Funding Options and Availability for Water and Wastewater Entities
Explore funding options and availability for water and wastewater entities in Kentucky as provided by the Kentucky Infrastructure Authority. Learn about grants, loans, and challenges faced during the COVID-19 pandemic. Discover opportunities for small and disadvantaged community water systems and infrastructure development.
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Funding Options and Availability for Water and Wastewater Entities Linda Bridwell Deputy Executive Director Bill Pauley Staff Advisor Kentucky Infrastructure Authority August 10, 2020 Website: http://kia.ky.gov
KIA Overview Provide subsidized and low interest loans to fund projects for public entities, which are primarily wastewater and drinking water infrastructure. 11 Board members 16 Employees and 15 independent contractor Area Development Districts: *Application *Credit analysis *Compliance *Federal grant application and reporting *Issuance of bonds (historical) *Water asset management and geospatial information system
COVID Challenges and Responses Document submissions and storage are electronic Digital signature procedures Board meetings via Zoom Board meetings are available to view live by going to the website or Youtube Meeting with utilities, Water Management Councils via Zoom
Grants Kentucky Infrastructure Authority Small and Disadvantaged Community Water Systems ($698,000) Kentucky Department for Local Government Appalachian Regional Commission Area Development Central Appalachia Distressed Counties Infrastructure Distressed Counties Community Development Block Grants
Grants Energy and Environment Cabinet Abandoned Mine Lands AML Waterline Grant AML Pilot Waterline and Treatment Clean Water Act Section 319 (Non-Point Source) Brownfields
Grants USEPA Brownfields (varies) https://www.epa.gov/brownfields/types- brownfields-grant-funding Kentucky Economic Development Cabinet Kentucky Department of Transportation US Army Corps of Engineers Section 595 Delta Regional Authority
Loans Kentucky Infrastructure Authority USDA/Rural Development USEPA Water Infrastructure Finance and Innovation Act (WIFIA) Brownfields National Rural Water Association Rural Community Assistance Partnership Kentucky Association of Counties
Loans Water Infrastructure Finance and Innovation Act (WIFIA) Additional $6 billion announced July 14 by EPA Minimum project funding $20 million Can be loan to individual agency, or financing agency 49% project funding loan (51% must be from other sources)
Grants and Loans-Rural Development Loan terms Up to 40 year term Market rate 1.875%, intermediate 1.5% and poverty 1.125% Contact: Shelbyville Rural Development Office 65 Breighton Blvd., Suite 3 Shelbyville, KY 40065Phone: 502-633-3294 greg.pridemore@usda.gov
KIA Historical Funding $2 billion for approximately 550 wastewater projects $572 million for approximately 250 drinking water projects $159 million infrastructure loans $123 million governmental agencies loans
KIA Current Funding Available funds for FY 2021 $98 million Wastewater and Stormwater Fund EPA grant - $20,225,000 $67 Million Drinking Water Fund EPA grant - $18,144,000 $1 Million Infrastructure Fund Under $1 Million Governmental Agencies Fund
KIA Funding Determination Clean Water projects are ranked by the Division of Water Based on Priority guidance Weight given to project helping to meet compliance Weight given to efficiencies, elimination of package plants Drinking Water projects are ranked by the Division of Water Based on Priority guidance Weight given to project helping to meet compliance Weight given to efficiencies, consolidation
Subsidization Small and Disadvantaged Communities Selection determined by annual Intended Use Plan, for Clean Water and Drinking Water SRF Program Project priority established by DOW Communities with MHI below 80% of Kentucky MHI, with priority to affordability index To extent funding is available 50% up to $1MM in principal forgiveness on new construction loans Standard 2.5%; nonstandard 1.5%, disadvantaged 0.25%
Infrastructure Needs Across the State KIA Data Request for additional infrastructure projects Request to ADDs in April for additional funding needs resulted in: * 1001 wastewater projects estimated at $892 million *475 drinking water projects estimated at $475 million
Trends Based on current KIA payment, future repayment projected for December: Under five borrowers have been struggling with payment, out of the 490 outstanding loans, on the June payment. Next payments are due December 1. Most have identified that revenues are sufficient to make the next payment. Keeping an eye on this, as the COVID19 crisis is ongoing.
Moving Forward- Questions & Expectations Will there be additional Federal assistance? Will there be additional funding options available locally? Monitoring CoVid-19 impacts on utility revenues and payments
