American R Recovery and d Reinvestment Act of Reinvestment Act of 2009 “ARRA” ARRA Preliminary Staff Level Discussion 2/26/2009 Document 1
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 oca governments, the consulting community, IEPA and USEPA Regional Staff, State Associations and other interested parties. Our intent is to summarize key provisions included in the O i t t i t i k i i i l d d i th 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. Preliminary Staff Level Discussion Document 2
AGENDA The ARRA: Introduction and Overview 1. Program Eligibility 2. Program Implementation P I l t ti 3. 3 Program Guidance 4. Questions and Answers Quest o s a d s e s 5. 5 Preliminary Staff Level Discussion Document 3
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. Preliminary Staff Level Discussion Document 4
Questions Please direct your questions via e-mail to: shirley.durr@illinois.gov. Questions will be answered to hi l d @illi i Q ti ill b d t 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. Preliminary Staff Level Discussion Document 6
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. Preliminary Staff Level Discussion Document 7
Introduction and Overview 50% of available funds must be committed as additional subsidization in the form of principal forgiveness, grants or negative interest loans or 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 the extent that eligible applications are available. We are We are currently soliciting applications for eligible projects that might qualify under the federal definition of “green infrastructure, water or energy efficiency improvements or i f t t t ffi i i t other environmentally innovative activities”. Preliminary Staff Level Discussion Document 8
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. Preliminary Staff Level Discussion Document 9
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 o combined sewers or upgrades to combined systems to eliminate overflows, surcharging or flooding. Preliminary Staff Level Discussion Document 10
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 of 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 o 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. Preliminary Staff Level Discussion Document 11
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 o u o a da du g a da y a 00 indicated for the project. Preliminary Staff Level Discussion Document 12
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. Preliminary Staff Level Discussion Document 13
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 ordinance, 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 o u o 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. Preliminary Staff Level Discussion Document 14
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. Preliminary Staff Level Discussion Document 15
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. Emergency rules will feature streamlined procedures for E l ill f li d d f 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. Preliminary Staff Level Discussion Document 16
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