Division of Environmental and Financial Assistance

The WPCLF Community Guide

INTRODUCTION

GETTING STARTED
     How Do I Get Involved With the WPCLF?
     Hiring an Engineering Firm
     Nomination to the Project Priority List
     Interest Rate Determination
     Financial Concerns
     Moving Ahead
     GETTING STARTED Checklist

PLANNING YOUR PROJECT
     Determine Your Existing Situation
     Analyze Your Alternatives
     Preliminary Costs
     Additional Funding Sources
     Public Involvement
     Planning Approval
     Moving Ahead
     PLANNING YOUR PROJECT Checklist

DESIGNING YOUR PROJECT
     Preparing the Detail Plans, Specifications, and Contract Documents
     WPCLF Issues That Affect Detail Plans and Specifications
     Plan Review and Permit To Install
     Concurrent Activities
     Moving Ahead
     DESIGNING YOUR PROJECT Checklist

RECEIVING YOUR LOAN
     Loan Application
     Easements and Land Acquisition
     User Charge System and Sewer Use Ordinance
     Service Agreements
     Operation and Maintenance Program
     Bidding Process
     OWDA Requirements
     Loan Agreement
     Loan Award
     Moving Ahead
     RECEIVING YOUR LOAN Checklist
BUILDING YOUR PROJECT
     Preconstruction Meetings
     Construction Progress Visits
     Operation and Maintenance Program Followup
     Project Changes
     Supplemental Loans
     Performance Certification
     Determining the Final Loan Amount
     Financial Management Over the Life of the Loan
     Moving Ahead
     Final Contract Cost
     Capitalized Interest
     OWDA
     Payments
BUILDING YOUR PROJECT Checklist

NONPOINT SOURCE PROJECTS
     Agricultural Nonpoint Source Projects
     Landfill Projects
     Brownfields
     Stream Corridor Protection Projects
     Stormwater Control Projects
     For More Information

CONCLUSION

APPENDICES
     LAWS AND RULES THAT AFFECT COMMUNITIES IN THE WPCLF
     WPCLF FORMS
     EXAMPLE LEGISLATION
     LOAN OPTIONS SUMMARY
     ADDITIONAL FUNDING SOURCES

In 1987, Congress replaced the Construction Grants program with the State Revolving Fund program. Rather than provide direct grants to communities, the federal government provides each state with a series of grants, then each state contributes a 20 percent state match. These combined monies are used to capitalize a perpetual source of funds to finance water pollution control activities at below market interest rates. To enact the State Revolving Fund program, the Ohio legislature created the Ohio Water Pollution Control Loan Fund (WPCLF). The Division of Environmental and Financial Assistance (DEFA), within the Ohio Environmental Protection Agency, manages the WPCLF program. The Ohio Water Development Authority acts as the financial manager for the fund.

To familiarize you with our program, we have developed this community guide. The guide is designed to give you an overall view of WPCLF program requirements, and guide you through the steps as we proceed through the WPCLF process together. At the end of each chapter, we have included a checklist to assure that important, but not always readily apparent, tasks are completed at the right time and in the right order.

To be considered for WPCLF financing, your proposed activity must result in a water quality benefit. Projects eligible for WPCLF financing include such activities as construction of wastewater treatment plants and sewers, as well as activities associated with nonpoint source water pollution, such as agricultural runoff control, landfill closures, contaminated industrial property (brownfield) remediation, stream bank restoration, and wellhead protection. Although this guide is focused on the general process for funding of publicly-owned treatment works, the process for funding of nonpoint source activities is similar. If you are considering a nonpoint source activity, please contact DEFA as early as possible.

The WPCLF offers a variety of financing options at below-market interest rates to assist communities in meeting their specific needs. These include long-term loans (up to 20 years) at the standard rate, short term loans (up to five years) at a reduced rate for small construction projects, loans for planning and design, and a minimum interest rate loan for communities of high economic need. In addition, the WPCLF offers interest rate discounts for special activities such as municipal compliance maintenance, water conservation, and construction of non-conventional technologies.

In addition to offering low interest financing for the planning, design and construction of water pollution control projects, DEFA also offers assistance for the wide variety of activities discussed in this community guide. DEFA staff members have expertise in planning, design, environmental sciences, civil and environmental engineering, local financing, and administration. We will assist you through each step of the process from your initial planning to project completion.

The planning, design, construction and operation of a wastewater project is not as formidable a task as it may sometimes seem. We trust that this guide will serve you well, and we encourage you to take advantage of the experience and expertise of DEFA staff. Our goal is to make your journey as easy and straightforward as it can be.

Generally, communities get involved with water pollution control projects for one of two reasons. Either they have a problem that must be fixed to comply with water quality laws, or the community wants to make improvements for its own reasons. The first step is for you to have a firm idea of what you are trying to accomplish. To save time and money, decide where you are now and where you want to be when the work's all done.

If you have a water pollution control project, problem or need, and wonder if the WPCLF can help you, the first step is to call us. We will talk with you and schedule a general informational meeting.

These meetings can be as formal or informal as you want ranging from an informal discussion to a presentation at a Village Council meeting. At the initial meeting, DEFA representatives will meet to discuss the WPCLF program and important information you need to start the loan process. This meeting provides a good opportunity for you to ask questions and discuss what you want to accomplish.

If you choose, we can talk about the specifics of your project at the general informational meeting. In the same meeting, or subsequent meetings, we can start to identify the scope of your planning effort, identify what preliminary work you have already completed, and outline the steps for what to do next.

A community must have the technical expertise and managerial capability needed to plan, design, and build the proposed project. If you do not have an engineering staff, or choose not to use your staff, your other option is to hire an engineering firm to assist you. The selection of an engineer can be the most important phase of a project. The quality of the finished product, whether an analysis of a sewer system, a design of a wastewater treatment plant, or the construction of a new interceptor sewer, can greatly depend on the engineering firm selected for the job.

You may sign one contract with the engineering firm to assist you through planning, design and construction supervision. If you choose, you may contract with a different engineering firm at the beginning of each phase. If you have questions on how to find an engineering firm, look at Ohio EPA's Engineering Services Procurement Guide for details (contact DEFA for a copy).

During the information meeting, we will give you a Project Priority List (PPL) nomination form. This form is used to let us know that you may be interested in the WPCLF program, so you should complete and submit the PPL nomination form as soon as possible after you receive it. Although it is not the actual loan application, your community cannot be awarded a loan until the project is listed on the PPL. Completion and submittal of the PPL nomination form in no way obligates you to participate in the WPCLF loan program.

The PPL nomination form requests that your community provide the best information currently available about the project. Generally, this is information that the community already has available. If unknown, information such as costs can be estimated when completing the form.

When we receive your PPL nomination form, we use the information provided to assign a score to your project so it can be ranked on the PPL. We will notify you when you are ranked on the list. Currently, financial assistance is awarded based on a project's readiness to proceed rather than its PPL ranking. We will do everything we can to have money available when you need it, regardless of where your project may actually be ranked on the priority list. However, should demand for WPCLF money exceed the amount available, we will award loans to the highest ranked project that is ready to proceed.

The standard interest rate is determined on April 1 and October 1 of each year based on the current national bond market index. The longest term available is 20 years. Short-term loans (up to five years), planning loans, and design loans are available at a reduced interest rate. A community with high economic need may qualify for the minimum interest rate, and additional reductions to the standard rate are available in certain situations. Please see Appendix D for a summary of interest rate options.

By now, you have probably started thinking about the money you will need to complete your project. Because project cost estimates will change through planning, design, and construction, it is important to begin tracking your costs early, and continue to monitor them as your project takes shape. At your request, we will help you coordinate with other funding agencies and evaluate your available finances.

You have taken a positive first step by contacting us, and we will be here to guide you and provide assistance when needed from now until your project is built and operating. The next step in the process is for you to begin planning specifically what you need to do to successfully complete your project and meet your goals. The next chapter discusses planning your project in more detail.

Things that should be done by the end of GETTING STARTED:

Determine where you are now and where you want to be when the work is complete.

Hold a general information meeting with DEFA representatives.

Submit a Project Priority List nomination form.

Effective project planning should help you define your current situation, select the best solution, identify specific steps to implement your solution, explain the project to your community as well as help secure WPCLF financing. Keep in mind that the future success of your project depends on the thoroughness of the work you do during this step.

A clear idea of the existing situation and problem will help you decide which alternatives should be considered. You need to determine factors such as service area, population projections, and flow projections. What type of facilities exist now? What condition are they in?

Before you can identify alternatives, it helps to clearly identify the purpose for starting this project. What precisely is the existing situation? Is there an environmental problem you need to solve, or are you anticipating the future needs of your community? To help you identify your existing situation and direct you toward appropriate alternatives you should consider things such as the condition of your existing sewers and wastewater treatment plant and whether they are meeting current Ohio EPA requirements, population and growth of your community and potential effects on the environment resulting from future development which your project may permit such as the loss of natural habitat or effects on nearby stream corridors.

An important factor to consider is how much sanitary sewage there is now and how much there will be in the future. The type of sewer and treatment plant improvements you should consider depends on how much sanitary sewage there is to collect, transport through sewers to the wastewater treatment plant, and treat. If the purpose of your project is to construct sewers, sewage flow can be estimated and your proposed facilities designed based on these estimates.

However, if you have an existing sewer system, it is important to determine the actual sewage flows and predict how much sewage flow you will have in the future. In addition, all sewer systems have places where "clean" water - from leaks and cracks in the sewer, basement sump pump discharges, or storm drains - gets into the sewer system. This extra water can increase the amount of sanitary sewage that must be treated at the wastewater treatment plant or lead to sewage backing up into basements. As part of your planning process, we will expect you to identify how much of this clean water is in your system, and whether it is cheaper to remove the sources (the leaks and direct connections) or to transport the clean water to the wastewater treatment plant.

Are you thinking about expanding your wastewater treatment plant or building a new wastewater treatment plant? If so, a revised or new National Pollutant Discharge Elimination System (NPDES) permit will be necessary. This permit sets the level of treatment your wastewater treatment plant must accomplish to meet the water quality standards established for the stream receiving the discharge. Determining the permit limits can sometimes be a lengthy process, in some cases requiring Ohio EPA to conduct extensive sampling of the receiving stream. As soon as you know the size of your new facilities, submit a request for new limits. We can do this for you, or you can contact the Ohio EPA district office in writing.

Once the existing situation is clearly identified, there will probably be several solutions available. Which solution is the best one? An alternatives analysis will compare the different solutions and help you select the best alternative.

Your engineer should do a present worth analysis to compare the total costs over the next 20 years of different alternatives. In order to determine these total costs, the analysis will combine initial construction cost and 20-year operation, maintenance, and replacement costs to calculate a total cost for each alternative. This allows you to determine the least costly alternative for your project.

You may think the "best" alternative is the least expensive one. However, nonmonetary factors also play a role in your decision. Nonmonetary factors include short-term effects to environmental features (see box at left) and long-term effects (such as new development) due to the project; reliability questions; and concerns about ease of operation. You should also consider ways to lessen the short- and long-term effects of each alternative. These ways can include erosion control during construction to controls on development served by the project. The nonmonetary pros and cons of each alternative should be weighed along with the present worth costs of each to determine the best overall solution for your current situation.

Now that you've selected a solution, you should be able to get a good idea of what the total project costs will be. It may be necessary to find funding sources in addition to the WPCLF to try to lower the cost to the user and make the project implementable. It's never too early to start asking yourself whether you have enough financing lined up and how much the project will cost the average user. User costs can be estimated by adding the cost of connecting to the system, paying off debt, and paying for the yearly operation and maintenance.

We can provide information and contacts for several other funding sources. The major sources of grant money available are the Ohio Public Works Commission, Community Development Block Grants, and the Rural Economic and Community Development Services (formerly Farmers' Home Administration). These funding sources may have different time schedules than the WPCLF, so it is important to know each source's deadlines to assure that all possible sources of funding are evaluated before you need them.

It is important to get the public involved and informed early. Early participation can improve community acceptance, even when user charges increase. A successful public participation program may include information meetings, public hearings, news releases, or flyers. The point is to share all available information concerning the project. Also, an explanation of what the problem is and how much it will cost to fix can minimize confusion and controversy. We can help you evaluate what level of public participation may be appropriate for your project.

When you submit your planning information to us, we will review the potential environmental effects your proposal may have, both in the short term and the long run. For most projects, this is a relatively quick process. It could be longer for projects with potential areas of concern (such as the existence of wetlands, archaeological or historical sites, or stream corridor issues).

Next, DEFA will prepare an Environmental Assessment (EA) or, under certain circumstances a Limited Environmental Review (LER), for the project which summarizes the environmental, technical and cost information developed during the planning process. The EA documents the significance of your projects's effect on the environment and describes any actions necessary to reduce the effects your project may have on the environment. These actions will be incorporated into the detailed plans and specifications of your project. The EA will be sent to a sampling of the public affected by the project. After a 30-day comment period, which may be waived in the case of an LER, we will make a final decision as to whether the project has the potential for causing significant environmental effects. If there are no significant environmental effects identified, we will issue a final Finding of No Significant Impact (FNSI) and an official approval for your planning effort.

Finally, you have a well-defined plan of action. While this may not be the most expensive step of this process, it is definitely the most important. As mentioned before, the future success of what you construct in your community depends on the job you've done through this step. The next step is for you to put the project you are planning to build on paper in the form of detail plans and specifications. The next chapter discusses designing your project in more detail.

Things that should be done by the end of PLANNING YOUR PROJECT:

Hired an engineering firm to assist you with project planning.

Determined design flows.

If necessary, applied for a new or revised NPDES Permit.

Evaluated alternatives and selected one to implement.

Prepared a preliminary estimate of total project cost and cost per user.

Identified and contacted potential sources of funding for the project.

Adequately involved the public.

An Environmental Assessment issued by DEFA for public review.

FNSI issued and subsequent approval of your planning effort by the Ohio EPA.

Now that you have decided what you want to build, you need to prepare the construction documents so contractors can submit bids to construct the improvements. Ideally, work should start on these documents after DEFA has issued a final Finding of No Significant Impact and approved your plan. However, most communities start preparing the construction documents sooner. Starting sooner won't create any problems as long as you and DEFA have come to an agreement on the content of your project.

The construction documents consist of three parts:

Detailed plans that provide a detailed picture of exactly what you want to build and where you want to build it.

Specifications that describe and explain what you want to build.

Contract documents that describe the process you will use to seek bids and all the legally binding requirements on the construction contractor(s).

Preparation of complete and accurate construction documents is extremely important. Contractors will bid on and build exactly what they think the contract documents say. Any ambiguities and/or errors in the construction documents may lead to confusion and result in delays, disputes and cost overruns. Therefore, it is important to hire a competent engineering firm to prepare documents that thoroughly and accurately describe everything that you expect the contractor to do.

The WPCLF program has some requirements that you may not normally include as part of a wastewater facility design. When you are ready to start the actual design of your project, you should be aware of the following:

If the estimated construction cost in the planning documents (this does not include engineering fees, easements, etc.) is $10 million or higher, you must perform a Value Engineering (VE) study. This is nothing more than getting a "second opinion" from a different engineering firm when the design is about 25 percent done. Experience has shown that VE studies results in design changes that can save significant amounts of money, make construction easier, and improve operation. The purpose of the VE study is to get a fresh view of the design. Any recommendations should not be considered a criticism of the design engineer. If your project is less than $10 million, a VE study is not required for a WPCLF loan, but it may still be a good idea.

Since this is an environmental program, DEFA will want to make sure that the construction documents include appropriate environmental standards. These standards ensure that the construction of the project does not result in significant or avoidable destruction of the environment. There are also some social standards that must be included, such as making sure the contractor makes an effort to subcontract some of the work to companies owned by minorities and women, and pays the workers the prevailing wages for your area. Please see Appendix A for a complete list of environmental standards and social policy authorities. DEFA can provide samples of language for you to include in the contract documents.

A review of your plans by Ohio EPA and issuance of a Permit to Install (PTI) is necessary whether or not you are getting a WPCLF loan. If you are getting a WPCLF loan, you must submit the detail plans and a PTI application to us for review. We will review the documents for the following:

conformance with technical standards to make sure the project will be constructed according to accepted engineering standards which, in Ohio, are referred to as the "Ten State Standards;"

consistency with your approved planning effort and Value Engineering study, if applicable, to make sure the project that you planned is the project you will build;

inclusion of appropriate environmental standards;

conformance with social standards required by the WPCLF; and

conformance with Ohio Revised Code procurement requirements. This is simply an advisory activity; issuance of a PTI does not mean that DEFA is making any formal determination on the legality of your procurement process.

Once the review is complete and everything is as it should be, Ohio EPA will issue a PTI for your project. The PTI is valid for 18 months. You will receive a copy of the PTI, a report prepared by DEFA detailing the proposed construction, and a copy of the plans stamped "SEWERAGE APPROVED."

As you proceed through the project design process, there are other tasks you should be completing. It is important to do these things during the design phase rather than waiting until the design is complete. All of these items have to be completed before you receive a WPCLF loan:

You should identify and start acquiring any land and/or easements you will need to construct the project. This can be a time-consuming process. The sooner you start, the less likely you will have project delays or extra costs. Procedures for easement and land acquisition are discussed in Receiving Your Loan (see page 20).

You should confirm your sources of construction financing. This is especially important if you have more than one source. If a funding source (especially a grant) falls through, it could have serious effects on the project's cost to your users. These funding sources may have different time schedules than the WPCLF so it is important to know each source's deadlines to ensure that funding from all sources is obtained before you need it. Additional funding sources are listed in Appendix E.

You should draft a proportional User Charge System (UCS) and Sewer Use Ordinance (SUO). The UCS describes how to charge users of the project so you can generate enough money to operate and maintain the project after construction is done. The SUO gives you control over how your sewer system can be used. See Receiving Your Loan for more details.

You should draft service agreements with any other community whose treatment works you may be sharing. In other words, if your sewer system connects to someone else's treatment plant, or your treatment plant treats sewage from outside your jurisdiction, you must have a contract with them to provide service and to establish how that service is paid. This is discussed in more detail in Receiving Your Loan.

You should decide what your dedicated source of repayment will be for your WPCLF loan as well as for any other funding source used. It is very important to determine how your community will be paying its share of the costs as early as possible to avoid unpleasant public surprises at the last minute. You must dedicate a specific source(s) of revenue, such as user fees or assessments, to repay the WPCLF loan, as well as any other loans you may obtain.

You should talk with your engineer about developing a draft Operation and Maintenance program, along with the plans and specifications. It is very important for both you and DEFA to be sure that you know how to operate and maintain the facility once it is built. Before we approve the loan, we will develop a plan with you and your wastewater treatment plant operator to operate your new facilities. This is discussed in more detail in Receiving Your Loan.

While it may seem otherwise, the design phase of a project is not very complicated. Some tasks are highly technical and will require the assistance of a competent engineering firm. Other tasks deal with the administrative and programmatic necessities of designing and building your project. The resources and expertise of DEFA are available to assist you with any of the design phase work outlined above.

While the planning and design stages may seem to take a long time, from here on out the process will start moving very quickly. Now that you have approved construction documents, it's time to find someone to build the project. Now is also the time to finalize all of the financing. The next chapter discusses receiving your loan in more detail.

Things that should be done by the end of DESIGNING YOUR PROJECT:

Hired an engineering firm to help design your project.

Performed a VE review of your project (for projects with estimated costs more than $10 million).

Identified any specific land and/or easements you will need.

Identified a dedicated source of repayment for any financing you receive.

Drafted a proportional User Charge System.

Drafted any necessary service agreements.

Completed and submitted your detail plans and specifications, and paid your

Application and plan review fee.

Received your Permit to Install.

Received the final engineer's estimate for the project.

Project planning and design are not the only steps necessary to receive a loan. As with any financial matters, there are certain requirements that you must meet before you can receive a loan. This section will discuss the necessary paperwork and other steps that you must take to ensure that your loan is ready when you need it.

Completion of a loan application serves as your formal request for financing from the WPCLF. We use the loan application process to ensure that your project meets all program requirements and qualifies for a loan. The completed application identifies the loan amount requested, the term of the loan, and the interest rate. Please see Appendix D for a full description of the terms and rates available. A copy of the loan application documents are included in Appendix B. Contact us for more information about the loan application procedures.

You may need to acquire private property, including easements, for your project. The actions that you need to take in acquiring land must be fair to the people selling the land, while also being fair to the taxpayers. The procedures required by the law allow for this to happen. Generally, land acquisition is not a problem, but all work to achieve the necessary easements and obtain land should be started as soon in the process as possible. This early start could prevent your project from being delayed due to litigation or other land owner opposition.

There are two administrative requirements of receiving a WPCLF loan that require local legislative actions: the User Charge System and Sewer Use Ordinance.

Proper financial management is an important aspect of the successful operation of your wastewater treatment facilities. The User Charge System describes how to charge users of the project so you can generate enough money to operate and maintain the project after construction is done. The costs of operating and maintaining the facility (such as salaries, utilities, chemicals, etc.) should be distributed to the users in a proportional manner, according to each user's contribution to those costs. Debt retirement is a separate concern from your User Charge System. The format of your User Charge System must be approved prior to receiving a loan, but the local legislation formally adopting the system does not need to be passed until construction is 50 percent completed.

The Sewer Use Ordinance gives you control over how your sewer system can be used, to protect the integrity of your treatment facilities. The ordinance will prohibit the discharge of toxic chemicals into the sewers, outline procedures for when there are accidental spills or overflows, discuss the rights of your community regarding the types and amounts of sewage you will accept into your sewer system, and address issues such as the connection of residences to the sewer system.

If your sewer system connects to someone else's treatment plant, or your treatment plant treats sewage from outside your jurisdiction, you must have an agreement with them to provide service. This agreement may be between your community and another, or even between you and individual homeowners or corporations.

The agreement should address issues such as the purpose for the agreement, the parties involved, the boundaries of the areas to be served, and the duration of the agreement. Please contact DEFA for assistance with preparing a service agreement.

An Operation and Maintenance (O&M) Program is vital to the successful operation of your project, and is meant to ensure that your facility will be operated and maintained properly for the life of the loan. The goal of the WPCLF O&M program is to tailor the required information to your community's needs. Your O&M program will be designed to give your community the tools needed (training, manuals, and administrative support) to consistently meet NPDES permit limits and to ensure that your facility is operated cost-effectively. Each community that receives a WPCLF loan must enact an O&M Program for the funded project.

Your O&M program may consist of items such as an O&M manual, standard operating procedure manuals, videotaped training and operation lessons, or other classroom training. We will work with you to determine the best O&M program for your employees and facility. Meetings held during the loan application process will help you develop a plan to implement your O&M program during construction.

The first step in the bidding process is to advertise. Generally, bid advertisements are published in local papers and trade magazines at least 90 days before the estimated start of construction. The 90-day time period provides 30 days for actual advertisement for bids plus another 60 days for you to evaluate the bids received, select a contractor, and finalize your financing. Advertising requirements may vary for your community, so please check with your community's solicitor if you have any questions.

After you have received bids for your project, and before you award the contract, you must submit your bidding process documentation to us. You must submit documentation that all applicable state procurement and federal laws pertaining to construction contracting have been followed. DEFA's review of the documentation will also determine the eligibility of the as-bid construction costs for loan reimbursement.

The Ohio Water Development Authority (OWDA) acts as the WPCLF banker and co- signs the loan agreement. OWDA must receive certain documents before your loan can be approved. A checklist of the required documents is included in the loan application package (see Appendix B). Contact DEFA if you have any questions about these documents.

Also, OWDA charges a fee of 0.35% of your total loan amount as an application fee. The fee must be paid before you receive your loan and cannot be included in the loan.

After all the documentation is submitted and approved, we will draft a loan agreement that spells out the terms and conditions of your WPCLF loan. The loan agreement includes items such as the length of the loan, the applicable interest rate, repayment dates and amounts, and other appropriate exhibits that help to further clarify the terms and conditions of the loan. Please note that the repayment dates cannot be amended once the loan agreement has been signed. Your community officials, the Ohio EPA director, and an OWDA representative will sign the loan agreement to verify and document that you accept the terms of the loan.

Near the time you expect to receive your loan, we will hold a meeting with you to go over our respective responsibilities as outlined in your loan agreement and discuss any questions you may have.

The last action in the approval process for your loan will occur at an OWDA board meeting. The OWDA board meeting is held on the last Thursday of every month, except November and December, for which a combined meeting is held in mid- December to avoid conflict with holidays. The loan award for your project will occur during one of these OWDA meetings. After the board meeting, you will receive a Certificate of Availability of Funds, which you need under Ohio law before signing construction contracts.

You are one step closer to completing your project. The next step is for you to initiate construction. Although you have received your loan, our involvement does not end here. We will be available for you throughout construction to answer any questions you have and help your project go smoothly. The next chapter discusses building your project in more detail.

Things that should be done by the end of RECEIVING YOUR LOAN:

Completed and submitted your loan application package, including OWDA information.

Completed land or easement acquisition.

Developed User Charge System and Sewer Use Ordinance and received approval from DEFA.

Developed and signed any service agreements needed for service outside your jurisdiction.

Developed the plan for your Operation and Maintenance program to be implemented during construction.

Signed a contract with your engineering firm for construction supervision and initial operational assistance.

Advertised, opened, and reviewed construction bids and submitted bid documentation to DEFA.

Received, signed, and returned your WPCLF loan agreement to DEFA.

Received the Certificate of Availability of Funds from OWDA.

Awarded the construction contract(s).

Now that your loan has been awarded, you are ready to proceed with construction. After all the hard work has been done to get to this point, it is important to remember that building the facilities correctly can make the difference between a successful and an unsuccessful project. Also, construction rarely proceeds exactly as planned during design, so changes are to be expected. However, changes can add up to increased costs, so it is also important for you to monitor progress during construction and not leave everything in the hands of your engineering firm.

To get your project off to a good start, your construction management engineer will usually set up a preconstruction meeting. At this meeting, your engineer will discuss your respective roles during construction, a schedule for regular progress meetings, any special provisions in the contract documents or specifications, how change orders will be handled, and how to coordinate with the treatment plant operator if work is being done at an existing wastewater treatment plant. Ohio EPA, as well as other funding agencies, is often invited to participate at this meeting.

During construction, DEFA staff will visit your construction site to observe the work being performed. During these progress visits, we will review the construction status, get an update on the construction schedule, discuss the status of any project changes, check to see if the standards designed to prevent environmental impacts are being implemented as required, and make sure that inspection is being provided by the construction engineering firm. Normally, these visits are scheduled to coincide with scheduled meetings with you, your engineering firm, and your contractor. We can also coordinate these site visits with your Ohio EPA district office representative so that person can attend the construction site at the same time.

If there are any concerns following the visit, we will follow up with you and your engineering firm to discuss these issues, and will also help you find solutions and develop a schedule for correction. These site visits are an excellent opportunity for you to ask questions and receive assistance from us during construction.

Before you received your loan, we worked with you to develop a plan for your O&M program. Now that construction has started, it is time to implement the plan. We will have meetings during construction as scheduled in the plan to help you develop your O&M program and implement it. By including us in these meetings, we can contribute technical assistance if you need it, help identify minor problems before they become major ones and help you to keep from overlooking the O&M program during the busy construction period.

Changes to your original project design are bound to occur during construction. These changes may result for any number of reasons such as an error or omission in the original detail plans and specifications or site conditions that were not anticipated during design. Many of these things are to be expected in a complex construction project. All of these changes will require review and approval from Ohio EPA.

A change order is the legal document that is used to change the terms of your contract with the contractor after the bid contracts have been signed. We review all change orders for your project to determine if the proposed change is technically and environmentally acceptable, and if the work included in the change order is eligible for funding through the WPCLF. If the change order satisfies these two items, we will approve and fund the work from the contingency line item of your loan. If the change order satisfies only the technical and environmental review, but is not eligible for funding, the work can be completed, but another source of funding will have to be used.

Depending on the type of change to your engineering agreement, the change may be in the form of an agreement letter or a completely revised contract. If there is any change in cost or a change in the substance of the contract, the revisions are to be sent to DEFA for review. Again, the change is reviewed to determine whether it is acceptable, and if the work included is eligible for funding. Increases in cost are funded from the contingency line item of your loan.

All loans include a five percent contingency line amount to cover all the increases to a project. If this amount is exceeded, you can apply for a WPCLF supplemental loan for additional funds. A supplemental loan acts as a modification of your original loan agreement to cover the increases. Please be aware of the amount remaining in this contingency line item and notify us as soon as you think you may need a supplemental loan.

After you complete construction, you (or your official community representative) must notify us in writing when you initiate operation of your new facilities. After this date, you have the responsibility to monitor the operation of your new facilities for one full year. This year is intended to give you time to learn about and operate the new facilities and identify and work out any problems that arise after you start operating. After this one-year period is over, you must certify whether your project operates as intended during planning and design and that your User Charge System is generating enough money to cover expenses. DEFA refers to this requirement as the Performance Certification.

The certification you need to submit is included in your loan agreement. Your certification will indicate whether or not the facilities are operating as intended. If your project is not operating as intended, you need to indicate what you are doing to correct the problem and provide a schedule of when corrections will be completed.

Even though your initial loan award was based on actual bid amounts, the cost of the project will probably change throughout construction. As the construction amount changes, the total loan amount will change, along with the repayments to the WPCLF fund over the life of the loan.

After final equipment and construction costs have been established, all change orders have been submitted to us for review, and all engineering services during construction and after initiation of operation have been completed, you are ready to confirm your loan amount. If there are any shortfalls in other sources of funding included in your project, the WPCLF loan may be adjusted to cover them.

Now is also the time for you to decide how you will pay off the capitalized interest portion of your loan. Capitalized interest accrues from the time the loan is disbursed until six months before the first payment is due. It can be paid up front, or rolled into the loan. If you are paying up front, you must do so prior to your first semi-annual payment to OWDA.

If you charged assessments as part of or the sole means of paying for the project, by this time you may have some users that have already paid their assessment in full. If this is the case, you will have a one-time opportunity to decrease the capital amount of your loan with the assessments collected. Under no other circumstances can the capital amount of the loan be reduced.

By the time all these final costs have been calculated, you probably will have made your first payment on the loan. After an initial adjustment, your semi-annual payments will be equal and your repayments to the OWDA will be due on January 1 and July 1 for the term of your loan.

Once your project is complete, we will check back with you on your financial management of the system. Your WPCLF loan agreement requires you to maintain the approved User Charge System for the life of the loan. Conducting an annual review of the User Charge System will let you see if your wastewater service charges are still adequate. The service charges must generate enough revenue to operate, maintain, and replace equipment or parts of your system, to support a capital improvements program if your community has one, and to repay the WPCLF loan.

Also, you will receive a request from OWDA for a report on the income of your wastewater treatment system. The request will come with your July semi-annual bill, to be submitted with your July payment.

Congratulations! Your project is finally complete and operating, but now you have new wastewater treatment facilities to maintain and operate. Collecting sufficient revenues to properly operate your system, not to mention pay back your WPCLF loan, is essential for the long-term success of your project. Although your project is done from a construction standpoint, Ohio EPA is always here as a resource for your questions and problems. We can help with operational questions or questions about your rate system and finances.

Things that should be done by the end of BUILDING YOUR PROJECT:

Instituted your Operation & Maintenance Program.

Enacted your approved User Charge System and Sewer Use Ordinance.

Notified DEFA when your project initiated operation.

Operated and evaluated your project for a one-year period.

Certified to Ohio EPA whether your project is operating as intended, or if it is not, and that you are taking the necessary steps to correct any problems.

Finalized project costs and determined your final loan amount and semi-annual payment.

Things you should be working on by the end of BUILDING YOUR PROJECT:

Collecting revenues

Repaying your WPCLF loan

Operating and maintaining your new facilities.

Most of this manual deals with "traditional" project types (new or upgraded wastewater treatment plants, new collection systems, sewer system rehabilitation, etc.) which have been funded through the WPCLF. In the last few years, the WPCLF has expanded its capability to fund other types of projects which also lead to important water quality benefits. While these water quality needs are not new, the projects have not traditionally been funded by the WPCLF.

Planning, design, and construction loans and below-market interest rates are available for these nonpoint source projects just as they are for treatment works projects. The mechanics of how the loans are awarded are generally similar to the traditional WPCLF projects.

It is important to remember while reading this section that the eligible nonpoint source uses of the WPCLF are expanding, and not necessarily limited to what is described below. If you have any question about whether or not your project may qualify for WPCLF funding, contact us for information.

Agricultural nonpoint source projects are intended to stop or prevent "nonpoint source" pollution from entering streams and affecting water quality. Examples of agricultural nonpoint source pollution include sediment, fertilizer, or animal waste. These projects make use of ways to reduce or eliminate sources of nonpoint pollution. Activities that have been funded by the WPCLF include animal waste facilities, conservation tillage equipment, grassed waterways, and precision fertilizer application equipment.

Nonpoint source pollution projects are usually developed on a "watershed" basis. A watershed management plan is prepared to serve as the basis for proposed improvements. These projects are usually managed and monitored either by a watershed committee or by local soil and water conservation districts. WPCLF funding can occur through direct loans (like those discussed in the previous sections) or by "linked deposit" loans. Linked deposit loans are actually made by a commercial bank that is able to offer an interest rate discount based on a below market investment made from the WPCLF. Contact us for more information on the linked deposit program or other agricultural nonpoint source pollution control questions.

WPCLF-eligible landfill projects usually involve the closure of a landfill to benefit water quality by stopping or preventing landfill leachate from entering a stream or ground water. The WPCLF has funded the planning, design, and closure of several landfills. Sometimes, the WPCLF loan can be used in lieu of a trust account for the closure activities. Landfill closure plans can be used as the basis for the project. We will coordinate with the Ohio EPA Division of Solid and Infectious Waste Management (DSIWM). For more information, contact either DEFA or DSIWM at (614) 644-2621.

Brownfields are industrial sites which generally have been abandoned because they are contaiminated with hazardous waste(a more technical definition is available from Ohio EPA's Voluntary Action Program). WPCLF funding can be used for the site investigation, design, or actual remediation. Funding for remediation is limited to activities that address water quality. We will coordinate these projects with Ohio EPA's Division of Emergency and Remedial Response (DERR). For more information, contact DEFA, or DERR at (614) 644-2924.

Stream corridor protection projects are intended to restore or preserve the vegetation alongside a stream. This vegetation is important because it filters out sediment, creates habitat for terrestrial species, and furnishes much needed shade and food for aquatic organisms.

These types of projects are developed to address a long segment of a stream, and are not intended to propose solutions for one or two properties. WPCLF funding, provided through direct loans or linked deposits, can be used for tree plantings, willow-posting, other forms of stream bank restoration, conservation easements, or permanent purchases of land. Contact us for more information on stream corridor protection projects.

Stormwater control projects may involve the reduction of stormwater pollutants or prevention of stormwater from entering a stream. This can be accomplished by creating sediment ponds or grassed waterways, treating stormwater in wetlands, and by other innovative means. A stormwater control plan would serve as the basis for the project. WPCLF financing could be provided either through direct loans or linked deposits. It is important to remember that these projects must realize a water quality benefit to be eligible for WPCLF funding. Routine storm sewer replacement and new storm sewers built solely for flooding/runoff control are not eligible. Contact us for more information on these projects.

As mentioned above, the eligible nonpoint source uses of the WPCLF are continually expanding, and are not necessarily limited to those mentioned above. If you have a project that will benefit water quality, we will try to find a way to work with you to provide WPCLF funding. If you have any questions about whether or not your project may qualify for funding, contact us for more information.

The Water Pollution Control Loan Fund (WPCLF) has offered financial, technical, and administrative assistance since 1989. Its success is a direct result of the efforts of communities, city officials, engineering firms and other federal, state and local agencies. The WPCLF has assisted many communities statewide in achieving improved water quality. With continued cooperation from all parties involved, DEFA will be able to provide these services to future customers as well.

Because this guide was designed for you, the community, we ask that you contact our office with any comments or suggestions for future improvements of both this manual and the WPCLF program. In addition, to help streamline the loan award process, we ask that you fill out a customer survey after your loan has been awarded. Please direct all comments, suggestions or questions to (614) 644-2798.

LAWS AND RULES THAT AFFECT COMMUNITIES IN THE WPCLF

From this summary, you can see that there is a wide range of Federal and state requirements that apply to the Ohio Water Pollution Control Loan Fund. While these laws and rules apply to every project, how a given requirement relates to a specific project varies greatly. Many of these laws and rules you may never see or hear about since Ohio EPA staff may determine ahead of time if the requirements have been satisfied. Others may take more effort on your part to satisfy.

Ohio Revised Code Section 6111.036 Water pollution control loan fund. In response to passage of the 1987 Clean Water Act amendments and the opportunity it provided to create a state revolving fund, Ohio EPA developed its own state-level program. The enabling legislation that created the Ohio Water Pollution Control Loan Fund was enacted on May 26, 1989. This legislation, found at ORC Section 6111.036, created the WPCLF to provide financial assistance for the construction of publicly owned treatment works, implementation of nonpoint source pollution management programs, and development and implementation of estuary conservation and management programs.

The Clean Water Act (as amended by the Water Quality Act of 1987, Public Law 100-4)

The 1987 amendments to the Clean Water Act include Title VI, which created a program for U.S. EPA to give capitalization grants to states for the establishment of revolving loan funds to solve water quality problems. The Act also includes other provisions that apply to WPCLF projects, including Title II which covers specific provisions for planning, design, and funding eligibility of WPCLF projects, Title III which includes water quality guidelines and nonpoint source management programs, Title IV which covers NPDES permits, and Title V which includes general provisions such as insuring minimum prevailing wages are paid in accordance with the Davis- Bacon Act.

40 CFR Part 35 Subpart K - State Water Pollution Control Revolving Funds These Federal regulations supplement the Clean Water Act Title VI by codifying all major program requirements applicable to SRF programs.

Archeological and Historic Preservation Act (Public Law 86-523, as amended) National Historic Preservation Act (Public Law 89-665, as amended) These Acts require the WPCLF to incorporate historic preservation into the decision- making process for projects to be financed with funds directly made available by federal capitalization grants. The effects of WPCLF projects on prehistoric and historic resources must be evaluated and avoided or mitigated. Consultation with the OHPO and The Advisory Council On Historic Preservation is required for projects that may affect properties listed on, or eligible for, the National Register of Historic Places.

Clean Air Act (Public Law 84-159, as amended) Under the Clean Air Act, states are required to develop implementation plans. This law requires the Ohio EPA to assure compliance with the Ohio's State Implementation Plan for WPCLF projects. Specifically, no department, agency, or instrumentality of the Federal Government shall (1) engage in, (2) support in any way or provide financial assistance for, (3) license or permit, or (4) approve any activity that does not conform to a State Implementation Plan.

Coastal Zone Management Act (Public Law 92-583, as amended) The Coastal Zone Management Act requires the WPCLF to identify projects that may affect Lake Erie or the lakeshore area and develop those projects in a manner consistent with the Ohio Coastal Zone Management Program.

Endangered Species Act (Public Law 93-205, as amended) This law was enacted in 1973 to protect all Federally listed threatened and endangered species from the risks posed by development and economic growth. Together with the National Marine Fisheries Service in the U.S. Department of Commerce, the U.S. Department of Interior's Fish and Wildlife Service prepares and maintains a list of these plant and animal species. The WPCLF is required to assure that activities being funded are not likely to jeopardize listed or proposed species for listing, or the critical habitat on which they depend.

Farmland Protection Policy Act (Public Law 97-98) The purpose of the Farmland Protection Policy Act is to minimize the extent to which federal programs contribute to the unnecessary and irreversible conversion of farmland to non-agricultural uses, and to assure that federal programs are administered in a manner that, to the extent practicable, will be compatible with state, local, and private programs and policies to protect farmland.

Fish and Wildlife Coordination Act (Public Law 85-624, as amended) The Fish and Wildlife Coordination Act requires the WPCLF to consult with the U.S. Fish and Wildlife Service and State wildlife officials during the planning of any project that will control or modify a body of water. This concept of control or modification has been interpreted to mean that any harmful affects on fish and wildlife and their habitats from a "water resource development" project are to be mitigated.

A COMMUNITY'S GUIDE TO THE OHIO WA 12148)

The objective of these Executive Orders is to encourage avoidance of siting structures in the floodplain. If avoidance is not possible, actions must be taken to minimize potential flood losses and adverse impacts on the floodplain. The policy is applicable to all Federal agencies and actions that: (1) acquire, manage, or dispose of Federal lands and facilities; (2) undertake, finance, or assist construction; or (3) conduct activities and programs affecting land use--including planning.

Safe Drinking Water Act (Public Law 93-523, as amended) The Safe Drinking Water Act has the purpose of assuring water supply systems will meet certain minimum national standards to protect public health. The Act assures safe drinking water supplies, protects especially valuable aquifers, including aquifers that provide the sole source of drinking water for communities, and other drinking water sources. The Act restricts underground injection of waste, which includes subsurface discharges from septic tanks or cesspools. The Safe Drinking Water Act also protects ground water resources from impacts due to sources such as leaking sewage lagoons.

Protection of Wetlands (Executive Order 11990) This Executive Order directs the WPCLF to carefully consider the effects on wetlands resulting from the discharge of their responsibilities and refrain from damaging or altering wetlands when there is a feasible alternative.

Wild and Scenic Rivers Act (Public Law 90-542, as amended) The Wild and Scenic Rivers Act prohibits the WPCLF from providing assistance for the construction of any water resources projects that would adversely affect wild and scenic rivers. The National Park Service (NPS) must be notified at least 60 days in advance of the planned action. No proposal can proceed without the consent of the NPS.

Title VI of the Civil Rights Act of 1964 (Public Law 88-352) Section 13 of the Federal Water Pollution Control Act Amendments of 1972 (Public Law 92-500) Section 504 of the Rehabilitation Act of 1973 (Public Law 93-112) The Age Discrimination Act of 1975 (Public Law 94-135) These four laws prohibit discrimination in the provision of services or benefits on the basis of race, color, national origin, sex, handicap or age in programs or activities receiving Federal financial assistance. Compliance with these laws is shown by the applicant for WPCLF assistance by completing USEPA Form 4700-4, the Preaward Compliance Review Report.

Equal Employment Opportunity (Executive Order 11246, as amended) This Executive Order requires WPCLF loan recipients to include non-discrimination and "affirmative action" provisions in all contracts. The provisions commit the contractor or subcontractor to maintain a policy of nondiscrimination in the treatment of employees, to make this policy known to employees, and to recruit, hire and train employees without regard to race, color, sex, religion and national origin.

Minority- and Woman-Owned Businesses (Executive Orders 11625, 12138, and 12432) These three Executive Orders (E.O.) are designed to increase the participation of minority- and woman-owned business enterprises. Specifically, E.O. 11625 directs the Secretary of Commerce to coordinate the activities of all Federal agencies in promoting opportunities for minority-owned businesses. E.O. 12138 extends policy of E.O. 11625 to include woman-owned businesses. Finally, E.O. 12432 outlines responsibilities of Federal agencies for monitoring, maintaining data and reporting on the results of MBE/WBE utilization.

Procurement Prohibitions (Executive Order 11738, Section 306 of the Clean Air Act and Section 508 of the Clean Water Act) Executive Order 11738 was issued to coordinate enforcement of Section 306 of the Clean Air Act and Section 508 of the Clean Water Act. These sections prohibit WPCLF recipients from procuring goods or services from facilities that have been convicted of violations of either the Clean Air Act or the Clean Water Act. 40 CFR Part 15 provides, in part, for the listing of violating facilities.

Debarment and Suspension (Executive Order 12549) Under Executive Order 12549, an individual or organization debarred or excluded from participation in Federal assistance programs may not receive any assistance award under the WPCLF program. The Order applies to contracts greater than $25,000. Each WPCLF community and any prospective contractor and subcontractors must complete EPA Form 5700-49 - Debarment Certification.

Demonstration Cities and Metropolitan Development Act (Public Law 89-754, as amended) During the 1960's, as the pace of growth in the nation's urban areas quickened, a host of Federal programs were established to provide assistance in these areas for housing, roads, hospitals, water supply and wastewater treatment services. The sheer number of these programs began to complicate the planning efforts of local officials. The Demonstration Cities and Metropolitan Development Act instructed Federal agencies to consult with local officials to assure smoother coordination of their assistance programs and to assure that projects funded under Federal programs are consistent with local planning requirements. The Office of Management and Budget Circular A-95 was developed to provide a process for using State and areawide clearinghouses to review and comment on projects that would affect local development plans. All WPCLF projects must undergo the A-95, or State Clearinghouse, review.

Uniform Relocation Assistance and Real Property Acquisition Act (Public Law 91- 646, as amended) The Uniform Relocation Assistance and Real Property Acquisition Policies Act provides a process for fair and equitable treatment of persons whose property will be acquired or who will be displaced because of projects funded, in whole or in part, with federal assistance.

.Project Nomination Form WPCLF Application Package Checklist WPCLF Loan Application WPCLF Project Schedule WPCLF Dedicated Repayment Source Form WPCLF Compliance Certification Debarment Certification (EPA Form 5700-49) Preaward Compliance Review Report (USEPA Form 4700-4) WPCLF Land Availability/Acquisition Form WPCLF Project Cost Breakdown Checklist of Documents Required for OWDA Approval of WPCLF Financing General Certificate Solicitor's Opinion Letter OWDA Local Government Authority Financing Information Form WPCLF Amortization Schedule WPCLF Payment Request

The following provides samples of wording to be used in legislative actions required to authorize funding from the WPCLF. These samples are provided for your information only and must be adjusted to suit the particular circumstances of your project and the government structure for your community.

AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH ACME CONTRACTORS, 1234 MAIN STREET, COLUMBUS, OHIO 43215, FOR THE CONSTRUCTION OF SANITARY SEWERS ON MAPLE STREET

WHEREAS, the City Council has made the determination that the construction of sanitary sewers on Maple Street is necessary, and WHEREAS, advertisements for bids for said construction have been made in accordance with the provisions of the Amended Charter for the City, and WHEREAS, said bids were publicly opened and read aloud on January 1, 1995, and WHEREAS, bids proposing to construct the sanitary sewers have been received, and WHEREAS, the Council has determined to accept the bids submitted by Acme Contractors.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF EXAMPLE, COUNTY OF EXAMPLE, STATE OF OHIO:

THAT the City Manager be and hereby is authorized to enter into a contract with Acme Contractors, 1234 Main Street, Columbus, Ohio 43215, for $500,000, as the lowest and best bidder for the construction of sanitary sewers pursuant to and in keeping with the proposal submitted by Acme Contractors dated December 30, 1994 and publicly opened and read on January 1, 1995.

THAT the funds necessary for the construction of said sanitary sewers shall be taken from the Wastewater Treatment Plant Capital Improvements Fund.

AN ORDINANCE AUTHORIZING THE CITY TO ENTER INTO AN AGREEMENT BETWEEN THE CITY OF EXAMPLE, OHIO AND THE OHIO ENVIRONMENTAL PROTECTION AGENCY AND THE OHIO WATER DEVELOPMENT AUTHORITY.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF EXAMPLE, COUNTY OF EXAMPLE, STATE OF OHIO:

THAT the Mayor is authorized to enter into an agreement between the city of Example, Ohio and the Ohio Environmental Protection Agency and the Ohio Water Development Authority. A copy of the Agreement is attached hereto as "Exhibit A" and is incorporated herein.

APPENDIX D

LOAN OPTIONS SUMMARY

SUMMARY OF WPCLF LOAN OPTIONS

The WPCLF offers a variety of interest rates and loan terms depending on the type of the project and the specific needs of the community. DEFA will work closely with you to design the best combination of terms and rates to achieve our mutual goals.

The standard interest for loans with a repayment period from six to 20 years is determined every April 1 and July 1 and remains in effect for the following six months. Once the loan is awarded, the rate remains fixed for the term of the loan. The rate is determined by averaging the 20-year rate, as reported in the Bond Buyer GO Bond Index, over the four Fridays previous to April 1 and July 1 and then subtracting up to 1.75%. However, in no case will the rate go below 3.5%.

An interest rate of 3.2% is offered for loans with a repayment period of up to five years. These loans are, generally, awarded for planning, design, equipment purchases and small construction activities. However, there is no limitation on either the loan amount or scope of work. The only limitation is the community's ability to repay a loan that is amortized for only five years.

An interest rate of 2.2% is offered, regardless of the repayment period, to communities that qualify as a community of high economic need. Generally, qualification is based upon an analysis of median household income, percent of population below the poverty level and percent of population over age 65.

Under certain circumstances, communities can reduce our below-market rates even more. A community's project may qualify for one, or more, of the following discounts. The discounts will be subtracted from whichever rate the project would normally receive.

1. Municipal Compliance Maintenance Discount - The Ohio EPA wants to encourage communities to implement improvements to their wastewater treatment systems before problems occur. For projects that are necessary to allow a community to maintain compliance with NPDES permit requirements, a 0.5% discount is offered to communities that participate in the Municipal Compliance Maintenance Program (MCMP) and have had no permit violations for six months prior to loan award. For communities that are identified as active participants in the Municipal Compliance Maintenance Program prior to MCMP documentation submission deadlines, a discount of up to 1.0% can be available.

2. Municipal Water Conservation Discount - The Ohio EPA wants to encourage communities to engage in drinking water conservation practices. Therefore, a 0.1% discount is offered to communities who establish and maintain qualifying water conservation programs or who implement a one-time effort water conservation effort with measurable results.

3. Failed Non-Conventional Technology Rate Guarantee - The Ohio EPA wants to encourage the development and implementation of non-conventional technologies that reduce the costs and improve the effectiveness of treating wastewater or achieve other environmental goals. The WPCLF will include qualifying technologies at the same interest rate for which the community has already qualified. If the qualifying technology fails due to the inherent risk, the WPCLF will forgive the interest for that portion of the loan and offer a 0% loan to correct the problem.

APPENDIX E

ADDITIONAL FUNDING SOURCES

CDBG - Department of Housing and Urban Development Community Development Block Grants (614) 469-6743

HUD - Department of Housing and Urban Development Small Cities Block Grant Program (614) 466-2285

VCIF - Village Capital Improvement Fund Sharon Williamson, Ohio EPA - DEFA (614) 644-2798

RECDS - Rural Economic and Community Development Services (formerly FmHA - Farmers' Home Administration) (614) 469-5400

OWDA - Ohio Water Development Authority (614) 466-5822

Ohio Water and Sewer Rotary Commission (614) 466-2285

Economic Development Administration Robert F. Hickey (614) 469-7314

ARC - Appalachian Regional Commission

OPWC - Ohio Public Works Commission W. Laurence Bicking (614) 466-0880 pwc_is@odnvms.a1.ohio.gov

Ohio Department of Development Business Development Account (The 412 Account) Jean Carter Ryan (614) 466-5334