1. MassDEP Municipal Services
Drinking Water State Revolving Fund Ashraf Gabour Program Manager CERO/SERO

2. Jointly Administered MassDEP Water Pollution Abatement Trust
Sue Perez
Nate Keenan
Heather Saxelby O’Donnell
MassDEP
Steven McCurdy
Joe Delaney
John Felix

3. DWSRF Purpose
The Safe Drinking Water Act,as amended in 1996, established the Drinking Water State Revolving Fund to make funds available to drinking water systems to finance infrastructure improvements.
App. $80 Million in financing offered to communities yearly.

4. Traditional DWSRF projects
Water Treatment Plant improvements
Distribution System improvements
Water Storage facilities
NOTE: DWSRF is a financing source, not a regulatory program. If a project is permissible under statutes or regulations, it can be financed with DWSRF.

5. Non-traditional DWSRF projects
Energy efficiency within system
Renewable Energy at WTF
Water System Planning
NOTE:
DWSRF is principally concerned with public health, but CWSRF can finance any water quality improvement project. CWSRF is therefore often a better solution for issues like recharge, stormwater management, etc.

6. DWRSF Schedule Two year time line
Project Evaluation Form (PEF): August
Projects are ranked by Mass DEP: Fall 2014
Mass DEP publishes Intended Use Plan (IUP): March, 2015
Local Authorization (Town Meeting/City Council): June 30, 2015
Submitting Loan Application to DEP: October 15, 2015
Project Approval Certificate (PAC) MassDEP: December 30, 2015
Commence of Construction: June 30, 2016

8. Ranking of Projects (PEF)
Description
Tier 1
Projects that are proposing to correct a serious existing problem with the water supply or addresses water supply issues that are showing evidence of becoming serious and will likely exceed a standard or compromise the use of a water supply if not corrected. Exceedance of an MCL, TT, MRDL, Action Level, and/or MassDEP ORSG Level.
Tier 2
Projects that are being undertaken to prevent a potential serious threat to a major water system component.
Tier 3
Projects are those undertaken to address exceedances of Secondary Maximum Contaminant Levels (SMCL) that compromise the potability of a water supply.
Tier 4
Projects that are proposing to upgrade/rehab/replace water supply infrastructure components that are approaching or have passed their planned useful life-cycle
Tier 5
Infrastructure components that have an indirect connection to providing safe drinking water (fencing, meters, etc.)

9. Why Borrow From the Trust
Benefits of Using the Trust
2% Loan vs Market Rate
What does the 2% rate mean for your community?
On an average $5m loan the community would save $738,144 over the life of the loan (using current market rates)
Equates to a 40% interest subsidy
Savings generated through economy of scale
Underwriters fees
FA fees
Bond Counsel fees

10. Loan Terms and Fees Clean Water Drinking Water Interim Loan Loan Rate
2% (20 Years)
Calculated (30Years)* 2%
½ MMDT Rate (0.10%)
Max. Term
30 years
20 years
1 year
Admin Fee
0.15%
N/A
Effective Loan rate
2.15% (20 Years)
2.15%
Origination Fee (one-time)
Approx. $7.50/$1,000**
Approx. $7.50/$1,000
$500-$1,000
* Rate calculated at time of bond sale, estimated between %
** To be determined at time of bond sale to offset costs

11. Borrower Loan Application
Due to MassDEP October 15, 2015
Loan Application has three parts
Applicant Information - Authorized Representative, Local Appropriation etc.
Project Requirements - Plans and Specifications, Cost, Schedule, etc.
Supplemental Requirements - Permits, Planning, Professional Services Agreement, etc.

12. Application Requirements
Certificate of Title
MEPA
Historic Preservation
Conservation Commission
Flood Insurance
DW Permits

13. MassDEP Project Approval Certificate (PAC)
PAC Issued by MassDEP to the MWPAT
A copy is sent to Community
PAC certifies project eligibility, costs, and lists conditions

14. Before bidding, MassDEP must give “Permission to Advertise”
Bid Specs/Contracts must be approved by MassDEP
MassDEP Civil Rights Section reviews and approves DBE participation
MassDEP reviews bid results and issues “Authorization to Award”

15. MassDEP Project Regulatory Agreement (PRA)
Contract between MassDEP and Borrower
Establishes MassDEP control over project
Outlines project eligibility and funding
Establishes disbursement procedures
Loan closeout process
Legal requirements of Borrower
Discusses project defaults and how to remedy

16. Disbursements
Proceeds of the loan are generally disbursed to the community monthly
“Payment Requisition” is completed by the community and forwarded to MassDEP with the appropriate documentation
MassDEP reviews the request and approves eligible costs
MassDEP forwards the request to the MWPAT
MWPAT wires to borrower every Thursday with funds often available the next day

17. DWSRF Contact information
Financial
Sue Perez x816
Nate Keenan x508
Heather Saxelby O’Donnell x584
Program
Steve McCurdy
Joe Delaney
John Felix
Ashraf Gabour