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Drinking Water State Revolving Fund Program Guidelines: Part VII


    1. Federal Cross-Cutters

      • Environmental Authorities

        • Archeological and Historic Preservation Act of 1974, Pub. L. 86-523, as amended

        • Clean Air Act, Pub. L. 84-159, as amended

        • Coastal Barrier Resources Act, Pub. L. 97-348

        • Coastal Zone Management Act, Pub. L. 92-583, as amended

        • Endangered Species Act, Pub. L. 93-205, as amended

        • Environmental Justice, Executive Order 12898

        • Floodplain Management, Executive Order 11988 as amended by Executive Order 12148

        • Protection of Wetlands, Executive Order 11990

        • Farmland Protection Policy Act, Pub. L. 97-98

        • Fish and Wildlife Coordination Act, Pub. L. 85-624, as amended

        • National Historic Preservation Act of 1966, PL 89-665, as amended

        • Safe Drinking Water Act, Pub. L. 93-523, as amended

        • Wild and Scenic Rivers Act, Pub. L. 90-542, as amended

      • Economic and Miscellaneous Authorities

        • Demonstration Cities and Metropolitan Development Act of 1966, Pub. L. 89-754, as amended, Executive Order 12372

        • Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans

        • Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended

        • Debarment and Suspension, Executive Order 12549

      • Social Policy Authorities

        • Age Discrimination Act of 1975, Pub. L. 94-135

        • Title VI of the Civil Rights Act of 1964, Pub. L. 88-352 (2)

        • Section 13 of the Federal Water Pollution Control Act Amendments of 1972, Pub. L. 92-500 (the Clean Water Act)

        • Section 504 of the Rehabilitation Act of 1973, Pub. L. 93-112 (including Executive Orders 11914 and 11250)

        • The Drug-Free Workplace Act of 1988, Pub. L. 100-690 (applies only to the capitalization grant recipient)

        • Equal Employment Opportunity, Executive Order 11246

        • Women's and Minority Business Enterprise, Executive Orders 11625, 12138 and 12432

        • Section 129 of the Small Business Administration Reauthorization and Amendment Act of 1988, Pub. L. 100-590

        • Anti-Lobbying Provisions (40 CFR Part 30) [applies only to capitalization grant recipients]
        (2)The Civil Rights Act and related anti-discrimination statutes apply to all the operations of the SRF program.

    2. Criteria for Evaluating a State's Proposed NEPA-like Process

      The following criteria will be used by the RA to evaluate a proposed SERP:

      1. Legal foundation. Adequate documentation of the legal authority, including legislation, regulations or executive orders and/or Attorney General certification that authority exists.

      2. Interdisciplinary approach. The availability of expertise, either in-house or otherwise, accessible to the State Agency.

      3. Decision documentation. A description of a documentation process adequate to explain the basis for decisions to the public.

      4. Public notice and participation.

        1. A description of the process, including routes of publication (e.g., local newspapers and project mailing list), and use of established State legal notification systems for notices of intent, and criteria for determining whether a public hearing is required.

        2. The adequacy of a rationale where the comment period differs from that under NEPA and is inconsistent with other State review periods.

      5. Consider alternatives. The extent to which the SERP will adequately consider:

        1. designation of a study area comparable to the final system;

        2. a range of feasible alternatives, including the no action alternative;

        3. direct and indirect impacts;

        4. present and future conditions;

        5. land use and other social parameters including recreation and open-space considerations;

        6. consistency with population projections used to develop State implementation plans under the Clean Air Act;

        7. cumulative impacts including anticipated community growth (residential, commercial, institutional and industrial) within the project study area; and

        8. other anticipated public works projects including coordination with such projects.

    3. Definitions

      Administrative Expenses - Costs incurred in managing and operating the SRF program. A State may use up to 4% of its allotment for program administration expenses.

      Annual Review - EPA's assessment of the success of a State DWSRF program.

      Appropriations - Statutory authority that, after apportionment by OMB, allows Federal agencies to obligate funds and make payments from the Treasury for specified purposes.

      Assurances - Certifications or pledges by the State that it will meet the requirements of the SDWA and other requirements of the program.

      Automated Clearing House - A Federal payment mechanism that transfers cash to States and other recipients of Federal assistance using electronic transfers from the Treasury through the Federal Reserve System.

      Biennial Report - The State's SRF Report to EPA which contains information on how the State has met the goals and objectives of the previous two fiscal years as stated in the Intended Use Plan and grant agreement.

      Bank/Banking - Crediting amounts (contributed by the State to SRF eligible projects or activities) to the SRF in excess of amounts required towards meeting certain requirements of future capitalization grants.

      Binding Commitment - A legal obligation by the State to a local recipient that defines the terms and the timing for assistance under the SRF.

      Capitalization Grant - The assistance agreement by which EPA obligates to award funds allotted to a State for purposes of capitalizing that State's revolving fund and funds for other purposes authorized in section 1452.

      Capitalization Grant Application - An application for Federal assistance submitted by a State, which in addition to the application form includes an Intended Use Plan, proposed payment schedule, and operating agreement or other documents describing how the State intends to operate its SRF.

      Certification/Certify - Documentation signed by the responsible party that specific requirements or standards have been or will be met.

      Community Water System - A public water system that: (a) serves at least 15 service connections used by year-round residents of the area served by the system; or (b) regularly serves at least 25 year-round residents.

      Cross-cutting Authorities - Federal laws and authorities that apply by their own terms to projects or activities receiving Federal assistance.

      Debt Obligation - A legal obligation or liability to pay something to someone else.

      Default - Failure to meet a financial obligation such as a loan payment.

      Disadvantaged Community - The service area of a public water system that meets affordability criteria established after public review and comment by the State in which the public water system is located.

      Disbursement - The transfer of cash from the SRF to the assistance recipient.

      Disbursement Schedule - A quarterly schedule of estimated disbursements from the SRF.

      Eligible System - Community water systems, both privately or publicly owned, and nonprofit noncommunity water systems.

      Environmental Review - An environmental review process conducted by States that complies with 40 CFR Part 6, Subpart E or an alternative "NEPA-like" State environmental review.

      Equivalency Projects - Projects that must total the amount equal to the Federal capitalization grants and must comply with environmental review requirements and Federal cross-cutting authorities.

      Financial Health/Integrity - The ability of the DWSRF to address SDWA needs and to be continually available to meet future needs.

      Guarantee - A promise to provide municipal bondholders with full and timely payment of principal and interest on the municipal debt obligation to the limit of the guarantee, in the event of default by the municipality.

      Intended Use Plan - A document prepared each year by the State, which identifies the intended uses of the funds in the SRF and describes how those uses support the goals of the SRF.

      Leveraging - The use of the capitalization grant as the security for the sale of State bonds. Leveraging does not include State financing arrangements in which repayment streams, rather than capitalization grant or ACH are used as the primary security for the bond issue.

      Loan - An agreement between the DWSRF and the local recipient through which the SRF provides funds for eligible assistance and the recipient promises to repay the principle sum back to the SRF over a period not to exceed 20 years, except for disadvantaged communities that may receive a loan for up to 30 years (that does not exceed the life of the project), at an interest rate established at or below market interest rates (may be interest free).

      Net Bond Proceeds - The funds raised from the sale of the bonds minus issuance costs (e.g., the underwriting discount, underwriter's legal counsel fees, bond counsel fee, financial advisor fee, rating agency fees, printing of disclosure documents/bond certificates, trustee banks' fees, various forms of credit enhancement and other costs that may be incurred by a State agency incidental to the bond issuance).

      Noncommunity Water System - A public water system that is not a community system.

      Noncompliance - Failure to satisfy the terms of the capitalization grant agreement, including unmet assurances, invalid certifications, or failure to manage the DWSRF in a financially sound manner.

      Nonprimacy States - States that do not exercise primary enforcement responsibility for public water systems.

      Operating Agreement - An optional document in which the State may establish the basic framework and procedures of the DWSRF that are not expected to change annually.

      Payment/Payment Schedule - A payment is an action by EPA to increase the amount of funds available for cash draw in the Automated Clearing House. A payment is not a transfer of cash to the State, but only an authorization making funds available for transfer to the State when a cash draw request is submitted. A payment schedule, indicating the timing and size of the payments to be made, will be agreed upon by EPA and the State based on the State's projection of binding commitments.

      Refinancing - Purchase of a previously executed debt obligation where initial debt was incurred and construction initiated after July 1, 1993.

      Set-Aside - Use of allotted State funds for a range of specific SDWA related activities identified in Section 1452, to encourage source water protection and other State drinking water program activities.

      State Match - Funds equaling at least 20% of the amount of the capitalization grants which the State must deposit into the Fund. The State must also provide a 10% match if the State uses the 1452(g)(2) set-aside.


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