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Office of Water (4606M)
EPA 816-F-22-002
April 2022


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Water System Partnerships - Funding Resources

Contents

Overview	1

Purpose	1

Introduction to Water System Partnerships	1

Types of Water System Partnerships	2

Water System Partnerships Benefits	3

Funding and Financing Resources for Water System Partnerships	4

National and Regional Funding Sources and Financing Options	5

State-Level Funding Sources	8

California - Funding Water System Partnerships	9

Proposition 1	9

Proposition 84	11

Additional Partnerships Funding Resources in California	14

Florida - Funding Water System Partnerships	15

Water Infrastructure Finance and Innovation Act	15

Water & Waste Disposal Loan & Grant Program	16

Additional Partnerships Funding Resources in Florida	19

Massachusetts - Funding Water System Partnerships	21

Drinking Water State Revolving Fund Program	21

Local Water System Assistance Program	22

Rural and Small Town Development Fund	23

New Mexico - Funding Water System Partnerships	24

Capital Outlay Special Appropriations Program	24

Water Project Fund	25

Additional Partnerships Funding Resources in New Mexico	27

Ohio - Funding Water System Partnerships	29

Water Supply Revolving Loan Account	29

Area Development Program	31

Additional Partnerships Funding Resources in Ohio	33

Pennsylvania - Funding Water System Partnerships	35

Pennsylvania Infrastructure Investment Authority	35

Additional Partnerships Funding Resources in Pennsylvania	37

Washington - Funding Water System Partnerships	40

DWSRF Construction Loans	40

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Water System Partnerships - Funding Resources

Additional Partnerships Funding Resources in Washington	43

West Virginia - Funding Water System Partnerships	45

Drinking Water Treatment Revolving Fund	45

West Virginia Infrastructure Fund	47

Additional Partnerships Funding Resources in West Virginia	49

Summary	50

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Water System Partnerships - Funding Resources

Acknowledgements

EPA would like to acknowledge the federal, state, and local entities who provide funding resources for
water system partnership activities, create materials to increase awareness of these funding resources,
and share their insight on water system partnerships resources. In particular, the Environmental Finance
Center Network's Funding Sources by State or Territory map was consulted to compile the resources in
this document. The Rural Community Assistance Partnership (RCAP) provided their expertise in their
review of some of the funding resources and state-level funding sources highlighted in this document. A
special thanks also to those who reviewed information in this document pertinent to their state
including the Drinking Water State Revolving Fund in Massachusetts, and the State Water Resources
Control Board in California.

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Water System Partnerships - Funding Resources

Overview

Purpose

This document is meant to help water systems, technical assistance providers, and communities learn
more about available resources that could be used to fund water system partnerships activities. This
document starts with an introduction to water system partnerships and their benefits. It then describes
and offers examples of funding and financing options available on the national and regional level. Next,
partnerships funding resources for individual states are explored. The State-Level Funding Sources
sections include state-specific funding resources for water system partnerships and projects that were
implemented using these resources. State-level examples can help you visualize how funds have been
used and identify and access similar funding resources in your state. Please visit the Water System
Partnerships Getting Started Guide to assess your current stage in the water system partnerships
planning process, review next steps, and learn how to plan and apply for funding.

introduction to Water System Partnerships

Public water systems (PWSs) are required to provide safe drinking water to their customers that meets
all federal Safe Drinking Water Act (SDWA) requirements and state regulations. In order to deliver
reliable service at full-cost pricing, water systems must maintain technical, managerial, and financial
(TMF) capacity while balancing competing resources and the obligation to comply with new, evolving
regulations. Small water systems serving a population less than 10,000 may face unique challenges in
providing drinking water that meets federal and state regulations. These challenges may include:

4 limited access to and availability of
qualified drinking water operators;
4 persistent compliance issues;
4 aging infrastructure;

4 limited financial, technical, and
managerial resources and capacity;

4 difficulty filling positions and maintaining

continuity on governing bodies;
4 inability to achieve economies of scale;
4 emerging and legacy contaminants; and
4 other water quality and/or quantity
issues.

Fortunately, resources are available to assist water systems in building TMF
capacity which can help them overcome some of these challenges through
partnerships with other water systems. Partnerships encompass a range of
opportunities for water systems to work together to protect public health by
leveraging existing resources. A "water system partnership" is an umbrella
term used to define any informal or formal relationship or agreement
between a water system and another entity. The other entity or entities may
include other water systems, regional, state, local, or tribal governmental and
non-governmental bodies, or not-for-profit organizations. Water system
partnerships can be as simple as an understanding to provide aid during a
crisis, or as complex as creating a new entity to manage a group of existing
water systems. The most successful partnerships are those that share benefits
across all participating water systems while addressing a shared challenge.

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Water System Partnership Example

To reduce costs, a water system in Birmingham, Alabama created an internal training program
rather than continuing to hire outside contracted trainers. The water system became an industry
leader in providing trainings in Alabama and offered low-cost training to other water systems in the
state. Increased training opportunities resulted in higher employee retention and career growth,
which reduced hiring costs and created more knowledgeable staff. The internal training program
also improved a shortage of a particular class of operators in the state and increased collaboration
between water systems. For more examples of successful water system partnerships, visit EPA's
Water System Partnerships Case Studies website.

Types of Water System Partnerships

The type of water system partnership formed should be tailored to address the water system's unique
challenges and strengths while demonstrating sensitivity to the community's culture and existing
relationships.

There are four general types of water system partnerships. Water systems can also use several types of
partnerships in a layered approached to improve efficiency and provide safe drinking water. For
successful water system partnership examples, explore EPA's Water System Partnerships Case Studies
website.

A Informal Cooperation: Water systems coordinate with other systems without contractual
obligations.

A Contractual Assistance: Water systems contract with other water systems or service providers.
The water systems remain independent, but certain functions are contracted out to increase
efficiency.

A Joint Power Agency: A group of water systems create a new management entity designed to
serve the water systems that formed it.

A Ownership Transfer: Water systems engage in mergers, mutual transfer of existing entities, or
creation of a new entity.

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J Water system
^	partnerships

encompass a range of
opportunities for water
systems to work together
in order to sustainably
provide water services.

Increasing Transfer of Responsibility

Creation of a new entity
by several water
systems that continue
to exist as

independent entities.

Work with other water
systems, but without
contractual obligations.

Requires a contract,
but contract is
under water
system's control.

Figure 1. Types of water system partnerships.

Water System Partnerships Benefits

When entering a water system partnership there are immediate and long-term benefits for the water
system, its customers, and the state drinking water program. They can gain economies of scale, accrue
long-term savings, improve customer service, and
increase TMF capacity. In addition, when water
systems are able to address immediate concerns and
assure consistent public health protection, their
existing operations and maintenance (O&M) and
capital improvement costs to plan for future
operations become better understood. Water system
partnerships designed to help overcome specific
challenges may also demonstrate increased
compliance with the state drinking water program,
increased resource savings, and improved customer
relations. Finally, water system partnerships benefit
drinking water customers with improved water
quality and more reliable water service.

Utilities Helping Utilities

Water and Wastewater Agency Response
Networks (WARNs) are available in 49 states
and in the Northern Capital Region. These
networks allow utilities to share resources
in an expedited way to help utilities respond
to and recover from disasters. Many WARNs
will also help utilities locate available
funding for projects. To learn more or get
involved with a WARN near you visit EPA's
list of Mutual Aid and Assistance for
Drinking Water and Wastewater Utilities.

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Water System Partnerships - Funding Resources

Funding and Financing Resources for Water System Partnerships

Financial benefits of water system partnerships include improved efficiency, cost reductions, and
stronger financial positioning. Initial start-up costs for water system partnerships may occur during the
planning and implementation phases, but partnerships can ultimately provide long-term solutions that
improve TMF capacity.

Launching a water system partnership can involve many steps including identifying partners, identifying
a partnership activity, finding and building a support team, and securing funding. Funding can be vital to
the success of a water system partnership activity and can be used for activities such as water system
interconnections, acquisitions, and infrastructure upgrades. Funding can be used for planning and pre-
construction activities such as design and engineering expenses associated with an activity. Funding can
also be used to hire a business manager to administer a new management entity. A business manager
might be needed to develop budgets, complete regulatory requirements, facilitate board meetings, and
support the implementation of business plans. Funding could also be used to implement the water
system partnership by paying for staff time and purchasing additional resources.

Click here to jump to the
State-Level Funding
Sources

The funding and financing resources described in this document
represent some of the federal and state programs available for water
system partnerships. They are meant to provide an overview and
examples of the types of resources available to water systems across
the U.S.

When considering funding and financing options for water
system partnership activities, consider how different types
can support specific phases or elements of projects. Types
of funds to consider include:

Grants

Traditional (e.g., loans and bonds)

Creative (e.g., alternative revenue streams)
Multi-type (e.g., combination of available funds)
Private (e.g., private investments, private credit
structure)

Public (e.g., public trust funds)

Funding vs. Financing

Funding and financing resources are
referenced in this document. EPA uses
the following definitions to distinguish
between the two:

Funding refers to one-way sources of
money (e.g., grants or local funding).

Financing refers to sources that must
be repaid (e.g., loans and bonds).

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Water System Partnerships - Funding Resources

National and Regional Funding Sources and Financing Options

A variety of funding and financing resources are available across the nation to
support water system partnerships. Through the annual appropriations process of
the United States Congress, some federal agencies receive funding for their grant
programs. After the federal agencies allocate the funding across the states, decisions
regarding the types of projects and water system partnerships selected for funding
may be made at the state or local level.

For example, EPA's Drinking Water State Revolving Fund (DWSRF) Program is partially
secured through congressional appropriations, which the program then splits across
states according to allotment requirements in the SDWA. Similarly, the Housing and Urban Development
(HUD) Community Development Block Grant (CDBG) Program secures funding through congressional
appropriations, which the program then splits across states based on specific criteria and a formula for
allocating funds. While states are critical partners in administering funding programs and demonstrating
effective projects, specific requirements may accompany the programs and water systems should
become familiar with those requirements when planning a project.

Examples of funding and financing programs in the U.S. that may be applicable to water system
partnerships, include:

U.S. Environmental Protection Agency

DWSRF Program

Provides below-market interest rate loans to eligible public water systems for planning, design, and construction of
drinking water infrastructure projects. Funds can also be used by states to provide technical and other assistance to
water systems pursuing partnerships, or for planning activities that would support these collaborations, such as the
development of regional water supply master plans. States can also use a portion of their capitalization grant to
promote collaborative and water system partnership relationships between water systems and to fund regional water
supply master plans. More information on DWSRF eligibilities can be found in the DWSRF Eligibility Handbook.

See the Massachusetts State-Level Funding Sources to learn how three water systems came together to provide the
supply, treatment and distribution of water to the member towns utilizing the DWSRF program.

For more information, visit: https://www.epa.gov/dwsrf
Bipartisan Infrastructure Law (BIL)

Signed into law on November 15, 2021, the BIL provides supplemental appropriations for the DWSRF program for five
years, beginning in Fiscal Year 2022. There are three supplemental appropriations - one for general projects that
meet DWSRF eligibilities (including partnership-related projects and activities), one for lead service line identification
and replacement, and the third for projects that address emerging contaminants, with a focus on perfluoroalkyl and
polyfluoroalkyl substances (PFAS).

For more information, visit: https://www.epa.gov/dwsrf/bipartisan-infrastructure-law-srf-memorandum
EPA Region l's Healthy Communities Grant Program*

Offers grants to support Target Investment Areas in New England to reduce environmental risks, protect and improve
human health and improve the quality of life.

For more information, visit: https://www3.epa.gov/regionl/eco/uep/grants 2020hc.html
Public Water System Supervision (PWSS) Grant Program

Assists states, territories, and tribes in carrying out their PWSS programs. Funds are allotted to the states or to the
Region for tribal support.

For more information, visit: https://www.epa.gov/dwreginfo/public-water-svstem-supervision-pwss-grant-program

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Water Infrastructure Finance and Innovation Act (WIFIA) Program

Offers long-term, low-cost supplemental loans for regionally and nationally significant projects.

See the Florida State-Level Funding Sources to learn how a group of water systems that recently formed a water
cooperative were able to access a WIFIA loan.

For more information, visit: https://www.epa.gov/wifia/what-wifia

Water Infrastructure Improvements for the Nation Act (WHIM Act) - Assistance for Small and Disadvantaged
Communities Drinking Water Grant

Awards grants to states and tribes to support underserved communities that meet the small and disadvantaged
community definition. Eligible projects include those to return a water system to compliance and efforts that benefit
disadvantaged communities on a per household basis.

For more information, visit: https://www.epa.gov/dwcapacitv/water-infrastructure-improvements-nation-act-wiin-
act-grant-programs-0

U.S. Department of Agriculture

Emergency Community Water Assistance Grants

Helps eligible communities prepare, or recover from, an emergency that threatens the availability of safe, reliable
drinking water.

For more information, visit: https://www.rd.usda.gov/programs-services/emergencv-communitv-water-assistance-
grants

Special Evaluation Assistance for Rural Communities and Households (SEARCH)

Helps small, financially distressed rural communities with predevelopment planning costs, including feasibility studies
to support applications for funding water or waste disposal projects and preliminary design and engineering analyses.
For more information, visit: https://www.rd.usda.gov/programs-services/search-special-evaluation-assistance-rural-
communities-and-households

Water and Environmental Programs (WEP)

Provides funding exclusively for rural water and waste infrastructure needs of rural communities with populations of
10,000 or less. There are a variety of loan and grant programs available to finance the acquisition, construction or
improvement of drinking water sourcing, treatment, storage and distribution, and in some cases to purchase facilities
to improve service or prevent loss of service. Visit the link below for a full list of these programs.

See the Florida State-Level Funding Sources to learn how a loan from the WEP program facilitated the purchase of
a struggling wgter system in order to provide religble, sgfe, gnd gffordgbie wgter.

For more information, visit: https://www.rd.usda.gov/programs-services/all-programs/water-environmental-
programs

Other

Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (EAA) Programs

Supports development in economically distressed areas via investments that foster job creation and attract
investment.

For more information visit: https://www.eda.gov/funding-opportunities/

HUD CDBG Program

Funds local community development activities with the goal of providing affordable housing, anti-poverty programs,
and infrastructure development.

For more information visit: https://www.hudexchange.info/programs/cdbg-state/:
https://www.hud.gov/program offices/public indian housing/ih/grants/icdbg
National Rural Water Association (NRWA) Rural Water Loan Fund (RWLF)

Provides low-cost loans for short-term repair costs, small capital projects, or pre-development costs associated with
larger projects.

For more information visit: https://nrwa.org/members/products-services-portfolio/rural-water-loan-fund/

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Water System Partnerships - Funding Resources

CoBank

Provides financing to water cooperatives, water companies, and not-for-profit and municipal water systems in rural
areas.

For more information visit: https://www.cobank.com/corporate/industrv/water
Appalachian Regional Commission (ARC) Grants*

Grants are funded using Congressionally appropriated funds that align with ARC's strategic plan investment priorities,
which includes critical infrastructure (e.g., water systems).

See the Ohio State-Level Funding Sources to learn how an ARC Grant was used to form a water system partnership
by installing a water service extension to provide reliable water.

For more information visit: https://www.arc.gov/grants-and-contracts/

Southeast Rural Community Assistance Project, Inc. (SERCAP) Community Development Financial Institution (CDFI)
Loan Fund and Facilities Development Grant Program*

Provides loans to local governments, public service authorities, user associations, nonprofit organizations, and other
community entities for the development and/or construction of valuable community projects.

For more information visit: https://sercap.org/about/who-we-serve/communitv-government-groups
American Rescue Plan Act (ARPA) Funding

Provides funding to state and local governments for projects that address public health or economic impacts,
including water infrastructure projects. The U.S. Treasury Department will provide funding to local governments in
two equal installments. The first payment became available in May 2021, and the second payment will be delivered
approximately twelve months after delivery of the first payment.

See the West Virginia State-Level Funding Sources to see how gn Americg Rescue Plgn Act (ARPA) Grnnt wgs used
to form g wgter system pgrtnership by building g wgterline extension.

For more information visit: https://home.treasurv.gov/policv-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/state-and-local-fiscal-recoverv-funds
* Funding source is specific to certain areas/locations and is not available for all U.S. states.

DWSRF Set-Asides

While the DWSRF Program provides affordable financing to water systems to help fund drinking water
infrastructure improvement projects, states have the discretion to set aside up to approximately 31 percent of
their annual federal DWSRF capitalization grant to support non-infrastructure needs. While the set-asides
cannot be used for water system infrastructure projects, they can be used for a wide range of activities,
including the planning and design steps of the project. DWSRF set-asides can also be used to support planning
and analysis needed for partnerships that do not involve physical interconnection, such as evaluating and
developing shared billing or system management.

There are four types of set-asides: Administration and Technical Assistance; Small Water System Technical
Assistance; State Program Management; and Local Assistance and Other State Programs.

General activities that have been funded by set-asides include:

	Administering the DWSRF Program

	Supporting PWSS Program management

	Supporting capacity development, operator certification, and wellhead protection programs

	Financing local source water protection initiatives

	Providing technical assistance to water systems

For more information on DWSRF set-asides, visit: https://www.epa.gov/dwcapacity/about-drinking-water-
state-revolving-fund-dwsrf-set-asides.

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Water System Partnerships - Funding Resources

State-Level Funding Sources

State-level funding sources available to water systems vary with new and expanded options becoming
available each year. Below are state-specific examples that provide in-depth discussions into a few
funding resources in each state along with a successful water system partnership that highlights use of
that funding source. At the end of each state section is a list of additional examples of funding sources in
that state that could also be applied to water system partnerships.

Click the state button below to read discussions on funding resources in that state.

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Water System Partnerships - Funding Resources

California - Funding Water System Partnerships

California has a number of resources available for funding water system partnerships. The funding
sources listed below are not representative of all possible opportunities available to fund water system
partnerships in California but are some resources water systems in California may consider when
pursuing funding for partnership activities.

Several funding programs, including the Drinking Water State Revolving Fund
(DWSRF), are available through the State Water Resources Control Board
(SWRCB) and implemented by the Division of Financial Assistance (DFA).

Many of the programs support consolidation of water systems and split
funding into a planning phase and a construction phase. Many of the
programs also prioritize disadvantaged communities (DACs) and severely disadvantaged communities
(SDACs). California defines DACs and SDACs in their DWSRF Intended Use Plans: DACs are defined as
those with a median household income less than 80% of the state's median household income level, and
SDACs are those with a median household income less than 60% of the state's median household
income level.

Most of California's state agencies, including the SWRCB, accept applications through the Financial
Assistance Application Submittal Tool (FAAST) webpage. The FAAST webpage is also a convenient
resource that keeps an updated list of funding programs that are currently accepting applications. There
are also "how-to" videos on starting, submitting, and uploading certain applications (e.g., DWSRF
applications).

Below are two in-depth descriptions of funding resources that have been used to support water system
partnerships in California. Each describes the application process, eligibility requirements, and provides
an example of how funding was utilized for a successful water system partnership.

Proposition 1

SWRCB administers the Proposition 1 Drinking Water funds. $260 million is available for drinking water
grants and loans for actions to help meet safe drinking water standards and/or ensure drinking water
affordability.

PROCESS:

Proposition 1 funds are administered and managed under the same procedures for providing DWSRF
funds, allowing DWSRF low-interest financing options to be leveraged with the Proposition 1 funds. Staff
review and approve financing for projects that are eligible, have complete application packages, and are
ready to proceed to a financing agreement in the order they are ranked. DFA conducts a technical,
environmental, and financial review to determine applicants' eligibility for funding.

If the SWRCB does not have enough money to fund all projects that are eligible, have complete
application packages, and are ready to proceed, then they will prioritize projects in small, DACs with the
lowest median household income and projects involving consolidation or extension of service.



Water Boards

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Water System Partnerships - Funding Resources
ELIGIBILITY:

Eligible water systems are those that demonstrate TMF capacity and that fall into one of the following
drinking water project categories.

A Immediate health risk
A Untreated or at-risk sources
A Compliance or shortage problems
A Inadequate reliability
A Secondary risks

A Other projects (e.g., water system deficiencies that address current or prevent future violations
of health-based standards)

Projects will receive priority over others within the same category if the project benefits a DAC or SDAC,
or the project will result in the consolidation of water system(s) or extension of service to a DAC or SDAC
that is not already served by a water system.

The types of water systems listed below may be eligible for reduced interest rates, extended term
financing, and principal forgiveness for a planning or construction project. This is because SWRCB
determines that these water systems may have financial hardship due to their size and lack of
economies of scale.

	A small community water system (CWS) serving a DAC that is owned by a public agency or
nonprofit water company.

	A small CWS serving a DAC that is owned by a Native American Tribe.

	A nontransient noncommunity water system (NTNCWS)
serving a DAC or SDAC that serves solely the following:

o A public K-12 school; and/or
o A not-for profit K-12 private school; and/or
o A not-for-profit daycare facility, and/or
o A not-for profit labor camp; and/or
o A not-for-profit elder care facility; and/or
o A not-for-profit health care facility.

	A PWS extending services to a DAC or SDAC that is not currently served by a PWS.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Placer County Water Agency - Ownership Transfer

Placer County Water Agency (PCWA) and Dutch Flat Mutual (DFM) are two water systems in Placer
County, California. Their consolidation process began in 2016 when the DFM Board of Directors voted to
pursue connection to PCWA. The connection was important to ensure the communities had a reliable
source of drinking water into the future while also allowing them to benefit from economies of scale.

In 2018, DFM and PCWA received $480,000 from Proposition 1 funds to pay for the project design. In
2019, PCWA and DFM submitted another application for a SWRCB grant to fund construction, which is
estimated to be just over $4.5 million (which includes about $300,000 for construction contingencies), of
which $4.3 million could be covered by the grant. Construction would also be funded by the sale of
DFM's assets. In the first phase of the project, the DFM pipeline (which feeds their 180,000-gallon
storage tank from their water treatment plant) will be connected to the PCWA pipe. PCWA will then
supply treated water to DFM, and DFM will continue supplying water to their customers.

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For more information about
Proposition 1, visit:
https://www.waterboards.ca.gov/
water issues/programs/grants loa
ns/propositionl.html or contact
infoffi waterboards.ca.gov.


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Water System Partnerships - Funding Resources

In the second phase of the project, all 8,600-feet of the DFM distribution pipe, 22 valves, 24 fire
hydrants, appurtenances, service lateral, and meters will be replaced. PCWAwill subsequently take
ownership of the entire distribution system, the DFM 180,000-gallon storage tank, and all new
infrastructure constructed to serve the Dutch Flat community. Connection to PCWA will allow DFM's
water treatment plant to be decommissioned. Upon completion, PCWA will provide retail service to all
of DFM's 106 customers. As of the spring of 2020, the planned milestones were to approve the
consolidation agreement in April 2020, complete the state funding agreement for construction in August
2020, advertise and receive bids for construction in September 2020, and award the construction
contract in November 2020. Construction is expected to begin in 2022.

Proposition 84

Proposition 84 authorized California to sell general obligation bonds, including for safe drinking water
and water quality projects. These funds are implemented through many different grants. The SWRCB
Division of Drinking Water (DDW) implements these funds under Section 75021 (emergency clean water
grants), Section 75022 (small community infrastructure improvements for chemical and nitrate
contaminants), and Section 75025 (grants to prevent or reduce contamination of groundwater that
serves as a source of drinking water). The Department of Water Resources (DWR) implements these
funds under the Integrated Regional Water Management (IRWM) Grant Program.

PROCESS:

The funding process under the DDW is slightly different under each of the three sections, but in general,
the process is as follows. First, applicants fill out a pre-application, which is reviewed and ranked by
DDW. DDW then establishes their project priority list and invites those on the list to submit full project
applications or feasibility study applications, depending on the project. Once the applications are
completed by the water systems, DDW evaluates applications. DDW issues commitment letters to water
systems and those that meet the conditions in the commitment letters are issued a funding agreement.

The funding process is much different under the DWR. First, an IRWM region must be accepted by the
DWR through a regional acceptance process. Then, authorities in the IRWM region can collaborate to
form an IRWM plan. The planning process includes identifying objectives and projects, and prioritizing
those projects. The region can then apply to the IRWM Grant Program to receive grant funding for
projects that help meet long term water needs, including the provision of safe drinking water and the
protection of water quality.

ELIGIBILITY:

Section 75021 provides clean water grants for emergency and urgent actions to ensure the availability
of safe drinking water. Eligible projects are those that provide alternate water supplies, improve or
repair water systems to prevent contamination, implement water treatment or treatment systems, or
connect to an adjacent water system. The following criteria are considered to determine eligibility:

	Degree and nature of contamination

	Whether the hazard is acute or chronic

	Length of consumer exposure

	Any actual or suspected illness

	Action by local Health Officer or local Director
of Environmental Health

	Existence, duration, and extent of water outage or
power outage

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For more information about
Proposition 84 granted under DWR,
visit: https://water.ca.gov/Work-
With-Us/Grants-And-Loans/IRWM-
Grant-Programs or contact your
IRWM regional contact.


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Water System Partnerships - Funding Resources

Section 75022 funds small community drinking water infrastructure improvements and related actions
to meet safe drinking water standards. Priority projects address chemical and nitrate contaminants,
other health hazards, and serve DACs or SDACs. Eligible recipients include public agencies and
incorporated mutual water companies. The following are among the criteria considered to determine
eligibility and ranking:

	Meet the following TMF criteria: consolidation assessment, proof of ownership, proof of water
rights, and a budget projection

	In noncompliance with a primary drinking water standard or notification level, or dependent on
surface water and under an order to boil water

	Whether funds will be used to help meet applicable drinking water standards

	Project must at least evaluate consolidation or interconnection

	Whether project is regional (i.e., addresses issues with at least three water systems)

Section 75025 provides grants to immediate projects that prevent or reduce contamination of
groundwater that serves as a source of drinking water. Eligible project costs include preliminary costs
and construction costs. The following are among the criteria considered to determine eligibility and
ranking:

	Prevent or reduce groundwater contamination

	Protect public health and address a contaminant with a primary MCL

	Address an anthropogenic source of contamination

	Median household income of the community

	Potential to enhance water supply reliability

	Characteristics of contaminant plume

The IRWM Grant Program provides grants to fund projects of local public agencies and non-profit
organizations in an IRWM region. Projects eligible for funding may include those that involve planning,
implementation, and DAC involvement. All projects must be consistent with the region's IRWM plan.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

City of Tulare and Pratt Mutual Water Company - Ownership Transfer

Pratt Mutual was a small water system in Tulare County within rural Central San Joaquin Valley, located
just two miles south of the City of Tulare. The City of Tulare is a city in Central California and had a
population of approximately 62,000. Pratt Mutual served Matheny Tract, a DAC of approximately 1,500
residents. The water system began experiencing compliance issues in 2010 when two of its wells
exceeded the maximum contaminant level (MCL) for arsenic. The City of Tulare and Pratt Mutual began
exploring water system partnership options that year. To help the water system identify a path
forward, the state funded a planning project to analyze options. The analysis determined that
connecting to the City of Tulare was the most affordable option to provide safe reliable drinking water
to the residents of Matheny Tract.

In 2013, $4.9 million in Proposition 84 funding was made available to Pratt Mutual to connect the
Matheny Tract to the City of Tulare water system through two points of connection and to install
meters at all service connections. This effort included replacing the existing Pratt Mutual
distribution system. Construction halted in 2014, during the height of California's drought, when
the City of Tulare reconsidered its ability to supply an adequate quantity of water.

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In 2015, under Senate Bill 88, the Division of Drinking Water issued
an order directing the City of Tulare to connect Matheny Tract to its
water system. Thus, while the transfer of ownership was driven by
the consolidation under Senate Bill 88, their relationship and
communication about partnering had already been underway.

After the passage of Senate Bill 88 in June 2015 the SWRCB began
the steps toward requiring consolidation. They hosted two public
meetings in March 2016. After hosting the public meetings and
completing an assessment to determine if the water system
partnership was an appropriate candidate for consolidation, the
SWRCB issued a mandatory consolidation order to the City of Tulare
and Pratt Mutual

Figure 2. A Matheny Tract resident opens
the water valve to bring safe reliable
drinking water to the community.

The consolidation was completed In May 2016. The residents of the Matheny Tract community have
been receiving safe drinking water from the City of Tulare since June 2016. The City of Tulare supplies
water to the residents of Matheny Tract through the two existing interconnections constructed in 2013.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Las Virgenes Municipal Water District and Calleguas Municipal Water District - Contractual Assistance

The Las Virgenes Municipal Water District (LVMWD) and Calleguas Municipal Water District (CMWD)
own and operate water systems outside Los Angeles. The LVMWD serves approximately 75,000 and
CMWD serves nearly 650,000, but they each depend on purchased water supplies from Metropolitan
Water District of Southern California that travels more than 400 miles to reach each water system. Both
water systems experienced scheduled and unscheduled water delivery interruptions that affect
provision of delivering safe drinking water to their customers. In March 2015, the water systems formed
an interconnection agreement to improve the reliability of the provision of safe drinking water. They
determined that interconnection is a cost-effective way to benefit both water systems by delivering
water between the water systems if one experiences interruptions.

LVMWD and CMWD estimate the total project cost at $9,207,384.

They received $1,975,517 from the Proposition 84 IRWM Grant

Program.

The project involves constructing an intertie pipeline between the
two water systems which will allow up to 870 acre-feet per year of
water to be exchanged between the water systems whenever
scheduled or unscheduled water delivery interruptions occur. The
intertie pipeline will also allow LVMWD to fill their reservoir with an
increase of 1,300 acre-feet per year. A recycled water pipeline

extension will also be constructed for LVMWD along the same	Figure 3, CMWD pipe alignment

alignment, serving as irrigation. The project is expected to be completed in 2024.

The LVMWD continuously updates the public through the project's dedicated webpage and informing
the public about construction impacts through mailers, door hangers, social media, and their Everbridge
alert system. Transparency and cooperation are key to this partnership.

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Additional Partnerships Funding Resources in California

SWRCB

California DWSRF Program

Helps systems finance drinking water infrastructure planning and construction projects necessary to achieve or
maintain compliance with SDWA requirements. Applications are accepted on a continuous basis and funds are
provided upon DFA's review.

For more information visit: https://www.waterboards.ca.gov/drinking water/services/funding/SRF.html
Contact: drinkingwatersrf@waterboards.ca.gov

The Safe and Affordable Funding for Equity and Resilience (SAFER) Program

Helps small systems in DACs develop, fund, and implement capital improvement projects and improve TMF
management. Small systems are defined as those that serve less than 3,300 connections or less than 10,000 people.

For more information visit: https://www.waterboards.ca.gov/water issues/programs/grants loans/sustainable water solutions/safer.html
Contact: DFA-OSWS@waterboards.ca.gov

Technical Assistance (TA) Funding Program

Helps small DACs develop, fund and address eligible drinking water, wastewater, stormwater, or groundwater needs.
TA is provided by non-profit organizations. TA can include capital improvement project implementation and
development, operation and maintenance facilitation, engineering and environmental analysis, legal assistance,
financial analysis, TMF assessments, board or operator training, and more. TA requests are continuously accepted.

For more information visit: https://www.waterboards.ca.gov/water issues/programs/grants loans/tech asst funding.html
Contact: DFA-TAreauest@waterboards.ca.gov

Small Community Funding

Helps small DACs that provide drinking water services to less than 10,000 people, or wastewater services to less than
20,000 people, with technical assistance needs, interim water supplies, and implementation of eligible drinking water
or wastewater capital improvement projects.

For more information visit: https://www.waterboards.ca.gov/water issues/programs/grants loans/sustainable water solutions/

Contact: DFA-OSWS@waterboards.ca.gov

California Infrastructure and Economic Development Bank

Infrastructure State Revolving Fund (ISRF) Program

Provides low-cost public financing to state and local government entities (e.g., municipalities, joint power authorities,
nonprofit organizations) for various public infrastructure and economic expansion projects. IBank offers technical
support, legal assistance, and loan officer support throughout the approval and/or application process.

For more information visit: https://www.ibank.ca.gov/loans/infrastructure-loans/

Contact: LoanProgram@IBank.ca.gov



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Water System Partnerships - Funding Resources

Florida - Funding Water System Partnerships

A number of resources are available for funding water system partnerships within the State of Florida.
The Florida Department of Environmental Protection (DEP), Division of Water Restoration Assistance,

is the primary agency responsible for implementing Florida's Drinking Water State Revolving Fund
(DWSRF) that provides loans and grants to local governments, utilities, and even agencies for projects
that improve the quality and quantity of Florida's water resources. In addition to the funding resources
from Florida's state revolving fund, project sponsors in the state of Florida have also been successful in
accessing federal funding resources, such as the Water Infrastructure Finance and Innovation Act
(WIFIA) and the U.S. Department of Agriculture (USDA) Rural Development Water & Waste Disposal
Grant program.

Listed below are in-depth descriptions of two funding sources that have been used to support water
system partnerships in Florida. Each write-up describes the application process, eligibility requirements,
and provides an example of how funding was utilized for a successful water system partnership.



Water Infrastructure Finance and Innovation Act

The WIFIA Program, a federal program administered by EPA,
provides loans for eligible water and wastewater infrastructure
projects including reconstruction, rehabilitation, and replacement
activities. The objective of WIFIA is to accelerate investments in
water infrastructure by providing long-term, low-cost
supplemental loans for regionally and nationally significant
projects. A key feature of WIFIA is the availability of loans that have low-fixed interest rates and flexible
financial terms.

The WIFIA Program is designed to help finance large infrastructure projects. The minimum project costs
must be $20 million for most communities and $5 million for small communities serving a population of
25,000 or less. The WIFIA loan can finance up to 49 percent of the total project costs.

PROCESS:

Each year, EPA announces the amount of funding available, its priorities for that selection round, and a
deadline for submitting letters of interest from prospective borrowers. EPA reviews the letters of
interest and selects projects to continue through the application process.

ELIGIBILITY:

WIFIA loans can fund development and implementation for a range of water system partnerships,
including projects normally eligible for the DWSRF Program. Eligible activities include planning, design,
and pre-construction activities; construction and/or rehabilitation;
acquisition of real property; capitalized interest; expenses; and
other costs during construction. Eligible borrowers include local,
state, federal, and tribal governments, water system partnerships
and joint ventures, as well as corporations and trusts.

For more information about
WIFIA, visit:

https://www.epa.gov/wifia/what
-wifia or contact wifia@epa.gov.

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WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Polk Regional Water Cooperative - Joint Power Agency

In 2017, Polk County and its fifteen municipal
governments formed a new agency, the Polk
Regional Water Cooperative (PRWC), to lead
planning and management of future water supply
needs for the region. Population growth
throughout the area caused the parties involved in the Cooperative to recognize the need to consider,
advance and develop an effective regional approach to the conservation of water and the use, delivery,
and provision of potable and non-potable water systems. The PRWC's role is to proactively identify
alternate water sources and projects that will protect and sustain the future regional water supply of
Polk County, Florida. The PRWC specifically focuses on identifying sustainable groundwater sources,
developing strategies to meet future water demand, determining the infrastructure for water treatment
and distribution, and providing oversight and governance for the management of water resources.

The PRWC leveraged the cooperative water system partnership that had been established between the
municipal governments to develop a proposal for an Alternative Water Supply Program funded through
the WIFIA Program. In 2019, PRWC received a $235 million loan from EPA through the WIFIA funding
program to construct 37 Lower Floridan Aquifer wells, two water treatment plants, and transmission
systems to distribute 17.5 million gallons per day of alternative water supply to nearly 638,000 people.
The purpose of the project is to provide alternative high quality source water to meet future drinking
water needs, increase water supply reliability, facilitate water resource improvements in thirteen lakes,
sustain the availability of water to existing private residential potable wells, and help recover aquifer
levels.

WIFIA & DWSRF

The WIFIA Program and DWSRF Programs both provide sources of low-cost infrastructure financing
for much needed water infrastructure improvements. The programs are separate but are
implemented across similar project types and sizes and are often used together to co-finance a
project. The WIFIA Program is distinct from the DWSRF Program in certain ways. The WIFIA Program
can close a loan with a borrower before or after DWSRF funding is finalized, and borrowers may still
seek DWSRF funding after having secured WIFIA funding. The DWSRF by statute has a focus on small
and disadvantaged systems which typically have smaller projects. WIFIA is best-suited to provide
benefits to much larger projects, typically over $100 million, and frequently of regional or national
significance. WIFIA also has the authority to lend money directly to a state DWSRF Program if they
submit a letter of interest.

Water & Waste Disposal Loan & Grant Program

The USD A Rural Development Water & Waste Disposal Loan & Grant Program provides funding for clean
and reliable drinking water systems, sanitary sewage disposalsanitary solid waste disposaland storm
water drainage to households and businesses in eligible rural areas.

Funding is available in the form of long-term, low-interest loans. In some instances, pending the
availability of funding, a grant may be combined with a loan, if necessary, to keep user costs reasonable.



I * POLK REGIONAL

| WATER COOPERATIVE

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The loan term is up to a 40-year payback period, based on the useful life of the facilities financed with a
fixed interest rate. The interest rate is determined based on the need for the project and the median
household income of the area to be served.

PROCESS:

Applications are accepted year-round on a rolling basis and may be filed electronically using RDApply.
Applications are also accepted through local Rural Development Offices. Applicants are encouraged to
speak to the program specialist at their state office before beginning the application.

ELIGIBILITY:

Eligible project activities may be used to finance the acquisition
construction, or improvement of drinking water sources,
treatment, storage, and distribution systems. In some cases,
funding may also be available for related activities such as legal
and engineering fees, land acquisition and permitting, start-up
operations and maintenance, interest incurred during
construction and purchase of facilities to improve service or
prevent loss of service.

Eligible applicants include state and local governmental entities, private nonprofit organizations, and
federally-recognized tribes. Areas that may be served include rural areas and towns with populations of
10,000 or less, tribal lands in rural areas, and Colonias. Borrowers must have the legal authority to
construct, operate, and maintain the proposed services or facilities. All facilities receiving federal
financing must be used for public purpose.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

City of Dunnellon - Ownership Transfer

The City of Dunnellon in Florida is a community that had previously acquired three nearby water
systems. However, in 2017 they found themselves facing new challenges and after a Comprehensive
Utility Analysis was conducted by a third-party, it was determined the best option for the City of
Dunnellon was to divest. The water user rates were among the highest in the area, yet the water
systems were still financially and operationally stressed, facing infrastructure challenges and near-term
regulatory burdens. The Florida Governmental Utility Authority (FGUA), a single-purpose local
government authority focused on water and wastewater utility ownership, operation, and management,
stepped in to help. The FGUA owns and operates over 80 water systems in 13 counties across the State
of Florida, including 12 other water systems in Marion County, Florida.

In 2018, the FGUA received a $12.2 million loan from the USDA Rural Development Programs to
facilitate the purchase of the City of Dunnellon water system (i.e., take ownership over). The USDA
funding eliminated the higher cost outstanding loans and the resources available from FGUA's much
larger water system helped to stabilize user rates. Without the acquisition by FGUA, the City of
Dunnellon would have needed to increase user rates by approximately 17.45 percent above the rates
under FGUA ownership in order to meet the water system's needs. By eliminating high debt, the City of
Dunnellon was also able to strengthen its finances and improve its cash reserves.

This acquisition of the City of Dunnellon water system benefited over 7,000 residents with reliable and
safe drinking water and the USDA funding allowed the FGUA to maintain more affordable user rates and
make the necessary improvements to the water system.

For more information about the
Water and Waste Disposal Loan &
Grant Program from USDA, visit:
https://www.rd.usda.gov/program
s-services/water-waste-disposal-
loan-grant-program or contact
your state-specific personnel.

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Florida's Water Management Districts

As required by the Florida State Legislature, the state's water resources must be managed at a state
and regional level. The Florida Department of Environmental Protection is responsible for the
administration of the water resources at the state level, exercises genera! supervisory authority over
the state's five water management districts which are responsible for the administration of the
water resources at the regional level.

The state's five water management districts include the Northwest Florida Water Management
District, the Suwannee River Water Management District, the St. Johns River Water Management
District, the Southwest Florida Water Management District, and the South Florida Water
Management District.

The four core mission areas of the water management districts are: (1) water supply, (2) water
quality, (3) flood protection and floodplain management, and (4) natural systems. Each district has
its own funding program, described in further detail on the next page.

Suwannee

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Additional Partnerships Funding Resources in Florida

Florida Water Management Districts

South Florida Water Management District: Cooperative Funding Program

Assists local governments, public and private water providers, and other entities with construction and/or
implementation of alternative water supply and water conservation projects that support or complement the
District's mission.

For more information visit: https://www.sfwmd.gov/doing-business-with-us/coop-funding
Contact: Program Information and Assistance at (561) 686-8800 or coopfunding(5)sfwmd.gov

Southwest Florida Water Management District: Cooperative Funding Initiative

Covers up to 50 percent of project costs that help create sustainable water resources, enhance conservation efforts,
restore natural systems, and provide flood protection. At least 50 percent of project funding must be a hard-dollar
match from other sources.

For more information visit: https://www.swfwmd.state.fl.us/business/finance/cooperative-funding-initiative
Contact: Project Management Office at (800) 423-1476 ext. 4269 or cfi@swfwd.state.fl.us

Suwannee River Water Management District: RIVER Governmental Cost Share Program

County governments, municipalities, water supply authorities, and other interested government entities can apply for
funding that enhance or address the District's water supply, water quality, flood protection, and/or natural system
responsibilities.

For more information visit: https://www.mvsuwanneeriver.com/374/RIVER-Cost-Share-Program
Contact: Projects team at (386) 362-1001 or Proiects@SRWMD.org

St. Johns River Water Management District: Districtwide Cost-Share Funding

Provides funding for up to 25 percent of the construction costs for selected alternative water supply, water quality,
flood protection, and natural systems projects and up to 50 percent for water conservation projects. Projects are
eligible for a maximum district cost-share of $3 million per project or per applicant. Funding is limited exclusively to
construction-related costs.

For more information visit: https://www.sirwmd.com/localgovernments/funding/

Contact: Find your District Staff here.

St. Johns River Water Management District: Rural Economic Development Initiative
(REDI)/lnnovative Projects Cost-Share Funding

Projects are eligible for a maximum district cost-share of $500,000 per project or per applicant. Funding is limited
exclusively to construction-related costs, except REDI communities can include operation and maintenance projects. A
REDI community is economically disadvantaged with an employment base primarily in traditional agriculture or
resource-based industries and a population of 25,000 or less.

For more information visit: https://www.sirwmd.com/localgovernments/funding/redi/

Contact: Find your District Staff here.

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Florida Department of Environmental Protection

Florida DWSRF Program

Provides low-interest loans to eligible applicants for the planning, design and construction of public water
facilities. Funding requests are received on a rolling basis. Small, disadvantaged communities may be eligible for
principal forgiveness on 20-90 percent of the total project cost. Projects involving consolidation or
regionalization receive extra priority ranking points.

For more information visit: https://floridadep.gov/wra/srf/content/dwsrf-program
Contact: SRF Program at (850) 245-2835 or at SRF Reporting(5)dep.state.fl.us

Florida Department of Economic Opportunity

Florida Small Cities CDBG Program

Provides funds to local government units in small urban and rural areas. Funds can be used for projects and
administrative support for projects. Examples of eligible projects include water meter and waterline
replacement, water tank and treatment plant improvement, water main installation, and emergency generators.

For more information visit: https://floridaiobs.org/communitv-planning-and-development/assistance-for-governments-and-

organizations/florida-small-cities-communitv-development-block-grant-program

Contact: Florida Small cities CDBG Program at (850) 727-8405 or at CDBG@deo.mvflorida.com

Rural Infrastructure Fund (RIF) Grant

Provides funds to local government units in rural areas. RIF facilitates the planning, preparing and financing of
infrastructure projects in rural communities. RIF intends to facilitate access of rural communities to
infrastructure funding programs. Grants can be awarded for up to 50 percent of the project.

For more information visit: http://www.floridaiobs.org/RIF
Contact: Florida RIF at (850) 717-8481 or at RIF@deo.mvflorida.com

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Massachusetts - Funding Water System Partnerships

Massachusetts offers funding resources that can be used to fund water system partnerships. The
funding sources listed below are not representative of all possible opportunities available to fund water
system partnerships in Massachusetts but are some resources water systems in Massachusetts may
consider when pursuing funding for partnership activities.

The Massachusetts Water/ Wastewater Agency Response Network (MAWARN) is a partnership of water
and wastewater systems in Massachusetts that is open to any publicly-owned water and wastewater
system in Massachusetts to join. Water systems join by signing a standard agreement. Upon joining,
water systems have access to a database of utilities and resources and are eligible for Federal
Emergency Management Agency (FEMA) disaster reimbursement and rapid mutual aid and assistance
from other water systems.

Listed below are in-depth descriptions of three funding resources that have been used to support water
system partnerships in Massachusetts. Each describes the application process, eligibility requirements,
and provides an example of how funding was utilized for a successful water system partnership (if
applicable).

Drinking Water State Revolving Fund Program

The Massachusetts Department of Environmental Protection (MassDEP) oversees the Drinking Water
State Revolving Fund (DWSRF) with the goal of protecting public health, strengthening compliance with
drinking water requirements, and addressing the Commonwealth's drinking water needs. Solicitation for
projects occurs on an annual basis.

PROCESS:

To apply for funding, applicants must submit a Project Evaluation
Form (PEF) when MassDEP opens solicitation, typically in May of
each year.

MassDEP ranks projects based on the extent to which the project:

	Eliminates or mitigates a public health risk;

	Is necessary to achieve or maintain compliance with
applicable drinking water quality requirements;

	Is affordable to users in the service area;

	Consolidates or restructures a water system; and

	Implements, or is consistent with, watershed management plans (or addresses a watershed
priority) and is consistent with local and regional growth or infrastructure plans.

ELIGIBILITY:

Eligible projects include:

	New and upgraded drinking water treatment facilities;

	Projects to replace contaminated sources, new water treatment, or storage facilities;



The Disadvantaged Communities
Program is part of the MassDEP
DWSRF and offers forgiveness for
a percentage of a DWSRF
project's principal loan amount if
the project is in a disadvantaged
community, meeting certain
affordability criteria as
established by the state.

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	Consolidation or restructuring of water systems;

	Projects and water system activities that provide treatment,
or effective alternatives to treatment, for compliance with
regulated health standards, such as the surface water
treatment rule; and

	Installation or replacement of transmission or distribution
systems.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Tri-Town Water District-Joint Power Agency

The Towns of Randolph and Holbrook, Massachusetts jointly manage and treat the water supply that
each town uses for drinking water. Water is sourced from the Great Pond Reservoir System (GPRS). The
Town of Braintree also provides drinking water supplied by GPRS. Both water systems maintain drinking
water treatment facilities that reached the conclusion of their useful life.

The towns of Braintree. Randolph and Holbrook agreed to establish a joint power agency represented by
the Tri-Town Board of Water Commissioners for the purpose of constructing a single regional drinking
water supply shared by the three communities. Tri-Town is currently designing a single state-of-the-art
facility to replace the two antiquated facilities that are costly to operate, at an estimated project cost of
$68 million. They have applied for and received approval for a DWSRF loan to help finance the project.

For more information about the
Massachusetts DWSRF Program,
visit:

https://www.mass.gov/service-
details/srf-drinking-water-
program or contact your region-
specific personnel.

Local Water System Assistance Program

Massachusetts Water Resources
Authority's (MWRA) Local Water
System Assistance Program
(LWSAP j provides a total of $725
million in interest-free loans to
member communities to perform
water system improvement
projects. Community loans are
repaid to MWRA over a 10-year
period. The goal of the LWSAP is to
improve local water system pipeline
conditions to help maintain high
water quality from MWRA's
treatment plant through local
pipelines to customers' taps.

PROCESS:

MWRA distributes project funds on
a quarterly basis (in February, May, August, and November) to approved projects. MWRA staff review
proposed projects to determine if the project is a feasible water system rehabilitation project and to
assess the eligible project costs. After MWRA staff approve a proposed project, they designate an award
amount and schedule the execution of a Financial Assistance Agreement around one of the quarterly
funding distribution dates.



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Communities that are not eligible for the LWSAP Program

Figure 4. MWRA service area showing communities who are eligible (green and
blue) for LWSAP loans. Communities shaded gray are ineligible for LWSAP loans.
Source: httos://www.mwra.com/comsuoDort/lwsao/lwsaoDroaram.html

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ELIGIBILITY:

For projects to be eligible, they must be for the purpose of rehabilitating CWSs. Any costs necessary for
effective rehabilitation of local water distribution systems are eligible under LWSAP, including, but not
limited to:

	Construction, reconstruction, rehabilitation, alteration,
remodeling or other improvements;

	Engineering services including planning, design, and
construction services;

	Post rehabilitation certification and activities incidental; and

	Direct labor.

Communities who are members of MWRA are eligible for LWSAP
loans (Figure 4).



For more information about
the Local Water System
Assistance Program, visit:
https://www.mwra.com/coms
upport/lwsap/lwsapprogram.ht
ml or contact your region-
specific personnel.

Rural and Small Town Development Fund

The Rural and Small Town Development Fund Capital Grant Program was created for capital projects in
rural and small town communities. Grants range from $50,000 to $400,000.

PROCESS:

Grant proposals should be submitted through the Community One Stop for Growth Application portal.

Grant proposals are scored based on the following criteria:

	Achievable project scope

	Ability to execute

	Leadership

	Achievable timeline

	Reasonable budget, showing
commitment

Outcomes and impact on the
community

Progress to date, showing commitment
Responsiveness to the project's support
of the Commonwealth's sustainable
development principles

Preference is given to projects that leverage funding outside of the requested grant funds. Upon being
accepted for funding, grants funds are distributed as reimbursements. Reimbursement requests are
submitted quarterly for any work completed during the contract.

ELIGIBILITY:

Projects must take place in communities with populations less than
7,000 or population densities less than 500 people per square mile.
Projects must be completed by a specified date.

Funds must be used for capital projects, which include costs for pre-
construction, survey, design, and engineering; construction
(including administration); and feasibility studies.

For more information about the
Rural and Small Town
Development Fund in
Massachusetts, visit:
https://www.mass.gov/service-
details/rural-and-small-town-
grants or contact the One Stop
Team at onestopffimass.gov.

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New Mexico - Funding Water System Partnerships

The New Mexico Finance Authority (NMFA) oversees many funding programs that finance water
system partnership activities in the state. Two of these funding programs are highlighted below, and
multiple others are included in the additional water system partnerships funding resources section.

New Mexico also has a Water Infrastructure Portal that is a one-stop-shop to find water and wastewater
infrastructure funding solutions. The portal connects users to water infrastructure assistance, support,
and funding streams. Users simply fill out a Project Interest Form, which asks for information regarding
your entity, project, and amount of funding needed.

Listed below are in-depth descriptions of two funding sources that have been used to support water
system partnerships in New Mexico. Each write-up describes the application process, eligibility
requirements, and provides an example of how funding was utilized for a successful water system
partnership.

Capital Outlay Special Appropriations Program

The Capital Outlay Special Appropriations Program (CO SAP) provides state grants for infrastructure
projects that are appropriated each year by the New Mexico Legislator and the Governor. Projects
pertaining to water or other environmental infrastructure is overseen by the New Mexico Environment
Department (NMED) Construction Programs Bureau (CPB).

PROCESS:

New Mexico's CPB is responsible for administering capital outlay projects, contracting with the funded
entities, and monitoring the status of each project, including the budget and expenditures.

Communities are reviewed for eligibility and assessed for readiness to start their project. If ready to
proceed, CPB will certify the appropriation for the bond sale. Then, CPB and the communities form grant
agreements for the expenditure of the funds. Funds are then distributed via a reimbursement process.
Grantees work closely with their CPB Project Manager to ensure compliance with grant terms and
applicable laws and regulations, as well as to ensure project success.

ELIGIBILITY:

Drinking water, wastewater, and other environmental projects are
eligible for CO SAP funding. Project applicants must be current with
any audits, agreed upon procedures, or tiered reporting. Their
budgets and quarterly reports must also have been submitted to
the Department of Finance and Administration.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Ancones Mutual Domestic Water and Wastewater Consumers Association (PART 1) -Joint Power
Agency

Ancones and El Llanito are two small neighboring communities north of Albuquerque which both lacked
good quality drinking water and storage capacity. Specifically, Ancones only had shallow wells and El
Llanito only had one public well that was not in compliance with EPA primary drinking water standards.

For more information about CO
SAP, visit:

https://www.env.nm.gov/constr
uction-programs/capital-outlav-
special-appropriation-program/
or contact NMENV-
cpbsapffi state, nm. us.

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D

Thus, they joined to form the Ancones Mutual Domestic Water and Wastewater Consumers Association
(MDWWCA) to provide a new supply of water.

In 2013, MDWWCA received a CO SAP grant to start drilling a new well in Ancones. By 2015, the new
well was put into service and successfully supplied water to both communities.

In 2014, MDWWCA received another CO SAP grant, which they
used to design and construct a fill station so that the community
could access and haul water from Ancones.

The well and fill station improved the drinking water quality in the
two communities, but residents still had to haul water for domestic
use. See PART 2 below for how the communities pursued the
funding program below to further improve their drinking water
situation	Figures. The fill fill station card reader

at the Ancones well.

Water Project Fund

The NMFA manages the Water Project Fund. It uses proceeds from the Senior Severance Tax Bond and
from the Water Trust Fund to finance water projects recommended by the Water Trust Board arid
authorized by the Legislature. Awards are a combination of grants and loans, based on the applicant's
financial capability.

PROCESS:

Qualified entities that seek funding must apply each year, even if the project has previously been
authorized by the Legislature. Funding is considered pursuant to the comprehensive Project
Management Policies and the Water Trust Board Rules, which include the following weighted
prioritization criteria:

1.	Urgent to meet the needs of interstate stream commission-accepted regional water plan (5%)

2.	Local contribution (15%)

3.	Project readiness (10%)

4.	Regionalization (10%)

5.	Health and safety (25%)

6.	Planning and design (10%)

7.	Other: emergency (i.e., addresses catastrophic water quality or quantity conditions or violations)
(25%)

ELIGIBILITY:

Five types of projects are eligible for Water Project Fund awards.

1.	Water conservation, recycling, treatment, or reuse

2.	Flood prevention

3.	Those that collaborate with Endangered Species Act (ESA)
projects

4.	Water storage, conveyance, or delivery

5.	Watershed restoration and management

For more information about the
Water Project Fund, visit:

https://www.nmfinance.com/wa
ter-proiect-fund or contact
wtbadmin(5) nmfa.net.

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~

WATERS SYSTEM PARTNERSHIP HIGHLIGHT:

Ancones Mutual Domestic Water and Wastewater Consumers Association (PART2) - Joint Power
Agency

See PART 1 above for how the communities initially came together to form the Ancones MDWWCA to
drill a new well and install a fill station to allow the communities to obtain access to safe drinking water.

After Ancones and El Llanito partnered to form the Ancones MDWWCA and drill a new well in 2013 to
improve their drinking water quality, some residents still had to haul water
for domestic use. Ancones MDWWCA pursued and received funding from the
Water Trust Board in 2014 to construct a storage tank and water lines to
serve both communities. They received additional Water Trust Board funds in
2015 and 2016 to construct a pipeline to connect to the new distribution
system.

The two communities are a prime example of how perseverance to obtain
funding, meet regulatory requirements, and continuously improve their
water situation can help ensure the provision of safe drinking water into the
future.

Figure 6. The new storage
tank built to serve Ancones
and El Llanito,

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Additional Partnerships Funding Resources in New Mexico

New Mexico Finance Authority and New Mexico Environment

Department

New Mexico DWSRF Program

Provides low-cost financing for drinking water system construction and improvements. Funding is primarily provided
as 0% or 1% interest loans.

For more information visit: https://www.nmfinance.com/water-proiect-fund/drinkine-water-state-revolvine-loan-fund/

Contact: DW@nmfa.net

New Mexico Finance Authority

Local Government Planning Fund

Funds the development of planning documents for public infrastructure projects. Documents may include preliminary
engineering reports, feasibility studies, and asset management plans. Applications are accepted monthly and grants
are provided via reimbursements. Local governments (e.g., tribal entities and mutual domestic water consumer
associations) are eligible.

For more information visit: https://www.nmfinance.com/local-eovernment-plannine-fund/

Contact: LGPF@nmfa.net

Colonias Infrastructure Fund

Helps communities in southern New Mexico that lack basic infrastructure, including water and wastewater projects.
Local governments (e.g., counties, cities, mutual domestic water consumer associations) are eligible. Planning, design,
and construction projects are eligible. Funds are given as 90% grant and 10% loan with terms up to 20 years at 0%
interest.

For more information visit: https://www.nmfinance.com/colonias/

Contact: colonias@nmfa.net

Public Project Revolving Fund

Assists public entities in accessing capital markets at low interest rates. Public projects such as infrastructure
improvements and water system upgrades are eligible. Loans are provided to disadvantaged communities at
subsidized rates.

For more information visit: https://www.nmfinance.com/public-infrastructure-capital-financine/

Contact: PPRF@nmfa.net

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m

New Mexico Environment Department

New Mexico Community Development Block Grant (CDBG)

Addresses local development needs through implementation of infrastructure, planning, and other critical projects.
Municipalities and water associations are eligible. Of the total CDBG funding, 10% is set-aside each year for eligible
projects in designated Colonias.

For more information visit: https://www.nmdfa.state.nm.us/local-eovernment/communitv-development-bureau/

For more information about the Colonias set-aside, visit: https://www.hudexchange.info/proerams/cdbg-colonias/

Find your CDB Project Manager

New Mexico CDBG Planning Grant

Counties and incorporated municipalities can receive planning grants for up to $50,000. Eligible projects include
feasibility studies, preliminary engineering reports, regionalization, and infrastructure improvement.

For more information visit: https://www.nmdfa.state.nm.us/local-government/communitv-planning/cdbg-planning-grant/

Contact: New Mexico Department of Finance and Administration (505) 827-4985

Rural Infrastructure Program (RIP)

Provides low-interest loans to rural communities for water and wastewater projects. Eligible entities include mutual
domestic associations and water or sanitation districts that supply water or wastewater services, serving
municipalities less than 20,000 or counties less than 200,000. Loans are provided at 2.375% interest for terms up to 20
years. Project types include engineering studies and design, water pipelines, and water system rehabilitation.

For more information visit: https://www.env.nm.gov/construction-programs/rural-infrastructure-program/

Contact: NMENV-cpbinfo@state.nm.us

New Mexico Indian Affairs Department

Tribal Infrastructure Fund

Offered to tribal communities for planning and development of infrastructure, which includes water and wastewater
systems. Projects may be for design, construction, improvement, and expansion of water and wastewater systems.

For more information visit: https://www.iad.state.nm.us/policv-and-legislation/programs-and-funding/guidelines-and-procedures/

Contact: New Mexico Indian Affairs Department (505) 476-1600

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Ohio - Funding Water System Partnerships

Ohio offers a variety of funding resources that can be used to fund water system partnerships. The
funding sources listed below do not represent all possible opportunities available to fund water system
partnerships in Ohio and are meant to provide an overview and a sampling of the resources water
systems in Ohio may consider when pursuing funding for partnerships activities.

Supported by the Ohio Water Development Authority (OWDA), Ohio's Small Communities
Environmental Infrastructure Group (SCEIG) is made up of representatives from all major funding
agencies. The group shares information about technical assistance, education activities, and
opportunities for smaller water systems to present their projects and receive advice about where to
apply for financial assistance.

Listed below are in-depth descriptions of two funding sources that have been used to support water
system partnerships in Ohio. Each describes the application process, eligibility requirements, and
provides an example of how funding was utilized for a successful water system partnership.

Water Supply Revolving Loan Account

The DWSRF in Ohio, known as the Water Supply Revolving Loan Account (WSRLA), is a sub-program of
Ohio's larger Drinking Water Assistance Fund (DWAF). Ohio utilizes DWSRF set-asides for administrative
work, small water systems technical assistance, PWSs, and local assistance. Beginning in 1998, the
WSRLA has maintained a focus on addressing human health and supporting drinking water
infrastructure of public and private entities.

PROCESS:

Ohio EPA requests nominations from interested applicants at the beginning of each calendar year.
WSRLA funds are available to eligible applicants that submit a complete nomination package for a
project or multiple projects. A proposed project is reviewed and scored by the Ohio EPA's project
priority ranking system and prioritized against all other nominated projects, according to these
indicators:

1)	Human health risk

2)	Compliance with federal SDWA requirements and state regulations

3)	Effective water system management

4)	Regionalization

Targeted funding through no-interest loans and principal forgiveness is available for projects that
address lead service line replacement, water system regionalization, and water infrastructure
improvements to address Harmful Algal Blooms (HAB) and Per- and Polyfluoroalkyl Substances (PFAS).
Additional information about the application process and project ranking system is available in the
DWAF Program Year 2021 Program Management Plan.

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ELIGIBILITY:

Eligible projects include construction of new drinking water
infrastructure and upgrades to existing water systems including
work to support the planning, design, and construction phases.

Eligible applicants are community water systems (CWSs) and non-
community water systems (NCWSs). Construction loans are
typically awarded for 20 years, but shorter-term planning and
design loans are available. As of December 2020, interest rates for
a standard entity were 0.7 percent and for small water systems
were 0.2 percent.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Akron, Ohio-Joint Power Agency

The City of Akron, Ohio and surrounding townships
formed a Joint Economic Development District (JEDD) to
spur economic growth in the area in the 1990s. This
gives decision-makers a reason to invest in infrastructure
including transportation, but also water resources to
support growth for new businesses and people to move
into the area. The JEDD agreement included a plan for
Akron to extend their public drinking water services to the surrounding townships. Almost thirty years
later in early 2020, Akron was awarded a loan for $598,906 from WSRLA to fund the connection to 12 of
the small water systems in the surrounding townships. Akron qualified for principal forgiveness for half
the loan so the City will be responsible for repaying 50 percent of the loan with zero percent interest
since the project supported regionalization (i.e., consolidation of multiple water systems). Construction
began in April 2020 and was completed in September 2020. The original 12 small water systems were
decommissioned and no longer subject to Ohio EPA's monitoring and treatment requirements. Learn
more about the loan and regionalization project by reviewing the Limited Environmental Review for the
project.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Mansfield, Ohio - Ownership Transfer

Two water systems in in Mansfield, Ohio struggled with poor water quality, aging infrastructure, and an
aging workforce. A nearby water system, Madison Water District, known for helping other water
systems in the past, stepped in to provide support. A formal connection and ownership transfer of the
two struggling water systems to Madison Water District was funded through the WSRLA. When the
Madison Water District team applied for the loan, Ohio EPA immediately flagged the case based on their
priority rankings protocol for different types of projects. The project was viewed as urgent in order to
protect public health. To read the full in-depth case study on this water system partnership visit EPA's
Water System Partnership website.

For more information about
Ohio's Water Supply Revolving
Loan Account, visit:
http://epa.ohio.gov/ddagw/financ
ialassistance.aspx or contact Ohio
EPA's Division of Drinking and
Ground Water at (614) 644-2752.

Joint Economic Development
Districts

In Ohio, JEDDs provide a mechanism by
which municipalities and township can
cooperate to foster development
activities without modifications to
jurisdiction boundaries.

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Area Development Program

Figure 7. Outline Highlighting the

Appalachian Region.

Source: https://www.arc.gov/

The Appalachian Regional Commission (ARC) is an economic
development partnership agency of the federal government and 13
state governments focusing on 420 counties across the Appalachian
Region. ARC's Area Development program makes investments in two
general areas: 1) critical infrastructure, and 2) business and workforce
development. Critical infrastructure investments include water and
wastewater systems, transportation networks, and broadband. Within
Ohio, the program is administered by the State of Ohio, Governor's
Office of Appalachia (GOA), which represents the interests and serves as
an advocate for Ohio's 32 Appalachian counties to facilitate economic
and community development throughout the region.

PROCESS:

In Ohio, the Governor's Office develops priority projects for ARC funding through four Local
Development Districts (LDDs): Ohio Valley Regional Development Commission, Buckeye Hills Regional
Council, Ohio Mid-Eastern Governments Association, and Eastgate Regional Council of Governments.
Leveraging a bottom-up approach, each development district has a process for determining its own
priorities. Potential grantees should contact and work directly with staff from their LDD to develop
proposed projects. Potential grantees should also coordinate with the GOA while developing projects to
secure additional funding and technical assistance, when available.

Applicants submit pre-application and application forms to their LDD, where staff members and the
boards of the LDDs review, score, and rank applications to create a board-approved district funding
package. Projects are reviewed by staff from the ARC, the GOA, and the Ohio Office of Community
Development to develop annual state and federal investment packages.

ARC grants include matching requirements and are limited to 50 percent of project costs. For projects in
ARC-designated at-risk counties, this can be raised to 70 percent and for ARC-designated distressed
counties, this limit can be raised to 80 percent.

ELIGIBILITY:

Any entity, including multi-jurisdictional applicants, within the 32
Appalachian counties of Ohio is eligible. Interested applicants
should contact the LDD in their area.

For more information about ARC's
Area Development Program, visit:
https://www.arc.gov/grants-and-
contracts/ or contact ARC at (202)
884-7700.

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WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Muskingum County, Ohio-Joint Power Agency

In 2018, Muskingum County, Ohio announced a water service extension project to connect the Village of
Cannelville and nearby residences along Route 555 and Old River Road to ensure they could receive
reliable water service. Previously, these customers were utilizing private wells and springs that were
contaminated with iron from local mining activity. The project activities included horizontal drilling
under the Muskingum River, highway borings, construction and installation of 76,000 feet (over 14
miles) of water mains, hydrants, gate valves and service connections to serve approximately 300 homes
and businesses with 43,500 gallons of water per day from the Muskingum County water supply.
Additional information about the project is available in the Regional Review Plan Consistency
Certification.

The project will save nearly $3 million when
compared to a market rate loan. Muskingum
County was also able to leverage a $240,000 grant
from ARC, a $33,000 grant from the Housing and
Urban Development (HUD) Community
Development Block Grant (CDBG) program, $1
million from the U.S. Army Corps of Engineers, and
$450,000 from the County. Ohio EPA approved the
project for up to 75 percent principal forgiveness
with the remainder at zero percent interest for 30
years. Review this News Release from Ohio EPA for
additional details about project financing.

Figure 8. Muskingum River in Zanesville, Ohio. Toni Lei and,
CC BY-SA 4.0. via Wikimedia Commons

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Additional Partnerships Funding Resources in Ohio

Ohio EPA

Drinking Water Emergency Loan Fund (DWELF)

Provides emergency loans to owners or operators of PWSs for emergency remediation of a "threat of contamination"
defined as anything preventing the system from supplying adequate quantities of safe, potable water to users. Loans
are processed on a rolling, first come-first served basis. DWELF can finance up to $200,000, interest free, to systems.
Owners or operators of a single system can receive up to $25,000, which must be repaid within 12 months.

For more information visit: https://epa.ohio.gov/portals/28/documents/securitv/DWELF%20Revision%202017.pdf
Contact: Ohio EPA's Division of Drinking and Ground Waters (614) 644-2782

H20hio

An initiative to improve water quality. In July 2020, the Ohio General Assembly invested $172 million into a Water
Trust Fund. In 2020, $8,675 million that Ohio EPA received for water and wastewater infrastructure improvements
was used to leverage an additional $23 million. Loans are provided to infrastructure projects in disadvantaged
communities.

For more information visit: http://h2.ohio.gov/

Contact: Ohio EPA Community Infrastructure Initiatives (614) 644-3660

Great Lakes Community Action Partnerships

Rural Community Loan Fund (RCLF)

Provides loans for facility improvements (e.g., development and rehabilitation of water infrastructure) to stimulate
community development and increase access in low-income areas. Public organizations, public and private non-
profits, and private non-profits that serve a population less than 25,001 are eligible. Collateral is required and is
determined based on the particular project.

For more information visit: https://www.glcap.org/programs/communitv-rural-development/communitv-loan-fund/

Contact: Great Lakes Community Action Partnership (800) 775-9767

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Ohio Development Services Agency

Ohio CDBG Programs

Divided into two programs, 1) Residential Public Infrastructure Grant Program (RPIGP) which funds the provision of
safe and reliable drinking water, and 2) the Neighborhood Revitalization Grant Program (NRGP) which funds public
facility improvements such as construction, reconstruction, and rehabilitation of infrastructure in targeted areas of
distress.

	RPIGP projects must provide water service to a minimum of 60 percent residential users and can include on-
site improvements (e.g., service laterals, well abandonment, and other CDBG-eligible related fees). RPIGP
eligible applicants are non-entitlement counties, cities, and villages.

	NRGP funds are administered as a competitive set-aside to Ohio's Allocation Program (which gives
communities a resource to address CDBG-eligible needs).

For more information visit: https://www.development.ohio.eov/cs/cs edcerantee.htm and https://development.ohio.gov/cs/cs rpi.htm
Contact: Office of Community Development (614) 466-2285

Tax Increment Financing (TIF)

Allows local governments to finance public infrastructure improvements and, in certain circumstances, residential
rehabilitation. It locks in the taxable worth of a real property at its value and payments derived from the increased
assessed value go to the local jurisdiction's TIF funds. TIF funds can finance public infrastructure improvements,
including constructing water lines.

For more information visit: https://development.ohio.gov/bs/bs tif.htm
Contact: Office of Strategic Business Investments (614) 728-6778

Ohio Capital Access Program (OCAP)

A loan portfolio insurance program that provides varying loan terms for real estate, equipment, and working capital
or inventory. Jobs must be retained or created as a result of the loan. The maximum loan limits are $350,000 for fixed
asset financing and $250,000 for working capital financing. The interest rate and other terms and conditions are
decided by the lender and borrower.

For more information visit: https://www.development.ohio.gov/bs/bs ocap.htm
Contact: Minority Business Development Division (614) 644-7249

Ohio Public Works Commission

State Capital Improvement Program

This program is a voter-approved bond program that local governments apply to make needed improvements to
public infrastructure. Eligible applicants are counties, cities, villages, townships, and water and sanitary districts.
Eligible projects are for improvements to roads, bridges, culverts, water supply systems, wastewater systems, storm
water collection systems, and solid waste disposal facilities.

For more information visit: https://www.pwc.ohio.gov/Programs/AII-OPWC-Funding-Programs
Contact: Ohio Public Works Commission (614) 466-0880

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Pennsylvania - Funding Water System Partnerships

Pennsylvania has a number of resources available to support water system partnerships for water and
wastewater systems. The funding sources listed below do not represent all possible opportunities
available to fund water system partnerships in Pennsylvania and are meant to provide an overview and
sampling of the resources that water systems in Pennsylvania may consider when pursuing funding for
partnerships activities. The Pennsylvania Infrastructure Investment Authority, Department of
Community and Economic Development and the Pennsylvania Department of Environmental
Protection are the most prominent state agencies with some of the most popular water system funding
programs and can be very helpful resources in assisting water systems with developing project proposals
for funding water system partnerships.

Listed below are in-depth descriptions of two funding sources that have been used to support water
system partnerships in Pennsylvania. Each describes the application process, eligibility requirements,
and provides an example of how funding was utilized for a successful water system partnership.

Pennsylvania Infrastructure Investment Authority

The Pennsylvania Infrastructure Investment Authority (PENNVEST) oversees the administration and
financing of Pennsylvania's Drinking Water State Revolving Fund (DWSRF), Clean Water State Revolving
Fund (CWSRF), non-point source funds, as well as specialized programs for lead-service line replacement,
PFAS and green initiatives. PENNVEST provides low-interest loans and grants for new construction or for
improvement to publicly or privately-owned drinking water, stormwater or wastewater treatment
facilities, as well as non-point source pollution prevention best management practices. The maximum
funding available for any single project is $11 million or $20 million for a project that serves more than
one municipality. Loans in excess of $20 million
may be authorized by the PENNVEST Board of
Directors for comprehensive projects proposing
the consolidation of service for four or more
municipalities.

PROCESS:

PENNVEST releases detailed guidance every spring regarding the availability of program funding, how to
apply, and information on new priority initiatives. Information sessions are normally held in a public
meeting format. Prior presentations and information can be found here. Applicants may initiate an
application but will not be able to complete or submit the application until a consultation has been
completed and signed off by the Pennsylvania DEP and a PENNVEST Regional Project Specialist.

PENNVEST has developed a collection of webcasts and training resources available on how to use the
online funding application, settlement process and special federal requirements such as the Davis-Bacon
prevailing wage requirements.

ELIGIBILITY:

Any municipality, authority, or private entity that is an owner and/or
operator of a drinking water, wastewater, or non-point source
pollution prevention project is eligible under the PENNVEST program.

Eligible project activities include the costs associated with design,

PENNVEST

Mijj PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY

For more information about
PENNVEST, visit:
https://www.pennvest.pa.gov/
Pages/default.aspx.

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engineering, and construction of public or privately-owned drinking
water or wastewater systems, non-point source pollution mitigation
and storm water projects. Supplemental grants may be available on a
limited basis for water systems with residential user rates, or with
limited capacity to handle debt service. No separate application is
necessary. An analysis is performed on each submittal for grant
consideration.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Greene County, Pennsylvania

The Dunkard Valley Joint Municipal Authority (DVJMA) had a history of
difficulties in operating and managing their drinking water system. The
water system frequently experienced water outages due to water line
breaks; inconsistent water quality due to chemical application at the
water treatment plant; inability to meet chlorine contact time,
turbidity standards, and total organic carbon removal standards; and
also received notices of violations for monitoring and reporting. In
2018, the Southwestern Pennsylvania Water Authority (SPWA) received a ?10.5 million loan and a $5
million grant from PENNVEST through the DWSRF Program for the infrastructure to interconnect and
consolidate the assets of DVJMA into a single water system served by SPWA. In addition to funding from
PENNVEST, the project also received a $750,000 grant from the Pennsylvania Community Development
Block Grant (CDBG) program to make the project more affordable for customers.

Figure 9. SPWA water main extension
to DVJMA system.

Credit: Observer Reporter

The SPWA project includes the construction of a new 490,000-gallon water storage tank and installation
of over 118,000 feet of pipes to replace the aging infrastructure. The project reduced contaminant level
violations, water outages, boil water advisories and other supply concerns, alleviated operational and
managerial problems, and ensured a reliable source of water and fire protection for customers. Upon
completion, the SPWA added 500 customers from the DVJMA water system to its current 14,000
customers.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Indiana County, Pennsylvania - Contractual Assistance

Relying on private wells, five rural communities in Indiana County were troubled by a long history of
poor water quality and unreliable access to public water. In 2020, the Indiana County Municipal Services
Authority (ICMSA) received a $10.7 million grant and $1.4 million loan from PENNVEST through the
DWSRF to construct a water pipeline system from the Plumville and Crooked Creek Water Treatment
Plants to the member communities. The installation of a new water main interconnects the two water
treatment plants and the new customers. It delivers public water service and fire protection to 400
residential/commercial customers and over 1,000 residents. The project included major upgrades to
both the Plumville and Crooked Creek Water Treatment Plants as well as approximately 18 miles of new
water line.

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Additional Partnerships Funding Resources in Pennsylvania

PENNVEST

Pennsylvania DWSRF Program

Provides low interest loans with flexible terms to assist a variety of borrowers for construction, expansion and
maintenance of drinking water treatment plants, distribution mains, storage facilities, and improvements and
upgrades to water quality systems.

For more information visit: https://www.pennvest.pa.eov/lnformation/Fundine-Proerams/Paees/Drinkine-Water-State-Revolvine-Fund.aspx
Contact: Find your PENNVEST Reeional Project Specialist

Small Projects Initiative

Uses DWSRF funds to provide low interest loans to public or private entities implementing small projects in
communities serving less than 12,001 people or projects having less than 1,001 connections. Applicants can request
up to $500,000.

For more information visit: https://www.pennvest.pa.eov/lnformation/Fundine-Proerams/Paees/Small-Proiects.aspx
Contact: Find your PENNVEST Reeional Project Specialist

Credit Enhancement Assistance

Provides bond and/or loan guarantees for the repayment of third-party loans, bond issues or other types of financing
that qualified applicants may incur to finance eligible project costs. The bond or loan guarantee is typically 20 years.

For more information visit: https://www.pennvest.pa.eov/lnformation/Fundine-Proerams/Paees/Credit-Enhancement-Assistance.aspx
Contact: Find your PENNVEST Reeional Project Specialist

Programmatic Financing (Pro Fi) Guidance

Provides funding for Capital Improvement Plans (CIP), in entirety or in part, for a group of drinking water or
wastewater projects so long as each individual project or phase of projects is eligible and prepared in compliance with
program requirements. Applicants may be either public or private entities who are otherwise eligible for PENNVEST
programs. Eligible projects include those that are otherwise eligible for financing under the DWSRF and have an
approved CIP enacted by its governing body.

For more information visit: https://www.pennvest.pa.eov/lnformation/Fundine-Proerams/Paees/ProFi.aspx
Contact: Find your PENNVEST Reeional Project Specialist

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Department of Community and Economic Development

Pennsylvania CDBG Program

Provides grants and technical assistance to municipalities for community development activities including housing
rehabilitation, public services, community facilities, infrastructure improvement, development, and planning. Funding
is available to eligible applicants through 1) a federal entitlement program which provides annual funding to
designated municipalities or 2) a competitive program for all municipalities that are not direct federal recipients of
CDBG funds and Act 179 entitlement municipalities with a population less than 10,000. The competitive program has a
minimum request of $100,000 and has no ceiling limit.

For more information visit: https://dced.pa.eov/proerams/communitv-development-block-erant-cdbe/

Contact: Find your CDBG Grant Contact

Pennsylvania Industrial Development Authority (PIDA)

Provides low-interest loans and lines of credit to eligible applicants to finance a portion of eligible project costs. Loan
terms depend on the project type (e.g., up to 15 years for acquisitions and construction, up to 10 years for equipment
purchases).

For more information visit: https://dced.pa.eov/proerams/pennsvlvania-industrial-development-authoritv-pida/

Contact: The Department of Community & Economic Development at 866-466-3972 or contact your DCED Reeional Contact.

Pennsylvania Economic Development Financing Authority (PEDFA) Taxable Bond Program

Provides taxable bonds to finance land, building, equipment, working capital and refinancing. Eligible uses include land
and building acquisition, renovation, new construction, machinery and equipment acquisition and installation. All
businesses and projects needing access to low-cost capital are eligible. Facilities for the furnishing of water may be
eligible for tax-exempt financing. Loans must be at least $400,000 and may cover up to 100 percent of project costs.

For more information visit: https://dced.pa.eov/proerams/pennsvlvania-economic-development-financine-authoritv-pedfa-taxable-bond-
proeram/

Contact: The Department of Community & Economic Development at 866-466-3972 or contact your DCED Reeional Contact.

Pennsylvania First Program (PA First)

Facilitates increased investment and job creation by providing grants, loans, and loan guarantees to businesses,
municipalities, municipal authorities, redevelopment authorities, industrial development authorities or corporations,
and local development districts. Eligible uses include acquisition of buildings, job training, construction or
rehabilitation of buildings or infrastructure, and the purchase or upgrade of machinery and equipment.

For more information visit: https://dced.pa.eov/proerams/pennsvlvania-first-proeram-pa-first/

Contact: The Department of Community & Economic Development at 866-466-3972 or contact your DCED Reeional Contact.

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Department of Community and Economic Development

(continued)

PA Small Water and Sewer Program

Provides grants from small water, sewer, stormwater, and flood control infrastructure projects. Eligible uses include
construction, improvement, expansion, or rehabilitation projects that cost between $30,000 and $500,000.
Municipalities are eligible.

For more information visit: https://dced.pa.gov/programs/pa-small-water-sewer/

Contact: CFA Programs Division, PA Small Water and Sewer Program or (717) 787-6245 or reach out to your DCED Regional Contact.

Infrastructure and Facilities Improvement Program (IFIP)

Provides grants to issuers of debt up to $1 million. Eligible project costs include water supply facilities.

For more information visit: https://dced.pa.gov/programs/infrastructure-and-facilities-improvement-program-ifip/

Contact: Center for Business Financing, PA Infrastructure and facilities Improvement Program (717) 787-6245 or reach out to your DCED

Regional Contact.

Commonwealth Financing Authority H20 PA Water and Sewer Program

The H20 PA Act provides single- and multi-year grants to municipalities or municipal authorities to assist with the
construction of drinking water, sanitary sewer, and storm sewer projects. Approved projects include water system
interconnections, improvements, upgrades, and expansions; water main extensions and replacements; and water
quality improvements.

For more information visit: https://dced.pa.gov/programs-funding/commonwealth-financing-authoritv-cfa/h20-pa/

Contact: Find your DCED Regional Contact or (866) 466-3972

Pennsylvania DEP

Professional Engineering Services Program

Offers free professional engineering assistance to small and medium-sized (serving <10,001 people) public community
and non-profit non-community water systems. Approved projects include investigations to determine the cause of
system technical issues, feasibility studies, design work, construction and operational permit applications, preparation
of funding applications, and construction bid preparation/construction contractor procurement assistance. This
assistance is funded via the DWSRF set-asides.

For more information visit: https://www.dep.pa.gov/Business/Water/BureauSafeDrinkingWater/Pages/Professional-Engineering-Services-
Program.aspx

Contact: the local Capability Enhancement Facilitator in your area.

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Washington - Funding Water System Partnerships

Washington has several resources available to support water system partnerships for drinking water
systems. The funding sources listed below do not represent all possible opportunities available to fund
water system partnerships but are instead to serve as a sample of funding sources. The State of
Washington administers and implements popular funding programs, such as the Drinking Water State
Revolving Fund (DWSRF) and Community Development Block Grant (CDBG) programs made available
through federal funding sources. In addition, the State of Washington facilitates some unique funding
programs through the state's Department of Commerce designed to spur economic growth and
development through activities, including water infrastructure planning and development.

Listed below is an in-depth description of a funding source in Washington that has been used to support
water system partnerships. The descriptions provided below explain the application process, eligibility
requirements, and provides an example of how funding was utilized for a successful water system
partnership.

DWSRF Construction Loans

The State of Washington Department of Health offers loans through the DWSRF to support investments
in infrastructure such as pre-construction and construction loans for drinking water systems.

As of September 2020, approximately $35 million in funding was available from the DWSRF Program.
The program provides a $5 million limit per jurisdiction for 20-year loan terms at 1.75 percent interest
rate. Additional subsidy of up to 50 percent is available if the project is a consolidation project or if the
project meets certain criteria, such as the affordability index, which is a ratio of the average monthly
water rate to monthly medium household income. If the affordability index is greater than 2 percent,
the applicant can receive additional subsidy. Projects receiving the additional subsidy, can pursue a 30-
year loan with an interest rate of 1.25 percent.

PROCESS:

The funding application period begins October 1st and ends November 30th. Applications will be
reviewed between December 1st and January 31st. Applicants are notified of funding status in February.
Project scopes are developed between March and May with contracts executed and funding available in
July.

Once a project is determined to be eligible for funding, a technical evaluation and review is performed
to score and prioritize the projects. Priority is given to projects that address severe public health threats
and compliance issues. An application receives points based on the following risk categories:

	Category 1: Eliminates a documented microbial
contamination.

	Category 2: Eliminates primary inorganic chemical
contamination or addresses water shortages.

	Category 3: Eliminates other primary chemical risk,
addresses sanitary survey deficiency, disinfection
installation, lead component removal or replacement,
receiverships, or EPA chemical Health Advisory (HA).

For more information about
Washington's DWSRF Program, visit:
https://www.doh.wa.gov/community
andenvironment/drinkingwater/wate
rsystemassistance/drinkingwaterstat
erevolvingfunddwsrf or contact the
DWSRF team at dwsrfffidoh.wa.gov.

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	Category 4: Addresses a secondary MCL, resiliency, seawater intrusion risk, sanitary survey
significant finding, 80 percent of nitrate or arsenic MCL, or a restricting or consolidation project.

	Category 5: the proposed project must include components for infrastructure sustainability.

Bonus points are awarded to projects that address the following:

	Compliance: The project meets documented compliance requirements.

	Restructuring or consolidation benefit: The project restructures (eliminates) one or more water
systems.

	Regional benefit: The project benefits more than one water system.

	Asset management: The water system has attended an asset management training or has an
asset inventory.

Consolidation projects are ranked based on compliance issues within the past five years. A proposed
consolidation project must provide signed transfer agreements at the time of application. If the
applicant does not have an existing asset management program, the development of an asset
management program will be included as a part of the scope of work to cover resources such as
purchase of software and professional services. A full presentation and additional information on the
DWSRF Program can be found here.

ELIGIBILITY:

Eligible applicants include private and publicly-owned community water systems and not-for-profit non-
community water systems. Tribal water systems are eligible if the project is not receiving funding from
the Drinking Water Infrastructure Grants Tribal Set-Aside (DWIG-TSA). Eligible projects include drinking
water system infrastructure projects aimed at increasing public health protection. Principal forgiveness
may be available for communities with high affordability index numbers and water system
restructuring/consolidation projects.

To be eligible to apply and receive funding, applicants much have approved planning documents that
are current through the period of submission or have submitted a planning document for review by the
regional office. Applicants must include meeting minutes with applicant that show governing body
approved submittal of the application for the proposed project and the estimated amount of funding.
More information on eligible applicants can be found here.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

City of Vaderand Lewis County - Ownership Transfer

The City of Vader in Lewis County, Washington operated an outdated water system that experienced
frequent system-wide water outages. The City of Vader experienced a series of 17 main breaks between
2006 and 2010 that resulted in ten boil water advisories issued by the Washington State Department of
Health (DOH). The City of Vader also lacked the financial and managerial capacity needed to operate the
water system. In 2010, the DOH began conversing with a nearby water system, Lewis County, to discuss
options and develop a plan to assist the troubled water system. In 2011, Lewis County took over full
operations and management of the City of Vader's water system and completed the legal transfer of
water assets from the city to the county in 2014.

In 2011, Lewis County obtained a $715,675 DWSRF loan and $613,000 in CDBG funds to help finance
improvements. The project included replacing 6,000 feet of 2-inch and 6-inch water mains with new 4-
to 8-inch mains, as well as valves, meters and hydrants. The installation of approximately 245 service
meters with automation technology enables Lewis County to reduce non-revenue water losses. As of

Q

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2015, Lewis County provided drinking services to a population of approximately 843 people through 347
service connections, according to the Vader-Enchanted Valley Water System Plan. In 2019, Lewis County
announced updates to their utility fee and rate structure with modest rate increases to support the
continued operations and maintenance of the Vader Water System.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Jefferson County Public Utility District, Washington - Ownership Transfer

In 2010, the Jefferson County Public Utility District (PUD) #1 received a DWSRF loan for $1.6 million to
assist a smaller water system struggling with regulatory requirements. Jefferson County PUD's Local
Utility District #3 (LUD #3) had been receiving unfiltered surface water from the City of Port Townsend.
When Port Townsend decided to build a treatment plant to meet regulatory requirements for their
unfiltered surface water, LUD #3 avoided the expense by utilizing the DWSRF loan to switch to a
groundwater source, constructing a new well and treatment plant at their Sparling Wellfield.

In 2012, Jefferson County PUD then obtained a second DWSRF loan for $1.1 million to upgrade a
privately-owned utility, Kala Point, and to consolidate both Kala Point and LUD #3 into its Quimper
Water System. The loan funded the water system interconnections, valve and meter installations, and
replacement of Kala Point's treatment system with an iron and manganese removal system.

In 2013, Jefferson County PUD received a third DWSRF loan for $843,350 to finish the well and
treatment plant construction project at the Sparling Wellfield that started in 2010. Today, the Quimper
Water System is composed exclusively of groundwater sources from multiple wells, including the newly
developed well at the Sparling Wellfield, which provides most of the water to the larger water system.
The well field and associated treatment infrastructure now produce over 1,000 gallons per minute
during peak service and served 3,646 active service connections in 2019. Additional information on the
Quimper Water System and Jefferson County PUD can be found in water system planning presentations
available here.

Q

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Additional Partnerships Funding Resources in Washington

Washington State Department of Health

Washington DWSRF Pre-construction Loans

In addition to loans and grants for construction projects, the State of Washington also provides loans for pre-
construction activities. Pre-construction Loans are available from the DWSRF Program for eligible applicants including
CWSs (publicly owned and privately owned), nonprofit non-community water systems, and tribal water systems not
receiving DWIG-TSA funding. Projects may include consolidation feasibility studies, planning documents, permitting,
cultural and environmental reviews, preliminary engineering design reports, construction documents, asset
management, and project alternatives analyses.

For more information visit:

https://www.doh.wa.gov/CommunitvandEnvironment/DrinkingWater/WaterSvstemAssistance/DrinkingWaterStateRevolvingFundDWSRF
Contact: dwsrf@doh.wa.gov

Washington State Department of Commerce

Washington CDBG Program

Funding is made available annually through a competitive application process to assist small cities, towns and
counties in Washington State with carrying out significant community and economic development projects that
principally benefit low- and moderate-income persons. Eligible activities for water system partnerships include public
facilities, such as water and wastewater systems. Eligible applicants are cities and towns in Washington State with a
population less than 50,000 or counties with a population less than 200,000. The maximum funding for construction
projects is $900,000 and for planning projects is $30,000.

For more information visit: https://www.commerce.wa.gov/serving-communities/communitv-development-block-grants/

Contact: Reach out to your local CDBG contact at https://www.hud.gov/states/washington/communitv/cdbg or contact the Washington State

Department of Commerce, Main Office at (360) 725-4000

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Washington State Department of Commerce (continued)

Community Economic Revitalization Board (CERB) - Committed Private Partner (CPP)
Program

Provides loans and grants for construction of public infrastructure necessary for private business expansion and
requires a private business commitment as part of the application. Eligible applicants may include cities and towns,
counties, federally recognized Indian tribes, municipal corporations, public port districts, quasi-municipal corporations
and special purpose districts. Eligible activities include the planning, acquisition, construction, repair, reconstruction,
replacement, rehabilitation, or improvement of domestic and industrial water systems, sanitary sewer, and
stormwater systems. CERB offers loans of $3 million maximum per project and grants are available for up to 25% of
the total award.

For more information visit: https://www.commerce.wa.gov/building-infrastructure/communitv-economic-revitalization-board/cerb-committed-
private-partner-program/

Contact: Reach out to the Washington State Department of Commerce, Main Office at (360) 725-4000

Community Economic Revitalization Board (CERB) - Planning Program

Provides limited grant funding for studies to evaluate high-priority economic development projects and rural
broadband projects. Projects should target job growth and long-term economic prosperity. Eligible activities include
economic feasibility, environmental impacts, capital facilities, land use, permitting, marketing, project engineering,
and site planning. Eligible applicants include cities and towns, counties, federally recognized Indian tribes, municipal
corporations, quasi-municipal corporations, public port districts, and special purpose districts. CERB offers grants for
planning projects up to 80% of the total project cost, not to exceed $50,000. The applicant must match CERB's
funding with at least 20% of the total project cost, in cash.

For more information visit: https://www.commerce.wa.gov/building-infrastructure/communitv-economic-revitalization-board/cerb-planning-
program/

Contact: Reach out to the Washington State Department of Commerce, Main Office at (360) 725-4000.

Public Works Board Construction Loan Program

Offers funding through their Construction Program for new construction, replacement, and repair of existing
infrastructure for domestic water systems, sanitary sewer, and stormwater. Eligible applicants include cities, counties,
special purpose districts, and quasi-municipal organizations. Funding cycles run from May to July.

For more information visit: https://www.commerce.wa.gov/building-infrastructure/pwb-financing/

Contact: Reach out to the Washington State Department of Commerce, Main Office at (360) 725-4000.

Public Works Board Pre-construction Loan Program

Offers funding that includes but is not limited to activities such as design engineering, bid-document preparation,
environmental studies, right-of-way acquisition, value planning, permits, cultural and historic resources, and public
notification. Eligible applicants include cities, counties, special purpose districts and quasi-municipal organizations.
Funding cycles run from May to July.

For more information visit: https://www.commerce.wa.gov/building-infrastructure/pwb-financing/

Contact: Reach out to the Washington State Department of Commerce, Main Office at (360) 725-4000.

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West Virginia - Funding Water System Partnerships

West Virginia also offers funding for water system partnerships. The West Virginia Water Development
Authority (WDA) administers the state's water system financing programs including those programs
that can fund partnerships activities. WDA is the administrative agency for West Virginia's Infrastructure
and Jobs Development Council (IJDC), which is West Virginia's funding clearinghouse for water system
projects. The water system financing programs are each funded through water development bonds and
loans are awarded to Local Government Agencies (e.g., municipalities, public service districts). Two of
these programs are discussed below. They are not representative of all possible opportunities available
to fund water system partnerships in West Virginia but represent some of the resources water systems
in West Virginia may consider when pursuing funding for partnerships activities.

The West Virginia Rural Water Association (WVRWA) provides training and technical assistance to
community water systems in rural areas of West Virginia. With over 550 members from water systems,
companies, and individuals, WVRWA aims to support water systems' goals and connect water systems
to each other. WVRWA offers on-site technical assistance to water systems, and also has an Appalachian
Regional Commission (ARC) Specialist. The ARC is a federal-state partnership that supports economic
and community development programs in the Appalachian region. The ARC Specialist provides training,
financial, and managerial assistance to water systems and they can also help water systems develop
asset management plans, loan portfolios, and conduct rate analyses.

In-depth descriptions of two funding sources that can support water system partnerships in West
Virginia are listed below. Each summary describes the application process and eligibility requirements.
There are also examples of how water systems used the highlighted funding sources to fund projects for
their communities.

Drinking Water Treatment Revolving Fund

The Drinking Water Treatment Revolving Fund (DWTRF) is West
Virginia's Drinking Water State Revolving Fund Program. This program
helps public water systems finance infrastructure costs to comply with
the Safe Drinking Water Act (SDWA) and provide safe drinking water
to the public. The program makes no-interest and low-interest rate
loans available to local governments. The funds are managed by the
WDA and administered by the West Virginia Department of Health and
Human Resources Bureau for Public Health (BPH).

PROCESS:

The project sponsor must first submit an application to the IJDC for review. If the application is approved
by IJDC, then it is submitted to the BPH, to score and rank the projects using a set of criteria which
includes the project's potential to improve public health, potential to correct non-compliance, and
affordability. Then, BPH develops a project priority list and issues it for public comment before
contacting the water systems to discuss their project status and whether DWTRF funding is appropriate.

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Typically the project's stakeholders then meet to develop a binding
commitment and proposed schedule. DWTRF engineers then conduct
an environmental review and the project team completes a pre-bid
checklist. Bids are evaluated and additional funding needs are
identified. The project will then be approved and construction can
begin with periodic site inspections. Once construction is complete,
the water system will begin to make payments to repay the loan. Non-
disadvantaged water systems are eligible for a 2.75% loan interest rate
over a 20-year loan term, and disadvantaged water systems are eligible for principal forgiveness over a
30-year loan term.

ELIGIBILITY:

DWTRF funds are available to public water systems for infrastructure improvements that help comply
with SDWA standards. This can include water treatment plant upgrades, storage and distribution
upgrades, and extensions of current water systems as well as project design development.

Once approved, loan recipients must also develop and implement an asset management plan to help
sustain the longevity of their water system.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

Eastern Wyoming Public Service District - Joint Power Agency

When coal mining operations in southeast West Virginia began leaving the area in the latter half of the
twentieth century, water systems struggled to maintain operations. In Wyoming County, 15 water
systems struggled with microbiological contamination, inadequate raw water treatment, poor
disinfection, service irregularities, and aging distribution systems. Rates did not cover operating costs
and unpaid bills created financial shortfalls that prevented the water systems from updating their
infrastructure.

In the early 2000s, the 15 water systems consolidated through physical interconnections, forming the
Eastern Wyoming Public Service District (EWPSD). The DWTRF provided $3.5 million in funding to help
build the physical interconnection between the water systems and construct a regional water treatment
plant that serves the area's 6,500 residents.

Approximately 15 years later, EWPSD applied to the DWTRF again to fund a waterline extension project
to extend drinking water services to Beartown, Herndon Heights, and the surrounding areas. These
areas were experiencing poor water quality due to lingering impacts from former coal mining operations
as well. The project involved the construction of almost 135,000 feet of water mains, two new water
storage tanks, a booster station, and other appurtenances. The project, estimated to cost $10 million,
was approved in 2016 and construction began in 2018. The project was first funded by a DWTRF grant of
$500,000 and DWTRF loan of $3.5 million at 2% interest for a 30-year term, in addition to an Abandoned
Mine Lands and Reclamation Program grant of $5.3 million. In July 2021, the IJDC announced that the
Wyoming County Commission had committed $681,819 from American Rescue Plan Act (ARPA) Grant
funds and $172,8279 in Abandoned Mine Lands and Reclamation Grant Program funds to help address
cost overruns and enable the project to close. The project will help provide safe drinking water to its
additional community members.

W

For more information about the
DWTRF, visit:

http://www.wvdhhr.org/oehs/eed
/iandcd/DWTRF.asp or contact
Stephanie Hickerson, Associate
Engineer at

stephanie.d.hickersonffi wv.gov.

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West Virginia Infrastructure Fund

The WDA is the fiduciary for the West Virginia Infrastructure Fund (WVIF) and the IJDC is responsible for
directing the WDA for dispersion of WVIF loans. WVIF loans are available for eligible projects to develop
water and wastewater infrastructure.

PROCESS:

Candidates must apply to the IJDC for a WVIF loan. First, applicants must define the scope of the project.
They must then hire an IJDC-certified project administrator, engineer, and accountant to complete the
project initiation form. After the form is submitted, it is reviewed
by the IJDC, and if accepted, the project administrator, engineer,
and accountant complete a three-part application. IJDC's staff,

Technical Review Committee, and Funding Committee review
projects for feasibility and then instruct the WDA to issue loans for
projects. The IJDC Council reviews and awards projects on a
monthly basis. If approved, the project administrator completes a
funding decision form to accept the funding. Then, the project
steps can proceed. Generally, all funds are disbursed at the loan
closing.

ELIGIBILITY:

Water system infrastructure projects that are eligible for low-interest loans through the WVIF include
engineering studies, design, construction, inspection, and related soft costs. A preliminary engineering
report must accompany all project applications with a description of the project scope, needs, schedule,
and benefits to public health.

WATER SYSTEM PARTNERSHIP HIGHLIGHT:

City of Sistersville/Tyler County Public Service District - Contractual Assistance

In 2014, the City of Sistersville (approximate population of 1,600) was experiencing a failing water
treatment plant due to its age. One year later, the City raised concerns about the dependability of the
Ohio River as their water source, given its blue-green algae issues. A few years later, their water pump
began failing. The City wanted to form a water purchasing agreement with the nearby Tyler County
Public Service District located in the Town of Friendly (approximate population of 125) to address these
issues, but it lacked the necessary funds to do so.

Fortunately, the City of Sistersville secured a WVIF loan from the IJDC to connect to the Tyler County
Public Service District. Their application was approved in 2018 and construction began in 2020. The City
purchased an empty lot for $10,000 for the new booster station and will install new 8-inch water lines to
draw water five miles away from the Tyler County Public Service District and pump it into the City at a
rate of nearly 200,000 gallons of water per day. The total cost of the project is expected to be $4.5
million. This includes the cost to connect (approximately $2 million) and the cost to repair the City's
existing water lines (over $1 million).

For more information about the
WVIF, visit:

http://www.wvinfrastructure.com
/pc/getting-started.php or contact
Wayne Morgan, PE, Executive
Director of the IJDC at
wmorgan (Swvwda.org.

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There are plans to drill a new groundwater well in the Town of
Friendly to help supply the additional quantity of water needed for
the new drinking water customers and the City of Sistersville's
Water Plant will eventually be decommissioned. The loan will be
paid back to the IJDC over a 30-year period. Bill Rice, the Mayor of
Sistersville, stated in a 2020 interview that he expects the project
will lead to long-term cost savings for the City without immediately

requiring an increase in consumers' water rates.

Figure 10. Installing water lines in the

City of Sistersville. Source:
https://www.tvlerstarnews.eom/news/l
ocal-news/2020/12/09/new-water-
lines-beina-installed-in-sistersville/

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Additional Partnerships Funding Resources in West Virginia

Department of Environmental Protection

Abandoned Mine Lands and Reclamation Pilot Program

Provides funds to projects that are on or next to priority abandoned coal mine lands. Eligible projects may include the
construction, repair, or installation of water system infrastructure or the enhancement of water system capacity. The
program considers the area's economic needs when reviewing project applications.

For more information visit: https://dep.wv.eov/dlr/aml/Paees/AML-Pilot-Proeram.aspx
Contact: Travis.G.Parsons(5)wv.eov

Abandoned Mine Lands and Reclamation Waterline Program

Provides funds to projects whose water supply is impacted by abandoned coal mines. Eligible projects may include
waterline extension or replacement, and construction of a new water system. The program considers the area's
economic needs when reviewing project applications.

For more information visit: https://dep.wv.eov/dlr/aml/Paees/Waterlines-ApplicationForAssistance.aspx
Contact: Roberta.G.Vanness(5)wv.eov

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Summary

The state-level funding summaries and project highlights included in this Water System Partnerships
Funding Resources document are just a sample of national, regional, and state-specific funding
resources that can, and have been, used to fund water system partnerships. Use these examples to help
research funding resources in your state and to increase awareness of funding mechanisms used by
water systems in other states. State programs can also use these examples as references for how other
states have successfully set up various programs to help fund water system partnerships activities.
Review the Water System Partnerships Getting Started Guide to assess your current stage in the water
system partnerships planning process, review next steps, and learn how to plan for and apply for
funding.

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