Grant No
Grant Family
Grant Status
Program Code
Project Description
Project Title
Project Start Date
Project End Date
Applicant Name
EPA Amount This Action
Total EPA Amount Awarded to Date
Recipient Contribution: Amended Total
Other Federal Funds: Amended Total
EPA Amount: Amended Total
Expenditure Amount
Unliquidated Obligation Amt
Final Report
Final Report Date
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Detailed description of the data fields in IGMS can be found at this web link:
http://www.epa.gov/enviro/facts/igms/userguide.html
B. Indian Health Service Project Data System (PDS) Data
The IMS maintains six data systems within the Sanitation Tracking and Reporting System
(STARS) the data system that is of most importance to the fiduciary responsibilities of the EPA's
tribal drinking water set aside program is the PDS. PDS data is used by IMS to track
construction project progress. Forty-one PDS data fields of importance to EPA's tribal drinking
set aside water program will been incorporated in the TDI Nex via a quarterly data pull to be
coordinated between EPA and IMS Headquarters. EPA Headquarters will upload the data to
the TDI Nex tool quarterly. The data from PDS will be arranged in six tabs (Project Details,
Project Milestones, Homes, Project Costs, Project Funding and IA Project identification number)
and will include the following fields:
Table 3: IMS Project Data System Data Fields Included in the TDI Nex
IHSArea
PDS Project Number
EPA Region
Project Name
Tribe
Community State Code
Community Name
Project Homes
Total Cost
Total Funding
Percent Construction Complete
Housing Group
Home Type
Number Homes
Homes Served
Initial Deficiency Level (IDL)
Final Deficiency Level (FDL)
First Service Homes
Funding Source Code
Funding Source Name
Fiscal Year
Funding Year
-------
Percent Project Complete
Percent Funds Expended
MOA Signed Date
Construction Start Date
Construction Complete Date
Final Report Date
Last Update
Scope
Percent Construction Complete*
Construction Document Start Date*
Construction Document Complete Date*
Construction Phase Start Date*
Construction Phase End Date*
*lncludes: Proposed, Estimated and Actual
Dates.
Estimated Cost
Actual Cost
Document Num. (IA)
Estimated Amount
Estimated Expenditure
Document (IA) Signed Date
Start Date
End Date
Document (IA) Amount
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Additional information regarding these data fields can be found in the Sanitation Tracking and
Reporting System User Manual (September 2008).
C. Safe Drinking Water Information System (SDWIS) Data
The SDWIS contains information about public water systems and their violation of EPA's
drinking water regulations, as reported by the EPA Regional Direct Implementation Program
and the States. All the publically available in SDWIS available through the EPA Data
Warehouse associated with public water systems serving tribes and ANVs will be imported into
the tool via an Open Database Connectivity (ODBC) by EPA Headquarters on a quarterly basis.
Projects will be associated to one or more public water systems by the Regions through
direct data input. This will link the project to the public water system and their violations,
Enforcement Tracking Tool scores and inventory.
D. EPA Regional/ANV Tribal Program Data
Table 4 contains four key numeric data fields Regions need to fill in order to reference data
tables within the tool.
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1
2
Table 4: Region Entered Project Identifiers
Data Field
Funding Source
Region Project ID#
PDS Number
IA Number
EPA Grant Number
Public Water System
Identification Number
(PWS#)
Description
Identifies where the
program funds will be
taken from
Number which will
identify projects before
there are IGMSorPDS
numbers available
IMS PDS number
associated with the
funded project
Number which identifies
the IA under which the
project is funded.
Number associated with
direct grant project
Number associated with
the system(s) receiving
DWIG-TSA funds
Source
EPA Region
EPA Region
IMS (Must be
entered by EPA
Region)
EPA Region
EPA Region
EPA Region
Location in TDI Nex
Drinking Water
Project Detail
Drinking Water
Project Detail
Drinking Water
Project Detail
Drinking Water
Project Detail
Drinking Water
Project Detail
PWS Details
3
4
5
6
7
8
9
10
11
12
The fields described in Table 5 represent data that is currently not tracked by any of the
aforementioned existing databases, but are required under the 1998 DWIG-TSA Program
Guidelines, as a condition of the EPA National Tribal Drinking Water Operator Certification
program and as part of an overall effort by EPA to better establish the specific public health
benefits realized in both State and tribal communities by the Sate Revolving Fund and
DWIG-TSA programs. Regional project managers will be responsible for data entry for the
fields listed in Table 5.
Table 5: Region Entered Data Fields (required)
Reference
Number
a
b
c
Region Entered Data
Field
Certified Operator(s)
appropriate to
operate/maintain
current infrastructure
Certified Operator(s)
appropriate to
operate/maintain
future infrastructure
Project Purpose
Description
Y/N
Y/N/Agrees to Obtain
Narrative of the specific
public health benefit (s)
achieved by this project
Notes
At the time of
project
application
At the time of
project
application
See Section
IV-D-2 for
additional
Location in TDI
Nex
Drinking Water
Project Detail
Drinking Water
Project Detail
Drinking Water
Project Detail
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d
e
f
g
h
i
j
k
Primary Project
Purpose
Primary Infrastructure
category
Rule violation (s)
Addressed/Prevented
Technical Assistance
(TA) Provided
Technical Managerial
and Financial (TMF)
Capacity
Capacity Agreement
Fiscal Year Funding
Tag
Project Phased
Pick List menu of
purpose categories to
provide sortable data
Enable project to be
categorized by
infrastructure type(s)
(attached)
The specific rule
violation that is being
addressed or prevented
by this infrastructure
(conditional). One
record for each rule
type. Multiple records
for violation type (e.g.
MCL violations will
require one record for
each contaminant
exceeding the MCL.)
Drop down EPA
Funded TA, Other
Funded TA, EPA and
Other Funded TA or
None.
Y/N Water system has
the technical,
managerial, and
financial capacity to
operate the planned
infrastructure
Y/N tribal entity
responsible for funding
water system
operations has entered
into an agreement to
develop the capacity to
operate the planned
infrastructure)
Identifies the fiscal
year of the funds used
for the project
Yes/No
guidance.
See Section
IV-D-3 for
additional
guidance.
See Section
IV-D-4 for
additional
guidance.
Conditional
Currently or in
the last 12
months prior to
project
application.
At the time of
project
application
Conditional
Drinking Water
Project Detail
Drinking Water
Project Detail
Drinking Water
Project Detail
PWS Details
PWS Details
PWS Details
Drinking Water
Project Details
Drinking Water
Project Details
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1
2
3
4
5
Table 6 lists optional data fields that can be used as needed by Regions to assist in their
program management.
Table 6: Region Entered Data Fields (optional)
Reference
Number
1
m
n
o
P
q
r
Region Entered
Data Field
Secondary Project
Purpose
Secondary
Infrastructure
Category
Responsible Entity
Public Water
System O&M
Funding Sources
System Receiving
Infrastructure has
Asset Management
Program
Project
Prioritization Score
Regional Funding
Tracking
Description
Allows categorization of
an additional project
purpose.
Allows categorization of
an additional
infrastructure category
Responsible entity for
oversight of the water
system pick list tribal
utility board, tribal
council, federal
government, local
(non-tribal) government
or none
Identifies the funding
sources and percent that
each attribute to each of
the operation and
maintenance of the water
system. List all sources of
funds (user fees, tribal
enterprise, tribal general
funds, federal
government or other.)
Y/N/Will receive tool as
part of project
Ranking scheme based on
Regional solicitation and
prioritization process
Field used to track
returned and de-obligated
project funds to ensure
full project accounting.
Notes
Pick List
Pick List
Pick list
See Section
IV-D-4 for
additional
guidance.
Location in
TDI Nex
Drinking
Water
Project Detail
Drinking
Water
Project Detail
PWS Details
PWS Details
PWS Details
Drinking
Water
Project Detail
Still in
Progress
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1 1. Region Entered Data Field Descriptions
2
3 a. Certified Drinking Water Operator(s) appropriate to operate/maintain current
4 infrastructure (required): The intent of this field (Yes/No) is to establish if the system
5 receiving project funds has met the grant condition of being operated by an adequately
6 trained and certified operator (DWIG-TSA Guidelines, 17) appropriate for the current
7 system at the time of application for funding. This condition helps ensure the system has
8 adequate technical, managerial and financial capacity as required by SDWA
9 1452(a)(3)(A) and The DWIG-TSA Final Guidelines (16).
10
11 b. Certified Drinking Water Operator(s) appropriate to operate/maintain future
12 infrastructure or agreement to obtain (required): The intent of this field
13 (Yes/No/Agrees to Obtain) is to indicate if the system receiving funds will be operated
14 by an adequately trained and certified operator following project completion. An
15 appropriately certified operator helps ensure the system has adequate technical,
16 managerial, and financial capacity as required by SDWA 1452(a)(3)(A) and The
17 DWIG-TSA Final Guidelines (16).
18
19 c. Project Purpose Narrative (required): the intent of this narrative field is to specifically
20 establish how the infrastructure funded by the DWIG-TSA will improve public health in
21 Indian country by; a.) facilitating compliance with the National Primary Drinking Water
22 Regulations and/or b.) significantly furthering the health objectives of the SDWA (SDWA
23 1452 (a)(2), DWIG-TSA Guidelines, 13). The population of this field explains the
24 contribution a project has to public health protection as indicated by the traditional
25 program measures of GPRA compliance (SP-3) and the provision of access to safe
26 drinking water (SDW-18) and/or other public health impacts. Additional details provided
27 in Section IV-D-2 below.
28
29 d. Primary Project Purpose Category (required): the intent of this data pick list field is to
30 provide easy sorting of projects for data summary and analysis purposes according to
31 categories of public health purpose. Additional details provided in Section IV-D-3
32
33 e. Primary Infrastructure category (required): The intent of this pick list field is to
34 systematically categorize the infrastructure funded by the DWIG-TSA program. Data in
35 this field will allow for a more complete summarization and analysis of the
36 infrastructure built by EPA in Indian country (e.g. infrastructure category most
37 frequently associated with projects to facilitate compliance with the Arsenic Rule). Data
38 in this field will promote the adoption of best practices and allow EPA to quickly identify
39 the general use of funds for a particular system or tribe. Additional detail on this field is
40 provided in Section IV-D-4.
41
42 f. Rule Violations Addressed/Prevented (conditional required): The intent of this field is
43 to establish which drinking water rule violation(s) will be addressed and/or prevented by
44 infrastructure to facilitate compliance with NPDWRs. This field will enable EPA to
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1 establish the actual and preventative contributions of the DWIG-TSA program to rule
2 compliance with SDWA in Indian country. This information will be used with the above
3 field for purposes calculating the DWIG-TSA program's annual impact on
4 non-compliance.
5
6 g. Technical Assistance Provided (required): The intent of this field pick list (PWSS Funded
7 TA, Other Funded TA, Both or None) is to establish if a system receiving DWIG-TSA
8 funded project is receiving or has received support from services funded by EPA's Tribal
9 Public Water System Supervision (PWSS) program, other technical assistance support, or
10 none in the last 12 months prior to funding application. Information in this field will
11 enable EPA to better understand the capacity support provided for each project and
12 promote comparative analysis of post project outcomes.
13
14 h. Technical, managerial and financial (TMF) capacity (required): The intent of this field
15 (Yes/No ) is to establish that the system receiving DWIG-TSA funds currently has
16 adequate technical, managerial, and financial capacity as required by SDWA
17 1452(a)(3)(A) and The DWIG-TSA Final Guidelines (16).
18
19 i. Capacity Agreement (conditional required): The intent of this field (Yes/No) is to
20 establish that a system receiving DWIG-TSA funds that does not possess adequate
21 technical, managerial and financial capacity has entered into an agreement to undertake
22 feasible changes in operations necessary to ensure that the system has the technical,
23 managerial and financial capability to comply with the requirements of SDWA over the
24 long term (SDWA 1452 a(3)(b)).
25
26 j. Fiscal Year Funding Tag (required): The intent of this field is to establish the primary
27 fiscal year of the funds awarded to an infrastructure project. If a project utilizes
28 multiple funding years, the EPA Region should select the fiscal year from which the
29 majority of the project funds originated.
30
31 k. Project Phased (required): The intent of this Y/N field is to determine if additional
32 project phases must be completed before the project purpose is fulfilled. If in order to
33 fulfill the project purpose an additional project(s) must be complete then the project is
34 phased (Yes). If when completed this project will meet the project purpose without a
35 need for additional funding then the project is not phased (No).
36
37 I. Secondary Project Purpose (not required): The intent of this field is to allow regions
38 to categorize a secondary project purpose.
39
40 m. Secondary Infrastructure Category (not required): The intent of this field is to allow
41 regions to categorize additional infrastructure categories as applicable.
42
43 n. Responsible Entity (not required): The intent of this pick list field is to establish how
44 operation of the public water system receiving DWIG-TSA funding is overseen (e.g. a
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1 utility board, tribal council, local non-tribal government, federal government or none).
2 Information in this field will provide insight on the organizational set-up of public water
3 systems receiving EPA funds.
4
5 o. Public Water System Operation and Maintenance Funding Source (not required): The
6 intent of this field is to determine the source(s) of funds utilized by the system to
7 regularly maintain and operate its facilities. Information in this field will provide insight
8 on the organizational set-up of public water systems receiving EPA funds and help
9 identify systems/projects that may benefit from managerial and financial capacity
10 training to help ensure optimal operation of infrastructure over its lifetime. Additional
11 detail on this field is provided in Section IV-D-5.
12
13 p. System Receiving Infrastructure has Asset Management Program (not required): The
14 intent of this field is to establish if the system receiving DWIG-TSA funded infrastructure
15 has or will have by project completion, a program to effectively manage their existing
16 and future assets. EPA has an interest in providing asset management tools for systems
17 in Indian country to help ensure proper operation of water infrastructure to achieve
18 continual compliance with the SDWA and to avoid unnecessary use of program funds.
19
20 q. Project Prioritization Score (not required): This intent of this field is for use by EPA
21 Regions, to indicate the regional ranking associated with a project.
22
23 r. Regional Fund Tracking (not required): The intent of this field is to track funding of
24 projects that utilize funds from multiple fiscal years. As of the date of this guidance
25 this field is still being developed.
26
27 2. Project Purpose Narrative Data Field Entry Requirements
28
29 The below guidelines establish the minimal reporting requirements for data entry in the
30 Project Purpose field by EPA Regional staff. The requirements of this field may be fulfilled
31 through entry into either:
32
33 i. The "Project Description" data field in IGMS data system for direct grant and IA funded
34 projects
35 ii. The "Project Description: data in IMS PDS data system for IA funded projects
36 iii. The "Project Purpose Narrative" data field in the TDI Nex for direct grant and IA funded
37 projects
38
39 If possible, it is recommended that EPA Regional staff utilize option (i) to ensure the quality
40 of the data contained within the "Project Description" field in IGMS is consistent across EPA
41 data systems and to reduce duplicative data entry requirements.
42
43 Option ii could be used for DWIG-TSA projects funded through lAs with IMS. Under this
44 option the EPA Regions could request the IMS Area to input the level of detail required by EPA
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1 into the PDS data system. However, reliance on IMS data does not relieve the EPA Region the
2 burden of following the requirements of the guidelines included in this document.
3
4 Option iii relies upon duplicative direct data entry into the TDI Nex. Data entered into the
5 Project Purpose.
6
7 Project purpose narrative field data that meets the requirements of these guidelines will
8 only need to be re-visited by the EPA Region if changes in scope occur that alter a project's
9 purpose.
10
11 a. Background: The intent of this field is to establish how the infrastructure funded by the
12 DWIG-TSA will improve public health in Indian country by; a.) facilitating compliance
13 with the National Primary Drinking Water Regulations and/or b.) significantly furthering
14 the health objectives of the SDWA (SDWA 1452 (a)(2), DWIG-TSA Guidelines, 13). Data
15 entered into this field must explain the contribution an awarded project will make to the
16 protection of public health as demonstrated by the EPA Tribal Drinking Water program
17 measures SDW-SP3.N11 and SDW-18.N11 and/or other health indicators.
18
19 • SDW-SP3.N11: Percent of the population in Indian country served by community
20 water systems that receive drinking water that meets all applicable health-based
21 drinking water standards.
22 • SDW-18.N11: Number of American Indian and Alaska Native homes provided
23 access to safe drinking water in coordination with other federal agencies.
24
25 b. Field Requirements: This field is to be populated by 1 or more sentences that include
26 the following:
27 • Identification of the specific system infrastructure deficiencies addressed by the
28 awarded project
29 o Identification of the total system infrastructure deficiencies (for phased and
30 shared cost projects)
31 • Description of the negative public health effects and/or threats caused by the
32 identified system infrastructure deficiencies (include an estimate of population
33 affected for phased, first service, new public water system, shared cost and
34 feasibility study projects)
35 o Public health effect: a demonstrated and documented health impact on the
36 service population or the environment (e.g. health-based violations, boil
37 water notices, source water quality monitoring data, etc.)
38 o Public health threat: an identified situation that may lead to a public health
39 effect based upon existing water system deficiencies (e.g. low distribution
40 system pressure, point source pollution, new treatment requirements, etc.)
41 • Description of what infrastructure will be built and how that infrastructure will
42 address the identified deficiencies
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1 • Identification of the specific public health benefit(s) gained or negative public health
2 impact(s) avoided by addressing infrastructure deficiencies. The TDI Nex includes
3 the National Primary Drinking Water Standard health effects language for all
4 regulated drinking water contaminants to assist EPA Regions in fulfilling this
5 requirement.
6 c. Data Entry Examples:
7
8 i. Existing System Upgrade
9
10 This project will prevent TCR violations as well as address DBPR MCL exceedences for TTHMs
11 caused by bacteriological growth and low pressure due to undersized pipe, and dead-ends by
12 replacing existing mains with 5000' of 10 inch pipe to loop the system which will improve the
13 hydraulics, prevent growth and support compliant chlorine residuals.
14
15 ii. First Service Extension
16
17 The project directly addresses an ongoing Radionuclides Rule MCL violation at the current
18 system (PWS ID 090400267) by taking the current system offline and extending the
19 neighboring, NPDWR compliant Bald Hill water system to serve the 30 residents of Bald Hill on
20 Hoopa Valley Tribal Lands. This grant will provide funds for the construction of 2 drinking
21 water tanks, 2 pump stations and 10,000 ft of 6" PVC pipeline. Pre-award costs have been
22 approved back to August 1, 2004.
23
24 iii. New System
25
26 This project will address a significant risk to public health from bacteriological contamination
27 and disruptions in service due to treatment malfunction and water main breaks. One main
28 break resulted in a loss of pressure and required the issuance of a boil water notice. This grant
29 will provide funds for the construction of a new community water system to serve the 60
30 residents of the Kwigillingok Village in Alaska. The system is scheduled to reach the end of its
31 design life by 2014. The new system will include; a new treatment building and equipment, 1
32 new tank, and a new water main and distribution system. The new system will rely on a
33 geothermal power plant installed by the Department of Energy to reduce operating costs and
34 provide circulated heat to prevent pipe breaks.
35
36 iv. Phased Project
37
38 This project is Phase I of IV of an overall plan to construct a 50 mile transmission line and
39 regional water system between Shiprock, NM and Sweetwater, AZ. The fully completed
40 project will address Arsenic MCL violations at 5 water systems (NN0400571, NN0400572,
41 NN0400574, NN0400575, and NN0400578) that serve 7832 residents/1958 homes in 7
42 communities with a current deficiency of 4. In addition, this project will increase revenues by
43 expanding the rate payer base and provide operational efficiencies to help address TCR MR
44 repeat major violations at NN0400572 and NN040574.
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1
2 Phase I will address the Arsenic MCL violation for 600 homes (1200 residents) in the
3 Sweetwater System (NN0400571). Construction will include; two 500,000 gallon water storage
4 tanks in Sweetwater and Teec Nos Pos, a 300 gallon-per-minute (gpm) booster station in
5 Sweetwater with a 3-phase power line upgrade, 17,000' of 6" waterline between the
6 Sweetwater Master Well and the Sweetwater Franco-Western Well, 250' of 14" water
7 transmission line, booster station upgrades at two sites in Beclabito, and a new booster station
8 on the existing inter-tie between Cudei and Beclabito.
9
10 v. Shared Cost Project
11
12 This project will address a risk to public health from bacteriological contamination caused by
13 chlorination equipment malfunction and subsequent interruptions in service as well as a lack of
14 staffing by installing a new water treatment plant. This project includes construction of a new
15 building, two new high service pumps at the water treatment plant for pumping to the
16 community elevated water storage reservoir, two new high service pumps at the lake intake, a
17 chlorine contact tank with equalization storage at the water treatment plant, three chemical
18 treatment rooms for chorine/fluoride, ammonia, and filter cleaning chemicals, and modest
19 office and laboratory space for water treatment plant operation. This project is being funded by
20 EPA and IMS. EPA's contribution will be used to fund outside engineering services to provide
21 specialized design work needed for the geotechnical evaluation, the building and its systems,
22 and possibly the treatment process itself.
23
24 vi. Feasibility Study
25
26 This project is for a feasibility study to target the best option to directly address the Arsenic
27 Rule exemption at the Meneger's Dam water system set to expire in 2015. This project will
28 provide for a feasibility study to compare the total life time system costs of, but not limited to,
29 the following alternatives:
30
31 • Creating an expanded regional water system that will connect the Meneger's Dam water
32 system to the proposed Gu Vo/Pia Oik Regional Water System. The Gu Vo water
33 system will be intertied with the Pia Oik water system under IMS projects TU 99-262 and
34 TU 99-252, creating the Gu Vo/Pia Oik Regional Water System. The Gu VO/Pia Oik
35 Regional Water System will utilize a water source with an arsenic level of only 5 ppb.
36 • Provide a water treatment plant for the Meneger's Dam water system.
37
38 Findings from this study will be used to plan and design the most cost effective and expedient
39 solution to ensure public health protection under the Arsenic Rule for the population served by
40 the Meneger's Dam system.
41
42
43
44
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1 vii. Other Infrastructure
2
3 This project will directly address TCR MCL violations due to bacteriological contamination
4 caused by water system power loss and subsequent pressure loss. Loss of pressure in drinking
5 water systems is closely associated with bacteriological contamination of water supplies and
6 the risk of exposure to disease causing organisms. Both systems have experienced TCR MCL
7 violations and have issued boil water notices over the last year during power failures. One
8 diesel powered generator will be installed at the two small Tribal community water systems to
9 provide power during predictable interruptions in power supplied by San Diego General Electric
10 during wind storms and fire events and maintain pressure within the system.
11
12 3. Project Purpose Category Data Field Entry Requirements
13
14 To enable the categorization and sorting of projects to summarize use of funds and identify
15 trends, the Project Purpose Category "pick list" is to be used in conjunction with the Project
16 Purpose Narrative field. The following list of purpose categories is intended to identify the
17 public health impact of each project. Users will select the primary and if needed secondary
18 categorical purpose for each DWIG-TSA funded project.
19
20 The infrastructure project will [check one] ( directly OR as part of a phased approach):
21
22 a. Address a current NPDWR Health Based Violation (MCL or TT)
23 b. Address a current NPDWR MCL or Action Level exceedance(s)
24 c. Address a secondary contaminant exceedance
25 d. Address a system deficiency as part of an approved NPDWR exemption
26 e. Address drinking water outages or limited supply needed for human consumption
27 f. Reduce the risk of failure of major treatment or distribution system components
28 g. Provide first service to homes that lack access to safe drinking water
29 h. Provide operational efficiencies and reduce O&M
30 i. Other
31
32 4. Infrastructure Category Data Field Entry Requirements
33
34 The Infrastructure Category pick list shall be used to enable the categorization and sorting
35 of projects to summarize the use of funds and identify trends. The following list of
36 infrastructure categories is intended to clearly identify the main purpose of the public water
37 system capital expenditure funded directly by EPA. Users will select the primary and if needed
38 secondary infrastructure category for each DWIG-TSA funded project.
39
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Drinking Water Infrastructure Grants Tribal Set-Aside Program
Project Infrastructure Categories1
DWIG-TSA Project
Infrastructure
Category1
Description
Planning
Engineering Project Report that includes: executive summary,
background narrative, preliminary design description, alternative
considered and recommended solution, permits required, O&M
requirements, environmental considerations, and project cost
estimate.
Design
Construction project plans and budget
Source
Well, well pump, well house, eliminated well pit, abandon well,
aquifer storage and recovery well, surface water intake, raw water
pump, off-stream raw water storage, spring collector, and
de-stratification
Transmission
Raw water transmission and finished water transmission
Treatment
Disinfection: chlorination, chloramination, chlorine dioxide, ozonation,
mixed oxidant type equipment, ultraviolet disinfection, contact basin
for CT, dechlorination of treated water, and chlorine gas scrubber
Complete Plants: conventional filter plant, direct or in-line filter plant,
slow sand filter plant, diatomaceous earth filter plant, membrane
technology for particulate removal, cartridge or bag filtration plant,
lime softening, reverse osmosis, electrodialysis, activated alumina,
manganese green sand (or other oxidation/filtration technology, ion
exchange, groundwater chemical-feed and iron adsorption
Other components/equipment/processes: zebra mussel control,
corrosion control (chemical addition), powdered activated carbon,
aeration, sequestering for iron and/or manganese, chemical feed,
chemical storage tank, fluoride addition, pre-sedimentation basin,
sedimentation/flocculation, granular activated carbon, membrane
filtration, media filters, mechanical waste handling/treatment and
non-mechanical waste handling
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Storage
(finished/treated
water)
Elevated water storage, ground level water storage, hydropneumatic
storage, cisterns and cover for existing water storage
Distribution
Distribution mains (transport water through a piping grid serving
customers), lead service line replacement, service lines, hydrants used
for flushing (not for firefighting), valves (gate, butterfly, and etc.),
control valves (PRVs, altitude, and etc.), backflow prevention
devices/assemblies and water meters
Other
Laboratory capital costs for labs owned by the system, asset
management software/program, computer and automation cost
(SCADA), pump controls/telemetry, emergency power, security
fencing, security other physical (lights, wall, manhole locks, other
locks), security electronic/cyber (computer firewall, closed circuit TV),
and security monitoring tools (identify anomalies in process streams
or finished water)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Above categories adapted from the 2011 Drinking Water Infrastructure Needs Survey and
Assessment. Items listed for each description are intended to indicate where different water
system infrastructure components should be categorized. It is not an exhaustive list of eligible
examples.
5. Water System Funding Source Data Field Entry Requirements (Optional Regional Field)
Public water system (PWS) support for the maintenance and operation is crucial for the
service population to receive the maximal public health benefit from EPA's water infrastructure
investments. The categories listed below enables the user to categorize the source of PWS
operational funding. Categorization of funding source provides a method to easily identify
trends in project award, as well as retrospective analysis of post award performance.
Information contained within this field will also help EPA target the appropriate party for
managerial and financial capacity training to support system viability.
Water System Funding Source
• User Fees
• Tribal Government General Fund
• Tribal Economic Enterprises
• Federal Government
• Other
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Appendix H. Guidelines for Fund Transfer
Authority between the DWIG-TSA and
CWISA Programs (May 2013)
4
5
6
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
APR - 4 2013
OFFICE OF THE
ADMINISTRATOR
MEMORANDUM
SUBJECT: Request to Establish Delegation of Authority 2-105 tcxransfer Fund;
Revolving Fund Tribal Set-Aside Progra
FROM: Bob Perciasepe, Acting Administrator
TO: Regional Administrators
I hereby delegate to the U.S. Environmental Protection Agency's regional administrators the authority to
establish Delegation of Authority 2-105 to transfer funds between State Revolving Fund Tribal Set-
Aside programs.
2-105 Transfer Funds Between State Revolving Fund Tribal Set-Aside Programs
(1200 TN 618)
1. AUTHORITY. Pursuant to Public Law 112-74, to approve the transfer of funds between the
accounts provided for tribal set-asides appropriated through the Clean Water State Revolving
Fund and the Drinking Water State Revolving Fund.
2. TO WHOM DELEGATED. Regional administrators.
3. LIMITATIONS. In a fiscal year, a regional administrator may:
a. Transfer a dollar value of up to 33 percent of the funds provided for the
region's Drinking Water Indian Set-Aside account to the region's Clean Water
Indian Set-Aside account.
b. Transfer a dollar amount up to the dollar amount identified in paragraph a of
funds provided for the region's Clean Water Indian Set-Aside account to the
region's Drinking Water Indian Set-Aside account.
c. Starting in FY13, for the first transfer within each region the regional administrator
must obtain concurrence of the Office of Water's assistant administrator or designee
and thereafter must consult with the Office of Water's assistant administrator or designee
exercising this authority.
Internet Address (URL) • http://www.epa.gov
Recycled/Recyclable 'Printed with Vegetable Oil Based Inks on 100% Postconsumer, Process Chlorine Free Recycled Paper
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4. REDELEGATION AUTHORITY.
a. This authority may be redelegated to the division-director level or equivalent
in the regions and no further.
b. This authority may be exercised by any person in the chain of command to
the person to whom it has been redelegated. Any redelegation of this authority
does not divest the official making the redelegation from the power to exercise this
authority.
5. ADDITIONAL REFERENCES.
a. Section 518(c) of the Clean Water Act.
b. Section 1452(i) of the Safe Drinking Water Act.
c. Additional guidance may be issued by the Office of Wastewater
Management or the Office of Groundwater and Drinking Water.
2
3
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1 Attachment 1
2 Guidelines for Implementation of Fund Transfer Authority
3 Between the Drinking Water Infrastructure Grant - Tribal Set Aside and the
4 Clean Water Indian Set - Aside Programs
5 May 2013
6
7 I. Purpose
8
9 This document provides guidance to EPA Regions when implementing the option to transfer funds between
10 the Drinking Water Infrastructure Grant - Tribal Set Aside (DWIG-TSA) and Clean Water Indian Set
11 Aside (CWISA) programs.
12
13 II. Authorization
14
15 State Revolving Fund (SRF) programs currently have permanent authority to transfer funds between the
16 Clean Water SRF and the Drinking Water SRF. Authority to transfer funds between the DWIG-TSA and
17 CWISA programs was provided through EPA's FY12 appropriations, stating:
18
19 Provided further, That for fiscal year 2012 and hereafter, the Administrator may transfer
20 funds provided for tribal set-asides through funds appropriated for the Clean Water State
21 Revolving Funds and for the Drinking Water State Revolving Funds between those
22 accounts in such manner as the Administrator deems appropriate, but not to exceed the
23 transfer limits given to States under section 302(a) of Public Law 104-182.
24
25 The transfer limit identified in section 302(a) is 33 percent of the Drinking Water SRF. For example, had
26 we implemented the transfer provision in FY12, 33 percent of the DWIG-TSA allotment (of $18,358,000)
27 would have been $6,058,140. The process for tribal transfers will begin in FY13; no transfers may be
28 made with FY12 funds. The project eligibility portion of the grant guidelines specific to the program that
29 receives funds from a transfer will apply to the transferred funds. For example, if funds are transferred from
30 the CWISA to the DWIG-TSA, the funds will follow the project eligibility portion of the grant guidelines
31 that apply to the DWIG-TSA.
32
33 III. Permanent Delegation of Authority
34
35 A permanent delegation of authority is in place that delegates the authority to transfer funds between the
36 CWISA and the DWIG-TSA (#2-105). The April 4, 2013 authority memo is attached.
37
38 IV. Transfer Process
39 The following describes the steps to implement a transfer of funds between the two programs.
40
41 1. Regional Allotment Calculation: The Office of Ground Water and Drinking Water (OGWDW) and
42 Office of Wastewater Management (OWM) calculate the allotments and indicate the maximum amount
43 of funding available for transfer within each EPA Region.
44
45 2. Notification of Transfer: Regions will utilize their existing processes to identify water and wastewater
46 infrastructure projects and notify Headquarters of their interest in exercising the transfer option.
47
48 3. Transfer Justification: Regions electing to transfer funds will submit a short narrative transfer
49 justification to HQ that covers key points as described in this guidline supported by a Regional Project
50 List (RPL). For the purposes of these guidelines, the RPL for wastewater projects would consist of
51 information from the IHS Sanitation Deficiency System (SDS) and the RPL for drinking water projects
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1 would consist of SDS information in addition to information identified through regional project
2 solicitations. The proposed projects to be funded through a transfer must be on the IHS SDS list.
3 Section V of this guideline includes a further description of the transfer justification and the data
4 elements required in the RPL.
5
6 4. Transfer Approval Review Criteria: The approval of the fund transfer will be based on a consideration
7 of several factors linked to Agency measures and priorities along with consistency with Agency
8 guidelines for implementing the programs. The following information should be provided for
9 consideration during the review process:
10
11 a. Number of Homes Provided Access to Safe Drinking Water or Basic Sanitation: The number of
12 homes the project provides access to safe drinking water or basic sanitation is based on the Indian
13 Health Service deficiency level data.
14
15 b. Improving Compliance with Safe Drinking Water Act Regulations (if applicable).
16
17 c. Project Readiness: Indication that the following types of documents are complete: project
18 engineering report, planning, design, environmental reviews and archeology.
19
20 d. IHS Sanitation Deficiency Survey Project Priority Number.
21
22 5. Transfer Justification Review/Approval: Starting in FY2013, for the first transfer within each region
23 the regional administrator must obtain concurrence of the Office of Water's assistant administrator or
24 designee. Should an impasse occur the first time that a transfer is requested, the decision to approve or
25 disapprove will be resolved by the Assistant Administrator of Water.
26
27 For transfers subsequent to the first transfer, the Regions are to consult with the Office of Water's
28 assistant administrator through notification of OGWDW and OWM of the intent to transfer and provide
29 the Transfer Justification (Item 3) and the information described in 4a to 4d.
30
31 6. Funds Reprogramming: Upon approval of the transfer request, the approved amount of funds will be
3 2 reprogrammed. The reprogramming will occur at Headquarters before funds are made available to the
33 regions.
34
35 V. Transfer Justification
36
37 In order for OGWDW and OWM to evaluate the reasons for fund transfer, Regions shall provide a narrative
38 justification for the proposed transfer. The justification statement should highlight the public health threat
39 posed by the current deficiencies and net positive public health benefits of funding the project proposed for
40 the transfer. The narrative statement should answer the question: Why are the projects proposed to receive
41 transfer funds a priority for EPA? The narrative should also describe how the proposed infrastructure
42 project will address the current deficiencies along with measures or metrics that clarify why this project is a
43 priority over others. The transfer statement should be supported by the project data provided in the SDS
44 listing for the project along with the RPL. If the project is not in the top 10% of the IHS area SDS, the
45 narrative should also explain why the project does not rank highly on the IHS Area SDS.
46
47 The RPL should include the projects planned for funding that utilize all regional funds (both Drinking
48 Water and Clean Water.) If possible, the RPL should also include the highest ranked project(s) not funded
49 as a result of the funds transfer. The data to be included in the RPL for each project are listed in Table 1.
50
51
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1
2
Table 1: Data Fields for the Regional Project List (RPL)
Project Name*
Project Purpose*
Tribe Name*
Indian Health Service (HS) Area*
IHS Sanitation Deficiency System Data (Project
Number, Project Priority, Project Initial
Deficiency Level and Project Final Deficiency
Level)
Funding from Drinking Water Infrastructure
Grant-Tribal Set- Aside Program
Funding from Clean Water Act Indian Set-
Aside Program
Total Project Cost*
Public Water System Inventory Number*
(Drinking Water project)
National Pollution Discharge Elimination
System Permit (Clean Water Project)
Number of Tribal Homes Served*
Current Violation Type(s) to be address by
project (as applicable)*
Anticipated Construction Start Date*
EPA Program Measures Addressed*
3
4
5
6
7
8
9
10
11
12
13
14
15
16
memo EPA National Tribal Drinking Water
Data recommended for all funded wastewater
* Data required for all funded drinking water projects per
Program Oversight and Accountability (March 23, 2012).
projects.
VI. Annual Timeline
The following table describes the approximate timing to implement a transfer of funds between the two
programs. Approval by OGWDW and OWM of the first transfer within each Region is required. For
subsequent transfers, Regions will still need to provide justification information to notify OGWDW and
OWM of the intent to transfer. OGWDW and OWM reserve the right to object to a transfer proposal if it is
contrary to the program guidelines or the goals of the program.
Table 2: Tribal Water Infrastructure Funding Transfer Process Timeline
Milestone
Regional Allotment
Calculation
Notification of Transfer
Transfer Justification
Transfer Approval
Funds Reprogramming
Schedule
Budget Operating Plan + 30 days
Budget Operating Plan + 60 days
Budget Operating Plan + 90 days
Transfer Justification /Consultation + 30 days
Transfer Approval + 30 days
Responsible Entities
OGWDW and OWM
EPA Regions
EPA Regions
Regional Administrator
or OGWDW/OWM
OWM or OGWDW
17
18
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Appendix I. EPA-Approved Third Party
Organizations Meeting the Requirements of
National Tribal Drinking Water Operator
Certification
6
7
-------
i Appendix I
2 EPA-Approved Third Party Organizations Meeting the Requirements of the
3 National Tribal Drinking Water Operator Certification Program
4
5
6 As of March 2013, there are two third-party entities approved by EPA to issue operator certifications
7 under EPA's Tribal Operator Certification Program.
8
9 • United Southern and Eastern Tribes (USET): www.usetinc.org/Home.aspx
10 • Inter Tribal Council of Arizona: www.itcaonline.com
11
12
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Appendix J. Preliminary Engineering Report
Template
-------
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2 January 16, 2013
3
4 INTERAGENCY MEMORANDUM
5
6 Attached is a document explaining recommended best practice for the development of Preliminary
7 Engineering Reports in support of funding applications for development of drinking water,
8 wastewater, stormwater, and solid waste systems.
9
10 The best practice document was developed cooperatively by:
11 • US Department of Agriculture, Rural Development, Rural Utilities Service, Water and
12 Environmental Programs:
13 • US Environmental Protection Agency (EPA), Office of Water, Office of Ground Water
14 and Drinking Water and Office of Wastewater Management:
15 • US Department of Housing and Urban Development (HUD), Office of Community
16 Planning and Development:
17 • US Department of Health and Human Services, Indian Health Service (IHS):
18 • Small Communities Water Infrastructure Exchange:
19
20 Extensive input from participating state administering agencies was also very important to the
21 development of this document.
22
23 Federal agencies that cooperatively developed this document strongly encourage its use by
24 funding agencies as part of the application process or project development. State administered
25 programs are encouraged to adopt this document but are not required to do so, as it is up to a state
26 administering agency's discretion to adopt it, based on the needs of the state administering agency.
27
28 A Preliminary Engineering Report (Report) is a planning document required by many state and
29 federal funding agencies as part of the process of obtaining financial assistance for development of
30 drinking water, wastewater, solid waste, and stormwater facilities. The attached Report outline
31 details the requirements that funding agencies have adopted when a Report is required.
32
33 In general the Report should include a description of existing facilities and a description of the
34 issues being addressed by the proposed project. It should identify alternatives, present a life cycle
35 cost analysis of technically feasible alternatives and propose a specific course of action. The
36 Report should also include a detailed current cost estimate of the recommended alternative. The
37 attached outline describes these and other sections to be included in the Report.
38
39 Projects utilizing direct federal funding also require an environmental review in accordance with
40 the National Environmental Policy Act (NEPA). The Report should indicate that environmental
41 issues were considered as part of the engineering planning and include environmental information
42 pertinent to engineering planning.
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7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
For state administered funding programs, a determination of whether the outline applies to a given
program or project is made by the state administering agency. When a program or agency adopts
this outline, it may adopt a portion or the entire outline as applicable to the program or project in
question at the discretion of the agency. Some state and federal funding agencies will not require
the Report for every project or may waive portions of the Report that do not apply to their
application process, however a Report thoroughly addressing all of the contents of this outline will
meet the requirements of most agencies that have adopted this outline.
The detailed outline provides information on what to include in a Report. The level of detail
required may also vary according to the complexity of the specific project. Reports should
conform substantially to this detailed outline and otherwise be prepared and presented in a
professional manner. Many funding agencies require that the document be developed by a
Professional Engineer registered in the state or other jurisdiction where the project is to be
constructed unless exempt from this requirement. Please check with applicable funding agencies
to determine if the agencies require supplementary information beyond the scope of this outline.
Any preliminary design information must be written in accordance with the regulatory
requirements of the state or territory where the project will be built.
Information provided in the Report may be used to process requests for funding. Completeness
and accuracy are therefore essential for timely processing of an application. Please contact the
appropriate state or federal funding agencies with any questions about development of the Report
and applications for funding as early in the process as practicable.
Questions about this document should be referred to the applicable state administering agency,
regional office of the applicable federal agency, or to the following federal contacts:
Agency
USDA/RUS
EPA/DWSRF
EPA/CWSRF
HUD
fflS
Contact
Benjamin Shuman, PE
Kirsten Anderer, PE
Matt King
Stephen Rhodeside
Dana Baer, PE
Email Address
ben.shuman(3);wdc.usda.sov
anderer.kirsten(3)epa.sov
kins.matt(3)epa.sov
Stephen, m.rhodeside(3)hud.sov
dana.baer@ihs.gov
Phone
202-720-1784
202-564-3134
202-564-2871
202-708-1322
301-443-1345
28
29
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Sincerely,
JaccftjeKne W. Ponti-LazafulT Assistarit(Ad/iin(sJ/ator
USwA, Rural Development, Rural Utililics Service, Water and Environmental Programs
Sheila Frace, Acting Deputy Director
US EPArOffietTo'nfv'ater, Office of Wastewatcr Management
Andrew Sawyers, Deputy Director
US EPA, Director, Office o/Water, Office of Ground Water and Drinking Water
Ronald Ferguson, PE, RABW, Director
Division of Sanitation Facilities Construction, Indian Health Service
Stanle7Gimont, DTirecufl J
Office of Block CTant Vbimstance,
US Department of Housing and Urban Development
Attachment
2
3
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WORKING GROUP CONTRIBUTORS
Federal Agency Partners
USDA, Rural Development, Rural Utilities Service (Chair)
EPA, Office of Water, Office of Ground Water and Drinking Water
EPA, Office of Water, Office of Ground Water and Drinking Water
EPA, Office of Water, Office of Wastewater Management
EPA, Office of Water, Office of Wastewater Management
EPA, Region 1
EPA, Region 9
HUD, Office of Community Planning and Development
HUD, Office of Community Planning and Development
Indian Health Service
Indian Health Service
USDA, Rural Development, Florida State Office
USDA, Rural Development, Florida State Office
Benjamin Shuman, PE
Kirsten Anderer, PE
CAPT David Harvey, PE
Matt King
Joyce Hudson
Carolyn Hayek
Abimbola Odusoga
Stephen M. Rhodeside
Eva Fontheim
CAPT Dana Baer, PE
LCDRCharissaWilliar, PE
Michael Langston
Steve Morris, PE
2
3
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State Agency and Interagency Partners
Arizona Water Infrastructure Finance Authority
Border Environment Cooperation Commission
Colorado Department of Local Affairs
Colorado Department of Public Health & Environment
Colorado Department of Public Health & Environment
Georgia Office of Community Development
Idaho, Department of Environmental Quality
Indiana Finance Authority
Indiana Finance Authority
Indiana Finance Authority
Kentucky Division of Water
Kentucky Department of Local Government
Louisiana Department of Environmental Quality
Maine Department of Health and Human Services
Minnesota Pollution Control Agency
Minnesota Pollution Control Agency
Missouri Department of Natural Resources
Montana Department of Commerce
North Carolina Department of Commerce
North Carolina Rural Center
North Carolina Department of Commerce
Rhode Island Department of Health
Rhode Island Department of Health
Dean Moulis, PE
Joel Mora, PE
Barry Cress
Michael Beck
Bret Icenogle, PE
Steed Robinson
Tim Wendland
Emma Kottlowski
Shelley Love
Amanda Rickard, PE
Shafiq Amawi
Jennifer Peters
Jonathan McFarland, PE
Norm Lamie, PE
Amy Douville
Corey Mathisen, PE
Cynthia Smith
Kate Miller, PE
Olivia Collier
Keith Krzywicki, PE
Vickie Miller, CPM
Gary Chobanian, PE
Geoffrey Marchant
1
2
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1
2 ABBREVIATIONS
3
4 NEPA - National Environmental Policy Act
5 NPV - Net Present Value
6 O&M - Operations and Maintenance
7 OMB - Office of Management and Budget
8 Report - Preliminary Engineering Report
9 SPPW - Single Payment Present Worth
10 USPW - Uniform Series Present Worth
11
12
13
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1
2
3 GENERAL OUTLINE OF A PRELIMINARY ENGINEERING REPORT
4
5 1) PROJECT PLANNING
6 a) Location
7 b) Environmental Resources Present
8 c) Population Trends
9 d) Community Engagement
10
11 2) EXISTING FACILITIES
12 a) Location Map
13 b) History
14 c) Condition of Existing Facilities
15 d) Financial Status of any Existing Facilities
16 e) Water/Energy/Waste Audits
17
18 3) NEED FOR PROJECT
19 a) Health, Sanitation, and Security
20 b) Aging Infrastructure
21 c) Reasonable Growth
22
23 4) ALTERNATIVES CONSIDERED
24 a) Description
25 b) Design Criteria
26 c) Map
27 d) Environmental Impacts
28 e) Land Requirements
29 f) Potential Construction Problems
30 g) Sustainability Considerations
31 i) Water and Energy Efficiency
32 ii) Green Infrastructure
33 iii) Other
34 h) Cost Estimates
35
36 5) SELECTION OF AN ALTERNATIVE
37 a) Life Cycle Cost Analysis
38 b) Non-Monetary Factors
39
40 6) PROPOSED PROJECT (RECOMMENDED ALTERNATIVE)
41 a) Preliminary Project Design
42 b) Project Schedule
43 c) Permit Requirements
44 d) Sustainability Considerations
45 i) Water and Energy Efficiency
46 ii) Green Infrastructure
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1 iii) Other
2 e) Total Project Cost Estimate (Engineer's Opinion of Probable Cost)
3 f) Annual Operating Budget
4 i) Income
5 ii) Annual O&M Costs
6 iii) Debt Repayments
7 iv) Reserves
8
9 7) CONCLUSIONS AND RECOMMENDATIONS
10
11
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1
2 DETAILED OUTLINE OF A PRELIMINARY ENGINEERING REPORT
3
4 1) PROJECT PLANNING
5
6 Describe the area under consideration. Service may be provided by a combination of
7 central, cluster, and/or centrally managed individual facilities. The description should
8 include information on the following:
9
10 a) Location. Provide scale maps and photographs of the project planning area and
11 any existing service areas. Include legal and natural boundaries and a
12 topographical map of the service area.
13
14 b) Environmental Resources Present. Provide maps, photographs, and/or a narrative
15 description of environmental resources present in the project planning area that
16 affect design of the project. Environmental review information that has already
17 been developed to meet requirements of NEPA or a state equivalent review process
18 can be used here.
19
20 c) Population Trends. Provide U.S. Census or other population data (including
21 references) for the service area for at least the past two decades if available.
22 Population projections for the project planning area and concentrated growth areas
23 should be provided for the project design period. Base projections on historical
24 records with justification from recognized sources.
25
26 d) Community Engagement: Describe the utility's approach used (or proposed for
27 use) to engage the community in the project planning process. The project
28 planning process should help the community develop an understanding of the need
29 for the project, the utility operational service levels required, funding and revenue
30 strategies to meet these requirements, along with other considerations.
31
32 2) EXISTING FACILITIES
33
34 Describe each part (e.g. processing unit) of the existing facility and include the following
35 information:
36
37 a) Location Map. Provide a map and a schematic process layout of all existing
38 facilities. Identify facilities that are no longer in use or abandoned. Include
39 photographs of existing facilities.
40
41 b) History. Indicate when major system components were constructed, renovated,
42 expanded, or removed from service. Discuss any component failures and the
43 cause for the failure. Provide a history of any applicable violations of regulatory
44 requirements.
45
46 c) Condition of Existing Facilities. Describe present condition; suitability for
47 continued use; adequacy of current facilities; and their conveyance, treatment,
48 storage, and disposal capabilities. Describe the existing capacity of each
49 component. Describe and reference compliance with applicable federal, state, and
50 local laws. Include a brief analysis of overall current energy consumption.
51 Reference an asset management plan if applicable.
52
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1 d) Financial Status of any Existing Facilities. (Note: Some agencies require the
2 owner to submit the most recent audit or financial statement as part of the
3 application package.) Provide information regarding current rate schedules,
4 annual O&M cost (with a breakout of current energy costs), other capital
5 improvement programs, and tabulation of users by monthly usage categories for the
6 most recent typical fiscal year. Give status of existing debts and required reserve
7 accounts.
8
9 e) Water/Energy /Waste Audits. If applicable to the project, discuss any water,
10 energy, and/or waste audits which have been conducted and the main outcomes.
11
12 3) NEED FOR PROJECT
13
14 Describe the needs in the following order of priority:
15
16 a) Health, Sanitation, and Security. Describe concerns and include relevant
17 regulations and correspondence from/to federal and state regulatory agencies.
18 Include copies of such correspondence as an attachment to the Report.
19
20 b) Aging Infrastructure. Describe the concerns and indicate those with the greatest
21 impact. Describe water loss, inflow and infiltration, treatment or storage needs,
22 management adequacy, inefficient designs, and other problems. Describe any
23 safety concerns.
24
25 c) Reasonable Growth. Describe the reasonable growth capacity that is necessary to
26 meet needs during the planning period. Facilities proposed to be constructed to
27 meet future growth needs should generally be supported by additional revenues.
28 Consideration should be given to designing for phased capacity increases.
29 Provide number of new customers committed to this proj ect.
30
31 4) ALTERNATIVES CONSIDERED
32
33 This section should contain a description of the alternatives that were considered in
34 planning a solution to meet the identified needs. Documentation of alternatives
35 considered is often a Report weakness. Alternative approaches to ownership and
36 management, system design (including resource efficient or green alternatives), and
37 sharing of services, including various forms of partnerships, should be considered. In
38 addition, the following alternatives should be considered, if practicable: building new
39 centralized facilities, optimizing the current facilities (no construction), developing
40 centrally managed decentralized systems, including small cluster or individual systems,
41 and developing an optimum combination of centralized and decentralized systems.
42 Alternatives should be consistent with those considered in the NEPA, or state equivalent,
43 environmental review. Technically infeasible alternatives that were considered should be
44 mentioned briefly along with an explanation of why they are infeasible, but do not require
45 full analysis. For each technically feasible alternative, the description should include the
46 following information:
47
48 a) Description. Describe the facilities associated with every technically feasible
49 alternative. Describe source, conveyance, treatment, storage and distribution
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1 facilities for each alternative. A feasible system may include a combination of
2 centralized and decentralized (on-site or cluster) facilities.
3
4 b) Design Criteria. State the design parameters used for evaluation purposes. These
5 parameters should comply with federal, state, and agency design policies and
6 regulatory requirements.
7
8 c) Map. Provide a schematic layout map to scale and a process diagram if applicable.
9 If applicable, include future expansion of the facility.
10
11 d) Environmental Impacts. Provide information about how the specific alternative
12 may impact the environment. Describe only those unique direct and indirect
13 impacts on floodplains, wetlands, other important land resources, endangered
14 species, historical and archaeological properties, etc., as they relate to each specific
15 alternative evaluated. Include generation and management of residuals and
16 wastes.
17
18 e) Land Requirements. Identify sites and easements required. Further specify
19 whether these properties are currently owned, to be acquired, leased, or have access
20 agreements.
21
22 f) Potential Construction Problems. Discuss concerns such as subsurface rock, high
23 water table, limited access, existing resource or site impairment, or other conditions
24 which may affect cost of construction or operation of facility.
25
26 g) Sustainability Considerations. Sustainable utility management practices include
27 environmental, social, and economic benefits that aid in creating a resilient utility.
28
29 i) Water and Energy Efficiency. Discuss water reuse, water efficiency, water
30 conservation, energy efficient design (i.e. reduction in electrical demand),
31 and/or renewable generation of energy, and/or minimization of carbon
32 footprint, if applicable to the alternative. Alternatively, discuss the water and
33 energy usage for this option as compared to other alternatives.
34
35 ii) Green Infrastructure. Discuss aspects of project that preserve or mimic natural
36 processes to manage stormwater, if applicable to the alternative. Address
37 management of runoff volume and peak flows through infiltration,
38 evapotranspiration, and/or harvest and use, if applicable.
39
40 iii) Other. Discuss any other aspects of Sustainability (such as resiliency or
41 operational simplicity) that are incorporated into the alternative, if applicable.
42
43 h) Cost Estimates. Provide cost estimates for each alternative, including a
44 breakdown of the following costs associated with the project: construction,
45 non-construction, and annual O&M costs. A construction contingency should be
46 included as a non-construction cost. Cost estimates should be included with the
47 descriptions of each technically feasible alternative. O&M costs should include a
48 rough breakdown by O&M category (see example below) and not just a value for
49 each alternative. Information from other sources, such as the recipient's
50 accountant or other known technical service providers, can be incorporated to assist
51 in the development of this section. The cost derived will be used in the life cycle
52 cost analysis described in Section 5 a.
53
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2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Example O&M Cost Estimate
Personnel (i.e. Salary, Benefits, Payroll Tax,
Insurance, Training)
Administrative Costs (e.g. office supplies, printing,
etc.)
Water Purchase or Waste Treatment Costs
Insurance
Energy Cost (Fuel and/or Electrical)
Process Chemical
Monitoring & Testing
Short Lived Asset Maintenance/Replacement*
Professional Services
Residuals Disposal
Miscellaneous
Total
* See Appendix A for example list
5) SELECTION OF AN ALTERNATIVE
Selection of an alternative is the process by which data from the previous section,
"Alternatives Considered" is analyzed in a systematic manner to identify a recommended
alternative. The analysis should include consideration of both life cycle costs and
non-monetary factors (i.e. triple bottom line analysis: financial, social, and environmental).
If water reuse or conservation, energy efficient design, and/or renewable generation of
energy components are included in the proposal provide an explanation of their cost
effectiveness in this section.
a) Life Cycle Cost Analysis. A life cycle present worth cost analysis (an engineering
economics technique to evaluate present and future costs for comparison of
alternatives) should be completed to compare the technically feasible alternatives.
Do not leave out alternatives because of anticipated costs; let the life cycle cost
analysis show whether an alternative may have an acceptable cost. This analysis
should meet the following requirements and should be repeated for each technically
feasible alternative. Several analyses may be required if the project has different
aspects, such as one analysis for different types of collection systems and another
for different types of treatment.
1. The analysis should convert all costs to present day dollars;
2. The planning period to be used is recommended to be 20 years, but may be any
period determined reasonable by the engineer and concurred on by the state or
federal agency;
3. The discount rate to be used should be the "real" discount rate taken from
Appendix C of OMB circular A-94 and found at
(www.whitehouse.gov/omb/circulars/a094/a94 appx-c.html);
4. The total capital cost (construction plus non-construction costs) should be
included;
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1 5. Annual O&M costs should be converted to present day dollars using a uniform
2 series present worth (USPW) calculation;
3 6. The salvage value of the constructed project should be estimated using the
4 anticipated life expectancy of the constructed items using straight line
5 depreciation calculated at the end of the planning period and converted to present
6 day dollars;
7 7. The present worth of the salvage value should be subtracted from the present
8 worth costs;
9 8. The net present value (NPV) is then calculated for each technically feasible
10 alternative as the sum of the capital cost (C) plus the present worth of the uniform
11 series of annual O&M (USPW (O&M)) costs minus the single payment present
12 worth of the salvage value (SPPW(S)):
13
14 NPV = C + USPW (O&M) - SPPW (S)
15
16 9. A table showing the capital cost, annual O&M cost, salvage value, present worth
17 of each of these values, and the NPV should be developed for state or federal
18 agency review. All factors (major and minor components), discount rates, and
19 planning periods used should be shown within the table.
20 10. Short lived asset costs (See Appendix A for examples) should also be included in
21 the life cycle cost analysis if determined appropriate by the consulting engineer or
22 agency. Life cycles of short lived assets should be tailored to the facilities being
23 constructed and be based on generally accepted design life. Different features in
24 the system may have varied life cycles.
25
26 b) Non-Monetary Factors. Non-monetary factors, including social and
27 environmental aspects (e.g. sustainability considerations, operator training
28 requirements, permit issues, community objections, reduction of greenhouse gas
29 emissions, wetland relocation) should also be considered in determining which
30 alternative is recommended and may be factored into the calculations.
31
32 6) PROPOSED PROJECT (RECOMMENDED ALTERNATIVE)
33
34 The engineer should include a recommendation for which alternative(s) should be
35 implemented. This section should contain a fully developed description of the proposed
36 project based on the preliminary description under the evaluation of alternatives. Include
37 a schematic for any treatment processes, a layout of the system, and a location map of the
38 proposed facilities. At least the following information should be included as applicable to
39 the specific project:
40
41 a) Preliminary Project Design.
42
43 i) Drinking Water:
44
45 Water Supply. Include requirements for quality and quantity. Describe
46 recommended source, including site and allocation allowed.
47
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1 Treatment. Describe process in detail (including whether adding,
2 replacing, or rehabilitating a process) and identify location of plant and site
3 of any process discharges. Identify capacity of treatment plant (i.e.
4 Maximum Daily Demand).
5
6 Storage. Identify size, type and location.
7
8 Pumping Stations. Identify size, type, location and any special power
9 requirements. For rehabilitation projects, include description of
10 components upgraded.
11
12 Distribution Layout. Identify general location of new pipe, replacement,
13 or rehabilitation: lengths, sizes and key components.
14
15 ii) Wastewater/Reuse:
16
17 Collection System/Reclaimed Water System Layout. Identify general
18 location of new pipe, replacement or rehabilitation: lengths, sizes, and key
19 components.
20
21 Pumping Stations. Identify size, type, site location, and any special power
22 requirements. For rehabilitation projects, include description of
23 components upgraded.
24
25 Storage. Identify size, type, location and frequency of operation.
26
27 Treatment. Describe process in detail (including whether adding,
28 replacing, or rehabilitating a process) and identify location of any treatment
29 units and site of any discharges (end use for reclaimed water). Identify
30 capacity of treatment plant (i.e. Average Daily Flow).
31
32 iii) Solid Waste:
33
34 Collection. Describe process in detail and identify quantities of material
35 (in both volume and weight), length of transport, location and type of
36 transfer facilities, and any special handling requirements.
37
38 Storage. If any, describe capacity, type, and site location.
39
40 Processing. If any, describe capacity, type, and site location.
41
42 Disposal. Describe process in detail and identify permit requirements,
43 quantities of material, recycling processes, location of plant, and site of any
44 process discharges.
45
46 iv) Stormwater:
47
48 Collection System Layout. Identify general location of new pipe,
49 replacement or rehabilitation: lengths, sizes, and key components.
50
51 Pumping Stations. Identify size, type, location, and any special power
52 requirements.
53
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1 Treatment. Describe treatment process in detail. Identify location of
2 treatment facilities and process discharges. Capacity of treatment process
3 should also be addressed.
4
5 Storage. Identify size, type, location and frequency of operation.
6
7 Disposal. Describe type of disposal facilities and location.
8
9 Green Infrastructure. Provide the following information for green
10 infrastructure alternatives:
11
12 • Control Measures Selected. Identify types of control measures
13 selected (e.g., vegetated areas, planter boxes, permeable pavement,
14 rainwater cisterns).
15 • Layout: Identify placement of green infrastructure control measures,
16 flow paths, and drainage area for each control measure.
17 • Sizing: Identify surface area and water storage volume for each green
18 infrastructure control measure. Where applicable, soil infiltration rate,
19 evapotranspiration rate, and use rate (for rainwater harvesting) should
20 also be addressed.
21 • Overflow: Describe overflow structures and locations for conveyance
22 of larger precipitation events.
23
24 b) Project Schedule. Identify proposed dates for submittal and anticipated approval
25 of all required documents, land and easement acquisition, permit applications,
26 advertisement for bids, loan closing, contract award, initiation of construction,
27 substantial completion, final completion, and initiation of operation.
28
29 c) Permit Requirements. Identify any construction, discharge and capacity permits
30 that will/may be required as a result of the project.
31
32 d) Sustainability Considerations (if applicable).
33
34 i) Water and Energy Efficiency. Describe aspects of the proposed project
35 addressing water reuse, water efficiency, and water conservation, energy
36 efficient design, and/or renewable generation of energy, if incorporated into the
37 selected alternative.
38
39 ii) Green Infrastructure. Describe aspects of project that preserve or mimic
40 natural processes to manage stormwater, if applicable to the selected
41 alternative. Address management of runoff volume and peak flows through
42 infiltration, evapotranspiration, and/or harvest and use, if applicable.
43
44 iii) Other. Describe other aspects of Sustainability (such as resiliency or
45 operational simplicity) that are incorporated into the selected alternative, if
46 incorporated into the selected alternative.
47
48 e) Total Project Cost Estimate (Engineer's Opinion of Probable Cost). Provide an
49 itemized estimate of the project cost based on the stated period of construction.
50 Include construction, land and right-of-ways, legal, engineering, construction
51 program management, funds administration, interest, equipment, construction
52 contingency, refinancing, and other costs associated with the proposed project.
53 The construction subtotal should be separated out from the non-construction costs.
54 The non-construction subtotal should be included and added to the construction
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1 subtotal to establish the total project cost. An appropriate construction
2 contingency should be added as part of the non-construction subtotal. For projects
3 containing both water and waste disposal systems, provide a separate cost estimate
4 for each system as well as a grand total. If applicable, the cost estimate should be
5 itemized to reflect cost sharing including apportionment between funding sources.
6 The engineer may rely on the owner for estimates of cost for items other than
7 construction, equipment, and engineering.
8
9 f) Annual Operating Budget. Provide itemized annual operating budget information.
10 The owner has primary responsibility for the annual operating budget, however,
11 there are other parties that may provide technical assistance. This information will
12 be used to evaluate the financial capacity of the system. The engineer will
13 incorporate information from the owner's accountant and other known technical
14 service providers.
15
16 i) Income. Provide information about all sources of income for the system
17 including a proposed rate schedule. Project income realistically for existing
18 and proposed new users separately, based on existing user billings, water
19 treatment contracts, and other sources of income. In the absence of historic
20 data or other reliable information, for budget purposes, base water use on 100
21 gallons per capita per day. Water use per residential connection may then be
22 calculated based on the most recent U.S. Census, American Community
23 Survey, or other data for the state or county of the average household size.
24 When large agricultural or commercial users are projected, the Report should
25 identify those users and include facts to substantiate such projections and
26 evaluate the impact of such users on the economic viability of the project.
27
28 ii) Annual O&M Costs. Provide an itemized list by expense category and project
29 costs realistically. Provide projected costs for operating the system as
30 improved. In the absence of other reliable data, base on actual costs of other
31 existing facilities of similar size and complexity. Include facts in the Report to
32 substantiate O&M cost estimates. Include personnel costs, administrative
33 costs, water purchase or treatment costs, accounting and auditing fees, legal
34 fees, interest, utilities, energy costs, insurance, annual repairs and maintenance,
35 monitoring and testing, supplies, chemicals, residuals disposal, office supplies,
36 printing, professional services, and miscellaneous as applicable. Any
37 income from renewable energy generation which is sold back to the electric
38 utility should also be included, if applicable. If applicable, note the operator
39 grade needed.
40
41 iii) Debt Repayments. Describe existing and proposed financing with the
42 estimated amount of annual debt repayments from all sources. All estimates of
43 funding should be based on loans, not grants.
44
45 iv) Reserves. Describe the existing and proposed loan obligation reserve
46 requirements for the following:
47
48 Debt Service Reserve - For specific debt service reserve requirements
49 consult with individual funding sources. If General Obligation bonds are
50 proposed to be used as loan security, this section may be omitted, but this
51 should be clearly stated if it is the case.
52
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1 Short-Lived Asset Reserve - A table of short lived assets should be
2 included for the system (See Appendix A for examples). The table should
3 include the asset, the expected year of replacement, and the anticipated cost
4 of each. Prepare a recommended annual reserve deposit to fund
5 replacement of short-lived assets, such as pumps, paint, and small
6 equipment. Short-lived assets include those items not covered under
7 O&M, however, this does not include facilities such as a water tank or
8 treatment facility replacement that are usually funded with long-term
9 capital financing.
10
11 7. CONCLUSIONS AND RECOMMENDATIONS
12
13 Provide any additional findings and recommendations that should be considered in
14 development of the project. This may include recommendations for special studies,
15 highlighting of the need for special coordination, a recommended plan of action to expedite
16 project development, and any other necessary considerations.
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1
2
Appendix A: Example List of Short-Lived Asset Infrastructure
Estimated Repair, Rehab, Replacement Expenses by Item within up to 20 Years from Installation)
Drinking Water Utilities
Wastewater Utilities
Source Related
Pumps
Pump Controls
Pump Motors
Telemetry
Intake/Well screens
Water Level Sensors
Pressure Transducers
Treatment Related
Chemical feed pumps
Altitude Valves
Valve Actuators
Field & Process Instrumentation Equipment
Granular filter media
Air compressors & control units
Pumps
Pump Motors
Pump Controls
Water Level Sensors
Pressure Transducers
Sludge Collection & Dewatering
UV Lamps
Membranes
Back-up power generators
Chemical Leak Detection Equipment
Flow meters
SCADA Systems
Distribution System Related
Residential and Small Commercial Meters
Meter boxes
Hydrants & Blow offs
Pressure reducing valves
Cross connection control devices
Altitude valves
Alarms & Telemetry
Vaults, lids, and access hatches
Security devices and fencing
Storage reservoir painting/patching
Treatment Related
Pump
Pump Controls
Pump Motors
Chemical feed pumps
Membrane Filters Fibers
Field & Process Instrumentation Equipment
UV lamps
Centrifuges
Aeration blowers
Aeration diffusers and nozzles
Trickling filters, RBCs, etc.
Belt presses & driers
Sludge Collecting and Dewatering Equipment
Level Sensors
Pressure Transducers
Pump Controls
Back-up power generator
Chemical Leak Detection Equipment
Flow meters
SCADA Systems
Collection System Related
Pump
Pump Controls
Pump Motors
Trash racks/bar screens
Sewer line rodding equipment
Air compressors
Vaults, lids, and access hatches
Security devices and fencing
Alarms & Telemetry
Chemical Leak Detection Equipment
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Appendix K. Example Certification Form for
a Tribe Documenting Utility Account
Information
4
5
6
K-l
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i Appendix K
2 Example Certification Utility Financial Account
3
4 The following is an example of a form that a Region might develop to certify how a water system
5 benefiting from DWIG-TSA Program funding manages the utility.
6
7
8
9
Public Water System
Name:
Public Water Supply
Identification Number:
System managed by a: [J Trjba| government
L_l Non-tribal utility serving a tribal community
10
11
12
13 I certify that the accounting system used to manage the financial operating plan for the public water
14 system benefiting from the Drinking Water Infrastructure Tribal Set-Aside funds has the capability to
15 record, track, and report on the program specific financial information independently from other
16 programs.
17
18
19
PRINT NAME
TITLE
SIGNATURE DATE
20
21
22
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K-2
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Appendix L. 2012 Median Metropolitan &
Non-metropolitan Household Incomes by
State (HUD)
L-l
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U. S. Department of Housing and Urban Development
NOTICE
Special Attention of: l\\J I IV-rL. PDR-2012-01
Regional Directors, Field Office Directors,
Economists, Public & Indian Housing Issued: December 1, 2011
Division Directors, Multifamily Hub Directors, Expires: Effective until superseded
Multifamily Program Center Directors
Cross References:
Subject: Estimated Median Family Incomes for Fiscal Year 2012
This memorandum transmits median family income (MFI) and income distribution
estimates for Fiscal Year (FY) 2012. They are calculated for each metropolitan and
nonmetropolitan area using the Fair Market Rent (FMR) area definitions applied in the
Section 8 Housing Choice Voucher Program. The estimated MFI for the United States for
FY 2012 is $65,000.
There were no changes to the area definitions for the FY 2012 MFIs. HUD continues to use
the 2005-2009, 5-year American Community Survey (ACS) income data as the basis of FY 2012
Income Limits for all areas of geography, except for the US Virgin Island and the Pacific Islands.
This is the same data that HUD used in calculating the FY 2011 MFIs; more current ACS data has
not been released. An additional year of the Consumer Price Index update factor and the use of FY
2012 FMRs for high housing cost adjustments will result in the changes between the FY 2011 and
the FY 2012 income limits. The factor HUD uses to trend the 2009 estimates to the midpoint of FY
2012 is unchanged at 3 percent per year1.
In areas where there is also a valid 2009 1 year ACS estimate of median family income, a
statistical comparison is made between the 5-year median family income and the 1-year median
family income available from the ACS. If the 1 year data are statistically different then the 5-year
data, HUD calculates an update factor between the 5-year data and the 1-year data and applies this to
the 5 year data.
An explanation of the methodology used to develop FY 2012 MFIs and related documents are
attached. Attachment 1 provides an explanation of the estimation methodology used. Attachment 2
provides state-level MFI estimates. Since these state-level MFI estimates are no longer an update of
the 2000 Decennial Census (which provided 1999 income estimates) there are no longer columns
1 This average annual trend factor is unchanged from last year and relies on a comparison of the nation ACS income in
2000 compared with the income for 2008. HUD is currently evaluating alternative trend factors and may update or
change this trend factor for next year, most likely using a methodology similar to the method for calculating the trend
factor in the FY 2013 Fair Market Rent calculations.
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showing comparisons between current and 1999 state medians. The Income Limits Briefing Material
and Area Definitions reports are provided with this notice. Data disk files are also provided on
Section 8 Income Limits and income limits for the Section 221(d)(3) Below Market Interest Rate
(BMIR) rental program, the Section 235 program, and the Section 236 program, that are not part of
this transmittal notice, for you information.
Please note that the use of the HUD MFI estimates is subject to individual program
guidelines covering definitions of income and family, family size, effective dates, and other
factors. If you have any questions concerning these matters, please refer them to our website
at http://wwvv\huduser.org/pQrtd/datasets/il.html.
HUD MFI estimates are also available at the Department's Internet site, which
provides a menu from which you may select the year and type of data of interest
(http://www.huduser.org/portal/datasets/il.html).
/*—-"
W. Boltic, Ph.D.
Assistant Secretary for Policy
Development and Research
Attachments
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ATTACHMENT 1
HUD METHODOLOGY FOR ESTIMATING FY 2012
MEDIAN FAMILY INCOMES
HUD updated its methodology to produce Median Family Income (MFI) estimates to take
advantage of new nationally comprehensive data available from the Census Bureau's American
Community Survey (ACS), beginning with the FY 2011 MFIs. In December 2010, the first set of 5-
year ACS data was published. These 5-year aggregations, covering surveys administered in 2005
through 2009, provided income data for most areas of geography2. Because of the increase in the
geographic coverage of the 5-year data, HUD's methodology for calculating FY 2011 MFI no longer
was based on 2000 Decennial Census data, but rather, the 2005 - 2009 ACS data. The next 5-year
series of income data, from 2006 to 2010 was not released in time to incorporate it into the FY 2012
MFIs, which HUD is publishing at this time in response to public comment supporting a fixed, early
publication date. HUD is using the same ACS data for FY 2012 MFIs as it used for FY 2011 MFIs.
HUD uses additional Consumer Price Index (CPI) data to update the ACS data from mid-2009 to the
end of 2010. The factor used to trend the 2010 estimates to the midpoint of FY 2012 MFIs is
unchanged at 3 percent per year3. Separate HUD MFI estimates are calculated for all Metropolitan
Statistical Areas (MSAs), HUD Metro FMR Areas, and nonmetropolitan counties.
The ACS, conducted annually, was designed to produce estimates similar to the long-form
sample survey previously conducted with the Decennial Census upon compilation of 5 years of data.
Each year since full implementation of the survey in 2005, the Census Bureau collected an ACS
sample sufficient to provide estimates of most survey items for areas with populations of 65,000 or
more. After the 2007 ACS, the Census Bureau released data aggregated from the ACS samples
collected over the three years, 2005, 2006, and 2007. This allowed the Census Bureau to release
estimates for most items for areas with populations of 20,000 or more. FY 2010 MFIs reflected ACS
survey data aggregated over 2006, 2007 and 2008. After the 2009 ACS sample, the Census Bureau
had sufficient data to release aggregated five-year estimates. Five-year estimates are designed to
provide estimates for geographic areas of all sizes relevant to MFI and income limit production.
As mentioned above, HUD used the 2005-2009 5-year ACS data in the calculation process
for both the FY 2011 MFIs and the FY 2012 MFIs. Specifically, for each metropolitan area, subarea
of a metropolitan area, and non-metropolitan county, 5-year ACS data is used as the new basis for
calculating MFI estimates. HUD is incorporating the 5-year data in this way to eliminate the reliance
on the data collected during the 2000 Decennial Census as it is more than a decade old. In areas
2 The ACS covers the 50 United States, and a separate survey called the Puerto Rico Community Survey (PRCS) covers
Puerto Rico. The US Virgin Islands and the Pacific Islands (American Samoa, Commonwealth of the Northern Mariana
Islands, and Guam) are not covered by the ACS or PRCS. Detailed demographic and socio-economic information
covering these island areas have been collected by a special Long Form survey conducted in conjunction with the 2010
Decennial Census. These data are scheduled to be available in the Fall of 2012. For FY 2012 median family income
calculations, HUD continues to use the change in the national median income between the 2000 Decennial Census and
the latest ACS data as the update factor for the US Virgin Islands and the Pacific Islands. Since there was no new ACS
data used for the calculation of FY 2012 median incomes, the national median from FY 2011 was updated with CPI
through the end of 2010.
3 This average annual trend factor is unchanged from last year and relies on a comparison of the nation ACS income in
2000 compared with the income for 2008. HUD is currently evaluating alternative trend factors and may update or
change this trend factor for next year, most likely using a methodology similar to the method for calculating the trend
factor in the FY 2013 Fair Market Rent calculations.
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where there is a valid 1-year ACS survey median family income result, HUD endeavors to use this
data as well to take advantage of more recent survey information. By using both the 5-year data and
the 1-year data, where available, HUD is establishing a new basis for MFI estimates while also
capturing the most recent information available.
HUD changed the way it uses ACS margins of error for the FY 2011 MFI estimates. HUD
set the base MFI equal to the 2005-2009 5-year ACS survey value. For areas with a valid 2009 1-
year survey result, HUD used the margin of error for the 1-year data in conjunction with the margin
of error for the 5-year survey result to determine if the two survey results are statistically different. If
they are statistically different, HUD uses the 1-year survey result. In the few cases where the margin
of error exceeds the survey estimate, so that the confidence interval around the estimate includes
zero, HUD assigns the state nonmetropolitan median4. This evaluation is unchanged in the use of the
2005-2009 ACS data for the FY 2012 MFI estimates.
MFI estimates are based on the most currently available data, but the delay in collecting and
reporting the survey data mean that 2009 ACS income data is used for FY 2012 estimates that have
an as-of date of April 1, 2012. The CPI is used to bring the income data from 2009 to the end of
2010. A trend factor based on historic patterns of nominal income growth is used to inflate the
estimate from the end of 2010 to April, 2012. As in previous years, HUD is maintaining the use of a
3 percent trend factor.
Median family5 incomes start with the development of estimates of MFI for the metropolitan
areas and non-metropolitan FMR/income limit areas (including U.S. territories). Attachment 2
provides a detailed explanation of how median family income estimates are calculated. The major
steps are as follows:
HUD uses 2005-2009 5-year ACS estimates of median family income calculated for the areas
used for FMRs and income limits as the new basis for FY 2012. In areas where there is also a
valid 2009 1-year ACS estimate of median family income, a statistical comparison is made
between the 5-year median family income and the 1-year median family income available
from the ACS. If the 1-year data are statistically different from the 5-year data, HUD
calculates an update factor between the 5-year data and the 1-year data and applies this to the
5-year data. Once the appropriate 2009 ACS data has been selected, the data are set as of
December 2010 using the December 2010 national CPI value divided by the annual 2009
National CPI value.
All places:
All estimates (using either 5-year data or 5-year data augmented with 1-year data) are updated
with CPI through the end of 2010 then trended from December, 2010 to April, 2012 (IVi year)
with a trending factor of 3 percent per year.
4 For the FY 2012 MFI estimates, HUD uses the state nonmetropolitan median for Kalawao County, HI and Kenedy
County, TX.
5 Family refers to the Census definition of a family, which is a householder with one or more other persons living in the same
household who are related to the householder by birth, marriage, or adoption. The definition of family excludes one-person
households and multi-person households of unrelated individuals.
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For the non-Puerto Rico Insular Areas of the United States,6 which currently lack ACS coverage,
national ACS income changes are used as surrogates to update 2000 Decennial Census data.
HUD anticipates eventually receiving new income data for these areas from the 2010 Decennial
Census, which included a "long form" collection of detailed socio-economic information in these
areas only.
6 The areas without ACS coverage are the U.S. Virgin Islands, Guam, American Samoa, and the Northern Marianas
Islands. Puerto Rico is covered by the ACS-equivalent Puerto Rico Community Survey.
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ATTACHMENT 2
FY 2012 Median Family Incomes for States,
Metropolitan and Nonmetropolitan Portions of States
o Irtl Hj
Alabama
Alaska
Arizona
Arkansas
Call f ornia
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
TOTAL
55400
80400
61600
50900
71400
74100
89200
73300
71400
57000
59800
79400
55200
72100
60100
64800
65200
53000
55700
61000
89300
86100
60400
73900
48700
60700
58000
64400
64800
80500
89400
54500
71400
57800
67600
61100
55800
63900
66600
75700
55800
60400
54700
60300
67500
67600
76900
72900
50700
66700
67700
— ri^u^^ —
METRO
58800
84500
62800
56600
71800
76700
90000
77400
71400
57800
63700
82700
58400
75300
62400
70300
72100
61800
59600
66300
90600
86100
62900
80200
57700
66600
60900
71500
64700
87500
89400
58900
73300
61600
72900
63200
59900
67700
69300
75700
58400
65700
59000
62400
69000
76700
82800
75600
55400
70200
66600
NONMETRO
47600
71100
46900
43900
57900
61000
83200
62600
52400*
45900
45200
73400
50500
57400
53600
59300
54400
43600
47000
54900
72600
89500
52100
60000
42200
47800
56600
57000
66000
70300
52400*
47700
56900
50200
63800
53600
49500
53400
55600
52400*
48300
56400
46000
49300
57500
63800
52600
57400
45400
59900
68300
US non-metropolitan median
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Appendix M. IHS 2012 Allowable Cost per
Unit
3
4
5
M-l
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1
2
3
4
5
6
Appendix M
IMS 2012 Allowable Cost per Unit
State
50% of SDS
2012 Total Allowable Unit Cost
Alabama
Alaska
Alaska (1)
Alaska (2)
Arizona
California
Colorado
Connecticut
Florida
Idaho
Iowa
Kansas
Louisiana
Maine
Massachusetts
Michigan
Minnesota
Mississippi
Montana
Nebraska
Nevada
New Mexico
New York
North Carolina
North Dakota
Oklahoma
Oregon
Rhode Island
South Carolina
South Dakota
Texas
Utah
Washington
Wisconsin
Wyoming
$36,750
$84,000
$64,750
$75,250
$42,250
$50,500
$40,750
$49,500
$39,500
$41,750
$42,250
$40,000
$35,750
$42,750
$59,500
$42,750
$48,250
$36,500
$40,750
$40,750
$46,750
$40,000
$47,500
$37,500
$41,250
$36,500
$45,750
$49,000
$36,500
$39,500
$36,000
$40,500
$48,250
$45,250
$39,250
The IMS developed total allowable unit costs for each state to determine project feasibility, except for
Alaska which has three total allowable unit costs.
M-2
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