July 17, 2009

RE: Notice of available financing for projects - Clean Water State Revolving Fund (CWSRF)

Dear Interested Party:

The Department of Environmental Protection (MassDEP) is pleased to announce the availability of financing for Clean Water infrastructure projects through the Clean Water State Revolving Fund (CWSRF) loan program for calendar year 2010. Financial assistance will be provided in the form of 2% interest loans for water pollution abatement projects. The amount of financing available for the program in calendar year 2010 will be determined just prior to the publishing of the Draft Intended Use Plan. Financing is available for Construction, Construction Management and Planning costs. Design will not be financed through this program from 2010 CWSRF financial assistance.

The MassDEP reviews and approves project proposals, selecting those that will receive financial assistance on the basis of a competitive process. Selection criteria are measures of significant public health and water quality benefits and the ability to achieve and maintain compliance with permit requirements. Proponents demonstrating these attributes will receive the highest rankings and are the focus of this solicitation. Proponents should fill out and submit the Project Evaluation Form (PEF), which is available at: http://mass.gov/dep/water/approvals/srfforms.htm.

There have been two substantial changes to the CWSRF solicitation for 2010. The first is that new rating criteria with a point value of up to 22 points have been made available for projects that promote the Commonwealth's goals of energy efficiency and incorporation of renewable energy components at wastewater facilities.  The second change is that previously assigned maximum points available relative to Sustainable Development principles under the Commonwealth Capital application have been adjusted to better reflect the successful incorporation of this program's goals as a standard operating consideration within the CWSRF solicitation process.  Applicants should note that the Commonwealth Capital Application process is separate from the SRF process. Complete information concerning the Commonwealth Capital Application is available here. Additional Information regarding the Growth District Initiative can be found here. The Commonwealth Capital Application should be submitted no later than close of business on October 15, 2009.

The Project Rating criteria that the Department will employ and the instructions and guidance for preparing the 2009 CWSRF Project Evaluation Form can also be found at: http://mass.gov/dep/water/approvals/surffms.htm#srf. Hard copies of the PEF are available at MassDEP offices (Regional Offices and Boston).

Of special note to this year's IUP:

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 Development and, where applicable, any regional land use regulatory entity, intended to limit wastewater flows to the amount authorized under zoning and wastewater regulations as of the date of the approval of the CWMP.

Any borrower on the 2010 IUP who wishes to seek 0% funding must submit documentation describing how conditions contained in the 5 provisions listed above are met for their project(s). MassDEP will review all submitted information to determine the project(s)' eligibility for the reduced rate financing prior to committing to permanent financing. The Department is developing regulations that will clarify and define the process for pursuing and attaining this reduced funding option.

If Congress provides a second round of Stimulus funding through the SRF, MassDEP will use the 2010 PEF solicitation to provide the eligible proposals to access that funding.  If Green infrastructure is a component of a second round, we would expect to nominate proposals in two categories.  First, we have added energy efficiency and renewable energy generation criteria specifically to encourage system operators to include that type of work in their proposals.  Second, as has been the case for some years, non-traditional water quality improvement projects are eligible for SRF financing.  We anticipate that most if not all of a 20% green infrastructure set-aside for a second round of Stimulus could be met in that manner.

If you have any questions about the forms or the program, you are encouraged to contact the appropriate regional DMS Lead staff person.

Northeast Region: Kevin Brander (978-694-3236)
Southeast Region: Richard Keith (508-946-2784)
Central Region: Paul Anderson (508-767-2802)
Western Region: Deirdre Cabral (413-755-2148)

Applicants should deliver one (1) complete paper copy and one (1) electronic version of the PEF on compact disc, preferably in a PDF format, no later than 12:00 noon on Friday, September 18, 2009 to:

David A. DeLorenzo, Deputy Director
Division of Municipal Services
1 Winter Street, 6th Floor
Boston, MA 02108

Sincerely,

David A. DeLorenzo, Deputy Director
Division of Municipal Services

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