2016 Annual Update April 2017 | Volume 3 Issue 1

State of OregonDepartment ofEnvironmental Quality

Oregon’s Clean Water State Revolving Fund Program UpdateIn 2016, Clean Water State Revolving Fund staff developed strategic goals to ensure effective, efficient service delivery and financial integrity. The goals are included in the 2017 Intended Use Plan, which details funded projects and program requirements.

Also new are marketing strategies for reaching communities who may not be aware of funding options and helping them navigate the loan process. A steady stream of projects maximizes water quality improvements and maintains an even pace of loan distributions.

Amendments to the Clean Water ActOn October 16, 2015 updates to loan program rules went into effect, based on the Water Resources Reform and Development Act, and resulting amendments to the Clean Water Act.

The changes include:

•A requirement that fiscal sustainability plans contain:

○ an inventory of critical assets that are a part of the treatment works

○ an evaluation of the condition and performance of inventoried assets or asset groupings

○ a certification that the recipient has evaluated, and will be implementing, water and energy conservation efforts as part of the plan

○ identifying funding sources and planning for maintaining, repairing or replacing treatment works

•Cost and effectiveness analysis to consider overall project costs, other non-monetary factors and maximize water and energy conservation. However, there is no requirement that communities select the least-cost alternative. At a minimum, the analysis must include:

○ The study and evaluation of the cost and effectiveness of the processes, materials,

INSIDE THIS ISSUE1 Oregon’s Clean Water State

Revolving Fund Program Update

1 Amendments to the Clean Water Act

2 State Fiscal Year 2016 in Review

2 Newport’s Big Creek Pump Station

3 Rulemaking

4 Upcoming Events

Continued on page 2

techniques and technologies for implementing the proposed project or activity

○ The sections of a project or activity that maximize the potential for efficient water use, reuse, recapture and conservation, and energy conservation, relative to:

•Construction or activity

•Operating and maintaining projects and activities over their lifespan

•Replacing the project or activity

If you have any questions about the program, contact Lee Ann Lawrence, Program Coordinator, lawrence.leeann@deq.state.or.us, 503-229-5622.

State Fiscal Year 2016 in ReviewDuring state fiscal year 2016 (July 1, 2015 to June 30, 2016), the Clean Water State Revolving Fund program signed 15 new loans with local governments for water quality projects in the amount of $110,087,885. DEQ provided $111,428,406 in project assistance for the year.

Loan activities include:

• 15 new loans made, totaling $110,087,885

• two communities were awarded principal forgiveness totaling $1,000,000

•$6.8 million supported "green" projects

•Two existing loans received increased funds

•Six existing loans were decreased due to unexpended funds

2017 Rates and Terms

The Clean Water State Revolving Loan program charges interest rates that are calculated based on criteria defined in Oregon Administrative Rule 340-054-0065. Different interest rates and other financial terms apply to different types of loans and to loans of differing repayment periods.

Rates are adjusted quarterly, based on the average Bond Buyer rates of the previous quarter, as published by the Federal Reserve. Once a loan is signed, the interest rate is fixed for the life of the

loan. If a fee is charged, the amount is equal to 0.5% of the unpaid balance, and is collected once annually. The rates effective for loans executed from April 1 through June 30, 2017 are available on the program website.

Project HigHligHt

Newport’s Big Creek Pump Station When the new Big Creek Pump Station came online earlier this winter, it was the culmination of significant planning and work. Reflecting modern improvements in design, engineering and materials, the pump station is equipped to meet current demands and future growth.

The original station was built more than 40 years ago next to Agate State Park, and suffered from a myriad of problems related to design, equipment and siting. Additionally, the population of Lincoln County increased over 40 percent in that same span of time, and welcomes 2.5 million tourists annually, putting additional strain on the system. Debris plugs and overflows of the system were an all too familiar headache for Tim Gross, city of Newport’s Public Works Director.

It was clear a replacement was needed, but as with any small town, the resources to tackle such a project are limited. The city turned to the Clean Water State Revolving Fund loan program to cover the $2,900,000 project. The loan offered flexibility

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“Wedding day and birth of my children aside,” says Gross, “getting that pump station operational was the greatest day of my life.”~Tim Gross, city of Newport Public Works Director

compared to conventional sources of funding such as bonds. Through the program, the city was able to take out funds as they needed them, which was a significant cost savings. An additional help was taking advantage of the sponsorship option, which allowed the city to combine point and non-point source projects together in a single loan.

The successful project is a great relief to the public works department and residents of Newport, and a terrific example of the flexible funding options of the Clean Water State Revolving Fund. “Wedding day and birth of my children aside,” says Gross, “getting that pump station operational was the greatest day of my life.” You can read more about the project on the city's website.

Interested in funding water quality projects in your community? Visit the program online or call 503.229.LOAN for information.

RulemakingTo provide clear guidance and efficiency, DEQ staff is updating program rules to address principal

forgiveness and consolidation of multiple loans, as well as remove outdated language among other updates.

Specific proposals include:

•Additional Subsidy: An interest rate reduction as an incentive for eligible borrowers in lieu of principal forgiveness. The proposal also allows principal forgiveness based on the actual costs of the green project components.

•Timely disbursements: Allows an extension if funds are not requested within two years of signing an agreement, thereby preventing the loan from being canceled.

•Restructuring/Refinance: Allows refinancing options under certain circumstances.

•Repayment: Mandates 45 days’ notice for loan prepayments.

Proposed rulemaking is reviewed by the program’s advisory committee, followed by a public comment period, and then presentation before the Environmental Quality Commission for adoption. Advisory Committee meetings are underway and the commission is expected to hear finalized rules in November. Interested in more information on current rulemaking? Sign-up to receive program updates.

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The City of Newport’s new Big Creek Pump Station, above was built to meet present and future demand.

MISSION STATEMENTOregon’s Clean Water State Revolving Fund program supports communities by funding projects that improve water quality and environmental outcomes for the State of Oregon. The program is dedicated to working with small communities and on projects that increase financial and environmental sustainability, climate resiliency, and water and energy efficiency.

- Program Charter

Clean Water State Revolving Fund700 NE Multnomah, Suite 600Portland, OR 97232Phone: (503) 229-LOAN (5626) (800) 452-4011Fax: (503) 229-6037CWSRFinfo@deq.state.or.us

Upcoming EventsAPRIL 14 DEQ CWSRF Applications Due by

5:00pm (pst) deq.state.or.us/wq/loans/apps.htm

MAY 16-19 National Pretreatment & Pollution Prevention Workshop & Training, San Antonio, TX aws.passkey.com/event/15977426/owner/3217/home

MAY 21- 24 Collection Systems Conference 2017, Omaha, NE wef.org/events/conferences/upcoming-conferences/collectionsystems/

JULY 23-26 Utility Leadership Conference & 47th Annual Meeting, St. Louis, MO stlouisarch.regency.hyatt.com/en/hotel/home.html

SEPT. 30-OCT. 4

WEFTEC 2017, Chicago, IL http://www.weftec.org/

AUG. 11, 2017 CWSRF Applications Due by 5:00pm (pst) deq.state.or.us/wq/loans/apps.htm

DEC. 8, 2017

CWSRF Applications Due by 5:00pm (pst) deq.state.or.us/wq/loans/apps.htm

Clean Water State Revolving Fund Contacts Northwest, Western Regions Covering the counties of: Clackamas, Clatsop, Columbia, Multnomah, Washington, and Tillamook, Benton, Coos, Curry, Douglas, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, and Yamhill

PROJECT OFFICERSJaime Isaza, 541-687-7341 Bob Haberman, 541-687-7359

Mailing address: 165 E. Seventh Avenue, Suite 100 Eugene, OR 97401

TECHNICAL ASSISTANCEChris Bayham, 541-687-7356

Mailing address: 165 E. Seventh Avenue, Suite 100 Eugene, OR 97401

Eastern RegionCovering the counties of: Baker, Crook, Deschutes, Gilliam, Grant, Harney, Hood River, Jefferson, Klamath, Lake, Wasco, Sherman, Malheur, Morrow, Umatilla, Union, Wallowa, and Wheeler

PROJECT OFFICERJaime Isaza, 541-687-7341

Mailing address: 165 E. Seventh Avenue, Suite 100 Eugene, OR 97401

TECHNICAL ASSISTANCETodd Hesse, 541-633-2026

Mailing address: 475 NE Bellevue, Suite 110 Bend, OR 97701

DEQ Headquarters

Lee Ann Lawrence, Program Coordinator, 503-229-5622

Anita Yap, Community and Program Assistance Manager, 503-229-6896

Angela Parker, Operations and Policy Analyst

Kathy Estes, Loan Specialist

Joe Bruss, Program Analyst

Jennifer Kenny, Program Analyst

Mailing address: Clean Water State Revolving Fund Headquarters, Operations Division 700 NE Multnomah, Suite 600 Portland, OR 97232-4100

Accessibility Documents can be provided upon request in an alternate format for individuals with disabilities or in a language other than English for people with limited English skills. To request a document in another format or language, call DEQ in Portland at 503-229-5696, or toll-free in Oregon at 1-800-452-4011, ext. 5696; or email deqinfo@deq.state.or.us.