8/5/2010 SEWER COMMISSION Minutes

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Bureau of Resource Protection Clean Water State Revolving Fund Loan Program Calendar Year 2010 Intended Use Plan and Project Priority List Introduction The Federal Water Quality Act of 1987 phased out the EPA Construction Grants Program and replaced it with a program of capitalization grants to the States to create Clean Water State Revolving Fund (CWSRF)programs. These programs provide state-administered below market rate financing for the construction of publicly owned water pollution abatement facilities, Under the CWSRF program, States are required to match the federal capitalization grant to create the loan fund. Projects to be financed are selected using a priority ranking system based upon the public health and environmental protection benefits of the proposed projects. Pursuant to the applicable provisions of the Federal Water Pollution Control Act of 1972, as amended, Chapter 21 of the General Laws,and 310 CMR 44.00,the Massachusetts Department of Environmental Protection (MassDEP) has developed its 2010 Calendar Year Intended Use Plar/Project Priority Lists (IUP/PPL), with its attendant ranking of water pollution abatement projects. In order for a project to receive financial assistance under the State Revolving Loan Fund program,that project must appear on the Project Priority List and the Intended Use Plan Project Listing. Notice of availability of the Draft 2010 Calendar Year IUP/PPL was made on March 3, 2010, and a Public Hearing will be held on April 6,2010 at the offices of MassDEP at One Winter Street in Boston at 1:30 P.M. Written public comments were accepted until 5:00 P.M. on April 7, 2010. All new projects receiving financial assistance from the CWSRF will be eligible for loans at 2% interest. The Commonwealth subsidizes these loans,funding the spread between market interest rates and the 2% loan. This subsidy, so-called Contract Assistance,will continue to be allotted to the SRF programs in this and upcoming budget cycles. Certain projects,whose primary purpose is nutrient reduction,may be eligible for 0% interest loans, if they meet specific statutory requirements.The 2008 Environmental Bond Bill contained language providing access to a reduced rate(0%from 2%) of financing for projects that treat for nutrient reduction, subject to the following conditions: (1)The project is primarily intended to remediate or prevent nutrient enrichment of a surface water body or a source of water supply; (2)The applicant is not currently subject, due a violation of a nutrient-related total maximum daily load standard or other nutrient based standard,to a Department of Environmental Protection enforcement order,administrative consent order or unilateral administrative order,enforcement action by the United States Environmental Protection Agency or subject to a state or federal court order relative to the proposed project; (3)The applicant has a Comprehensive Wastewater Management Plan approved pursuant to regulations adopted by the Department of Environmental Protection; (4)The project has been deemed consistent with the regional water resources management plans if one exists; (5)The applicant has adopted land use controls, subject to the review and approval of the Department of Environmental Protection in consultation with the Department of Housing and Economic