1. Eligible Uses of DWSRF Set Asides Chuck Kanetsky R3 States Meeting June 2011

2. 10% State Program Management (S.1452 (g)(2)) Public Water System Supervision Programs Administer or provide technical assistance (not enforcement actions) through Source Water Protection Programs To develop and implement a capacity development strategy Operator Certification Programs

3. 15% Local Assistance & WHP (S. 1452(k)(1)) Provide loans for systems to acquire lands or easements Implement voluntary incentive-based mechanisms for the purposes of SWP (CWS only) Provide assistance to systems (technical and financial) as part of a capacity development strategy Provide funding to establish and implement WHP

4. Water Supply Planning Activities related to State-wide or regional water supply planning and sustainable infrastructure are eligible for funding under both Set Asides. Development and implementation of SWP Programs are also eligible in the capacity development context.

5. Promote Capacity Development Assist systems in planning and adapting to the effects of change on their infrastructure and water resources Ensure their capacity to provide safe and affordable drinking water Help ensure adequacy of source water, both quantity and quality, as an essential element of water systems, technical capacity

6. 10% State Program Set Aside Uses Staff and expenses associated with area wide planning efforts Assessing the impacts of and planning area wide uncertainties, i.e. shortages Developing and administering a sustainable infrastructure program Regional studies or planning efforts for the ongoing implementation of the States capacity development strategy

7. 15% State Program Set Aside Uses Water quantity Source water protection Infrastructure planning System management Asset management Operational optimization Water rates Financial planning Contingency planning Workforce planning Emergency response planning Customer education Wellhead Protection

8. Limitations Ineligibility of monitoring, operation and maintenance expenses for loans or under the 10% State Program Set aside under 1452(a)(2) Expenditures under the 15% Local Assistance set aside are NOT subject to the 1452(a)(2) limitation just mentioned, but such expenditure must nonetheless be fully consistent with the specific purposes for which the set aside is authorized (capacity development strategy)