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  1. 1. New Directions for the State Revolving Funds David A. Paterson, Governor Pete Grannis, Chairman Presented By David Morseman, NYSEFC SRF Program Services Coordinator Southern Tier Central Local Government Conference April 15, 2010
  2. 2. EFC: Here for You <ul><li>Priorities </li></ul><ul><ul><li>Promote Environmental Quality </li></ul></ul><ul><ul><li>Provide Financial Assistance </li></ul></ul><ul><ul><li>Superior Client Services </li></ul></ul><ul><li>Model Public Authority </li></ul><ul><li>Non-regulatory </li></ul><ul><li>Financial and Technical Assistance Provided to: </li></ul><ul><ul><li>Local Governments </li></ul></ul><ul><ul><li>State Agencies </li></ul></ul><ul><ul><li>Privates/Non-Profits </li></ul></ul><ul><ul><li>Small Businesses </li></ul></ul><ul><li>Largest Programs: </li></ul><ul><ul><li>Clean Water State Revolving Fund (1987 Clean Water Act Amendments) </li></ul></ul><ul><ul><li>Drinking Water State Revolving Fund (1997 Safe Drinking Water Act) </li></ul></ul>
  3. 3. State Revolving Funds <ul><li>Low Interest Water Infrastructure Financing </li></ul><ul><ul><li>Clean Water Program 50% Interest Savings </li></ul></ul><ul><ul><li>Drinking Water Program 33.3% Interest savings </li></ul></ul><ul><ul><li>Limited Grants & Unsubsidized Financing </li></ul></ul><ul><li>Protecting New York’s Waters and Providing Safe, Clean Drinking Water </li></ul><ul><li>Promoting Energy Efficiency </li></ul><ul><li>Renewed Focus Sustainable Growth </li></ul><ul><li>Multi - Agency Collaboration </li></ul><ul><li>Fund as Many Projects as Possible! </li></ul>
  4. 4. Clean Water State Revolving Fund Overview <ul><li>The New York State CWSRF was established to help municipalities finance publicly-owned projects that improve, protect or maintain water quality. </li></ul><ul><li>Operate on the Federal Fiscal Year cycle – </li></ul><ul><li>October 1 st to September 30 th . </li></ul><ul><li>Capitalized with federal grants and state matching funds. </li></ul><ul><li>Majority of funds for new financings come from repayment of financings. </li></ul><ul><li>Governed by Project Priority System & Annual Intended Use Plan. </li></ul><ul><li>Annual Project Priority List - potential list of eligible municipal, not-for-profit and other non-municipal projects. </li></ul>
  5. 5. Clean Water State Revolving Fund Eligible Projects <ul><li>Point Source Projects </li></ul><ul><li>(Municipal) </li></ul><ul><ul><li>New, expanded or rehabilitated wastewater facilities </li></ul></ul><ul><ul><li>Collection, trunk and interceptor sewers </li></ul></ul><ul><ul><li>Combined sewer overflows </li></ul></ul><ul><ul><li>Stormwater pollution abatement </li></ul></ul><ul><ul><li>Water conservation and reuse systems </li></ul></ul><ul><ul><li>Energy efficiency </li></ul></ul><ul><ul><li>On-site power generation </li></ul></ul><ul><li>Implementation of Estuary Conservation and Management Plans </li></ul><ul><li>Non-Municipal Non-point Source Projects (Category E) </li></ul><ul><ul><li>Same types of projects as municipal non-point source projects. </li></ul></ul><ul><li>Non-point Source Projects </li></ul><ul><li> (Municipal & Non-Municipal) </li></ul><ul><ul><li>Capping and closure of solid waste landfills </li></ul></ul><ul><ul><li>Remediation of contamination from underground storage tanks </li></ul></ul><ul><ul><li>Water quality components of brownfields remediation </li></ul></ul><ul><ul><li>Highway deicing materials facilities </li></ul></ul><ul><ul><li>Stormwater management facilities including green infrastructure, waterbody and wetland restoration </li></ul></ul><ul><ul><li>Decentralized wastewater treatment systems to replace failing on-site systems </li></ul></ul><ul><ul><li>Land acquisition or easements for water quality protection </li></ul></ul>
  6. 6. CWSRF Intended Use Plan (IUP) <ul><li>Project Priority Lists </li></ul><ul><li>Categories </li></ul><ul><li>Subsidy Lines </li></ul><ul><li>Funding Potential </li></ul><ul><li>Initiatives </li></ul><ul><li>Program Information </li></ul><ul><li>Listing Forms </li></ul><ul><li>Financing Applications </li></ul>
  7. 7. IUP Project Listing Requirements <ul><li>Project Listing Form </li></ul><ul><li>Separate forms for Municipal, Land Acquisition, Non-Municipal </li></ul><ul><ul><li>Project Contact Information </li></ul></ul><ul><ul><li>Project Description </li></ul></ul><ul><ul><li>Project Budget & Funding Sources </li></ul></ul><ul><ul><li>Project Schedule </li></ul></ul><ul><ul><li>Authorization by Municipality, Not-For-Profit organization, or other Non-Municipal entity. </li></ul></ul><ul><li>Copy of any enforcement order or permit requiring project implementation (if applicable). </li></ul><ul><li>To be included on the Annual Year Project Priority List : </li></ul><ul><li>Approvable Engineering/Technical Report or “Land Acquisition Plan” & Targeted Parcels List for Land Acquisition. </li></ul>
  8. 8. Types of CWSRF Financing <ul><li>Short-Term Financing </li></ul><ul><ul><li>Short-Term Interest-Free Financing (STIFF) </li></ul></ul><ul><ul><li>Short-Term Market-Rate Financing (SMRF) </li></ul></ul><ul><li>Long-Term Financing </li></ul><ul><ul><li>Long-Term Leveraged Financing </li></ul></ul><ul><ul><li>Long-Term Direct Financing </li></ul></ul><ul><ul><li>Long-Term Market Rate Financing </li></ul></ul><ul><li>Hardship Financing </li></ul>
  9. 9. CWSRF Short-Term Interest-Free Financing <ul><ul><li>Projects not ready for long-term financing </li></ul></ul><ul><ul><li>Three year maximum term </li></ul></ul><ul><ul><li>Finance planning (reimbursement only), design & construction costs </li></ul></ul><ul><ul><li>STIFF not available for projects that have completed more than 50% of construction. </li></ul></ul><ul><ul><li>1,000 priority score bonus points for IUP listing </li></ul></ul><ul><ul><li>Only for environmentally significant projects </li></ul></ul><ul><ul><li>Short-Term Financing Policy - on website </li></ul></ul>
  10. 10. Short-Term Market-Rate Financing <ul><li>Available for applicants with projects that are not reachable for CWSRF subsidized funding </li></ul><ul><li>Also for applicants who require additional short term financing resources beyond the subsidized short-term financing </li></ul><ul><li>Applications accepted on a continuous basis </li></ul><ul><li>Interest will be charged </li></ul>
  11. 11. CWSRF Long-Term Financing <ul><ul><li>Leveraged (Pooled) Financings </li></ul></ul><ul><ul><ul><li>Subsidized Interest Rate </li></ul></ul></ul><ul><ul><ul><ul><li>33 1/3 % Subsidy (set by State Statute) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>50% Enhanced Subsidy (extended to 9/30/12) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Current Subsidized Rate (50%) = 2.14% (June 2008) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Doubles CWSRF capital </li></ul></ul></ul></ul><ul><ul><ul><ul><li>EFC bonds rated “AAA” </li></ul></ul></ul></ul><ul><ul><li>Direct Financings </li></ul></ul><ul><ul><ul><li>Reduced Interest Rate / Financial Hardship </li></ul></ul></ul><ul><ul><ul><ul><li>Confirmation Letter (hardship) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Interest rate varies from zero to the subsidized rate </li></ul></ul></ul></ul><ul><ul><ul><li>Small or non-investment grade </li></ul></ul></ul>
  12. 12. Long-Term Market Rate Financing <ul><li>For eligible recipients with project scores below the CWSRF Annual List subsidy line. </li></ul><ul><li>Access to public capital markets at preferred interest rates. </li></ul><ul><li>Financial guarantee for bonds issued by eligible recipients. </li></ul><ul><li>Bonds issued for terms up to thirty years. </li></ul><ul><li>Recipients of a guaranteed financing will have their project retained on the CWSRF Annual PPL until it qualifies for traditional subsidized financing at a future date. </li></ul><ul><li>Application process same as CWSRF application. </li></ul>
  13. 13. CWSRF Hardship <ul><li>Wastewater Treatment projects may be eligible for reduced interest or zero </li></ul><ul><li>interest loans based on financial hardship </li></ul><ul><li>Limited to sewage treatment works serving residential areas </li></ul><ul><li>The maximum total project cost for hardship projects is $14 million. </li></ul><ul><li>Hardship determinations will not be made for projects with an MHI greater than $65,090. </li></ul><ul><li>Confirmation letter will be issued for projects on the Annual PPL at or above the subsidy line score or to projects below the subsidy line if funds become available for the project. </li></ul><ul><li>Two (2) year expiration date for closing on hardship financing. </li></ul><ul><li>Projects with substantial seasonal residents may require an income survey. </li></ul><ul><li>Hardship confirmation re-evaluations will only be done for projects with a core project score (excluding bonus points) above the final IUP subsidy line or as determined reachable for funding with by-pass funds by EFC. </li></ul>
  14. 14. CWSRF 2010 IUP <ul><li>Additional Subsidization </li></ul><ul><li>$112,275,279 total </li></ul><ul><li>Principal Forgiveness </li></ul><ul><li>$67,275,279 </li></ul><ul><li>Disadvantaged Communities (MHI below $43,393) </li></ul><ul><li>Category D (hardship) & above subsidy lines in Categories A & B </li></ul><ul><li>Initial Project Financing </li></ul><ul><li>Green Project Reserve (GPR) </li></ul><ul><li>$45,000,000 </li></ul>
  15. 15. CWSRF 2010 IUP <ul><li>Principal Forgiveness (PF) </li></ul><ul><li>Category A - $7,447,050 </li></ul><ul><ul><li>maximum $2 M / project or municipality </li></ul></ul><ul><li>Category B - $29,828,229 </li></ul><ul><ul><li>maximum $4 M / project or municipality </li></ul></ul><ul><li>Category D (hardship) - $30,000,000 </li></ul><ul><ul><li>maximum $2 M / project or municipality </li></ul></ul><ul><li>Energy Efficiency Analysis incentive (NYSERDA) </li></ul><ul><ul><li>100% PF awarded if analysis done </li></ul></ul><ul><ul><li>80% PF awarded if analysis not done </li></ul></ul>
  16. 16. CWSRF 2010 IUP <ul><li>Green Project Reserve (GPR) </li></ul><ul><li>$45,000,000 total for GPR requirement </li></ul><ul><ul><li>For projects approved as green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities. </li></ul></ul><ul><li>$15,000,000 Green Innovation Grant Program (GIGP) </li></ul><ul><ul><li>Category G </li></ul></ul><ul><li>$30,000,000 NYCMWFA Green Projects </li></ul><ul><ul><li>Category C </li></ul></ul>
  17. 17. CWSRF 2010 IUP <ul><li>Green Innovation Grant Program (GIGP) </li></ul><ul><li>Category G created for Green Infrastructure Projects </li></ul><ul><li>Grants </li></ul><ul><li>$15,000,000 </li></ul><ul><li>Separate Application </li></ul><ul><li>Application & additional details in IUP amendment later this Summer </li></ul>Green Roof - Jamestown, NY Green Streets - Queens, NY
  18. 18. CWSRF 2010 IUP <ul><li>Energy Initiatives & Evaluations </li></ul><ul><li>Grants available to communities for energy evaluations for proposed water quality projects </li></ul><ul><li>Community contracts with the consultant for the evaluation </li></ul><ul><li>Available on a first come – first served basis </li></ul><ul><li>Amount available per community varies based on population </li></ul><ul><li>$2,000,000 </li></ul><ul><li>Application & Guidelines to be announced </li></ul>
  19. 19. CWSRF 2010 IUP <ul><li>Pre-Design Planning Grants </li></ul><ul><li>Grants available to communities for pre-design planning of CWSRF-eligible projects </li></ul><ul><li>Grants will be available to communities with a population below 100,000 </li></ul><ul><li>Available on a first come – first served basis </li></ul><ul><li>Amount available per community varies based on population </li></ul><ul><li>$1,000,000 </li></ul><ul><li>Application & Guidelines to be announced </li></ul>
  20. 20. CWSRF 2011-2012 IUPs <ul><li>SRF Sustainability Initiative </li></ul><ul><li>New planning effort to enhance the SRFs ability to promote smart growth, reduce energy use and improve asset management. </li></ul><ul><li>[email_address] to submit comments </li></ul><ul><li>Sign up for “SRF Sustainability E-mail List” </li></ul><ul><li>Changes to SRF program in Fall 2010 </li></ul>
  21. 21. CWSRF 2011-2012 IUPs <ul><li>Future Scoring System Modifications from Sustainability Recommendations </li></ul><ul><li>Use of the CWSRF to support better land use planning, reward Asset Management, fund energy-efficient & innovative green technologies at water treatment facilities. </li></ul><ul><li>Changes are possible in 2011, potentially in conjunction with reauthorization of the CWSRF. </li></ul>
  22. 22. CWSRF 2011-2012 IUPs <ul><li>Future Scoring System Modifications </li></ul><ul><li>Engineering reports may need to address issues such as: </li></ul><ul><ul><li>Does the project involve the extension of collector sewers into areas not currently served by sewer collectors? If so, what is the reason for the extensions? </li></ul></ul><ul><ul><li>Does the applicant community have a written Comprehensive Land Use Plan that addresses the area served by the proposed project? If so, what year was the Plan adopted? </li></ul></ul><ul><ul><li>Please explain why the construction of the proposed project will be consistent with the Comprehensive Land Use Plan. </li></ul></ul><ul><ul><li>Does the community have a written Asset Management Plan for their wastewater treatment system? </li></ul></ul><ul><ul><li>Have the sewer rates for the system been developed accounting for operations and maintenance costs? When were the sewer rates last revised? </li></ul></ul><ul><ul><li>Is there a capital investment plan for the system? When was this plan last revised? </li></ul></ul>
  23. 23. CWSRF 2011-2012 IUPs <ul><li>Linked Deposit Program (LDP) </li></ul><ul><li>The LDP is being finalized for onsite and agricultural non-point source projects. </li></ul><ul><li>For homeowners to repair or replace a failed or failing septic system </li></ul><ul><li>For agricultural operations for the development and installation of water quality improvement and protection projects </li></ul><ul><li>Application & Guidelines to be announced </li></ul>
  24. 24. CWSRF 2011 IUP <ul><li>Current Projects – 2011 IUP Update Forms & Summary Sheets </li></ul><ul><li>return to EFC by April 23, 2010 </li></ul><ul><li>New Projects – Project Listing Deadlines </li></ul><ul><li>Approximately May 3, 2010 for draft IUP listing </li></ul><ul><li>Approximately mid-August 2010 for final IUP listing </li></ul><ul><li>(end of draft IUP comment period) </li></ul><ul><li>Project Listing Form (CWSRF) </li></ul><ul><li>Annual List for FFY 2011 financing (10/1/10 – 9/30/11) </li></ul><ul><li>Proposed Funding </li></ul><ul><li>$224 Million Federal Grant / $44 Million State Match </li></ul>
  25. 25. Drinking Water State Revolving Fund <ul><li>DWSRF program administered jointly by DOH & EFC </li></ul><ul><li>Drinking water facilities – treatment, transmission, distribution, </li></ul><ul><li>storage, sources, interconnections, consolidation, security </li></ul><ul><li>Community water systems </li></ul><ul><li>Municipally-owned </li></ul><ul><li>Privately-owned </li></ul><ul><li>Non-profit, non-community systems </li></ul><ul><li>Subsidized Financing </li></ul><ul><li>Short-Term – zero % up to 3 yrs. / roll to LT </li></ul><ul><li>Long-Term – one-third interest rate subsidy / up to 20 yrs. </li></ul><ul><li>Hardship – usually zero % interest / up to 30 yrs. </li></ul><ul><li> -- some limited grant $ </li></ul><ul><li>Unsubsidized Financing – Short-Term & Long-Term Market-Rate </li></ul>
  26. 26. DWSRF Intended Use Plan (IUP) <ul><li>Project Priority Lists </li></ul><ul><li>Subsidy Line </li></ul><ul><li>Funding Potential </li></ul><ul><li>Initiatives </li></ul><ul><li>Program Information </li></ul><ul><li>Pre-Application Listing Form </li></ul><ul><li>Financing Applications </li></ul>
  27. 27. DWSRF 2010 IUP <ul><li>Additional Subsidization </li></ul><ul><li>Required 30% to be used for Hardship Grants </li></ul><ul><li>2010 IUP Hardship Grant Funding increased </li></ul><ul><li>(from 20% to 30%) </li></ul><ul><li>$89.4 million Federal grant </li></ul><ul><li>$26.8 million for hardship grants </li></ul>
  28. 28. DWSRF 2011 IUP <ul><li>FFY 2011 DWSRF Proposed Funding </li></ul><ul><li>Federal Grant – appropriation - $1.3 billion </li></ul><ul><ul><li>NYS share estimated at $87 million </li></ul></ul><ul><li>Set-asides estimated at $ million </li></ul><ul><li>Hardship Grant Funds (30% of Federal grant) - $26.1 million </li></ul><ul><li>Reserve allocation amount - $ million </li></ul><ul><li>Subsidy Line – Readiness List </li></ul><ul><ul><li>2011 IUP - ?? pts. – in draft & final 2011 IUPs </li></ul></ul><ul><ul><li>2010 IUP – 200 pts. / by-pass line – ? pts. </li></ul></ul><ul><li>Short-Term Financing – from project’s reserve allocation amount in Readiness List (one-third subsidy for non-hardship projects) </li></ul>
  29. 29. Types of DWSRF Financing <ul><li>Similar to CWSRF Financing </li></ul><ul><li>Short-Term Financing </li></ul><ul><ul><li>Short-Term Interest-Free Financing (STIFF) </li></ul></ul><ul><ul><li>Short-Term Market-Rate Financing (SMRF) </li></ul></ul><ul><li>Long-Term Financing </li></ul><ul><ul><li>Long-Term Leveraged Financing </li></ul></ul><ul><ul><li>Long-Term Direct Financing </li></ul></ul><ul><ul><li>Long-Term Market-Rate Financing </li></ul></ul><ul><li>Hardship Financing </li></ul><ul><ul><li>Limited grants & zero interest financing </li></ul></ul>
  30. 30. Helpful Hints <ul><li>Submit listing forms early </li></ul><ul><li>Submit engineering/technical reports for approval </li></ul><ul><li>Note deadline for listing projects in CWSRF Annual List & DWSRF Readiness List </li></ul><ul><li>Prepare environmental reviews (contact staff of the NYSDEC Regional Permit Administrator to discuss environmental reviews for CWSRF projects) </li></ul><ul><li>Initiate district formation early (Towns & Counties) </li></ul><ul><li>Identify and apply for all required permits early </li></ul><ul><li>Involve your local counsel and bond counsel early, including bond authorization </li></ul><ul><li>Municipal representatives need to be involved </li></ul><ul><li>Submit financing applications at appropriate time </li></ul>
  31. 31. Co-funding Benefits <ul><li>Optimizes Project Funding </li></ul><ul><li>Central Source for: Program Information Application Assistance </li></ul><ul><li>Formal, Coordinated Intergovernmental Funding Approach </li></ul><ul><li>Co-funding Coordinator </li></ul><ul><li> </li></ul>
  32. 32. Client Services <ul><li>Application Development – Intended Use Plan </li></ul><ul><li>Legal, Engineering, Finance, MWBE </li></ul><ul><li>Individual Project Consultations </li></ul><ul><li>On-site Visits </li></ul><ul><li>Field Offices: Bath, Cortland, Warrensburg </li></ul><ul><li>Outreach and Education </li></ul><ul><li>Obtain Optimum Funding </li></ul><ul><li>Post Closing Assistance </li></ul>
  33. 33. Contacts <ul><li>Project Development & Information Services </li></ul><ul><ul><li>Western NY, West & Central Finger Lakes </li></ul></ul><ul><li>J.C. Smith </li></ul><ul><li>Environmental Project Manager </li></ul><ul><li>NYS Environmental Facilities Corporation </li></ul><ul><li>607 776 4978 </li></ul><ul><li>[email_address] </li></ul>
  34. 34. Contact Us <ul><li>NYS EFC </li></ul><ul><li>625 Broadway </li></ul><ul><li>Albany, NY 12207 </li></ul><ul><li>1-800-882-9721 </li></ul><ul><li>David Morseman </li></ul><ul><li>(518) 402-7396 </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul><ul><li>[email_address] </li></ul>