American R Recovery and d Reinvestment Act of Reinvestment Act - - PowerPoint PPT Presentation

American R d Recovery and Reinvestment Act of Reinvestment Act of 2009 “ARRA” ARRA

1 Preliminary Staff Level Discussion Document 2/26/2009

ARRA

Participants in the Webinar today will include a variety of Illinois Environmental Protection Agency (IEPA) staff representing the Infrastructure Financial Assistance Section the Water Pollution Control Division and the Section, the Water Pollution Control Division and the Public Water Supply Division. Key contact information will be provided later in the Webcast. The target audience includes municipalities and other local e ta get aud e ce c udes u c pa t es a d ot e

• ca

governments, the consulting community, IEPA and USEPA Regional Staff, State Associations and other interested parties. O i t t i t i k i i i l d d i th Our intent is to summarize key provisions included in the recently enacted American Recovery and Reinvestment Act of 2009 (ARRA), and to detail the IEPA’s intended approach in distributing resources for Clean Water and pp g Drinking Water infrastructure provided by the ARRA.

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AGENDA

1.

The ARRA: Introduction and Overview

2.

Program Eligibility

3

P I l t ti

3.

Program Implementation

4.

Program Guidance

5.

Questions and Answers

5

Quest o s a d s e s

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Procedures

The IEPA will walk through this PowerPoint presentation, which we anticipate will last approximately thirty minutes. A Question and Answer session will be conducted A Question and Answer session will be conducted following the presentation. Questions will be answered to the best of our abilities in the order in which they are received received. All conference phones should be muted during the presentation and to the greatest extent possible during the follow-up question and answer session. Questions will be received via e-mail with phone participation only for clarification purposes.

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Questions

Please direct your questions via e-mail to: hi l d @illi i Q ti ill b d t shirley.durr@illinois.gov. Questions will be answered to the best of our abilities in the order in which they are received. Questions can be forwarded at any time during the Webcast.

Preliminary Staff Level Discussion Document 5

Introduction and Overview

The ARRA provides significant funding for Clean Water and Drinking Water infrastructure projects, with $4 billion approved for the Clean Water State Revolving Fund approved for the Clean Water State Revolving Fund (CWSRF) and $2 billion approved for the Drinking Water State Revolving Fund (DWSRF). Illinois will realize funding totaling approximately $180 Illinois will realize funding totaling approximately $180 million for the CWSRF and $80 million for the DWSRF. All funding will be administered by the IEPA through our existing SRF programs, the Water Pollution Control Loan Program and the Public Water Supply Loan Program, under emergency rules established to accommodate special provisions included in the ARRA.

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Introduction and Overview

The key objective of the ARRA is to preserve and create jobs and promote economic recovery. Priority must be given to projects ready to start Priority must be given to projects ready to start construction within 120 days. Within one year of enactment ALL funds must be committed to projects under construction or having awarded contract for under construction or having awarded contract for construction. Any uncommitted funds will be reallocated to states eligible for reallotment. Reinforces the priority on “shovel ready” projects.

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Introduction and Overview

50% of available funds must be committed as additional subsidization in the form of principal forgiveness, grants

• r negative interest loans
• r negative interest loans

Awaiting final USEPA guidance, 20% of available funds must be committed to “green’ infrastructure projects to the extent that eligible applications are available We are the extent that eligible applications are available. We are currently soliciting applications for eligible projects that might qualify under the federal definition of “green i f t t t ffi i i t infrastructure, water or energy efficiency improvements or

• ther environmentally innovative activities”.

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Introduction and Overview

Awaiting final guidance from USEPA and the Office of Management and Budget: All iron, steel, and manufactured goods used in a project All iron, steel, and manufactured goods used in a project must be produced in the United States. Davis-Bacon Act wage rules apply to all assistance agreements made in whole or in part with funds agreements made in whole or in part with funds appropriated by the ARRA. The Department of Labor provides prevailing wage rates and instructions for reporting reporting.

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Program Eligibility

Eligible applicants for the WPCLP (wastewater

projects) include local government units, primarily

cities villages and sanitary districts with the cities, villages and sanitary districts, with the following types of projects: construction of new wastewater collection and treatment facilities, or upgrade and expansion of existing facilities; replacement, rehabilitation or extension of collection systems and interceptors; and separation of y a d p o ; a d pa a o

• combined sewers or upgrades to combined systems

to eliminate overflows, surcharging or flooding.

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Program Eligibility

Eligible applicants for the PWSLP (drinking water

projects) include local government units, primarily

cities villages and water districts and certain classes cities, villages and water districts, and certain classes

• f privately-owned community water supplies with

the following types of projects: upgrade or replacement of existing facilities to bring them into compliance with the requirements of the Safe Drinking Water Act and the State Environmental g a a d a

• a

Protection Act; construction of new distribution and/or treatment systems; replacement of wells; and renovation of treatment and/or distribution facilities renovation of treatment and/or distribution facilities.

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Program Eligibility

Loan applicants for financial assistance must first file a pre-application with the IEPA. Projects included on the current (FY 2009) IEPA priority lists for the the current (FY 2009) IEPA priority lists for the WPCLP and PWSLP will be automatically included on the economic recovery program funding list. Other projects with pre-applications will be added to the economic recovery program funding list if a construction start date during calendar year 2009 is

• u
• a

da du g a da y a 00 indicated for the project.

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Program Eligibility

All loan applicants must fully complete all loan application elements before the Agency can offer a loan. A pre- application is not sufficient to secure a loan under either program loan under either program.

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Program Eligibility

Key elements of a loan application that must be submitted by the applicant and approved by the IEPA include: a facilities or project plan; environmental include: a facilities or project plan; environmental sign-offs from the appropriate state and/or federal agencies; a user charge system, sewer use

• rdinance, and a dedicated source of revenue for

repayment of the loan; design plans and specifications with an approved construction permit; p a o a app o d

• u
• p

; and a summary of the bids received on the project, along with a recommendation to award a contract or contracts to the low responsive responsible bidder contracts to the low responsive, responsible bidder.

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Program Eligibility

The distribution of funds will be governed primarily by readiness to proceed, with this focus required to meet the volume and timeline proposed for the meet the volume and timeline proposed for the economic recovery program. Loan applicants should concentrate their efforts on projects that are “bid- ready”, or projects that lend themselves to an accelerated schedule for planning and design.

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Program Implementation

The IEPA will administer all funds through distinct programs within our base SRF programs, the WPCLP and the PWSLP. the PWSLP. The IEPA expects to file emergency rules to accommodate the administration of ARRA funding within thirty days. E l ill f li d d f Emergency rules will feature streamlined procedures for approval of WPCLP and PWSLP loans; however, the process will follow patterns established under our current loan programs, with significant time and resource investments required for project planning, design and financial approval.

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Program Implementation

The IEPA will require submission of a pre-application for financial assistance. The pre-application is available at www epa state il us/water/financial available at www.epa.state.il.us/water/financial-

• assistance. The Agency will also require a completed

loan application, including all necessary certifications to assure appropriate financial and managerial capacity, certification that the necessary project site, rights-of-way, easements and permits for g

• ay,

a a d p

• construction of the project have been obtained, and

execution of any other legal documents necessary for project implementation project implementation.

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Program Implementation

The IEPA will require the submission and approval of a facilities plan for wastewater projects and a project plan for drinking water projects. for drinking water projects. Planning requirements will be streamlined; however, key elements required in the State Environmental Review process must be met The next update to the IEPA process must be met. The next update to the IEPA Website at http://www.epa.state.il.us/water/financial- assistance/economic-stimulus/index.html will include d t d h kli t f F iliti d P j t l updated checklists for Facilities and Project plan

• submittals. It is strongly recommended that planning

submittals include a completed check list.

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Program Implementation

Planning reports should be focused on the following project elements: a detailed description of the alternative selected for loan assistance including alternative selected for loan assistance, including preliminary engineering data, complete cost estimates for design and building, one or more 8.5 by 11 inch site maps locating areas of construction or indirect impacts, and a projected schedule for completion.

• p
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Preliminary Staff Level Discussion Document

Program Implementation

Engineering data should include, to the extent appropriate, flow diagrams, unit process descriptions, detention times flow rates unit capacities etc detention times, flow rates, unit capacities, etc., sufficient to demonstrate that the project proposed will be designed to comply with the provisions of and permitted in accordance with 35 Ill. Adm. Code, Part 370 or Parts 602 and 651 through 654 as the case may be. ay b

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Program Implementation

The IEPA will require the submission and approval of appropriate plans, specifications and design documents, and acceptable bid packages for all projects. and acceptable bid packages for all projects. The IEPA will require the submission and approval of a complete financial package, including enforceable use and user charge ordinances a certified debt authorization user charge ordinances, a certified debt authorization

• rdinance, and a dedicated revenue stream adequate to

assure loan repayment.

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Program Implementation

Planning efforts by the IEPA are focused on the commitment of all economic recovery funds allocated to the State of Illinois within a 180 day time period to the State of Illinois within a 180-day time period extending through the end of September, 2009. The IEPA will “blend” resources available through the g ARRA with traditional program funds to maximize the level of assistance available to local governments in Illinois Illinois. In total, the IEPA will offer approximately $375 million and $130 million for wastewater and drinking water projects, respectively, in FFY 2009.

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Program Implementation

Project funding through the ARRA will be limited to 50%

• f eligible project costs or a maximum cap level ($10

million for WPCLP projects and $5 million for PWSLP million for WPCLP projects and $5 million for PWSLP projects), whichever is less. 50% of the loan principal secured under the ARRA will be forgiven with this additional subsidy providing a 25% forgiven, with this additional subsidy providing a 25% grant for projects not affected by the maximum cap level. Traditional program resources will be utilized for project costs over and above ARRA eligibility. All principal financed through the ARRA or traditional program resources will be financed at zero interest over twenty years.

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Program Implementation

Demand for program funding is at an all time high, and while a rule-of-thumb schedule with a bid date no later than August 2009 is recommended, this should not be than August 2009 is recommended, this should not be construed as approval by the IEPA to bid a project that is proposed for funding under the ARRA. Failure to receive IEPA approval prior to bidding and contract award may IEPA approval prior to bidding and contract award may make the project ineligible for loan assistance under the program. Th i ill t i l d The economic recovery program will not include refinancing provisions for projects currently under construction or previously constructed. Program funding ill b di t d t t ti j t i will be directed to new construction projects in conformance with language proposed in the Act.

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Program Guidance

If your project is included on the FY 2009 priority list for the WPCLP or the PWSLP, you should file a new pre- application prior to March 31, 2009 to assure your project application prior to March 31, 2009 to assure your project stays on the priority list for FY 2010. Your project will be automatically included on the funding list for the economic recovery programs recovery programs. If your project is a new project for which no pre- application has previously been filed, you should file a li ti i t M h 31 2009 t th t new pre-application prior to March 31, 2009 to assure that your project is included on the priority list for FY 2010. If the project has an indicated start date in calendar year 2009 th j t ill b i l d d th ARRA f di li t 2009 the project will be included on the ARRA funding list.

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Program Guidance

If a facilities plan (WPCLP) or project plan (PWSLP) has been previously submitted to the Agency, contact your assigned project manager in the Infrastructure Financial assigned project manager in the Infrastructure Financial Assistance Section or your assigned review person in the Permit Section to identify potential planning deficiencies and signal your desire to move forward in the economic and signal your desire to move forward in the economic recovery programs. If a facilities plan or project plan has not been submitted, l b th t l i t ill i th please be aware that a planning report will remain the first major step in the loan application process. A complete planning report should be submitted at the next il bl t it available opportunity.

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Program Guidance

An additional requirement that should be considered and initiated early in the loan process is the environmental review and environmental sign-off procedure. Visit the review and environmental sign off procedure. Visit the Agency’s web site at www.epa.state.il.us/water/financial- assistance (forms) and begin the process of completing the Applicant Environmental Checklist for your project the Applicant Environmental Checklist for your project. The IEPA will require the submission and approval of a complete financial package, including enforceable local d h di tifi d l l d bt use and user charge ordinances, a certified local debt authorization ordinance, and a dedicated revenue stream adequate to assure loan repayment. Your attorney should d t i i t h d l f th i iti ti determine an appropriate schedule for these initiatives.

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Program Guidance

The Illinois EPA Website will be updated periodically to include new program information and links to important program documentation, including emergency rules program documentation, including emergency rules established to administer program funding, and the forms and documents needed to execute a completed loan application New facilities/project planning submittal

• application. New facilities/project planning submittal

checklists, a new loan application package, and new front end documents will be coming soon.

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Program Guidance

Important program contacts at the IEPA include Geoff Andres, Manager of the Infrastructure Financial Assistance Section (217/782-2027 or geoff.andres@illinois.gov), Al Section (217/782 2027 or geoff.andres@illinois.gov), Al Keller, Manager of Wastewater Permits (217/782-0610), Jerry Kuhn, Manager of Drinking Water Permits (217/782- 1724) and Vera Herst Manager of Local Financial 1724), and Vera Herst, Manager of Local Financial Approvals in the Division of Legal Counsel (217/782- 5544).

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Question and Answer Session

Questions should be directed via e-mail to: hi l d @illi i shirley.durr@illinois.gov Please mute your telephones. If you need to clarify your ease ute you te ep o es you eed to c a y you question or have a direct follow-up to the question posed, telephone access is available.

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