Microsoft Word - FFY-2022 IIJA_BIL Lead Service Line Replacement IUP (Clean)

STATE OF MISSISSIPPI

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD

Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board

Part 14: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DW SRF Lead Service Line Replacement Intended Use Plan

STATE OF MISSISSIPPI

DRINKING WATER SYSTEMS IMPROVEMENTS

REVOLVING LOAN FUND PROGRAM

BIL LEAD SERVICE LINE REPLACEMENT

INTENDED USE PLAN FOR FFY-2022

Approved by the Board

7/28/2023

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

iii

STATE OF MISSISSIPPI

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD

Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board

Part 14: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF

Lead Service Line Replacement Intended Use Plan

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

BIL LEAD SERVICE LINE REPLACEMENT

INTENDED USE PLAN FOR FFY-2022

TABLE OF CONTENTS

I. INTRODUCTION .............................................................................................................................. 1

A. STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND .......................... 1

B. PROGRAM OVERVIEW .................................................................................................................... 2

C. PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES .............................................................. 2

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS

REVOLVING LOAN FUND (DWSIRLF) PROGRAM – LSLR FUND ............................................... 3

III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ......................................................................... 3

A. DWSIRLF BIL LSLR LOAN/OPERATIONS FUND ........................................................................ 3

1. Types of Eligible Projects: ........................................................................................................................... 4

2. Set-aside Accounts: ...................................................................................................................................... 4

IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................... 5

A. SOURCE AND USE OF FUNDS .......................................................................................................... 5

B. FINANCIAL PLANNING PROCESS.................................................................................................... 5

1. Application for the Full Amount of the BIL LSLR Cap Grant ...................................................................... 5

2. Interest Rate Determination ......................................................................................................................... 5

C. FINANCIAL TERMS OF LOANS ........................................................................................................ 6

1. Funding Limit ............................................................................................................................................... 6

2. Interest Rate ................................................................................................................................................. 6

3. FFY-2022 BIL LSLR Cap Grant Special Provisions .................................................................................... 6

4. Other Related Issues .................................................................................................................................... 6

V. SET-ASIDE ACTIVITIES ................................................................................................................ 8

A. ADMINISTRATION ........................................................................................................................... 8

B. SMALL SYSTEM TECHNICAL ASSISTANCE .................................................................................... 8

C. STATE PROGRAM MANAGEMENT .................................................................................................. 9

D. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS .................................................................. 9

VI. PRIORITY SYSTEM ...................................................................................................................... 10

A. FUNDING AND RANKING RATIONALE .......................................................................................... 10

1. Funding Lists and Bypass Procedure ......................................................................................................... 10

2. Loan Decreases .......................................................................................................................................... 10

3. Subsidization from FFY-2022 LSLR Cap Grant ........................................................................................ 11

C. PRIORITY RANKING CRITERIA .................................................................................................... 13

D. PRIORITY SYSTEM DEADLINES .................................................................................................... 14

VII. FFY-2022 LSLR PRIORITY LIST ......................................................................................... 16

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ................ 19

APPENDICES I

APPENDIX A II

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL LSLR CAPITALIZATION

GRANT SET-ASIDES ............................................................................................................................. III

APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE...... IV

(SCHEDULE OF INCREASES TO ACH CEILING) ........................................................................... IV

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER

OF CREDIT (ACH DRAW SCHEDULE) ............................................................................................. V

APPENDIX E – LEAD SERVICE LINE INVENTORY WORKPLAN ............................................. VI

APPENDIX F - CERTIFICATIONS .................................................................................................. VIII

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT .......................................... X

I. INTRODUCTION

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national

Drinking Water State Revolving Fund (DWSRF) Program. The Bipartisan Infrastructure

Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA) of 2021, (P.L.

117-8) additionally amended Section 1452 of the SDWA and appropriated funds for Lead

Service Line Replacement. This Intended Use Plan identifies the State of Mississippi’s

proposed use of Federal Fiscal Year (FFY) 2022 DWSRF Lead Service Line Replacement

(LSLR) allotment of $30,518,000.

The DWSRF program allows the Environmental Protection Agency (EPA) to make

capitalization (Cap) grants to states to, in turn, provide low-cost loans to public water

systems to help achieve or maintain compliance with SDWA requirements. Accordingly,

the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what

is now called the Drinking Water Systems Improvements Revolving Loan Fund

(DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and

to provide low-cost loans to the state’s public water systems to finance needed

infrastructure improvements. This legislation also allows the DWSIRLF, subject to the

authority of State Law, to make loans that may utilize additional subsidization beyond

standard DWSIRLF loans as well as setting appropriate criteria to determine eligible

recipients.

That same legislation created the "Local Governments and Rural Water Systems

Improvements Board" (Board), to oversee the administration of the DWSIRLF Program.

The Mississippi State Department of Health (Department), as the state’s drinking water

primacy agency, supplies the staff and facilities necessary to administer the program. The

Board is composed of the following nine (9) members: the State Health Officer, who shall

serve as chairman of the Board; the Executive Director of the Mississippi Development

Authority; the Executive Director of the Department of Environmental Quality; the

Executive Director of the Department of Finance and Administration; the Executive

Director of the Mississippi Association of Supervisors; the Executive Director of the

Mississippi Municipal League; the Executive Director of the American Council of

Engineering Companies; the State Director of the United States Department of Agriculture,

Rural Development; and a manager of a rural water system. Each agency director may

appoint a designee to serve in his or her place on the Board. The Governor appoints the

rural water system manager. In the creation of the Program, it was the intent of the

Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF

Program are as low as possible in order to provide the water consumers of Mississippi with

safe drinking water at affordable prices.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state

annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize

DWSRF funds to assist in protecting public health.

The DWSIRLF BIL LEAD SERVICE LINE REPLACEMENT (LSLR) Fund consists of

federal funds. Federal funds are provided to the states in the form of awarded Cap grants.

Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed

every four years. No State matching funds are required to be deposited into this Fund.

B. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two

documents. The first document is the Drinking Water State Revolving Fund Loan Program

Operating Agreement (Operating Agreement) between the Mississippi State Department

of Health and the Environmental Protection Agency, Region IV. The current Operating

Agreement was agreed to by both parties and approved on March 21, 2022. The Operating

Agreement establishes the basic framework of the DWSIRLF that is not expected to change

from year-to-year. The second document is the IUP which describes how the State of

Mississippi will use the funding received from the EPA Cap grant which is received each

year. This draft BIL LSLR IUP for FFY-2024 (dated June 29, 2023) will accompany the

Program’s application to EPA for the FFY-2022 LSLR Cap Grant.

The amount of the FFY-2022 EPA Cap Grant for the BIL LSLR fund is $30,518,000. The

Program intends to apply for set-asides as described in Section V. These funds must be

used in the period of July 2023 through June 2026. As a condition of the FFY-2022 Cap

Grant the program agrees to comply with DWSRF regulations, the general grant

regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to

enter data into SRF Data System no less than quarterly. The FFY-2024 IUP will show in

detail the goals (overall and five-year), the structure, and the financial status of the

Program; the role of the set-aside activities within the state; and most importantly, the

distribution of funds towards public water system improvements projects and the criteria

used to determine their ranking within the priority system. Those desiring to receive a

copy of this document may contact Jonathan Diaz, Program Support Specialist, at (601)

576-7518.

C. Public Input, Review, and Comment Procedures

To ensure that the public has an ample opportunity to review and comment upon the IUP,

the Department and the Board follows the requirements of the “Mississippi Administrative

Procedures Law” prior to final submission of the IUP to EPA. A public notice period of at

least twenty-five (25) days allows for review and comment before an oral proceeding.

After adoption by the Board, a second filing with the Secretary of State’s Office occurs; if

no additional comments are received the IUP becomes law 30 days after the second filing.

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation,

for written and oral comments on this IUP. An oral proceeding is scheduled for 9:00 a.m.

on July 28, 2023. A transcript of the oral proceeding, recording any comments and

recommended solutions, will be submitted to the EPA along with the Final IUP. Those

desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz,

Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative

Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can

also be found on the Mississippi State Department of Health’s website at

www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund

(DWSIRLF) Program – LSLR Fund

The LSLR Fund was created by the BIL to provide funding through the DWSIRLF

Program for a five-year duration. Overall and Five-Year Goals for the LSLR Fund include:

A. Overall Goal:

Improve public health by providing funding and technical support to public water systems

in Mississippi for the removal of lead materials in drinking water service lines and related

activities.

B. Five-Year Goals:

1. Improve public health by providing technical support to small (less than 10,000

population) public water systems in Mississippi for the completion of lead service line

inventories. This goal can lead into providing capital project funding for the removal

of lead service lines identified during these inventories.

2. Provide funding and technical support to public water systems in Mississippi in

planning for full, not partial, lead service line replacement. This helps to address the

equity challenge that for some property owners, the cost to replace their portion of lead

service lines is prohibitively high

III. Structure of the Mississippi DWSIRLF

The Mississippi DWSIRLF BIL LSLR is structured around one fund. The portion of the

fund designated for projects will consist of 49% principal forgiveness. The balance of the

project fund will be repaid. This will sustain the Base DWSIRLF program and help it to

achieve its respective goals. The funds are broken down further into designated accounts,

each having a specific function.

A. DWSIRLF BIL LSLR Loan/Operations Fund

Monies in the Fund support a majority of the functions of the DWSIRLF LSLR. These

functions include program administration, set-aside operations, and most importantly

provide disbursements to public water systems for eligible projects. The DWSIRLF LSLR

is a reimbursement program, meaning that after the loan is awarded, costs associated with

USEPA, Combined SRF Implementation of BIL Memo, March 8, 2022

planning, designing, and constructing the project are reimbursed to the recipient. Cap

grants from EPA will be deposited into this Fund’s account.

1. Types of Eligible Projects:

Lead Service Line Replacement projects and associated activities directly

connected to the identification, planning, design, and replacement of lead service

lines are eligible for funding by the Program. 100% of lead service lines must be

replaced for lead service line projects, including privately and publicly-owned

portions of the line.

100% of the service line replaced is defined by replacing pipes up to the point of

premise plumbing. The portion of the service line that is DWSIRLF-eligible (refer

to Figure 1) is the entire service line from the public water main to the point at

which it connects with premise plumbing. Premise plumbing is defined as piping

on the other side of the isolation valve. That connection may be inside or outside

of homes and buildings. Note that premise plumbing is not eligible for DWSIRLF

funding.

The DWSIRLF Program could consider whether reasonable cost for repair to the

private-owned structure, if damaged during privately-owned LSL replacement, is

eligible for DWSIRLF funding.

Source: EPA, Addressing Lead in Drinking Water with the DWSRF, 816-F-18-005, March 2019.

2. Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly

designated by reporting categories. A listing of the set-asides taken by Mississippi

includes the following as part of the FFY-2022 IUP:

a. Administrative Set-aside: Provides financial support to administer the LSLR

loan Program and other non-project-related activities.

b. Small System Technical Assistance Set-aside: Provides technical assistance to

small water systems.

c. State Program Management Set-aside: Provides additional financial support to

MSDH – Bureau of Public Water Supply for Public Water System Supervision

Program – Lead and Copper Revised Rule.

d. Local Assistance and Other State Programs: Provides funding for small

systems to inventory their systems in support of identifying potential lead

service lines for replacement.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF LSLR Program

and indicates intended uses. This section also describes the financial assistance terms

available through the Program.

A. Source and Use of Funds

Using the FFY-2022 BIL LSLR Capitalization Grant allotment for Mississippi of

$30,518,000 to provide for both loans and set-aside activities.

The “set-asides” use for the FFY-2022 BIL LSLR Cap grant are outlined in Section V of

this IUP. Necessary work plans showing utilization of these funds are found in the

appendices of this IUP.

B. Financial Planning Process

In accordance with the goals of the LSLR fund of the DWSIRLF Program, the Board has

made the following financial decisions regarding the Fund:

1. Application for the Full Amount of the BIL LSLR Cap Grant

The Board intends that the MSDH apply for the full amount of the State LSLR Cap

grant allotment under the federal DWSRF, including the set-asides described in

Section V below. No State match is required for the FFY-2022 LSLR Cap grant.

2. Interest Rate Determination

It is the Board’s decision to offer 0% interest on DWSIRLF loans from the BIL

LSLR fund.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water

systems within the State of Mississippi.

1. Funding Limit

Under state law, the Board has the discretion to set the maximum amount for

DWSIRLF loans. For FFY-2022 IUP, the Board has set a maximum loan amount

of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if

requested by the borrower and the need has been justified) the maximum loan limit

to be exceeded by a vote of the Board. Furthermore no more than one loan per

borrower will be allowed. At the end of the fiscal year, if funds are available,

systems previously receiving an award may obtain an additional award(s) or an

increase to a previous award, if no other eligible systems are evident.

2. Interest Rate

Terms for BIL LSLR loans will be 0% interest rate, with repayment periods as

follows:

1. For Lead Service Line Inventory project loans, a standard five-year repayment

term, with the maximum repayment term of 10 years. The reason for the shorter

repayment terms is that these projects are not capital projects and do not

improve or build a physical asset owned by the water system.

2. For Lead Service Line Replacement project loans, a standard 20-year

repayment term. The maximum loan amortization allowable will be 30 years,

or 40 years for disadvantaged communities. These maximums may not,

however, exceed the design life of the project.

Interest will accrue based on the current loan agreement in conjunction with the

DWSIRLF Regulations.

3. FFY-2022 BIL LSLR Cap Grant Special Provisions

The FFY-2022 BIL LSLR Cap Grant requires 49% subsidization of the BIL LSLR

Cap Grant Amount. This subsidization is expected to be in the form of “principal

forgiveness”, “negative interest rates,” or a combination of the two.

4. Other Related Issues

a. Type of Assistance Provided: The assistance to be provided under the

DWSIRLF Program will be loans to public, tax-exempt entities which are

authorized under state law to collect, treat, store, and distribute piped water for

human consumption; able to enter into a DWSIRLF loan agreement; and have

the ability to repay the DWSIRLF loan. With the funds provided through the

FFY-2022 BIL LSLR Cap Grant, the DWSIRLF program will be able to make

loans that will have an amount of “principal forgiveness.” The amount of

principal forgiveness for the BIL LSLR FFY-2022 Cap Grant is 49% of the

total Cap Grant. The Board has set a limit of 70% of the requested loan amount

which a loan recipient may receive in subsidy for one loan. Once the limit of

the appropriation subsidy funds has been reached for the FFY-2022 Cap Grant,

loans will return to the DWSIRLF’s standard terms without principal

forgiveness. In all cases, loans will be LSLR projects and associated activities

directly connected to the identification, planning, design, and replacement of

LSLs.

b. Project Costs Eligibility: Eligible/allowable project costs will include those

costs that are eligible, reasonable, necessary, and allocable to the project, within

the established project scope and budget, in conformance with the DWSIRLF

regulations and approved by MSDH.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible

project costs, less any funding made available from other agencies for these

same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF

loan eligible provided:

i. The debt is for work that has begun after the DWSIRLF loan award date.

ii. The project is in compliance with all applicable DWSIRLF Program

regulations and obtains MSDH approval of all applicable documents

prior to award of the DWSIRLF loan.

iii. The prospective loan recipient agrees that by incurring costs prior to

loan award, it proceeds at its own risk and relieves the Board, the

Department, and the Department’s staff of all responsibility and liability

should such costs later be determined unallowable for any reason or

should such funding not become available for any reason.

iv. The prospective loan recipient agrees that by incurring costs prior to

loan award, no future commitment of funding a refinanced project is

provided.

e. Priority List: The LSLR Priority List for the FFY-2022 IUP expires on

January 2, 2024. Projects listed in the FFY-2022 LSLR Priority List that do not

receive funding by this date will not be funded under the FFY-2022 LSLR IUP

and will be subject to the requirements of subsequent IUPs and Priority Lists.

Detailed information for the FFY-2022 LSLR projects is shown in Section VIII

of this IUP. To facilitate the use of federally appropriated funds from the FFY-

2022 BIL LSLR Cap Grant, the priority list may be adjusted to allow funds to

be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support

non-project-related drinking water programs which includes administration of the loan

program, technical assistance to public water systems, state program management, and

other special activities. The FFY-2022 LSLR Capitalization Grant amount of $30,518,000,

the state plans to use $5,415,173 of the FFY-2022 LSLR Capitalization grant to support

set-aside activities, further defined in the following Sections A through D. These non-

project-related programs will be operated by MSDH within the agency itself or through

contracts with other agencies or organizations. Contracts between the MSDH and other

agencies or organizations will be approved by the Board. Work plans showing how the

set-asides funds will be expended are included as appendices within this LSLR IUP;

additionally, progress reports will be included in the Annual Report.

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements

for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated

June 6, 2017) states that the Administrative Set-Asides that can be taken the greatest

of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal

to 4 percent of all grant awards to the fund for the fiscal year. The EPA Combined

SRF BIL Implementation Memo dated March 8, 2022 states that set-asides for the

LSLR Cap Grant are consistent with the DWSRF regulations. The State plans to

use the maximum allowable (4%) for “Administrative” purposes from the FFY-

2022 LSLR Cap Grant.

The state will continue to exercise its right to reserve the administrative amounts

from previous Cap Grants. Reserving previous years’ 4% administrative set-aside

can ensure that the Program will continue to operate with an adequate DWSIRLF

staff for proper management of the Program.

B. Small System Technical Assistance

The state will use the Small Systems Technical Assistance (up to 2%) set-aside

from the BIL LSLR FFY-2022 Cap Grant to provide funding for LSL inventories

to ultra small systems serving 750 connection or less. With approval by the Board,

the state intends to use this set-aside to fund a contract for providing professional

services for lead service line inventories to water systems with a connections of less

than 750. This assistance with lead service line inventories will be available on a

first-come, first-serve basis to water systems serving connections of 750 or less.

More detail is provided in the State of Mississippi’s Set-Aside Work Plan included

as Appendix E to this IUP.

C. State Program Management

At this time, the state does not intend to use the 10% set-aside from the FFY-2022

LSLR Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water

Act of 1996 for State Program Management related to LCRR and LSLR. The

program reserves the right to utilize these funds for Public Water System

Supervision (PWSS) activities conducted under Section 1443(a) of the Act from

future LSLR related grant provide through the Bipartisan Infrastructure Law.

D. Local Assistance and Other State Programs

The state intends to use the of the 15% set-aside amount allowed for Local

Assistance from the FFY-2022 BIL LSLR Cap grant to provide funding for LSL

inventories to public water systems serving varying levels of connections as outline

in the attached workplan.

With approval by the Board, the state intends to use this set-aside to fund

contract(s) for providing professional services for lead service line inventories to

water systems of three separate size categories: A.) small systems serving

connections of less than 750 with Small System Technical Assistance set-aside.

B.) medium systems serving connections of greater than 750 but less than 5,000

(not to exceed 10% of the allotment) and C) large system serving connections of

greater than 5,000 (not to exceed 10% of the allotment). This assistance with lead

service line inventories will be available on a first-come, first-serve basis to water

systems serving a population that falls within the three size categories as defined

in this section. The State of Mississippi’s Set-aside Work Plan is included as

Appendix E.

VI. Priority System

The SDWA provides the state with the flexibility to determine how to best utilize the LSLR

Cap grant. To meet the goals of public water systems in the State of Mississippi and this

FFY-2024 LSLR IUP, those projects which meet the following will be given priority:

1. Address the most serious risk to human health related to lead in service lines and

associated activities directly connected to the identification, planning, design and

replacement of lead service lines.

2. Assist systems most in need, on a per household basis.

A. Funding and Ranking Rationale

Projects will be placed on the fundable portion of the Priority List according to both priority

ranking and readiness to proceed. The term “ready to proceed” means that all loan

application requirements established in the Program regulations are met, and all documents

necessary for loan award are approved. If a project cannot reasonably be expected to meet

the Priority System deadlines, then the project will not be placed on the current year’s

Priority List but will be placed on the Planning List. It is the Board’s judgment with input

from the DWSIRLF staff as to when a project is ready to proceed. Loans will be awarded

to projects (within available funds) that are above the funding line on the current year’s

Priority List, that have met all Priority System deadlines and are ready to proceed.

Additionally, when potential loan recipients are deciding on the needs for their public water

supplies, they should ensure that all public health and state safe drinking water laws are

followed.

1. Funding Lists and Bypass Procedure

Should any projects on the FFY-2024 LSLR Priority List (which are above the funding

line) fail to comply with the deadlines in Section D, the project shall be bypassed, and the

funds reserved for said project will be released. Released funds will first be made available

to listed projects, to ensure that all projects above the funding line meeting priority system

deadlines are funded. Any remaining funds will be made available to the highest-ranking

project(s) shown below the funding line that is ready for loan award at the time funds

become available. If no projects above the funding line are ready for loan award at the

time funds become available, projects shown below the funding line will be funded on a

first-come, first-served basis as they become ready for loan award and until the released

funds are awarded. This same process will continue as each deadline passes and released

funds become available.

2. Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not

sufficient to cover the bid overruns;

b) then to ensure that all projects above the funding line meeting the priority

system deadlines are funded (for at least the amount shown on the priority list);

and

c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan

awards ready to proceed on a first-come, first-served basis.

3. Subsidization from FFY-2022 LSLR Cap Grant

49% of the FFY-2022 LSLR Cap Grant will be subsidized. Based on the Grant of

$30,518,000, the required amount of subsidization is $14,953,820. The

DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to

individual public water supplies that are considered disadvantaged communities,

and which received reimbursements with Federal LSLR Cap Grant funds during

the lifetime of the project, from loan initiation through loan closeout. If the amount

of PF which a project is eligible exceeds the amount of Federal LSLR Cap grant

funds which it received, the amount of PF extended will be limited to the amount

of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two-year period. Subsidization remaining from

a previous year may be awarded to loans which are eligible for PF over a two-year

period. Subsidization for FFY-2024 LSLR Priority List projects may be awarded

to projects eligible for PF in FFY-2025 and FFY-2026.

Disadvantaged Community Program

a. DWSRF LSLR Capitalization Grant Funds

During FFY-2024, the following Principal Forgiveness (PF) methodology will

be used to meet the requirements of the BIL (P.L. 117-8) for providing subsidy

for disadvantaged systems. For the LSLR fund, 49% will be subsidized. The

FFY-2022 LSLR federal appropriation for the Program is $30,518,000. The

principal forgiveness (49%) allowable to eligible borrowers is $14,953,820.

The amount of PF for which a potential “Loan Recipient” (LR) may be eligible

will be determined by calculating the percentage of the “Median Household

Income” (MHI) of the potential LR versus the MHI of the State of Mississippi

($49,111) as a whole.

90% < LR MHI < 100% - 49% Principal Forgiveness

80% < LR MHI < 90% - 56% Principal Forgiveness

70% < LR MHI < 80% - 63% Principal Forgiveness

LR MHI < 70% - 70% Principal Forgiveness

PF will be extended to projects until all mandated subsidy funds are obligated.

Due to the limited amount of PF funds, the maximum amount of PF funds a

loan recipient may receive for a project will be 70% of the project budget, which

is capped at $5,000,000. The amount of PF given will be assigned at loan award.

Once subsidy funds are depleted, only standard loans will be made with

DWSIRLF funds.

In the event that a LR declines their loan that includes PF, the released PF may

be reallocated to other projects for the present fiscal year that are eligible for

PF, or the PF may be carried over to projects for the next fiscal year.

If returned PF funds are reallocated to projects awarded during the existing

fiscal year. The reallocation of PF will be given first to projects which did not

receive their full allowable amount based on the above table up to the maximum

allowed limit.

In all cases, the amount of PF which is awarded to a project may not exceed the

amount of Federal Cap grant funds which the project was reimbursed during

the construction of the project.

B. Priority System Categories

DWSRF LSLR Priority System

Project Categories applicable to the DWSRF Base/Supplemental IUP that have been

eliminated from this LSLR IUP because they are not applicable are Categories I

through II and IV through XII. Projects for the LSLR Priority List will be ranked from

Categories III through XIII in priority order; that is, all Category III projects are ranked

higher than subsequent category projects, etc. Ranking is established in like manner

for the remaining categories. Adjustments are made as necessary to comply with the

set-aside provisions of the Federal SDWA and as established by the Board [Section

1542(a) (2) of SDWA]. As stated previously, the order of Categories III - XIII is

intended to give highest priority to those projects that address the most serious risks to

human health. Projects within each category will be ranked as described in Section C.

All projects must meet the requirement of the LSLR Cap Grant appropriation; that they

are lead service line replacement projects or project activities directly connected to the

identification, planning, design, and replacement of lead service; for example, lead

service line inventory projects. 100% of lead service lines must be replaced for lead

service line projects, including privately and publicly-owned portions of the line.

1. Category III – Primary Drinking Water Standards

This category includes projects to facilitate compliance with Primary Drinking Water

Standards. To qualify for this category, projects must correct deficiencies resulting in

non-compliance with the primary drinking water standards.

2. Category XIII – Other

This category includes projects that do not meet the criteria of any other listed category

and have been determined LSLR loan eligible in accordance with the DWSIRLF

program regulations.

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects

that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a

per household affordability basis as required by the SDWA; (3) encourage participation in

short-term and long-term technical assistance programs; and (4) encourage certifying and

providing support for a system’s Asset Management Plan. These considerations are

addressed by the Priority Ranking Criteria in the following manner:

1. Benefit/Cost

Benefit/Cost points assigned to each project will be determined using the following

formula:

Benefit/Cost Points = Number of benefiting connections

Total eligible cost of improvements (in $1.0 millions)

The number of benefiting connections must be included in the facilities plan

submitted by the applicant; be defined as the sum of individual connections

currently experiencing deficiencies that will be corrected by the improvement;

and include only existing residences, businesses, and public buildings. Applicants

must furnish information (including hydraulic analysis, if necessary) to support

their estimate of the number of benefiting connections. The total eligible cost is in

millions of dollars (i.e., $800,000 = $0.8 M).

2. Affordability Factor

An affordability factor will be assigned to each project to reflect the relative needs

of applicants on a per household basis. The Benefit/Cost points calculated in

Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median

Household Income” (MHI) for the State of Mississippi ($49,111) to the MHI for

the affected community. The affordability factor used in the calculation will be no

less than 1.0 and no greater than 1.5.

3. Participation in Short-Term & Long-Term Assistance Programs

The MSDH, with the Board’s approval, has contracted with Mississippi State

University Extension Service to provide both short-term and long-term assistance

to designated water systems in the state based on their scores on the latest Capacity

Assessment Form (CAF). This assistance is provided at no cost to the water

systems.

Participation by the water systems in these assistance programs is voluntary;

however, any water system that has participated in either of these assistance

programs within the past two years will be eligible to receive additional priority

points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have

implemented all the recommendations made by Mississippi State University

Extension Service will receive additional priority points equal to 5% of their

Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in

either of these assistance programs and implementation of the recommendations

made by Mississippi State University Extension Service must be included in the

facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the

water system participates in the assistance and implements all

recommendations

4. Asset Management Plan

Any water system certifying and providing support of their Asset Management

Plan’s implementation or maintenance to MSDH will be eligible to receive

additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

7. Ranking Within Each Category

Within each category, projects will be ranked in order based on the total points

assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Affordability Points +

Assistance Program Points + Asset Management Plan Points

Projects receiving the most priority points will be given the highest ranking on the

Priority List. In case of a tie in the number of priority points, projects with the

lowest median household income will receive the highest ranking.

D. Priority System Deadlines

1. Those that have submitted Request for Ranking: by January 2, 2024, a complete

DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program

regulations, must be submitted to MSDH.

A complete DWSIRLF facilities plan includes: all Intergovernmental Review

(IGR) agency comments; proof of publication of advertisement for public hearing;

a transcript of the public hearing comments; copies of any comments received from

the public; and a summary of how each comment was addressed. The loan

applicant should provide a copy of the facilities plan to USDA - Rural Utilities

Service (RUS); if the loan applicant has an existing debt with RUS, their approval

to incur the additional debt must be obtained and provided as part of the plan.

Any significant changes made to the facilities plan (i.e., changes in the chosen

alternative location of the facility, cost increases that substantially affect the

financial capability of the loan recipient) after this date will be considered a first

submittal of the facilities plan. The loan applicant will then be in violation of the

Priority System deadline and the project will be placed on the planning portion of

the priority list. If the change is made after adoption of the IUP, funds reserved for

this project may be released and made available to other projects.

2. By May 1, 2024, a completed DWSIRLF loan application and all associated

documents as described in the DWSIRLF regulations must be submitted to the

Department. Prior to preparing these documents, the potential applicant and/or its

registered engineer must request and receive a DWSIRLF application and

guidance. It is recommended that they request a pre-application conference with

DWSIRLF staff as early in the application process as practical. This deadline also

applies to all projects competing for released funds during FFY-2024 and to be able

to qualify for the Previous Year Certified Projects Category in the FFY-2024 IUP.

3. By August 1, 2024, all approvable documents and responses to comments necessary

for loan award must be submitted to the Department for its review and approval.

VII. FFY-2022 LSLR PRIORITY LIST

Fiscal Year - 2022 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program

Priority List – BIL Lead Service Line Replacement

Project

Project Description

Zip

ode

Priority

Points

Service

Area

Population

Eligible

Amount

Loan

Amount

Request

Statewide

Cum. $

Category XIII: Other

Waveland, City of Survey and Identify Lead Service Lines 39576 26250 6943 $90,000

$200,000

Hancock County Water & Sewer Surveying and Inventorying Lead Service Line 39556 25678 4000 $28,000

$50,000

$250,000

Bay St. Louis, City of Survey and Identify Lead Service Lines 39520 12316 7810 $122,500

$250,000

$500,000

Kiln Utility and Fire District Survey and Identify Lead Service Lines 39556 9944 7949 $22,500

$150,000

$650,000

FMH Water Association Surveying & Inventory of Lead Service Lines 38756 9844 0 $112,000

$160,000

$810,000

Lorman Waterworks Association Surveying & Inventory of Lead Service Lines 39096 9828 2000 $56,250

$125,000

$935,000

CS&I Water Association Surveying & Inventory of Lead Service Lines 39150 9764 0 $38,500

$55,000

$990,000

McNair-Stampley Waterworks Surveying & Inventory of Lead Service Lines 39069 9675 0 $72,000

$160,000

$1,150,000

Renshaw Water Association Surveying & Inventory of Lead Service Lines 39194 9635 400 $11,700

$26,000

$1,176,000

Fayette, City of Surveying & Inventory of Lead Service Lines 39069 9624 0 $87,500

$125,000

$1,301,000

Ebenezer Water Association Surveying & Inventory of Lead Service Lines 39095 9563 765 $28,000

$40,000

$1,341,000

South Holmes Water Association Surveying & Inventory of Lead Service Lines 39146 9485 1500 $29,250

$65,000

$1,406,000

South Sunflower Water Assoc Surveying and Inventorying Lead Service Line 38753 9193 0 $31,500

$70,000

$1,476,000

Hermanville Community Water Surveying & Inventory of Lead Service Lines 39086 8914 0 $31,500

$70,000

$1,546,000

Midway Community Water Surveying & Inventory of Lead Service Lines 39039 8400 0 $56,250

$125,000

$1,671,000

Romola Water Association Surveying & Inventory of Lead Service Lines 39150 8250 0 $18,000

$40,000

$1,711,000

Pilgrim Rest Water Association Surveying & Inventory of Lead Service Lines 39232 8160 0 $11,250

$25,000

$1,736,000

Greenville, City of Replacement of Lead Service Lines 38701 8107 30000 $1,586,393

$2,266,275

$4,002,275

Acona Water Association Surveying & Inventory of Lead Service Lines 39095 7800 0 $70,000

$100,000

$4,102,275

Pearl, City of Surveying & Inventory of Lead Service Lines 39288 7333 0 $0

$1,500,000

$5,602,275

Casey Jones Water Association Surveying & Inventory of Lead Service Lines 39179 7167 1112 $63,000

$90,000

$5,692,275

Natchez Waterworks Surveying & Inventory of Lead Service Lines 39120 7032 0 $500,000

$1,350,000

$7,042,275

Copiah Water Association Surveying & Inventory of Lead Service Lines 39083 6944 0 $236,250

$375,000

$7,417,275

Union Church Waterworks Surveying and Inventorying Lead Service Line 39668 6844 0 $36,000

$80,000

$7,497,275

Double Ponds Water Association Surveying & Inventory of Lead Service Lines 39474 6822 2666 $112,000

$160,000

$7,657,275

Black Bayou Water Association Surveying & Inventory of Lead Service Lines 38756 6806 8400 $297,500

$425,000

$8,082,275

L&F Water Association Surveying & Inventory of Lead Service Lines 39117 6780 1518 $40,500

$90,000

$8,172,275

Project

Project Description

Zip

ode

Priority

Points

Service

Area

Population

Eligible

Amount

Loan

Amount

Request

Statewide

Cum. $

Category XIII: Other

ACL Water Assoc. Surveying & Inventory of Lead Service Lines 39145 6638 0 $0

$160,000

$8,332,275

North Hinds Water Assoc. Surveying & Inventory of Lead Service Lines 39071 6620 0 $0

$500,000

$8,832,275

Central Yazoo Water Assoc. Surveying & Inventory of Lead Service Lines 39194 6619 9960 $267,750

$425,000

$9,257,275

Southeast Rankin Water Assoc. Surveying and Inventorying Lead Service Line 39051 6600 0 $0

$250,000

$9,507,275

New Providence Water Assoc. Surveying & Inventory of Lead Service Lines 39090 6585 0 $45,500

$130,000

$9,637,275

Evergreen Water Assoc. Surveying & Inventory of Lead Service Lines 39043 6543 0 $0

$175,000

$9,812,275

Taylorsville Water Assoc. Surveying and Inventorying Lead Service Line 39043 6410 0 $0

$100,000

$9,912,275

Eagle Lake Water District Surveying & Inventory of Lead Service Lines 39812 6273 0 $63,000

$100,000

$10,012,275

C & C Water Assoc. Surveying & Inventory of Lead Service Lines 39094 6268 0 $63,000

$100,000

$10,112,275

Hwy 28 Water Assoc. Surveying & Inventory of Lead Service Lines 39111 6236 1579 $31,500

$90,000

$10,202,275

H&H Water Assoc. Surveying & Inventory of Lead Service Lines 39080 6179 0 $110,250

$175,000

$10,377,275

East Madison Water Assoc. Surveying & Inventory of Lead Service Lines 39046 6063 0 $283,500

$450,000

$10,827,275

Taylorsville, Town of Surveying and Inventorying Lead Service Line 39168 5969 0 $43,750

$125,000

$10,952,275

Port Gibson, Town of Survey & Inventory Lead Service Lines 39150 5847 3079 $135,414

$300,920

$11,253,195

True Light Development Surveying and Inventorying Lead Service Line 38721 5810 515 $7,500

$30,000

$11,283,195

Pisgah Water Assoc. Surveying & Inventory of Lead Service Lines 39161 5667 2550 $0

$150,000

$11,433,195

Willow Grove Water Assoc. Surveying and Inventorying Lead Service Line 39428 5570 2175 $31,250

$125,000

$11,558,195

Topisaw Creek Water Assoc. Surveying and Inventorying Lead Service Line 39662 5484 0 $41,250

$275,000

$11,833,195

Southern Rankin Water Assoc. Surveying and Inventorying Lead Service Line 39073 5341 0 $52,500

$210,000

$12,043,195

Mize, Town of Surveying & Inventory of Lead Service Lines 39116 5292 0 $14,000

$40,000

$12,083,195

Lake City Water Assoc. Surveying & Inventory of Lead Service Lines 39071 5270 0 $31,250

$125,000

$12,208,195

Yokena Jeff Davis Surveying and Inventorying Lead Service Line 39180 5236 0 $35,000

$140,000

$12,348,195

Union Water Assoc. Surveying and Inventorying Lead Service Line 39151 5148 692 $600

$40,000

$12,388,195

Star Water Company Surveying and Inventorying Lead Service Line 39167 5107 0 $0

$75,000

$12,463,195

Sylvarena Water Assoc. Surveying and Inventorying Lead Service Line 39153 4897 801 $17,500

$50,000

$12,513,195

Braxton, Town of Surveying & Inventory of Lead Service Lines 39044 4763 0 $24,500

$50,000

$12,563,195

Goshen Water Assoc. Surveying & Inventory of Lead Service Lines 39051 4650 0 $14,000

$25,000

$12,588,195

Vicksburg, City of Survey & Inventory Lead Service Lines 38701 4459 29238 $190,895

$2,483,640

$15,071,835

Puckett, Town of Surveying & Inventory of Lead Service Lines 39151 3882 0 $12,500

$50,000

$15,121,835

Project

Project Description

Zip

ode

Priority

Points

Service

Area

Population

Eligible

Amount

Loan

Amount

Request

Statewide

Cum. $

Category XIII: Other

Thomasville Water Assoc. Surveying and Inventorying Lead Service Line 39042 3648 0 $18,750

$125,000

$15,246,835

Winterville Water Assoc. Surveying and Inventorying Lead Service Line 38703 2700 0 $11,250

$25,000

$15,271,835

Senatobia Lakes Estates Surveying & Inventory of Lead Service Lines 38668 2342 180 $8,750

$25,000

$15,296,835

Collins, City of Surveying and Inventorying Lead Service Lines 39428 1957 4000 $315,000

$500,000

$15,796,835

Bay Springs, Town of Surveying & Inventory of Lead Service Lines 39422 1725 1723 $700,000

$1,000,000

$16,796,835

Wiggins, City of Inventory Lead Service Lines 39577 1662 4390 $250,000

$1,000,000

$17,796,835

Canton Municipal Utilities Surveying and Inventorying Lead Service Line 39046 1177 26719 $0

$1,000,000

$18,796,835

Clarkdale Water Assoc. Replacement of Lead Service Lines 39301 735 4739 $1,156,960

$2,066,000

$20,862,835

Harland Creek Water Assoc. Replacement of Lead Service Lines 39095 554 1338 $500,000

$2,484,300

$23,347,135

Jackson, City of Replacement of Lead Service Lines 39216 110 150000 $500,000

$5,000,000

$28,347,135

Mount Olive, Town of Surveying and Inventorying Lead Service Lines 39119 102 982 $450,000

$1,000,000

$29,347,135

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely

manner to achieve the public health protection benefits resulting from the projects

identified in the FFY-2022 LSLR IUP, and to ensure compliance with loan agreements, as

required by state and federal laws and regulations.

By implementing the FFY-2022 LSLR IUP and funding projects shown on the FFY-2024

LSLR Priority List (Section VII), the Board will have the means to plan for and fund

projects that will address lead service line replacement projects and associated activities.

Funding of the system projects will be determined by the amount of funding to be received

in the FFY-2022 BIL LSLR Cap Grant.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to

successfully meet commitments in the FFY-2022 LSLR IUP and Set-Aside Work Plan.

Additionally, the majority of the projects as proposed should have minimal impact on the

environment due to the nature of their design. Where necessary, appropriate environmental

reviews will occur and proper permitting through the Mississippi Department of

Environmental Quality will be required to ensure minimal impact on the environment.

APPENDICES

APPENDIX A

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

LEAD LINE

REPLACEMENT

ANTICIPATED FUNDS REPORT

June 1, 2023

FFY

2022 Funding (Federal and State)

National Title I DWSRF Appropriation

Mississippi's Allotment

$30,518,000

State Match Required (20% of Mississippi's Allotment)

2022 Capitalization Grant for BIL LSLR

$30,518,000

State Match Status

State Match Required

2023 Legislated State Match

Remaining State Match

Required

2022 Cap Grant Set

Asides

DWSRF Administration [SDWA Sec. 1452(g)(2) - either $400,000, 1/5 % of the fund's current

valuation, or up to 4% of the award]

$227,113

Small Systems Technical Assistance [SDWA Sec. 1452(g)(2)

2%]

$610,360

Local Assistance and Other State Program [SDWA Sec. 1452(k)(2)

15%]

$4,577,700

State Program Management [SDWA Sec. 1452(g)(2)

10%]

Total 2022 Cap Grant Set

Asides

$5,415,173

2022 Cap Grant Funds Available for Loan

Obligation

2022 DWSRF Capitalization & BIL Supplemental Grants

$30,518,000

2022 Cap Grant Set

asides

($5,415,173)

Total Cap Grant Funds Available for Loan Obligation

$25,102,827

Funds Anticipated to be Available for Loan

Awards

Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation

$25,

102,827

Unobligated Funds Carried Over

$0.00

Loan Increase Reserve

$0.00

Total Funds Anticipated to be Available for Loan Awards

$25,194,940

Funds Needed for Projects on the FFY

2022 Priority List & FFY

2023 & After Planning List

Funds Needed for Projects on the Priority List and FFY

2023 & After Planning List

$28,052,135

Funds Anticipated to be Available for Loan Awards

($25,102,827)

Total Fund Need Remaining for Projects on the Priority List and FFY

2023 & After

Planning List

$2,949,308

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS

FOR BIL LSLR CAPITALIZATION GRANT SET-ASIDES

FFY 2022 BIL LSLR Cap Grant

Federal Set-Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals

Administrative $56,778 $56,778 $56,778 $56,778 $227,112

Small System Tech Assist. $152,590 $152,590 $152,590 $152,590 $610,360

State Program Management. $0 $0 $0 $0 $0

Local Asst. & Other St. Programs $1,144,425 $1,144,425 $1,144,425 $1,144,425 $4,577,700

Total: $1,353,793 $1,353,793 $1,353,793 $1,353,793 $5,415,172

APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT)

SCHEDULE

(SCHEDULE OF INCREASES TO ACH CEILING)

FFY-2024

FFY-2022

Cap Grant

No. 1 of 4

Quarter

FFY-2024

$7,629,500

FFY-2022

Cap Grant

No. 2 of 4

2nd Quarter

FFY-2024

$7,629,500

$15,259,000

FFY-2022

Cap Grant

No. 3 of 4

3rd Quarter

FFY-2024

$7,629,500

$22,888,500

FFY-2022

Cap Grant

No. 4 of 4

4th Quarter

FFY-2024

$7,629,500

$30,518,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL

LETTER OF CREDIT

(ACH DRAW SCHEDULE)

FFY-2024

Outlay

Quarter

Federal Outlay

Amount

Cumulative Outlay

Amount

Quarter

$7,629,500 $7,629,500

2nd Quarter

$7,629,500 $15,259,000

3rd Quarter

$7,629,500 $22,888,500

4th Quarter

$7,629,500 $30,518,000

APPENDIX E – LEAD SERVICE LINE INVENTORY WORKPLAN

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply

(Department), will use the Small System Technical Assistance Set-Aside & Local

Assistance and Other State Programs Set-aside of the DWSRF LSLR in a Lead Service

Line Inventory Program. The program will be surveying the State’s drinking water system to

identify, plan, and assist water systems in inventorying their service line to identify lead

service lines for replacement projects.

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A

contract is currently being developed in accordance with State contracting requirements.

A Request for Qualifications will be advertised statewide. Qualifications received will be

reviewed by the Department to select the best qualified candidate for the agency.

Recommendations for award of a contract will be presented to the Board at their regularly

scheduled Board meeting; following authorization by the Board, the coordination contract

will be awarded.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the BIL

LSLR FFY-2022 Cap Grant to provide funding for the creation of LSL inventories to small

systems serving connections of 750 or less. With approval by the Board, the state intends to

use this set-aside to fund a contract for providing professional services for lead service line

inventories to water systems serving 750 and fewer connections. on a first-come, first-serve

basis to water systems serving 750 and fewer connections. The contractual assistance will

work though the selected contractor to assist these small systems primarily in the generation

of service line inventories including those service lines that may be lead or lead influenced.

The contractual assistance may also include support for non-routine lead sampling, funding

applications, and/or public engagement.

The state intends to use Local Assistance and Other State Programs Set-Aside a total of 15%

to support the creation of the lead service line inventories for the state’s systems that are

classified as community systems as defined under the Safe Drinking Water Act. No more

than 10% of the 15% will be allocated to creating inventories for systems with 751 to 5000

connections. No more than 10% of the 15% will be allocated to creating inventories for

systems serving greater than 5000 connections.

With approval by the Board, the state intends to use this set-aside to fund contract(s) for

providing professional services for lead service line inventories to water systems of three

separate size categories: A.) small systems serving connections of less than 750 B.) medium

systems serving connections of greater than 750 but less than 5,000 and C) large system

VII

serving connections of greater than 5,000. This assistance with lead service line inventories

will be available on a first-come, first-serve basis to water systems serving a population that

falls within the three size categories as defined in this section.

The activities described herein will be accomplished through a four-part process:

identification of inventory projects from our priority list and/or communication with the

Program’s Project Management Staff or the Department’s Regional Engineers;

communication with public water supply; mobilization of contractor to identified site to

develop plans and inventories; and confirmation that the work has been performed.

Identification – The contractor will survey our priority list and/or communication with the

Program’s Project Management Staff or the Department’s Regional Engineers while

identifying the proper set-aside category to fund the potential inventory. Systems will have

an opportunity through the agency’s website to identify themselves as needing assistance

through an online application.

Communication – Information on the identified systems will be passed on to staff from the

contractor who will meet with system officials to inform them of the program, explain what

Lead Line Inventories looks like for their system, and encourage them to take advantage of

funding through our program utilizing information available by MSDH to complete LSL

inventories..

Mobilization – Once the communication phase has been completed and the system request

to move forward, staff of the contractor will mobilize to the selected site and commence with

the plan and inventory of the System’s service lines. Acceptable methods of inventory will be

determined and outlined by the Department to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff

with results and recommendations for a Lead Service Line Replacement Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Lead Line Inventory Program activities under this work plan

will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective

completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

The success of these set-asides will be defined by the ability of the MSDH through the

solicited contractor(s) to identify, plan, and assist water systems in Lead Line Inventories that

lead to Lead Line Replacement Projects to create safer drinking water for all consumers of

Mississippi’s drinking water.

VIII

APPENDIX F - CERTIFICATIONS

In addition to the ten (10) assurances included below, the state acknowledges that there are six

(6) additional assurances that the state has agreed to in either the Operating Agreement between

the State and EPA Region IV or the annual capitalization grants. These two documents are

hereby incorporated into this IUP by reference.

1. The state certifies that all drinking water facility projects in this IUP identified in Section

VII as being subject to the federal cross-cutting requirements are or will be in compliance

with all such requirements prior to the state entering into an assistance agreement with

the recipient.

2. The state certifies that it will make an annual report to the Regional Administrator on the

actual uses of the funds and how the state has met the goals and objectives for the

previous two fiscal years as identified in the IUPs; and to annually have conducted an

independent audit of the funds to be conducted in accordance with generally accepted

government accounting standards.

3. The state certifies that this IUP will be subjected to public review and comment prior to

final submission to EPA. The state certifies that it will follow the “Mississippi

Administrative Procedures Law” in seeking public review and comments on this IUP. A

copy of the “Mississippi Administrative Procedures Law” can be obtained from the

Mississippi Secretary of State’s Office and can be found on the Mississippi State

Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A

transcript of the public hearing recording the comments and recommended solutions will

be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the

oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at

(601) 576-7518 to request copies.

4. The state certifies that all drinking water facility projects in this IUP are on the project

Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.

5. The state certifies that it will enter into binding commitments for 120% of the amount of

each payment (LOC) under the capitalization grant within one year after receipt of each

payment (LOC).

6. The state certifies that it will commit and expend all Drinking Water Systems

Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as

possible, and to disburse the funds in a timely and expeditious manner.

7. The state certifies that it will conduct environmental reviews on all DWSIRLF cross-

cutter equivalency projects in accordance with the State Environmental Review Process

(SERP).

8. The state certifies that prior to adding any new projects to the “FFY-2022 and After

Planning List” for the purpose of funding such a project during FFY-2022 that the state

will follow the “Mississippi Administrative Procedures Law” in amending this IUP to

allow for public review and comments.

9. The state certifies that it has developed and implemented a Capacity Development (CD)

strategy to assist public water systems in acquiring and maintaining technical,

managerial, and financial capacity as required in Section 1420(c) of the 1996

Amendments to the SDWA. This CD program is currently approved by EPA.

10. The state certifies the State’s Operator Certification Program is currently approved by

EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking

Water SRFs:

I. Funding

The bill appropriates $30.713 billion for the Drinking Water State Revolving Funds

(SRFs) over five years. (This is actual funding.) (See Division J – Appropriations, Title

VI Department of Interior, Environment and Related Agencies, State and Tribal

Assistance Grants: Starts on page 2,565 of the bill.)

II. Reauthorization & Policy

The bill includes The Drinking Water and Wastewater Infrastructure Act (S. 914) which

reauthorizes funding levels for the SRFs and amends SRF provisions in the Clean Water

Act and the Safe Drinking Water Act. (See Division E – Drinking Water and Wastewater

Infrastructure: Starts with Section 50001 on page 1,887 of the bill.)

III. Buy America / Buy American

The bill expands domestic preference procurement provisions for programs across

government, including the SRFs. (See Division G – Other Authorizations, Title IX Build

America, Buy America: Starts with 70901 on page 2,303 of the bill.)

I. Funding

The bill provides three pots of funding for SRFs over the next five years:

 Any Eligible Project:

o $11,713,000,000 for the Drinking Water SRF for any eligible project.

 Lead Remediation:

o $15 billion for the Drinking Water SRF for lead service line replacement,

including planning, identification, and design (includes inventories).

 Emerging Contaminants Remediation:

o $4 billion for remediation of emerging contaminants with a focus on PFAS/PFOA

for the Drinking Water SRF.

Key points for this supplemental appropriation:

 Funding is intended to be in addition to annual appropriations.

 Funding is available “until expended.”

 State match is not required for appropriations dedicated to lead service line replacement

and remediation of emerging contaminants.

 State match is 10% for 2022-2023 and 20% for 2024-2026 for appropriations for any

eligible project.

 100% of the capitalization grant for emerging contaminants must be used for additional

subsidy. A flat 49% of the annual capitalization grant for any eligible project and lead

service line replacement must be used for additional subsidy.

 Additional subsidy must be provided in the form of assistance agreements with 100%

principal forgiveness or grants.

Year

Drinking Water SRF

Any Eligible Project

State

Match

Mandated

Additional

Subsidy

2022

$1,902,000,000

10%

49%

2023

$2,202,000,000

10%

49%

2024

$2,403,000,000

20%

49%

2025

$2,603,000,000

20%

49%

2026

$2,603,000,000

20%

49%

Total $11,713,000,000

Year

Drinking Water SRF

Emerging

Contaminants

State

Match

Mandated

Additional

Subsidy

2022

$800,000,000

100%

2023

$800,000,000

100%

2024

$800,000,000

100%

2025

$800,000,000

100%

2026

$800,000,000

100%

Total $4,000,000,000

Year

Drinking Water SRF

Lead

State

Match

Mandated

Additional

Subsidy

2022

$3,000,000,000

49%

2023

$3,000,000,000

49%

2024

$3,000,000,000

49%

2025

$3,000,000,000

49%

2026

$3,000,000,000

49%

Total $15,000,000,000

Total $30,713,000,000

II. Reauthorization & Policy

The bill includes The Drinking Water and Wastewater Infrastructure Act of 2021 (S.

914) which passed the U.S. Senate on Thursday, April 29, by a vote of 89 – 2 (9 not voting).

The bill contained the following provisions. (Policy provisions apply to annual

appropriations, not supplemental appropriations in the bill.)

Funding

 Reauthorizes Drinking Water SRFs at the same levels for the next five years:

o 2022: $2.4 billion

o 2023: $2.75 billion

xii

o 2024: $3 billion

o 2025 and 2026: $3.25 billion

 Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through

2026.

Additional Subsidy

 Defines additional subsidization as “forgiveness of principal, grants, negative interest

loans, other loan forgiveness, and through buying, refinancing, or restructuring debt”

for both SRFs and excludes loans with 0% or higher interest are not additional from

being considered additional subsidy.

 Mandates minimum additional subsidy for as long as there are eligible applications:

o Drinking Water SRFs: Increases additional subsidy from 6% to 12% of the

capitalization grant for additional subsidy for disadvantaged communities.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects

from American Iron and Steel to construction materials and manufactured products.