EQC Presentation 12_31_13

DETP/19/11899

''Tuesday, July 16, 2019 at 3:23:18 PM (GMT+07:00) Goldstein, Meyer:'' Rule Caption: Clean Water State Revolving Fund Longer-term Financing Adm. Order No.: DEQ 2-2014 Filed with Sec. of State: 1-28-2014 Certified to be Effective: 2-3-14 Notice Publication Date: 11-1-2013 Rules Adopted: 340-054-0071, 340-054-0072 Rules Amended: 340-054-0010, 340-054-0011 Subject: DEQ proposes new and amended rules for the Clean Water State Revolving Fund to allow public agencies a longer-term option for financing treatment works projects. The new option would allow for a bond purchase agreement with repayment terms up to 30 years for treatment works projects such as wastewater treatment facility construction and upgrades, stormwater controls, and sewer improvements and replacement. Non-wastewater and non-stormwater treatment works projects such as stream restoration and irrigation improvements would not be eligible for the 30-year, longer-term financing under this proposal but would still be eligible for the 20- year loan option. The proposed option would benefit smaller and lower-income communities by spreading the debt repayment over a longer period, thereby decreasing the financial burden on residents. All new borrowers for new treatment works projects would have the option of the traditional Clean Water State Revolving Fund loan with terms up to 20 years or the new financing option of a bond purchase agreement with terms up to 30 years. Combining the two types of financing for new projects is not an option. The proposed rules would limit refinancing of existing Clean Water State Revolving Fund treatment works loans to the most disadvantaged borrowers in the program. Economic status and loan characteristic criteria would determine the borrower’s eligibility and refinancing is a one-time, limited-period offer. For both new and existing eligible borrowers, the proposed rules would add interest rate premiums to the current base rates for the longer-term financing option to protect the fund’s sustainability. The proposed three-tiered interest rate premium ranges from zero percent for the most disadvantaged communities to 0.5 percent for the least disadvantaged communities. The proposed rules would not limit the amount of funds allocated for longer-term financing. Prioritization for general longer-term financing allocation and for incentives and reserves such as green projects, small communities and principal forgiveness would remain the same as in existing rule.