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CWSRF & DWSRF Green Project Reserve Guidance
The federal appropriation laws ( P.L. 111-88, P.L. 112-10, and P.L. 112-74, please see the State and Tribal Assistance Grants Link) included additional requirements affecting both the Clean Water and the Drinking Water State Revolving Fund programs for fiscal year (FY) 2012. These laws require that funds be made available to each revolving fund be used to address green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities. These laws also require that funds be used to provide additional subsidy targeted to green projects and to disadvantaged communities. We do envision that our program statutes may require revisions to implement some of these requirements. However, we do anticipate funding GPR (Green Project Reserve) projects using a subsidy in the form of principal forgiveness.
Consequently, we will be soliciting eligible GPR project applications to meet the minimum threshold. Final guidance requires that the State identify GPR projects on the draft project priority lists. In order to meet this requirement, final project plans will need to identify both categorical and non-categorical GPR projects or components and their associated costs (both construction and non-construction). For categorical GPR projects, the plans need to clearly link the GPR portion to the specific category and provide supporting documentation. For non-categorical GPR projects, the plans need to contain a business case which will serve to demonstrate substantial water and energy efficiency benefits/savings.
The following information has been provided to assist you with GPR determinations and documentation. Please be advised that for DWRF projects that may have GPR water mains, the Green Reserve Qualification Template must be completed along with a business case modeled after the sample memos. Please note that business cases are no longer required for pressure reducing valves or for replacement of existing broken/malfunctioning water meters, or upgrading existing meters with automatic meter reading systems. Additionally, replacement of broken/malfunctioning water meters with traditional water meters may be considered GPR based on a business case.
For project plans that are currently ranked on the FY 2013 Project Priority Lists (PPL) and will be carried over to the FY 2014 PPL, the above referenced GPR information will need to be submitted as a supplement to your project plan by May 1st (DWRF) and July 1st (SRF).