Division of Public Health

1. Division of Public Health Drinking Water State Revolving Fund

2. Background • Safe Drinking Water Act (SDWA) passed in 1974, amended in 1986 and 1996 • Designed to protect public health Established health-based standards protecting against wide range of contaminants • through regulation of the public drinking water supplies.

3. Safe Drinking Water Act • ODW enforces the Safe Drinking Water Act for Delaware.  • Delaware was granted primacy in 1978.  • Primacy means our regulations are properly adopted, enforceable and at least as stringent as EPA regulations. • 16 Delaware Code 122(3)(c)

4. Role of the DWSRF • EPA provides grants used to support low-interest loans • State provides technical, managerial and financial assistance to water systems • Delivered thru focused set asides programs • Provisions for extra assistance for disadvantaged communities with greater economic needs

5. Why in Public Health? • DWSRF is located within the Primacy agency that administers the Public Water System Supervision (PWSS) program • PWSS maintains drinking water regulations, tracks system compliance and enforcement of regulations

6. DWSRF Priorities • Public Health Protection • Compliance with drinking water standards • Affordability

7. DWSRF Annual Cycle - Notice of Intent or Pre-Application request • Collection, scoring and ranking of applications • Development of Intended Use Plans and Hosting of Public Hearings or Workshops • Writing the Budgets and Grant Application • Issuing of Binding Commitments and loans • Continuing project management and sub -recipient monitoring

8. DWSRF Grant Basics • State must match 20% of the Federal grant • Request match through State Budget process • Grant has five elements • Loan portion • 2% Technical Assistance for Small Systems • 4% Program Administration • 10% Program Management (Additional 1:1 match required) • 15% Capacity Development

9. Loan Portion - Starting July 2013 DNREC will manage loan portfolio, loan disbursements and repayments • The DWSRF Administrator, Heather Warren • Develops customer/community relationships • Assesses the needs of the customer/community • Orchestrates the loan process • Hosts public hearings and workshops

10. 2% Technical Assistance • This set aside is used to fund training programs for the water systems operators • Currently funds two technical assistance providers • Del-Tech Environmental Training Center • to trainand certify Delaware’s Water Operators • Delaware Rural Water Association • provide on-site technical assistance to over 65 small water systems

11. 4% Program Administration • This set aside is geared to paying the cost of running the Loan program • In the past it paid legal expenses and other costs associated with loans and outreach • The current grant 4% is consumed solely by DNREC salaries

12. 10% Program Management • Supplement the PWSS program activities; • enforcement of SDWA regulations • data management • laboratory certification • compliance assistance • operator certification program • Underground Injection Control Program (DNREC) • This regulatory program controls real and potential sources of ground water contamination. • Requires a dollar for dollar “soft “ match

13. 15% Capacity Development • Capacity Development & DWSRF loan recipients • Assists drinking water systems and DWSRF applicants in building technical, financial, and managerial capacity. • Source Water Protection (DNREC) • Delaware Wellhead Protection Program (WHPP) • Source Water Assessment and Protection Program (SWAPP)

14. Project Management • Engineering Reviews, Project Management and Davis Bacon Wage Certification are handled by our Public Health Engineering Section, led by Doug Lodge • The Public Water System Supervision (PWSS), Capacity Development and Operator Certification programs are managed by the Office of Drinking Water (ODW), led by Ed Hallock

15. Projected Demand Delaware’s 20-year demandis:  • Large Community Water Systems - $73.5M • Small Community Water Systems - $291.6M • Non-profit non-community systems - $3.7M • Total over the next 20 years = $368.8 million • According to the Fifth Report to Congress of the Drinking Water Infrastructure Needs Survey and Assessment released in April 2013.

16. Drinking Water Systems • DPH/ODW regulates approximately 485 public water systems • 214 community water systems • 187 transient non-community systems • 84 non-transient non-community water systems

17. System Compliance • Delaware is more stringent than the EPA in several areas; • Established standards for MTBE and Nickel • Our MCL for PCE, TCE and vinyl chloride is lower than EPA’s standards.  • In 2012 16.8% of Delawareans served drinking water by a community water system were exposed to a health-related contaminant above the MCL and 17.3% of the water systems had at least one violation in 2012.

18. CPCNs • The Public Service Commission issues Certificate of Public Convenience and Necessity (CPCNs) • ODW provides comment on all new applications for a CPCN

19. Drinking Water Supply and Source Water Protection • ODW works closely with DNREC on source water protection activities - Cooperate regularly on monitoring events when contamination is either suspected or has been identified • DWSRF has provided over $5M to DNREC Source Water Protection activities

20. DWSRF vs. PWSS • Congress established the DWSRF in the 1996 Amendments • Created set asides because drinking water programs were underfunded • 10% set aside designed to supplement the PWSS grant and ensure states could maintain a drinking water program • 10% set aside 1:1 match requirement allows states to use all of the 1993 PWSS match and any overmatch from the current year PWSS grant

21. Total $$ To date, the program has closed over $161M in loans.

22. Borrowers • 30 municipalities • 1 private • Wilkerson Water Co • 3 investor-owned • Artesian • Tidewater • United

23. Ineligible Projects Per 40 CFR Parts 9 and 35 Dams Reservoirs Water Rights Future Population Growth Equipment that’s useful life will not last the life of the loan

24. Smallest Loan 1/16/2001 Closed a $34,321 loan with Granada Mobile Home Park for main upgrades and nitrate removal

25. Largest Loan 2/20/09 Closed a $18,975,000 loan with the City of Wilmington for new membranes at the Brandywine Treatment Plant

26. DWSRF Loans

27. DWSRF Loans (pg 2)

28. DWSRF Loans (pg 3)

29. DWSRF Loans (pg 4)

30. DWSRF Loans (pg 5)

31. Questions