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Home My WebLink AboutDWQ-2024-0083171 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY . Intended Use Plan FY24 Prepared by The Division of Water Quality November 2024 2 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY INTENDED USE PLAN FY24 Prepared by: Adriana Hernandez, Ken Hoffman, Emily Cantón Utah Department of Environmental Quality Division of Water Quality 195 North 1950 West Salt Lake City, UT 84116 November 2024 3 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY CONTENTS CHAPTER 1. Introduction ........................................................................................................................................................ 4 1.1 Public Comment Process……………………………………………………………………………………………………………………….5 CHAPTER 2. Program Operations ........................................................................................................................................... 6 2.1 Transfer of Clean Water State Revolving Funds ...................................................................................................... 6 2.2 Extended Financing Terms ...................................................................................................................................... 7 2.3 Additional Subsidization ......................................................................................................................................... 7 2.4 Green Project Reserve ............................................................................................................................................. 8 2.5 Program Assurances ................................................................................................................................................ 8 CHAPTER 3. CWSRF Project Funding .................................................................................................................................... 9 3.1 Long Term Goals ..................................................................................................................................................... 9 3.2 Short Term Goals .................................................................................................................................................... 9 CHAPTER 4. Sewer Overflow and Stormwater Reuse Municipal Grants Program ................................................................. 12 CHAPTER 5. Utah Wastewater Loan Program ...................................................................................................................... 13 CHAPTER 6. Hardship Grant Funds ..................................................................................................................................... 14 CHAPTER 7. Payment Schedule ............................................................................................................................................ 16 7.1 Cash Flow Projections – State Revolving Fund ........................................................................................................... 17 7.2 Cash Flow Projections – Utah Wastewater Loan Fund ................................................................................................ 18 7.3 Cash Flow Projections – Hardship Grant Fund .......................................................................................................... 19 CHAPTER 8. SRF Sources & Use Table ................................................................................................................................ 21 CHAPTER 9. Project Priority List (PPL) ................................................................................................................................ 22 APPENDICES APPENDIX A. Financial Burden Policy ……………………………………………………………………………………………………………………….23 APPENDIX B. Interest Rate Factors ………………………………………………………………………………………………………………………..….26 APPENDIX C. Project Priority Sheet …………………………………………………………………………………………………………………………..27 4 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY CHAPTER 1. Introduction The Intended Use Plan is used by the Utah Department of Environmental Quality (DEQ) to apply for the US Environmental Protection Agency (EPA) Capitalization Grant. The primary purpose of the Plan is to identify current and projected projects that may be awarded funding from federal grant awards. The federal award for the FY24 base program is $4,302,000. The federal award for the FY24 general supplemental program is $11,983,000. The federal award for the FY24 emerging contaminants supplemental is $1,121,000. See Table 2 for a list of State Revolving Fund projects. In addition, the Plan identifies current and projected projects that may be awarded from the Sewer Overflow and Stormwater Reuse Municipal Grants Program and State monies, including the Utah Wastewater Loan Fund and Hardship Grant Fund. See Tables 3, 4 and 5 for a list of these respective projects. As required under Sections 606(c) and 610(b) of the Clean Water Act, the State of Utah has prepared an Intended Use Plan (IUP) for the Clean Water State Revolving Fund (CWSRF) program. The purpose of the IUP is to facilitate the negotiation process for the Fiscal Year 2024 CWSRF Capitalization Grant agreements. This IUP outlines the short- term and long-term goals of the program and proposes a schedule of payment between the Department of Environmental Quality –Division of Water Quality (Division) and the Environmental Protection Agency –Region 8. This document also describes the intended uses for: The State Revolving Fund (SRF), Sewer Overflow and Stormwater Reuse Municipal Grants (OSG) Program, the Utah Wastewater Loan Fund (UWLF), and the Hardship Grant Fund (HGF). All data provided in the 2024 IUP are projections of funding for the listed projects. Ultimately, the Utah Water Quality Board (the Board) will determine loan amounts and financing terms as projects are presented for authorization pursuant to Utah Administrative Code (UAC) R317-101-4. See Appendix A for the Board's Financial Burden Evaluation Policy and Appendix B, Interest Rate Factors. The CWSRF is a financial assistance program that provides low-cost financing for treatment works, sewerage systems, storm water projects, decentralized systems, and nonpoint source projects. The operation of Utah’s CWSRF program is coordinated between the Utah Water Quality Board and the Department of Environmental Quality – Division of Water Quality. Projects financed through the State Revolving Fund may receive funding from the following sources: (a) SRF Capitalization Grants; (b) SRF loan repayments; and (c) State matching funds. Occasionally, an SRF-eligible project will be financed through the Utah Wastewater Loan Fund or Hardship Grant Fund. The Division of Water Quality maintains the SRF Project Priority List comprised of projects for which funding applications have been submitted. The Project Priority List is a numeric calculation used to prioritize projects which will remedy the most severe water quality problems and provide funds for the most beneficial protection of public health and water quality improvement. Projects are listed on the Project Priority List prior to being presented to the Water Quality Board for authorization. These updated Project Priority Lists are considered to be updates to the current IUP. Projects will be considered for funding according to their priority and readiness to proceed. If an SRF-eligible project does not proceed or is funded by SRF, UWLF, HGF, or another source, it will be removed from the Project Priority List. The Intended Use Plan includes projects listed on the most recent FY 2024 Project Priority List. The Division of Water Quality conducts multiple surveys; one of which is the Municipal Wastewater Planning Program (MWPP) survey to project the potential Utah Statewide funding needs for wastewater treatment and wastewater collections systems. Participation in the MWPP is required for all political subdivisions which have received funding from the SRF, UWLF, or HGF. In addition, all wastewater agencies Statewide are encouraged to voluntarily participate. In the most recent survey from 2021, 168 responses were received, which represents 70% of the distributed surveys. Results from the MWPP survey for projected wastewater capital improvement projects are listed below, showing a projected Statewide need of more than $4.4 billion through 2041. It should be noted that agency estimation accuracy diminishes with greater timelines; therefore, the 2025 estimation is believed to be accurate, while the need for 2040 is probably greater than estimated. 5 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 2021 MWPP survey results – Statewide Wastewater Capital Improvement Projects 2021-2026 2027-2031 2032-2036 2037-2041 $2,540,200,246 $737,598,506 $610,615,718 $579,739,913 The Clean Water Needs Survey (CWNS) has also been completed. The Division surveyed four facility types- wastewater, stormwater, nonpoint source, and decentralized-that showed a total need of $9.7 billion for the survey period of 2022 – 2041. A State Specific Approach (SSA) was used to estimate data for each of these facility types where planning documents were not available. A total of 190 wastewater collection and treatment facilities were entered into the survey using planning documents, small community forms, and the SSA; of these, 95% responded and 5% were estimated using the SSA. There were 91 stormwater facilities entered using a survey to estimate needs with the SSA, showing a need of $1.9 billion. Decentralized systems were estimated with the SSA according to the 13 health departments in the state and showed a need of $1.26 billion. The nonpoint source survey received 37 project responses, which showed a need of $690 million. 1.1 Public Comment Process The public comment process for Utah’s IUP is a crucial step in ensuring transparency and community involvement. Once the draft Intended Use Plan is presented and approved by the Board, a public notice will be posted and the IUP and PPL will be made available to the public for review and feedback. The public comment notice is posted in the local newspaper and to the Division’s website, and is open for 30 days. Feedback can be submitted in writing or via email to the Division. All comments received during this period are carefully considered by the Division and responses will be added for submission to EPA. 6 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY CHAPTER 2. Program Operations Since its inception in 1989, Utah’s CWSRF program has received appropriations from the federal government through capitalization grants. For FY24 the base capitalization grant award is $4,302,000, and the general supplemental capitalization grant award is $11,983,000. In addition to federal dollars, The Department of Environmental Quality – Division of Water Quality is required to provide a twenty percent (20%) state match for the base and the general supplemental funding. Utah has met the state match requirement for the base program by using money from the Utah Wastewater Loan Fund. Revenues into UWLF are comprised of principal repayments from state loans, from a state sales tax allocation, and additional legislature appropriation. Utah has received its full measure of sales tax dollars in the amount of $3,587,500. In addition, the Utah State Legislature provided $5,801,700 for the additional state match requirements for the general supplemental funding. The Division of Water Quality will ensure that it meets 40 CFR 35.3135 (b) requirements by depositing the entire 20% match upon receipt of the federal grant awards. The Department of Environmental Quality – Division of Water Quality will use SRF administrative funds of 4% of the overall grant awards. Administration will not exceed the statutory limit. In addition, loan origination fees equal to 1% of the principal loan amount are charged to loan recipients. That revenue may also be used for program administration expenses. The Division of Water Quality estimates that $146,200 will be collected from loan origination fees by the end of the Fiscal Year. The Department of Environmental Quality – Division of Water Quality will reserve the right to use 2% of the Clean Water SRF Capitalization Grants for Technical Assistance. The planned activities for these funds will be determined at a later date. 2.1 Transfer of Clean Water State Revolving Funds The Water Quality Board and Division of Water Quality reserve authority to transfer funds from the Clean Water SRF program to the Drinking Water SRF (DWSRF) program. The amount reserved for future transfers is up to 33% of the DWSRF capitalization grant award. The table below indicates the reserved transfer amount by award year. For FY24, the projected amount of funds to be transferred is $0, with no short- or long-term impacts on the fund. Justification for any transfers to the Drinking Water SRF program, including amount, type of funds, and fund impact, will be documented in a future Intended Use Plan (IUP). The intended use plan will reserve the authority to transfer funding to the DWSRF program. A Memorandum of Understanding between the divisions to process the actual transfers will require the Water Quality Board approval. TABLE 1a – TRANSFER AMOUNTS: BASE PROGRAM Award Year DWSRF Capitalization Grant Award Reserved Transfer Amount 2021 $11,001,000 $3,630,330 2022 $7,008,000 $2,312,640 2023 $4,938,000 $1,629,540 2024 $4,661,000 $1,538,130 7 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY TABLE 1b – TRANSFER AMOUNTS: GENERAL SUPPLEMENTAL & EMERGING CONTAMINANTS Award Year DWSRF General Supplemental Grant Award Reserved Transfer Amount DWSRF Emerging Contaminants Grant Award Reserved Transfer Amount 2022 $8,816,080 $2,909,306 $7,555,000 $2,493,150 2023 $21,055,000 $6,948,150 $7,640,000 $2,521,200 2024 $22,985,000 $7,585,050 $7,640,000 $2,521,200 2.2 Extended Financing Terms As of June 1, 2024, the Utah Water Quality Board has authorized extended financing to four SRF recipients: Brian Head Town, Lewiston City, Kane County Water Conservancy District, and Ash Creek Special Services District. The Division of Water Quality estimates that the long-term impact of extended financing on the SRF program is less than a 1% revolving level reduction over 60 years. This estimate does not include an adjustment for inflation. In cases of extreme hardship, the maximum affordable loan amount may not provide sufficient capital to cover project costs. In these cases, the Board would be requested to provide additional subsidization or hardship grant funds to make these projects feasible. Extended-term financing can increase the loan amount that a community qualifies for under the 1.4% median adjusted gross household income (MAGI) affordability guideline. The extended terms also benefit the SRF program by replacing an award of grant dollars with additional loan repayments, albeit in years 21- 30. 2.3 Additional Subsidization The FY24 capitalization grant may allow states to provide additional subsidization in the form of principal forgiveness and negative interest loans. A minimum of $430,200 and a maximum amount of $1,290,600 additional subsidization amounts will be outlined in the programmatic terms and conditions of the base award. The Water Quality Board may utilize the difference between the minimum and maximum additional subsidization amounts to refinance existing debt on projects which met CWSRF requirements at the time of construction. General supplemental awards require 49% additional subsidization. The additional subsidization amount for the FY24 supplemental award is $5,871,670. The Water Quality Board uses principal forgiveness agreements as its mechanism for awarding additional subsidization. The Board will prioritize projects for additional subsidization that benefit a municipality meeting the state’s affordability criteria and is currently allocating 100% of available subsidy to disadvantaged communities. The community must have a demonstrated hardship based on its cost of sewer service relative to 1.4% of the MAGI, unemployment, poverty level, or economic trends. To qualify as a disadvantaged community the estimated annual cost of sewer service for the average residential user must exceed 1.4% of the modified median adjusted gross income (Modified MAGI). This “hardship” definition is also in UAC R317-101-4.B.1 and is the CWSRF State Affordability Criteria. Table 2: FY24 List of SRF Projects identifies those projects that may meet this subsidization requirement. In addition, the Water Quality Board would consider an application seeking additional subsidy benefiting residential users qualifying under the hardship definition. Further, the Water Quality Board may authorize additional subsidization to additional projects presented for authorization during the year, such as those communities addressing water-efficiency or energy-efficiency goals, communities mitigating stormwater runoff, or to encourage sustainability. The Water Quality Board is currently working on a process for targeting disadvantaged communities. 8 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 2.4 Green Project Reserve The FY24 capitalization grant allocation requires that, to the extent that there are sufficient eligible projects applications, not less than 10% of the SRF funds shall be used for projects that address green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities. The State of Utah will meet this objective by identifying projects that meet green infrastructure requirements and providing funding, in whole or in part, as they proceed to construction. Future plans to ensure this requirement is met include creating a website dedicated to Green Project Reserve (GPR). This will create more visibility and transparency regarding the requirement. Table 1c identifies projects that may meet the Green Project Reserve requirement. TABLE 1c – FY24 LIST OF GREEN PROJECT RESERVE PROJECTS Recipient Assistance Amount GPR Amount Provo City (2024 Application) $21,000,000 application TBD Grantsville $34,000,000 application TBD Wolf Creek $ 6,404,000 TBD 2.5 Program Assurances The State of Utah must comply with its Operation Agreement with EPA and Utah Administrative Code, R-317-102, Utah Wastewater State Revolving Fund (SRF). Assurances include: • Section 602(a)-Environmental Reviews • Section 602(b)(3)-Certify binding commitments within one year • Section 602(b)(4)-Certify expeditious and timely expenditures • Section 602(b)(5)-First use for enforceable requirements The Division of Water Quality will complete reporting requirements through the Office of Water State Revolving Fund (OWSRF) for all binding commitments in the quarter that they are made. 9 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY CHAPTER 3. CWSRF Project Funding Eligible projects to be funded by the SRF include loans closed with remaining draws, authorized loans, and anticipated loans. Loans closed with remaining draws are projects that are currently under construction. Authorized loans are projects that have been authorized by the Utah Water Quality Board and are in the design phase. Anticipated loans are projects that are in the beginning stages of planning. Funding through the SRF can include federal dollars from the capitalization grant awards, principal repayments, interest payments, and investment fund interest earnings. Table 2 shows the projects that are expected to be funded from the CWSRF. Equivalency projects must meet specific programmatic requirements including federal cross cutters and “super cross-cutters,” Davis-Bacon wages, American Iron and Steel (AIS), NEPA-like environmental review, Single Audit Act, Disadvantaged Business Enterprise (DBE), and Architectural and Engineering Services procurement. The Bipartisan Infrastructure Law includes the Build America, Buy America Act (BABA) requirements which places additional requirements on the CWSRF Program. The United States must make significant investments to install, upgrade, or replace the public works infrastructure of the United States; with respect to investments in the infrastructure of the United States, taxpayers expect that their public works infrastructure will be produced in the United States by American workers. These new BABA requirements have been placed on federal equivalency infrastructure projects. As determined by the Water Quality Board, SRF loan recipients may be charged a hardship grant assessment in lieu of interest. Upon collection, the hardship grant assessment will be placed into the Federal Hardship Grant Fund. If a hardship grant assessment is derived from a loan funded directly by EPA Capitalization Grant monies, the assessment shall be used for purposes identified in 40 CFR Part 31.25. If a hardship grant assessment is derived from a loan funded by SRF loan repayments, the assessment may be used to provide grants to communities for projects that are economically unfeasible without grant assistance. 3.1 Long Term Goals 1. Provide a permanent funding source for water quality construction projects that supplements a community’s own resources and/or other funding sources. 2. Distribute SRF funds to projects with the highest water quality and infrastructure needs by evaluating and prioritizing proposed projects throughout the state. 3. Support EPA’s Sustainability Policy by balancing a community’s economic and water quality needs with the perpetuity of the SRF program. 4. Assist communities with all phases of a project, including sufficient planning, project design, environmental work, and construction. 3.2 Short Term Goals 1. Present eligible projects to the Water Quality Board for authorization and assist communities through the application and award process. 2. Collaborate with other agencies (e.g., Utah Permanent Community Impact Board, U.S. Department of Agriculture Rural Development, and U.S. Army Corps of Engineers) to sufficiently fund projects. 3. Solicit and fund eligible nonpoint source, storm water, and emerging contaminants projects. 4. Provide funding, equal to at least ten percent (10%) of the capitalization award, for energy efficiency and recycled water and water reuse projects to the extent such projects exist. 5. Increasing the profile of the SRF program as a potential funding source for low income and rural Utah communities. UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 10 TABLE 2 – LIST OF SRF PROJECTS Applicant Permit Number Needs Category Project Description Assistance Amount Funding Type Interest Rate Term (YRS) Equiv-alency Exceeds Affordability Criteria Additional Subsidy Amount (PF) Green Project Reserve Amount Binding Commitment/ Construction Start Initiation of Operation 1st Round: Base Program Moab City UT0020419 II- Advanced Treatment Wastewater plant upgrade $14,200,000 1st Round 1.15% 20 Yes No $502,937 17-Apr 19-Nov 2nd Round: Revolved Funds Millville City UT0023205 IV-A New Collectors Refinance of sewer construction loan $1,261,000 2nd Round 0% 30 No Yes $3,750,000 20-Mar 20-Dec Millville City UT0023205 IV-A New Collectors Construction of sewer collection system $5,200,000 2nd Round 0% 30 No Yes $4,500,000 20-Mar 25-Nov Mountain Green UT0024732 II- Advanced Treatment Wastewater plant upgrade $7,000,000 2nd Round 1.30% 30 No No 22-Jan 24-Jan General Supplemental Hanksville UTOP00119 I-Secondary Treatment Lagoon reconstruction $0 General Supp TBD TBD Yes Yes $1,694,600 24-Feb TBD Combined Funding Sources Ash Creek SSD TBD IV-A New Collectors Virgin Town - Collection trunkline $6,876,000 1st & 2nd Round General Supp 0% 30 Yes No TBD TBD Beaver UTOP00104 I-Secondary Treatment Sewer collection and lagoon infrastructure improvements $7,351,325 1st & 2nd Round General Supp TBD TBD TBD No TBD TBD Brian Head Town UT0026158 IV-A New Collectors Construction of new sewer collection lines $ 1,900,000 1st & 2nd Round 4% 30 Yes No TBD TBD Central Valley WRF UT0024392 II- Advanced Treatment CVWRF WRF Upgrades $65,100,000 1st & 2nd Round 1.50% 20 Yes No 18-Dec 24-Dec Corinne City UT0020931 III-B Sewer Replacement Collection and treatment system improvements $7,234,900 1st & 2nd Round TBD TBD TBD Yes TBD TBD Grantsville UT0021130 II- Advanced Treatment Construction of MBR treatment plant $34,000,000 1st & 2nd Round General Supp TBD TBD TBD TBD TBD TBD Green River City UT0025771 I-Secondary Treatment Sewer collection and lagoon infrastructure improvements $5,000,000 1st & 2nd Round General Supp TBD TBD TBD Yes TBD TBD UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 11 Applicant Permit Number Needs Category Project Description Assistance Amount Funding Type Interest Rate Term (YRS) Equivalency Exceeds Affordability Criteria Additional Subsidy Amount (PF) Green Project Reserve Amount Binding Commitment/ Construction Start Initiation of Operation Combined Funding Sources Lewiston UT0020214 III-B Sewer Replacement Construction of trunkline $400,000 1st & 2nd Round General Supp 0% 30 Yes Yes $1,000,000 TBD TBD Monticello City UT0024503 I-Secondary Treatment Wastewater plant upgrade $1,214,000 1st & 2nd Round 2.5% 20 TBD No TBD TBD Mt Pleasant UTOP00128 I-Secondary Treatment Wastewater plant upgrade $2,535,000 1st & 2nd Round 2.5% 20 TBD No TBD TBD North Fork SSD UTOP00305 II- Advanced Treatment Wastewater plant upgrade $2,850,000 1st & 2nd Round TBD TBD TBD No TBD TBD North Logan UT002199920 III-B Sewer Replacement Upgrade of sewer trunkline $3,500,000 1st & 2nd Round General Supp 2% 30 Yes No TBD TBD Payson City UT0020427 II- Advanced Treatment Wastewater plant upgrade $13,500,000 1st & 2nd Round General Supp 0.50% 20 Yes Yes $1,000,000 Being Assessed 22-Feb 25-Jan Provo City UT0021717 II- Advanced Treatment Construction of new treatment plant $85,800,000 1st & 2nd Round General Supp 0.50% 20 Yes Yes $7,000,000 $19,633,000 18-Dec 25-Jan Provo City (2024) UT0021717 II- Advanced Treatment Construction of third bioreactor $50,000,000 1st & 2nd Round General Supp TBD TBD TBD No TBD TBD South Salt Lake City See CVWRF II- Advanced Treatment CVWRF WRF Upgrades $2,413,000 1st & 2nd Round 0% 20 Yes Yes $3,760,000 18-Dec 24-Dec Wolf Creek WSD TBD X-Water Reuse Construction of reuse storage ponds $6,404,000 1st & 2nd Round General Supp 2.5% 20 Yes No Being Assessed TBD TBD Emerging Contaminants Snyderville Basin SID UT0020001 II- Advanced Treatment Construction of PFAS treatment pilot plant $1,700,000 Emerging Contaminants N/A N/A N/A N/A 2025-2026 Totals $325,439,225 $22,704,600 $20,135,937 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 12 CHAPTER 4. Sewer Overflow and Stormwater Reuse Municipal Grants Program The Utah Sewer Overflow and Stormwater Reuse Municipal Grants (OSG) Program is a federal program designed to provide funds for infrastructure needs to address combined sewer overflows, sanitary sewer overflows (SSO), and stormwater management. The OSG program has been authorized as grants for the design and construction of green infrastructure stormwater projects. In July 2023, the Division applied for $213,000 in grant funding from FFY22. The OSG program prioritizes green project reserve eligible projects in rural and distressed communities. As of the August 2023 allocation memo, non-federal cost share requirements no longer apply to portions of the grant that support rural or distressed communities. Therefore, a 20% cost share will only be applied to the portion of the total project which does not directly support these communities. For urban and non-distressed communities, the program requires the community to provide a 20% cost share. In addition, 15% of the funds are required to go to rural communities and 10% of the funds must go to distressed communities. For the OSG program, rural is defined as communities under 10,000 in population and distressed is defined as a community with sewer rates exceeding 1.4% of the modified median adjusted gross household income (MAGI). Please refer to Tables 3a and 3b for a list of projects to be funded from the OSG program. TABLE 3a – LIST OF FUNDED PROJECTS Applicant Distressed/ Rural Assistance Amount Hardship Grant Required Local Cost Share Binding Commitment/ Construction Start Construction End Authorized Projects Herriman City - Autumn Detention Pond Retrofit No/No $54,960 $36,640 TBD No later than 24- Nov Herriman City - Butterfield Detention Pond Retrofit No/No $11,640 $7,760 TBD No later than 24- Nov Herriman City - City Hall Parking Lot Stormwater Retrofit No/No $47,770 $19,508 TBD No later than 24- Nov Ogden City - 3300 South 1325 West Yes/No $140,000 $35,000 24-Jul 24-Sept Washington Terrace Bioswale at Rohmer Park No/Yes $103,230 $21,000 23-Jun No later than 24- Nov Totals $357,600 $56,000 $63,908 TABLE 3b – LIST OF POTENTIAL FUTURE PROJECTS Applicant Project Project Cost Herriman City Main St Parking Lot Retrofit $27,200 Herriman City Butterfield Park and Public Works Yard Storm Drain Retrofit $173,500 South Salt Lake City Vitro Ditch $2,600,000 Totals $2,800,700 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 13 CHAPTER 5. Utah Wastewater Loan Program The Utah Wastewater Loan program is a state-funded loan program similar to the SRF. Revenue for the UWLF is derived from sales tax dollars and principal repayments. Monies may be authorized in the form of loans or interest-rate buydowns. Projects eligible for funding through the Utah Wastewater Loan program have been divided into three categories: closed loans with remaining draws, authorized loans, and anticipated loans. Closed loans with remaining draws are projects that have held loan closing and are currently under construction. Authorized loans are those projects which have received authorization from the Utah Water Quality Board but have not yet held loan closing and are still in the planning or design phase. Anticipated loans are those projects that may be presented to the Utah Quality Board for authorization in the next fiscal year. Please refer to Table 4 for a list of projects to be funded from the Utah Wastewater Loan Fund. TABLE 4 – LIST OF FY24 UTAH WASTEWATER LOAN FUND PROJECTS Applicant Assistance Amount Interest Rate Term (years) Binding Commitment Construction Start Construction End Closed Loans with Remaining Draws Grantsville $1,000,000 0% 20 24-Feb Hanksville $350,000 0% 30 24-Feb Kane County $549,000 0% 30 24-May South Salt Lake $7,867,000 0% 20 18-Dec 20-Feb 24-Jun Spanish Fork City $4,500,000 1.12 20 24-Apr 24-Dec Authorized Loans Long Valley $1,470,000 1.5% 20 TBD TBD TBD Anticipated Loans N/A Total $15,736,000 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 14 CHAPTER 6. Hardship Grant Fund The State of Utah provides assistance from the Hardship Grant Fund for several types of projects. First, hardship grant funds may be authorized as planning advances or grants and design advances or grants. Advances are repaid once construction funding has been secured through a loan closing. Second, funds may be awarded as hardship construction grants to entities that may not otherwise be able to afford to complete an eligible project. The Water Quality Board may consider authorizing a hardship grant when the estimated annual cost of sewer service exceeds 1.4% of the local MAGI. Third, hardship grants may be awarded for water quality improvement projects such as nonpoint source, water quality studies, and educational outreach efforts. Projects eligible for hardship grant funds may be added to the list once authorization has been received from the Board. Please refer to Table 5 for a list of projects to be funded from the Hardship Grant Fund. TABLE 5 – LIST OF FY24 HARDSHIP GRANT FUND PROJECTS Applicant Assistance Amount Type Hardship Grants Big Water Town $52,500 Planning Grant Corinne City $102,900 Planning Advance Davis County Health Department $105,313 Planning Grant Delta City $200,000 Short Term Design Loan Delta City $200,000 Design Grant Daggett County $60,000 Short Term Design Loan Daggett County $95,000 Planning Grant Grantsville $300,000 Design Advance Hanksville Town $162,000 Design Advance Hinckley Town $15,000 Planning Advance Hyrum City $74,900 Short Term Loan Kanab City $29,800 Planning Advance Kane County Water Conservancy District $281,000 Hardship Grant Lewiston City $274,000 Design/Construction Grant Long Valley Sewer Improvement District $84,300 Design Advance Millville City $1,000,000 Design/Construction Grant Mt. Pleasant $135,000 Hardship Grant Richmond City $99,800 Short Term Loan Spanish Fork $500,000 Construction Grant Spring City $289,000 Design Advance Town of Elwood $18,200 Planning Advance Grant Town of Rockville $27,172 Planning Grant Town of Stockton $20,000 Planning Grant Virgin Town $60,000 Short Term Loan UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 15 Non-Point Source Grants Applicant Assistance Balance Type Utah Department of Agriculture $5,278 NPS Grant DEQ - Ammonia Criteria Study $27,242 NPS Grant DEQ - Utah Lake Water Quality Study $348,301 NPS Grant USU - Historic Trophic State/Nutrient Concentrations Paleo $4,715 NPS Grant FY19 – FY24 Remaining Payments $1,734,716 Various NPS Grants FY25 – New Projects $1,000,000 Various NPS Grants Total $7,306,137 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 16 CHAPTER 7. Payment Schedule Utah’s CWSRF has met "first use" requirements of Section 602(b) (5). CWSRF funds will be distributed using the method, criteria, and eligible activities that are outlined in Section R-317-101 and 102 of the Utah Administrative Code. The methods and criteria provide affordable assistance as well as maximum benefit to the long-term viability of the fund. If the dollar amount of projects in the FY24 Intended Use Plan exceeds the actual amount of funds available during the planning period, one of the following may occur: • Projects listed may not be funded. • Projects may be funded using available credit enhancement techniques. • Projects may need to be delayed until funds are available. Please see the CASH FLOW PROJECTIONS for the detail of revenue and expenses for the State Revolving Fund, Utah Wastewater Loan Fund, and Hardship Grant Fund. UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 17 7.1 Cash Flow Projections – State Revolving Fund TABLE 6 – FY24 STATE REVOLVING FUND STATE REVOLVING FUND (SRF) Funds Available 2024 2025 2026 Capitalization Grants Awards (FFY22-23) $ 12,732,240 - State Match (FFY22-23) $ 1,728,200 - Future Capitalization Grants (est.) - $22,002,520 $ 11,277,424 Future State Match (est.) - $3,494,900 $2,433,805 SRF - 2nd Round $ 14,452,023 $ (33,546,246) $6,056,368 Interest Earnings at 5.4314% $ 65,412 - - Loan Repayments (5255) - $17,307,194 $ 17,225,194 Total Funds Available $28,977,875 $9,258,368 $36,992,791 Project Obligations Hanksville Town $ (1,718,000) - - Millville City $ (2,750,000) Moab City $ (80,000) Mountain Green $ (584,000) - - Payson City $ (14,425,000) - - Provo City $ (17,656,121) - - South Salt Lake City (A) $ (2,584,000) Loan Authorizations Ash Creek SSD - Virgin $ (6,876,000) - - Brian Head $ (1,900,000) Lewiston $ (3,500,000) Long Valley $ (1,250,000) - - North Logan $ (3,500,000) - - Monticello $ (1,214,000) Mt. Pleasant $ (2,535,000) Wolf Creek $ (3,202,000) $ (3,202,000) Total Obligations $ (62,524,121) $ (3,202,000) SRF Unobligated Funds $ (33,546,246) $6,056,368 $36,992,791 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 18 7.2 Cash Flow Projections – Utah Wastewater Loan Fund TABLE 7 – FY24 UTAH WASTEWATER LOAN FUND UTAH WASTEWATER LOAN FUND (UWLF) Funds Available 2024 2025 2026 UWLF $37,793,212 $23,422,012 $24,228,124 Sales Tax Revenue - $3,587,500 $3,587,500 Loan Repayments (5260) - $2,638,912 $2,565,360 Total Funds Available $37,793,212 $29,648,424 $30,380,984 General Obligations State Match Transfers $ (1,728,200) $ (3,494,900) $ (2,433,805) DWQ Administrative Expenses - $ (1,925,400) $ (1,925,400) Project Obligations Grantsville $ (750,000) - - Hanksville $ (150,000) - - South Salt Lake City (B) $ (4,891,000) - - South Salt Lake City (C) $ (982,000) - - Spanish Fork $ (4,400,000) - - Loan Authorizations Long Valley $ (1,470,000) - - Total Obligations $ (14,371,200) $ (5,420,300) $ (4,359,205) UWLF Unobligated Funds $23,422,012 $24,228,124 $26,021,779 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 19 7.3 Cash Flow Projections – Hardship Grant Funds TABLE 8 – FY24 HARDSHIP GRANT FUND HARDSHIP GRANT FUND (HGF) Funds Available 2024 2025 2026 Beginning Balance - $3,712,310 $3,761,423 Federal HGF Beginning Balance (5250) $2,352,774 - - State HGF Beginning Balance (5265) $7,105,968 - - Hardship Grant Assessments (5255) - $753,214 $657,624 Interest Payments (5260) - $295,899 $276,384 Total Funds Available $9,458,742 $4,761,423 $4,695,431 Financial Assistance Project Obligations Delta - Design Grant $ (73,100) - - Dutch John - Planning $ (95,000) - - Dutch John - HGF Loan $ (60,000) - - Eagle Mountain City - Construction Grant $ (510,000) - - Elwood - Planning $ (18,200) - - Grantsville - Design Advance $ (300,000) - - Kanab City Planning Advance $ (29,800) - - Kane County - Hardship Grant $ (281,000) - - Long Valley - Design $ (84,300) - - Millville City - Construction Grant $ (1,000,000) - - Rockville Town - Hardship Grant $ (18,832) - - Spanish Fork - Hardship Grant $ (500,000) - - Spring City - Design Advance $ (56,070) - - Hardship Grant Authorizations Corinne City - Planning Advance $ (135,000) - - Hyrum - Short Term Loan $ (99,800) - - Mt. Pleasant - Hardship Grant $ (74,900) - - Richmond - Short Term Loan $ (60,000) - - Virgin Town - Short Term Loan $ (102,900) - - Non-Point Source/Hardship Grant Obligations OSG Cost Share Balances (FY20-21) $ (56,000) - - McKees ARDL interest-rate buy down $ (55,261) - - Munk Dairy ARDL interest-rate buy down $ (16,017) - - (FY12) Utah Department of Agriculture $ (5,278) - - (FY15) DEQ - Ammonia Criteria Study $ (27,242) - - (FY17) DEQ - Utah Lake Water Quality Study $ (348,301) - - (FY19) USU - Nutrient Concentrations Paleolimnology of Utah Lake $ (4,715) - - UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 20 FY 2019 - Remaining Payments $ (45,522) - - FY 2020 - Remaining Payments $ (36,548) - - FY 2021 - Remaining Payments $ (84,796) - - FY 2022 - Remaining Payments $ (395,915) - - FY 2023 - Remaining Payments $ (452,896) - - FY 2024 - Remaining Payments $ (719,039) - - Future NPS Annual Allocations - ($1,000,000) ($1,000,000) Total Obligations $ (5,746,433) ($1,000,000) ($1,000,000) HGF Unobligated Funds $ 3,712,310 $3,761,423 $3,695,431 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 21 CHAPTER 8. SRF Sources & Use Table Title VI section 602(b)(4) of the Clean Water Act requires the State to expend all CWSRF funds in an “expeditious and timely” manner. This requirement applies to the entire State Revolving Fund, not just the federal grants. The SRF Sources and Use table below demonstrates the sources and uses of all funds in the SRF. TABLE 9 – SRF SOURCES AND USE TABLE STATE REVOLVING FUND (SRF) SFY 2025 SFY 2026 SFY 2027 Beginning Fund Balance $14,515,590 $ (94,838,922) $ (104,010,020) Undrawn Federal Funds – 2022 Base Cap Grant $19,727 - - Undrawn Federal Funds – 2022 General Supplemental Cap Grant $5,840 - - New Federal Awards – Base Cap Grants $3,952,000 $4,302,000 $4,302,000 New Federal Awards – General Supplemental Cap Grants $32,344,000 $12,169,025 $12,169,025 State Match – Base Program $790,400 $860,400 $860,400 State Match – General Supplemental $4,432,700 $2,433,805 $2,433,805 Repayments from SRF Loans $17,307,194 $17,225,194 $16,977,794 Interest Earnings $722,647 $0 $0 Total Fund Revenue $74,090,097 $ (57,848,498) $ (67,266,996) Projected Disbursements for Loan Obligations $ (39,797,121) - - Projected Disbursements for Loan Authorizations $ (25,929,000) - - Projected Disbursements for Planned Projects $ (101,667,225) $ (45,585,081) $ (20,000,000) Administration $ (1,535,673) $ (576,441) $ (531,601) Total Estimated Expenses $ (168,929,019) $ (46,161,522) $ (20,531,601) Total Funds Available for Projects $ (94,838,922) $ (104,010,020) $ (87,798,597) UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 22 CHAPTER 9. Project Priority List (PPL) Pursuant to 40 CFR Part 31.3115, all wastewater treatment works projects must appear on the Project Priority List to be eligible for funding assistance. After applications are accepted, they are scored, added to the PPL, and then presented to the Board. The scoring system assesses projects based on various factors, including environmental benefits, public health impact, project readiness, and special consideration, as identified in R317-100-3. See Appendix C, Project Priority Sheet. Please refer to Table 10 for the list of projects for which funding applications have been submitted. State of Utah Wastewater Project Assistance Program Project Priority List As of August 12, 2024 TABLE 10 – FY24 PROJECT PRIORITY LIST Rank Project Name Funding Authorized Total Points Point Categories Project Need Potential Improvement Population Affected Special Consideration 1 Grantsville R 140 50 23 7 60 2 Provo R 131 50 18 10 60 3 Beaver O 109 40 5 4 60 4 Corinne City O 107 50 16 1 40 5 North Logan X 86 25 14 7 40 6 Mt Pleasant X 79 10 5 4 60 7 Ash Creek - Virgin Town X 64 25 18 1 20 8 Monticello X 61 0 19 2 40 9 Lewiston City X 60 25 14 1 20 10 Wolf Creek X 57 10 5 2 40 11 North Fork SSD O 36 10 5 1 20 X - funding authorized; R - Additional Funding Requested; O - Funding Not Yet Authorized UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 23 Appendix A. Financial Burden Policy UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 24 Appendix A. Financial Burden Policy UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 25 Appendix A. Financial Burden Policy UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 26 Appendix B. Interest Rate Factors Table 11 provides how interest rate recommendations are determined for each project. Recommended discounts are given in similar tables for individual projects. Consideration begins with the 20-year market rate. TABLE 11 – INTEREST RATE FACTORS *Staff has historically interpreted this to only apply to projects that serve existing primary residences and not for development. ** Staff has historically interpreted this rate reduction for economic hardship based on the Financial Burden Indicator. Staff has estimated a rate reduction of 0%-50% for Low burden, 0%-75% for Medium burden, and 0%-100% for High burden. Appendix C. Project Priority Sheet UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 27 Appendix C. Project Priority Sheet UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 28 Appendix C. Project Priority Sheet UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 29 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY 30 Appendix C. Project Priority Sheet