Dat Tran, P.E., Chief Drinking Water Technical Assistance Program 1

* Obtain public input on Drinking Water Program * Provide information on Program 2 of 17

* Application Process * Eligible Projects * Eligible Applicants * Funding Limits – Set by Chapter 5 * Proposed Grant Allocation * Loans * Prioritization of Projects * Next Steps 3 of 17

* DWSRF Application * Applications submitted via Financial Assistance Application and Submittal Tool (FAAST) * All DWSRF requirements apply 4 of 17

* Public water system infrastructure improvements and related actions to meet safe drinking water standards * Planning Projects 5 of 17

* Public Agencies * Non-profit organizations * Public utilities * Federally recognized Indian tribes * State Indian tribes * Mutual water companies 6 of 17

* $260 million allocated for Program * Up to $5 million grant per project * Up to $20 million grant per project that provides regional benefits, at least one shall be small disadvantaged community 7 of 17

* Grant amounts based on Table 1 (See next slide) * 100% Grant for SDAC, schools, and economically distressed areas * $25,000 per service connection maximum or Board Approval * 50,000 per service connection maximum for regional projects 8 of 17

9 of 17 Table 1 – Proposed Local Cost Share Requirements

* Extremely low interest loans available * Interest rate at ½ GO Bond Rate (2015 Interest rate is 1.663%) * Maximum 30 year term 10 of 17

* Small Community Water System in DAC * Shared solutions for multiple communities * DWSRF Categories * Readiness to proceed 11 of 17

ABC Water Company’s service area has 150 service connections, a MHI of $48,000 and water rates of $81 per month. The proposed project cost is $6 million. How much grant are they eligible for? Step 1: Are they a DAC? MHI is less than $48,875 so yes they are a DAC. Step 2: Are they a SDAC? MHI is more than $36,656 so they are not a SDAC. 12 of 17

ABC Water Company’s service area has 150 service connections, a MHI of $48,000 and water rates of $81 per month. The proposed project cost is $6 million. How much grant are they eligible for? Step 3- What is the water rate as a percentage of MHI? = Monthly Water Bill X 12 = $81 per month X 12 Service Area MHI $48,000 = X 100 = 2.025% 13 of 17

ABC Water Company’s service area has 150 service connections, a MHI of $48,000 and water rates of $81 per month. The proposed project cost is $6 million. How much grant are they eligible for? Step 4 – Go to Chart DAC, Water Rate is 2.025% of MHI is eligible for Up to 70% grant, not to exceed $25,000 per connection =0.70 X $6 million = $4,200,000 Step 5- Check against connection cap = $25,000 X 150 connections = $3,750,000 Project is eligible for $3.75 million grant and $2.25 million in loan 14 of 17 Affordability CriteriaGrant Amount Water Rate as Percent of MHI 1 Percentage of Total Project Cost 2 Maximum Grant Amount ($ million) 3 Approximat e Monthly Water Bill Based on 2015 State MHI Data 4 DAC WMHI < 1.5% Loan or Raise Rates to ≥ 1.5% 1.5 ≤ WMHI < 2 65%5$61 2 ≤ WMHI < %5$81 WMHI ≥ 2.5% 80%5$102 SDAC NA 100%5NA 1 Public Schools for which water rates are not charged, the Division may approve 100% grant up to a maximum of $5 million. 2 Remainder of Project Cost will can be a Drinking Water Loan or other non-state water board grant. 3 A maximum grant amount of $5 million per project, or $20 million per regional project where at least one entity is a DAC. 4 These approximations were based on 2015 MHI amounts of $48,875 to qualify as a DAC and $36,656 to qualify as a SDAC. Applicants will use the MHI for their service area to calculate % of water rate to MHI.

* Local Cost Share Requirements - What do you think about percentages presented in Table 1? - 100% grant for SDACs, schools and economically distressed areas? - Other comments or questions? * Per service connection caps $25,000 and $50,000 for regional projects - What do you think of limits? - Should the caps be higher or lower? - Other comments or questions? * Regional projects - Should regional project involve 3 or more water systems? 15 of 17

* Take Feedback and Insert Requirements into IUP- April 2015 * Draft IUP Posted on Website – May 2015 * Public Meetings – June 2015 * Final IUP Adopted – August 2015 * Application Solicitation - Ongoing 16 of 17

For more information please contact: Brian Kinney, P.E. (916) Jennifer Toney, P.E. (916) Dat Tran, P.E. (916) of 17