powerpoint presentation pdfs/sustainabilityconference...title: powerpoint presentation author: john...
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Sustainable Infrastructure Needs–Community Solutions through the
Drinking Water & Clean Water State Revolving Funds
Jerry Rouch, Ohio EPA DEFASustainability Conference
April 17, 2019
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Infrastructure Needs
• What are the Infrastructure Needs?
– Drinking Water
• pipes that distribute drinking water, tanks to store treated water, and the technology that treats the water so that it is safe to consume.
– Wastewater and Stormwater
• pipes that carry wastewater to treatment plants, the technology that treats the wastewater prior to discharge, as well as methods for managing stormwater runoff.
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Infrastructure Needs
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Infrastructure Needs
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Estimate of Ohio’s20-year Infrastructure Needs
Clean Watersheds Needs Survey – January 2016
$14.5 Billion
Drinking Water Needs Survey – April 2013
$12.2 Billion
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Great Lakes Region20-year Infrastructure Needs
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Average Ohio Sewer and Inflation Rates
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Sustainable Infrastructure
Sustainable Communities rely on Sustainable Infrastructure
• Basic Human Needs
• Industry and Commerce
• Schools and Institutions
• Development and Economic Growth
• Stability of assets and expected costs
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Sustainable InfrastructureU.S. EPA Policy on Sustainable Infrastructure
Sustainable water infrastructure is critical to providing the American public with clean and safe water. Further, water infrastructure can only be sustainable if the communities it serves are sustainable, and if local decision makers and citizens understand the value of water infrastructure and the services provided. Federal investments, policies, and actions should support water infrastructure in more efficient and sustainable locations to best support existing communities, enhance economic competitiveness, and promote affordable neighborhoods.
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Sustainable Infrastructure
Asset Management is the tool that results in Sustainable Infrastructure
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Asset ManagementAsset management is the practice of managing infrastructure capital assets to minimize the total cost of owning and operating these assets while delivering the desired service levels. Many utilities use asset management to pursue and achieve sustainable infrastructure. A high-performing asset management program includes detailed asset inventories, operation and maintenance tasks, and long-range financial planning.
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The Elements of Asset Management
The five core questions of Asset Management:
1. What is the current state of the assets?
2. What is the required "sustainable" level of service?
3. Which assets are critical to sustained performance?
4. What are the minimum life-cycle costs?
5. What is the best long-term funding strategy?
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Benefits of Asset Management• Prolonging asset life and improving decisions about asset
rehabilitation, repair, and replacement.• Meeting consumer demands with a focus on system
sustainability.• Setting rates based on sound operational and financial
planning.• Budgeting focused on critical activities for sustained
performance.• Meeting service expectations and regulatory requirements.• Improving responses to emergencies.• Improving the security and safety of assets.• Reducing overall costs for both operations and capital
expenditures.
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Financial Support for Asset Management Planning
Year Funds Awarded# Asset Management
Plans
2017 $10,000 2
2018 $110,000 11
2019 (awarded) $479,400 48
2019 (to be awarded) $197,500 20
Totals $796,900 81
Principal Forgiveness Funds Awarded for Asset Management Planning
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Estimate of Ohio’s20-year Infrastructure Needs
Clean Watersheds Needs Survey – January 2016
$14.5 Billion
Drinking Water Needs Survey – April 2013
$12.2 Billion
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Financing Infrastructure Needs
Where can Communities get access to capital to Replace and Expand their Infrastructure?
• Bond Financing
• State Revolving Fund (SRF) Programs
• Other State Loan Programs
• State or Federal Grants
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Water Pollution Control Loan Fund (WPCLF)
WPCLF provides funding to public wastewater systems for planning, design and construction of wastewater systems.
Water Supply Revolving Loan Account (WSRLA) WSRLA provides funding to public water systems for planning, design, and construction of drinking water systems.
State Revolving Funds
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State Revolving FundsWPCLF WSRLA
This is what we have accomplished over 30 years
First Loan Sept. 1989 Feb. 1999
Total Loans Over 2,300 Projects Over 738 Projects
Total Investment In Ohio Over $ 9.1 Billion Over $ 1.5 Billion
Total estimated Savings for Communities
$1.3 Billion $220 Million
SustainableAnnual Capacity
Over $500 million/year
$150 million/year
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Annual Funding Levels from Ohio EPA Revolving Loan Fund Programs
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Snapshot of Financial Assistance (2018)
Program # of Awards Funds Awarded
Water Supply Revolving Loan Account (WSRLA)
96 $233,412,400
Water Pollution Control Loan Fund (WPCLF)
167 $552,105,065
Water Resource Restoration Sponsor Program (WRRSP)
10 $11,608,269
Total 273 $797,125,734
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WPCLF and WSRLA – Wide Range of Projects and Applicants
WPCLF WSRLA
Smallest Loan $4,500 $7,000
Largest Loan $285 Million $31 Million
Average Loan $3.9 Million $2.2 Million
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State Revolving Funds
Eligible Loan Recipients
WPCLF WSRLAFor wastewater treatment: any municipality or other political subdivision, or inter-municipal, interstate, or State agency
Community Water Systems
Non-profit, Non-Community Public Water Systems
For Nonpoint Source Pollution Control Projects: Public or private entities.
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Water Supply Revolving Loan Account
Eligible Projects Include:
New water treatment plants Water treatment plant rehab
New waterlines Waterline rehab/replace
Water tanks/towers Pump/booster stations
Regionalization projects New water meters
Standby/back-up power New well fields
Emergency interconnections Asset Management Plans
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Water Pollution Control Loan Fund
Eligible Projects Include:
• New wastewater treatment plants (WWTP)
• WWTP upgrades and rehabilitation
• New sanitary sewers for unsewered areas
• Sanitary sewer rehabilitation or replacement
• CSOs (New Incentives)
• Nutrient Reduction (Incentive)
• NPS Projects:
– Stream protection and stream restoration
– Landfill closure
– HSTS replacement programs
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WPCLF/WSRLA Interest Structure
Category Terms
Standard Market rates minus 1.25%
Small Community Market rates minus 1.75%
Hardship 1%
Hardship 0%
Principal Forgiveness Available during 2019
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Lower Interest Rates = Big $avingsCompared to market rates, savings are substantial
Example $1 million loan (December 2018 rates)
Interest Rate Total Repayments Savings vs. Market
Market (3.64%) $1,416,465 ---------------
Standard (2.39%) $1,263,819 $152,646
Small (1.89%) $1,205,540 $210,925
Hardship (1%) $1,105,820 $310,645
Hardship (0%) $1,000,000 $416,465
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Additional Discounts & Features Available
WPCLF
• CSO Discount
• Nutrient Reduction Discount
• Regionalization Discount
• WRRSP Sponsorship
• 0% for planning & design
• Extended Terms Available
• Principal Forgiveness➢ Home Sewage
➢ Unsewered Areas
WSRLA• HAB Discount
• Regionalization Projects (75% PF)
• Human Health Projects (75% PF)
• Disadvantaged Comm. (50% PF)
• Targeted Funds➢ Asset Management
➢ Emergency Connections
➢ Gaseous Chlorine Conversion
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Water Pollution Control Loan Fund (WPCLF)
Bubble Plot of Loan Recipients
547 Entities
$9.1 Billion
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Infrastructure Financing through the WPCLF and WSRLA
• Sustainable Communities rely on sustainable infrastructure
• Ohio’s water and sewer infrastructure needs are exceed $28 billion
• Ohio’s communities need to finance capital improvements
• Ohio’s WPCLF and WSRLA are the major source of infrastructure funding in Ohio
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How Ohio EPA Supports Sustainable Infrastructure
• Providing technical assistance for cost-effective, environmentally-sound solutions
• Reviewing for financial sustainability
• Promoting asset management, shared services, and regional solutions
• Providing incentives for new initiatives
• Funding capital improvement needs throughout Ohio
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Questions?
Jerry Rouch
Ohio EPA Division of Environmental & Financial Assistance
(614) 644-2798