Securing Oklahoma's Water Future: Infrastructure Financing Strategies

1. SAFE, ABUNDANT WATER IS A PRIORITY FOR OKLAHOMA’S FUTUREOklahoma Water Resources Board Infrastructure Financing Strategies Western States Water Council March 19, 2019 • Julie Cunningham • Executive Director

2. Oklahoma Water Resources Board To protect and enhance the quality of life for Oklahomans by managing and improving the state’s water resources to ensure clean and reliable water supplies, a strong economy, and a safe and healthy environment. Governor-appointed Board of Directors 9-member Executive Director Administrative Services Financial Assistance Water Quality & Monitoring Planning & Management

3. Financial Assistance Division • Funding Sources— • Federal dollars • Debt Issuance • Loan Repayments • Interest on Bond Loan Program Reserve • General appropriations***

4. CWSRF Loan Program • Eligible Entities: • Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 Loan program subsidized by a grant from EPA intended to implement the Clean Water Act • Eligible Projects (may include, not limited to): • Wastewater treatment & Collection • Water Meters • Non-point Source • Stormwater • Dam Rehabilitation • Water Reuse 40% below AAA market rate

5. CWSRF Program Updates • Call for Projects for SFY 2020 Project Priority List (PPL) • Public Meeting May 29th @ 1pm Loan Forgiveness Available • Population 3,300 or less • Phase I projects (Planning & Design): Must result in a Permit to Construct • Phase II projects (Construction): Priority given to entities that received Phase I this year

6. CWSRF – OKC Utilities Trust - Atoka Reservoir • Project to increase the capacity of the spillway & replace the existing chute. • Improvements to address stormwater drainage issues. • Project Price Tag = $53,250,000

7. Eligible Entities: • Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 DWSRF Loan Program Co-administered with DEQ Loan program subsidized by a grant from EPA intended to implement the Safe Drinking Water Act • Eligible Projects (may include, not limited to): • Drinking Water Treatment • Distribution • Water Meters • Water Storage • Regionalization/Consolidation • Disinfection By-product (DBP) Correction

8. DWSRF Loan Program 30% below AAA market rate Loan Forgiveness Available • Up to $100,000 forgiven • For projects to address Disinfectant Byproduct violations • Phase I is available to Parent systems

9. DWSRF – So. Delaware County Regional Water Authority Regionalization through construction of new treatment plant and additional improvements. Project Price Tag = $15.7 Million OWRB Project Amount = $3 Million DWSRF Loan Forgiveness = $1.8 Million Other Funds: RUS Loan - $6.7 Million RUS Grant - $3.9 Million IHS Grant - $1.6 Million Cherokee Nation Grant - $347K Local Funds - $90K

10. FAP Loan Program • Eligible Entities: • Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 State revenue bond loan program • Eligible Projects • Any project related to water and/or sewer system improvements or refinancing of existing debt of an eligible entity for these project types. • Can combine water/sewer projects in one loan At AAA market rate

11. FAP Loan Program Updates New, Flexible Local Reserve Criteria: • Up to 10% of the loan amount • Super Debt Coverage Ratio of 1.4x instead of 1.25x • Minimum credit rating of A- affirmed in last 18 months • Surety policy in the amount of not less than the cash reserve requirement

12. Eligible Projects: • Water supply reservoirs, storage tanks, distribution systems, water/wastewater treatment systems, collection systems… • Eligible Entities: • Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 Emergency Grants Point based program designed to assist systems facing an EMERGENCY as designated in our rules which threaten life, health or property • Maximum grant available $100,000 • 15% local contribution • Open funding cycle – as funds are available • 60 point minimum for approval up to 120

13. Eligible Entities: • Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 • Eligible Projects: • Water treatment & distribution, wastewater treatment & collection, water acquisition… REAP Grants Point based program designed to assist smaller systems that lack sufficient fiscal capacity • UPDATES: • Rule Change • Adds Sustainability as a Scoring category • Increases maximum points available from 115 to 125 • Maximum grant available $150,000 • Available for cities or towns with a population of 7,000 or less (population of 1,750 or less have higher priority) • Available for Rural Water Districts with less than 525 non-pasture customers

14. REAP Grants • 10 points if you have and have implemented a FSP • 6 points if you have a FSP but have not yet implemented • 3 points if you have not developed a FSP but are willing to develop and implement one

17. Oklahoma Comprehensive Water Plan • 50-year plan characterizing water supplies, demands, options and public policy to meet the needs of all Oklahomans • 5-year public input and technical studies process with numerous stakeholders and partners • Overarching State Water Policy Recommendations • Wealth of technical data, information and many technical studies through numerous workgroups • 13 Watershed Planning Region Reports

18. OCWP Priority RecommendationInfrastructure Financing • Address projected $82+ billion water/wastewater infrastructure need by 2060- new and rehabilitation • OWRB’s 5 grant & AAA-rated loan capacity to satisfy 60% and specifically address small and medium communities. • In 2012, SQ 764 established Water Infrastructure Credit Enhancement Reserve Fund to provide additional leveraging capacity to fund more projects!

19. Oklahoma Funding Agency Coordinating Team • Fed. & state water financing agencies—drinking water,sewer, and green projects for public entities. • Meet quarterly to identify best funding source, cross-train funding agencies, adopt streamline application/guidance.

20. Capacity Development Assistance • Contract with ORWA provides technical assistance, operator/member training, sustainability planning. • Borrower meetings provide compliance guidance, program updates, and upcoming funding opportunities. • Educate systems on funding solutions to help meet Oklahoma’s Water for 2060 goal through non-point source, stormwater, green infrastructure, water/ energy conservation and reuse • Offering new no-cost cloud solution to help loan recipients manage federal labor and contract reporting (Davis-Bacon) • OWRB Marketing Plan selected for EPA pilot program re: state revolving fund marketing and outreach.

21. Financial Assistance Dashboard

22. Thank You! Oklahoma Water Resources Board 3800 North Classen Boulevard Oklahoma City, OK 73118 405.530.8800• www.owrb.ok.gov Julie Cunningham – Executive Director Oklahoma Water Resources Board 3800 North Classen Boulevard Oklahoma City, OK 73118 405.530.8800 • www.owrb.ok.gov

23. 2 grant programs 3 loan programs Emergency Grants Rural Economic Action Plan Grants Financial Assistance Loan Program (FAP) Clean Water State Revolving Fund (CWSRF) Drinking Water State Revolving Fund (DWSRF) for water and wastewater infrastructure