Miss. Admin. Code tit. 33 | Miss. Admin. Code Title 33 — Rivers and Waters

LOCAL GOVERMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD LOCAL GOVERMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD

Part 1 Drinking Water Systems Emergency Loan Fund Program Regulations

Chapter 1 Introductory Provisions

33 Miss. Admin. Code Pt. 1, R. 1.1.1 Rule 1.1.1

These regulations, adopted pursuant to Section 41-3-16, Mississippi Code of 1972, as amended, will govern the Local Governments and Rural Drinking Water Systems Emergency Loan Fund (DWSELF) Program. These regulations may be superseded by the DWSELF loan agreement, when a variance or exception is made by the Board, and when not in conflict with any state or federal laws or executive orders.

Subchapter 2: Effective Date of Regulations.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 1.2.1 These amended regulations are effective October 12, 2000 May 11, 2007

Subchapter 3: Definitions.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 1.3.1 Rule 1.3.1

The following words and terms, when used in this regulation, will have the following meanings, unless the context clearly indicates otherwise:

Act - The Local Governments And Rural Water Systems Improvements Revolving Loan Program Act, Section 41-3-16, Mississippi Code of 1972. 2. Administration Fee - Those fees charged the loan recipient to defray the reasonable costs of administering the emergency fund. 3. Allowable Costs - Those project costs that are eligible, reasonable, necessary, allocable to the project, within the established project scope budget, and budget period in conformance with the DWSELF Regulations and approved by the Department. 4. Authorized Representative - The signatory agent or office of the applicant, authorized and directed by the applicant's governing body to make application for assistance and to sign documents required to undertake and complete the project, on behalf of the applicant. The signatory agent or office must be a member of, or an employee of, the applicant's governing body and may not be under a separate contract with the applicant at any time during the execution of the project. 5. Board - Local Governments and Rural Water Systems Improvements Board. 6. Change Order - The documents executed by the loan recipient and the construction contractor, upon recommendation of the registered engineer if required by the contract documents, authorizing a change, alteration, or variance in the plans, specifications, and contract documents, including but not limited to, additions or deletions of work to be

performed pursuant to the contract or a change in costs or time for work performed pursuant to the execution of the contract. 7. Construction - Any one or more of the following: repair, erection, building, acquisition, alteration, remodeling, improvement or extension of drinking water systems. 8. Department - Mississippi State Department of Health and staff, and their designated representatives. 9. DWSELF - Drinking Water Systems Emergency Loan Fund. 10. DWSIRLF - Drinking Water Systems Improvements Revolving Loan Fund. 11. Drinking Water System Viability Analysis - A managerial, operational, financial and technical analysis of a water system to determine whether the system has the capability to reliably meet performance requirements and financial obligations on a long term basis. 12. Eligible Applicant - A county, incorporated municipality, district or other water organization that has been granted tax exempt status under either federal or state law which has authority to collect, treat, store and distribute piped water for human consumption, has the authority under State law to receive DWSELF loan assistance and has the ability to comply with this regulation and the requirements of the DWSELF loan agreement. 13. Eligible Costs - Eligible costs are those costs in which DWSELF loan participation is authorized pursuant to applicable statute. 14. Emergency - Any circumstance caused by fire, flood, explosion, storm, earthquake, epidemic, riot, insurrection or caused by any inherent defect due to defective construction, or when the immediate preservation of order or public health is necessary by reason of unforeseen event or condition, or when the immediate restoration of a condition of usefulness of any drinking water facilities appears advisable. 15. Emergency Fund - The Local Governments and Rural Drinking Water Systems Emergency Loan Fund, created pursuant to Section 41-3-16(2)(b), Mississippi Code of 1972, as amended. 16. Financial Assistance - Loans by the Board from the Local Governments and Rural Drinking Water Systems Emergency Loan Fund. 17. Improvements - Will include making necessary repairs to existing drinking water systems to meet the emergency, and may, at the Board's discretion, include new construction needed to provide a permanent correction to the problems which caused the emergency. 18. Loan Agreement - An agreement between the Board and the loan recipient through which the Board provides DWSELF funds for eligible assistance and the recipient promises to repay the principal sum and interest back to the DWSELF over a period not to exceed 5 years at an interest rate established by the Board. 19. Loan Applicant - A county, incorporated municipality, district, or other water organization that makes application for assistance from the DWSELF program. 20. Loan Recipient - A county, incorporated municipality, district, or other water organization that receives a loan from the DWSELF program. 21. May - Whenever used in the context of an action to be taken by the loan recipient the word may will be interpreted as optional but is not mandatory. 22. May not - Whenever used in the context of an action by the loan recipient such an action is prohibited by these regulations. 23. Must - Whenever used in the context of an action to be taken by the loan recipient the

word must will be interpreted as mandatory. 24. Plans, Specifications and Contract Documents - The engineering description of the project including engineering drawings, maps, technical specifications, design reports and construction contract documents in sufficient detail to allow contractors to adequately construct the work. 25. Project - The scope of work for which assistance is awarded under the DWSELF. 26. Project Completion - The date of the final construction observation, as performed by the Department, for the purpose of an allowability determination. 27. Protest - A written complaint to the loan recipient concerning the loan recipient's solicitation or award of a contract. The protest must be filed with the loan recipient by a party with a direct financial interest adversely affected by a loan recipient's procurement action. 28. Public Water System - A system for the provision to the public of piped water for human consumption if such system has at least fifteen (15) service connections or regularly serves at least twenty-five (25) individuals, including but not limited to any collection, treatment, storage and distribution facilities under control of the operator of such system and used primarily in connection with such system. 29. Rate Structure - Will have the same meaning as User Charge System. 30. Registered Engineer - The engineer, registered by the Mississippi State Board of Registration for Professional Engineers and Land Surveyors, retained or employed by the loan recipient to provide professional engineering services during the planning, design, and/or construction of the project. 31. Repayment - Principal and interest payments on DWSELF loans which must be credited directly to the DWSELF. 32. Surcharge - That charge added to each user's water bill each month to cover the cost of repaying the DWSELF loan. 33. Unilateral Change Order - Change orders executed only by the loan recipient, and identified as such, in accordance with the contract documents. 34. User Charge System - That system by which the loan recipient charges users of the system, water rates that produce adequate revenues required for operation, maintenance, replacement of major equipment, retirement of existing debt, and repayment of the DWSELF loan for the project. 35. Water Use Ordinance/Corporate Resolution - An ordinance or corporate resolution enacted by the loan recipient which must require that new distribution lines, service lines, and connections are properly designed and constructed, and must establish any prohibitions or conservation measures for water usage, and must establish any other requirements for use of the system determined appropriate by the loan recipient. 36. Will - Whenever used in the context of an action to be taken by the loan recipient the word will is to be interpreted as mandatory.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

Chapter 2 Program Requirements

33 Miss. Admin. Code Pt. 1, R. 2.1.1 Rule 2.1.1

To be eligible for financial assistance, an applicant must meet the definition of an eligible applicant as described in Section I.C.(12) of this regulation, as determined by the Department.

Subchapter 2: DWSELF Uses.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 2.2.1 The Emergency Loan Fund may be used for the following purposes, as determined by the Board:

To make emergency loans to eligible applicants in making necessary repairs to existing drinking water systems to meet the emergency; 2. To make emergency loans to eligible applicants in completing construction needed to provide a permanent correction to the problems which caused the emergency; 3. For the reasonable costs of administering the DWSELF program and/or the DWSIRLF program and conducting activities under the act; and 4. To earn interest on fund accounts.

Subchapter 3: Project Priority.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 2.3.1 Rule 2.3.1

These funds will be obligated on a first-come, first-served basis in order of those eligible applicants which complete all actions necessary to receive a loan award, for eligible projects meeting the definition of an emergency, as defined in these regulations.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 2.3.2 Rule 2.3.2

The Board will be the judge of whether a proposed project meets the definition of an emergency project and whether all actions necessary for loan award have been completed.

Subchapter 4: DWSELF Financing.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 2.4.1 Rule 2.4.1

The DWSELF has been established to provide loans to assist eligible applicants in making emergency repairs to existing drinking water systems and may, with Board approval, include new construction needed to provide a permanent correction to the problems which caused the emergency. Basic DWSELF financing requirements are as follows:

DWSELF loans may be limited at the discretion of the Board based on funds availability or as otherwise established by State law. 2. Loans will be made at the interest rate determined by the Board.
Monthly principal and interest repayments will commence as further described in Section III.F of this regulation, and all loans will be fully amortized not later than five (5) years after project completion. 4. Except for program administration expenses, funds will not be disbursed from the emergency loan fund without first entering into a legal and binding commitment with the Board. 5. The fund will be credited with all repayments of principal and interest on all loans. 6. The applicant must not be in violation of, or delinquent on, any provisions of a previously awarded DWSELF or DWSIRLF loan agreement

Subchapter 5: Responsibility.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 2.5.1 Rule 2.5.1

The applicant/loan recipient is responsible for the proper planning, design, construction, operation, maintenance, replacement, performance, and fiscal integrity of the project. The Department's approval of any document does not relieve the applicant/loan recipient or any others of any liabilities or responsibilities. Department approval of any document is for loan eligibility/allowability purposes only and does not establish or convey any such liability or responsibility.

Subchapter 6: Other Approvals.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 2.6.1 Rule 2.6.1

The applicant (or loan recipient) must obtain approval of all necessary documents from each state, local, and federal agency having jurisdiction over or funding in the project, if so required by that agency.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

Chapter 3 Project Requirements

33 Miss. Admin. Code Pt. 1, R. 3.1.1 Project Budget Period

Costs for the project must be incurred within the Project Budget Period established in the loan agreement. When justified and approved by the Board, the Project Budget Period may begin prior to loan award, but may not begin more than 30 days prior to receipt of the loan application by the Department. If project costs are incurred prior to loan offer, the prospective loan recipient agrees that he is proceeding at his own risk and relieves the Board, the Department, and the Department staff of all responsibility and liability should such costs later be determined unallowable for any reason, or should such funding not become available for any reason.
The end of the Project Budget Period will coincide with the 30 day deadline described in Section III.C.(9)(e) of this regulation.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.1.2 Rule 3.1.2

Obtaining a Loan Application.: Potential applicants may request a DWSELF loan application package by calling the Department staff. The Department staff will fax and/or mail the loan application package to the potential applicant.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.1.3 Contents of Application

All documents listed below must be complete and approvable when submitted to the Department staff:

An original and one copy of the DWSELF loan application must be submitted to the Department staff. When forms are provided by the Department staff these forms must be used, and these forms may not be altered. The DWSELF loan application may request assistance only for costs that are allowable in accordance with Appendix A of this regulation, and may include a construction contingency, as determined by the Department staff, in the project budget. The application must include in the Project Cost Breakdown any administration fee charged to the loan recipient by the Department. A complete application must conform to this regulation, including all Appendices, and must include the following: a. A complete DWSELF loan application form, which includes the amounts requested for construction/repairs, equipment, supplies, land/easements, testing contracts, contingency, contracts for planning, design, land acquisition, engineering services during construction/repairs and administration fees required by the Board. b. A certified copy of a resolution by the loan applicant's governing body which: i. declares an emergency, which meets the definition of an emergency as defined in Section I.C.(14) of this regulation, exists; ii. agrees to implement, prior to final disbursement of DWSELF funds, a per connection surcharge, over and above all existing user charges, adequate to completely cover repayment of the DWSELF loan; iii. commits the loan recipient's authorized representative to meet with the Department staff, prior to final disbursement of DWSELF funds, to discuss the results of the drinking water system viability/financial capability analysis to insure future operational/managerial capabilities and commits to implement the recommendations approved by the Department; iv. authorizes the submission of the application; and v. designates an individual or office to make application for assistance and to sign documents required to undertake and complete the project, on behalf of the applicant.

c. A clear description from the certified operator or registered engineer or other qualified personnel (i.e. well contractor, equipment representative, electrician, etc.) explaining the circumstances leading up to this emergency. d. A registered engineer's (City/County Engineer or consulting engineer) or other qualified personnel's recommended course of action and estimated costs to remedy the emergency. If such project must be designed by a registered engineer in accordance with State Law and the Rules and Regulations of the Mississippi State Board of Registration for Professional Engineers and Land Surveyors, the report must include the seal of the professional engineer who prepared the report. e. Registered engineer's plans, specifications and contract documents, if applicable, and/or contracts for repairs/equipment/supplies needed to meet the emergency. f. A copy of contracts for all eligible engineering, observation, architectural, administrative, and legal services included in the DWSELF loan application, if applicable. All procurement actions related to the DWSELF Loan project must comply with state law and Appendix B of this regulation. g. A procurement certification from the Loan Applicant and the loan applicant's legal counsel, stating that all procurement actions related to the DWSELF loan project have been, and will be, in compliance with State law and Appendix B of this regulation. h. A draft user charge system and ordinance/corporate resolution. The user charge system must establish a surcharge over and above any existing user charges to the system's customers in an amount necessary to meet the repayment schedule established in the DWSELF loan agreement. The ordinance/corporate resolution enacting this user charge system must be enacted prior to final disbursement of DWSELF loan funds and by the date established in the DWSELF loan agreement. 2. After loan award the loan recipient may request and receive Department approval to eliminate the surcharge if the loan recipient can demonstrate its user charge system is adequate to meet the repayment schedule established in the loan agreement. 3. A draft water use ordinance/corporate resolution, if applicable - The water use ordinance or corporate resolution must require that new distribution lines, service lines, and connections are properly designed and constructed, must establish any prohibitions or conservation measures for water usage, and must establish any other requirements for use of the system determined appropriate by the loan recipient. 4. A statement of the amount of all local funds necessary for the project and a Financial Certification Form from the Loan Applicant which states that all local funds necessary for the project have been secured, or will be secured within 30 days after loan offer, and a statement to this effect from the funding source(s). If all funds for the project are being requested from the DWSELF program, this certification need not be submitted. 5. A completed water system financial capability summary. 6. A Legal Certification Form from the Loan Applicant and the loan applicant's legal counsel, stating that (1) the loan applicant has authority under state laws and regulations to receive DWSELF loan assistance, to collect user charges through an approved user charge ordinance or corporate resolution, to enforce the user charge ordinance or corporate resolution and water use ordinance or corporate resolution, to repay the loan under the terms of the loan agreement, to comply with all other terms of the loan

agreement, to own, operate, maintain and replace the facilities to be constructed with DWSELF loan funds, and that (2) there are no restrictions under federal or state laws or regulations regarding indebtedness which may prevent the loan applicant from executing the DWSELF loan agreement and implementing the project. 7. A copy of the bid forms from the contract documents containing the registered engineer's cost estimates, if applicable. The costs shown on the application must match those on the bid forms. 8. If the Loan Applicant is a water organization other than a county, incorporated municipality, or district, documentation of its tax exempt status under either federal or state law. 9. Clear Site Certificates from the loan applicant and the title counsel indicating that the Loan Applicant has secured all real property and easements (including power and other utilities) necessary to build the project. 10. Completion of the intergovernmental review process as described in Appendix G of this regulation, and submittal of a completed Intergovernmental Review Certification, any intergovenmental review agency comments received, and the action required to address all comments prior to awarding contracts for construction. 11. Certification Regarding Debarment, Suspension and Violating Facilities. 12. All other forms, documents, and supporting information that may be required by the Department.

Subchapter 2: Offer of DWSELF Loan.

Rule 3.2.1

3.2.1.1 Upon determination by the Department staff that: 1. all applicable requirements of this regulation have been met, 2. all applicable documents have been approved, 3. all applicable permits have been issued or will be issued, and 4. funds are available for the amount of the DWSELF loan application, the Department will seek approval of the DWSELF loan award from the Board.

3.2.1.2 If the Board approves the DWSELF loan application, the Board Chairman, or his designee, will execute and transmit a DWSELF loan offer (includes an offer letter, loan agreement and initial repayment agreement) to the loan recipient. In addition to the estimated allowable project costs as described in Appendix A of this regulation and any administration fee, the loan offer may include a construction contingency, as determined by the Department staff, in the project budget. If determined necessary by the Department staff, this contingency may be reduced after receipt of construction bids, as described in Section III.B.(6) below.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.2.2 Upon receipt of the DWSELF loan offer, the loan recipient must completely execute

and return it to the Department staff, along with a certified copy of a resolution by the loan recipient's governing body authorizing acceptance of the loan offer, within the time frame established in the DWSELF loan offer. The loan offer becomes void if not executed and returned within the time frame specified, unless extended by the Board Chairman or his designee.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.2.3 Rule 3.2.3

Upon return of the executed DWSELF loan offer to the Department staff, any administration fee established in the loan agreement will be processed accordingly and such fee will be paid to the appropriate Department administration fund.

Rule 3.2.4

3.2.4.1 Upon return of the executed DWSELF loan offer to the Department staff, the loan recipient must then execute any remaining unexecuted approved contracts for construction/repairs/equipment/supplies and engineering planning/design and construction phase services, or if required by State law and Appendix B, must then advertise, receive bids, award, and execute any other contracts for construction/repairs/equipment included in the project, within the time frame established in the loan agreement. All procurement actions by the loan recipient (including water associations) must comply with state law and Appendix B of this regulation.

3.2.4.2 The loan recipient will be responsible for assuring that every appropriate procedure and incidental legal requirement is observed in awarding these contracts. The contracts must not vary from those approved by the Department staff.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.2.5 Rule 3.2.5

Upon execution of all contracts funded under the loan agreement, the loan recipient must then submit (a) all such executed contracts for emergency construction/repairs/equipment/supplies and engineering planning/design and construction phase services, (b) if any contracts must be bid, the completed contract award certification and a completed loan agreement amendment request (to reflect as-bid {if applicable} and other executed construction contract amounts, all other contract amounts, a construction contingency as determined by the Department staff, and the original administration fee) to the Department staff within the time-frame established in the loan agreement. Within the time frames established in the loan agreement, the loan recipient must then, at his discretion, issue any notices to proceed and submit a copy of such to the Department and begin any remaining construction/repair work or purchase any remaining equipment/supplies funded under the loan agreement.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.2.6 Rule 3.2.6

Upon receipt of the documents required under (5) above, the Department staff will review these documents, determine whether a request for an increased loan amount is justified

and eligible and that funds are available. The Department may, upon approval of the Board, if determined necessary and appropriate, transmit to the loan recipient an amended DWSELF loan offer, which includes in the project budget 1. as-bid (if applicable) and other executed construction contract amounts, 2. all other contract amounts, 3. a construction contingency as determined by the Department staff, and 4. the original administration fee.

Upon receipt of the amended DWSELF loan offer, if applicable, the loan recipient must completely execute and return it to the Department within the time-frame established in the DWSELF loan offer letter. [After execution of the amended DWSELF loan offer, the DWSELF loan amount will not be increased. Any increased project costs in excess of the amended DWSELF loan amount must be paid by the loan recipient from sources other than DWSELF funds.]

Subchapter 3: Construction/Repair Phase.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.1 Rule 3.3.1

Awarding Contracts for Emergency Construction/Repairs Equipment /Supplies, and Engineering Planning/Design and Construction Phase Services.

Upon executing and returning any amended loan agreement and initial repayment agreement to the Department staff, if applicable, or upon execution of all contracts funded under the loan agreement, and within the time frames established in the loan agreement, the loan recipient must issue any remaining notices to proceed and begin any remaining construction/repair work and purchase any remaining equipment/supplies funded under the loan agreement, and must transmit a copy of all notices to proceed to the Department staff within the time frame specified in the loan agreement.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.2 Preconstruction Conferences

If determined necessary by the loan recipient, the loan recipient may arrange and hold a preconstruction conference and, if held, must notify and allow attendance and participation by the Department staff.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.3 Observation During Construction

During all times that construction/repair work is being performed which requires the services of a registered engineer, the loan recipient must provide for full-time observation of the project by the registered engineer or his staff and must require the registered

engineer's assurance that the work is being performed in a satisfactory manner in accordance with the DWSELF loan agreement and the approved plans, specifications, and contract documents, approved change orders, and in accordance with sound engineering principles and building practices. Less than full-time observation may be allowed when properly justified and approved by the Department staff. 2. The Department staff is authorized to observe the building of any project at any time for compliance with the terms of the loan agreement and to determine if the loan recipient is assuring that plans, specifications and contract documents are being followed and is assuring that the project is being built in accordance with sound engineering principles and building practices. A representative may be stationed at the building site by the Department staff to observe the manner and progress of the building or to observe conditions relating to the equipment or materials furnished and the compliance by the contractor with approved plans, specifications, and contract documents for the project. Such observation will not subject the Department to any action for damages or other liability. Such observation will not release the contractor from any obligation to perform the work in accordance with the requirements of the contract documents, nor the registered engineer from determining compliance with the requirements of the contract documents, nor the loan recipient from insuring compliance with the terms of the loan agreement. 3. The contractor, registered engineer, and the loan recipient must furnish the Department staff with every reasonable opportunity and means for observing whether the work as performed appears to be in accordance with the requirements of the loan agreement. The Department staff is authorized to observe and require submission of daily logs, record drawings, file notes, and any other documents prepared by any party in relation to the DWSELF funded project.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.4 Observation of Materials and Equipment

The Department staff is also authorized to observe all equipment and materials furnished, including observation of the preparation or manufacture of the equipment and materials to be used.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.5 Construction/Repair Deficiencies

In the event construction/repair procedures, materials or equipment appear to the Department staff to be substandard, otherwise unsatisfactory, and/or not in conformity with approved plans and specifications, the Department staff may determine such work unallowable for DWSELF loan participation, unless the loan recipient takes such action, through the registered engineer if applicable, in the manner provided for in the construction/repair contract to correct any such deficiencies 2. The Department staff may immediately begin withholding DWSELF loan payments

should such substandard or unsatisfactory construction/repair work, materials, or equipment become apparent and may require the loan recipient to repay any previously paid amounts related to such work, within 30 days of such notification. Interest may be charged on such delinquent repayments after expiration of the 30-day period at the rate established in Section III.E.(6) of this regulation. Alternatively, the Department staff may withhold such amounts from subsequent payment requests. 3. In addition to normal testing procedures required of the loan recipient, should questions arise concerning the construction work, materials, or equipment, for DWSELF loan allowability purposes the Department staff may request the loan recipient to perform reasonable additional tests of construction materials, equipment, or processes which the Department staff determines to be necessary to answer such questions during or after the construction of the project. All tests, whether for the Department staff or the registered engineer, must conform to current American Water Works Association, American Association of State Highway and Transportation Officials, or American Society of Testing and Materials published procedures, or similar acceptable criteria. The Department staff will specify which tests are applicable, if not described in the approved plans, specifications, and contract documents, for DWSELF loan allowability purposes. Samples for testing must be furnished free of cost to the Department staff upon request at the construction site.

Rule 3.3.6

3.3.6.1 General.

In the event a determination is made by a loan recipient after a construction contract is let that changes or modifications to the original contract are necessary or would better serve the purpose of the loan recipient, such loan recipient may, in its discretion, execute such change orders pertaining to the construction that are necessary under the circumstances, as provided in the contract documents and when in accordance with state purchasing law. 2. Change orders must not change, vary, or alter the basic purpose or effect of the project unless allowed by the Department. Change orders must be technically adequate, the costs and time extensions must be necessary and reasonable, and eligible/ineligible costs must be appropriately separated.

3.3.6.2 Change Order Submittals.

After completion of the claims resolution and/or change order negotiation process between the Loan Recipient and the contracting party, a fully executed change order must be submitted to the Department staff for review and approval, in order to obtain a DWSELF loan eligibility/allowability determination. 2. If any change order is submitted to the Department that is not complete and fully executed by the Loan Recipient, the contracting party, and the registered engineer if appropriate, the Department may return such change order without review. However, unilateral

change orders executed by the Loan Recipient, and the registered engineer if appropriate, and identified as such, that are issued in accordance with the contract documents may be submitted to the Department for review and approval, in order to obtain a DWSELF loan eligibility/allowability determination. 3. The Loan Recipient may submit a complete and fully executed change order which has been executed conditional upon a DWSELF loan eligibility/allowability determination by the Department. 4. All change orders must be submitted to the Department for review and approval in a timely manner. 5. If possible, approval of a change order should be secured from the Department before the work is started, particularly for change orders requesting time extensions as per Section III.C.(6)(e) below. Approval may also be secured after the work is started; however, the loan recipient must bear the cost if the work is determined to be ineligible or unallowable. The Department may withhold payments to the loan recipient if change orders are not submitted in a timely manner. 6. When the eligible cost of a project will be significantly reduced by a change order or change orders, the Department may issue an amendment to the loan agreement decreasing the loan amount, and the loan recipient must execute such amendment within the time frame established by the Department.

3.3.6.3 Technical Review.

In order to allow the Department to perform a technical review, requests for change order approvals must contain:

A completed change order form. 2. A clear and complete description of the change. 3. A justification of the need for the change. 4. Revised plans, specifications, and contract documents, as needed. 5. Engineering computations and sketches, as needed. 6. Clear site certificates for any new real property or easements that may be required. 7. Any other permits or approvals that may be required.

3.3.6.4 Eligibility Review.

In order to allow the Department to perform an eligibility review, requests for change order approvals must contain:

a separation of all items into eligible and ineligible categories 2. for change orders which alter an existing unit price or which add new related items of work costing more than $10,000, exclusive of freight and shipping charges, the contractor's cost and/or pricing data and the engineer's analysis of the contractor's data. 3. Change orders which increase or decrease the quantities of items in the contract with no change in the unit price or which add new related items of work costing $10,000 or less, exclusive of freight and shipping charges, need not include the contractor's cost and/or

pricing data or the engineer's analysis of the contractor's data.

3.3.6.5 Time Extensions.

Change orders which include time extensions must be submitted to the Department no later than ten (10) days after the current contract completion date, as specified in Section III.C.(9)(d) of this regulation. Justification for contract time extensions included in a change order must be prepared, but need not be submitted to the Department unless the total time extensions for the contract exceed 25% of the original contract time, in which case justification for all time extensions must be submitted to the Department for review and approval. 2. Construction and construction related work which occurs after the date representing a 25% time extension to the original contract time are allowable only to the extent approved by the Department pursuant to review of the justification for all time extension change orders. Construction and construction related work which occurs after the date representing a 25% time extension to the original contract time, and for which a time extension change order cannot be adequately justified by the loan recipient and approved by the Department, are not allowable unless the Department determines that the loan recipient is implementing all legal remedies provided in the contract documents for failure to complete construction when required.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.7 Contract Claims

3.3.7.1 The Department is not a party to any contract between the DWSELF Loan Recipient and the construction contractor(s), the registered engineer(s), The attorney(s), the equipment supplier(s), the subcontractor(s) or any other parties.

3.3.7.2 Upon execution of any contract between the Loan Recipient and any other party in regard to a DWSELF funded project, the Department does not assume any authorities, duties, responsibilities, or liabilities under such a contract.

3.3.7.3 The Department does not have any authority, duty, responsibility, or liability in contract claims identification, negotiation, resolution, or any other actions regarding contract claims under the contract(s) between the Loan Recipient and any other party.

3.3.7.4 No actions taken by the Department, either directly or indirectly, in regard to the DWSELF loan funded project constitute or establish any determinations, authority, duty, responsibility, or liability under the contract(s) between the Loan Recipient and any other party.

3.3.7.5 The Loan Recipient and the contracting party must resolve all claims and contract disputes by negotiation, arbitration, litigation, or other means as provided in the contract documents and State law, prior to submission of any change order to the Department staff for review and approval, in order to obtain a DWSELF loan eligibility/allowability determination.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.8 Contractor's Bankruptcy or Default

In the event of a contractor's bankruptcy or default, any proposed agreements with the bonding company (other than the bonding company serving as general contractor or fully bonding another contractor acting as their agent) must be submitted for DWSELF loan allowability determination by the Department staff prior to execution. If the loan recipient determines that re-award of the construction/repair contract, or a portion thereof, is necessary due to contractor bankruptcy or default, such proposed re-award contracts must be submitted for DWSELF loan allowability determination by the Department staff prior to execution. The loan recipient will be responsible for assuring that every appropriate procedure and incidental legal requirement is observed in advertising for bids or otherwise re-awarding a construction contract, if this course of action is taken.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.9 Construction Phase Submittals, Approvals, and Actions

The following submittals, approvals, and actions will be required during the construction phase of the project. The Department staff may establish other time frames within the loan agreement when properly justified.

3.3.9.1 Within 30 days after the original loan offer all local funds necessary for the project must be secured and proof of such must be submitted, to the Department.

3.3.9.2 Within 60 days after the original loan offer (1) the loan recipient must execute and submit to the Department a copy of any remaining unexecuted contracts for construction/repair/equipment/supplies and engineering planning/design and construction phase services, or (2) if required by State law, must advertise, receive bids, award, execute and submit any other contracts for construction/repairs/equipment included in the project, and must issue any remaining notices to proceed, begin remaining construction/repair work, purchase any remaining equipment/supplies funded under the loan agreement and transmit a copy of all notices to proceed to the Department staff, and (3) if any contracts must be bid, a completed loan agreement amendment request, as required by Section III.B.(5) of this regulation must be submitted.

3.3.9.3 By the date established in the loan agreement, the loan recipient must (1) meet with the Department to discuss the findings of the financial capability analysis and agree to a schedule for implementing the findings of this analysis and (2) enact the approved user charge ordinance or corporate resolution and submit proof of such enactment.

3.3.9.4 1. Within 5 days after construction completion of each construction/repair contract, the loan recipient must submit a determination of construction/repair completion and must request

a final construction observation by the Department staff. 2. Within 10 days after the current contract completion date, all change orders which include time extensions, and/or documentation showing the loan recipient is implementing all legal remedies provided in the contract documents for failure to complete construction when required, must be submitted to the Department for approval, otherwise construction and construction related work which occurs after the current contract completion date will be unallowable. 3. The final construction/repair observation may be delayed by no more than 30 days after the current construction completion date, unless further delayed by the Department staff pursuant to review of the loan recipient's request and justification for such delay. Should the Department staff decide that the determination of construction/repair completion and request for final construction observation are being unreasonably delayed, a final construction observation may be immediately performed by the Department staff.

3.3.9.5 Within 30 days after the final construction observation performed by the Department staff, the loan recipient must submit: final payment requests; approvable summary change orders, if applicable, for all construction/repair contracts; a complete set of record drawings for any new construction work requiring design by a registered engineer and, if applicable, a certification from a registered engineer that the project has been constructed substantially in accordance with the approved plans, specifications, and contract documents; loan recipient's resolution of acceptance of each construction/repair contract; final construction phase services contract amendments, if any; and all other administrative forms and documents required by the loan agreement and the Department staff. Payment requests submitted after this date are not allowable, regardless of when the costs were incurred.

3.3.9.6 Any other submittals or actions required by the loan agreement must be performed when so required and are subject to review and approval by the Department staff.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.3.9.7 Retainage

The loan recipient must retain payments to any party under contract with the loan recipient, in accordance with state law, or if not specified by state law, in the amount of 10% until 50% completion and 5% until final payment. Any such retained amounts may not be requested by or paid to the loan recipient from DWSELF loan funds, until so described above.

Subchapter 4: Post Construction Phase.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.4.1 Rule 3.4.1

Following final payment of DWSELF loan funds to the loan recipient, or upon expiration of any deadlines established by the loan agreement or the Department staff, the Department staff or other designated parties may perform an audit of the DWSELF loan project for the purpose of determining compliance with the DWSELF loan agreement and to determine final allowable costs, payments made to date, and any additional payments due the loan recipient

or repayment due the Department.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.4.2 Rule 3.4.2

Upon completion of the DWSELF audit, (or if an audit is not performed, following final payment of DWSELF loan funds to the loan recipient, or upon expiration of any deadlines established by the loan agreement or the Department staff) the Department staff will transmit to the loan recipient a copy of the audit, if performed, and a final determination of allowable costs and payments due the loan recipient or repayments due the State. The final determination will also establish a 30-day appeal deadline, as required by (3) below, and will require repayment of any overpayment with an interest penalty to begin accruing on the appeal deadline. The interest penalty will be as established in Section III.E.(6) of this regulation.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.4.3 Rule 3.4.3

Within 30 days after the date of the above final determination of allowable costs, the loan recipient may submit a written appeal of the final determination, including a written justification of the reason for the appeal, and supporting documentation for any disputed costs of the final determination; otherwise the final determination of allowable costs will become the final allowable costs for purposes of DWSELF loan payments and the DWSELF loan repayment agreement.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.4.4 Rule 3.4.4

Should an appeal be submitted in accordance with (3) above, the disputes procedures established in Appendix D of this regulation will be followed in order to resolve the dispute and establish the final allowable costs.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.4.5 Rule 3.4.5

Upon expiration of the final determination appeal period, or upon resolution of a dispute of the final determination, the Department staff will transmit to the loan recipient a final DWSELF loan repayment agreement between the loan recipient, the Department, and if applicable as established under State law, the State Tax Commission. The loan recipient must execute and submit to the Department the final loan agreement within the deadline established by the Department.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.4.6 Rule 3.4.6

Upon receipt of an executed final repayment agreement from the loan recipient, repayment of the DWSELF loan will commence, or if applicable as established under State law, the Department staff will transmit the repayment agreement to the State Tax Commission for execution and return to the Department staff.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.4.7 Rule 3.4.7

Upon receipt of the executed final repayment agreement from the State Tax Commission, if applicable as established under State law, the Department staff will transmit a copy to the loan recipient, and repayment of the DWSELF loan will commence under the terms of the repayment agreement.

Subchapter 5: Payments to DWSELF Loan Recipients.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.5.1 Payments from the DWSELF may be made to DWSELF loan recipients under the following conditions:

3.5.1.1 Payments may be requested by and may be made only to loan recipients, in accordance with the DWSELF loan agreement and the loan recipient's contracts for eligible and allowable services and construction/repair for work performed within the project scope and budget period.

3.5.1.2 Excluding the payment requests for the administration fee, payments may be requested no more often than on a monthly basis, except as required by state law. Payment requests can not include costs incurred during two different state fiscal years, therefore two payment requests may be submitted in July: one for costs incurred through June 30th and a second for costs incurred after June 30th.

3.5.1.3 The loan recipient must deduct from all DWSELF payment requests the amount of funds provided or to be provided from all other state and federal agency funding sources for allowable DWSELF project costs.

3.5.1.4 Payment requests must be submitted by the loan recipient to the Department staff and must include the following:

DWSELF payment request form; 2. Invoices for all allowable costs for which payment is requested, except that invoices need not be submitted for any administration fee included in the loan agreement; and 3. Any other documents required by the loan agreement;

3.5.1.5 The timing of DWSELF payments will be as follows, provided the loan recipient is in compliance with the requirements of this regulation and all provisions of the DWSELF loan agreement.

Payment for the administration fee must be the first payment request submitted and will be paid to the appropriate Department administration fund. 2. Payments for design and construction phase services may be requested and paid based upon incurred allowable costs. Such requested payment amounts are subject to verification by the Department staff. No more than 85% of the total planning/design and construction phase services contract amounts will be paid until submission of: the

determination of construction completion by the loan recipient; performance of the final construction observation by Department staff; submission of the final pay request; submission of approvable summary change orders on all construction contracts; submission of record drawings on all construction contracts, if applicable; submission of the certification from a registered engineer that the project has been constructed substantially in accordance with the approved plans, specifications, and contract documents; submission of loan recipient's resolution of acceptance of each construction/repair contract; submission final construction phase services contract amendments, if any; and compliance with all other applicable provisions of the DWSELF loan agreement. Upon completion of these actions, the remainder of the planning/design and construction phase services contract amounts may be requested and paid. 3. Payments for allowable construction/repair work may be requested and paid based upon in-place work or delivered materials and equipment as specified in the construction/repair contract, and as supported by invoices and verified as accurate by the registered engineer, if applicable, and the loan recipient, less any retainage. Such requested payment amounts are subject to verification by the Department staff. 4. Payments for eligible land may be requested and paid immediately after loan agreement execution, provided the Department has approved the purchase price prior to loan award and proof of the purchase price has been submitted with the payment request. Within 30 days after purchase of the loan eligible real property, clear title certification forms from both the loan recipient and the title counsel must be submitted to the Department.

3.5.1.6 Any payments made to the loan recipient which are at any time determined by Department staff to be for costs not in accordance with the DWSELF loan agreement, for ineligible or unallowable costs, or for costs related to waste, fraud, abuse or illegal acts under state or federal law, must be repaid to the DWSELF fund within 30 days of such notification by the Department staff. Interest may be charged on such delinquent repayments after expiration of the 30-day period at a rate of ten (10) percent per annum, compounded monthly. Alternatively, the Department staff may withhold such amounts from subsequent payment requests.

Subchapter 6: DWSELF Loan Repayment Requirements.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 1, R. 3.6.1 All DWSELF loan repayments are subject to the following requirements:

3.6.1.1 Interest on amounts paid to the loan recipient will commence on the original construction contract completion date.

3.6.1.2 The amount of interest accrued between the original construction contract completion date and the initiation of the repayment process will be added to the final allowable project costs to determine the principal amount to be repaid by the loan recipient.

3.6.1.3 The repayment period will be from the time of transmittal of the final loan repayment

agreement to the loan recipient to the date five (5) years after project completion, or sooner if so requested by the loan recipient.

3.6.1.4 Repayments are to be made by counties on a semi-annual basis through homestead exemption annual tax loss reimbursement withholdings, by municipalities on a monthly basis through state sales tax withholdings if adequate to provide such repayments, and by all other loan recipients through submission of monthly payments in accordance with state law, and must commence no sooner than 90 days after and no later than one year after final construction observation by the Department staff.

3.6.1.5 The repayment interest rate and the frequency of interest compounding will be established in the DWSELF loan agreement and repayment agreement.

This Page Intentionally Left Blank

IV. APPENDICES

APPENDIX A

Determination of Eligible and Allowable Costs

CONTENTS Page A. General 26

B. Construction/Repairs 27 1. Allowable 27 2. Unallowable 28

C. Equipment, Materials and Supplies 28 1. Allowable 28 2. Unallowable 29

D. Change Orders 30

E. Professional Services 32 1. Allowable 32 2. Unallowable 34

F. Claims 34 1. Allowable 34 2. Unallowable 34

G. Mitigation 35 1. Allowable 35 2. Unallowable 35

H. Real Property 36 1. Allowable 36 2. Unallowable 37

I. Miscellaneous Costs 37 1. Allowable 37 2. Unallowable 38

J. Project Income From Bid Bond Forfeitures, Liquidated Damages, and Interest on Deposits of DWSELF Loan Payments 39

A. General

The terms "eligible" and "allowable" are often used interchangeably. Although technically a difference exists between these terms as defined below, their synonymous use will not influence the outcome of a cost determination.

Eligible costs are those costs in which DWSELF loan participation is authorized pursuant to applicable statute. Allowable costs are those project costs that are eligible; are only for projects or portions thereof that meet the definition of an emergency as established in Section I.C.(14) of this regulation; are reasonable, necessary, allocable to the project, within the established project scope and budget, in conformance with this DWSELF regulation and are approved as allowable by the Department.

An example best illustrates the difference between the two terms. Emergency improvements to drinking water systems, including construction of new drinking water systems or repair of existing drinking water systems, are eligible. Building of roads, fire fighting vehicles, wastewater treatment projects, etc. are not eligible.

Within a generic eligible category of projects, costs may be allowable or unallowable for loan participation. For example, the cost of building a distribution line is eligible, but such costs incurred after the thirty-day deadline established in Section III.C.(9)(e) of this regulation are unallowable.

In addition to and/or the absence of a specific cost item described in the DWSELF regulations, to be allowable under the DWSELF loan program, costs must meet the following general criteria:

(1) Be necessary and reasonable for the proper and efficient administration and construction of the project, be allocable to and within the defined scope of the project, and not be a general expense required to carry out the overall responsibilities of the loan recipient.

(2) Be authorized or not prohibited under state or local laws or regulations.

(3) Conform to any limitations or exclusions set forth in state laws or other governing limitations as to types or amounts of cost items.

(4) Be consistent with policies, regulations, and procedures that apply uniformly to both state assisted and other activities of the loan recipient.

(5) Be accorded consistent treatment through the application of generally accepted accounting principles appropriate to the circumstances.

(6) Not be allocable to, or included as, a cost of any other Federally or State financed program in either the current, prior, or future period.

(7) Be approved as allowable by the Department.

(8) Be within the scope of the project and per the loan agreement.

(9) Eligible costs will be determined without regard to any previous DWSELF or DWSIRLF loan funding provided for facilities to be replaced, upgraded, or rehabilitated, except as described in Section II.D.(6) of this regulation.

(10) Are necessary for the immediate preservation of public health or the immediate restoration of a condition of usefulness of a public water system, or as otherwise allowed in Section II.B. of this regulation.

B. Construction/Repairs

(1) Allowable costs include:

(a) The costs of subagreements for construction/repair work on drinking water systems improvements. These subagreements are the prime contracts (including any subcontracts) for such construction/repair work and any necessary contracts for purchase of equipment, materials and supplies by the loan recipient. Should any costs for such contracts be incurred prior to loan offer, said costs will be allowable provided that the loan recipient has requested and obtained Department approval of said costs, and the loan agreement budget period includes the time period these costs are incurred.

(b) Drinking water distribution lines on drinking water distribution projects which provide drinking water to previously unserved areas, service lines between the public water main and the water meter are also allowable.

(c) The costs of drinking water distribution system rehabilitation (including rehabilitation of eligible service lines) necessary to eliminate water loss or to preserve/restore the safety or integrity of the system, as determined in a facilities plan.

(d) The cost of water system capacity equal to all water distribution system leaks that will remain in the system, as determined in a facilities plan.

(e) Drinking water systems which serve industrial or commercial users when such works are owned by counties, incorporated municipalities, districts, or other water organizations that have been granted tax exempt status under either federal or state law.

(f) In the design, construction and renovation of drinking water systems, buildings that house or protect water production, treatment or distribution

facilities. Administration buildings are unallowable.

(2) Unallowable costs include:

(a) Construction/repair and construction/repair related costs which are incurred after the Department approved eligible contract completion date (including approved time extension change orders), unless approved by the Department pursuant to Section III.C.(6)(e) of this regulation.

(b) Drinking water systems which serve federal users exclusively, or almost exclusively.

(c) The use of DWSELF funds to finance the expansion of any public water system in anticipation of future population growth.

(d) Bonus payments that are part of the construction contract for completion of building before a contractual completion date, unless required by state law.

C. Equipment, Materials and Supplies

(1) Allowable costs include:

(a) The cost of a reasonable inventory of chemicals and supplies necessary to initiate plant operations and laboratory items necessary to conduct tests required for plant operation.

(b) The costs of necessary and reasonable safety equipment, provided the equipment meets applicable federal, state, local or industry safety requirements.

(c) Flow metering devices used for billing or treatment purposes. The costs of constructing or installing water flow metering devices used for monitoring and/or billing intermunicipal or other flows are eligible costs. Meters constructed or installed for the primary purpose of serving and billing individual residential, commercial or industrial users and back flow preventers are also eligible.

(d) Computers, display monitors, and computer software which are designed into the control system for the daily operation of the water system.

Computers are also allowable if they are to be used for the operational control and analysis of the water system.

The cost of computer software specifically designed for the operation and

maintenance (including the cost of developing unique operating programs for the specific loan funded project) of the treatment works is also allowable for loan participation.

(e) The cost of specialized mobile equipment for the operation of the water system, or for the maintenance of equipment. These items include, but are not limited to:

(i) Portable stand-by generators.

(ii) Portable emergency pumps to provide "pump-around" capability in the event of pump station failure or pipeline breaks.

(2) Unallowable costs include:

(a) The cost of vehicles for the transportation of the loan recipient's employees, including buses, trucks, cars, motorcycles, ATVs, golf carts, bicycles, etc.

(b) Items of routine "programmed" maintenance such as filters, couplings, hoses, belts, etc.

(d) The cost of shop equipment.

(e) The costs of distribution system maintenance equipment.

(f) (Deleted, effective 10/12/2000)

(g) Replacement parts.

(h) The cost of furnishings, office equipment, and maintenance equipment, including chairs, desks, file cabinets, typewriters, coffee tables, telephones, office supplies, calculators, copiers, book cases, shelves and lamps, etc.

(i) Ordinary site and building maintenance equipment such as lawn mowers, rakes, shovels, brooms, picks, hedge trimmers, and other such equipment.

(j) Hand tools such as screwdrivers, pliers, socket wrenches, electric drills or saws, etc.

(k) Computers for non-operational purposes, such as for the scheduling of

equipment maintenance and replacement and for accounting and billing services.

D. Change Orders

(1) Change orders are allowable provided the costs are:

(a) Necessary and reasonable.

(b) Within the scope of the project.

(d) Not caused by the loan recipient's vicarious liability for the improper actions of others.

(e) In conformance with the DWSELF regulations.

(2) Provided the above requirements are met, the following are examples of allowable change orders.

(a) Construction costs resulting from defects in the plans, design drawings and specifications, or other contract documents only to the extent that the costs would have been incurred if the contract documents on which the bids were based had been free of the defects, and excluding the costs of any rework, delay, acceleration or disruption caused by such defects.

Additional costs to correct defects (i.e., errors and omissions in the contract documents) and other costs caused by the impact of such defects on other portions of the project are not allowable. For example, if the construction drawings had omitted piping from a well to a water tank, and the engineer or contractor detected this before building was undertaken, the cost of a change order to include the piping would be an allowable cost, because:

(i) the piping should have been included in the original bid,

(ii) no additional construction or rework was required (beyond what would have been required if the work had originally been included), and

(iii) there was no cost impact on other portions of the project (since construction work had not begun).

If this omission had been realized after substantial construction work had been completed, and therefore required rework, delay, or additional work

beyond that which would have been required by defect free drawings, the cost of the piping would still have been allowable, but the additional cost of rework or delay would have been unallowable.

The additional cost is measured as the difference between the cost which would have been included in the bid based on defect free drawings and the actual cost of the change order. For example, if a concrete tank had been constructed and was later found to be at an incorrect elevation due to an error in the design drawings and if it was necessary to demolish the tank and reconstruct it at the correct elevation, the entire change order would be unallowable, except for differences in excavation costs. If additional excavation was required to construct the tank at the correct elevation (i.e., the incorrect elevation was too high), the cost of the additional excavation would be allowable. However, if too much excavation had been undertaken, and fill was required to enable the tank to be constructed at the correct elevation (i.e., the incorrect elevation was too low), both the entire change order and the cost of the unnecessary excavation and additional fill would be unallowable. In these cases, the loan recipient must determine whether to seek remedial action or compensation from the responsible parties, however, such action or decision not to take such action will have no effect on loan allowability.

Regardless of the allowability of construction costs to correct errors and omissions, in no case are additional engineering, legal, observation, or other costs allowable, except for the cost of observing allowable construction work, to the extent that such observation costs would have been incurred to observe the same construction if such construction had originally been included in defect free drawings.

(b) Equitable adjustments for differing site conditions.

E. Professional Services

The term professional services refers to engineering, legal, administrative, and similar services. Should any costs for professional services be incurred prior to loan offer, these costs will be allowable provided that the loan recipient has requested and obtained Department approval of such costs, and the loan agreement budget period includes the time period that these costs are incurred.

(1) Allowable costs include:

(a) Pre-award costs. These costs include all engineering and other costs that are incurred in applying for the loan, including, but not necessarily limited to:

(i) Preparing the facilities plan, if required by the Department.

(ii) Public notification and public hearings.

(iii) Preparing the plans, specifications, and contract documents.

(iv) Value engineering.

(v) Preparing the draft user charge ordinance/corporate resolution and draft user charge system.

(vi) Preparing interlocal agreements necessary for the project.

(vii) Surveys and all other work needed to obtain clearance or permits from all intergovernmental review agencies.

(viii) Preparing the loan application, preparing applications for permits required by federal, state or local regulations or procedures.

(ix) Compliance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act, if required.

(b) The costs of services incurred during the advertisement, award and construction of a project to insure compliance with state purchasing laws and to insure that it is built in conformance with the design plans and specifications. These services are primarily engineering and construction management services provided during the advertisement, award and building of the project, including observation services, materials testing (e.g., concrete strength, soil compaction, etc.) required by the specifications, inspecting and expediting the delivery of equipment and material purchased directly by the loan recipient, reviewing shop drawings and record drawings, preparing change orders, payment processing, etc.

(c) The costs of legal, engineering, and other services incurred by the loan recipient in deciding procurement protests and defending their decisions in protest appeals under Appendix H are allowable regardless of the outcome of the protest, provided there was not an attempt by the loan recipient to violate or circumvent state purchase laws.

(d) The cost of development of an operation and maintenance manual.

(e) Start-up services for onsite training of operating personnel in operation and control of specific treatment processes, laboratory procedures, and maintenance and records management, provided these costs are incurred

prior to the end of the 30 day period established in Section III.C.(9)(e) of this regulation.

(f) Professional liability insurance premiums for a provider of professional services only for insurance which the provider maintains in connection with the general conduct of its business. The types and extent of coverage must be in accordance with sound business practice, and the rates and premiums must be reasonable under the circumstances, but only as part of the contractor's indirect cost agreement.

(g) Administrative Services associated with the construction/repair project and administering the DWSELF loan.

(h) The cost of services, other than engineering services during construction/ repairs, such as railway or highway flagmen or utility or highway inspectors, required during the building of the project, provided that:

(i) The agency responsible for the affected railway, highway, or utility requires such services for all parties conducting similar types of work, regardless of the source of construction funding for the project, or the services are required by law.

(ii) The project work requiring such services is allowable and is included in the scope of the approved project.

(iii) The cost of such services has not been included in the construction contractor's bid price.

(iv) The cost of such services is incurred directly by the loan recipient.

(v) The cost is reasonable.

(2) Unallowable costs include:

(a) The cost of ineligible real property.

(b) Engineering, observation, or other services necessary to correct defects in a facilities plan, design plans and specifications, or other contract documents, except as provided in Appendix A, Section D.(2)(a) above.

(d) The cost of local travel (i.e., commuting expenses) between living quarters

and the construction site for persons working at the site.

(e) The cost of insurance (e.g., for a specific project), beyond that normally carried by the contractor.

F. Claims

(1) Allowable costs, provided the costs are properly documented, incurred and requested prior to the end of the 30 day period established by Section III.C.(9)(e) of this regulation, include:

(a) Change orders to the construction/repair contract as a result of settlements, arbitration awards, or court judgements, to the extent that they would have been allowable had there not been a claim.

(b) The costs of assessing the merits of, negotiating, or defending against a claim against the loan recipient are allowable, regardless of the outcome, provided that the matter under dispute is not the result of fraudulent or illegal actions or mismanagement on the part of the loan recipient.

(c) Alterations in engineering, legal, etc. contracts as a result of settlements, arbitration awards, or court judgements are allowable to the same extent that they would have been allowable had there not been a claim.

(2) Unallowable costs include:

(a) Claims arising from work outside the scope of the loan.

(b) Claims resulting from fraudulent or illegal activities.

(d) Claims resulting from the loan recipient's vicarious liability for the improper action of others.

(e) The cost of settlements, arbitration awards or court judgements over the allowable costs as established in this regulation.

G. Mitigation

(1) Allowable costs include:

(a) Costs necessary to mitigate only direct, adverse, physical impacts resulting from construction/repair of the water system.

(b) The cost of reasonable site screening necessary to comply with facilities plans and necessary to screen adjacent properties.

(c) The cost of groundwater monitoring facilities necessary to determine the possibility of groundwater deterioration, depletion or modification resulting from construction/repair of the water system. The extent of the allowable costs for groundwater monitoring facilities is decided on a case- by-case basis and depends on the size and complexity of the project and the present and potential future use of the groundwater.

(2) Unallowable costs include:

(a) The costs of solutions to aesthetic problems, including design details which require expensive building techniques and architectural features and hardware, that are unreasonable or substantially higher in cost than approvable alternatives and that neither enhance the function or appearance of the treatment works nor reflect regional architectural tradition.

(b) The cost of land acquired for the mitigation of adverse environmental effects identified pursuant to an environmental review.

H. Real Property

(1) Allowable costs include:

(a) The cost of land acquired in fee simple title or by easement, at fair market value, which is integral to water system projects, for only;

(i) The cost of land acquired for the construction of a treatment facility;

(ii) The cost of land acquired for a consolidation project;

(iii) The cost of land acquired to protect the source water of the system from contamination; and

(iv) The cost of easements and/or rights-of-way for distribution lines.

(b) The cost associated with the preparation of the treatment works site before, during and, to the extent agreed on in the loan agreement, after building. These costs include:

(i) The cost of demolition of existing structures on the treatment works site (including rights-of-way) if building cannot be

undertaken without such demolition. Demolition of existing structures on the treatment works site (including rights-of-way), when not required for building the project, will be considered to be an allowable cost only if the existing structures constitute a real and present hazard to safety, public health, or water quality, and when the hazard can best be abated by the removal of the existing structures.

(ii) The cost of removal, relocation or replacement of utilities, provided the loan recipient is legally obligated to pay for such as a result of the DWSELF project under state or local law.

(iii) The cost of restoring streets and rights-of-way to their original condition. The need for such restoration must result directly from the construction/repair of the DWSELF project and is generally limited to repaving the width of trench.

(2) Unallowable costs include:

(a) Any amount paid by the loan recipient for eligible land in excess of just compensation, based on the appraised value, the loan recipient's record of negotiation or any condemnation proceeding.

An amount higher than the determination of just compensation may be found allowable as a result of an administrative settlement if the loan recipient provides sufficient written documentation to the Department prior to the actual acquisition. Such an administrative settlement may be appropriate where negotiated purchase is unsuccessful and where a condemnation action may entail a long delay or excessive cost. Administrative settlements may be used when they are reasonable, prudent and in the public interest. Documentation may include evidence of purchase negotiations, real property sales data, estimated court settlement and legal costs based on previous condemnation proceedings.

(b) Removal, relocation or replacement of utilities located on land by privilege, such as a franchise, unless the loan recipient is required to pay such costs under state or local law.

(d) The demolition of an existing structure for the convenience of the owner

as a means of increasing property value or property use is unallowable.

I. Miscellaneous Costs

(1) Allowable costs include:

(a) The costs the loan recipient incurs for equipment rental and material cost necessary for the construction/repair project.

(b) Unless otherwise specified in this regulation, the costs of meeting specific legal requirements directly applicable to the project.

(c) Reasonable royalties associated with the procurement of the right to use, or the rights in, a patented product, apparatus, or process are allowable costs, provided that they are:

(i) necessary, and

(ii) based on a published fee schedule or on reasonable fees charged to other users under similar conditions.

(d) Costs of loan recipient employees attending training workshops/seminars that are necessary to provide instruction in operational, administrative, fiscal or contracting procedures required to complete the construction of the water system. To be allowable, attendance at such training workshops or seminars may only occur after loan offer and before the end of the loan agreement budget period.

(e) Any administration fee charged to the loan recipient by the Department, as established in the Intended Use Plan under which the project is funded.

(f) Cost of a reasonable project sign.

(2) Unallowable costs include:

(a) The salaries and benefits for the loan recipients employees.

(b) Ordinary operating expenses of the loan recipient including salaries and expenses of elected and appointed officials and preparation of routine financial reports and studies.

(c) Administrative, engineering and legal activities associated with the creation of special departments, agencies, commissions, regions, districts, associations, or other entities.

(d) Approval, preparation, issuance and sale of bonds or other forms of indebtedness required to finance any portion of the project and the interest on them.

(e) Personal injury compensation or damages arising out of the project.

(f) Fines and penalties due to violations of or failure to comply with federal, state or local laws, regulations or procedures, and related legal expenses.

(g) Costs outside the scope or budget period of the approved project.

(h) Costs for which payment has been, or will be, received from another state or federal source.

(i) Operation and maintenance costs of the water system, which includes but is not limited to labor, utilities, chemicals, materials and supplies, monitoring and testing, equipment replacement, etc.

(j) Periodic payment of royalties for the right to operate under a patent are considered operating costs and are unallowable for loan participation.

(k) Costs for travel, by the loan recipient, unless included under an indirect cost agreement, and except as allowed under I.(1)(d) above.

(l) Administration Building.

J. Project Income From Bid Bond Forfeitures, Liquidated Damages, and Interest on Deposits of DWSELF Loan Payments:

(1) Bid bond forfeitures will have no effect on the determination of allowable and unallowable costs. The loan recipient must make the determination of whether or not a bid bond will be forfeited.

(2) The amount of liquidated damages collected will have no effect on the determination of allowable and unallowable costs, except as described by Section III.E.(5)(e) of this regulation..

(3) Interest income on DWSELF payments to loan recipients will have no effect on the determination of allowable and unallowable costs.

APPENDIX B

Procurement Requirements for DWSELF Loan Recipients

In the procurement of all repairs, construction, equipment, materials, supplies, professional services and non-professional services and all other costs related to the DWSELF project, all loan recipients (including water associations) must comply with State Purchasing Laws as they apply to local governments.

The procurement and conduct of all professional engineering and land surveying services must also be in accordance with the Code of Conduct and other guidance and interpretations established by the Mississippi State Board of Registration for Professional Engineers and Land Surveyors.

The procurement of all construction contracts must also be in accordance with the rules and regulations of the State Board of Contractors and other guidance and interpretations established by the Mississippi State Board of Contractors.

All loan recipients (including water associations) must submit a procurement certification, as required by the Department staff, indicating that all of the above referenced requirements have been met. Should it be determined that any of the above procurement requirements are violated, the Department may determine that the related costs are unallowable and may require repayment of all DWSELF Loan funds paid for such costs, in accordance with Section III.E.(6) of this regulation.

This Page Intentionally Left Blank

APPENDIX C

Debarment, Suspension and Violating Facilities

A. Debarment and Suspension

Loan recipients are prohibited from entering into contractual agreements with individuals, businesses, organizations, or any other entities that have been debarred or suspended by the U. S. Environmental Protection Agency, any other federal agency, state agency or by the Department. Entities debarred or suspended by the federal agencies are identified in the General Services Administration (GSA) publication entitled "List of Parties Excluded from Federal Procurement or Nonprocurement Program."

Loan recipients are responsible for ensuring that prime contractors utilized on the project are not on the federal or state debarment lists. Likewise, prime contractors are responsible for ensuring that subcontractors utilized on the project are not on the federal or state debarment lists.

Anyone may contact the Board Chairman concerning the existence of a cause for debarment or suspension. The Board Chairman may refer the matter to the State Attorney General or other appropriate office for further investigation. If, after review or investigation, the Board Chairman reasonably believes that a cause for debarment exists, the Board Chairman may propose debarment or suspension and may initiate procedures similar to, but not necessarily identical to, federal regulation 40 CFR Part 32: Debarment and Suspension Under EPA Assistance Programs.

Such above described debarment or suspension actions will not affect existing executed contractual agreements, unless such agreements have been terminated or suspended under the terms of the agreement by the loan recipient.

B. Violating Facilities

No loan will be awarded to any loan applicant which owns or makes use of any facility that is on EPA's "List of Violating Facilities", or its successor, unless such loan will remedy the problem which resulted in the facility being placed on the list.

Loan Recipients are prohibited from entering into contractual agreements with individuals, businesses, organizations, or any other entities that are in violation of the Safe Drinking Water Act, unless the agreement will remedy the problem which caused the violation. Such entities are identified in the "List of Violating Facilities".

This Page Intentionally Left Blank

APPENDIX D

DWSELF Disputes Procedures

Only DWSELF loan recipients may submit a notice of dispute (disagreement) with a decision made by the Department. The following procedures will be used to resolve disputes between the loan recipient and the Department.

(1) The loan recipient must submit a written notice of dispute with a Department decision, including a summary of the dispute and reasons for why the loan recipient believes the Department decision should be reversed.

(2) The Department staff will then render a written decision on the dispute and will include reasons for the decision.

(3) Should the loan recipient desire to appeal the Department staff decision, a request for an informal hearing must be received by the Department within 30 days after the date of the Department staff decision. Upon receipt of such a request, an informal hearing will be held with staff members, as designated by the Board Chairman, and the affected parties. The Board Chairman, or his designee, will render a decision on the appeal as a result of the informal hearing.

(4) Should the loan recipient desire to appeal the above informal hearing decision, a request for a formal hearing before the Local Governments and Rural Water Systems Improvements Board must be received by the Department within 30 days after the date of such decision. Upon receipt of such a request, the Board will hold a formal hearing to consider the matter and will render a decision.

(5) Appeals of the above formal hearing decision may be made to the Chancery Court in accordance with state law.

This Page Intentionally Left Blank

APPENDIX E

Waste, Fraud and Abuse

It is the loan recipient's responsibility for preventing, detecting, and prosecuting waste, fraud, abuse, and all other corrupt practices which occur in relation to the DWSELF loan project.

If the loan recipient becomes aware of allegations, evidence, or the appearance of corrupt practices, the loan recipient must:

(1) Immediately inform the Department in writing.

(2) Promptly pursue available state and local legal, administrative, and contractual remedies.

The Department may disallow costs under the DWSELF loan agreement where it is determined that such costs are related to waste, fraud, abuse, or other corrupt practices. The Department may also require repayment of DWSELF loan funds paid for such costs in accordance with Section III.E.(6) of this regulation.

This Page Intentionally Left Blank

APPENDIX F

DWSELF Loan Recipient Accounting and Auditing Requirements

All DWSELF loan recipients must maintain project accounts in accordance with generally accepted government accounting standards, as defined by the Guidelines of the Municipal Accounting and Audit Manual, as prescribed by the State Auditor's Office. Charges to the project account must be properly supported, related to eligible construction/repair costs, and documented by appropriate records. These project accounts must be maintained as separate accounts.

All contracts for professional services, construction, equipment, and supplies must include an access to audit clause which gives the Department and its representatives access to and the right to audit, inspect, copy and examine books, financial records and other documents relating directly to the receipt and disbursement of DWSELF funds.

This Page Intentionally Left Blank

APPENDIX G

Intergovernmental Review Process

The following outlines the Board's requirements for compliance with the Intergovernmental Review Process for Drinking Water Systems Emergency Loan Fund (DWSELF) projects in Mississippi. These actions must be taken and an Intergovernmental Review Certification (hereinafter Certification) submitted as part of the DWSELF loan application package. The Intergovernmental Review Agencies (IGR) are as follows:

(1) Department of Archives and History (For Archaeological/Cultural Resources Review);

(2) Natural Heritage Program (For Vegetative/Wildlife Survey);

(3) Army Corps of Engineers, Regulatory Functions Branch (For Wetlands and Navigable Waterway Crossing Review);

(4) U. S. Fish and Wildlife Services (Jackson, Harrison, and Hancock County Projects only, for Coastal Barriers Resources Act Review); and

(5) U. S. Forest Service (For Wild and Scenic Rivers).

Loan Application

When completing the Certification form, the applicant/loan recipient should mark the first certification if the proposed project will consist of only construction/repair work on previously disturbed sites, easements, and rights-of-way. If this certification is marked accurately, then no further intergovernmental review is necessary.

If there are portions of the project that will affect previously undisturbed sites, easements, or rights-of-way, during preparation of the DWSELF loan application package the appropriate intergovernmental review agencies must be consulted, by telephone, or other communication, about the proposed project area concerning the existence of any known or possible archaeological/cultural resources sites, endangered vegetation/wildlife, wetlands, navigable waterway crossings, wild and scenic rivers impact or coastal barriers resources impact, and their concurrence or comments noted on the Certification.

If any of the intergovernmental review agencies have comments on the project, the applicant/loan recipient must attach a summary of those comments and the actions necessary to address those comments, including a schedule for completing the required actions, to the Certification, which must be included as part of the DWSELF loan application package. It will be the applicant/loan recipient's responsibility to take all actions necessary to satisfy the IGR comments and obtain concurrence in the project prior to awarding contracts for construction/repair for project portions under comment.

This Page Intentionally Left Blank

APPENDIX H

DWSELF Procurement Protest Procedures

This Appendix sets forth the process for the resolution of procurement protests filed with the loan recipient by an adversely affected party. The Loan Recipient's protest procedures must include the requirements of this Appendix.

(1) Prior to advertisement for bids or proposals, the loan recipient must establish its own procedures for prompt consideration of initial protests concerning solicitations or contract awards. A "protest" is a written complaint concerning the loan recipient's solicitation or award of a contract. The protest must be filed with the loan recipient by a party with a direct financial interest adversely affected by a loan recipient's procurement action, and must be filed in accordance with and within the time frame established by the loan recipient's protest procedures.

(2) Any party which transmits any document concerning the protest during the course of a protest and protest resolution must simultaneously furnish all other affected parties and the Department with a copy of all documents in the transmittal.

(3) Upon receipt of a protest, the loan recipient must make a determination on the protest in accordance with the loan recipient's protest procedures within thirty (30) calendar days after such protest, or sooner if so required by the loan recipient's procurement protest procedures.

(4) The party with a direct financial interest adversely affected by a loan recipient's determination of the protest may appeal such a determination only through the appropriate court of competent jurisdiction, provided such appeal is initiated within seven (7) calendar days after receipt of the determination.

(5) Any delay due to a protest or protest resolution will not relieve the loan recipient of the requirement to meet the project schedule established in the loan agreement, nor will such delays prevent the Department from pursuing the remedies for default established in the loan agreement.

This Page Intentionally Left Blank

APPENDIX I

Related Laws and Regulations

The loan recipient must comply with all related laws and regulations during the planning, design, construction, and operation of the project, including the following. The listing below does not relieve the loan recipient from the responsibility of compliance with all related laws and regulations, whether listed below or not.

Federal "Safe Drinking Water Act" (42 U.S.C. 300et. seq.). Public Law 93-523.
"National Interim Primary Drinking Water Regulations", Environmental Protection Agency, Water Programs, Federal Register 40, No. 246, December 24, 1975, 59566 - 59574.
"Secondary Maximum Contaminant Levels", Environmental Protection Agency, Water Programs, Federal Register 42, March 31,1977, 17144 - 17146.
"Mississippi Safe Drinking Water Law of 1976", Section 41-26-1 through 41-26- 21, Mississippi Code of 1972, annotated.
"Primary Drinking Water Regulations", Mississippi State Board of Health Environmental Regulations, Division 300 - Water Supply, Part 301, Public Water Systems.
"Municipal and Domestic Water and Wastewater System Operator's Certification Act of 1986", Section 21-27-201 through 21-27-221, Mississippi Code of 1972, annotated.
Regulations Governing the Certification of Municipal and Domestic Water System Operators", Mississippi State Board of Health Environmental Regulations, Division 300 - Water Supply, Part 302.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

Part 2 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

Chapter 1 Introductory Provisions

33 Miss. Admin. Code Pt. 2, R. 1.1.1 Rule 1.1.1

These regulations, adopted pursuant to Section 41-3-16, Mississippi Code of 1972, as amended, shall govern the Local Governments and Rural Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program. These regulations may be superseded by the loan agreement, when a variance or exception is made by the Local Governments and Rural Drinking Water Systems Improvements Board (Board) and when not in conflict with any state or federal laws or executive orders.

Subchapter 2: Effective Date of Regulations.

History

Source: Miss. Code Ann. § 41-3-16.

33 Miss. Admin. Code Pt. 2, R. 1.2.1 These amended regulations are effective July 1, 2017

Subchapter 3: Definitions.

History

Source: Miss. Code Ann. § 41-3-16.

33 Miss. Admin. Code Pt. 2, R. 1.3.1 Rule 1.3.1

The following words and terms, when used in these regulations, will have the following meanings, unless the context clearly indicates otherwise:

Act - The Local Governments and Rural Water Systems Improvements Revolving Loan Program Act, Section 41-3-16, Mississippi Code of 1972, as amended. 2. Allowable Costs - Those project costs that are eligible, reasonable, necessary, allocable to the project, within the established project scope and budget, in conformance with the DWSIRLF regulations and approved by the Mississippi State Department of Health (Department). 3. Authorized Representative - The signatory agent of the applicant authorized and directed by the applicant's governing body to make application for assistance and to sign documents, on behalf of the applicant, required to undertake and complete the project. The signatory agent must be a member, or an employee of the applicant's governing body, and may not be under a separate contract with the applicant at any time during the execution of the project. 4. Binding Commitment - A DWSIRLF loan offer, as described in these regulations. 5. Board - The Local Governments and Rural Water Systems Improvements Board. 6. Change Order - The documents executed by the loan recipient and the construction contractor, upon recommendation of the registered engineer if required by the contract documents, authorizing a change, alteration, or variance in the plans, specifications, and contract documents, including, but not limited to, additions or deletions of work to be

performed pursuant to the contract or a change in costs or time for work performed pursuant to the contract. 7. Construction - Any one or more of the following: erection, building, acquisition, alteration, remodeling, improvement or extension of drinking water systems. 8. Department - Mississippi State Department of Health and staff, and their designated representatives. 9. DWSELF - The Drinking Water Systems Emergency Loan Fund. 10. DWSIRLF - The Drinking Water Systems Improvements Revolving Loan Fund. 11. Eligible Applicant - A county, incorporated municipality, district or other water organization that has been granted tax exempt status under either federal or state law, which has the authority to collect, treat, store and distribute piped water for human consumption, has the authority under state law to receive DWSIRLF loan assistance, and has the ability to comply with these regulations and the requirements of the loan agreement. 12. Eligible Cost - Eligible costs are those costs in which DWSIRLF loan participation is authorized pursuant to applicable statute. 13. Environmental Review – The process by which the Department evaluates the potential environmental impacts of a proposed project and determines the appropriate level of review, including but not limited to Categorical Exclusion, Environmental Assessment, or Environmental Impact Statement. 14. Financial Assistance - Loans by the Board from the DWSIRLF. 15. Improvements - Making improvements to drinking water systems, including construction of new drinking water systems or repair of existing drinking water systems. 16. Loan Agreement - An agreement between the Board and the loan recipient through which the Board provides DWSIRLF funds for eligible assistance and the recipient promises to repay the principal sum and interest back to the DWSIRLF over a period and at an interest rate established in the loan agreement. 17. Loan Applicant - A county, incorporated municipality, district, or other water organization that makes application for assistance from the DWSIRLF program. 18. Loan Application (Part 2) – The formal request for financial assistance submitted by a loan applicant after placement on the Priority List and invitation by the Department to proceed. This application confirms the applicant’s intent to accept funding and provides any additional information required to complete underwriting and issue a loan agreement. 19. Loan Recipient - A county, incorporated municipality, district, or other water organization that receives a loan from the DWSIRLF program. 20. May - whenever used in the context of an action to be taken by the loan applicant/recipient the word will be interpreted as optional but is not mandatory. 21. May Not - whenever used in the context of an action by the loan applicant/recipient such action is prohibited by these regulations. 22. Must - whenever used in the context of an action to be taken by the loan applicant/recipient the word will be interpreted as mandatory. 23. Plans, Specifications and Contract Documents - The engineering description of the project including engineering drawings, maps, technical specifications, design reports or other supporting engineering documentation, and construction contract documents in sufficient detail to allow contractors to bid on and construct the work.

Priority System - The criteria established in the Board's Intended Use Plans (IUP) for scheduling and ranking projects for which DWSIRLF loan assistance is requested. 25. Project - The scope of work for which assistance is offered under the DWSIRLF. 26. Project Completion - The date of the final construction observation as performed by the Department for the purpose of an allowability determination. 27. Project Information (Part 1) – The initial project submittal provided by a loan applicant for the purpose of establishing eligibility, scoring, and placement on the Priority List. This submittal includes sufficient information for the Department to evaluate project need, scope, and potential environmental impacts. 28. Protest - A written complaint to the loan recipient concerning the loan recipient's solicitation or award of a contract. The protest must be filed with the loan recipient by a party with a direct financial interest adversely affected by a loan recipient's procurement action. 29. Public Water System (PWS) - A system for the provision to the public of piped water for human consumption, if such a system has at least fifteen service connections or regularly serves at least twenty-five individuals. This includes any collection, treatment, storage and distribution facilities under the control of the operator of a PWS or used primarily in connection with a PWS. 30. PWSS - Public Water System Supervision. 31. Rate Structure - Will have the same meaning as User Charge System. 32. Registered Engineer - The engineer, registered by the Mississippi State Board of Registration for Professional Engineers and Land Surveyors, retained or employed by the loan recipient to provide professional engineering services during the planning, design, and/or construction of the project. 33. Repayment - Principal and interest payments on DWSIRLF loans which must be credited directly to the DWSIRLF. 34. Revolving Fund - The Local Governments and Rural Water Systems Improvements Revolving Loan Fund, created pursuant to Section 41-3-16(2)(a), Mississippi Code of 1972, as amended. 35. SDWA - The federal Safe Drinking Water Act, and any subsequent amendments. 36. State Categorical Exclusion (CE) – A determination by the Department that a project does not individually or cumulatively have a significant effect on the human environment and therefore does not require the preparation of an Environmental Information Document or Environmental Assessment. 37. Unilateral Change Orders - Change Orders executed only by the loan recipient and identified as such, in accordance with the contract documents. 38. User Charge System - The system by which the loan recipient charges users of the water system rates that produce adequate revenues required for operation, maintenance, replacement of major equipment, retirement of existing debt and repayment of the DWSIRLF loan for the project and must identify the dedicated source of funds, the basis of payment, and user charges for each user class. 39. Water System Viability Analysis - A managerial, operational, financial and technical analysis of a water system to determine whether the system has the capability to reliably meet performance requirements and financial obligations on a long term basis.
Will - Whenever used in the context of an action by the loan applicant/recipient the word will is to be interpreted as mandatory

History

Source: Miss. Code Ann. § 41-3-16.

Chapter 2 PROGRAM REQUIREMENTS

33 Miss. Admin. Code Pt. 2, R. 2.1.1 Rule 2.1.1

To be eligible for financial assistance, an applicant must meet the definition of an eligible applicant as described in Rule 1.3.1 (11) of these regulations and comply with all applicable state and federal requirements, as determined by the Department.

Subchapter 2: Obligation Period. Rule 2.2.1 Federal funds allotted to the State will be available for obligation for a period of one year after the close of the federal fiscal year for which the funds are authorized, or as otherwise established by federal law.

Subchapter 3: Reserves.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.3.1 Rule 2.3.1

A percentage or amount of the State's Drinking Water SRF Federal Capitalization Grant will be reserved each fiscal year for administration of the fund consistent with the Act and state law. Other reserves as established under the SDWA will also be established.

Subchapter 4: Public Comment and Review.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.4.1 Rule 2.4.1

In accordance with the Act, the Board will provide for public comment and review and may take into consideration any comments prior to adoption of the annual Intended Use Plan, including the Priority List and the Priority System. After adoption by the Board, non- substantive or administrative modifications to these documents may be adopted by the Board as provided for in the Intended Use Plan without further public comment and review.

Subchapter 5: DWSIRLF Uses.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.5.1 The DWSIRLF may be used for the following purposes, subject to the intended use plan for a given fiscal year

To make loans on the conditions that: a. Such loans are made at or below market interest rates, at terms not to exceed 20 years after project completion, or as otherwise allowed by the SDWA; b. Monthly principal and interest repayments will commence as further described in Chapter 3 Subchapter 10 of these regulations; c. The recipient of a loan must establish a dedicated source of revenue for repayment of loans; and d. The fund will be credited with all payments of principal and interest on all loans. 2. For the reasonable costs of administering the DWSIRLF program and conducting activities under this Act, subject to any limitations established in the SDWA; 3. For other uses as allowed under the SDWA; and 4. To earn interest on fund accounts.

Subchapter 6: State Capitalization Grant Application. Rule 2.6.1 After the Board adopts each annual Intended Use Plan, including the Priority System and Priority List, the State Health Officer or his designee will submit these items with an application for any available federal Drinking Water State Revolving Fund Capitalization Grant.

Subchapter 7: Federal Requirements.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.7.1 Rule 2.7.1

All projects receiving loan assistance from the DWSIRLF shall comply with the requirements of the SDWA and applicable federal and state laws. Projects funded with federal capitalization grant funds designated by the Department as equivalency projects shall also comply with all applicable federal cross-cutting authorities as identified in Appendix H and all related implementing regulations. The Department may establish state procedures acceptable to EPA.

Subchapter 8: Intended Use Plan.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.8.1 Rule 2.8.1

The Board will prepare an annual Intended Use Plan (IUP), which describes how the Board intends to use DWSIRLF program funds to support the overall goals of the DWSIRLF program, in accordance with the federal requirements found in 40CFR Part 35, Subpart L, Section 35.3555. The Board will seek public review and comments during the development of this IUP and will take all comments received into consideration before adoption of the final IUP.

Subchapter 9: DWSIRLF Financing.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.9.1 Rule 2.9.1

The DWSIRLF has been established to provide low interest loans to assist and encourage communities to make improvements to their drinking water systems. Conditions of these loans are itemized in Rule 2.5.1 (1) of these regulations. Basic DWSIRLF financing requirements are as follows: 1. DWSIRLF loans may be limited at the discretion of the Board based on funds availability or as otherwise stated under state law. 2. The applicant's project must be on the fundable or planning portion of the current year's Priority List. 3. Terms of any DWSIRLF assistance will be as established in the Intended Use Plan IUP for the projects to be funded in each fiscal year and will be further established in the loan agreement. 4. The applicant must comply with the requirements of the SDWA and all applicable state and federal laws, requirements and regulations. 5. The applicant must establish a dedicated source of funds for repayment of the loan. 6. The applicant must not be in violation of any provision of a previously awarded DWSIRLF or DWSELF loan agreement or any other loan agreement. 7. As determined by the Department, the applicant has complied or will comply with any technical assistance recommendations provided by the Department. 8. Except for program administration expenses, funds will not be disbursed from the DWSIRLF until a loan recipient has entered into a loan agreement with the Board.

Subchapter 10: Responsibility.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.10.1 Rule 2.10.1

Subchapter 11: Other Approvals.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 2.11.1 Rule 2.11.1

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

Chapter 3 Project Requirements

33 Miss. Admin. Code Pt. 2, R. 3.1.1 All drinking water system projects funded by the DWSIRLF must comply with the following requirements

Subchapter 2: Project Planning.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.2.1 Preplanning Guidance and Conference

The Department will provide project development guidance to the loan applicant/recipient and/or its registered engineer, who may request a preplanning conference with the Department.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.2.2 Project Information and Planning Documentation

Applicants shall submit Project Information (Part 1) and, if invited by the Department to proceed, a Loan Application (Part 2), in accordance with these regulations and the Intended Use Plan. Planning documentation must include sufficient technical, environmental, and financial information, as determined by the Department, to allow evaluation of project eligibility, technical feasibility, environmental impacts, and repayment capability. The Department may require engineering documentation bearing the seal of a registered engineer when necessary to evaluate technical adequacy. The loan applicant shall hold a public hearing on the proposed project prior to submission of the Loan Application (Part 2). A notice for the hearing must be published in an appropriate local newspaper at least 30 days prior to the hearing date, and project information submitted under Part 1 must be available for public review during this period. Topics to be discussed at the hearing include the facilities to be built, why they are needed, where they will be built, how much they will cost, the average monthly user charge, and the environmental impact. If a project change is significant enough to require a Finding of No Significant Impact (FONSI) amendment, a new public hearing may be required.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.2.3 Environmental Review Process

Environmental review shall be conducted in accordance with Appendix C of these regulations. Environmental review may be initiated upon receipt of Project Information (Part 1) and must be completed prior to execution of a loan agreement.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.2.4 Submittal of Project Information (Part 1

Submission of Project Information (Part 1) for Priority List placement shall be governed by the deadlines established in the Intended Use Plan.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.2.5 Determination of Planning Documentation Sufficiency

The Department shall determine when project planning documentation is sufficient to proceed to loan consideration.

Subchapter 3: Application for DWSIRLF Loan. Rule 3.3.1 Pre-application Guidance and Conference.

The Department will guidance regarding Project Information (Part 1) and Loan Application (Part 2) requirements to the potential loan applicant and/or its registered engineer. The potential loan applicant and/or its registered engineer may request a pre-application conference with the Department as early in the application process as practical.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.3.2 Rule 3.3.2

Contents of Applications Documentation required for loan award must be complete and approvable prior to execution of a loan agreement. The requirements of this section apply to the Loan Application (Part 2) When forms are provided by the Department, these forms must be used, and they may not be altered. The Loan Application (Part 2may request assistance only for costs that are allowable in accordance with Appendices A and B of these regulations and may include a construction contingency, as determined by the Department, in the project budget. The application must include a Project Cost Breakdown. A complete Loan Application (Part 2) package must conform to these regulations, including all Appendices, and must include the following: 1. A complete Loan Application (Part 2) form as prescribed by the Departmentt. 2. A draft user charge system and ordinance/corporate resolution. 3. All proposed or executed contracts for bidding and construction phase professional services. 4. A procurement certification from the loan applicant and the loan applicant's legal counsel. 5. A financial capability summary using the most recent cost estimates, if different from planning estimates. 6. Completion of the intergovernmental review process as described in Appendix K of these regulations if required by the Department, and the final approval letter from the State Clearinghouse when applicable. 7. A legal certification from the loan applicant and the loan applicant's legal counsel. 8. A certified copy of a resolution by the loan applicant's governing body which 1) authorizes the submission of the application and 2) designates an authorized

representative or office to make application for assistance and to sign documents on behalf of the applicant, is required to undertake and complete the project. 9. A copy of all existing or proposed interlocal agreements related to this project, if applicable. Such agreements must be executed by all appropriate parties and must be approved by the Department prior to loan offer. 10. A certification regarding debarment, suspension and other responsibility matters, in accordance with Appendix F of these regulations. 11. Documentation of its tax exempt status under either federal or state law, if the loan applicant is a water organization other than a county, incorporated municipality, or district. 12. An Internal Revenue Service Form W-9. 13. All waste disposal permit applications, if applicable. 14. All other forms, documents, and supporting information required by the Department.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.3.3 Submittal of application

By the date specified in the Priority System the applicant must submit the application to the Department.

Subchapter 4: Offer of DWSIRLF Loan.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.4.1 Rule 3.4.1

Upon determination by the Department that (a)all application and documentation requirements necessary for loan consideration have been satisfied, (b) environmental review requirements have been completed, (c) the project is on the current year’s priority list, and (d) funds are available for the amount of the DWSIRLF loan application, as determined eligible by the Department, the Board Chairman or his designee will execute and transmit a DWSIRLF loan offer to the loan recipient. In addition to the estimated allowable project costs as described in Appendices A and B of these regulations, the loan offer may include a construction contingency, as determined by the Department, in the project budget.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.4.2 Rule 3.4.2

Upon receipt of the DWSIRLF loan offer, the loan recipient must completely execute and return it to the Department within the time frame established in the DWSIRLF loan offer. The loan offer becomes void if not executed and returned within the time frame specified, unless extended by the Board Chairman or his designee.

Subchapter 5: Engineering Design.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.5.1 Predesign Guidance and Conference

The Department will provide design guidance to the loan applicant/recipient and/or its registered engineer, who may request a pre-design conference with the Department.

Rule 3.5.2: Plans, Specifications and Contract Documents.

3.5.2.1 General Requirements.

Plans, specifications, and contract documents must be prepared for all appropriate elements of the project. These documents must conform to Department requirements, to Appendices A, C, D, E, F, H, I, J, K, L, M, N, and O of these regulations, and to the requirements of the most recent version of the Departmental document "Recommended Minimum Design Criteria For Community Water Supplies," and "Guidance for the Design of DWSIRLF Funded Drinking Water Facilities," or their successor(s). Other recognized engineering publications may be used for unit processes or technologies not described therein, subject to Department approval. 2. Plans, specifications, and contract documents must also conform to such contract language, conditions, and forms as may be required by the Department. The plans, specifications, and contract documents must bear the seal of the registered engineer responsible for preparation of these documents.

3.5.2.2 Contents.

In addition to the above, the plans, specifications, and contract documents must contain the following:

Provisions assuring compliance with these regulations and all relevant federal and state laws. 2. Forms by which the bid bond, performance bond and payment bonds will be provided. 3. A contractor's assurance which must warrant compliance by the contractor with all applicable federal laws and regulations and all laws of the State of Mississippi and all regulations and published policies of the Board. 4. Provisions providing for the applicant to retain a certain percentage of the progress payments otherwise due to the contractor, in accordance with state law. 5. Provisions requiring the contractor to obtain and maintain the appropriate insurance coverage. 6. Provisions giving authorized representatives of the Department access to all such construction activities, books, records, documents and other evidence of the contractor for the purpose of inspection, audit and copying during normal business and/or working hours. 7. Provisions for compliance with the Disadvantaged Business Enterprise (DBE) MBE/WBE requirements as described in Appendix E of these regulations. 8. Provisions for change orders. 9. Those conditions, specifications, and other provisions set forth or required by the Department.
Provisions for liquidated damages. 11. Provisions including water meters on new distribution systems. 12. When so required by federal law or regulation, provisions mandating the purchase of American-made equipment and products. 13. All construction contracts funded in whole or in part through the Drinking Water Systems Improvements Revolving Loan Fund shall express contract time for completion in calendar days rather than working days. Contract documents shall state the number of calendar days allowed for completion of the work, including provisions for extensions of time, and shall use calendar days for administration of progress schedules, time extensions, and assessment of liquidated damages.

3.5.2.3 Submittal of Plans, Specifications, Contract Documents and Related Items. By the dates specified in the loan agreement, the recipient must submit the following items to the Department:

Complete plans, specifications and contract documents. 2. A copy of the issued National Pollutant Discharge Elimination System (NPDES) permit or the state operating permit, if required. 3. A copy of the issued solid waste disposal permit, if required. 4. Written waivers from all adjoining property owners when it is not possible to provide required buffer zones, if the project includes drinking water sludge treatment facilities, in accordance with Appendix N. 5. For all loan eligible real property, completion of the appropriate requirements of The Uniform Act as implemented by federal regulation 49 CFR Part 24.101(a)(1) and (2) as applicable, an appraisal (as set forth in the Board’s land acquisition guidance documents), and a written request to the Department for approval of the purchase price of all loan eligible real property. Prior to advertisement for construction bids, the loan recipient must secure approval of the purchase price by the Department, must complete purchase of all loan eligible real property and easements, and must submit clear title certificates from the loan recipient and title counsel for all such loan eligible property.

3.5.2.4 Approval of Plans, Specifications and Contract Documents.

The Department will approve the plans, specifications, and contract documents upon determining that these documents: 1. Appear to conform to the requirements of these regulations, 2. Appear to be approvable pursuant to a technical review by the Department, and 3. Appear to be consistent with the project planning documents and environmental determinations required by these regulations.

Subchapter 6: Construction Bidding and Loan Amendment.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.6.1 Within the timeframe established in the loan agreement, the loan recipient must

Secure Department approval of the plans, specifications and contract documents. 2. For all loan ineligible real property and easements (including power and other utilities), complete the appropriate requirements of the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act (The Uniform Act) as implemented by federal regulation 49 CFR Part 24.101(a)(1) and (2) as applicable and submit certification forms from both the loan recipient and the title counsel which indicate that all such loan ineligible real property and easements for the entire project have been secured by clear title. 3. Secure all local funds necessary for the project and submit proof of such. 4. Upon completion of (1) through (3) above and issuance of any other permits or clearances required for the project, advertise the project for construction bids. All procurement actions by the loan recipient must comply with state law and these regulations.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.6.2 Rule 3.6.2

Upon receipt of construction bids, the loan recipient must then submit a) the completed DBE MBE/WBE documentation as required by Appendix E of these regulations, b) the completed bid package, c) all necessary executed contracts and amendments as described in Rule 3.3.2(3) of these regulations, and d) a loan agreement amendment request (consistent with as-bid construction costs, a construction contingency as determined by the Department, and any professional services contracts and amendments) to the Department within the time frame established in the loan agreement.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.6.3 Rule 3.6.3

Upon receipt of the items listed in Rule 3.6.2 above, the Department will review them to determine whether any request for an increased loan amount is justified and allowable under these regulations and whether funds are available. After determining that all documents are approvable, the Department will transmit to the loan recipient approval to execute the construction contracts.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.6.4 Amended Loan Offer

3.6.4.1 After receipt, review and approval of the loan agreement amendment request, the Department may prepare and transmit an amended DWSIRLF loan offer to the loan recipient. The loan offer will include in the project budget: 1. the approved as-bid amounts for construction, 2. the final allowance amounts for professional services in accordance with Appendix B of these regulations, 3. a construction contingency as determined by the Department, and 4. the original administrative fee.

3.6.4.2 Upon receipt of the amended DWSIRLF loan offer, the loan recipient must completely execute and return it to the Department within the timeframe established in the offer letter. After execution of the amended DWSIRLF loan offer, the DWSIRLF loan amount may not be increased except for funding of a subsequent phase of a segmented project as identified in the Intended Use Plan for a later fiscal year. Any increased project costs in excess of the amended DWSIRLF loan amount must be paid by the loan recipient from sources other than DWSIRLF loan funds.

Subchapter 7: Construction.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.7.1 Construction 3.7.1.1 Awarding Construction Contracts and Preconstruction Conference

Upon receipt of the approval to execute the construction contracts and to issue the notice to proceed, the loan recipient must do so and must transmit a copy of the executed construction contracts and the notice to proceed to the Department within the time frame specified in the loan agreement.

3.7.1.2 The loan recipient will be responsible for assuring that every appropriate procedure and incidental legal requirement are observed in advertisement for bids and awarding the construction contracts. For projects designated as equivalency projects, all applicable federal cross-cutting authorities must be implemented during construction. The plans, specifications, and executed contract documents must not vary from those approved by the Department.

3.7.1.3 The loan recipient may arrange and hold a preconstruction conference and must allow attendance and participation by the Department if such is held.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)
Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.7.2 Observation During Construction

3.7.2.1 During all times that construction work is being performed, the loan recipient must provide for full-time observation of the project by the registered engineer or his staff and must require the registered engineer's assurance that the work is being performed in a satisfactory manner in accordance with the loan agreement and the approved plans, specifications, contract documents, and approved change orders. Less than full-time observation may be allowed when approved by the loan recipient.

3.7.2.2 The Department is authorized to observe the building of any project at any time for compliance with the terms of the loan agreement and to determine if the loan recipient is

assuring that plans, specifications and contract documents are being followed. Such observation will not subject the Department to any legal action for claims, damages or any other liability. Also, such observation will not release the contractor from any obligation to perform the work in accordance with the requirements of the contract documents or the registered engineer from determining compliance with the requirements of the contract documents or the loan recipient from insuring compliance with the terms of the loan agreement.

33 Miss. Admin. Code Pt. 2, R. 3.7.2.3 Rule 3.7.2.3

The contractor, registered engineer, and the loan recipient must furnish the Department with every reasonable opportunity and means for determining whether the loan recipient and registered engineer are assuring that the work is in accordance with the requirements of the approved plans, specifications and contract documents. The Department is authorized to observe and require submission by the loan recipient of daily logs, full scale record drawings, file notes, and any other documents prepared by any party in relation to the DWSIRLF funded project.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.7.3 Observation of Materials and Equipment

The Department is also authorized to observe all equipment and materials furnished, including observation of the preparation or manufacture of the equipment and materials to be used. Such observation shall not constitute approval or acceptance by the Department and does not relieve the loan recipient or the registered engineer of responsibility for compliance with approved plans and specifications.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.7.4 Construction Deficiencies

3.7.4.1 In the event that it appears to the Department that the loan recipient and registered engineer are not assuring that the construction work, materials, equipment or supplies are in conformity with approved plans and specifications, the Department may determine such work unallowable for DWSIRLF loan participation, unless the loan recipient takes such action, through the registered engineer if applicable, in the manner provided for in the construction contract to correct any deficiencies.

3.7.4.2 The Department may immediately withhold DWSIRLF loan payments for such time that it appears that the loan recipient and registered engineer are not assuring that construction work, materials, equipment or supplies are in accordance with the approved plans, specifications and contract documents, and may require the loan recipient to repay any previously paid amounts related to such work within 30 days of such notification.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.7.5 Change Orders

3.7.5.1 General.

In the event a determination is made by a loan recipient after a construction contract is executed that changes or modifications to the original contract are necessary or would better serve the purpose of the loan recipient, such loan recipient may, at its discretion, execute such change orders pertaining to the construction that are necessary under the circumstances, as provided in the contract documents and when in accordance with state law. 2. Change orders must not change, vary, or alter the basic purpose or effect of the project unless allowed by the Department. Change orders must be technically adequate, the costs must be necessary and reasonable, and eligible/ineligible costs must be appropriately separated.

3.7.5.2 Change Order Submittals.

After completion of the claims resolution and/or change order negotiation process between the loan recipient and the contracting party, a fully executed change order must be submitted to the Department for review and approval, in order to obtain a DWSIRLF loan eligibility/allowability determination. 2. If any change order is submitted to the Department that is not complete and fully executed by the loan recipient, the contracting party, and the registered engineer if appropriate, the Department may return such change order without review. However, unilateral change orders executed by the loan recipient, and the registered engineer if appropriate, and identified as such, that are issued in accordance with the contract documents may be submitted to the Department for review and approval, in order to obtain a DWSIRLF loan eligibility/allowability determination. 3. The loan recipient may submit a complete and fully executed change order which has been executed conditional upon a DWSIRLF loan eligibility/allowability determination by the Department. 4. All change orders must be submitted to the Department for review and approval in a timely manner. The Department may withhold payments to the loan recipient if change orders are not submitted in a timely manner. 5. If possible, approval of a change order should be secured from the Department before the work is started, particularly for change orders including time extensions as per Rule 3.7.5.4 below. Approval may also be secured after the work is started; however, the loan recipient must bear the cost if the work is determined to be ineligible or unallowable. 6. When the eligible cost of a project will be significantly reduced by a change order or change orders, the Department may issue an amendment to the loan agreement decreasing the loan amount, and the loan recipient must execute such amendment within the time frame established by the Department.

3.7.5.3 Department Review.

In order to allow the Department to perform a technical and loan allowability review, requests for change order approvals must conform to Department guidance, requirements and regulations.

3.7.5.4 Time Extensions.

Change orders which include time extensions exceeding 30 days beyond the original contract completion date, and/or documentation that the loan recipient is implementing all legal remedies provided in the contract documents for failure to complete construction when required, must be submitted to the Department as specified in Rule 3.7.7 (9) of these regulations. Justification for contract time extensions included in a change order must be prepared, but need not be submitted to the Department unless the total time extensions for the contract exceed 30 days after the original contract completion date, in which case justification for all time extensions must be submitted to the Department for an allowability determination.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.7.6 Contractor Bankruptcy or Default

In the event of a contractor bankruptcy or default, any proposed agreements with the bonding company (other than the bonding company serving as general contractor or fully bonding another contractor acting as their agent) must be submitted for DWSIRLF loan allowability determination by the Department prior to execution. If the loan recipient determines that re- award of the construction contract or a portion thereof is necessary due to contractor bankruptcy or default, such proposed re-award contracts must be submitted for DWSIRLF loan allowability determination by the Department prior to execution. The loan recipient will be responsible for assuring that every appropriate procedure and incidental legal requirement are observed in advertising for bids or otherwise re-awarding a construction contract, if this course of action is taken.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.7.7 Construction Phase Submittals, Approvals, and Actions

The following submittals, approvals, and actions will be required during the construction phase of the project. The Department may establish other time frames within the loan agreement when properly justified.

Within 90 days after approval of plans, specifications and contract documents by the Department (1) all construction related contracts must be advertised for bids and proof of such advertisement must be submitted, (2) all local funds necessary for the project must be secured, and proof of such local funds must be submitted, and (3) clear site certificates from the loan recipient and title counsel for all real property must be submitted. 2. Within 120 days after approval of plans, specifications and contract documents by the Department, the loan recipient must open bids on all construction related contracts. 3. Within 14 days after receipt of bids, the loan recipient must submit all DBE, EEO, and related documents. 4. Within 21 days after receipt of bids for new construction, the loan recipient must submit all bid packages. 5. Within 60 days after receipt of bids, the loan recipient must execute all construction contract documents, must submit a copy of all executed contract documents, and must issue and submit a copy of the notice to proceed on all such contracts. 6. By the date initially established in the loan agreement (which is based upon approximately 50% of contract time) the loan recipient must submit (1) a completed operation and maintenance manual for all drinking water treatment facilities to be

constructed in whole or in part with DWSIRLF funds and (2) a plan on how the loan recipient will insure that operators are hired and certified in accordance with state law by the date in (g) below. 7. By the date initially established in the loan agreement (which is based upon approximately 90% of contract time) the loan recipient must (1) enact the approved user charge system and ordinance/corporate resolution and submit proof of such enactment, (2) if applicable, secure approval of the operation and maintenance manual, (3) hire all operators, and (4) submit their names and submit the operator certification numbers for the operators certified in accordance with state law. 8. Within 10 days after construction completion of each construction contract, the loan recipient must notify the Department of construction completion. 9. The Department will perform a final construction observation within 30 days after the current construction contract completion date, unless further delayed by the Department pursuant to review of the loan recipient's request and justification for such delay. Should the Department decide that the construction completion is being unreasonably delayed, a final construction observation may be immediately performed by the Department. The final construction observation by the Department is only for the purpose of determining final loan allowable costs. 10. Within 30 days after the current construction contract completion date, all change orders which include time extensions exceeding 30 days beyond the original contract completion date, and/or documentation showing the loan recipient is implementing all legal remedies provided in the contract documents for failure to complete construction when required, must be submitted to the Department for an allowability determination.

Within 30 days after the final construction observation performed by the Department, the loan recipient must submit: final payment request; approvable summary change orders for all construction contracts; full scale record drawings with all revisions shown and noted for the entire project funded in whole or in part with DWSIRLF funds; the registered engineer's certification of compliance with plans, specifications, and contract documents; appropriate bacteriological test results; final construction phase professional services contract amendments, if any; and all other administrative forms and documents required by the loan agreement. Loan payment requests submitted after this date are not allowable, regardless of when the costs were incurred.

33 Miss. Admin. Code Pt. 2, R. 12 Rule 12

Any other submittals or actions required by the loan agreement must be performed when so required and are subject to review and approval by the Department.

Subchapter 8: Post Construction Phase.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.8.1 Rule 3.8.1

Following final payment of DWSIRLF loan funds to the loan recipient, or upon expiration of any deadlines established by the loan agreement or the Department, the Department or other designated parties may perform an audit of the DWSIRLF loan project for the purpose of determining compliance with the loan agreement and to determine final allowable costs,

payments made to date, and any additional payments due the loan recipient or repayment due the Department.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.8.2 Rule 3.8.2

Upon completion of the DWSIRLF audit (or if an audit is not performed, following final payment of DWSIRLF loan funds to the loan recipient, or upon expiration of any deadlines established by the loan agreement or the Department), the Department will transmit to the loan recipient a copy of the audit report, if performed, a final determination of allowable costs and payments due the loan recipient or repayments due the State, and a final loan agreement between the loan recipient, the Board, and, if applicable as established under state law, the State Tax Commission.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.8.3 Rule 3.8.3

Unless, within 30 days after the date of the above final determination, the loan recipient submits a written appeal of the final determination, including a written justification of the reason for the appeal, and supporting documentation for any disputed costs of the final determination, the final determination of allowable costs will become the final allowable costs for purposes of DWSIRLF loan payments and the loan agreement, and the loan recipient must execute and submit the final loan agreement.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.8.4 Rule 3.8.4

Should an appeal be submitted in accordance with Rule 3.8.3 above, the disputes procedures established in Appendix G of these regulations will be followed in order to resolve the dispute and establish the final allowable costs. Upon resolution of a dispute of the final determination, the Department will transmit to the loan recipient a revised final loan agreement. The loan recipient must execute and submit to the Department the final loan agreement within the deadline established by the Department.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.8.5 Rule 3.8.5

Upon receipt of an executed final loan agreement from the loan recipient, repayment of the DWSIRLF loan will commence, or if applicable as established under state law, the Department will transmit the loan agreement to the State Tax Commission for execution and return to the Department.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.8.6 Rule 3.8.6

Upon such execution and return, the Department will transmit a copy to the loan recipient, and repayment of the DWSIRLF loan will commence under the terms of the executed final loan agreement.

Subchapter 9: Payments to DWSIRLF Loan Recipients.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.9.1 Payments from the DWSIRLF may be made to DWSIRLF loan recipients under the following conditions:

3.9.1.1 Payments may be requested by and made only to loan recipients, in accordance with the loan agreement and the loan recipient's contracts for eligible and allowable services and construction for work performed within the project scope and budget period.

3.9.1.2 Payments may be requested no more often than on a monthly basis, except as required by state law or as allowed by the Department.

3.9.1.3 The loan recipient must deduct from all DWSIRLF payment requests the amount of funds provided or to be provided from all other state and federal agency funding sources for allowable DWSIRLF project costs.

3.9.1.4 Payment requests must be submitted by the loan recipient to the Department and must include the following:

DWSIRLF payment request form with original signature; 2. Cumulative invoices for all allowable costs for which payment is requested except for the facilities planning and design allowance as determined by Appendix B of these regulations; 3. Any other documents required by the loan agreement; 3.9.1.5 The timing of DWSIRLF payments will be as follows, provided the loan recipient is in compliance with the requirements of these regulations and all provisions of the loan agreement. 1. Payments for planning and design professional services may be requested and paid based upon incurred allowable costs as supported by invoices and documentation acceptable to the Department, subject to the maximum allowance determined in accordance with Appendix B of these regulations.2. No more than ninety-five percent (95%) of the total approved planning and design allowance shall be paid until: (a) All plans, specifications, and contract documents have been reviewed and approved by the Department; and (b) Clear site certificates from the loan recipient and title counsel for all loan-eligible and ineligible real property have been submitted and accepted by the Department.3. Upon satisfaction of the requirements in paragraph (2), the remaining balance of the approved planning and design allowance may be requested and paid.4. Upon execution and submittal of all construction contracts within the project scope and upon issuance and submittal of the notice to proceed on all such contracts, any increase between the estimated and final planning and design allowance may be requested and paid. Any overpayment will be recovered in accordance with Rule 3.9.1.6 of these regulations. 5. Payments for construction phase professional services allowance, as determined by Appendix B of these regulations, may be requested and paid based upon incurred allowable costs as supported by invoices in accordance with the executed contracts. Such requested payment amounts are subject to verification by the Department. No more than

95% of the total construction phase professional services allowance will be paid until the requirements of Rule 3.7.7 (9), (10), and (11) of these regulations have been met. 6. Payments for allowable construction work may be requested and paid based upon in- place work or materials and equipment delivered to the construction site, as specified in the construction contract, as supported by invoices and verified as accurate by the registered engineer and the loan recipient, less any retainage. Such requested payment amounts are subject to verification by the Department. 3.9.1.6 Any payments made to the loan recipient which are at any time determined by Department to be for costs not in accordance with the loan agreement, for ineligible or unallowable costs, or for costs related to waste, fraud, abuse or illegal acts under state or federal law must be repaid to the DWSIRLF fund within 30 days of such notification by the Department. Interest may be charged on such delinquent repayments after expiration of the 30-day period at a rate of ten (10) percent per annum, compounded monthly. Alternatively, the Department may withhold such amounts from subsequent payment requests.

History

Source: Miss. Code Ann. § 41-3-16(3)(b) Subchapter 10: DWSIRLF Loan Repayment Requirements.

33 Miss. Admin. Code Pt. 2, R. 3.10.1 Rule 3.10.1

Interest on amounts paid to the loan recipient shall commence on the last construction contract completion date as established in the initial loan agreement for the project, or one year after the date in the initial loan agreement for issuance of the notice to proceed for the earliest construction contract, whichever occurs first.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.10.2 Rule 3.10.2

The amount of interest accrued between the date established in Rule 3.10.1 above and the initiation of the repayment process will be added to the final allowable project costs to determine the principal amount to be repaid by the loan recipient.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.10.3 Rule 3.10.3

The loan repayment period will commence as soon as practical after transmittal of the final loan agreement to the loan recipient and end as established in the Intended Use Plan IUP under which the project is funded. A reduced period may be provided, if so requested by the loan recipient.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.10.4 Rule 3.10.4

Repayments are to be made by counties on a semi-annual basis through homestead exemption annual tax loss reimbursement withholdings, by municipalities on a monthly basis through state sales tax withholdings if adequate to provide such repayments, and by all other loan recipients through submission of monthly repayments in accordance with state law.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

33 Miss. Admin. Code Pt. 2, R. 3.10.5 Rule 3.10.5

The repayment interest rate and the frequency of interest compounding will be as established in the IUP under which the project is funded.

APPENDIX A

Determination of Eligible and Allowable Costs

CONTENTS

Page General

A. Construction 25 1. Allowable 25 2. Unallowable

B. Equipment, Materials and Supplies 27 1. Allowable 27 2. Unallowable

D Change Orders

E Professional Services 29 1. Allowable 29 2. Unallowable

F. Claims 32 1. Allowable 32 2. Unallowable

G. Mitigation 32 1. Allowable 32 2. Unallowable

H. Real Property 33 1. Allowable 33 2. Unallowable

I. Miscellaneous Costs 34 1. Allowable 34 2. Unallowable

J. Project Income 35

A. General

Eligible costs are those costs in which DWSIRLF loan participation is authorized pursuant to applicable statute. Allowable costs are eligible costs that meet the following general criteria in addition to any specific identification as an allowable cost within Appendix A:

(1) Are necessary and reasonable for the proper and efficient administration and construction of the project, are allocable to and within the defined scope of the project, and are not a general expense required to carry out the overall responsibilities of the loan recipient.

(2) Are authorized or not prohibited under state or local laws or regulations.

(3) Conform to any limitations or exclusions set forth in state laws or other governing limitations as to types or amounts of cost items.

(4) Are consistent with policies, regulations, and procedures that apply uniformly to both state assisted and other activities of the loan recipient.

(5) Are accorded consistent treatment through the application of generally accepted accounting principles appropriate to the circumstances.

(6) Are not allocable to, or included as, a cost of any other Federal or State financed program in either the current, prior, or future period.

(7) Are approved as allowable by the Department.

(8) Are within the scope and budget period of the project as per the loan agreement. However, the budget period does not apply to the planning and design allowance.

(9) Notwithstanding this Appendix, are eligible and allowable under the SDWA and any implementing federal regulations.

(10) Are determined without regard to any previous DWSELF or DWSIRLF loan funding provided for facilities to be replaced, upgraded, or rehabilitated, except as described in Rule 2.9.1 (6) of these regulations.

(11) Are procured in accordance with Appendix D of these regulations.

B. Construction

(1) Allowable costs include the costs for/of:

(a) The following types of projects, and as further described or limited in the Intended Use Plan under which the project is funded:

(i) projects that will facilitate compliance with national primary drinking water regulations;

(ii) projects that will facilitate consolidation of public water systems or the use of an alternative water supply;

(iii) projects that will upgrade a drinking water system; or

(iv) development of a public water system to replace private drinking water supplies if the water poses a significant threat to human health.

(b) Subagreements for construction work on drinking water systems improvements. These subagreements are the prime contracts (including any subcontracts) for such construction work and any necessary contracts for purchase of equipment, materials and supplies by the loan recipient. Should any costs for such contracts be incurred prior to loan offer, said costs will be allowable provided that the loan recipient has requested and obtained Department approval of said costs and provided that the loan agreement budget period includes the time period these costs are incurred.

(c) Drinking water distribution lines on drinking water distribution projects which provide drinking water to previously unserved areas, and the service lines between the public water main and the water meter.

(d) Drinking water distribution system rehabilitation and replacement (including rehabilitation and replacement of eligible service lines) necessary to eliminate water loss or to preserve/restore the safety or integrity of the system, as determined by the Department based on submitted project planning documentation.

(e) Water system capacity equal to all water distribution system leaks that will remain in the system, as determined by the Department based on submitted project planning documentation.

(f) Drinking water systems which include service to industrial or commercial users when such works are owned by an eligible applicant.

(g) Buildings that house or protect water production, treatment or distribution facilities.

(h) Replacement of existing service lines from a water main up to a building (which includes any privately owned portion) if an identified public health threat exists (such as lead in the drinking water) that can be reduced by the replacement of the existing service line.(2) Unallowable costs include:

(a) Costs for the following types of projects:

(i) Projects primarily for growth, development, or fire protection;

(ii) Projects that can be consolidated (except for projects to implement such consolidation);

(iii) Projects for systems without adequate financial or managerial support necessary to comply with SDWA requirements and all requirements of the loan agreement; and

(iv) Projects for drinking water systems which serve federal users exclusively, or almost exclusively.

(b) Construction and construction related costs which are incurred after the Department approved eligible contract completion date (including approved time extension change orders), unless approved by the Department pursuant to Rule 3.7.5.4 of these regulations.

(c) Bonus payments that are part of the construction contract for completion of building before a contractual completion date, unless required by state law.

(d) Administration buildings.

C. Equipment, Materials and Supplies

(1) Allowable costs include the costs of:

(a) A reasonable inventory of chemicals and supplies necessary to initiate plant operations and laboratory items necessary to conduct tests required for plant operation.

(b) Necessary and reasonable safety equipment, provided the equipment meets applicable federal, state, local or industry safety requirements.

(c) Constructing or installing water flow metering devices for the primary purpose of monitoring and/or billing inter-municipal or other flows or serving and billing individual residential, commercial or industrial users.

(d) Backflow preventers.

(e) Computers, display monitors, and computer software which are designed into the control system for the daily operation of the water system, used for the operational control and analysis of the water system, or specifically designed for the operation and maintenance (including the cost of developing unique operating programs for the specific loan funded project) of the treatment works.

(f) Specialized mobile equipment for the operation of the water system, or for the maintenance of equipment. These items include, but are not limited to:

(i) Portable stand-by generators.

(ii) Portable emergency pumps to provide "pump-around" capability in the event of booster station failure or pipeline breaks.

(2) Unallowable costs include the costs of:

(a) Vehicles for the transportation of the loan recipient's employees, including buses, trucks, cars, motorcycles, ATVs, golf carts, bicycles, etc.

(b) Items of routine "programmed" maintenance such as filters, couplings, hoses, belts, etc.

(d) Shop equipment installed at the treatment works or elsewhere.

(e) Distribution system maintenance equipment.

(f) Replacement parts.

(g) Furnishings, office equipment, and maintenance equipment, including chairs, desks, file cabinets, typewriters, coffee tables, telephones, office supplies, calculators, copiers, book cases, shelves and lamps, etc.

(h) Ordinary site and building maintenance equipment such as lawn mowers, rakes, shovels, brooms, picks, hedge trimmers, and other such equipment.

(i) Hand tools such as screw drivers, pliers, socket wrenches, electric drills or saws, etc.

(j) Computers for non-operational purposes, such as for the scheduling of equipment maintenance and replacement and for accounting and billing services.

D. Change Orders

(1) Change orders are allowable provided the costs are:

(a) Necessary and reasonable.

(b) Within the scope of the project.

d) Not caused by the loan recipient's vicarious liability for the improper actions of others.

(e) In conformance with the DWSIRLF regulations.

(2) Provided the above requirements are met, the following are examples of allowable change orders.

If the defect is realized after substantial construction work has been completed, and therefore requires rework, delay, or additional work beyond that which would have been required by defect-free drawings, the cost would still be allowable, but the additional cost of rework or delay is unallowable.

The additional cost is measured as the difference between the cost which would have been included in the bid based on defect free drawings and the actual cost of the change order.

(b) Equitable adjustments for differing site conditions.

E. Professional Services

The term professional services refers to engineering, legal, administrative, and similar services.

(1) Allowable costs include the costs of/for:

(a) Planning, application, and design. These costs include all engineering and other costs that are incurred in planning and designing the project, as well as applying for the loan. These costs include but are not necessarily limited to the following services, as determined allowable in Appendix B of these regulations.

(i) Preparing the Part 1 and 2 Loan Application.

(ii) Public notification and public hearings.

(iii) Preparing the plans, specifications, and contract documents.

(iv) Value engineering.

(v) Preparing the draft user charge ordinance/corporate resolution and draft user charge system.

(vi) Preparing interlocal agreements necessary for the project.

(vii) Surveys and all other work needed to obtain clearance or permits from all intergovernmental review agencies.

(viii) Preparing the loan application, preparing applications for permits required by federal, state or local regulations or procedures.

(ix) Compliance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act as implemented by federal regulation 49CFR Part 24.101(a)(1) and (2), as applicable.

(b) Construction Phase Professional Services

(i) Services incurred during the advertisement, award and construction of a project to insure compliance with state purchasing laws and to insure that the project is built in conformance with the design plans and specifications. These services are primarily engineering and construction management services provided during the advertisement, award and building of the project, including observation services, materials testing (e.g., concrete strength, soil compaction, etc.) required by the specifications, inspecting and expediting the delivery of equipment and material purchased directly by the loan recipient, reviewing shop drawings and full scale record drawings, preparing change orders, payment processing, etc.

(ii) Legal, engineering, and other services incurred by the loan recipient in deciding procurement protests and defending their decisions in protest appeals under Appendix L are allowable regardless of the outcome of the protest, provided there was not an attempt by the loan recipient to violate or circumvent state purchase laws.

(iii) Development of an operation and maintenance manual.

(iv) Start-up services for onsite training of operating personnel in operation and control of specific treatment processes, laboratory procedures, and maintenance and records management, provided these costs are incurred prior to the end of the 30 day period established in Rule 3.7.7 (11) of these regulations.

(v) Professional liability or other insurance premiums for a provider of professional services only for insurance which the provider maintains in connection with the general conduct of its business. The types and extent of coverage must be in accordance with sound business practice, and the rates and premiums must be reasonable under the circumstances but only as part of an indirect cost agreement.

(vi) Administrative services associated with the construction project and administering the DWSIRLF loan.

(vii) Services, other than engineering services during construction/repairs, such as railway or highway flagmen or utility or highway inspectors, required during the building of the project, provided that

(1) The entity responsible for the affected railway, highway, or utility requires such services for all parties conducting similar types of work, regardless of the source of construction funding for the project, or the services are required by law.

(2) The cost of such services has not been included in the construction contractor's bid price.

(viii) Engineering or other services necessary to correct defects in the project planning documents, design drawings and specifications or other documents to the extent that such costs would have been allowable for preparing defect free documents.

(2) Unallowable costs include the costs of:

(a) Public liaison services.

(b) Local travel (i.e., commuting expenses) between living quarters and the construction site for persons working at the site.

F. Claims

(1) Allowable costs, provided the costs are properly documented, incurred and requested prior to the end of the 30 day period established Rule 3.7.7 (11) of these regulations, include:

(a) Change orders to the construction contract as a result of settlements, arbitration awards, or court judgements, to the extent that they would have been allowable had there not been a claim.

(b) The costs of assessing the merits of, negotiating, or defending a claim against the loan recipient are allowable, regardless of the outcome, provided that the matter under dispute is not the result of fraudulent or illegal actions or mismanagement on the part of the loan recipient.

(c) Alterations in engineering, legal, contracts etc. as a result of settlements, arbitration awards, or court judgements are allowable to the same extent that they would have been allowable had there not been a claim.

(2) Unallowable costs include the costs of:

(a) Claims arising from work outside the scope of the loan.

(b) Claims resulting from fraudulent or illegal activities.

(d) Claims resulting from the loan recipient's vicarious liability for the improper action of others.

(e) Settlements, arbitration awards or court judgements over the allowable costs as established in these regulations.

G. Mitigation

(1) Allowable costs include the costs of:

(a) Mitigation of only direct adverse physical impacts resulting from construction of the project.

(b) Reasonable site screening necessary to support project planning, environmental review, or evaluation of potential impacts to adjacent properties.

(c) Groundwater monitoring facilities necessary to determine the possibility of groundwater deterioration, depletion or modification resulting from construction of the project. The extent of the allowable costs for groundwater monitoring facilities is decided on a case-by-case basis and

depends on the size and complexity of the project and the present and potential future use of the groundwater.

(2) Unallowable costs include the costs of:

(a) Solutions to aesthetic problems, including design details which require expensive building techniques and architectural features and hardware, that are unreasonable or substantially higher in cost than approvable alternatives and that neither enhance the function or appearance of the treatment works nor reflect regional architectural tradition.

(b) Land acquired for the mitigation of adverse environmental effects identified pursuant to an environmental review.

H. Real Property

(1) Allowable costs include the costs of:

(a) Land acquired in fee simple title or by easement, from a willing seller, for:

(i) Water supply and/or storage purposes;

(ii) A consolidation project; and

(iii) Protection of the source water of the system from contamination.

(b) Preparation of the treatment works site before, during and, to the extent agreed on in the loan agreement, after building. These include the cost of:

(i) Demolition of existing structures on the treatment works site (including rights-of-way) if building cannot be undertaken without such demolition. Demolition of existing structures on the treatment works site (including rights-of-way), when not required for building the project, will be considered to be an allowable cost only if the existing structures constitute a real and present hazard to safety, public health, or water quality and when the hazard can best be abated by the removal of the existing structures.

(ii) Removal, relocation or replacement of utilities, provided the loan recipient is legally obligated to pay for such as a result of the DWSIRLF project under state or local law.

(iii) Restoration of streets and rights-of-way to their original condition. The need for such restoration must result directly from the construction of the DWSIRLF project and is generally limited to repaving the width of trench.

(2) Unallowable costs include the costs of:

(a) Any amount paid by the loan recipient for eligible land in excess of the appraised value or the loan recipient's record of negotiation.

An amount higher than the appraised value may be found allowable if the loan recipient provides sufficient written documentation to the Department and receives allowability approval prior to the actual acquisition.

(b) Removal, relocation or replacement of utilities located on land by privilege, such as a franchise, unless the loan recipient is required to pay such costs under state or local law.

(c) Land acquired in fee simple title or by easements for land other than that described under H.(1)(a) above, such as easements for the purpose of water distribution system expansion or improvement.

(d) Acquiring all or part of an existing publicly or privately owned drinking water treatment works.

(e) The demolition of an existing structure for the convenience of the owner as a means of increasing property value or property use.

I. Miscellaneous Costs

(1) Allowable costs include the costs of:

(a) Equipment rental and material costs necessary for the construction project.

(b) Meeting specific legal requirements directly related to the project unless otherwise specified in these regulations.

(c) Royalties associated with the procurement of the right to use, or the rights in, a patented product, apparatus, or process, provided that they are based on a published fee schedule or on reasonable fees charged to other users under similar conditions.

(d) Training workshops/seminars for loan recipient employees that are necessary to provide instruction in operational, administrative, fiscal or contracting procedures required to complete the construction of the project. Attendance at such training workshops or seminars must occur after loan offer but before the end of the loan agreement budget period.

(e) A reasonable project sign.

(2) Unallowable costs include the costs of: (a) Salaries and benefits for the loan recipient’s employees. (b) Ordinary operating expenses of the loan recipient, including salaries and expenses of elected and appointed officials and preparation of routine financial reports and studies. (c) Administrative, engineering and legal activities associated with the creation of special departments, agencies, commissions, regions, districts, associations, or other entities. (d) Approval, preparation, issuance and sale of bonds or other forms of indebtedness required to finance any portion of the project and the interest on them. (e) Personal injury compensation or damages arising out of the project. (f) Fines and penalties due to violations of or failure to comply with federal, state or local laws, regulations or procedures, and related legal expenses. (g) Operation and maintenance of the water system, which include but are not limited to, labor, utilities, chemicals, materials and supplies, monitoring, testing, equipment replacement, periodic payment of royalties for the right to operate under a patent, etc. (h) Lease payments. (i) Travel, by the loan recipient, unless included under an indirect cost agreement, and except as allowed under I.(1)(d) above. J. Project Income: (1) Bid bond forfeitures will have no effect on the determination of allowable and unallowable costs. The loan recipient must make the determination of whether or not a bid bond will be forfeited. (2) The amount of liquidated damages collected will have no effect on the determination of allowable and unallowable costs, except as described by Rule 3.7.5.4 of these regulations. (3) Interest income on DWSIRLF payments to loan recipients will have no effect on the determination of allowable and unallowable costs. (4) The loan recipient must receive all income generated from use of the project facilities.

APPENDIX B Recommended Allowances for Project Planning, Design and Construction Phase Professional Services A. Recommended Allowances for Project Planning and Design. The recommended allowance for facilities project and design will be determined using Table 1 of this Appendix. This table is not intended to be used to determine the consulting engineer's actual compensation for facilities planning and design services. Compensation for these services should be based upon the nature, scope, and complexity of the services required for the project. Table 1 includes a recommended range for engineering costs during project planning and design, which the loan applicant/recipient should consider while evaluating the engineer's proposal. If the engineer's proposal exceeds the normal range the loan applicant/recipient should consider requiring the engineer to justify why the project is more difficult than normal. The actual compensation justified for a particular project may be more or less than the suggested range of the allowance for these services shown in Table 1. If the consulting engineer and loan applicant/recipient determine that the maximum recommended allowance calculated using Table 1 of this Appendix does not adequately reflect the nature, scope, and complexity of the services required for the project, the consulting engineer may submit a detailed cost proposal, in such format as required by the Department, justifying a compensation amount greater than Table 1 recommends. If, in the Department's opinion the detailed cost proposal justifies such, the Department will approve an allowance for planning and design greater than those recommended in Table 1. The decision of the Department in this matter will be final. Projects for which the loan applicant/recipient must acquire easements or real property in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act may receive an additional 1% above the recommended maximum percentages shown in Table 1 for planning and design allowances. Also, projects for which a value engineering study is conducted may receive an additional 3% above the recommended maximum percentages shown in Table 1 for the planning and design allowance. B. Recommended Allowance for Construction Phase Professional Services. The Allowance for Construction Phase Professional Services includes costs for engineering services during bidding, construction, and post-construction phases, observation during construction, loan administration (payment processing, MBE/WBE DBE compliance, etc.), and other services (i.e. legal, audit, etc.) that are associated with the construction of the DWSIRLF project. The recommended allowance for construction phase professional services will be determined using Table 2 of this Appendix. This table is not intended to be used to determine the actual compensation for construction phase professional services. Compensation for these professional services should be based upon the nature, scope, and complexity of the services required for the project.

Table 2 separates the Total Recommended Allowance for Construction Phase Professional Services shown in the far right hand column into three types of services: engineering, loan administration, and other services and provides suggested ranges for each of these services depending upon the complexity of the project. The loan applicant/recipient should consider these recommended ranges when evaluating proposals for these services. If the proposals exceed the normal ranges for any of these services the loan applicant/recipient should consider requiring the professional to justify why the project is more difficult than normal. The actual compensation justified for a particular project may be more or less than the suggested range of the allowance for these services shown in Table 2. If the consulting engineer and loan applicant/recipient determine that the maximum recommended allowance calculated using Table 2 of this Appendix does not adequately reflect the nature, scope, and complexity of the services required for the project, the consulting engineer may submit a detailed cost proposal, in such format as required by the Department, justifying a compensation amount greater than Table 2 recommends. If in the Department's opinion the detailed cost proposal justifies such, the Department will approve an allowance for construction phase professional services greater than those recommended in Table 2. The decision of the Department in this matter will be final. Although Table 2 shows engineering and loan administration as separate costs, the loan applicant/recipient is not required by these regulations to contract for these services separately. The loan applicant/recipient may wish to have the consulting engineer provide both scopes of services, and under such an arrangement, the engineer's contract should not exceed the total of the suggested ranges for both services. C. General Guidance for Use of the Allowance Tables in this Appendix. The estimated and final allowances will be determined in accordance with this Appendix. All allowance percentages will be calculated to four decimal places using linear interpolation. The allowance amount is computed by applying the resulting total allowance percentage to the initial allowable building cost, which is the initial award amount of all prime contracts for construction, equipment, supplies, and testing of the project. The estimated allowances are to be based on the estimate of the initial allowable building cost from the Part 1 Loan Application. The final allowances will be determined one time only for each project, based on the initial allowable as-bid cost, and will not be adjusted for subsequent cost increases or decreases. Following execution of the loan agreement, the loan recipient may request and receive payment for the planning and design allowance and the allowance for construction phase professional services, in accordance with the procedures described in Rule 3.9.1.5 (1), (3) and (4) of these regulations. Advances of allowances will not be provided. D. Additional Planning and Design Phase Services Additional planning and design phase services may be eligible for DWSIRLF loan participation when such services are necessary for completion of the project but are not included within the recommended allowance percentages established in Table 1 of this Appendix.

These services are project-specific and will vary depending on project complexity, site conditions, regulatory requirements, and other factors. When approved by the Department, the cost of these services may be funded in addition to the calculated planning and design allowance. Examples of additional planning and design phase services may include, but are not limited to: • Geotechnical investigations and testing • Environmental studies, permitting, and coordination (e.g., wetlands, cultural resources, stormwater, USACE permits) • Easement or right-of-way surveys and acquisition support services • Hydraulic modeling or advanced system analysis beyond standard design requirements • Pilot testing or treatability studies • Other specialized engineering services required due to unique project conditions Eligibility and Documentation Requirements To be considered allowable, additional planning and design phase services must: 1. Be necessary for the planning, design, or permitting of the project and not duplicative of services included in the base allowance; 2. Be clearly identified and described in the Loan Application (Part 2) or subsequent submittals; 3. Include a detailed scope of work and cost breakdown; and 4. Be supported by documentation demonstrating reasonableness of cost. Documentation of reasonableness may include, as applicable: • Detailed cost proposals with labor categories, hours, and rates; • Comparison to similar projects or historical costs; • Independent cost estimates; or • Justification of project-specific conditions requiring the additional services. The Department will review all proposed additional services and determine eligibility and allowability on a case-by-case basis. Costs determined to be unreasonable, unnecessary, or insufficiently justified may be reduced or deemed unallowable.

Table 1

Recommended Allowances for Project Planning and Design

Allowable Building Cost Allowances as a Percentage of Building Cost Based Upon the Difficulty of the Project

Normal to Difficult $50,000 or less 11.7500% to 13.2000% $100,000 10.7500% to 12.2000% $150,000 10.0700% to 11.2519% $200,000 9.4000% to 10.5000% $300,000 8.7000% to 9.8042% $400,000 8.3000% to 9.6312% $500,000 8.0000% to 9.4417% $600,000 7.8000% to 9.1467% $700,000 7.7000% to 9.0297% $800,000 7.5000% to 8.8089% $900,000 7.4000% to 8.7472% $1,000,000 7.2500% to 8.5673% $1,100,000 7.1030% to 8.3911% $1,200,000 6.9600% to 8.2185% $1,300,000 6.8200% to 8.0495% $1,400,000 6.6800% to 7.8840% $1,500,000 or greater 6.5400% to 7.7219%

Table 2

Recommended Allowances for Construction Phase Professional Services

Allowances as a Percentage of Building Cost Based Upon the Difficulty of the Project

Estimated Building Cost Engineering Services Normal to Difficult Loan Administration Normal to Difficult Other Services Normal to Difficult Total Allowance for Professional Services Normal to Difficult

$50,000 or less 6.4400% to 11.7250% 2.0700% to 3.7688% 0.6900% to 1.2563% 9.2000% to 16.7500% $100,000 5.7400% to 11.725% 1.8450% to 3.7688% 0.6150% to 1.2563% 8.2000% to 16.7500% $150,000 5.2850% to 11.725% 1.6988% to 3.7688% 0.5663% to 1.2563% 7.5500% to 16.7500% $200,000 4.8300% to 9.9400% 1.5525% to 3.1950% 0.5175% to 1.0650% 6.9000% to 14.2000% $300,000 4.4100% to 8.1690% 1.4175% to 2.6258% 0.4725% to 0.8753% 6.3000% to 11.6700% $400,000 4.0600% to 7.2800% 1.3050% to 2.3400% 0.4350% to 0.7800% 5.8000% to 10.4000% $500,000 3.8150% to 6.5800% 1.2263% to 2.1150% 0.4088% to 0.7050% 5.4500% to 09.4000% $600,000 3.5700% to 5.9500% 1.1475% to 1.9125% 0.3825% to 0.6375% 5.1000% to 08.5000% $700,000 3.4300% to 5.4600% 1.1025% to 1.7550% 0.3675% to 0.5850% 4.9000% to 07.8000% $800,000 3.2900% to 5.0400% 1.0575% to 1.6200% 0.3525% to 0.5400% 4.7000% to 07.2000% $900,000 3.2200% to 4.6690% 1.0350% to 1.5008% 0.3450% to 0.5003% 4.6000% to 06.6700% $1,000,000 3.1500% to 4.4800% 1.0125% to 1.4400% 0.3375% to 0.4800% 4.5000% to 06.4000% $1,100,000 3.0815% to 4.2986% 0.9905% to 1.3817% 0.3302% to 0.4606% 4.4022% to 06.1409%

Table 2 (Continued)

Recommended Allowances for Construction Phase Professional Services

Allowances as a Percentage of Building Cost Based Upon the Difficulty of the Project

$1,200,000 3.0146% to 4.1246% 0.9690% to 1.3258% 0.3230% to 0.4419% 4.3066% to 5.8923% $1,300,000 2.9492% to 3.9577% 0.9479% to 1.2721% 0.3160% to 0.4240% 4.2131% to 5.6538% $1,400,000 2.8852% to 3.7975% 0.9274% to 1.2206% 0.3091% to 0.4069% 4.1217% to 5.4250% $1,500,000 or greater 2.8226% to 3.6438% 0.9073% to 1.1712% 0.3024% to 0.3904% 4.0323% to 5.2054%

APPENDIX C

Environmental Review Process

A. Project Planning Documentation Description of Environmental Impacts

Project planning documentation submitted in accordance with these regulations must contain sufficient information to allow the Department to evaluate the environmental impacts of the proposed project and any corresponding mitigative measures, including but not necessarily limited to the following: (1) Surface and groundwater resources; (2) Archaeological/historical/cultural resources; (3) Vegetative/wildlife resources; (4) Wetlands and navigable waterways; (5) Floodplains; (6) Prime or important farmlands; (7) Coastal zones; (8) Wild and scenic rivers; and (9) Air Quality.

B. Environmental Review.

The Department may issue a State Categorical Exclusion (CE) for projects that do not individually or cumulatively have a significant effect on the human environment.

Projects eligible for a State Categorical Exclusion may include, but are not limited to: (a) Minor rehabilitation of existing facilities; (b) Functional replacement of equipment or infrastructure; (c) Ancillary facilities adjacent or appurtenant to existing structures; (d) Onsite treatment systems; (e) Actions conducted entirely within an existing permanent facility; (f) Repair, maintenance, permitting, or minor alterations to existing facilities; (g) Replacement or reconstruction of existing utility systems and/or facilities involving no expansion of capacity; (h) Small hydropower projects at existing facilities; (i) Planning and design only, inventories, potholing, water meters, SCADA systems, rehabilitation of wells, tanks, and treatment plants, and replacement of water lines with the same size and capacity. A State Categorical Exclusion shall be issued only when the Department determines that: (j) The project will not have a significant adverse effect on the environment, or any such effects have been resolved to the satisfaction of the Department; (k) The project will not adversely affect cultural resources, habitats of endangered or threatened species, or environmentally important natural resource areas, or any such effects have been resolved to the satisfaction of the Department; and (l) The project is not expected to cause significant public controversy.

Projects approved under a State Categorical Exclusion are not subject to Intergovernmental Review (IGR) correspondence when the Department determines that the project does not involve impacts to resources protected under applicable cross-cutting federal authorities.

The Department may also issue a State Categorical Exclusion for projects that have undergone coordination or review with appropriate agencies and for which all environmental concerns have been resolved, and no significant impacts remain.

A State Categorical Exclusion shall not be issued for projects that:

(a) Involve impacts subject to federal cross-cutting authorities, unless such impacts have been evaluated and resolved to the satisfaction of the Department; (b) Involve expansion of system capacity or service area, or construction of new facilities beyond the existing footprint, excluding rehabilitation, repair, or replacement of existing facilities that do not increase capacity; (c) Are located in or may affect floodplains, wetlands, important farmland, aquifer recharge zones, or other environmentally important natural resource areas, unless all impacts have been evaluated and resolved to the satisfaction of the Department; (d) Are not cost-effective or may cause significant public controversy; or (e) May negatively impact cultural resources or endangered or threatened species and their critical habitats, unless all impacts have been resolved to the satisfaction of the Department.

The Department may revoke a State Categorical Exclusion at any time if significant adverse information becomes available.

(2) Finding of No Significant Impact (FONSI) on the Environment

The Department will issue a Finding Of No Significant Impact (FONSI) and an Environmental Assessment (EA) when, based upon review of the environmental information submitted for the project... it appears that a project will not have a significant adverse environmental impact, but does not qualify for a CE. The environmental assessment EA will describe the existing environment, the purpose and need for the project, the project to be built, the alternatives analyzed including no action, the references consulted, the expected environmental impacts of the project, the actions necessary to minimize expected adverse impacts, and the cost to build and operate the project.

(3) Amendment to a Finding of No Significant Impact FONSI to the Environment

FONSI amendments are occasionally needed to describe changes to proposed facilities that have already been described in a FONSI. The environmental assessment EA that accompanies the amendment will describe the changes and

any expected new impacts on the environment due to the changes. The original environmental assessment EA will be reissued with the environmental assessment EA amendment in those cases where it is deemed to be necessary to assure clarity.

(4) Environmental Impact Statement (EIS)

If the Department determines that an environmental impact statement (EIS) is needed, the document will be prepared in general conformance with EPA Regulation 40 CFR Part 6, or as deemed appropriate by the Department.

(5) Reaffirmation of an Environmental Action

If five years will pass between the issuance of a CE, FONSI, Amendment to a FONSI, or an EIS and the offer of DWSIRLF funding, the environmental impact of the project will be re-evaluated. However, a re-evaluation may not be required when the most recent Amendment to a FONSI or EIS is less than five years old. If there have been no significant changes, the Department will issue a reaffirmation of the environmental action. If the original environmental action cannot be reaffirmed, the Department will issue a new environmental action, as appropriate.

(6) No Further Action

The Department will issue a CE, FONSI, or EIS on all DWSIRLF projects. If there are significant changes in the project after the issuance of the environmental documents, those changes will be described in an Amendment to a FONSI. Some changes are minor, however, and the Department may determine that a separate Amendment need not be issued. Such minor changes may include but are not limited to:

(a) Adding work that would otherwise qualify for a categorical exclusion.

(b) Changes in the size of pump stations, storage facilities, wells, distribution lines, etc.

(d) Minor rerouting of distribution lines when the new route i) will be mostly on public property and ii) will not adversely affect cultural resources, habitats of endangered or threatened species, or environmentally important natural resource areas. All affected property owners must be notified by the loan recipient.

(e) Changes in the cost of the project, the average monthly user charge, or the method of financing.

C. Issuance of the Environmental Action.

Copies of all environmental actions will be issued to the appropriate intergovernmental review agencies listed in Appendix K; other agencies must be contacted as needed. Copies must also be sent to any individuals or groups requesting them. All environmental actions will also be published in an appropriate local newspaper.

All environmental actions will provide for at least a 30 day period from the day of issuance to receive comments from agencies, groups, or individuals. All such comments will be evaluated by the Department before finalizing any environmental action.

Immediately after issuing an environmental action and before the comment period has expired, the Department may conditionally determine that project planning documentation is sufficient to proceed, and a loan agreement may be conditionally offered. In such a case, no funds will be transferred to the loan recipient, and authority to award construction contracts will not be given until the comment period has expired and all substantial adverse comments have been addressed.

D. Resolution of Adverse Comments.

Adverse comments received as a result of the environmental review process will be addressed in the following manner:

(1) The Department will first require the loan recipient to resolve the adverse comments, subject to Department approval.

(2) If the loan recipient is unable to resolve the adverse comments and secure approval, the Department will render a decision concerning the adverse comments.

(3) Should the loan recipient or the party which originally made the adverse comments desire to appeal the above decision, a request for an informal hearing must be received by the Department within 30 days after the date of such decision. Upon receipt of such a request, an informal hearing will be held with staff members, as designated by the Board Chairman, and the affected parties. The Board Chairman, or his designee, will render a decision on the appeal as a result of the informal hearing.

(4) Should the loan recipient or the party which originally made the adverse comments desire to appeal the above informal hearing decision, a request for a formal hearing by the Board must be received by the Department within 30 days after the date of such decision. Upon receipt of such a request, the Local Governments and Rural Water Systems Improvements Board will hold a formal hearing to consider the matter and will render a decision.

(5) Appeals of the above formal hearing decision may be made to the Chancery Court in accordance with state law.

APPENDIX D

Procurement Requirements for DWSIRLF Loan Recipients

In the procurement of all construction, equipment, materials, supplies, professional services and non-professional services and all other costs related to the DWSIRLF project, all loan recipients must comply with state purchasing laws as they apply to local governments.

All loan recipients must submit a procurement certification, as required by the Department, indicating that all of the above referenced requirements have been met. Should it be determined that any of the above procurement requirements are violated, the Department may determine that the related costs are unallowable and may require repayment of all DWSIRLF Loan funds paid for such costs, in accordance with Rule 3.9.1.6 of these regulations.

APPENDIX E

DWSIRLF Disadvantaged Business Enterprise (DBE) Requirements (formerly referred to as Minority and Women's Business Enterprise) (MBE/WBE) Requirements

The Department will establish "fair share" objectives for participation by minority and women's disadvantaged business enterprises (DBE) in DWSIRLF funded projects. The loan recipient must undertake the following steps in the procurement of non-professional services, equipment, supplies, and construction:

(1) Include qualified minority and women's disadvantaged businesses on solicitation lists.

(2) Assure that minority and women's disadvantaged businesses are solicited whenever they are potential sources.

(3) Divide total requirements, when economically feasible, into small tasks or quantities to permit maximum participation by disadvantaged minority and women's businesses.

(4) Establish delivery schedules when practical which will encourage participation by disadvantaged minority and women's businesses.

(5) Use the services and assistance of the Office of Minority Business Enterprise of the Mississippi Department of Economic and Community Development and the Minority Business Development Centers of the U. S. Department of Commerce, as appropriate.

(6) Require the contractor to take the steps listed above, if the contractor awards subagreements.

The loan recipient, registered engineer, and prime contractor(s) must also follow MBE/WBE DBE guidance documents provided by the Department, unless otherwise approved by the Department.

DBE’s Minority and women's business enterprises must be certified by the Mississippi Office of Minority Business Enterprises, the Mississippi Department of Transportation, or other agencies recognized by these Departments.

APPENDIX F

Debarment and Suspension

The Board is prohibited from entering into loan agreements with loan applicants that have been debarred or suspended by any state or federal agency.

Loan recipients are responsible for ensuring that prime contractors utilized on the project are not debarred or suspended. Likewise, prime contractors are responsible for ensuring that subcontractors utilized on the project are not debarred or suspended.

Anyone may contact the Board concerning the existence of a cause for debarment or suspension. The Board may refer the matter to the State Attorney General or other appropriate office for further investigation. If, after review or investigation, the Board reasonably believes that a cause for debarment exists, the Board may propose debarment or suspension and may initiate procedures similar to, but not necessarily identical to, federal regulation 40 CFR Part 32: Debarment and Suspension Under EPA Assistance Programs.

APPENDIX G

DWSIRLF Disputes Procedures

Only DWSIRLF loan recipients may submit a notice of dispute (disagreement) with a decision made by the Department, with the exception of decisions regarding Appendix C, Environmental Review Process, of these regulations. The following procedures will be used to resolve disputes between the loan recipient and the Department.

(1) The loan recipient must submit a written notice of dispute with a Department decision, including a summary of the dispute and reasons the loan recipient believes the Department decision should be reversed. (2) The Department will then render a written decision on the dispute and will include reasons for the decision. (3) Should the loan recipient desire to appeal the second Department decision, a request for an informal hearing must be received by the Department within 30 days after the date of that decision. Upon receipt of such a request, an informal hearing will be held with staff members, as designated by the Board Chairman, and the affected parties. The Board Chairman, or his designee, will render a decision on the appeal as a result of the informal hearing. (4) Should the loan recipient desire to appeal the above informal hearing decision, a request for a formal hearing before the Local Governments and Rural Water Systems Improvements Board must be received by the Department within 30 days after the date of such decision. Upon receipt of such a request, the Board will hold a formal hearing to consider the matter and will render a decision. (5) Appeals of the above formal hearing decision may be made to the Chancery Court in accordance with state law.

APPENDIX H

Cross-Cutting Federal Laws and Authorities

A number of other federal laws and authorities also apply to projects and activities funded by the DWSIRLF. These apply by virtue of their own authority, are referred to as cross-cutting federal laws and authorities, and are listed below:

Environmental:

Archeological and Historical Preservation Act of 1974, PL 93-291

Clean Air Act, 42 U.S.C. 7506(c)

Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq.

Coastal Zone Management Act of 1972, PL 92-583, as amended

Endangered Species Act 16 U.S.C. 1531, et seq.

Executive Order 11593, Protection and Enhancement of the Cultural Environment

Executive Order 11988, Floodplain Management

Executive Order 11990, Protection of Wetlands

Farmland Protection Policy Act, 7 U.S.C. 4201 et seq.

Fish and Wildlife Coordination Act, PL 85-624, as amended

National Environmental Policies Act of 1969, 42 U.S.C. 4321 et seq.

National Historic Preservation Act of 1966, PL 89-665, as amended

Safe Drinking Water Act, 42 U.S.C. 300 et seq., Public Law 93-523, as amended

Wild and Scenic Rivers Act, PL 90-542, as amended

Historic Sites Act of 1935, PL 74-292

"National Interim Primary Drinking Water Regulations", Environmental Protection Agency, Water Programs, Federal Register 40, No. 246, December 24, 1975, 59566 - 59574.

"Secondary Maximum Contaminant Levels", Environmental Protection Agency, Water Programs, Federal Register 42, March 31,1977, 17144 - 17146.

Economic:

Demonstration Cities and Metropolitan Development Act of 1966, PL 89-754, as amended

Social Legislation:

Age Discrimination Act, PL 94-135

Civil Rights Act of 1964, PL 88-352

Executive Order 11246, Equal Employment Opportunity

Executive Orders 11625 and 12138, Women's and Minority Business Enterprise

Rehabilitation Act of 1973, PL 93-112 (including Executive Orders 11914 and 11250)

Executive Order 12898, Environmental Justice

Miscellaneous Authority:

Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended, PL 91-646, as implemented by Federal Regulation 49 CFR Part 24.101(a)(1) and (2) as applicable.

Executive Order 12549 - Debarment and Suspension

Tax Reform Act of 1986

APPENDIX I

Waste, Fraud and Abuse

The loan recipient is responsible for preventing, detecting, and prosecuting waste, fraud, abuse, and all other corrupt practices which occur in relation to the DWSIRLF loan project.

If the loan recipient becomes aware of allegations, evidence, or the appearance of corrupt practices, the loan recipient must:

(1) Immediately inform the Department in writing.

(2) Promptly pursue available state and local legal, administrative, and contractual remedies.

The Department may disallow costs under the loan agreement where it is determined that such costs are related to waste, fraud, abuse or other corrupt practices. The Department may also require repayment of DWSIRLF loan funds paid for such costs in accordance with Rule 3.9.1.6 of these regulations.

APPENDIX J

DWSIRLF Loan Recipient Accounting and Auditing Requirements

All DWSIRLF loan recipients must maintain project accounts in accordance with generally accepted government accounting standards, as defined by the Guidelines of the Municipal Accounting and Audit Manual, as prescribed by the State Auditor's Office. Charges to the project account must be properly supported, related to eligible construction costs, and documented by appropriate records. These project accounts must be maintained as separate accounts.

APPENDIX K

Intergovernmental Review Process

During preparation of project planning documentation, the loan applicant shall consult the appropriate intergovernmental review agencies regarding potential impacts to archaeological, cultural, natural, and other protected resources. The applicant is responsible for submitting project information to the appropriate intergovernmental review agencies and obtaining written comments, determinations, permits, approvals, or documentation indicating that such actions are not required. A. Intergovernmental Review Agencies:

(1) Mississippi Department of Archives and History (for archaeological/cultural review)

(2) Mississippi Natural Heritage Program (for vegetative/wildlife review)

(3) U.S. Army Corps of Engineers, Regulatory Functions Branch [for Section 404 (wetlands), Section 10 (navigable waterways), and floodplain impact review]

(4) Mississippi Department of Marine Resources (Jackson, Harrison, and Hancock County Projects Only; for shellfish review and Mississippi Coastal Program review)

(5) U. S. Fish and Wildlife Service (Jackson, Harrison, and Hancock County projects only; for Coastal Barriers Resources Act review)

(6) U. S. Forest Service (projects located in a designated Wild and Scenic River Basin only; for Wild and Scenic Rivers review)

B. Project Planning and Intergovernmental Review Coordination

During preparation of the project planning documentation, the appropriate intergovernmental review agencies should be consulted about the proposed project area concerning the existence of any known or possible archaeological/cultural sites, endangered vegetation/wildlife, wetlands, floodplain impacts, wild/scenic river impacts, shellfish/coastal program impacts, or coastal barriers resources impact. If feasible, the project should avoid negative impacts on areas for which a concern has been expressed by an intergovernmental review agency. If it is not feasible to avoid negative impacts on these areas, the appropriate intergovernmental review agency should be consulted concerning the probability of obtaining clearance to construct the selected plan. Where an agency expresses substantial concern that clearance of the selected plan may not be obtained, appropriate modification, mitigation, and/or other sites must be pursued in coordination with the Department and the appropriate agency prior to submission of the project planning documentation. This effort should avoid completion of a project planning documentation which may not later receive intergovernmental review clearance.

However, the loan recipient should recognize that subsequent surveys, applications, or other information may result in further intergovernmental review agency concerns which must be addressed prior to clearance.

Project planning documentation, or a project information package sufficient to describe the proposed construction and potential impacts, must be submitted to the appropriate intergovernmental review agencies with a request for written comments and a determination on the need for archaeological/cultural resource surveys, vegetative/wildlife surveys, Section 404/Section 10 permits, U. S. Forest Service permits, Mississippi Department of Marine Resources permits, and U.S. Fish and Wildlife approval or other actions. The project planning documentation must include a map showing the proposed construction and the land use (i. e. residential, commercial, industrial, farmland, pasture, wooded, wetlands, or other) in the areas of construction. The Department strongly suggests that photographs of the areas of construction also be included in order to expedite these determinations. The Department must be copied on the transmittal letters (including all attached maps, photographs, etc.) to all intergovernmental review agencies. These agencies should provide written comments and a determination on the need for surveys, permits, or other actions.

All applicable intergovernmental review agency comment letters must be included and addressed in the project file and addressed in the environmental review documentation. C. Loan Application

If the appropriate intergovernmental review agency has determined these actions are necessary, completed archaeological/cultural surveys must be submitted to the Mississippi Department of Archives and History for approval; completed vegetative/wildlife surveys must be submitted to the Mississippi Natural Heritage Program for approval; and completed Section 404/Section 10 permit applications must be submitted to the U.S. Army Corps of Engineers (and the Mississippi Department of Marine Resources for Jackson, Harrison, and Hancock County projects). The Department must be copied on the transmittal letters to the intergovernmental review agencies.

A completed Standard Form 424 (Application For Federal Assistance), a brief narrative describing the project, a map showing the location of all proposed construction, the archaeological/cultural and vegetative/wildlife survey approval letters, and copies of the issued Section 404/Section 10 Permits and Mississippi Department of Marine Resources Permits (or letters stating that surveys or permits are not required) must be submitted to the Department, the Mississippi Department of Finance & Administration, Office of Policy Development and New Initiatives, and the local Planning and Development District. The Office of Policy and New Initiatives will solicit comments from agencies and other interested parties and will provide the applicant with a clearance form, as appropriate.

The clearance form from the Office of Policy Development and New Initiatives, along with any comments received, must be submitted to the Department with the loan application.

APPENDIX L

DWSIRLF Procurement Protest Procedures

(1) Prior to advertisement for bids, the loan recipient must establish its own procedures for prompt consideration of initial protests concerning solicitations or contract awards. A "protest" is a written complaint concerning the loan recipient's solicitation or award of a contract. The protest must be filed with the loan recipient by a party with a direct financial interest adversely affected by a loan recipient's procurement action and must be filed in accordance with and within the time frame established by the loan recipient's protest procedures.

(2) Any party who transmits any document concerning the protest during the course of a protest and protest resolution must simultaneously furnish all other affected parties and the Department with a copy of all documents in the transmittal.

APPENDIX M

Related State Laws and Regulations

The loan recipient must comply with the following related state laws and regulations during the planning, design, construction, and operation of the project. The listing below does not relieve the loan recipient from the responsibility of compliance with all applicable laws and regulations, whether listed or not.

"Mississippi Safe Drinking Water Law of 1976", Section 41-26-1 through 41-26- 21, Mississippi Code of 1972, annotated.
"Primary Drinking Water Regulations", latest edition, Mississippi State Board of Health Environmental Regulations, Division 300 - Water Supply, Part 301, Public Water Systems.
"Municipal and Domestic Water and Wastewater System Operator's Certification Act of 1986", Section 21-27-201 through 21-27-221, Mississippi Code of 1972, annotated.
Regulations Governing the Certification of Municipal and Domestic Water System Operators", latest edition, Mississippi State Board of Health Environmental Regulations, Division 300 - Water Supply, Part 302.

APPENDIX N

National Pollutant Discharge Elimination System (NPDES) and Siting Criteria Regulations

The following requirements apply to those drinking water treatment facilities that have or will construct wastewater treatment facilities necessary to treat waste generated by their drinking water treatment facilities.

The loan recipient must insure that all current regulations of the Commission on Environmental Quality and the Environmental Quality Permit Board are complied with during the planning, design, and construction of any wastewater treatment facilities associated with this DWSIRLF loan project. These regulations include "Wastewater Permit Regulations for National Pollutant Discharge Elimination System (NPDES), Underground and Injection Control (UIC) and State Operating Permits" and "Guidelines for Review of Siting Criteria in Applications for Air and Water Pollution Control Permits". It is the loan recipient's responsibility to insure that the project is in compliance with these regulations and all future amendments. Also, the loan recipient must comply with the following requirements:

(1) All planning documents submitted to the Department for review must clearly indicate that a 150 foot buffer zone between the wastewater treatment facility and the nearest adjoining property line is provided. This must be shown on a plan view of the drinking water treatment facility site. If it is not possible to provide a 150 foot buffer zone, the planning document must indicate that a written waiver from the adjoining property owner(s) will be necessary.

(2) All design plans submitted to the Department for review must clearly display the 150 foot buffer zone for the wastewater treatment facility. If it is not possible to provide a 150 foot buffer zone, a written waiver from the adjoining property owner(s) must also accompany the design plans. When a waiver is necessary, it is strongly suggested that this be obtained prior to substantial work on the treatment facility design.

An NPDES permit application must accompany all design plans for wastewater treatment facilities, if a permit or permit modification is required.

(3) All appraisals, negotiations, purchase agreements, and site certificates must include the required buffer zones, unless a waiver was previously submitted along with the design plans.

APPENDIX O

Contract Claims

The Loan Recipient acknowledges and agrees that the Department is not a party, in any manner whatsoever, to any contract between the DWSIRLF Loan Recipient and the construction contractor(s), the consulting engineer(s), the attorney(s), the equipment supplier(s), the subcontractor(s) or any other parties of any kind whatsoever (hereinafter collectively referred to as “vendor”). The Loan Recipient also acknowledges and agrees that any benefit to vendors contracting with the Loan Recipient arising from, or associated with this contract is strictly incidental and all such vendors are not, and are not intended to be considered as third party beneficiaries under any agreement between the Department and the Loan Recipient.

Upon execution of any contract between the Loan Recipient and any other party in regard to a DWSIRLF funded project, the Department does not assume any authority, duties, responsibility, or liability in contract claims identification, negotiation, resolution, or any other actions regarding contract claims under the contract(s) between the Loan Recipient and any other party.

No actions taken by the Department, either directly or indirectly, in regard to the DWSIRLF loan funded project constitute or establish any determinations, authority, duty, responsibility, or liability under the contract(s) between the Loan Recipient and any other party. The Loan Recipient agrees and warrants that it shall include language, approved by the Department, in its contracts with its vendors requiring the Loan Recipient and its vendors to acknowledge and agree that the Department is not a party, in anyway whatsoever, to the contract between the Loan Recipient and its vendors. Such language shall require the Loan Recipient and vendors to acknowledge and agree that the role of the Department is strictly that of a lender, that the vendors are not and are not intended to be considered a third party beneficiary under any agreement between the Department and the Loan Recipient. Additionally, such language shall also require the Loan Recipient and its vendors to acknowledge and agree that any action taken by the Department in its role as administrator for the revolving loan programs, or in its separate and distinct role as regulator, shall not in any way change or alter its position as that of lender.

The Loan Recipient and the contracting party must resolve all claims and contract disputes by negotiation, arbitration, litigation, or other means as provided in the contract documents and state law, prior to submission of any change order to the Department for review and approval in order to obtain a DWSIRLF loan eligibility/allowability determination.

History

Source: Miss. Code Ann. § 41-3-16(3)(b)

Part 3 Part 3: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations FFY-2014 Intended Use Plan

33 Miss. Admin. Code Pt. 3, R. 600 Rule 600

GPM Tr. Facil/600 GPM Well/Generator

39342

$500,000

$2,748,800

$21,117,900

Monday, January 27, 2014

Page 1 of 2

Category IX: Existing Facilities Upgrade (Meeting P rimary Standards)

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Evergreen Water Association, Inc.

Rehab and Paint Tank/Replace Generator

39043

$199,400

$21,317,300

Grenada, City of

2 500 GPM Wells/500,000 Gallon Elevated Tank

38901

22951

$500,000

$2,202,700

$23,520,000

Wesson, Town of

Rehab Elevated Water Storage Tank

39191

$252,500

$23,772,500

Mendenhall, City of

New 500 GPM Well/250,000 Gal Elevated Tank

39114

$138,750

$925,000

$24,697,500

Little Creek Water Association

10,000 Gal Tank/Upgrade Existing Facilities

39456

$65,728

$262,910

$24,960,410

West Jackson County Utility

Waterline Upgrade & Extension

39566

18000

$5,000,000

$29,960,410

Category X: Fluoride Addition

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Improve Water Association

Installation of 1100 Auto Read Meters

39478

$352,000

$30,312,410

-------------------------------------------------- ------------------------ Funding Line $30,711,610 --------------------------------------------------- ---------------------------------------------------

Category XIII: Other

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

NTS Utility Assoc.

Radio Read Meters

39307

$432,845

$30,745,255

Funding Line indicates the funds which are antic ipated to be available based on obtaining the remai nder of the FFY-2012 Federal Capitalization Grant supplied by EPA, the State match funds from the SFY- 2013 state bond sale, and repayments and interest; f unding available in FFY-2014 should equal $29,552,960. ** Currently, the requirements of additional subsid ization are unknown. Once the final federal approp riation with related requirements is made, additiona l modifications will be made to the priority system a nd ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidizat ion the state has elected to use.

CPF – Cumulative Principal Forgiveness

CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Gree n Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits i n the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects cu rrently listed as Green Infrastructure are based on information supplied in submitted facility plans.

This determination of Green Infrastructure will be based on guidelines supplied by the Environmental P rotection Agency.

Monday, January 27, 2014

Page 2 of 2

Final

Fiscal Year - 2015 and After Planning List

Mississippi Drinking Water Systems Improvements Rev olving Loan Fund Program

(Projects included on the Planning List did not mee t the September 30, 2013 deadline for submission of a complete facilities plan, or had multiple reques ts and asked to

be placed on the Planning List. These projects ha ve been ranked on the Planning List based on inform ation provided on the Request for Ranking Form. A

determination of project eligibility cannot be comp leted until the facilities plan has been submitted and reviewed.)

Category II: Previous Year Certified Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Wiggins, City of

33 Miss. Admin. Code Pt. 3, R. 1000 GPM Well/3,000 ft.8" Main/Seal Well

39577

$1,610,668

Category III: Primary Drinking Water Standards Proj ects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$412,000

$2,022,668

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$470,000

$2,492,668

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$586,000

$3,078,668

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$586,000

$3,664,668

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$702,000

$4,366,668

Richland, City of

Installation of 1000 GPM Water Well

39218

$945,700

$5,312,368

Yazoo, City of

New Well/Water Distribution System

39194

16400

$1,855,557

$7,167,925

Wayside Water Association, Inc.

Installation of Treatment Facilities

38756

$152,500

$610,000

$7,777,925

Okatoma Water Association

System Improv/Well/Tank/Treatment Plant

38911

$386,250

$1,545,000

$9,322,925

Swiftwater Development

Installation of Treatment Facilities

38756

$152,500

$610,000

$9,932,925

Bude, Town of

New Well/Water System Improvements

39630

$500,000

$1,643,000

$11,575,925

Symonds Water Association

Various Improvements

38769

$180,180

$400,400

$11,976,325

Category IV: One Well Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Duffee Water Assoc.

Backup Well

39337

$82,409

$549,393

$12,525,718

Broadmoor Utilities

Well and Generator

39120

$149,112

$596,450

$13,122,168

Double Ponds Water Association

Wells, Treatment Plant Rehab, Tank Rehab, Dist.

39474

$500,000

$4,524,000

$17,646,168

Monticello, Town of

Water System

39654

$500,000

$5,500,000

$23,146,168

Tuesday, July 29, 2014

Page 1 of 4

Category V: Pressure Deficiencies Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Carthage, City of

Upgrade Booster Station's Controls

39051

103189

$5,000

$20,000

$23,166,168

Carthage, City of

Upgrade and Replace Water Mains, Booster Station

39051

$67,500

$250,000

$23,416,168

Natchez, City of

New 500,000 Ga. Tank/Distribution Lines

39120

18340

$418,950

$1,675,800

$25,091,968

Greenwood Utilities

New NE .5 MG Elevated Tank

38930

18500

$500,000

$2,198,000

$27,289,968

Forest, City of

Rehab Existing Storage Tank

39074

$283,750

$1,135,000

$28,424,968

Aberdeen, City of

33 Miss. Admin. Code Pt. 3, R. 400 Rule 400

GPM Well/100,000 Gal. Elev.Tank/Rehab

39730

$370,487

$1,481,949

$29,906,917

Forest, City of

New 900 GPM Well

39074

$400,000

$1,600,000

$31,506,917

Evergreen Water Association, Inc.

Upgrade Existing Facilities

39043

$500,000

$32,006,917

Guntown, City of

Water Sys. Improvements/Valves/Lines/Meters

38849

$975,000

$32,981,917

Ridgeland, City of

New 1,600 GPM Well/500,000 Gallon Tank

39158

24000

$3,434,404

$36,416,321

Ridgeland, City of

Two 1,600 GPM Ser. Pumps/Rehab Current

39158

24000

$4,840,000

$41,256,321

Sumrall, Town of

Installation of 12 inch Water Mains

39482

$151,200

$1,008,000

$42,264,321

Category VI: Source Water Protection Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Bear Creek Water Associations, Inc.

Installation of 12" and 16" Water Mains

39046

40000

$1,600,000

$43,864,321

Walnut, Town of

Installation of Water Lines/2 Master water Meters

38683

$256,000

$44,120,321

Abbeville Water Association

Water System Consolidation

38601

$50,000

$200,000

$44,320,321

Jumpertown, Town of

Water Dist. System Improvements

38829

$938,060

$45,258,381

Brookhaven, City of

Water Distribution Extension

39602

12515

$3,000,000

$48,258,381

Category VII: System Capacity Expansion to Serve Ex isting Unserved Residences/Businesses

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Batesville, City of

Installation of Water lines

38606

31582

$37,500

$125,000

$48,383,381

Batesville, City of

Installation of Water Lines

38606

26319

$37,500

$150,000

$48,533,381

Ridgeland, City of

Enhance Distribution System/Install 12 in. Lines

39157

15710

24000

$830,375

$49,363,756

Batesville, City of

Rehab/Replacement of Existing Facilities

38606

14356

$68,750

$275,000

$49,638,756

Batesville, City of

Rehab Existing Facilities

38606

11279

$87,500

$350,000

$49,988,756

Batesville, City of

Rehab Existing Facilities

38606

$102,500

$410,000

$50,398,756

Gautier, City of

Well and Elevated Tank

39553

18850

$1,421,300

$51,820,056

Tuesday, July 29, 2014

Page 2 of 4

Batesville, City of

500,000 Gallon Elevated Tank

38606

$187,500

$750,000

$52,570,056

Sontag Wanilla Association, Inc.

New Water Well/Appurtenances

39665

$482,000

$53,052,056

Brookhaven, City of

Install Water Main/Rehab Existing Facilities

39602

13300

$500,000

$3,925,130

$56,977,186

Helena Utility District

Enhance Water Distribution System

39562

$1,883,000

$58,860,186

Nicholson Water & Sewer Assn.

Installation of Approx. 10,400 L.F. of Water Main

39463

$270,450

$1,803,000

$60,663,186

Macon, City of

New Well, Elevated Tank and Treatment Facility

39341

$500,000

$4,095,250

$64,758,436

Poplarville, City of

Replace Water Lines/Mains

39470

$157,617

$1,050,785

$65,809,221

Jackson County Utility Authority

Water Distribution System Improvements

39567

$6,250,000

$72,059,221

Category VIII: Back-up Water Supply Sources Project s

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Greenwood Utilities

Well Relocation

38930

12079

18500

$315,000

$900,000

$72,959,221

Batesville, City of

New 750 GPM Well

38606

$125,000

$500,000

$73,459,221

Batesville, City of

Rehab Existing Infrastructure

38606

$125,000

$500,000

$73,959,221

Ridgeland, City of

1,600 GPM Potable Water Well

39158

24000

$2,189,300

$76,148,521

Mt. Olivet Water Association

New Well Construction

38606

$244,415

$76,392,936

Marion, Town of

New 800 GPM Well/New Generator

39342

$371,855

$826,345

$77,219,281

Gautier, City of

33 Miss. Admin. Code Pt. 3, R. 1000 GPM Well/Install 30,000 LF 6" PVC Water

39533

18572

$3,445,000

$80,664,281

Ocean Springs, City of

Replacement of Water Lines

39564

17225

$2,283,800

$82,948,081

Bay Springs, Town of

New 1,000 GPM Well/300,000 Gal. Tank

39422

$340,010

$1,360,040

$84,308,121

Star Water Company

New Water Well

39167

$590,000

$84,898,121

Horn Lake, City of

New Well and Tank/Upgrade Existing Facilities

38637

$2,474,600

$87,372,721

Category IX: Existing Facilities Upgrade (Meeting P rimary Standards)

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Carthage, City of

Backup Generator

39051

20638

$25,000

$100,000

$87,472,721

Ridgeland, City of

Upgrade/Replace Existing Water Lines

39157

18530

24000

$704,000

$88,176,721

Carthage, City of

Install Generator/Upgrade Existing Facilities

39051

12140

$42,500

$170,000

$88,346,721

Ridgeland, City of

Water Line Relocation

39158

10108

24000

$793,400

$89,140,121

Collins, Town of

Water Line Replacement

39428

$48,664

$139,040

$89,279,161

Collins, Town of

Water Line Replacement

39428

$55,300

$158,000

$89,437,161

Collins, Town of

Water Line Replacement

39428

$55,300

$158,000

$89,595,161

West Point, City of

Upgrade SCADA/Chlorine Analyzer/Paint 5

39773

16500

$217,500

$870,000

$90,465,161

Tuesday, July 29, 2014

Page 3 of 4

DeKalb, Town of

Rehabilitation of Elevated Tank

39328

$63,000

$180,000

$90,645,161

Lumberton, City of

Replace/Upgrade Water Mains

39455

$276,975

$1,107,900

$91,753,061

Mount Olive, Town of

Replacement of Water Lines

39119

$80,962

$231,320

$91,984,381

Kokomo-Shiloh Water Association

New 400GPM Well/Rehab/Upgrade of Existing

39643

$306,250

$875,000

$92,859,381

Alcorn Co. Water Association

300,000 Gal Storage Tank/upgrade Facilities

38834

$190,965

$1,273,101

$94,132,482

Alcorn Co. Water Association

Renovate Elevated tanks/Replace Water Lines

38834

$130,938

$872,920

$95,005,402

Greenville, City of

Upgrade Existing Well

38701

49000

$500,000

$2,850,000

$97,855,402

L.F. Water Association

New Well/Elevated Tank

39098

$250,000

$1,000,000

$98,855,402

Edwards, Town of

Construction of Ozone Treatment Facility

39066

$235,500

$1,570,000

$100,425,402

Lebanon Water Association

Water Distribution System Improvements

39095

$2,588,869

$103,014,271

Pelahatchie, Town of

Rehab Existing Facilities

39145

$2,436,000

$105,450,271

Long Beach, City of

Upgrade Distribution System

39560

15000

$316,180

$105,766,451

Category XIII: Other

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Meridian, City of

Sludge Removal System

39525

11692

45000

$189,000

$1,260,000

$107,026,451

Culkin Water District

Water Distribution System Improvements

39183

11317

$1,726,073

$108,752,524 **Currently, the requirements of additional subsidiz ation are unknown. Once it has been determined by the final federal appropriation, additional modific ations will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidizat ion the state has elected to use.

DW – Drinking Water System Improvement Revolving Lo an Fund – includes repayments, interest and FFY-2014 Capitalization Grant. Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits i n the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects cu rrently listed as Green Infrastructure are based on information supplied in submitted facility plans.

This determination of Green Infrastructure will be based on guidelines supplied by the Environmental P rotection Agency. Tuesday, July 29, 2014

Page 4 of 4

FFY-2014 Detailed Project List with Additional Info rmation

Project Schedule

Project Assistance

Technical Information

Population Initial Project Cross-Cutter

Project Listing

No.

of Service

BCD*

CSD*

CCD*

Assist.

Assistance

Interest

Repay

Part 4 Part 4: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations FFY-2015 Intended Use Plan

33 Miss. Admin. Code Pt. 4 Part 4: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations FFY-2015 Intended Use Plan

FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 4: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FINAL FFY-2015 INTENDED USE PLAN

Presented to the Board for Review and Comment on January 23, 2015

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

3 - FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 4: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2015 INTENDED USE PLAN TABLE OF CONTENTS

I. INTRODUCTION

State of Mississippi’s Drinking Water State Revolving Fund
Program Overview
Public Input, Review, and Comment Procedures

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSEMS

IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF) PROGRAM

Basic Goals
Long-Term DWSIRLF Goals
Short-Term DWSIRLF Goals

III. STRUCTURE OF MISSISSIPPI DWSIRLF 9 A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:
Set-aside Accounts:

DWSIRLF State Match Funds
Drinking Water Systems Emergency Loan Fund (DWSELF)

IV. FINANCIAL STATUS OF THE DWSIRLF 10 A. Source and Use of Fund

Federal Allotment
State Match Requirements
Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management
Interest Rate Determination
Investment

C. Financial Terms of Loans

Funding Limit
Interest Rate
Administration Fee
FFY-2015 Appropriation Special Provisions
Other Related Issues

4 -
1. SET-ASIDE ACTIVITIES 16
2. Administration
3. Small System Technical Assistance
4. State Program Management
5. Local Assistance and Other State Programs

VI. PRIORITY SYSTEM 18 A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure
FFY-2015 Green Infrastructure Requirement
Loan Decreases
Match for Special Appropriations Project (SPAP) Grants
Subsidization from FFY-2015 Federal Appropriation

Priority System Categories
Priority Ranking Criteria
Priority System Deadlines

VII. FFY-2015 PRIORITY LIST 29 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 34

APPENDICES 36 A. FFY-2015 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSRF) Program 37 FFY-2014 End of Year Funds Report-Mississippi DWSIRLF Program -- October 1, 2014 39 B. PROJECTED SCHEDULE OF OUTLAYS 41 C. PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE 42 D. PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT 43 E. MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET- ASIDE WORK PLAN 44 F. MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN 48 G. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN 53 H. MISSISSIPPI STATE PROGRAM SET-ASIDE MATCH REQUIREMENTS – MISSISSIPPI 1:1 REQUIREMENT FOR FFY-2015 STATE PROGRAM MANGEMENT SET-ASIDE 55 I. COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS 56 J. DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM 61 K. CERTIFICATIONS 62

I. Introduction

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3- 16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The rural water system manager is appointed by the Governor. In the creation of the Program it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds. The purpose of this IUP is to convey the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2015 to EPA, other state agencies, the state’s public water supplies, and the general public.

B. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on February 3, 2009. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year.

The amount of the FFY-2015 Cap Grant from EPA for Mississippi is not known at this time; therefore, the grant amount received by Mississippi in FFY-2014 will be used in this IUP for planning purposes until the actual Cap Grant amount is known. A Cap Grant amount of $9,159,000 will be used for these purposes. The FFY-2015 DWSRF Cap grant application will request an amount of $9,159,000; these funds must be used in the time period of July, 2015, through June, 2019. The FFY-2015 IUP will show in detail the goals (basic, long-term and short-term), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518.

C. Public Input, Review, and Comment Procedures

To ensure that the public has an ample opportunity to review and comment upon the IUP, the Department and the Board follow the requirements of the “Mississippi Administrative Procedures Law” prior to final submission of the IUP to EPA. A public notice period of at least twenty-five (25) days allows for review and comment before an oral proceeding. A second filing with the Secretary of State’s Office occurs with the IUP becoming law 30 days later.

A public notice was given in The Clarion Ledger, a newspaper of statewide circulation, that an oral proceeding would be held at 9:00 a.m. on Thursday, January 22, 2015, to receive any written and oral comments on this IUP. A transcript of the oral proceeding, recording the comments and recommended solutions, will be submitted to EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office, and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf .

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

The Board has established certain goals for the DWSIRLF Program with the objective of improving the Program on an ongoing basis. The goals have been classified into three categories that include basic, long-term, and short-term. These goals were developed to address the necessary requirements of federal and state regulations, as well as the state’s need and desire to maintain and enhance the Program. Congress and the State of Mississippi have placed particular emphasis on assisting smaller drinking water systems under the DWSIRLF to ensure that these systems have adequate technical, managerial, and financial resources to achieve or maintain compliance and provide safe drinking water.

A. Basic Goals

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.
Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY- 2012 the Program has been using the Local Assistance and Other State Programs set-asides to properly abandon inactive wells and open holes. Inactive wells and

open holes are potential avenues of contamination to the aquifer and a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.

Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.
Meet special funding goals: The FFY-2015 federal appropriation may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s

repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

The Mississippi DWSIRLF is structured around three separate funds that sustain the Program and help it achieve the basic, short-term, and long-term goals. The funds are broken down further into designated accounts, each having a specific function.

A. DWSIRLF Loan/Operations Fund

Monies in the Fund support a majority of the functions of the DWSIRLF. These functions include: program administration, set-aside operations, and most importantly, provide disbursements to public water systems for eligible projects. The DWSIRLF is a reimbursement program, meaning that after the loan is awarded, costs associated with planning, designing and constructing the project are reimbursed to the recipient. Cap grants from EPA, loan repayments and interest earnings are deposited into this Fund.

Types of Eligible Projects: Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.
Set-aside Accounts: The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems through the current contractual services of the Community Resources Group (CRG), Mississippi State University – Extension Service (MSU-ES) and the Mississippi Rural Water Association (MsRWA). c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program through current contractual services with the Mississippi Rural Water Association (MsRWA) and Mid- South Water, LLC.

B. DWSIRLF State Match Funds

As required by the SDWA, the State of Mississippi must match the Cap grant with state funds equaling 20% of the federal allotment. Mississippi historically has received the required 20% state match from the sale of General Obligation bonds authorized by the State Legislature and sold by the Mississippi State Bond Commission; however, in the 2014 legislative secession, the State Legislature authorized a direct appropriation for the state match. While state match monies are maintained separately from the Fund for accounting purposes, they are still considered to be under the “umbrella” protection of the DWSRF Fund.

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The anticipated FFY-2015 EPA Capitalization Grant allotment for Mississippi is $9,159,000 which will require a 20% state match of $1,831,800; this provides an anticipated amount of $10,990,800 for both loans and set-aside activities.

With $1,931,204 being utilized for set-aside activities, $9,059,596 will be used for loans to Mississippi public water supplies; additionally, unobligated funds from the previous year, anticipated loan repayments and interest earnings (all of which are not classified as state match) should also be available as additional funding sources.

The FFY-2015 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment If the F FY-2015 Capitalization Grant for Mississippi is $9,159,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.22% state

match funds to 79.78% federal grant funds; this requirement will be stated in the grant application.

State Match Requirements Until 2014 the state 20% match was provided through the sale of General Obligation bonds authorized by the State Legislature. The Legislature passed House Bill No. 209 to establish a Local Governments and Rural Water Systems Improvements Revolving Loan Program and authorized the sale of $15,000,000 in General Obligation Bonds which were deposited into the Fund. As stated in the law, one of the purposes for these funds is that, “All or any portion of the monies in the fund may be used to match any federal funds that are available for the same or related purposes for which funds are used and expended under this act.” Initially, $10,000,000 of these General Obligation bonds were sold in May of 1997 and the proceeds were deposited into the Fund on May 29, 1997. Later, the remaining $5,000,000 of the original bonding authority was sold and deposited into the Fund on October 5, 2000. • $3,294,840 was used as match for the FFY-1997 Cap grant, • $1,654,340 was used as match for the FFY-1998 Cap grant, • $1,733,900 was used as match for the FFY-1999 Cap grant, • $1,802,020 was used as match for the FFY-2000 Cap grant, • $1,809,480 was used as match for the FFY-2001 Cap grant, • $1,610,500 was used as match for the FFY-2002 Cap grant, • $1,600,820 was used as match for the FFY-2003 Cap grant, • $1,494,100 was used as match for $7,470,500 of the FFY-2004 Cap grant. During the Spring 2003 Legislative Session, the Legislature provided the Board with an additional $130,000 in bonding authority. Additionally, during the Spring 2004 Legislative Session, the Legislature authorized $1,613,000 in general obligation bonds. A total of $1,740,000 was deposited in the DWSIRL Fund during the 1 st Quarter of FFY-2005. • $129,776 was used as match for $648,880 of the FFY-2004 Cap grant. • $36,744 was used as match for $183,720 which was the remaining FFY- 2004 Cap grant. • $1,573,480 was used as match for $7,867,400 of the FFY-2005 Cap grant. During the 2006 Regular Legislative Session, the Legislature authorized the sale of general obligation bonds in the amount of $4,003,000, which were sold and deposited in the SRF Fund during the 1 st Quarter of FFY-2007. After paying the issuance cost of $2,128.26: • $83,620 was used to match the remaining $418,100 of the FFY-2005 Cap grant. • $1,645,860 was used to match the FFY-2006 Cap grant ($8,229,300). • $1,645,800 was used to match the FFY-2007 Cap grant ($8,229,000). • $625,591 was used to match a portion ($3,127,955) of the FFY-2008 Cap grant. During the 2008 Regular Legislative Session, the State Legislature authorized an additional $4,000,000 in general obligation bonds which were sold and deposited

into the Fund during the 1 st Quarter of FFY-2009. After paying issuance costs of $2,256.05: • $1,003,609 was used to match the remaining FFY-2008 Cap grant. • $1,629,200 was used to match the FFY-2009 Cap grant ($8,146,000). • $1,364,935 was used to match a portion of the FFY-2010 Cap grant or $6,824,675. During the 2010 Regular Legislative Session, the State Legislature authorized an additional $1,400,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2010. After paying issuance cost of $9,087: • $1,390,913 was used to match a portion ($6,954,566) of the FFY-2010 Cap grant. During the 2011 Regular Legislative Session, the State Legislature authorized an additional $2,700,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2011. After paying issuance and discount costs of $13,105: • $69,152 was used to match the remaining FFY-2010 Cap grant ($345,760). • $1,960,400 was used to match the FFY-2011 Cap grant (9,802,000). • $1,834 was used to match $9,166 which was transferred to DWSIRLF from the remaining balance of the MS Operator Certification Grant for making additional loans. • The remaining $655,509 was used to match $3,277,545 of the FFY-2012 capitalization grant leaving a balance of $6,063,455 to be matched. During the 2013 Regular Legislative Session, the State Legislature authorized an additional $1,000,000 in general obligation bonds. These bonds were sold and the funds were deposited into the DWSIRLF in December 2013. No issuance or discount costs were charged, therefore, the full $1,000,000 bond amount is available to match a portion ($1,902,240) of the FFY-2013 Cap grant and match a portion of ($3,097,760) of the remaining FFY-2012 Cap grant. The $1,000,000 state bond funds will be used as follows. • $380,448 will match the FFY-2013 Cap Grant Set-aside amount ($1,902,240). • $619,552 will match $3,097,760 of the remaining FFY-2012 Capitalization Grant. • $593,139 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will be used to complete the match of the remaining FFY- 2012 Capitalization Grant ($2,965,695). (That portion of the DWSELF which exceeds the $5,000,000 initially deposited in the fund may be used to match capitalization grant funds). • $26,861 remaining from the $620,000 used from the DWSELF Fund will be used to match a portion ($134,305) of the FFY-2013 Cap Grant. During the 2014 Regular Legislative Session, the State Legislature authorized $1,000,000 in direct funding for the DWSRF program and the use of $2,000,000 in an existing MSDH account for the DWSRF program. Additionally, $180,000 was used from the Drinking Water Systems Emergency Loan Fund (DWSELF).

The total of all the state match funds matched all outstanding EPA Grant funds; the remaining portion of the FFY-2013 Cap Grant ($6,727,455) and the total FFY-2014 Cap Grant ($9,159,000). The $3,180,000 of state funds was used as follows. • $1,345,491 matched the remainder of the FFY-2013 Cap Grant amount ($6,727,455). • $1,831,800 matched the FFY-2014 Capitalization Grant ($9,159,000). • $2,709 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will remain to be used as match for future Capitalization Grants. It is anticipated that the State Legislature will continue to provide a direct appropriation for the State’s 20% match portion of the FFY-2015 EPA Capitalization Grant. If this happens, the match amount would be $1,831,800 for an amount of $9,159,000.

Loan Increase Reserve Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the amount indicated in Appendix A for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be made available for new loan awards to the highest ranking project(s) that is ready for loan award at the time funds become available.

B. Financial Planning Process

In accordance with the Board's desire to maintain a financially sound DWSIRLF loan Fund in perpetuity, while at the same time meeting a substantial portion of the drinking water needs in the state within a reasonable period of time, the following financial decisions were made regarding the Fund:

Efficient Bond Management The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF Fund and shall be used as the state match for federal DWSRF Cap grants.
Interest Rate Determination It is the Board’s intention to adjust interest rates such that the demand will equal the funds available. In order to ensure that this interest rate will be at or below the prevailing market rates at the time a loan is made, this rate will be compared to the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield

published by The Bond Market Association/ Bloomberg (Bloomberg Online, http://www.bloomberg.com/markets/rates/index.html ).

Investment Investment Procedures for Excess Cash - According to the State Treasurer, the excess cash in the Fund is invested by the State Treasurer in securities prescribed in Section 27-105-33, et. Seq., of the Mississippi Code of 1972 Annotated, as amended. The securities in which state funds may be invested include certificates of deposit with qualified state depositories, repurchase agreements (fully secured by direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations), direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations, and any other open-ended or closed-ended management type investment company or investment trust registered under the provisions of 15 U.S.C. Section 80(a)-1 et. Seq, provided that the portfolio is limited to direct obligations issued by the United States of America, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations and to repurchase agreements fully collateralized by the securities listed above for repurchase agreements.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2015 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by vote of the Board. Furthermore, during FFY-2015, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2015 may obtain an additional award(s) or an increase to a previous FFY-2015 award, if no other eligible systems are evident.
Interest Rate All loan terms will be at 1.95% annual interest rate, compounded monthly, with a maximum 20-year repayment period. The interest will not accrue during construction, but will commence at the date of completion of the original construction period.
Administration Fee

Revenues to pay for Program administrative costs will be collected through an administration fee of 5% of the initial loan principal. This fee will be collected from the interest portion of loan repayments on all FFY-2015 loans.

FFY-2015 Appropriation Special Provisions The Federal 2015 appropriations bill has not been finalized and the final EPA FFY-2015 Cap Grant allotment amounts and any additional federal requirements are not known. It is anticipated that subsidization requirements will be required for the FFY-2015 Cap Grant; the subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The anticipated amount of subsidization is expected to be a minimum of 20% of the Cap Grant amount up to 30% of the Cap Grant amount. If the FFY-2015 Cap Grant is $9,159,000 the subsidization amount would be between $1,831,800 (20%) to $2,747,700 (30%) if the Cap Grant amount is $9,159,000. Furthermore, all loans made with all or part FFY-2015 federal appropriation funds are expected to include the Davis-Bacon Act requirements and may include the American Iron and Steel requirements. Appropriate language will be added to all FFY-2015 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement; however, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.
Other Related Issues a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds afforded through the FFY-2014 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. When the specifics of the FFY-2015 appropriation bill become known, the Board may set a limit on the total amount of grant funds that would be designated for additional subsidy. Once the limit of the appropriation subsidy funds has been reached for FFY-2015, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

b. Project Costs Eligibility: Eligible/allowable project costs will include those costs that are eligible, reasonable, necessary, and allocable to the project, within the established project scope and budget, in conformance with the DWSIRLF regulations and approved by MSDH.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2014, and the DWSIRLF loan is awarded by September 30, 2015. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The FFY-2015 Priority List expires on September 30, 2015. Projects listed in the FFY-2015 Priority List that do not receive funding by this date will not be funded under the FFY-2015 funding cycle and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2015 DWSIRLF projects is shown in Section VIII of this IUP. To facilitate the use of FFY-2015 federally appropriated funds, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The state plans to use $1,931,204 of the FFY-2015 Federal Capitalization grant to support the non-project-related drinking water programs activities along with an additional $915,900 in state money needed for state program management match. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans detailing how funds will be expended for the set-asides utilized are included as appendices within this IUP. Additionally, progress reports will be included in the Annual Report for those set-asides utilized. The state has elected not to take any additional set- asides from the FFY-2015 Local Assistance and Other State Programs appropriation, but reserves the right to make revisions to utilize additional funds from this set-aside.

A. Administration

Standard Capitalization Grant

The state plans to reserve for use at a later date the 4% administrative set-aside from the FFY-2015 Capitalization Grant ($366,360); the state will use the 4% administrative set-aside amount previously reserved from the FFY-2003 Capitalization Grant ($320,164) by taking an equal amount from the FFY-2015 Capitalization Grant for the administration of the Program in FFY-2015. This change will decrease the total set-aside amount for the FFY-2015 Cap grant from $1,965,440 to $1,919,244. Costs beyond this set aside amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments.

The state will continue to exercise its right to reserve the Administrative amounts from the FFY-2009 Cap Grant ($325,840), the remaining balance of the FFY-2010 Cap Grant ($282,500), the FFY-2011 Cap Grant ($392,080) and the FFY-2014 Cap Grant ($366,360). These amounts are planned to be taken from future capitalization grants (over the next several years) for administration of the Program. Reserving previous years’ 4% administrative set-aside will ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program. The reserved set-aside amounts are based on the original capitalization grants awarded during those previous fiscal years.

B. Small System Technical Assistance

Standard Capitalization Grant The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY-2015 Cap Grant ($183,180) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; and Hands-on Operator Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix F to this IUP.

C. State Program Management

Standard Capitalization Grant The state intends to use the full 10% set-aside from the FFY-2015 Cap grant ($915,900), as authorized by Section 1452(g)(2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix G to this IUP. The state must provide a dollar-for-dollar match (100% match) for the Cap grant funds used for these activities. The dollar-for-dollar match is in addition to the twenty (20%) percent state match required for the Cap grant. The state is allowed to offset the 100% match requirement by claiming credit for State FFY-2015 PWSS expenditures that exceed the State’s FFY-2015 PWSS match

requirement. The state is further allowed to use state FFY-2015 PWSS expenditures as a “coupon” to offset the 100% match requirement as long as this amount does not exceed the amount that can be claimed from FFY-2015 expenditures. The MSDH Bureau of Public Water Supply has elected to decline the “coupon” since it sees this as providing no additional monetary benefit to the State Program Management Program. A tabulation showing amount and source of funds to satisfy match requirements for the FFY-2015 State Program Management set-aside is furnished as Appendix H to this IUP.

D. Local Assistance and Other State Programs

The state intends to use $500,000 (5.46%) of the 15% set-aside amount which is allowed from the FFY-2015 Cap g rant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

The SDWA provides the state with the flexibility to determine how to best utilize the Cap grant. To meet the particular and unique issues facing the public water systems in Mississippi, SDWA requirements allow states to give priority to those projects which: o address the most serious risk to human health o are necessary to ensure compliance with the SDWA requirements o assist systems most in need, on a per household basis

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure Should any projects on the FFY-2015 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be

made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.

FFY-2015 Green Infrastructure Requirement The FFY-2015 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

classification will be required to present a “business case” establishing justification for the classification request. Guidance for establishing a “business case” is available to assist potential loan recipients in preparation of the documentation.

Loan Decreases Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list) and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants On October 10, 2001, EPA issued policy memorandum DWSRF 02-01 to notify regions and states of a change in policy regarding the use of DWSRF monies for providing local match for SPAP grants. This change in EPA policy will allow the state to use non-federal, non-state match DWSIRLF funds to provide loans that can be used as local match for SPAP grants awarded for drinking water projects. These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non- federal, non-state match monies have been obligated or demand for such funds has been met.
Subsidization from FFY-2015 Federal Appropriation EPA is expected to mandate that a minimum of 20% but no more than 30% of the FFY-2015 Cap grant be provided as additional subsidization to disadvantaged communities. Based on the FFY-2015 grant amount of $9,159,000 the amount of subsidization will be between $1,831,800 and $2,747,700. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year

time period. Subsidization for FFY-2014 may be awarded to projects eligible for PF in FFY-2015 and FFY-2016.

Disadvantaged Community Program During FFY-2015, the following PF methodology will be used since it is anticipated that the FFY-2015 federal appropriation will continue to require the state to provide additional subsidy for disadvantaged communities.

The amount of PF for which a potential “Loan Recipient” (LR) may be eligible will be determined by calculating the percentage of the “Median Household Income” (MHI) of the potential LR versus the MHI of the State of Mississippi ($36,311) as a whole.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

This PF will be extended to projects until all mandated subsidy funds are obligated. The amount of PF given will be assigned at loan award and will not change after the project goes to the bid phase. Additionally, due to the limited amount of PF funds, the maximum amount of PF funds a loan recipient may receive for a project will be set at $500,000. Once subsidy funds are depleted, only standard loans will be made with DWSIRLF funds.

MHI’s to be used for calculating PF will be those displayed in the publication “The Sourcebook of Zip Code Demographics”, Twenty-third Edition. Where the affected community is included in more than one zip code area, an average will be used for the community’s MHI.

In the event that a LR declines their loan that includes PF, the released PF may be reallocated to other projects for the present fiscal year that are eligible for PF or the PF may be carried over to projects for the next fiscal year.

If returned PF funds are reallocated to projects awarded during the existing fiscal year. The reallocation of PF will be given first to projects which did not receive their full allowable amount based on the above table up to the maximum allowed limit.

If all projects have received their full allowable amount, returned PF funds may be reallocated to projects awarded PF during the existing fiscal year based on a percentage of the individual LR’s initial loan amount to the total loan amount of loans awarded PF during the fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Project categories are defined below. Projects in Category I will be funded each year to the extent the Board makes funds available. Projects in Categories II through XI are ranked in priority order; that is, all Category II projects are ranked higher than Category III projects, etc. Ranking is established in like manner through all remaining categories. Adjustments will be made as necessary to comply with small community set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a)(2) of SDWA]. As stated previously, the order of Categories II - XI is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section C.

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

In order to maintain continuity, the Board intends to make some amount of funds available for each ongoing-segmented project. Preference in the amount of funds to be provided will be given to the projects that received the earliest loan award for their initial segment.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

The projects will be ranked: first in order of the highest source water classification that would be negatively impacted by source water contaminants; secondly, within each classification in order of the public water systems susceptibility assessment ranking as determined by the DEQ-GPB; and thirdly, within each susceptibility assessment ranking in order of the highest number of connections served by the public water system. Source water classifications will be ranked in the following order: surface water sources; shallow (generally ≤ 300’ in depth) unconfined water wells; shallow (generally ≤ 300’ in depth) confined water wells; and deep confined water wells.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.

Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

participation in short-term and long-term technical assistance programs; and (6) encourage participation in the Drinking Water Needs Survey. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

The number of benefiting connections must be included in the facilities plan submitted by the applicant; be defined as the sum of individual connections currently experiencing deficiencies that will be corrected by the improvement; and include only existing residences, businesses, and public buildings. Applicants must furnish information (including hydraulic analysis, if necessary) to support their estimate of the number of benefiting connections. The total eligible cost is in millions of dollars (i.e., $800,000 = $0.8 M).

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi ($36,311)* MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5.

The MHI to be used in the calculations will be those displayed in the publication (*)“The Sourcebook of Zip Code Demographics”, Twentieth Edition or from the publisher’s website at http://www.esribis.com/reports/ziplookup.html . Where the affected community is included in more than one zip code area, an average will be used for the community’s median household income.

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include

consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all of the recommendations made by CRG will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by CRG must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Projects receiving the most priority points will be given the highest ranking on the Priority List. In case of a tie in the number of priority points, projects with the lowest median household income will receive the highest ranking.

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2014, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

This deadline also applies to all projects competing for released funds during FFY-2015 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2015 IUP.

By May 1, 2015, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2015 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2015 IUP.
By August 1, 2015, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2015 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2015 IUP.

VII. FFY-2015 Priority List FINAL Fiscal Year - 2015 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List Category II: Previous Year Certified Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Mendenhall, City of Installation of 8" PVC 39114 6081 2504 $33,225 $209,050 $209,050 Wiggins, City of 1000 GPM Well/3,000 ft.8" Main/Seal Well 39577 1055 4747 $0 $0 $1,610,668 $1,819,718 Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 6020 10000 $0 $0 $412,000 $2,231,718 Yazoo, City of New Well/Water Distribution System 39194 2866 16400 $0 $0 $1,855,557 $4,087,275 Taylorsville, Town of New Water Well/Rehab Existing Storage Tank 39168 927 2000 $0 $0 $815,000 $4,902,275 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Duffee Water Assoc. Backup Well 39337 868 2617 $82,409 $746,307 $5,648,582 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Bear Creek Water Associations, Inc. Installation of 12" and 16" Water Mains 39046 7141 40000 $0 $0 $1,600,000 $7,248,582 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Madison, City of Construction of 1Mil Gallon Storage Tank 39110 1664 13986 $0 $0 $2,800,895 $10,049,477 Brookhaven, City of Install Water Main/Rehab Existing Facilities 39602 1221 13300 $500,000 $3,925,130 $13,974,607 Jumpertown, Town of Water Dist. System Improvements 38829 574 1500 $0 $0 $938,060 $14,912,667 Tupelo, City of Upgrade Water Distribution System 38802 152 34500 $0 $0 $659,000 $15,571,667 Brookhaven, City of Water Distribution Extension 39602 133 12515 $0 $0 $3,000,000 $18,571,667 Tuesday, November 25, 2014 Page 1 of 2

Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Winona, City of New Water Well 38967 6515 5800 $140,875 $0 $402,500 $18,974,167 Magee's Creek W/A Construct New 150,000 Gal. Tank/Treatment 39667 2785 7992 $438,550 $0 $1,253,000 $20,227,167 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Lumberton, City of Replace/Upgrade Water Mains 39455 2440 2228 $276,975 $1,107,900 $21,335,067

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2015 based on the funds authorized and provided by the 2014 Legislature; obtaining the remainder of the FFY-2013 Federal Capitalization Grant and the FFY-2014 Federal Capitalization Grant which are supplied by EPA; and repayments and interest on previous loans. The funding available in FFY-2015 should equal $37,363,325. ** Currently, the requirements of additional subsidization are unknown. Once the final federal appropriation with related requirements is made, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. CPF – Cumulative Principal Forgiveness CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency.

Tuesday, November 25, 2014 Page 2 of 2

FINAL Fiscal Year - 2016 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2014 deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.)

Category II: Previous Year Certified Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treatment 39114 531 2504 $138,750 $2,634,100 $2,634,100 Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 5277 10000 $0 $0 $470,000 $3,104,100 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $3,690,100 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $4,276,100 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 3533 10000 $0 $0 $702,000 $4,978,100 Okatoma Water Association New Well/Elevated Tank/Treatment System 38911 891 3405 $0 $0 $1,545,000 $6,523,100 Bude, Town of New Well/Water System Improvements 39630 400 1016 $500,000 $1,643,000 $8,166,100 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Center Water Association, Inc. Construct 200,000 Gal Elevated Tank/Rehab Well 39426 2157 5760 $0 $0 $850,500 $9,016,600 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Carthage, City of Upgrade Booster Station's Controls 39051 103189 4637 $5,000 $20,000 $9,036,600 Carthage, City of Upgrade and Replace Water Mains, Booster Station 39051 8255 4637 $67,500 $250,000 $9,286,600 Natchez, City of New 500,000 Ga. Tank/Distribution Lines 39120 5979 18340 $418,950 $1,675,800 $10,962,400 Clayton Village Water Association, New Generator/Upgrade Existing System 39759 4184 5000 $137,550 $393,000 $11,355,400 Forest, City of Rehab Existing Storage Tank 39074 2535 5968 $283,750 $1,135,000 $12,490,400 Aberdeen, City of 400 GPM Well/100,000 Gal. Elev.Tank/Rehab 39730 2316 6415 $370,487 $1,481,949 $13,972,349 Forest, City of New 900 GPM Well 39074 1799 5968 $400,000 $1,600,000 $15,572,349 -------------------------------------------------------------------------- Funding Line $16,028,258 ------------------------------------------------------------------------------------------------------ Guntown, City of Water Sys. Improvements/Valves/Lines/Meters 38849 1219 2912 $0 $0 $975,000 $16,547,349 Tuesday, November 25, 2014 Page 1 of 3

Ridgeland, City of New 1,600 GPM Well/500,000 Gallon Tank 39158 491 24000 $0 $3,434,404 $19,981,753 Ridgeland, City of Two 1,600 GPM Ser. Pumps/Rehab Current 39158 348 24000 $0 $4,840,000 $24,821,753 Category VI: Source Water Protection Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Walnut, Town of Installation of Water Lines/2 Master water Meters 38683 3064 1397 $0 $0 $256,000 $25,077,753 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Installation of Water lines 38606 31582 7600 $37,500 $125,000 $25,202,753 Batesville, City of Installation of Water Lines 38606 26319 7600 $37,500 $150,000 $25,352,753 Ridgeland, City of Enhance Distribution System/Install 12 in Lines 39157 15710 24000 $0 $0 $830,375 $26,183,128 Batesville, City of Rehab/Replacement of Existing Facilities 38606 14356 7600 $68,750 $275,000 $26,458,128 Batesville, City of Rehab Existing Facilities 38606 11279 7600 $87,500 $350,000 $26,808,128 Batesville, City of Rehab Existing Facilities 38606 9629 7600 $102,500 $410,000 $27,218,128 Batesville, City of 500,000 Gallon Elevated Tank 38606 5264 7600 $187,500 $750,000 $27,968,128 Bay Springs, Town of New 1,000 GPM Well 39422 2254 2000 $340,010 $617,000 $28,585,128 Helena Utility District Enhance Water Distribution System 39562 149 700 $0 $0 $1,883,000 $30,468,128 Nicholson Water & Sewer Assn. Installation of Approx. 10,400 L.F. of Water Main 39463 82 3500 $270,450 $0 $1,803,000 $32,271,128 Jackson County Utility Authority Water Distribution System Improvements 39567 4 450 $0 $0 $6,250,000 $38,521,128 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of New 750 GPM Well 38606 7896 7600 $125,000 $500,000 $39,021,128 Batesville, City of Rehab Existing Infrastructure 38606 7896 7600 $125,000 $500,000 $39,521,128 Ridgeland, City of 1,600 GPM Potable Water Well 39158 3663 24000 $0 $2,189,300 $41,710,428 Hilldale Water Association, Inc 300,000 Gal. Elevated Tank 39180 1520 5400 $0 $1,184,490 $42,894,918 Hazlehurst, City of New Well & Raw Water Line 39083 1412 4400 $375,000 $0 $1,500,000 $44,394,918 Horn Lake, City of New Well/Tank Upgrade Existing Facility 38637 485 1500 $0 $0 $2,474,600 $46,869,518 Marion, Town of 600 GPM Tr. Facil/600 GPM Well/Generator 39342 367 2000 $500,000 $2,748,800 $49,618,318 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Carthage, City of Backup Generator 39051 20638 4637 $25,000 $100,000 $49,718,318 Ridgeland, City of Upgrade/Replace Existing Water Lines 39157 18530 24000 $0 $0 $704,000 $50,422,318 Carthage, City of Install Generator/Upgrade Existing Facilities 39051 12140 4637 $42,500 $170,000 $50,592,318 Tuesday, November 25, 2014 Page 2 of 3

Ridgeland, City of Water Line Relocation 39158 10108 24000 $0 $793,400 $51,385,718 Collins, Town of Water Line Replacement 39428 9961 4000 $48,664 $139,040 $51,524,758 Collins, Town of Water Line Replacement 39428 8766 4000 $55,300 $158,000 $51,682,758 Collins, Town of Water Line Replacement 39428 8766 4000 $55,300 $158,000 $51,840,758 West Point, City of Upgrade SCADA/Chlorine Analyzer/Paint 5 39773 7049 16500 $217,500 $870,000 $52,710,758 Grenada, City of 2 500 GPM Wells/500,000 Gallon Elevated Tank 38901 4391 22951 $500,000 $2,202,700 $54,913,458 Mount Olive, Town of Replacement of Water Lines 39119 2348 1000 $80,962 $231,320 $55,144,778 Alcorn Co. Water Association 300,000 Gal Storage Tank/upgrade Facilities 38834 1187 6500 $190,965 $1,273,101 $56,417,879 Alcorn Co. Water Association Renovate Elevated tanks/Replace Water Lines 38834 1155 6500 $130,938 $872,920 $57,290,799 Edwards, Town of Construction of Ozone Treatment Facility 39066 449 1980 $235,500 $1,570,000 $58,860,799 Category XIII: Other Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ NTS Utility Assoc. Radio Read Meters 39307 4390 5700 $0 $432,845 $59,293,644

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2015 based on the funds authorized and provided by the 2014 Legislature; obtaining the remainder of the FFY-2013 Federal Capitalization Grant and the FFY-2014 Federal Capitalization Grant which are supplied by EPA; and repayments and interest on previous loans. The funding available in FFY-2015 should equal $37,363,325. **Currently, the requirements of additional subsidization are unknown. Once it has been determined by the final federal appropriation, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. DW – Drinking Water System Improvement Revolving Loan Fund – includes repayments, interest and FFY-2014 Capitalization Grant.

Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency. Tuesday, November 25, 2014 Page 3 of 3

VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2015 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

two systems will continual projects to upgrade or rehabilitate existing facilities; 2) three systems will become compliant with primary drinking water standards; 3) one system will receive an additional water source; 4) one system will make improvements to improve pressures; 5) five water systems will construct distribution to serve previously un-served areas; 6) two systems will construct back-up water supplies; and 7) one system will replace aging water meters with modern radio read meters.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2015 DWSRF Work Plan.

(Blank)

Appendices

Appendix A - Part 1A FFY-2015 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

FFY-2015 National Title I DWSRF Appropriation (Estimate) (Using FFY-2014 Amount)

$906,896,000

Mississippi's Allotment [section 1452(m)] (Estimate) (Using FFY-2014 Amount)

$9,159,000 FFY-2015 State Match Required (20% of Mississippi's Allotment) (Estimated) (Using FFY-2014 Amount)

$1,831,800 Total FFY-2015 Federal Allotment and Required State Match (Estimate):

$10,990,800 FFY-2015 Actual Funding (Federal and State)

**2014 Legislated State Match (Direct Appropriation from Legislature) + $1,000,000 **2014 Legislated State Match (Legislature authorized use of $2M in existing MSDH Fund – 02MS) + $2,000,000 **2014 Emergency Fund transfer (Remaining amount needed as State Match for remainder of the FFY-2013 Cap Grant & all of the FFY-2014 Cap Grant funds) + $180,000 Remaining Portion of FFY-2013 Cap Grant Balance Captured by 2014 Legislation (State Match $1,345,491) (FFY-2013 Cap Grant Completely Matched) + $6,727,455 FFY-2014 Cap Grant Funds (State Match = $1,831,800) (FFY-2014 Cap Grant completely matched by the 2014 Legislation & Emergency Fund Transfer) ($2,709 will remain from the Emergency Fund to be used for future matches) + $9,159,000 Total Federal and State Funds to be Available in FFY-2015:

$19,066,455 FFY-2014 Cap Grant Set-Asides

$1,931,204 Note: No FFY-2015 Cap Grant Funds or Set-asides are shown in this report in order to make this projection more realistic. State Match funds for Cap Grant funds normally will not be available until QTR1 of FFY-2016; therefore, the first portion of the FFY-2015 Cap Grant funds will not usually be received until QTR1 of FFY-2016.

Total Federal and State Funds available in FFY-2015

$19,066,455 Less FFY-2014 Set-asides - ($1,931,204) Total Federal & State Funds available for Loan Obligation in FFY-2015

$17,135,251 FFY-2015 DWSRF Funds Projections

Total Federal & State Funds available for Loan Obligation in FFY-2015 + $17,135,251 Unobligated Funds Carried Over from FFY-2014 + $9,574,696 Anticipated Loan Repayments To Be Deposited 10/1/14 - 9/30/15 + $11,246,675 Anticipated Interest on Fund To Be Deposited 10/1/14 – 9/30/15 + $406,307 Anticipated FFY-2015 Loan Decreases 10/1/14 - 9/30/15 + $0 Anticipated FFY-2015 Loan Increases 10/1/14 - 9/30/15 - ($0) FFY-2015 Loan Increase Reserve ($1.0m) - ($1,000,000) Total Funds Available for Loan Awards in FFY-2015 (Anticipated)

$37,363,325 Funds needed for Projects on the FFY-2015 Priority List & FFY-2016 After Planning List

($80,628,711) Additional Funds needed to fund all Anticipated Projects in FFY-2015

$43,265,386

Appendix A - Part 1A (Cont.) FFY-2015 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program

October 1, 2014

Mississippi will apply for the entire FFY-2015 Cap Grant if State match funds are provided by the Legislature. Cap Grant funds must be matched within 24 months of award.

• $380,448 was used to match the Set-asides ($1,902,240) of the FFY-2013 Cap Grant ($8,764,000). • $619,552 (the remainder of the $1M bond) was used to match $3,097,760 of the FFY-2012 Cap Grant, leaving a balance of $2,965,695 of the FFY-2012 Cap Grant to be matched.

In FY-2013, approval was received to use $620,000 from the Drinking Water Emergency Loan fund; the proceeds above the initial $5 M deposited by the State into the fund may be used for similar purposes.

• $593,139 was used to match the remainder ($2,965,695) of the FFY-2012 Cap Grant. • $26,861 was used to matched $134,305 of the remaining FFY-2013 Cap Grant; leaving a balance of $6,727,455 to be matched.

During the 2014 Regular Legislative Session, the Legislature authorized $1,000,000 in direct funding and the use of $2,000,000 in an existing MSDH account (02MS) for the DWSRF program. Additionally, $180,000 will be used from the Emergency Fund. These funds matched all outstanding grant funds; the FFY-2014 Cap Grant ($9,159,000) and the remainder of the FFY-2013 Cap Grant ($6,727,455). The $3,180,000 will be used as follows:

• $1,345,491 will match the remainder ($6,727,455) of the FFY-2013 Cap Grant. • $1,831,800 will match the FFY-2014 Cap Grant ($9,159,000), • $2,709 will remain to be use for future matches.

Appendix A - Part 2A FFY-2014 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

FFY-2014 National Title I DWSRF Appropriation (Actual)

$906,896,000

Mississippi's Allotment [section 1452(m)] (Actual FFY-2014) (Actual)

$9,159,000 FFY-2014 State Match Required (20% of Mississippi's Allotment) (Actual) + $1,831,800 Total FFY-2014 Federal Allotment and Required State Match (Actual):

$10,990,800 FFY-2014 Actual Funding (Federal and State)

**2013 Legislated State Match from Bonds (Received Dec 2013) + $1,000,000 Portion of FFY-2012 Cap Grant Captured by 2013 Legislation (State Match $619,552) + $3,097,760 FFY-2013 Cap Grant Set-asides Matched by the 2013 Bond Legislation (Set-aside State Match = $380,448) + $1,902,240 2013 Emergency Fund Transfer + $620,000 Portion of FFY-2012 Cap Grant Captured by Emergency Funds (Match $593,139) (FFY-2012 Cap Grant completely matched) + $2,965,695 FFY-2013 Cap Grant Funds Captured by Balance of Emergency Funds Used as State Match (Match $26,861) + $134,305 Total Federal and State Funds available in FFY-2014:

$9,720,000 FFY-2013 Federal Funds remaining to be captured and required State Match

FFY-2013 Cap Grant Balance to be captured by 2014 Legislation (Direct Authorization, Existing MSDH Account and Emergency Fund transfer)

$6,727,455 2014 Legislated Match Funds for the Remaining FFY-2013 Cap Grant Funds ($6,727,455)

$1,345,491 Total State Match needed for remaining FFY-2013 Federal Funds & FFY-2014 Cap Grant:

$3,177,291 FFY-2013 Cap Grant Set-Asides

$1,902,240 Total Federal & State Funds Available in FFY-2014

$9,720,000 Less FFY-2013 Set-asides - $1,902,240 Total FFY-2014 Federal and State Funds to be Available for Loan Obligation

$7,817,760 FFY-2014 DWSRF Funds & Repayments

Unobligated Funds Carried Over from FFY-2013 + $9,530,568 Federal & State Funds available in FFY-2014 + $7,817,760 Loan Repayments Deposited to the Fund (Actual) 10/1/13 - 9//30/14 + $12,269,097 Interest Deposited to the Fund (Actual) 10/1/13 - 9/30/14 + $443,681 FFY-2014 Loan Decreases (Actual) 10/1/13 - 9/30/14 + $1,711,306 FFY-2014 Loan Increases (Actual) 10/1/13 - 8/30/14 - ($60,802) FFY-2014 Loan Increase Reserve ($1.0m) - ($1,000,000) 2014 Projects Available for Loan Awards

$30,711,610 Loan Awards made during FFY-2014 (16 Initial Loans for $21,136,914)

($21,136,914) FFY-2014 Carryover Funds to FFY-2015

$9,574,696

Appendix A - Part 1B (Cont.) FFY-2014 End-of Year Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

Mississippi applied for the entire FFY-2014 Cap Grant ( Cap Grant Funds must be matched within 24 months of award).

During the 2014 Regular Legislative Session, the Legislature authorized $1,000,000 in direct funding and the use of $2,000,000 in an existing MSDH account for the DWSRF program. Additionally, $180,000 will be used from the Emergency Fund. These funds will match all outstanding grant funds; the FFY-2014 Cap Grant ($9,159,000) and the remainder of the FFY- 2013 Cap Grant ($6,727,455). The $3,180,000 will be used as follows:

• $1,345,491 will match the remainder ($6,727,455) of the FFY-2013 Cap Grant. • $1,831,800 will match the FFY-2014 Cap Grant ($9,159,000), • $2,709 will remain to be use for future matches.

Appendix B Part I Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2014 Set-aides Federal 1Q FFY-15 2Q FFY-15 3Q FFY-15 4Q FFY-15 Total Administrative $83,031 $83,031 $83,031 $83,031 $332,124 Small Sys. Tech Assist. $45,795 $45,795 $45,795 $45,795 $183,180 State Program Mgmt $228,975 $228,975 $228,975 $228,975 $915,900 Local Asst. & Other St. Programs $125,000 $125,000 $125,000 $125,000 $500,000 Total Set-asides $482,801 $482,801 $482,801 $482,801 $1,931,204

FFY-2015 Set-asides Federal 1Q FFY-16 2Q FFY-16 3Q FFY-16 4Q FFY-16 Total Administrative $80,041 $80,041 $80,041 $80,041 $320,164 Small Sys. Tech Assist. $45,795 $45,795 $45,795 $45,795 $183,180 State Program Mgmt $228,975 $228,975 $228,975 $228,975 $915,900 Local Asst. & Other St. Programs $125,000 $125,000 $125,000 $125,000 $500,000 Total Set-asides $479,811 $479,811 $479,811 $479,811 $1,919,214

FFY-2015 Set-asides will not be available for use until FFY-2016; in FFY-2015 the program will operate using the FFY 2014 Set-asides.

Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

Payment (LOC) Number Payment (LOC) Date Payment (LOC) Amount Cumulative (LOC) Amount FFY-2015 FFY-2014 Cap Grant No. 1 of 1 1 st Quarter FFY-2015 $1,931,204

$1,931,204 FFY-2014 Cap Grant No. 2 of 4 2nd Quarter FFY-2015 $1,806,949

$3,738,153 FFY-2014 Cap Grant No. 3 of 4 3rd Quarter FFY-2015 $3,613,898

$7,352,051 FFY-2014 Cap Grant No. 4 of 4 4th Quarter FFY-2015 $1,806,949

$9,159,000 FFY-2016

FFY-2015 Cap Grant No. 1 of 1 1 st Quarter FFY-2016 $1,931,204 $1,931,204 FFY-2015 Cap Grant No. 2 of 4 2nd Quarter FFY-2016 $1,806,949

$3,738,153

FFY-2015 Cap Grant No. 3 of 4 3rd Quarter FFY-2016 $3,613,898

$7,352,051

FFY-2015 Cap Grant No. 4 of 4 4th Quarter FFY-2016 $1,806,949

$9,159,000

Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

Outlay Quarter Federal Outlay Amount Cumulative Outlay Amount FFY-2015 1 st Quarter FFY-2015

$1,931,204

2nd Quarter FFY-2015

$1,806,949

$3,738,153

3rd Quarter FFY-2015

$3,613,898

$7,352,051

4th Quarter FFY-2015

$9,159,000

$9,159,000 FFY-2016 1 st Quarter FFY-2016

$1,931,204

$1,931,204 2nd Quarter FFY-2016

$1,806,949

$3,738,153 3rd Quarter FFY-2016

$3,613,898

$7,352,051 4th Quarter FFY-2016

$1,806,949

$9,159,000

Appendix E Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS A request for proposals (RFP) for the technical assistance contracts was published in the legal section of The Clarion-Ledger and proposals were received on May 10, 2013, from potential contractors. All proposals were evaluated by the Department and recommendations for award were presented to the Board (at a regularly scheduled Board meeting); all contracts were awarded.

All contracts cover a two-year period with an optional third year to be exercised at the Board’s discretion on July 1, 2015. The contracts for technical assistance currently are as follows: Small Systems Technical Assistance (long-term and intermediate technical assistance) - Community Resources Group; Board Management Training Monitoring and Coordination for Water System Officials - Mississippi State University Extension Service; Hands-On Operator Training - Mississippi Rural Water Association, Inc.; PEER Review Program for Public Water Supplies - Mississippi Rural Water Association, Inc.

PROGRAM ACTIVITIES The technical assistance program consists of four major categories of activities that will be accomplished through contracts with qualified organizations that are experienced in providing the type of support required by each activity. These categories may be updated and/or revised as a result of work plan reviews that will be conducted annually during the life of the program. Amendments will be submitted whenever activities or budgets change and when required to extend the term of the work plan.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of sixteen (16) small public water systems annually.

- Long-term technical assistance: Comprehensive assistance must be provided to a minimum of eight ( 8) small public water systems annually. The contractor will provide comprehensive assistance to at

least eight (8) public water systems per contract year. At the beginning of each contract year, the MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, eight ( 8) systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each of the eight ( 8) systems, and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. Eight (8) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Intermediate technical assistance projects will be counted toward the minimum sixteen (16) required comprehensive projects at a ratio of 2:1 (two intermediate projects will be the equivalent of one comprehensive project).

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

Coordination and Monitoring of Board Management Training for Water System Officials:

Section 41-26-101 of the Mississippi Code of 1972, Annotated, states “Each member elected or reelected after June 30, 1998, to serve on a governing board of any community public

water system, except systems operated by municipalities with a population greater than ten thousand (10,000), shall attend a minimum of eight (8) hours of management training within two (2) years following the election of that board member. If a board member has undergone training and is reelected to the board, that board member shall not be required to attend training. The management training shall be organized by the MSDH. The management training shall include information on water system management and financing, rate setting and structures, operations and maintenance, applicable laws and regulations, ethics, the duties and responsibilities of the association and other organizations. The Department shall develop and provide all training materials. To avoid board members having to interfere with their jobs or employment, management training sessions may be divided into segments and, to the greatest extent possible, shall be scheduled for evening sessions. The Department shall conduct management training on a regional basis.” The contractor shall: serve as the coordinator for MSDH in regards to all activities related to the implementation of the training program in the state; randomly attend training sessions to ensure the established curriculum is being followed and that the curriculum is relevant and effective; manage the Board Member Training Curriculum Review Committee; continue to update the established computerized database to accurately track the most current status of each board member attending the program; and other related duties.

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

The Contractor will provide practical, applied, “hands-on” training for public water system operators in the State of Mississippi. MSDH defines hands-on operator training for the purposes of this contract as training that provides functional instruction in the necessary skills and knowledge to be able to better fulfill the job requirements of a drinking water system operator. The hands-on training will include a comprehensive approach (lecture plus physical, hands-on sessions with equipment) for all operators attending the training. Trainings are to include equipment/props pertinent to the training topic(s) as a part of the training discussion.

Activity Objectives - Provide a minimum of sixteen (16) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of sixteen (16) peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

AGENCY RESPONSIBILITIES

The MSDH will conduct Small Systems Technical Assistance Set-aside activities through Board approved contracts with providers who will be selected following procedures of the State of Mississippi Personal Services Contract Procurement Regulations. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional FTE requirement is anticipated for state agencies to implement the provisions of this set-aside.

Appendix F Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After review of the Draft FFY-2015 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft FFY-2015 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996. After a 30-Day public comment period, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2015 IUP will be presented to the Board for adoption at their next scheduled Board meeting. The Final FFY-2015 IUP will be effective thirty days from the date of the Board’s adoption.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% ($915,900) of the FFY-2015 DWSRF capitalization grant as a set- aside for State Program Management activities of the PWSS Program. The reserved amount will offset the expenses of 8.33 positions of the PWSS Program.

Cost Breakdown Administrative/Staffing $547,285

Fringe Benefits $186,077

Travel $20,000

Contractual $40,800

Indirect Costs $121,738

Total Funding Amount $915,900

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects forty-four (44) FTEs will be required to implement the FFY-2015/2016 PWSS Program. A total of 8.33 FTEs will be funded by this set-aside. An estimated $733,362 will be reserved from the FFY-2015 DWSRF Capitalization Grant for salaries and fringe benefits for State Program Management activities.

This amount will fund salary and fringe benefits for the following positions:

Position

Quantity (FTE) EE III

1.0 EE IV

2.0 EIT

2.0 Eng. Admin. Super I 1.0 Environmental Admin. II

1.0 SPO IV

1.0 Division Director I 0.33

Total FTEs 8.33

The remaining $182,538 will be used for indirect costs, supplies, and possible contractual services for technical assistance needed to accomplish the requirements of the FFY- 2015/2016 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

Non-primacy Requirements

Capacity Development (CD) Program

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

reporting the state’s PWSS inventory at least annually to SDWIS/Fed; reporting the state’s violations and enforcement actions at least quarterly; participating in EPA/state data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Management System for Non-compliant Systems These activities include: overseeing and enforcing requirements of management systems for non-compliant systems; provide current versions of its enforcement response guide; assurances that the EPA has up-to-date information.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

Enforcement and Management of Significant Non-compliers (SNC’s) Activities of this auxiliary service include: overseeing and complying with the requirements of management significant non-compliers (SNC’s); and reporting the state’s response to instances of significant noncompliance at public water systems.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

SCHEDULE FOR COMPLETING ACTIVITIES The schedule for completing State Program activities under this work plan will be the schedule established by dates entered in the “Date Due” column of the MSDH PWSS Work plan.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

Appendix G Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

PROGRAM ACTIVITIES

SCHEDULE FOR COMPLETING ACTIVITIES

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

Appendix H Mississippi State Program Management Set-Aside Match Requirements - Mississippi 1:1 Requirement

FFY 1993 FFY-2015 PWSS Grant $769,600 $915,900 State Required Match for PWSS Grant $256,533 $915,900 Actual State PWSS Contribution $256,533 $3,264,627 State PWSS Overmatch $0 $2,348,727 State PWSS Expenditures Eligible for 1:1 SPM Match $128,266 $3,264,627 State PWSS Expenditures Claimed for 1:1 SPM Match $128,266 $915,900

Mississippi requests $915,900 of its FFY-2015 DWSRF Capitalization Grant be set-aside for State Program Management (SPM) to support Public Water Supply Supervision (PWSS) activities. To comply with the additional 1:1 match requirement for SPM set-asides, $915,900 in additional state funds will be required. The state will provide an estimated $2,348,727 above the state’s PWSS match requirement in FFY-2015. This contribution is provided through the collection of Water Quality Analysis Fees by the MSDH Bureau of Public Water Supply. In accordance with Section 1452(g)(2) of the SDWA of 1996, the state claims $915,900 from its FFY-2015 PWSS overmatch as credit to satisfy the $915,900 additional state match required to set-aside $915,900 of its FFY-2015 Capitalization Grant for SPM activities.

Appendix I Coordination Schedules for Jointly Funded Projects FFY-2015 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

These schedules are designed to help assure coordination between the DWSIRLF Program and the Appalachian Regional Commission (ARC) Grant Program, Community Development Block Grant (CDBG) Program, and Rural Utilities Service (RUS) Loan/ Grant Program. These schedules are, however, subject to change due to the timing of federal appropriations or program changes. Date(s) Schedule Item(s)/Deadline(s) ARC CDBG RUS* May 1, 2014 Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2014, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1, 2014 All FY-15 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2014** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding.** Oct, 2014 MS State Dept of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY-2015 ARC funding. MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-15 DWSIRLF funding. MS State Dept of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2015 CDBG funding. MS State Dept of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which indicate anticipated FY-2015 RUS funding Nov 15, 2014 MARO completes review of FY-2015 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A)

ARC CDBG RUS Nov 15-30, 2014 MARO notifies local Planning & Development Districts of projects that have been selected for the P1 (fundable priority list). MARO will copy MSDH on these notification letters if grantee has indicated that it is pursuing DWSIRLF loan funds for the project. MSDH will not award a DWSIRLF loan until this notification from MARO is provided. (N/A) (N/A) Oct 18, 2014 (N/A) CDBG program application workshops.*** (N/A) Nov, 2014 MSDH advertises Draft DWSIRLF FFY-2014 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY- 2014 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2014 Intended Use Plan for public comment. Dec 30, 2014 Deadline for all FY-2014 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A) Dec, 2014 Board adopts FFY-2014 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2015 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2014 until 8/2015 Board adopts FFY-2015 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20, 2015 (N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan, 2015 MSDH notifies MARO of projects included on final FFY-2014 Priority List that anticipate receiving FFY-2014 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2015 Priority List that anticipate receiving FFY-2015 CDBG funds.

MSDH notifies RUS of projects included on the final FFY-2015 Priority List that anticipate receiving FFY-2015 RUS funds.

ARC CDBG RUS Feb 1, 2015 MARO sends project applications to ARC- Washington to start final funding approval process. (N/A) (N/A) Feb 16, 2015 (N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2015 until 4:00 p.m. on 2/17/2015. (N/A) Feb- Jun, 2015 ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2015. (N/A) (N/A) Mar, 2015 (N/A) MDA provides notification to MSDH that complete CDBG applications have been received.

(N/A) May 1, 2015** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs.** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

ARC CDBG RUS May, 2015 (N/A) MDA provides notification to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. (NOTE: MSDH will not award a DWSIRLF loan until this notification from MDA is provided.) (N/A) Jun, 2015 MSDH provides notification to MARO that complete DWSIRLF loan applications have been received. MSDH provides notification to MDA that complete DWSIRLF loan applications have been received. MDA provides conformation to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. MSDH provides notification to RUS that complete DWSIRLF loan applications have been received. (Upon Grant Award) MARO provides notification to MSDH that ARC awards have been made. MDA provides notification to MSDH that CDBG awards have been made. RUS provides notification that RUS awards have been made Aug 1, 2015** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** May-Sep, 2015 Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the ARC award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the CDBG award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the RUS award amount to be applied to DWSIRLF eligible costs. If loan applicant desires DWSIRLF loan award prior to RUS award, loan applicant must provide MSDH with a copy of letter from RUS which states their project will be funded only contingent upon receipt of DWSIRLF matching funds. MSDH will not award a DWSIRLF loan until that notification from RUS is provided.

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year, and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year, and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: (601) 965-4566.

** FFY-2015 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

Appendix J Drinking Water Systems Emergency Loan Fund Program

Section 41-3- 16, Mississippi Code of 1972, as amended, created the Drinking Water Systems Emergency Loan Fund Program (DWSELF). This program provides loans to counties, municipalities, districts, or other (tax exempt) water organizations for emergency construction, repair, or replacement of drinking water facilities. This entirely state-funded loan program provides a ready funding source for such emergency projects without the federal cross-cutter requirements required in the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, thereby saving valuable time and expense. This Program eliminates the need to address emergency loans in the DWSIRLF. The Board encourages eligible water organizations throughout the state to utilize this program whenever emergency drinking water projects are needed.

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

Appendix K - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can also be found on the MSDH’s website at www.msdh.state.ms.us/dwsrf .

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the public hearing transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the FFY-2016 and After Planning List for the purpose of funding such a project during FFY- 2015 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

64 -

FINAL DRAFT STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 4: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FINAL DRAFT FFY-2015 INTENDED USE PLAN

Presented to the Board for Review and Comment on January 23, 2015 December 5, 2014

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

65 -

(Blank)

66 - FINAL DRAFT STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 4: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2015 INTENDED USE PLAN TABLE OF CONTENTS

I. INTRODUCTION

State of Mississippi’s Drinking Water State Revolving Fund
Program Overview
Public Input, Review, and Comment Procedures

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSEMS

IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF) PROGRAM

Basic Goals
Long-Term DWSIRLF Goals
Short-Term DWSIRLF Goals

III. STRUCTURE OF MISSISSIPPI DWSIRLF 9 A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:
Set-aside Accounts:

DWSIRLF State Match Funds
Drinking Water Systems Emergency Loan Fund (DWSELF)

IV. FINANCIAL STATUS OF THE DWSIRLF 10 A. Source and Use of Fund

Federal Allotment
State Match Requirements
Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management
Interest Rate Determination
Investment

C. Financial Terms of Loans

Funding Limit
Interest Rate
Administration Fee
FFY-2015 Appropriation Special Provisions
Other Related Issues

67 -
1. SET-ASIDE ACTIVITIES 16
2. Administration
3. Small System Technical Assistance
4. State Program Management
5. Local Assistance and Other State Programs

VI. PRIORITY SYSTEM 18 A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure
FFY-2015 Green Infrastructure Requirement
Loan Decreases
Match for Special Appropriations Project (SPAP) Grants
Subsidization from FFY-2015 Federal Appropriation

Priority System Categories
Priority Ranking Criteria
Priority System Deadlines

VII. FFY-2015 PRIORITY LIST 29 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 34

I. Introduction

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

B. Program Overview

C. Public Input, Review, and Comment Procedures

A public notice was given in The Clarion Ledger, a newspaper of statewide circulation, that an oral proceeding would be held at 9:00 a.m. on Thursday, January 22, 2015, to receive any written and oral comments on this IUP. Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, to receive any written and oral comments on this IUP. An oral proceeding A public hearing will be held at 9:00 a.m. on Thursday, January 22, 2015. A transcript of the oral proceeding public hearing, recording the comments and recommended solutions, will be submitted to EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding public hearing transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office, and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

A. Basic Goals

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.

Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY- 2012 the Program has been using the Local Assistance and Other State Programs set-asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.
Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.

Meet special funding goals: The FFY-2015 federal appropriation may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects: Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.
Set-aside Accounts: The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems through the current contractual services of the Community Resources Group (CRG), Mississippi State University – Extension Service (MSU-ES) and the Mississippi Rural Water Association (MsRWA). c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program.

d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program through current contractual services with the Mississippi Rural Water Association (MsRWA) and Mid- South Water, LLC.

B. DWSIRLF State Match Funds

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The FFY-2015 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment If the FFY-2015 Capitalization Grant for Mississippi is $9,159,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.22% state match funds to 79.78% federal grant funds; this requirement will be stated in the grant application.
State Match Requirements Until 2014 the state 20% match was provided through the sale of General Obligation bonds authorized by the State Legislature. The Legislature passed House Bill No. 209 to establish a Local Governments and Rural Water Systems Improvements Revolving Loan Program and authorized the sale of $15,000,000 in General Obligation Bonds which were deposited into the Fund. As stated in the law, one of the purposes for these funds is that, “All or any portion of the monies in the fund may be used to match any federal funds that are available for the same or related purposes for which funds are used and expended under this act.” Initially, $10,000,000 of these General Obligation bonds were sold in May of 1997 and the proceeds were deposited into the Fund on May 29, 1997. Later, the remaining $5,000,000 of the original bonding authority was sold and deposited into the Fund on October 5, 2000. • $3,294,840 was used as match for the FFY-1997 Cap grant, • $1,654,340 was used as match for the FFY-1998 Cap grant, • $1,733,900 was used as match for the FFY-1999 Cap grant, • $1,802,020 was used as match for the FFY-2000 Cap grant, • $1,809,480 was used as match for the FFY-2001 Cap grant, • $1,610,500 was used as match for the FFY-2002 Cap grant, • $1,600,820 was used as match for the FFY-2003 Cap grant, • $1,494,100 was used as match for $7,470,500 of the FFY-2004 Cap grant. During the Spring 2003 Legislative Session, the Legislature provided the Board with an additional $130,000 in bonding authority. Additionally, during the Spring 2004 Legislative Session, the Legislature authorized $1,613,000 in general obligation bonds. A total of $1,740,000 was deposited in the DWSIRL Fund during the 1 st Quarter of FFY-2005. • $129,776 was used as match for $648,880 of the FFY-2004 Cap grant. • $36,744 was used as match for $183,720 which was the remaining FFY- 2004 Cap grant. • $1,573,480 was used as match for $7,867,400 of the FFY-2005 Cap grant. During the 2006 Regular Legislative Session, the Legislature authorized the sale of general obligation bonds in the amount of $4,003,000, which were sold and deposited in the SRF Fund during the 1 st Quarter of FFY-2007. After paying the issuance cost of $2,128.26: • $83,620 was used to match the remaining $418,100 of the FFY-2005 Cap grant.

• $1,645,860 was used to match the FFY-2006 Cap grant ($8,229,300). • $1,645,800 was used to match the FFY-2007 Cap grant ($8,229,000). • $625,591 was used to match a portion ($3,127,955) of the FFY-2008 Cap grant. During the 2008 Regular Legislative Session, the State Legislature authorized an additional $4,000,000 in general obligation bonds which were sold and deposited into the Fund during the 1 st Quarter of FFY-2009. After paying issuance costs of $2,256.05: • $1,003,609 was used to match the remaining FFY-2008 Cap grant. • $1,629,200 was used to match the FFY-2009 Cap grant ($8,146,000). • $1,364,935 was used to match a portion of the FFY-2010 Cap grant or $6,824,675. During the 2010 Regular Legislative Session, the State Legislature authorized an additional $1,400,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2010. After paying issuance cost of $9,087: • $1,390,913 was used to match a portion ($6,954,566) of the FFY-2010 Cap grant. During the 2011 Regular Legislative Session, the State Legislature authorized an additional $2,700,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2011. After paying issuance and discount costs of $13,105: • $69,152 was used to match the remaining FFY-2010 Cap grant ($345,760). • $1,960,400 was used to match the FFY-2011 Cap grant (9,802,000). • $1,834 was used to match $9,166 which was transferred to DWSIRLF from the remaining balance of the MS Operator Certification Grant for making additional loans. • The remaining $655,509 was used to match $3,277,545 of the FFY-2012 capitalization grant leaving a balance of $6,063,455 to be matched. During the 2013 Regular Legislative Session, the State Legislature authorized an additional $1,000,000 in general obligation bonds. These bonds were sold and the funds were deposited into the DWSIRLF in December 2013. No issuance or discount costs were charged, therefore, the full $1,000,000 bond amount is available to match a portion ($1,902,240) of the FFY-2013 Cap grant and match a portion of ($3,097,760) of the remaining FFY-2012 Cap grant. The $1,000,000 state bond funds will be used as follows. • $380,448 will match the FFY-2013 Cap Grant Set-aside amount ($1,902,240). • $619,552 will match $3,097,760 of the remaining FFY-2012 Capitalization Grant. • $593,139 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will be used to complete the match of the remaining FFY- 2012 Capitalization Grant ($2,965,695). (That portion of the DWSELF which exceeds the $5,000,000 initially deposited in the fund may be used to match capitalization grant funds).

• $26,861 remaining from the $620,000 used from the DWSELF Fund will be used to match a portion ($134,305) of the FFY-2013 Cap Grant. During the 2014 Regular Legislative Session, the State Legislature authorized $1,000,000 in direct funding for the DWSRF program and the use of $2,000,000 in an existing MSDH account for the DWSRF program. Additionally, $180,000 was used from the Drinking Water Systems Emergency Loan Fund (DWSELF). The total of all the state match funds matched all outstanding EPA Grant funds; the remaining portion of the FFY-2013 Cap Grant ($6,727,455) and the total FFY-2014 Cap Grant ($9,159,000). The $3,180,000 of state funds was used as follows. • $1,345,491 matched the remainder of the FFY-2013 Cap Grant amount ($6,727,455). • $1,831,800 matched the FFY-2014 Capitalization Grant ($9,159,000). • $2,709 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will remain to be used as match for future Capitalization Grants. It is anticipated that the State Legislature will continue to provide a direct appropriation for the State’s 20% match portion of the FFY-2015 EPA Capitalization Grant. If this happens, the match amount would be $1,831,800 for an amount of $9,159,000.

Loan Increase Reserve Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the amount indicated in Appendix A for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be made available for new loan awards to the highest ranking project(s) that is ready for loan award at the time funds become available.

B. Financial Planning Process

Efficient Bond Management The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF Fund and shall be used as the state match for federal DWSRF Cap grants.

Interest Rate Determination It is the Board’s intention to adjust interest rates such that the demand will equal the funds available. In order to ensure that this interest rate will be at or below the prevailing market rates at the time a loan is made, this rate will be compared to the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield published by The Bond Market Association/ Bloomberg (Bloomberg Online, http://www.bloomberg.com/markets/rates/index.html).
Investment Investment Procedures for Excess Cash - According to the State Treasurer, the excess cash in the Fund is invested by the State Treasurer in securities prescribed in Section 27-105-33, et. Seq., of the Mississippi Code of 1972 Annotated, as amended. The securities in which state funds may be invested include certificates of deposit with qualified state depositories, repurchase agreements (fully secured by direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations), direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations, and any other open-ended or closed-ended management type investment company or investment trust registered under the provisions of 15 U.S.C. Section 80(a)-1 et. Seq, provided that the portfolio is limited to direct obligations issued by the United States of America, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations and to repurchase agreements fully collateralized by the securities listed above for repurchase agreements.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2015 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by vote of the Board. Furthermore, during FFY-2015, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2015 may obtain an additional award(s) or an increase to a previous FFY-2015 award, if no other eligible systems are evident.
Interest Rate

All loan terms will be at 1.95% annual interest rate, compounded monthly, with a maximum 20-year repayment period. The interest will not accrue during construction, but will commence at the date of completion of the original construction period.

Administration Fee Revenues to pay for Program administrative costs will be collected through an administration fee of 5% of the initial loan principal. This fee will be collected from the interest portion of loan repayments on all FFY-2015 loans.
FFY-2015 Appropriation Special Provisions The Federal 2015 appropriations bill has not been finalized and the final EPA FFY-2015 Cap Grant allotment amounts and any additional federal requirements are not known. It is anticipated that subsidization requirements will be required for the FFY-2015 Cap Grant; the subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The anticipated amount of subsidization is expected to be a minimum of 20% of the Cap Grant amount up to 30% of the Cap Grant amount. If the FFY-2015 Cap Grant is $9,159,000 the subsidization amount would be between $1,831,800 (20%) to $2,747,700 (30%) if the Cap Grant amount is $9,159,000. Furthermore, all loans made with all or part FFY-2015 federal appropriation funds are expected to include the Davis-Bacon Act requirements and may include the American Iron and Steel requirements. Appropriate language will be added to all FFY-2015 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement; however, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.
Other Related Issues a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds afforded through the FFY-2014 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. When the specifics of the FFY-2015 appropriation bill become known, the Board may set a limit on the total amount of grant funds that would be designated for additional subsidy. Once the limit of the appropriation subsidy funds has been reached for FFY-2015, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

b. Project Costs Eligibility: Eligible/allowable project costs will include those costs that are eligible, reasonable, necessary, and allocable to the project,

within the established project scope and budget, in conformance with the DWSIRLF regulations and approved by MSDH.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

V. Set-Aside Activities

asides from the FFY-2015 Local Assistance and Other State Programs appropriation, but reserves the right to make revisions to utilize additional funds from this set-aside.

A. Administration

Standard Capitalization Grant The state plans to reserve for use at a later date the 4% administrative set-aside from the FFY-2015 Capitalization Grant ($366,360); the state will use the 4% administrative set-aside amount previously reserved from the FFY-2003 Capitalization Grant ($320,164) by taking an equal amount from the FFY-2015 Capitalization Grant for the administration of the Program in FFY-2015. This change will decrease the total set-aside amount for the FFY-2015 Cap grant from $1,965,440 to $1,919,244. Costs beyond this set aside amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments.

B. Small System Technical Assistance

C. State Program Management

Program Management Set-aside Annual Work Plan included as Appendix G to this IUP. The state must provide a dollar-for-dollar match (100% match) for the Cap grant funds used for these activities. The dollar-for-dollar match is in addition to the twenty (20%) percent state match required for the Cap grant. The state is allowed to offset the 100% match requirement by claiming credit for State FFY-2015 PWSS expenditures that exceed the State’s FFY-2015 PWSS match requirement. The state is further allowed to use state FFY-2015 PWSS expenditures as a “coupon” to offset the 100% match requirement as long as this amount does not exceed the amount that can be claimed from FFY-2015 expenditures. The MSDH Bureau of Public Water Supply has elected to decline the “coupon” since it sees this as providing no additional monetary benefit to the State Program Management Program. A tabulation showing amount and source of funds to satisfy match requirements for the FFY-2015 State Program Management set-aside is furnished as Appendix H to this IUP.

D. Local Assistance and Other State Programs

The state intends to use $500,000 (5.46%) of the 15% set-aside amount which is allowed from the FFY-2015 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure Should any projects on the FFY-2015 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.
FFY-2015 Green Infrastructure Requirement The FFY-2015 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.

Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

Projects desiring to be classified as “green” will be judged for eligibility based on the guidance supplied by the EPA and that is available at our website www.healthyms.com/dwsrf. Systems desiring “Green Infrastructure” classification will be required to present a “business case” establishing justification for the classification request. Guidance for establishing a “business case” is available to assist potential loan recipients in preparation of the documentation.

Loan Decreases Any funds recovered from loan decreases during the year will be used:

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants On October 10, 2001, EPA issued policy memorandum DWSRF 02-01 to notify regions and states of a change in policy regarding the use of DWSRF monies for providing local match for SPAP grants. This change in EPA policy will allow the state to use non-federal, non-state match DWSIRLF funds to provide loans that can be used as local match for SPAP grants awarded for drinking water projects. These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non- federal, non-state match monies have been obligated or demand for such funds has been met.
Subsidization from FFY-2015 Federal Appropriation EPA is expected to mandate that a minimum of 20% but no more than 30% of the FFY-2015 Cap grant be provided as additional subsidization to disadvantaged communities. Based on the FFY-2015 grant amount of $9,159,000 the amount of subsidization will be between $1,831,800 and $2,747,700. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of

the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2014 may be awarded to projects eligible for PF in FFY-2015 and FFY-2016.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards

This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA (3) use consolidation with other systems to correct existing deficiencies and improve management; (4) take into consideration the system’s current capacity; (5) encourage participation in short-term and long-term technical assistance programs; and (6) encourage participation in the Drinking Water Needs Survey. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

Consolidation

Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2014, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

violation of the Priority System deadline and the project will be placed on the planning portion of the priority list. If the change is made after adoption of the IUP, funds reserved for this project may be released and made available to other projects.

This deadline also applies to all projects competing for released funds during FFY-2015 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2015 IUP.

By May 1, 2015, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2015 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2015 IUP.
By August 1, 2015, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2015 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2015 IUP.

VII. FFY-2015 Priority List FINAL DRAFT Fiscal Year - 2015 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List Category II: Previous Year Certified Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Mendenhall, City of Installation of 8" PVC 39114 6081 2504 $33,225 $209,050 $209,050 Wiggins, City of 1000 GPM Well/3,000 ft.8" Main/Seal Well 39577 1055 4747 $0 $0 $1,610,668 $1,819,718 Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 6020 10000 $0 $0 $412,000 $2,231,718 Yazoo, City of New Well/Water Distribution System 39194 2866 16400 $0 $0 $1,855,557 $4,087,275 Taylorsville, Town of New Water Well/Rehab Existing Storage Tank 39168 927 2000 $0 $0 $815,000 $4,902,275 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Duffee Water Assoc. Backup Well 39337 868 2617 $82,409 $746,307 $5,648,582 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Bear Creek Water Associations, Inc. Installation of 12" and 16" Water Mains 39046 7141 40000 $0 $0 $1,600,000 $7,248,582 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zi p Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Madison, City of Construction of 1Mil Gallon Storage Tank 39110 1664 13986 $0 $0 $2,800,895 $10,049,477 Brookhaven, City of Install Water Main/Rehab Existing Facilities 39602 1221 13300 $500,000 $3,925,130 $13,974,607 Jumpertown, Town of Water Dist. System Improvements 38829 574 1500 $0 $0 $938,060 $14,912,667 Tupelo, City of Upgrade Water Distribution System 38802 152 34500 $0 $0 $659,000 $15,571,667 Brookhaven, City of Water Distribution Extension 39602 133 12515 $0 $0 $3,000,000 $18,571,667 Tuesday, November 25, 2014 Page 1 of 2

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2015 based on the funds authorized and provided by the 2014 Legislature; obtaining the remainder of the FFY-2013 Federal Capitalization Grant and the FFY-2014 Federal Capitalization Grant which are supplied by EPA; and repayments and interest on previous loans. The funding available in FFY-2015 should equal $37,363,325. ** Currently, the requirements of additional subsidization are unknown. Once the final federal appropriation with related requirements is made, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. CPF – Cumulative Principal Forgiveness CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency.

Tuesday, November 25, 2014 Page 2 of 2

FINAL DRAFT Fiscal Year - 2016 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2014 deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.)

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2015 based on the funds authorized and provided by the 2014 Legislature; obtaining the remainder of the FFY-2013 Federal Capitalization Grant and the FFY-2014 Federal Capitalization Grant which are supplied by EPA; and repayments and interest on previous loans. The funding available in FFY-2015 should equal $37,363,325. **Currently, the requirements of additional subsidization are unknown. Once it has been determined by the final federal appropriation, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. DW – Drinking Water System Improvement Revolving Loan Fund – includes repayments, interest and FFY-2014 Capitalization Grant.

VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2015 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

two systems will continual projects to upgrade or rehabilitate existing facilities; 2) three systems will become compliant with primary drinking water standards; 3) one system will receive an additional water source; 4) one system will make improvements to improve pressures; 5) five water systems will construct distribution to serve previously un-served areas; 6) two systems will construct back-up water supplies; and 7) one system will replace aging water meters with modern radio read meters.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2015 DWSRF Work Plan.

(Blank)

Appendices

100

Appendix A - Part 1A FFY-2015 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

FFY-2015 National Title I DWSRF Appropriation (Estimate) (Using FFY-2014 Amount)

$906,896,000

Mississippi's Allotment [section 1452(m)] (Estimate) (Using FFY-2014 Amount)

$9,159,000 FFY-2015 State Match Required (20% of Mississippi's Allotment) (Estimated) (Using FFY-2014 Amount)

$1,831,800 Total FFY-2015 Federal Allotment and Required State Match (Estimate):

$10,990,800 FFY-2015 Actual Funding (Federal and State)

$19,066,455 FFY-2014 Cap Grant Set-Asides

Total Federal and State Funds available in FFY-2015

$19,066,455 Less FFY-2014 Set-asides - ($1,931,204) Total Federal & State Funds available for Loan Obligation in FFY-2015

$17,135,251 FFY-2015 DWSRF Funds Projections

$37,363,325 Funds needed for Projects on the FFY-2015 Priority List & FFY-2016 After Planning List

($80,628,711) Additional Funds needed to fund all Anticipated Projects in FFY-2015

$43,265,386

101

Appendix A - Part 1A (Cont.) FFY-2015 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program

October 1, 2014

Mississippi will apply for the entire FFY-2015 Cap Grant if State match funds are provided by the Legislature. Cap Grant funds must be matched within 24 months of award.

• $1,345,491 will match the remainder ($6,727,455) of the FFY-2013 Cap Grant. • $1,831,800 will match the FFY-2014 Cap Grant ($9,159,000), • $2,709 will remain to be use for future matches.

102

Appendix A - Part 2A FFY-2014 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

FFY-2014 National Title I DWSRF Appropriation (Actual)

$906,896,000

Mississippi's Allotment [section 1452(m)] (Actual FFY-2014) (Actual)

$9,159,000 FFY-2014 State Match Required (20% of Mississippi's Allotment) (Actual) + $1,831,800 Total FFY-2014 Federal Allotment and Required State Match (Actual):

$10,990,800 FFY-2014 Actual Funding (Federal and State)

$9,720,000 FFY-2013 Federal Funds remaining to be captured and required State Match

FFY-2013 Cap Grant Balance to be captured by 2014 Legislation (Direct Authorization, Existing MSDH Account and Emergency Fund transfer)

$6,727,455 2014 Legislated Match Funds for the Remaining FFY-2013 Cap Grant Funds ($6,727,455)

$1,345,491 Total State Match needed for remaining FFY-2013 Federal Funds & FFY-2014 Cap Grant:

$3,177,291 FFY-2013 Cap Grant Set-Asides

$1,902,240 Total Federal & State Funds Available in FFY-2014

$9,720,000 Less FFY-2013 Set-asides - $1,902,240 Total FFY-2014 Federal and State Funds to be Available for Loan Obligation

$7,817,760 FFY-2014 DWSRF Funds & Repayments

Unobligated Funds Carried Over from FFY-2013 + $9,530,568 Federal & State Funds available in FFY-2014 + $7,817,760 Loan Repayments Deposited to the Fund (Actual) 10/1/13 - 9//30/14 + $12,269,097 Interest Deposited to the Fund (Actual) 10/1/13 - 9/30/14 + $443,681 FFY-2014 Loan Decreases (Actual) 10/1/13 - 9/30/14 + $1,711,306 FFY-2014 Loan Increases (Actual) 10/1/13 - 8/30/14 - ($60,802) FFY-2014 Loan Increase Reserve ($1.0m) - ($1,000,000) 2014 Projects Available for Loan Awards

$30,711,610 Loan Awards made during FFY-2014 (16 Initial Loans for $21,136,914)

($21,136,914) FFY-2014 Carryover Funds to FFY-2015

$9,574,696

103

Appendix A - Part 1B (Cont.) FFY-2014 End-of Year Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

Mississippi applied for the entire FFY-2014 Cap Grant ( Cap Grant Funds must be matched within 24 months of award).

• $1,345,491 will match the remainder ($6,727,455) of the FFY-2013 Cap Grant. • $1,831,800 will match the FFY-2014 Cap Grant ($9,159,000), • $2,709 will remain to be use for future matches.

104

Appendix B Part I Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2015 Set-asides will not be available for use until FFY-2016; in FFY-2015 the program will operate using the FFY 2014 Set-asides.

105

Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

Payment (LOC) Number Payment (LOC) Date Payment (LOC) Amount Cumulative (LOC) Amount FFY-2015 FFY-2014 Cap Grant No. 1 of 1 1 st Quarter FFY-2015 $1,931,204

$1,931,204 FFY-2014 Cap Grant No. 2 of 4 2nd Quarter FFY-2015 $1,806,949

$3,738,153 FFY-2014 Cap Grant No. 3 of 4 3rd Quarter FFY-2015 $3,613,898

$7,352,051 FFY-2014 Cap Grant No. 4 of 4 4th Quarter FFY-2015 $1,806,949

$9,159,000 FFY-2016

FFY-2015 Cap Grant No. 1 of 1 1 st Quarter FFY-2016 $1,931,204 $1,931,204 FFY-2015 Cap Grant No. 2 of 4 2nd Quarter FFY-2016 $1,806,949

$3,738,153

FFY-2015 Cap Grant No. 3 of 4 3rd Quarter FFY-2016 $3,613,898

$7,352,051

FFY-2015 Cap Grant No. 4 of 4 4th Quarter FFY-2016 $1,806,949

$9,159,000

106

Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

Outlay Quarter Federal Outlay Amount Cumulative Outlay Amount FFY-2015 1 st Quarter FFY-2015

$1,931,204

2nd Quarter FFY-2015

$1,806,949

$3,738,153

3rd Quarter FFY-2015

$3,613,898

$7,352,051

4th Quarter FFY-2015

$9,159,000

$9,159,000 FFY-2016 1 st Quarter FFY-2016

$1,931,204

$1,931,204 2nd Quarter FFY-2016

$1,806,949

$3,738,153 3rd Quarter FFY-2016

$3,613,898

$7,352,051 4th Quarter FFY-2016

$1,806,949

$9,159,000

107

Appendix E Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS A request for proposals (RFP) for the technical assistance contracts was published in the legal section of The Clarion-Ledger and proposals were received on May 10, 2013, from potential contractors. All proposals were evaluated by the Department and recommendations for award were presented to the Board (at a regularly scheduled Board meeting); all contracts were awarded.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of sixteen (16) small public water systems annually.

- Long-term technical assistance: Comprehensive assistance must be provided to a minimum of eight ( 8) small public water systems annually. The contractor will provide comprehensive assistance to at

108

least eight (8) public water systems per contract year. At the beginning of each contract year, the MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, eight (8) systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each of the eight (8) systems, and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. Eight (8) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

Coordination and Monitoring of Board Management Training for Water System Officials:

Section 41-26-101 of the Mississippi Code of 1972, Annotated, states “Each member elected or reelected after June 30, 1998, to serve on a governing board of any community public

109

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

110

Activity Objectives - Provide a minimum of sixteen (16) hands-on operator training sessions within the year.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

AGENCY RESPONSIBILITIES

111

Appendix F Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

FUNDING AMOUNT (Standard Capitalization Grant)

Cost Breakdown Administrative/Staffing $547,285

Fringe Benefits $186,077

Travel $20,000

Contractual $40,800

Indirect Costs $121,738

Total Funding Amount $915,900

112

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

This amount will fund salary and fringe benefits for the following positions:

Position

Quantity (FTE) EE III

1.0 EE IV

2.0 EIT

2.0 Eng. Admin. Super I 1.0 Environmental Admin. II

1.0 SPO IV

1.0 Division Director I 0.33

Total FTEs 8.33

The remaining $182,538 will be used for indirect costs, supplies, and possible contractual services for technical assistance needed to accomplish the requirements of the FFY- 2015/2016 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

113

Non-primacy Requirements

Capacity Development (CD) Program

114

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

115

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

116

Appendix G Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

PROGRAM ACTIVITIES

117

SCHEDULE FOR COMPLETING ACTIVITIES

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

118

Appendix H Mississippi State Program Management Set-Aside Match Requirements - Mississippi 1:1 Requirement

119

Appendix I Coordination Schedules for Jointly Funded Projects FFY-2015 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

120

MSDH notifies RUS of projects included on the final FFY-2015 Priority List that anticipate receiving FFY-2015 RUS funds.

121

122

123

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year, and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year, and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: (601) 965-4566.

** FFY-2015 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

124

Appendix J Drinking Water Systems Emergency Loan Fund Program

Section 41-3- 16, Mississippi Code of 1972, as amended, created the Drinking Water Systems Emergency Loan Fund Program (DWSELF). This program provides loans to counties, municipalities, districts, or other (tax exempt) water organizations for emergency construction, repair, or replacement of drinking water facilities. This entirely state-funded loan program provides a ready funding source for such emergency projects without the federal cross-cutter requirements required in the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, thereby saving valuable time and expense. This Program eliminates the need to address emergency loans in the DWSIRLF. The Board encourages eligible water organizations throughout the state to utilize this program whenever emergency drinking water projects are needed.

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

125

Appendix K - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can also be found on the MSDH’s website at www.msdh.state.ms.us/dwsrf .

An oral proceeding public hearing will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the public hearing transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

126

The state certifies that prior to adding any new projects to the FFY-2016 and After Planning List for the purpose of funding such a project during FFY- 2015 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) str ategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

Part 5 Part 5: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 5, R. 1000 GPM Well/3,000 ft.8" Main/Seal Well

39577

$1,610,668

$1,819,718

Category III: Primary Drinking Water Standards Proj ects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$412,000

$2,231,718

Yazoo, City of

New Well/Water Distribution System

39194

16400

$1,855,557

$4,087,275

Taylorsville, Town of

New Water Well/Rehab Existing Storage Tank

39168

$815,000

$4,902,275

Category IV: One Well Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Duffee Water Assoc.

Backup Well

39337

$82,409

$746,307

$5,648,582

Category V: Pressure Deficiencies Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Bear Creek Water Associations, Inc.

Installation of 12" and 16" Water Mains

39046

40000

$1,600,000

$7,248,582

Natchez, City of

New 500,000 Ga. Tank/Distribution Lines

39120

18340

$418,950

$1,675,800

$8,924,382

Category VII: System Capacity Expansion to Serve Ex isting Unserved Residences/Businesses

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Madison, City of

Construction of 1Mil Gallon Storage Tank

39110

13986

$2,800,895

$11,725,277

Jumpertown, Town of

Water Dist. System Improvements

38829

$938,060

$12,663,337

Tupelo, City of

Upgrade Water Distribution System

38802

34500

$659,000

$13,322,337

Brookhaven, City of

Water Distribution Extension

39602

12515

$3,000,000

$16,322,337

Wednesday, September 16, 2015

Page 1 of 2

Category VIII: Back-up Water Supply Sources Project s

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Winona, City of

New Water Well

38967

$140,875

$402,500

$16,724,837

Magee's Creek W/A

Construct New 150,000 Gal. Tank/Treatment

39667

$438,550

$1,253,000

$17,977,837

Category IX: Existing Facilities Upgrade (Meeting P rimary Standards)

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Lumberton, City of

Replace/Upgrade Water Mains

39455

$276,975

$1,107,900

$19,085,737

Wednesday, September 16, 2015

Page 2 of 2

FINAL

Fiscal Year - 2016 and After Planning List

Mississippi Drinking Water Systems Improvements Rev olving Loan Fund Program

(Projects included on the Planning List did not mee t the September 30, 2014 deadline for submission of a complete facilities plan, or had multiple reques ts and asked to

be placed on the Planning List. These projects ha ve been ranked on the Planning List based on inform ation provided on the Request for Ranking Form. A

determination of project eligibility cannot be comp leted until the facilities plan has been submitted and reviewed.)

Category II: Previous Year Certified Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Mendenhall, City of

New 500 GPM Well/250,000 Gal Tank/Treatment

39114

$138,750

$2,634,100

Category III: Primary Drinking Water Standards Proj ects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$470,000

$3,104,100

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$586,000

$3,690,100

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$586,000

$4,276,100

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$702,000

$4,978,100

Okatoma Water Association

New Well/Elevated Tank/Treatment System

38911

$1,545,000

$6,523,100

Bude, Town of

New Well/Water System Improvements

39630

$500,000

$1,643,000

$8,166,100

Category IV: One Well Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Center Water Association, Inc.

Construct 200,000 Gal Elevated Tank/Rehab Well

39426

$908,500

$9,074,600

Category V: Pressure Deficiencies Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Carthage, City of

Upgrade Booster Station's Controls

39051

103189

$5,000

$20,000

$9,094,600

Carthage, City of

Upgrade and Replace Water Mains, Booster Station

39051

$67,500

$250,000

$9,344,600

Clayton Village Water Association,

New Generator/Upgrade Existing System

39759

$137,550

$393,000

$9,737,600

Forest, City of

Rehab Existing Storage Tank

39074

$283,750

$1,135,000

$10,872,600

Aberdeen, City of

33 Miss. Admin. Code Pt. 5, R. 400 Rule 400

GPM Well/100,000 Gal. Elev.Tank/Rehab

39730

$370,487

$1,481,949

$12,354,549

Forest, City of

New 900 GPM Well

39074

$400,000

$1,600,000

$13,954,549

Monday, September 14, 2015

Page 1 of 3

Guntown, City of

Water Sys. Improvements/Valves/Lines/Meters

38849

$975,000

$14,929,549

Ridgeland, City of

New 1,600 GPM Well/500,000 Gallon Tank

39158

24000

$3,434,404

$18,363,953

Ridgeland, City of

Two 1,600 GPM Ser. Pumps/Rehab Current

39158

24000

$4,840,000

$23,203,953

Category VI: Source Water Protection Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Walnut, Town of

Installation of Water Lines/2 Master water Meters

38683

$256,000

$23,459,953

Category VII: System Capacity Expansion to Serve Ex isting Unserved Residences/Businesses

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Batesville, City of

Installation of Water lines

38606

31582

$37,500

$125,000

$23,584,953

Batesville, City of

Installation of Water Lines

38606

26319

$37,500

$150,000

$23,734,953

Ridgeland, City of

Enhance Distribution System/Install 12 in. Lines

39157

15710

24000

$830,375

$24,565,328

Batesville, City of

Rehab/Replacement of Existing Facilities

38606

14356

$68,750

$275,000

$24,840,328

Batesville, City of

Rehab Existing Facilities

38606

11279

$87,500

$350,000

$25,190,328

Batesville, City of

Rehab Existing Facilities

38606

$102,500

$410,000

$25,600,328

Pearl, City of

Water System Improv./Well Trans. Lines/Standpipe

39208

26232

$1,150,000

$26,750,328

Batesville, City of

500,000 Gallon Elevated Tank

38606

$187,500

$750,000

$27,500,328

Bay Springs, Town of

New 1,000 GPM Well

39422

$340,010

$617,000

$28,117,328

Southeast Rankin Water Assn., Inc.

New Water Well/Water Distribution System

39151

$1,154,000

$29,271,328

SE Greene Water Authority

Upgrade Existing Distribution System

39452

$2,649,569

$31,920,897

Helena Utility District

Enhance Water Distribution System

39562

$1,883,000

$33,803,897

Nicholson Water & Sewer Assn.

Installation of Approx. 10,400 L.F. of Water Main

39463

$270,450

$1,803,000

$35,606,897

Funding Line $37,363,325

Jackson County Utility Authority

Water Distribution System Improvements

39567

$6,250,000

$41,856,897

Category VIII: Back-up Water Supply Sources Project s

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Batesville, City of

New 750 GPM Well

38606

$125,000

$500,000

$42,356,897

Batesville, City of

Rehab Existing Infrastructure

38606

$125,000

$500,000

$42,856,897

Old River Water Association, Inc.

Installation of New Remote Read Meter

39669

$477,600

$43,334,497

Ridgeland, City of

1,600 GPM Potable Water Well

39158

24000

$2,189,300

$45,523,797

North Lauderdale Water Assn.

New 500,000 Gal. Elevated Tank/Replace

39320

10000

$1,562,200

$47,085,997

Hilldale Water Association, Inc

300,000 Gal. Elevated Tank

39180

$1,184,490

$48,270,487

Monday, September 14, 2015

Page 2 of 3

Hazlehurst, City of

New Well & Raw Water Line

39083

$375,000

$1,500,000

$49,770,487

Mt. Gilead-Improve Water Assoc.

New Water Treatment Plant/Elevated Tank Rehab

39429

$1,357,400

$51,127,887

Horn Lake, City of

New Well/Tank Upgrade Existing Facility

38637

$2,474,600

$53,602,487

Marion, Town of

33 Miss. Admin. Code Pt. 5, R. 600 Rule 600

GPM Tr. Facil/600 GPM Well/Generator

39342

$500,000

$2,748,800

$56,351,287

Category IX: Existing Facilities Upgrade (Meeting P rimary Standards)

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Carthage, City of

Backup Generator

39051

20638

$25,000

$100,000

$56,451,287

Ridgeland, City of

Upgrade/Replace Existing Water Lines

39157

18530

24000

$704,000

$57,155,287

Carthage, City of

Install Generator/Upgrade Existing Facilities

39051

12140

$42,500

$170,000

$57,325,287

Ridgeland, City of

Water Line Relocation

39158

10108

24000

$793,400

$58,118,687

Collins, Town of

Water Line Replacement

39428

$48,664

$139,040

$58,257,727

Collins, Town of

Water Line Replacement

39428

$55,300

$158,000

$58,415,727

Collins, Town of

Water Line Replacement

39428

$55,300

$158,000

$58,573,727

West Point, City of

Upgrade SCADA/Chlorine Analyzer/Paint 5

39773

16500

$217,500

$870,000

$59,443,727

Grenada, City of

2 500 GPM Wells/500,000 Gallon Elevated Tank

38901

22951

$500,000

$2,202,700

$61,646,427

Mount Olive, Town of

Replacement of Water Lines

39119

$80,962

$231,320

$61,877,747

Alcorn Co. Water Association

300,000 Gal Storage Tank/upgrade Facilities

38834

$190,965

$1,273,101

$63,150,848

Alcorn Co. Water Association

Renovate Elevated tanks/Replace Water Lines

38834

$130,938

$872,920

$64,023,768

Edwards, Town of

Construction of Ozone Treatment Facility

39066

$235,500

$1,570,000

$65,593,768

Category XIII: Other

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

NTS Utility Assoc.

Radio Read Meters

39307

$432,845

$66,026,613

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2015 based on the funds authorized and provided by the 2

Legislature; obtaining the FFY-2015 Federal Capital ization Grant which is supplied by EPA; and repayme nts and interest on previous loans. The funding available in FFY-2015 should equal $37,363,325. Funding Sources PF – Principal Forgiveness – Method of Subsidizat ion the state has elected to use.

CPF – Cumulative Principal Forgiveness

This determination of Green Infrastructure will be based on guidelines supplied by the Environmental P rotection Agency. Monday, September 14, 2015

Page 3 of 3

VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2015 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2015 IUP and funding projects shown on the FFY-2015 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2015. If the full Cap grant occurs, the public health protection outcomes resulting from the funding of the projects on the priority list will be: 1) two systems will continual projects to upgrade or rehabilitate existing facilities; 2) three systems will become compliant with primary drinking water standards; 3) one system will receive an additional water source; 4) one system will make improvements to improve pressures; 5) five water systems will construct distribution to serve previously un-served areas; 6) two systems will construct back-up water supplies; and 7) one system will replace aging water meters with modern radio read meters.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2015 DWSRF Work Plan.

(Blank)

Appendices

Appendix A - Part 1A FFY-2015 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

FFY-2015 National Title I DWSRF Appropriation (Estimate) (Using FFY-2014 Amount) $906,896,000 * Mississippi's Allotment [section 1452(m)] (Estimate) (Using FFY-2014 Amount) $9,159,000 FFY-2015 State Match Required (20% of Mississippi's Allotment) (Estimated) (Using FFY-2014 Amount) + $1,831,800 Total FFY-2015 Federal Allotment and Required State Match (Estimate): $10,990,800 FFY-2015 Actual Funding (Federal and State)

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2004) + $332,124 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $183,180 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~5.2%) + $500,000 State Program Management [section 1452(g)(2) -10%] + $915,900 Total FFY-2013 Cap Grant Set-Asides: $1,931,204 Note: No FFY-2015 Cap Grant Funds or Set-asides are shown in this report in order to make this projection more realistic. State Match funds for Cap Grant funds normally will not be available until QTR1 of FFY-2016; therefore, the first portion of the FFY-2015 Cap Grant funds will not usually be received until QTR1 of FFY-2016.

Total Federal and State Funds available in FFY-2015 $19,066,455 Less FFY-2014 Set-asides - ($1,931,204) Total Federal & State Funds available for Loan Obligation in FFY-2015 $17,135,251 FFY-2015 DWSRF Funds Projections

Appendix A - Part 1A (Cont.) FFY-2015 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program

October 1, 2014

Mississippi will apply for the entire FFY-2015 Cap Grant if State match funds are provided by the Legislature. Cap Grant funds must be matched within 24 months of award.

During the 2014 Regular Legislative Session, the State Legislature (House Bill No. 1495) authorized $1,000,000 in direct funding for the DWSRF program and the use of $2,000,000 in an existing MSDH account for the DWSRF program. Additionally, $180,000 was used from the Drinking Water Systems Emergency Loan Fund (DWSELF). The total of all the state match funds matched all outstanding EPA Grant funds; the remaining portion of the FFY-2013 Cap Grant ($6,727,455) and the total FFY-2014 Cap Grant ($9,159,000). The $3,180,000 of state funds was used as follows. • $1,345,491 matched the remainder of the FFY-2013 Cap Grant amount ($6,727,455). • $1,831,800 matched the FFY-2014 Capitalization Grant ($9,159,000). • $2,709 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will remain to be used as match for future Capitalization Grants. During the 2015 Regular Legislative Session, the State Legislature (House Bill No. 1555) authorized $1,200,000 in direct funding for the DWSRF program; however, due to a shortfall in state funds the authorized $1,200,000 was reduced to $1,100,479.80. Using the revised legislated fund amount, the remainder ($2,709) of state match funds from FFY-2014 and $728,611.20 from the Drinking Water Systems Emergency Loan Fund (DWSELF), the entire

required amount ($1,831,800) for the state match will be provided for the EPA FFY-2015 Cap Grant ($9,159,000). The $1,183,800 in state match funds will be used as follows. • $1,831,800 will match the complete FFY-2015 Capitalization Grant ($9,159,000).

Appendix A - Part 2A FFY-2014 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

FFY-2014 National Title I DWSRF Appropriation (Actual) $906,896,000 * Mississippi's Allotment [section 1452(m)] (Actual FFY-2014) (Actual) $9,159,000 FFY-2014 State Match Required (20% of Mississippi's Allotment) (Actual) + $1,831,800 Total FFY-2014 Federal Allotment and Required State Match (Actual): $10,990,800 FFY-2014 Actual Funding (Federal and State)

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] + $350,560 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $175,280 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~5.2%) + $500,000 State Program Management [section 1452(g)(2) -10%] + $876,400 Total FFY-2013 Cap Grant Set-Asides: $1,902,240 Total Federal & State Funds Available in FFY-2014 $9,720,000 Less FFY-2013 Set-asides - $1,902,240 Total FFY-2014 Federal and State Funds to be Available for Loan Obligation $7,817,760 FFY-2014 DWSRF Funds & Repayments

Unobligated Funds Carried Over from FFY-2013 + $9,530,568 Federal & State Funds available in FFY-2014 + $7,817,760 Loan Repayments Deposited to the Fund (Actual) 10/1/13 - 9//30/14 + $12,269,097 Interest Deposited to the Fund (Actual) 10/1/13 - 9/30/14 + $443,681 FFY-2014 Loan Decreases (Actual) 10/1/13 - 9/30/14 + $1,711,306 FFY-2014 Loan Increases (Actual) 10/1/13 - 8/30/14 - ($60,802) FFY-2014 Loan Increase Reserve ($1.0m) - ($1,000,000) 2014 Projects Available for Loan Awards $30,711,610 Loan Awards made during FFY-2014 (16 Initial Loans for $21,136,914) ($21,136,914) FFY-2014 Carryover Funds to FFY-2015 $9,574,696

Appendix A - Part 1B (Cont.) FFY-2014 End-of Year Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2014

Mississippi applied for the entire FFY-2014 Cap Grant (Cap Grant Funds must be matched within 24 months of award).

Appendix B Part I Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides FFY-2014 Set-aides Federal 1Q FFY-15 2Q FFY-15 3Q FFY-15 4Q FFY-15 Tot al Administrative $83,031 $83,031 $83,031 $83,031 $332 ,124 Small Sys. Tech Assist. $45,795 $45,795 $45,795 $45 ,795 $183,180 State Program Mgmt $228,975 $228,975 $228,975 $228,

$915,900 Local Asst. & Other St. Programs $125,000 $125,000 $125,000 $125,000 $500,000 Total Set-asides

$482,801 $482,801 $482,801 $482,801 $1,931,204

FFY-2015 Set-asides

Federal 1Q FFY-16 2Q FFY-16 3Q FFY-16 4Q FFY-16 Tot al Administrative $80,041 $80,041 $80,041 $80,041 $320 ,164 Small Sys. Tech Assist. $45,795 $45,795 $45,795 $45 ,795 $183,180 State Program Mgmt $228,975 $228,975 $228,975 $228,

$915,900 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides

$542.311 $542.311 $542.311 $542.311 $2,169,244 FFY-2015 Set-asides will not be available for use u ntil FFY-2016; in FFY-2015 the program will operate using the FFY 2014 Set-asides.

Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

Payment (LOC) Number Payment (LOC) Date Payment (LOC) Amount Cumulative (LOC) Amount FFY-2015 FFY-2014 Cap Grant No. 1 of 1

st Quarter FFY-2015 $1,931,204

$1,931,204 FFY-2014 Cap Grant No. 2 of 4 2nd Quarter FFY-2015 $1,806,949

$3,738,153 FFY-2014 Cap Grant No. 3 of 4 3rd Quarter FFY-2015 $3,613,898

$7,352,051 FFY-2014 Cap Grant No. 4 of 4 4th Quarter FFY-2015 $1,806,949

$9,159,000 FFY-2016

FFY-2015 Cap Grant No. 1 of 1

st Quarter FFY-2016 $2,169,244 $2,169,244 FFY-2015 Cap Grant No. 2 of 4 2nd Quarter FFY-2016 $1,747,439 $3,916,683 FFY-2015 Cap Grant No. 3 of 4 3rd Quarter FFY-2016 $3,494,878 $7,411,561 FFY-2015 Cap Grant No. 4 of 4 4th Quarter FFY-2016 $1,747,439 $9,159,000

Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

Outlay Quarter Federal Outlay Amount Cumulative Outlay Amount FFY-2015

st Quarter FFY-2015

$1,931,204

2nd Quarter FFY-2015

$1,806,949

$3,738,153

3rd Quarter FFY-2015

$3,613,898

$7,352,051

4th Quarter FFY-2015

$9,159,000

$9,159,000 FFY-2016

st Quarter FFY-2016

$2,169,244

$2,169,244 2nd Quarter FFY-2016

$1,747,439

$3,916,683 3rd Quarter FFY-2016

$3,494,878

$7,411,561 4th Quarter FFY-2016

$1,747,439

$9,159,000

Appendix E Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS A request for proposals (RFP) for the technical assistance contracts was published in the legal section of The Clarion-Ledger and proposals were received on May 10, 2013, from potential contractors. All proposals were evaluated by the Department and recommendations for award were presented to the Board (at a regularly scheduled Board meeting); all contracts were awarded.

The Board plans to exercise the option for the third year which will extend the contracts to June 30, 2016.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of sixteen (16) small public water systems annually.

- Long-term technical assistance: Comprehensive assistance must be provided to a minimum of eight (8) small public water systems annually. The contractor will provide comprehensive assistance to at least eight (8) public water systems per contract year. At the beginning of each contract year, the MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, eight (8) systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each of the eight (8) systems, and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. Eight (8) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

Coordination and Monitoring of Board Management Training for Water System Officials:

Section 41-26-101 of the Mississippi Code of 1972, Annotated, states “Each member elected or reelected after June 30, 1998, to serve on a governing board of any community public water system, except systems operated by municipalities with a population greater than ten thousand (10,000), shall attend a minimum of eight (8) hours of management training within two (2) years following the election of that board member. If a board member has undergone training and is reelected to the board, that board member shall not be required to attend training. The management training shall be organized by the MSDH. The management training shall include information on water system management and financing, rate setting and structures, operations and maintenance, applicable laws and regulations, ethics, the duties and responsibilities of the association and other organizations. The Department shall develop and provide all training materials. To avoid board members having to interfere with their jobs or employment, management training sessions may be divided into segments and, to the greatest extent possible, shall be scheduled for evening sessions. The Department shall conduct management training on a regional basis.” The contractor shall: serve as the coordinator for MSDH in regards to all activities related to the implementation of the training program in the state; randomly attend training sessions to ensure the established curriculum is being followed and that the curriculum is relevant and effective; manage the Board Member Training Curriculum Review Committee; continue to update the established computerized database to accurately track the most current status of each board member attending the program; and other related duties.

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

Trainings are to include equipment/props pertinent to the training topic(s) as a part of the training discussion.

Activity Objectives - Provide a minimum of sixteen (16) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of sixteen (16) peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

AGENCY RESPONSIBILITIES

regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional FTE requirement is anticipated for state agencies to implement the provisions of this set-aside.

Appendix F Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2015 IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2015 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

Cost Breakdown Administrative/Staffing $309,222 Fringe Benefits $109,774 Travel $33,094 Supplies $10,000 Contractual $384,257 Indirect Costs $69,553 Total Funding Amount $915,900

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects forty-four (44) FTEs will be required to implement the FFY-2015/2016 PWSS Program. A total of 4.83 FTEs will be funded by this set-aside. An estimated $418,996 will be reserved from the FFY-2015 DWSRF Capitalization Grant for salaries and fringe benefits for State Program Management activities.

This amount will fund salary and fringe benefits for the following positions:

Position

Quantity (FTE)

EE I 1.0 EIT

1.0 Eng. Admin. Super I 1.0 Environmental Admin. II

1.0 Division Director I 0.83

Total FTEs

4.83

The remaining $496,904 will be used for indirect costs, supplies, and possible contractual services for technical assistance needed to accomplish the requirements of the FFY- 2015/2016 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

training on rule requirements; informing EPA Region 4 of any special state initiatives under the rules or provisions of the SDWA; maintaining records for all rule/policies, enforcing reporting and record keeping as required; maintaining appropriate administrative penalty authority; implementing the PWS definition; attending state/EPA planning and implementation meetings; ensuring that newly permitted PWSs have design/construction capable of compliance with the present and upcoming SDWA regulations; ensuring analytical methods are being applied to demonstrate compliance with the regulations; notifying (if necessary) EPA of intent not to adopt or implement any portion of the rules; and responding to EPA requests for information or verification of state rules implementation.

Non-primacy Requirements

Capacity Development (CD) Program

As required by the SDWA, each state is required to develop and implement a Public Water System Capacity Development Program in order to receive full funding annually under the DWSRF Program. Public water system capacity assessment is a full evaluation of the PWS’s technical, managerial, and financial ability to provide safe drinking water to its customers by complying with all state and Federal regulations. In accordance with the Federal requirements, MSDH has developed and implemented a CD program for both new and existing PWSs. The MSDH CD program takes the form of a rating that each community water system (CWS) and non-transient non-community water system (NTNCWS) receives at their annual sanitary survey. The criteria used in the rating system incorporates laws, regulations, and other valuable information to evaluate the areas of technical, managerial, and financial capacity. The program is also designed to evolve from year-to-year through an annual meeting of an advisory committee that will make suggestions as to possible changes and/or additions to the rating criteria. As required by regulation, an annual report is made to the Governor on the efficacy of the strategy and progress towards improving the capacity of PWSs in the state. Additionally, annual documentation of ongoing implementation of the CD strategy is to be provided with DWSRF Capitalization Grant application.

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

Information Management and the Safe Drinking Water Inspection System (SDWIS) /Fed Reporting These ongoing activities include: overseeing and enforcing requirements of data management and the Safe Drinking Water Inspection System (SDWIS) /Fed reporting; reporting the state’s PWSS inventory at least annually to SDWIS/Fed; reporting the state’s violations and enforcement actions at least quarterly; participating in EPA/state data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

Appendix G Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

PROGRAM ACTIVITIES

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates. This phase of well abandonment will be completed by June 30, 2015. The Board plans to exercise the option for the third year which will extend the contracts to June 30, 2016.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

Appendix H Mississippi State Program Management Set-Aside Match Requirements - Mississippi 1:1 Requirement

Appendix I Coordination Schedules for Jointly Funded Projects FFY-

DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED P ROJECTS

Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2014, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1,

All FY-15 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2014** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding.** Oct, 2014 MS State Dept of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY-2015 ARC funding. MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-15 DWSIRLF funding. MS State Dept of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2015 CDBG funding. MS State Dept of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which indicate anticipated FY-2015 RUS funding Nov 15,

MARO completes review of FY-2015 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A)

ARC CDBG RUS Nov 15-30,

(N/A) CDBG program application workshops.*** (N/A) Nov, 2014 MSDH advertises Draft DWSIRLF FFY-2014 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2014 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2014 Intended Use Plan for public comment. Dec 30,

Deadline for all FY-2014 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A) Dec, 2014 Board adopts FFY-2014 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2015 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2014 until 8/2015 Board adopts FFY-2015 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20,

(N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan, 2015 MSDH notifies MARO of projects included on final FFY-2014 Priority List that anticipate receiving FFY-2014 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2015 Priority List that anticipate receiving FFY-2015 CDBG funds. MSDH notifies RUS of projects included on the final FFY-2015 Priority List that anticipate receiving FFY-2015 RUS funds.

ARC CDBG RUS Feb 1,

MARO sends project applications to ARC-Washington to start final funding approval process. (N/A) (N/A) Feb 16,

(N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2015 until 4:00 p.m. on 2/17/2015. (N/A) Feb- Jun,

ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2015. (N/A) (N/A) Mar, 2015 (N/A) MDA provides notification to MSDH t hat complete CDBG applications have been received. (N/A) May 1, 2015** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs.** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS. * General Guidance regarding DWSIRLF/RUS coordinati on: The RUS is an agency of the United States Departme nt of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonp rofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS fun ds may be used in conjunction with other Federal, S tate, or local funds. Applications for RUS funds will be accepted at any time during the year, and i nvolve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as f unds are available. RUS funds are allocated by Con gress in October of each year, and are usually spen t as complete applications are received. Therefore, it is generally to the applicant’s advantage to fil e applications earlier in the year. To receive an application package or other information, contact R ural Utilities Service, 100 West Capitol Street, Su ite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: (601) 965-4566. ** FFY-2015 DWSIRLF Priority System Deadline *** “To Be Announced” (Date has not yet been set.)

Appendix J Drinking Water Systems Emergency Loan Fund Program

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

Appendix K - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can also be found on the MSDH’s website at www.msdh.state.ms.us/dwsrf.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).
The state certifies that prior to adding any new projects to the FFY-2016 and After Planning List for the purpose of funding such a project during FFY- 2015 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

Part 6 Drinking Water Systems Improvements Revolving Loan Fund Programs Regulations

33 Miss. Admin. Code Pt. 6, R. 2012 Rule 2012

the Program has been using the Local Assistance and Other State Programs set-asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.

Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.
Meet special funding goals: The FFY-2016 federal appropriation may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects: Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.
Set-aside Accounts: The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems through the current contractual services with Communities Unlimited, Inc.; Mississippi State University – Extension Service (MSU-ES) and the Mississippi Rural Water Association (MsRWA). c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program through current contractual services with the Mississippi Rural Water Association (MsRWA) and Mid- South Water, LLC.

B. DWSIRLF State Match Funds

As required by the SDWA, the State of Mississippi must match the Cap grant with state funds equaling 20% of the federal allotment. Mississippi historically has received the required 20% state match from the sale of General Obligation bonds authorized by the State Legislature and sold by the Mississippi State Bond Commission; however, since the 2014 legislative secession, the State Legislature has authorized a direct appropriation for the state match. While state match monies are maintained separately from the Fund for accounting purposes, they are still considered to be under the “umbrella” protection of the DWSRF Fund.

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The amount of the FFY-2016 Cap Grant from EPA for Mississippi is not known at this time; therefore, the grant amount received by Mississippi in FFY-2015 will be used in this IUP for planning purposes until the actual Cap Grant amount is provided. A Cap Grant amount of $9,009,000 is used for these purposes. Funding amounts and their use are outlined in Appendix A.

Using an anticipated FFY-2016 EPA Capitalization Grant allotment for Mississippi of $9,099,000 a 20% state match of $1,819,800 is required; this provides an anticipated amount of $10,918,800 for both loans and set-aside activities.

With $2,161,964 being utilized for set-aside activities, $8,756,836 will be used for loans to Mississippi public water supplies; additionally, unobligated funds from the previous year, anticipated loan repayments and interest earnings (all of which are not classified as state match) should also be available as additional funding sources.

The FFY-2016 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment

If the FFY-2016 Capitalization Grant for Mississippi is $9,099,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.78% state match funds to 79.22% federal grant funds; this requirement will be stated in the grant application.

State Match Requirements Until 2014 the state 20% match was provided through the sale of General Obligation bonds authorized by the State Legislature. The Legislature passed House Bill No. 209 to establish a Local Governments and Rural Water Systems Improvements Revolving Loan Program and authorized the sale of $15,000,000 in General Obligation Bonds which were deposited into the Fund. As stated in the law, one of the purposes for these funds is that, “All or any portion of the monies in the fund may be used to match any federal funds that are available for the same or related purposes for which funds are used and expended under this act.” Initially, $10,000,000 of these General Obligation bonds were sold in May of 1997 and the proceeds were deposited into the Fund on May 29, 1997. Later, the remaining $5,000,000 of the original bonding authority was sold and deposited into the Fund on October 5, 2000. • $3,294,840 was used as match for the FFY-1997 Cap grant, • $1,654,340 was used as match for the FFY-1998 Cap grant, • $1,733,900 was used as match for the FFY-1999 Cap grant, • $1,802,020 was used as match for the FFY-2000 Cap grant, • $1,809,480 was used as match for the FFY-2001 Cap grant, • $1,610,500 was used as match for the FFY-2002 Cap grant, • $1,600,820 was used as match for the FFY-2003 Cap grant, • $1,494,100 was used as match for $7,470,500 of the FFY-2004 Cap grant. During the Spring 2003 Legislative Session, the Legislature provided the Board with an additional $130,000 in bonding authority. Additionally, during the Spring 2004 Legislative Session, the Legislature authorized $1,613,000 in general obligation bonds. A total of $1,740,000 was deposited in the DWSIRL Fund during the 1 st Quarter of FFY-2005. • $129,776 was used as match for $648,880 of the FFY-2004 Cap grant. • $36,744 was used as match for $183,720 which was the remaining FFY- 2004 Cap grant. • $1,573,480 was used as match for $7,867,400 of the FFY-2005 Cap grant. During the 2006 Regular Legislative Session, the Legislature authorized the sale of general obligation bonds in the amount of $4,003,000, which were sold and deposited in the SRF Fund during the 1 st Quarter of FFY-2007. After paying the issuance cost of $2,128.26: • $83,620 was used to match the remaining $418,100 of the FFY-2005 Cap grant. • $1,645,860 was used to match the FFY-2006 Cap grant ($8,229,300). • $1,645,800 was used to match the FFY-2007 Cap grant ($8,229,000). • $625,591 was used to match a portion ($3,127,955) of the FFY-2008 Cap grant.

During the 2008 Regular Legislative Session, the State Legislature authorized an additional $4,000,000 in general obligation bonds which were sold and deposited into the Fund during the 1 st Quarter of FFY-2009. After paying issuance costs of $2,256.05: • $1,003,609 was used to match the remaining FFY-2008 Cap grant. • $1,629,200 was used to match the FFY-2009 Cap grant ($8,146,000). • $1,364,935 was used to match a portion of the FFY-2010 Cap grant or $6,824,675. During the 2010 Regular Legislative Session, the State Legislature authorized an additional $1,400,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2010. After paying issuance cost of $9,087: • $1,390,913 was used to match a portion ($6,954,566) of the FFY-2010 Cap grant. During the 2011 Regular Legislative Session, the State Legislature authorized an additional $2,700,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2011. After paying issuance and discount costs of $13,105: • $69,152 was used to match the remaining FFY-2010 Cap grant ($345,760). • $1,960,400 was used to match the FFY-2011 Cap grant (9,802,000). • $1,834 was used to match $9,166 which was transferred to DWSIRLF from the remaining balance of the MS Operator Certification Grant for making additional loans. • The remaining $655,509 was used to match $3,277,545 of the FFY-2012 capitalization grant leaving a balance of $6,063,455 to be matched. During the 2013 Regular Legislative Session, the State Legislature authorized an additional $1,000,000 in general obligation bonds. These bonds were sold and the funds were deposited into the DWSIRLF in December 2013. No issuance or discount costs were charged, therefore, the full $1,000,000 bond amount is available to match a portion ($1,902,240) of the FFY-2013 Cap grant and match a portion of ($3,097,760) of the remaining FFY-2012 Cap grant. The $1,000,000 state bond funds will be used as follows. • $380,448 will match the FFY-2013 Cap Grant Set-aside amount ($1,902,240). • $619,552 will match $3,097,760 of the remaining FFY-2012 Capitalization Grant. • $593,139 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will be used to complete the match of the remaining FFY- 2012 Capitalization Grant ($2,965,695). (That portion of the DWSELF which exceeds the $5,000,000 initially deposited in the fund may be used to match capitalization grant funds). • $26,861 remaining from the $620,000 used from the DWSELF Fund will be used to match a portion ($134,305) of the FFY-2013 Cap Grant. During the 2014 Regular Legislative Session, the State Legislature (House Bill No. 1495) authorized $1,000,000 in direct funding for the DWSRF program and

the use of $2,000,000 in an existing MSDH account for the DWSRF program. Additionally, $180,000 was used from the Drinking Water Systems Emergency Loan Fund (DWSELF). The total of all the match funds matched all outstanding EPA Grant funds; the remaining portion of the FFY-2013 Cap Grant ($6,727,455) and the total FFY-2014 Cap Grant ($9,159,000). The $3,180,000 of state funds was used as follows. • $1,345,491 matched the remainder of the FFY-2013 Cap Grant amount ($6,727,455). • $1,831,800 matched the FFY-2014 Capitalization Grant ($9,159,000). • $2,709 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will remain to be used as match for future Capitalization Grants. During the 2015 Regular Legislative Session, the State Legislature (House Bill No. 1555) authorized $1,200,000 in direct funding for the DWSRF program; however, due to a shortfall in State funds the authorized $1,200,000 was reduced to $1,100,479.80. Using the revised fund amount, the remainder ($2,709) of State match funds from the Drinking Water Systems Emergency Loan Fund (DWSELF) for FFY-2014 and the $728,611.20 from the DWSELF for FFY-2015, the required State match amount ($1,831,800) was provided for the FFY-2015 EPA Cap Grant ($9,159,000). However, EPA reduced the amount of the FFY- 2015 Federal Cap Grant to $9,099,000 at award to comply with Federal debt reduction requirements so a State match of only $1,819,800 was needed; $12,000 will remain from the DWSELF funds as State match funds for future State matches.

It is anticipated that the State Legislature will continue to provide a direct appropriation for the State’s 20% match portion of the FFY-2016 EPA Capitalization Grant. If this happens, the match amount would be $1,819,800 for a grant amount of $9,099,000.

Loan Increase Reserve Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the amount indicated in Appendix A for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be made available for new loan awards to the highest ranking project(s) that is ready for loan award at the time funds become available.

B. Financial Planning Process

Efficient Bond Management The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF Fund and shall be used as the state match for federal DWSRF Cap grants.
Interest Rate Determination It is the Board’s intention to adjust interest rates such that the demand will equal the funds available. In order to ensure that this interest rate will be at or below the prevailing market rates at the time a loan is made, this rate will be compared to the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield published by The Bond Market Association/ Bloomberg (Bloomberg Online, http://www.bloomberg.com/markets/rates/index.html).
Investment Investment Procedures for Excess Cash - According to the State Treasurer, the excess cash in the Fund is invested by the State Treasurer in securities prescribed in Section 27-105-33, et. Seq., of the Mississippi Code of 1972 Annotated, as amended. The securities in which state funds may be invested include certificates of deposit with qualified state depositories, repurchase agreements (fully secured by direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations), direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations, and any other open-ended or closed-ended management type investment company or investment trust registered under the provisions of 15 U.S.C. Section 80(a)-1 et. Seq, provided that the portfolio is limited to direct obligations issued by the United States of America, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations and to repurchase agreements fully collateralized by the securities listed above for repurchase agreements.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2016 a maximum loan amount of $5,000,000 per

borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by vote of the Board. Furthermore, during FFY-2016, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2016 may obtain an additional award(s) or an increase to a previous FFY-2016 award, if no other eligible systems are evident.

Interest Rate All loan terms will be at 1.95% annual interest rate, compounded monthly, with a maximum 20-year repayment period. The interest will not accrue during construction, but will commence at the date of completion of the original construction period.
Administration Fee Revenues to pay for Program administrative costs will be collected through an administration fee of 5% of the initial loan principal. This fee will be collected from the interest portion of loan repayments on all FFY-2016 loans.
FFY-2016 Appropriation Special Provisions The Federal 2016 appropriations bill has not been finalized and the final EPA FFY-2016 Cap Grant allotment amounts and any additional federal requirements are not known. It is anticipated that subsidization requirements will be required for the FFY-2016 Cap Grant; the subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The anticipated amount of subsidization is expected to be a minimum of 20% of the Cap Grant amount up to 30% of the Cap Grant amount. If the FFY-2016 Cap Grant is $9,099,000 the subsidization amount would be between $1,819,800 (20%) to $2,727,700 (30%) if the Cap Grant amount is $9,099,000. Furthermore, all loans made with all or part FFY-2016 federal appropriation funds are expected to include the Davis-Bacon Act requirements and American Iron and Steel requirements. Appropriate language will be added to all FFY-2016 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement; however, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.
Other Related Issues a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds afforded through the FFY-2016 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. When the specifics of the FFY-2016

appropriation bill become known, the Board may set a limit on the total amount of grant funds that would be designated for additional subsidy. Once the limit of the appropriation subsidy funds has been reached for FFY-2016, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2015, and the DWSIRLF loan is awarded by September 30, 2016. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The FFY-2016 Priority List expires on September 30, 2016. Projects listed in the FFY-2016 Priority List that do not receive funding by this date will not be funded under the FFY-2016 funding cycle and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2016 DWSIRLF projects is shown in Section VIII of this IUP. To facilitate the use of FFY-2016 federally appropriated funds, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

and other special activities. The state plans to use $2,167,640 of the FFY-2016 Federal Capitalization grant to support the non-project-related drinking water programs activities along with an additional $909,900 in state money needed for state program management match. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans detailing how funds will be expended for the set-asides utilized are included as appendices within this IUP. Additionally, progress reports will be included in the Annual Report for those set-asides utilized. The state has elected not to take any additional set- asides from the FFY-2016 Local Assistance and Other State Programs appropriation, but reserves the right to make revisions to utilize additional funds from this set-aside.

A. Administration

Standard Capitalization Grant The state plans to reserve for use at a later date the 4% administrative set-aside from the FFY-2016 Capitalization Grant ($363,960); the state will use the 4% administrative set-aside amount previously reserved from the FFY-2009 Capitalization Grant ($325,840) by taking an equal amount from the FFY-2016

Capitalization Grant for the administration of the Program in FFY-2015. This change will decrease the total set-aside amount for the FFY-2016 Cap grant from $2,205,760 to $2,167,640. Costs beyond this set aside amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments.

The state will continue to exercise its right to reserve the Administrative amounts from the previous Cap Grants; the remaining balance of the FFY-2010 Cap Grant ($282,500), the FFY-2011 Cap Grant ($392,080), the FFY-2014 Cap Grant ($366,360) and the FFY-2015 Cap Grant ($363,960). These amounts are planned to be taken from future capitalization grants (over the next several years) for administration of the Program. Reserving previous years’ 4% administrative set- aside will ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program. The reserved set-aside amounts are based on the original capitalization grants awarded during those previous fiscal years.

B. Small System Technical Assistance

Standard Capitalization Grant The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY-2016 Cap Grant ($181,900) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; and Hands-on Operator Training. Each of these activities is described in

detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix F to this IUP.

C. State Program Management

Standard Capitalization Grant The state intends to use the full 10% set-aside from the FFY-2016 Cap grant ($909,900), as authorized by Section 1452(g)(2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix G to this IUP. The state must provide a dollar-for-dollar match (100% match) for the Cap grant funds used for these activities. The dollar-for-dollar match is in addition to the twenty (20%) percent state match required for the Cap grant. The state is allowed to offset the 100% match requirement by claiming credit for State FFY-2016 PWSS expenditures that exceed the State’s FFY-2016 PWSS match requirement. The state is further allowed to use state FFY-2016 PWSS expenditures as a “coupon” to offset the 100% match requirement as long as this amount does not exceed the amount that can be claimed from FFY-2016 expenditures. The MSDH Bureau of Public Water Supply has elected to decline the “coupon” since it sees this as providing no additional monetary benefit to the State Program Management Program. A tabulation showing amount and source of funds to satisfy match requirements for the FFY-2016 State Program Management set-aside is furnished as Appendix H to this IUP.

D. Local Assistance and Other State Programs

The state intends to use $750,000 (8.20%) of the 15% set-aside amount which is allowed from the FFY-2016 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure Should any projects on the FFY-2016 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.
FFY-2016 Green Infrastructure Requirement The FFY-2016 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

Loan Decreases Any funds recovered from loan decreases during the year will be used:

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants On October 10, 2001, EPA issued policy memorandum DWSRF 02-01 to notify regions and states of a change in policy regarding the use of DWSRF monies for providing local match for SPAP grants. This change in EPA policy will allow the state to use non-federal, non-state match DWSIRLF funds to provide loans that can be used as local match for SPAP grants awarded for drinking water projects. These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non-

federal, non-state match monies have been obligated or demand for such funds has been met.

Subsidization from FFY-2016 Federal Appropriation EPA is expected to mandate that a minimum of 20% but no more than 30% of the FFY-2016 Cap grant be provided as additional subsidization to disadvantaged communities. Based on the FFY-2016 grant amount of $9,099,000 the amount of subsidization will be between $1,819,800 and $2,727,700. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2016 may be awarded to projects eligible for PF in FFY-2017 and FFY-2018.

Disadvantaged Community Program During FFY-2016, the following PF methodology will be used since it is anticipated that the FFY-2016 federal appropriation will continue to require the state to provide additional subsidy for disadvantaged communities.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Projects in Category I are funded each year to the extent funds are available. Projects in Categories II through XI are ranked in priority order; that is, all Category II projects are ranked higher than Category III projects, etc. Ranking is established in like manner through all remaining categories. Adjustments are made as necessary to comply with small community set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a)(2) of SDWA]. As stated previously, the order of Categories II - XI is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section C.

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that:

(1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.

Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

The projects will be ranked: first in order of the highest source water classification that would be negatively impacted by source water contaminants;

secondly, within each classification in order of the public water systems susceptibility assessment ranking as determined by the DEQ-GPB; and thirdly, within each susceptibility assessment ranking in order of the highest number of connections served by the public water system. Source water classifications will be ranked in the following order: surface water sources; shallow (generally ≤ 300’ in depth) unconfined water wells; shallow (generally ≤ 300’ in depth) confined water wells; and deep confined water wells.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX.

Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.

Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The MHI to be used in the calculations will be those displayed in the publication (*)“The Sourcebook of Zip Code Demographics”, Twentieth Edition or from the publisher’s website at http://www.esribis.com/reports/ziplookup.html. Where the affected community is included in more than one zip code area, an average will be used for the community’s median household income.

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

programs and implementation of the recommendations made by CRG must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2015, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received

from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

This deadline also applies to all projects competing for released funds during FFY-2016 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2016 IUP.

By May 1, 2016, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2016 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2016 IUP.
By August 1, 2016, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2016 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2016 IUP.

VII. FFY-2016

Priority List FINAL

Fiscal Year - 2016 Mississippi Drinking Water Syste ms Improvements

Revolving Loan Fund Program Priority List

Category I: Segmented Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$175,500

$702,000

Jackson County Utility Authority

Distribution System Improvements

39567

43680

$6,250,000

$6,952,000

Category II: Previous Year Certified Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Mendenhall, City of

Installation of 8" PVC

39114

$31,358

$209,050

$7,161,050

Category III: Primary Drinking Water Standards Proj ects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Yazoo, City of

New Well/Water Distribution System

39194

16400

$500,000

$1,855,557

$9,016,607

Category IV: One Well Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Duffee Water Association

33 Miss. Admin. Code Pt. 6, R. 500 GPM Water Well

39337

$111,946

$746,307

$9,762,914

Category V: Pressure Deficiencies Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Jackson, City of

Distribution System Improvements (Phase I)

39201

37222

174382

$500,000

$2,440,400

$12,203,314

Natchez, City of

New 500,000 Ga. Tank/Distribution Lines

39120

18340

$500,000

$1,675,800

$13,879,114

North Lauderdale Water Assn.

New 500,000 Gal. Elevated Tank/Replace

39320

10000

$1,562,200

$15,441,314

Category VII: System Capacity Expansion to Serve Ex isting Unserved Residences/Businesses

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Bear Creek Water Assn.

Installation of 16"and 20" Water Mains

39046

40000

$4,100,000

$19,541,314

Monday, January 11, 2016

Page 1 of 2

Category VIII: Back-up Water Supply Sources Project s

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Winona, City of

New Water Well

38967

$100,625

$402,500

$19,943,814

Madison, City of

Construction of 1Mil Gallon Storage Tank

39110

13986

$2,800,895

$22,744,709

Category IX: Existing Facilities Upgrade (Meeting P rimary Standards)

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Jackson, City of

O B Curtis Water Treatment Improvements (Phase

39201

25940

174382

$500,000

$3,501,800

$26,246,509

Jackson, City of

J H Fewell Water Treatment Improvements (Phase I)

39201

18464

174382

$500,000

$4,919,720

$31,166,229

Lumberton, City of

Replace/Upgrade Water Mains

39455

$276,975

$1,107,900

$32,274,129

Wiggins, City of

33 Miss. Admin. Code Pt. 6, R. 1000 GPM Well/3,000 ft.8" Main/Seal Well

39577

$402,667

$1,610,668

$33,884,797

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2016

based on the funds authorized and provided by the 2

Legislature. The funding available in FFY-2016

should equal $41,164,967 . ** Currently, the requirements of additional subsid ization are unknown. Once the final federal approp riation with related requirements is made, additiona l modifications will be made to the priority system a nd ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidizat ion the state has elected to use.

CPF – Cumulative Principal Forgiveness

CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Gre en Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits i n the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects cu rrently listed as Green Infrastructure are based on information supplied in submitted facility plans.

This determination of Green Infrastructure will be based on guidelines supplied by the Environmental P rotection Agency.

Monday, January 11, 2016

Page 2 of 2

FINAL

Fiscal Year - 2017 and After Planning List

Mississippi Drinking Water Systems Improvements Rev olving Loan Fund Program

(Projects included on the Planning List did not mee t the September 30, 2015 deadline for submission of a complete facilities plan, or had multiple reques ts and asked to be placed on the Planning List. These projects have been ran ked on the Planning List based on information provi ded on the Request for Ranking Form. A determinati on of project eligibility cannot be completed until the facilities plan has b een submitted and reviewed.)

Category II: Previous Year Certified Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Sylvarena Water Assn.

New Water Well

39153

$1,100,000

Valley Park Water Assn., Inc.

New Well/Install 36 New Meters

39177

$629,400

$1,729,400

Category III: Primary Drinking Water Standards Proj ects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$470,000

$2,199,400

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$586,000

$2,785,400

Tunica County Utility District

Repair & Paint Elevated Storage Tanks

38676

10000

$586,000

$3,371,400

Ebenezer Rural Water Assn.

Back-up Water Well

39095

$621,000

$3,992,400

Category V: Pressure Deficiencies Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Aberdeen, City of

33 Miss. Admin. Code Pt. 6, R. 400 Rule 400

GPM Well/100,000 Gal. Elev.Tank/Rehab

39730

$370,487

$1,481,949

$5,474,349

Guntown, City of

Water Sys. Improvements/Valves/Lines/Meters

38849

$975,000

$6,449,349

-------------------------------------------------- ------------------------ Funding Line $7,280,170 --------------------------------------------------- --------------------------------------------------- -

Ridgeland, City of

New 1,600 GPM Well/500,000 Gallon Tank

39158

24000

$3,434,404

$9,883,753

Ridgeland, City of

Two 1,600 GPM Ser. Pumps/Rehab Current

39158

24000

$4,840,000

$14,723,753

Category VI: Source Water Protection Projects

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Batesville, City of

Rehab Existing Facilities

38606

$102,500

$410,000

$15,133,753

Walnut, Town of

Installation of Water Lines/2 Master water Meters

38683

$256,000

$15,389,753

Pearl River Central Water Assn.

Install/reconnect 32,800 LF PVC Water Main

39426

12800

$1,464,705

$16,854,458

Friday, January 15, 2016

Page 1 of 3

Category VII: System Capacity Expansion to Serve Ex isting Unserved Residences/Businesses

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Batesville, City of

Installation of Water lines

38606

31582

$37,500

$125,000

$16,979,458

Batesville, City of

Installation of Water Lines

38606

26319

$37,500

$150,000

$17,129,458

Ridgeland, City of

Enhance Distribution System/Install 12 in. Lines

39157

15710

24000

$830,375

$17,959,833

Batesville, City of

Rehab/Replacement of Existing Facilities

38606

14356

$68,750

$275,000

$18,234,833

Batesville, City of

Rehab Existing Facilities

38606

11279

$87,500

$350,000

$18,584,833

McComb, City of

33 Miss. Admin. Code Pt. 6, R. 1000 GPM Well/Generator/Fence/12" Main

39648

12790

$1,236,000

$19,820,833

Batesville, City of

500,000 Gallon Elevated Tank

38606

$187,500

$750,000

$20,570,833

Brandon, City of

33 Miss. Admin. Code Pt. 6, R. 1000 GPM Well/1 Mil Gal Above Ground

39042

26355

$4,275,000

$24,845,833

Bay Springs, Town of

New 1,000 GPM Well

39422

$340,010

$617,000

$25,462,833

Southeast Rankin Water Assn., Inc.

New Water Well/Water Distribution System

39151

$1,154,000

$26,616,833

SE Greene Water Authority

Upgrade Existing Distribution System

39452

$2,649,569

$29,266,402

Helena Utility District

Enhance Water Distribution System

39562

$1,883,000

$31,149,402

Nicholson Water & Sewer Assn.

Installation of Approx. 10,400 L.F. of Water Main

39463

$270,450

$1,803,000

$32,952,402

Category VIII: Back-up Water Supply Sources Project s

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Batesville, City of

Rehab Existing Infrastructure

38606

$125,000

$500,000

$33,452,402

Batesville, City of

New 750 GPM Well

38606

$125,000

$500,000

$33,952,402

Ridgeland, City of

1,600 GPM Potable Water Well

39158

24000

$2,189,300

$36,141,702

Hilldale Water Association, Inc

300,000 Gal. Elevated Tank

39180

$1,184,490

$37,326,192

Hazlehurst, City of

New Well & Raw Water Line

39083

$375,000

$1,500,000

$38,826,192

Mt. Gilead-Improve Water Assoc.

New Water Treatment Plant/Elevated Tank Rehab

39429

$1,357,400

$40,183,592

Horn Lake, City of

New Well/Tank Upgrade Existing Facility

38637

$2,474,600

$42,658,192

Marion, Town of

33 Miss. Admin. Code Pt. 6, R. 600 Rule 600

GPM Tr. Facil/600 GPM Well/Generator

39342

$500,000

$2,748,800

$45,406,992

Category IX: Existing Facilities Upgrade (Meeting P rimary Standards)

Project

Project Description

Zip

Priority

Service Area

Eligible

Green

Loan Amount

Statewide Cum.

Code

Points

Population

Project

Requested

Ridgeland, City of

Upgrade/Replace Existing Water Lines

39157

18530

24000

$704,000

$46,110,992

Ridgeland, City of

Water Line Relocation

39158

10108

24000

$793,400

$46,904,392

Collins, Town of

Water Line Replacement

39428

$48,664

$139,040

$47,043,432

Friday, January 15, 2016

Page 2 of 3

Collins, Town of

Water Line Replacement

39428

$55,300

$158,000

$47,201,432

Collins, Town of

Water Line Replacement

39428

$55,300

$158,000

$47,359,432

Grenada, City of

2 500 GPM Wells/500,000 Gallon Elevated Tank

38901

22951

$500,000

$2,202,700

$49,562,132

Mount Olive, Town of

Replacement of Water Lines

39119

$80,962

$231,320

$49,793,452

Alcorn Co. Water Association

300,000 Gal Storage Tank/upgrade Facilities

38834

$190,965

$1,273,101

$51,066,553

Alcorn Co. Water Association

Renovate Elevated tanks/Replace Water Lines

38834

$130,938

$872,920

$51,939,473

Mendenhall, City of

New 500 GPM Well/250,000 Gal Tank/Treatment

39114

$138,750

$2,634,100

$54,573,573

White Oak Water Assn.

New Water Well

39117

$611,000

$55,184,573

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2016

based on the funds authorized and provided by the 2

Legislature. The funding available in FFY-2016

should equal $41,164,967 . **Currently, the requirements of additional subsidiz ation are unknown. Once it has been determined by the final federal appropriation, additional modific ations will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidizat ion the state has elected to use.

This determination of Green Infrastructure will be based on guidelines supplied by the Environmental P rotection Agency.

Monday, January 15, 2016

Page 3 of 3

VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2016 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2016 IUP and funding projects shown on the FFY-2016 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2016.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2016 DWSRF Work Plan.

(Blank)

Appendices

Appendix A - Part 1A FFY-2016 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2015

FFY-2016 National Title I DWSRF Appropriation (Estimate) (Using FFY-2015 Amount) $906,896,000 * Mississippi's Allotment [section 1452(m)] (Estimate) (Using FFY-2015 Amount) $9,099,000 FFY-2016 State Match Required (20% of Mississippi's Allotment) (Estimated) (Using FFY-2015 Amount) + $1,819,800 Total FFY-2016 Federal Allotment and Required State Match (Estimate): $10,918,800 FFY-2016 Funding (Federal and State) (Estimate)

**2015 Legislated State Match (Direct Appropriation from Legislature-$1,200,000 Reduced to $1,100,479.80) + $1,100,480 **2014 Emergency Fund remainder (The reminder of the 2014 Emergency Fund transfer not used for State Match in FFY2014.) + $2,709 **2015 Emergency Fund transfer (Amount originally estimated to be needed to supplement the State Match for the FFY2015 Cap Grant $728,611.20) + $728,611 **2015 Emergency Fund transfer (Only $1,819,800 is needed as State match for the FFY2015 EPA Cap Grant. The State Match($1,831,800) needed for the FFY-2015 Cap Grant is being reduced to only show the amount needed for the required State match; $12,000 will remain from the Emergency Fund for future match funds) + ($12,000) FFY-2015 Cap Grant (State Match = $1,819,800) (EPA reduced the amount of the FFY-2015 Federal Cap Grant $9,159,000 to $9,099,000 at award to comply with Federal debt reduction requirements so a State match of only $1,819,800 was needed; $12,000 will remain from the Emergency Fund for future State match funds) + $9,099,000 Total FFY-2015 Federal and State Funds available in FFY-2016 for Loan Obligations & Set- asides: $10,918,800

Note: No FFY-2016 Cap Grant Funds or Set-asides are shown in this report in order to make this projection more realistic. State Match funds for Cap Grant funds normally will not be available until QTR4 of FFY-2016; the first portion of the FFY-2016 Cap Grant funds will not usually be received until QTR1 of FFY-2017.

FFY-2015 Cap Grant Set-Asides

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2003) + $320,164 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $181,980 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~8.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $909,900 Total FFY-2015 Cap Grant Set-Asides: $2,162,044

Total Federal and State Funds available in FFY-2016 for Loan Obligations &Set-asides: + $10,918,800 Less FFY-2015 Set-asides: - ($2,162,044) Total Federal & State Funds available for Loan Obligation in FFY-2016: $8,756,756 FFY-2016 DWSRF Funds Projections

Total Federal & State Funds available for Loan Obligation in FFY-2016 (Anticipated) + $8,756,756 Unobligated Funds Carried Over from FFY-2015 + $21,573,730 Anticipated Loan Repayments To Be Deposited 10/1/15 - 9/30/16 + $11,285,456 Anticipated Interest on Fund To Be Deposited 10/1/15 – 9/30/16 + $549,025 FFY-2016 Loan Increase Reserve ($1.0m) - ($1,000,000) Total Funds Available for Loan Awards in FFY-2016 (Anticipated) $41,164,967

Appendix A - Part 2A FFY-2015 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2015

FFY-2015 National Title I DWSRF Appropriation (Actual) $906,896,000 * Mississippi's Allotment [section 1452(m)] (Actual FFY-2015) (Actual) $9,159,000 FFY-2015 State Match Required (20% of Mississippi's Allotment) (Actual) + $1,831,800 Total FFY-2015 Federal Allotment and Required State Match (Actual): $10,990,800 FFY-2015 Actual Funding (Federal and State)

**2014 Legislated State Match (Direct Appropriation from Legislature) + $1,000,000 **2014 Legislated State Match (State Legislature authorized the use of $2M in an existing MSDH Fund – 02MS) + $2,000,000 **2014 Emergency Fund transfer (Amount of State Match needed for the remainder of the FFY-2013 Cap Grant and all of the FFY2014 Cap Grant Funds) + $180,000 Remaining Portion of FFY-2013 Cap Grant Balance Captured by 2014 Legislation (FFY- 2013 Cap Grant Completely Match) + $6,727,455 FFY-2014 Cap Grant (State Match = $1,831,800) (FFY-2014 Federal Cap Grant completely matched by the 2014 Legislation & Emergency Fund transfer)($2,709 will remain from the Emergency Fund for future State match funds) + $9,159,000 Total FFY-2014 Federal and State Funds available in FFY-2015 for Loan Obligations & Set-asides: $19,066,455 FFY-2014 Cap Grant Set-Asides

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2004) + $332,124 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $183,180 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~5.2%) + $500,000 State Program Management [section 1452(g)(2) -10%] + $915,900 Total FFY-2014 Cap Grant Set-Asides: $1,931,204 Total FFY-2014 Federal & State Funds Available in FFY-2015 for Loan Obligation & Set-asides $19.066,455 Less FFY-2014 Set-asides - $1,931,204 Total Federal & State Funds Available in FFY-2015 for Loan Obligation $17,135,251 FFY-2015 DWSRF Funds & Repayments (Actual)

Unobligated Funds Carried Over from FFY-2014 + $17,135,251 Federal & State Funds available in FFY-2014 + $9,574,696 Loan Repayments Deposited to the Fund (Actual) 10/1/14 - 9//30/15 + $12,230,086 Interest Deposited to the Fund (Actual) 10/1/14 - 9//30/15 + $420,000 FFY-2015 Loan Decreases (Actual) 10/1/14 - 9//30/15 + $5,005,390 FFY-2015 Loan Increases (Actual) 10/1/14 - 9//30/15 - ($2,468,190) Funds Available for Loan Awards in FFY-2015 $41,897,233 Loan Awards made during FFY-2015 (13 Initial Loans for $20,323,503) ($20,323,503) FFY-2015 Carryover Funds to FFY-2016 $21,573,730

Appendix A - Reference Notes:

Part 7 Part 7: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 7 Part 7: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 7: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FINAL FFY-2016 INTENDED USE PLAN AMENDMENT 1

Presented to the Board for Adoption on September 23, 2016

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 7: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2016 INTENDED USE PLAN AMENDMENT 1 TABLE OF CONTENTS

I. INTRODUCTION

State of Mississippi’s Drinking Water State Revolving Fund
Program Overview
Public Input, Review, and Comment Procedures

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSEMS

IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF) PROGRAM

Basic Goals
Long-Term DWSIRLF Goals
Short-Term DWSIRLF Goals

III. STRUCTURE OF MISSISSIPPI DWSIRLF 9 A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:
Set-aside Accounts:

DWSIRLF State Match Funds
Drinking Water Systems Emergency Loan Fund (DWSELF)

IV. FINANCIAL STATUS OF THE DWSIRLF 10 A. Source and Use of Fund

Federal Allotment
State Match Requirements
Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management
Interest Rate Determination
Investment

C. Financial Terms of Loans

Funding Limit
Interest Rate
Administration Fee
FFY-2015 Appropriation Special Provisions
Other Related Issues

SET-ASIDE ACTIVITIES 17
Administration
Small System Technical Assistance
State Program Management
Local Assistance and Other State Programs

VI. PRIORITY SYSTEM 19 A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure
FFY-2016 Green Infrastructure Requirement
Loan Decreases
Match for Special Appropriations Project (SPAP) Grants
Subsidization from FFY-2016 Federal Appropriation

Priority System Categories
Priority Ranking Criteria
Priority System Deadlines

VII. FFY-2016 PRIORITY LIST 29 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 35

APPENDICES 37 A. FFY-2016 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSRF) Program 38 FFY-2015 End of Year Funds Report-Mississippi DWSIRLF Program -- October 1, 2015 39 B. PROJECTED SCHEDULE OF OUTLAYS 42 C. PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE 43 D. PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT 44 E. MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET- ASIDE WORK PLAN 45 F. MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN 49 G. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN 54 H. MISSISSIPPI STATE PROGRAM SET-ASIDE MATCH REQUIREMENTS – MISSISSIPPI 1:1 REQUIREMENT FOR FFY-2016 STATE PROGRAM MANGEMENT SET-ASIDE 56 I. COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS 57 J. DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM 62 K. CERTIFICATIONS 63

I. Introduction

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds; however, in 2014 the State legislature began providing the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2016 to EPA, other state agencies, the state’s public water supplies, and the general public.

B. Program Overview

The amount of the FFY-2016 Cap Grant from EPA for Mississippi is $8,607,000. The FFY-2016 DWSRF Cap grant application will request the complete amount; these funds must be used in the time period of July, 2016, through June, 2020. The FFY-2016 IUP will show in detail the goals (basic, long-term and short-term), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518.

C. Public Input, Review, and Comment Procedures

To ensure that the public has an ample opportunity to review and comment upon Amendment 1 to the IUP, the Department and the Board follow the requirements of the “Mississippi Administrative Procedures Law” prior to final submission of Amendment 1 to EPA. A public notice period of at least twenty-five (25) days allows for review and comment before an oral proceeding. A second filing with the Secretary of State’s Office occurs before Amendment 1 becomes law 30 days after the final posting.

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, that an oral proceeding would be held at 9:00 a.m. on Thursday, September 22, 2016, to receive written and oral comments on this Amendment. A transcript of the oral proceeding, recording the comments and recommended solutions, will be submitted to EPA along with the Final Amendment 1 to the IUP. Those desiring to receive a copy of the oral proceeding transcript may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office, and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf .

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

A. Basic Goals

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.
Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY- 2012 the Program has been using the Local Assistance and Other State Programs set-asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and a danger to

humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.

Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.
Meet special funding goals: The FFY-2015 federal appropriation may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available

in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Monies in the Fund support a majority of the functions of the DWSIRLF. These functions include: program administration, set-aside operations, and most importantly provide disbursements to public water systems for eligible projects. The DWSIRLF is a reimbursement program, meaning that after the loan is awarded, costs associated with planning, designing and constructing the project are reimbursed to the recipient. Cap grants from EPA, loan repayments and interest earnings are deposited into this Fund.

Types of Eligible Projects: Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.
Set-aside Accounts: The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems through the current contractual services with Mississippi State University – Extension Service (MSU-ES) and the Mississippi Rural Water Association (MsRWA). c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program through current contractual services with the Mississippi Rural Water Association (MsRWA) and a well decommissioning contractor.

B. DWSIRLF State Match Funds

As required by the SDWA, the State of Mississippi must match the Cap grant with state funds equaling 20% of the federal allotment. Mississippi historically has received the required 20% state match from the sale of General Obligation bonds authorized by the State Legislature and sold by the Mississippi State Bond Commission; however, since the 2014 legislative secession, the State Legislature has authorized a direct appropriation for the state match. While state match monies are maintained separately from the Fund for accounting purposes, they are still considered to be under the “umbrella” protection of the DWSRF Fund.

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The amount of the FFY-2016 Cap Grant from EPA for Mississippi is $8,607,000. Funding amounts and their use are outlined in Appendix A.

The FFY-2016 EPA Capitalization Grant allotment for Mississippi requires a 20% state match of $1,721,400; this provides an amount of $10,328,400 for both loans and set-aside activities.

With $2,108,680 being utilized for set-aside activities, $8,219,720 will be used for loans to Mississippi public water supplies; additionally, unobligated funds from the previous year, anticipated loan repayments and interest earnings (all of which are not classified as state match) will also be available as additional funding sources.

The FFY-2016 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment

Since the FFY-2016 Capitalization Grant for Mississippi is $8,607,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.94% state match funds to 79.06% federal grant funds; this requirement will be stated in the grant application.

State Match Requirements Until 2014 the state 20% match was provided through the sale of General Obligation bonds authorized by the State Legislature. The Legislature passed House Bill No. 209 to establish a Local Governments and Rural Water Systems Improvements Revolving Loan Program and authorized the sale of $15,000,000 in General Obligation Bonds which were deposited into the Fund. As stated in the law, one of the purposes for these funds is that, “All or any portion of the monies in the fund may be used to match any federal funds that are available for the same or related purposes for which funds are used and expended under this act.” Initially, $10,000,000 of these General Obligation bonds were sold in May of 1997 and the proceeds were deposited into the Fund on May 29, 1997. Later, the remaining $5,000,000 of the original bonding authority was sold and deposited into the Fund on October 5, 2000. • $3,294,840 was used as match for the FFY-1997 Cap grant, • $1,654,340 was used as match for the FFY-1998 Cap grant, • $1,733,900 was used as match for the FFY-1999 Cap grant, • $1,802,020 was used as match for the FFY-2000 Cap grant, • $1,809,480 was used as match for the FFY-2001 Cap grant, • $1,610,500 was used as match for the FFY-2002 Cap grant, • $1,600,820 was used as match for the FFY-2003 Cap grant, • $1,494,100 was used as match for $7,470,500 of the FFY-2004 Cap grant. During the Spring 2003 Legislative Session, the Legislature provided the Board with an additional $130,000 in bonding authority. Additionally, during the Spring 2004 Legislative Session, the Legislature authorized $1,613,000 in general obligation bonds. A total of $1,740,000 was deposited in the DWSIRL Fund during the 1 st Quarter of FFY-2005. • $129,776 was used as match for $648,880 of the FFY-2004 Cap grant. • $36,744 was used as match for $183,720 which was the remaining FFY- 2004 Cap grant. • $1,573,480 was used as match for $7,867,400 of the FFY-2005 Cap grant. During the 2006 Regular Legislative Session, the Legislature authorized the sale of general obligation bonds in the amount of $4,003,000, which were sold and deposited in the SRF Fund during the 1 st Quarter of FFY-2007. After paying the issuance cost of $2,128.26: • $83,620 was used to match the remaining $418,100 of the FFY-2005 Cap grant. • $1,645,860 was used to match the FFY-2006 Cap grant ($8,229,300). • $1,645,800 was used to match the FFY-2007 Cap grant ($8,229,000). • $625,591 was used to match a portion ($3,127,955) of the FFY-2008 Cap grant. During the 2008 Regular Legislative Session, the State Legislature authorized an additional $4,000,000 in general obligation bonds which were sold and deposited into the Fund during the 1 st Quarter of FFY-2009. After paying issuance costs of $2,256.05: • $1,003,609 was used to match the remaining FFY-2008 Cap grant.

• $1,629,200 was used to match the FFY-2009 Cap grant ($8,146,000). • $1,364,935 was used to match a portion of the FFY-2010 Cap grant or $6,824,675. During the 2010 Regular Legislative Session, the State Legislature authorized an additional $1,400,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2010. After paying issuance cost of $9,087: • $1,390,913 was used to match a portion ($6,954,566) of the FFY-2010 Cap grant. During the 2011 Regular Legislative Session, the State Legislature authorized an additional $2,700,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2011. After paying issuance and discount costs of $13,105: • $69,152 was used to match the remaining FFY-2010 Cap grant ($345,760). • $1,960,400 was used to match the FFY-2011 Cap grant (9,802,000). • $1,834 was used to match $9,166 which was transferred to DWSIRLF from the remaining balance of the MS Operator Certification Grant for making additional loans. • The remaining $655,509 was used to match $3,277,545 of the FFY-2012 capitalization grant leaving a balance of $6,063,455 to be matched. During the 2013 Regular Legislative Session, the State Legislature authorized an additional $1,000,000 in general obligation bonds. These bonds were sold and the funds were deposited into the DWSIRLF in December 2013. No issuance or discount costs were charged, therefore, the full $1,000,000 bond amount is available to match a portion ($1,902,240) of the FFY-2013 Cap grant and match a portion of ($3,097,760) of the remaining FFY-2012 Cap grant. The $1,000,000 state bond funds will be used as follows. • $380,448 will match the FFY-2013 Cap Grant Set-aside amount ($1,902,240). • $619,552 will match $3,097,760 of the remaining FFY-2012 Capitalization Grant. • $593,139 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will be used to complete the match of the remaining FFY- 2012 Capitalization Grant ($2,965,695). (That portion of the DWSELF which exceeds the $5,000,000 initially deposited in the fund may be used to match capitalization grant funds). • $26,861 remaining from the $620,000 used from the DWSELF Fund will be used to match a portion ($134,305) of the FFY-2013 Cap Grant. During the 2014 Regular Legislative Session, the State Legislature (House Bill No. 1495) authorized $1,000,000 in direct funding for the DWSRF program and the use of $2,000,000 in an existing MSDH account for the DWSRF program. Additionally, $180,000 was used from the Drinking Water Systems Emergency Loan Fund (DWSELF). The total of all the state match funds matched all outstanding EPA Grant funds; the remaining portion of the FFY-2013 Cap Grant

($6,727,455) and the total FFY-2014 Cap Grant ($9,159,000). The $3,180,000 of state funds was used as follows. • $1,345,491 matched the remainder of the FFY-2013 Cap Grant amount ($6,727,455). • $1,831,800 matched the FFY-2014 Capitalization Grant ($9,159,000). • $2,709 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will remain to be used as match for future Capitalization Grants. During the 2015 Regular Legislative Session, the State Legislature (House Bill No. 1555) authorized $1,200,000 in direct funding for the DWSRF program; however, due to a shortfall in State funds the authorized $1,200,000 was reduced by $99,520.00 to $1,100,479.80 in July 2015. In January 2016, due to a continuing shortfall in State revenue the Governor mandated an additional $18,000 be reduced from the State Match funds authorized by the 2015 Legislature, this reduced the authorized State match to $1,082,479.80. In March 2016, $35,509.77 was returned to the State Match funds; in April 2016 an additional $5,180.00 was removed from the State Match funds; then in May 2016 $64,010.43 was returned to the State Match funds. With all the removals and returns the final amount provided by the 2015 State Legislature was $1,176,820.00. In September 2015, EPA reduced the amount of the FFY-2015 Federal Cap Grant to $9,099,000 at the award of the FFY-2015 Cap Grant to comply with Federal debt reduction requirements; therefore, a 2015 State match of only $1,819,800 was needed for the FFY-2015 Cap Grant. The difference between the required 2015 State Match and the available 2015 State Match is $642,980.00. To provide the remainder of the required 2015 State Match for the FFY-2015 Cap Grant, the following amounts were available or transferred in 2015 from the Drinking Water Systems Emergency Loan (DWSELF) Fund;

• $2,709 remaining from a DWSELF transfer for the FFY-2014 Cap Grant match. • $728,611.20 transferred from the DWSELF Fund in August 2015 for the original FFY-2015 Cap Grant amount match. • $6,000 transferred from the DWSELF Fund in February 2016 after the second reduction in the FFY-2015 Cap Grant match by the State.

The transfers from the Drinking Water Systems Emergency Loan Fund (DWSELF) in 2015 provided an amount of $737,320.20; only $642,980.00 is required, therefore, an amount of $94,340.20 remains to be used as match for the FFY-2016 Capitalization Grant.

The FFY-2016 EPA Cap Grant amount is $8,607,000; the required State match amount is $1,721,400. During the 2016 Regular Legislative Session, the State Legislature (House Bill No. 1651) authorized $1,220,000 in direct funding for the DWSRF program; therefore, an additional $501,400 must be provided for the 2016 State match. With the $94,340.20 remaining from the State match for the

FFY-2015 Cap Grant only $407,059.80 of additional funds will be needed for the State match for the FFY-2016 Cap Grant; authorization will be requested from the Board to obtain this amount from DWSELF.

Loan Increase Reserve Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the amount indicated in Appendix A for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be made available for new loan awards to the highest ranking project(s) that is ready for loan award at the time funds become available.

B. Financial Planning Process

Efficient Bond Management The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF Fund and shall be used as the state match for federal DWSRF Cap grants.
Interest Rate Determination It is the Board’s intention to adjust interest rates such that the demand will equal the funds available. In order to ensure that this interest rate will be at or below the prevailing market rates at the time a loan is made, this rate will be compared to the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield published by The Bond Market Association/ Bloomberg (Bloomberg Online, http://www.bloomberg.com/markets/rates/index.html ).
Investment Investment Procedures for Excess Cash - According to the State Treasurer, the excess cash in the Fund is invested by the State Treasurer in securities prescribed in Section 27-105-33, et. Seq., of the Mississippi Code of 1972 Annotated, as amended. The securities in which state funds may be invested include certificates of deposit with qualified state depositories, repurchase agreements (fully secured by direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States

Government sponsored enterprise obligations), direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations, and any other open-ended or closed-ended management type investment company or investment trust registered under the provisions of 15 U.S.C. Section 80(a)-1 et. Seq, provided that the portfolio is limited to direct obligations issued by the United States of America, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations and to repurchase agreements fully collateralized by the securities listed above for repurchase agreements.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2016 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2016, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2016 may obtain an additional award(s) or an increase to a previous FFY-2016 award, if no other eligible systems are evident.
Interest Rate All loan terms will be at 1.95% annual interest rate, compounded monthly, with a maximum 20-year repayment period. The interest will not accrue during construction, but will commence at the date of completion of the original construction period.
Administration Fee Revenues to pay for Program administrative costs will be collected through an administration fee of 5% of the initial loan principal. This fee will be collected from the interest portion of loan repayments on all FFY-2015 loans.
FFY-2016 Appropriation Special Provisions The FFY-2016 Cap Grant agreement will require loan subsidization in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The amount of subsidization will be a minimum of 20% of the Cap Grant amount up to 30% of the Cap Grant amount. The FFY-2016 Cap Grant is $8,607,000; therefore, the subsidization amount will be between $1,721,400 (20%) to $2,582,100 (30%) of the Cap Grant amount.

Furthermore, all loans made with all or part FFY-2016 federal appropriation funds must include the Davis-Bacon Act requirements, the American Iron and Steel requirements, and signage requirements. Appropriate language will be added to all FFY-2016 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement; however, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.

Other Related Issues a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds provided through the FFY-2016 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. To insure that the assistance is dispersed as far as possible, the Board has set a limit ($500,000) which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for FFY-2016, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2015, and the DWSIRLF loan is awarded by September 30, 2016. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason.

iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The state plans to use $2,108,680 of the FFY-2016 Federal Capitalization grant to support the non-project-related drinking water programs activities along with an additional $860,700 in state money needed for state program management match. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take any additional set-asides from the FFY-2016 Local Assistance and Other State Programs set-aside, but reserves the right to make revisions to utilize additional funds from this set-aside. The amount of funds used from the FFY-2016 Cap Grant-Local Assistance and Other State Programs assistance set-aside will be $750,000 (8.71%).

A. Administration

Standard Capitalization Grant The state plans to reserve for use at a later date the 4% administrative set-aside from the FFY-2016 Capitalization Grant ($344,280); the state will use the 4% administrative set-aside amount previously reserved from the FFY-2008 Capitalization Grant ($325,840) by taking an equal amount from the FFY-2016 Capitalization Grant for the administration of the Program in FFY-2016. Costs beyond this set aside amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments. This change will decrease the total set-aside amount for the FFY-2016 Cap grant from $2,127,120 to $2,108,680.

($366,360) and the FFY-2015 Cap Grant ($363,960). These amounts are planned to be taken from future capitalization grants (over the next several years) for administration of the Program. Reserving previous years’ 4% administrative set- aside will ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program. The reserved set-aside amounts are based on the original capitalization grants awarded during those previous fiscal years.

B. Small System Technical Assistance

Standard Capitalization Grant The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY-2016 Cap Grant ($172,140) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; and Hands-on Operator Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix F to this IUP.

C. State Program Management

Standard Capitalization Grant The state intends to use the full 10% set-aside from the FFY-2016 Cap grant ($860,700), as authorized by Section 1452(g)(2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix G to this IUP. The state must provide a dollar-for-dollar match (100% match) for the Cap grant funds used for these activities. The dollar-for-dollar match is in addition to the twenty (20%) percent state match required for the Cap grant. The state is allowed to offset the 100% match requirement by claiming credit for State FFY-2016 PWSS expenditures that exceed the State’s FFY-2016 PWSS match requirement. The state is further allowed to use state FFY-2016 PWSS expenditures as a “coupon” to offset the 100% match requirement as long as this amount does not exceed the amount that can be claimed from FFY-2016 expenditures. The MSDH Bureau of Public Water Supply has elected to decline the “coupon” since it sees this as providing no additional monetary benefit to the State Program Management Program. A tabulation showing amount and source of funds to satisfy match requirements for the FFY-2016 State Program Management set-aside is furnished as Appendix H to this IUP.

D. Local Assistance and Other State Programs

The state intends to use $750,000 (8.71%) of the 15% set-aside amount which is allowed from the FFY-2016 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure Should any projects on the FFY-2016 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.
FFY-2016 Green Infrastructure Requirement The FFY-2016 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that

exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

Loan Decreases Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns;

b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list) and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants On October 10, 2001, EPA issued policy memorandum DWSRF 02-01 to notify regions and states of a change in policy regarding the use of DWSRF monies for providing local match for SPAP grants. This change in EPA policy will allow the state to use non-federal, non-state match DWSIRLF funds to provide loans that can be used as local match for SPAP grants awarded for drinking water projects. These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non- federal, non-state match monies have been obligated or demand for such funds has been met.
Subsidization from FFY-2016 Federal Appropriation EPA has mandated that a minimum of 20% but no more than 30% of the FFY- 2016 Cap grant be provided as additional subsidization to disadvantaged communities. Based on the FFY-2016 grant amount of $8,607,000 the amount of subsidization will be between $1,721,400 and $2,582,100. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2016 may be awarded to projects eligible for PF in FFY-2017 and FFY-2018.

The amount of PF for which a potential “Loan Recipient” (LR) may be eligible will be determined by calculating the percentage of the “Median

Household Income” (MHI) of the potential LR versus the MHI of the State of Mississippi ($36,311) as a whole.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

order of Categories II - XI is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section C.

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system

contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi

Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already

meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA (3) use consolidation with other systems to correct existing deficiencies and improve management; (4) take into consideration the system’s current capacity; (5) encourage participation in short-term and long-term technical assistance programs; and (6) encourage participation in the Drinking Water Needs Survey. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

improvement; and include only existing residences, businesses, and public buildings. Applicants must furnish information (including hydraulic analysis, if necessary) to support their estimate of the number of benefiting connections. The total eligible cost is in millions of dollars (i.e., $800,000 = $0.8 M).

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points. System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside

Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2015, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

Any significant changes made to the facilities plan (i.e., changes in the chosen alternative location of the facility, cost increases that substantially affect the financial capability of the loan recipient) after this date will be considered a first submittal of the facilities plan. The loan applicant will then be considered to be in violation of the Priority System deadline and the project will be placed on the planning portion of the priority list. If the change is made after adoption of the IUP, funds reserved for this project may be released and made available to other projects. This deadline also applies to all projects competing for released funds during FFY-2016 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2016 IUP. 2. By May 1, 2016, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2016 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2016 IUP. 3. By August 1, 2016, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2016 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2016 IUP.

VII. FFY-2016 Priority List FINAL Fiscal Year - 2016 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List Category I: Segmented Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 3533 10000 $175,500 $0 $702,000 $702,000 Jackson County Utility Authority Distribution System Improvements 39567 1732 43680 $0 $0 $6,250,000 $6,952,000 Category II: Previous Year Certified Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Mendenhall, City of Installation of 8" PVC 39114 6081 2504 $31,358 $209,050 $7,161,050 Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Yazoo, City of New Well/Water Distribution System 39194 2866 16400 $500,000 $0 $1,855,557 $9,016,607 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Duffee Water Association 500 GPM Water Well 39337 868 2617 $111,946 $0 $746,307 $9,762,914 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Jackson, City of Distribution System Improvements (Phase I) 39201 37222 174382 $500,000 $0 $2,440,400 $12,203,314 Natchez, City of New 500,000 Ga. Tank/Distribution Lines 39120 5979 18340 $500,000 $1,675,800 $13,879,114 North Lauderdale Water Assn. New 500,000 Gal. Elevated Tank/Replace 39320 2528 10000 $0 $0 $1,562,200 $15,441,314 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Bear Creek Water Assn. Installation of 16"and 20" Water Mains 39046 1829 40000 $0 $0 $4,100,000 $19,541,314 Monday, January 11, 2016 Page 1 of 2

Category VIII: Back-up Water Supply Sources Projects

Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Winona, City of New Water Well 38967 6515 5800 $100,625 $0 $402,500 $19,943,814 Madison, City of Construction of 1Mil Gallon Storage Tank 39110 1664 13986 $0 $0 $2,800,895 $22,744,709 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Jackson, City of O B Curtis Water Treatment Improvements (Phase 39201 25940 174382 $500,000 $0 $3,501,800 $26,246,509 Jackson, City of J H Fewell Water Treatment Improvements (Phase I) 39201 18464 174382 $500,000 $0 $4,919,720 $31,166,229 Lumberton, City of Replace/Upgrade Water Mains 39455 2440 2228 $276,975 $1,107,900 $32,274,129 Wiggins, City of 1000 GPM Well/3,000 ft.8" Main/Seal Well 39577 1055 4747 $402,667 $0 $1,610,668 $33,884,797

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2016 based on the funds authorized and provided by the 2016 Legislature. The funding available in FFY-2016 should equal $43,585,050. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. CPF – Cumulative Principal Forgiveness CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency.

Monday, January 11, 2016 Page 2 of 2

FINAL Fiscal Year - 2017 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2015 deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.)

Category II: Previous Year Certified Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Kokomo-Shiloh Water Assn. New Well/Water Treatment Plant/Sys. 39643 690 2775 $0 $0 $1,696,300 $1,696,300 Sylvarena Water Assn. New Water Well 39153 259 786 $0 $0 $1,100,000 $2,796,300 Valley Park Water Assn., Inc. New Well/Install 36 New Meters 39177 65 731 $0 $0 $629,400 $3,425,700 Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 5277 10000 $0 $0 $470,000 $3,895,700 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $4,481,700 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $5,067,700 Lily Rose Water Assn Install Master Meters/Well/Rehab Tank/Ext. 4" 39474 1652 3504 $0 $0 $891,658 $5,959,358 Ebenezer Rural Water Assn. Back-up Water Well 39095 616 765 $0 $0 $621,000 $6,580,358 Pearlington Water & Sewer District New Back-up Water Well 39572 451 1325 $0 $0 $1,515,000 $8,095,358 Lebanon Water Association New 400 GPM Well/Upgrade SCADA 39095 368 2160 $0 $0 $999,750 $9,095,108 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Homestead Water Association Consolidate Systems/Rehab 2 Tanks/Booster 39648 1439 1850 $0 $0 $595,100 $9,690,208 -------------------------------------------------------------------------- Funding Line $9,700,253 ------------------------------------------------------------------------------------------------------- Troy Water Association Const. of Approx. 29,300 6" & Sm. LF Distrib. 38863 80 1566 $0 $0 $610,300 $10,300,508 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Aberdeen, City of 400 GPM Well/100,000 Gal. Elev. Tank/Rehab 39730 2316 6415 $370,487 $1,481,949 $11,782,457 New Zion Utilities, Inc. Install Approx.18,700 LF PVC Main/Well Prot. 39577 1394 2600 $0 $0 $554,475 $12,336,932 Wednesday, September 21, 2016 Page 1 of 3

Willow Grove Water Association Distribution System Improvements 39428 1238 1950 $0 $0 $681,000 $13,017,932 Guntown, City of Water Sys. Improvements/Valves/Lines/Meters 38849 1219 2912 $0 $0 $975,000 $13,992,932 Ridgeland, City of New 1,600 GPM Well/500,000 Gallon Tank 39158 491 24000 $0 $3,434,404 $17,427,336 Ridgeland, City of Two 1,600 GPM Ser. Pumps/Rehab Current 39158 348 24000 $0 $4,840,000 $22,267,336 Category VI: Source Water Protection Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Rehab Existing Facilities 38606 9629 7600 $102,500 $410,000 $22,677,336 Walnut, Town of Installation of Water Lines/2 Master water Meters 38683 3064 1397 $0 $0 $256,000 $22,933,336 Pearl River Central Water Assn. Install/reconnect 32,800 LF PVC Water Main 39426 2647 12800 $0 $0 $1,464,705 $24,398,041 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Installation of Water lines 38606 31582 7600 $37,500 $125,000 $24,523,041 Batesville, City of Installation of Water Lines 38606 26319 7600 $37,500 $150,000 $24,673,041 Ridgeland, City of Enhance Distribution System/Install 12 in. Lines 39157 15710 24000 $0 $0 $830,375 $25,503,416 Batesville, City of Rehab/Replacement of Existing Facilities 38606 14356 7600 $68,750 $275,000 $25,778,416 Batesville, City of Rehab Existing Facilities 38606 11279 7600 $87,500 $350,000 $26,128,416 McComb, City of 1000 GPM Well/Generator/Fence/12" Main 39648 6589 12790 $0 $0 $1,236,000 $27,364,416 Batesville, City of 500,000 Gallon Elevated Tank 38606 5264 7600 $187,500 $750,000 $28,114,416 Short Coleman Park Water Assn. Repaint 2 Elevated Tanks/250,000/500,000 GAL 38852 3183 5004 $0 $0 $561,915 $28,676,331 Central Yazoo Water Association Upgrade Meters to Auto Read Meters 39194 2717 8085 $0 $0 $1,121,884 $29,798,215 Brandon, City of 1000 GPM Well/1 Mil Gal Above Ground 39042 2504 26355 $0 $0 $4,275,000 $34,073,215 Bay Springs, Town of New 1,000 GPM Well 39422 2254 2000 $340,010 $617,000 $34,690,215 McLain, Town of New 8" Val on Existing Mains/Meters/1000 Ft. 39456 1466 441 $0 $0 $142,111 $34,832,326 Southeast Rankin Water Assn., Inc. New Water Well/Water Distribution System 39151 1393 0 $0 $0 $1,154,000 $35,986,326 Culkin Water District Expansion of Existing Water Treatment Plant 39183 771 11317 $0 $0 $5,516,177 $41,502,503 Sumner, Town of Rehab Original Distribution System 38957 378 316 $0 $0 $719,274 $42,221,777 SE Greene Water Authority Upgrade Existing Distribution System 39451 296 1572 $0 $0 $2,649,569 $44,871,346 Burnsville, Town of Surface Water Supply Facilities/meters/Booster St 38833 172 1034 $0 $0 $2,871,179 $47,742,525 Helena Utility District Enhance Water Distribution System 39562 149 700 $0 $0 $1,883,000 $49,625,525 Nicholson Water & Sewer Assn. Installation of Approx. 10,400 L.F. of Water Main 39463 82 3500 $270,450 $0 $1,803,000 $51,428,525 Wednesday, September 21, 2016 Page 2 of 3

Category VIII: Back-up Water Supply Sources Projects

Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of New 750 GPM Well 38606 7896 7600 $125,000 $500,000 $51,928,525 Batesville, City of Rehab Existing Infrastructure 38606 7896 7600 $125,000 $500,000 $52,428,525 Ridgeland, City of 1,600 GPM Potable Water Well 39158 3663 24000 $0 $2,189,300 $54,617,825 Picayune, City of Installation of New Water Mains 39466 1719 12000 $0 $0 $3,500,000 $58,117,825 Taylorsville, Town of Water System Improvements/Well/Scada 39168 1660 2000 $0 $0 $455,000 $58,572,825 Hilldale Water Association, Inc 300,000 Gal. Elevated Tank 39180 1520 5400 $0 $1,184,490 $59,757,315 Hazlehurst, City of New Well & Raw Water Line 39083 1412 4400 $375,000 $0 $1,500,000 $61,257,315 Mt. Gilead-Improve Water Assoc. New Water Treatment Plant/Elevated Tank Rehab 39429 896 3000 $0 $0 $1,357,400 $62,614,715 Multi-Mart Waterworks Assn. Replace Approx. 16,500 LF Water Main with 39451 679 2652 $0 $0 $862,845 $63,477,560 Horn Lake, City of New Well/Tank Upgrade Existing Facility 38637 485 1500 $0 $0 $2,474,600 $65,952,160 Marion, Town of 600 GPM Tr. Facil./600 GPM Well/Generator 39342 367 2000 $500,000 $2,748,800 $68,700,960 Meridian, City of Filter Underdrain & Media Replacement 39301 0 40000 $0 $0 $4,620,000 $73,320,960 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Ridgeland, City of Upgrade/Replace Existing Water Lines 39157 18530 24000 $0 $0 $704,000 $74,024,960 Ridgeland, City of Water Line Relocation 39158 10108 24000 $0 $793,400 $74,818,360 Collins, Town of Water Line Replacement 39428 9961 4000 $48,664 $139,040 $74,957,400 Collins, Town of Water Line Replacement 39428 8766 4000 $55,300 $158,000 $75,115,400 Collins, Town of Water Line Replacement 39428 8766 4000 $55,300 $158,000 $75,273,400 Grenada, City of 2 500 GPM Wells/500,000 Gallon Elevated Tank 38901 4391 22951 $500,000 $2,202,700 $77,476,100 Mount Olive, Town of Replacement of Water Lines 39119 2348 1000 $80,962 $231,320 $77,707,420 Lorman Waterworks Association, Distribution Sys. Improvements/Rehab Water 39096 1243 1918 $0 $0 $980,000 $78,687,420 Alcorn Co. Water Association 300,000 Gal Storage Tank/upgrade Facilities 38834 1187 6500 $190,965 $1,273,101 $79,960,521 Alcorn Co. Water Association Renovate Elevated tanks/Replace Water Lines 38834 1155 6500 $130,938 $872,920 $80,833,441 Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treatment 39114 531 2504 $138,750 $2,634,100 $83,467,541 White Oak Water Assn. New Water Well 39117 467 831 $0 $0 $611,000 $84,078,541

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2016 based on the funds authorized and provided by the 2016 Legislature. The funding available in FFY-2016 should equal $43,585,050. PF – Principal Forgiveness – Method of Subsidization the state has elected to use. DW – Drinking Water System Improvement Revolving Loan Fund – includes repayments, interest and FFY-2015 & FFY-2016 Capitalization Grants. Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative

Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency.

Tuesday, September 21, 2016 Page 3 of 3

VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2016 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2016 DWSRF Work Plan.

(Blank)

Appendices

Appendix A - Part 1A FFY-2016 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2015

FFY-2016 National Title I DWSRF Appropriation (Estimate) (Using FFY-2015 Amount)

$906,896,000

Mississippi's Allotment [section 1452(m)] (Estimate) (Using FFY-2015 Amount)

$9,099,000 FFY-2016 State Match Required (20% of Mississippi's Allotment) (Estimated) (Using FFY-2015 Amount)

$1,819,800 Total FFY-2016 Federal Allotment and Required State Match (Estimate):

$10,918,800 FFY-2016 Funding (Federal and State) (Estimate)

$10,918,800

FFY-2015 Cap Grant Set-Asides

$2,162,044

$8,756,756 FFY-2016 DWSRF Funds Projections

$41,164,967

Appendix A - Part 2A FFY-2015 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2015

FFY-2015 National Title I DWSRF Appropriation (Actual)

$906,896,000

Mississippi's Allotment [section 1452(m)] (Actual FFY-2015) (Actual)

$9,159,000 FFY-2015 State Match Required (20% of Mississippi's Allotment) (Actual) + $1,831,800 Total FFY-2015 Federal Allotment and Required State Match (Actual):

$10,990,800 FFY-2015 Actual Funding (Federal and State)

$19,066,455 FFY-2014 Cap Grant Set-Asides

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2004)

$332,124 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $183,180 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~5.2%) + $500,000 State Program Management [section 1452(g)(2) -10%] + $915,900 Total FFY-2014 Cap Grant Set-Asides:

$1,931,204 Total FFY-2014 Federal & State Funds Available in FFY-2015 for Loan Obligation & Set-asides

$19.066,455 Less FFY-2014 Set-asides - $1,931,204 Total Federal & State Funds Available in FFY-2015 for Loan Obligation

$17,135,251 FFY-2015 DWSRF Funds & Repayments (Actual)

$41,897,233 Loan Awards made during FFY-2015 (13 Initial Loans for $20,323,503)

($20,323,503) FFY-2015 Carryover Funds to FFY-2016

$21,573,730

Appendix A - Reference Notes:

Part 1A - FFY-2016 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program & Part 2A - FFY-2015 End-of Year Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program

Mississippi will apply for the entire FFY-2016 Cap Grant if State match funds are provided by the Legislature. Cap Grant funds must be matched within 24 months of award.
Mississippi applied for the entire FFY-2015 Cap Grant (All Cap Grant Funds were awarded).

During the 2015 Regular Legislative Session, the State Legislature (House Bill No. 1555) authorized $1,200,000 in direct funding for the DWSRF program; however, due to a shortfall in State funds the authorized $1,200,000 was reduced by $99,520.00 to $1,100,479.80 in July 2015. In January 2016, due to a continuing shortfall in State revenue the Governor mandated an additional $18,000 be reduced from the State Match funds authorized by the 2015 Legislature, this reduced the authorized State match to $1,082,479.80. In March 2016, $35,509.77 was returned to the State Match funds; in April 2016 an additional $5,180.00 was removed from the State Match funds; then in May 2016 $64,010.43 was returned to the State Match funds. With all the removals and returns the final amount provided by the 2015 State Legislature was $1,176,820.00. In September 2015, EPA reduced the amount of the FFY-2015 Federal Cap Grant to $9,099,000 at the award of the FFY-2015 Cap Grant to comply with Federal debt reduction requirements; therefore, a 2015 State match of only $1,819,800 was needed for the FFY-2015 Cap Grant. The difference between the required 2015 State match and the available 2015 State match is $642,980.00. To provide the remainder of the required 2015 State match for the FFY-2015 Cap Grant, the following amounts were transferred in 2015 from the Drinking Water Systems Emergency Loan (DWSELF) Fund;

• $2,709 remaining from a DWSELF transfer for the FFY-2014 Cap Grant match.

• $728,611.20 transferred from the DWSELF Fund in August 2015 for the original FFY- 2015 Cap Grant amount match. • $6,000 transferred from the DWSELF Fund in February 2016 after the second reduction in the FFY-2015 Cap Grant match by the State.

Appendix B Part I Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2015 Set-aides Federal 1Q FFY-16 2Q FFY-16 3Q FFY-16 4Q FFY-16 Total Administrative $80,041 $80,041 $80,041 $80,041 $320,164 Small Sys. Tech Assist. $45,495 $45,495 $45,495 $45,495 $181,980 State Program Mgmt. $227,475 $227,475 $227,475 $227,475 $909,900 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $540,511 $540,511 $540,511 $540,511 $2,162,044

FFY-2016 Set-asides Federal 1Q FFY-17 2Q FFY-17 3Q FFY-17 4Q FFY-17 Total Administrative $81,460 $81,460 $81,460 $81,460 $325,840 Small Sys. Tech Assist. $43,035 $43,035 $43,035 $43,035 $172,140 State Program Mgmt. $215,175 $215,175 $215,175 $215,175 $860,700 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $527,170 $527,170 $527,170 $527,170 $2,108,680

FFY-2016 Set-asides will not be available for use until FFY-2017; in FFY-2016 the program will operate using the FFY 2015 Set-asides.

Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

Payment (LOC) Number Payment (LOC) Date Payment (LOC) Amount Cumulative (LOC) Amount FFY-2015

FFY-2015 Cap Grant No. 1 of 4 1 st Quarter FFY-2016 $2,161,964

$2,161,964

FFY-2015 Cap Grant No. 2 of 4 2nd Quarter FFY-2016 $2,312,345

$4,474,309 FFY-2015 Cap Grant No. 3 of 4 3rd Quarter FFY-2016 $2,312,345

$6,786,654 FFY-2015 Cap Grant No. 4 of 4 4th Quarter FFY-2016 $2,312,345

$9,099,000

FFY-2016

FFY-2016 Cap Grant No. 1 of 4 1 st Quarter FFY-2017 $2,151,750 $2,151,750 FFY-2016 Cap Grant No. 2 of 4 2nd Quarter FFY-2017 $2,151,750 $4,303,500

FFY-2016 Cap Grant No. 3 of 4 3rd Quarter FFY-2017 $2,151,750 $6,455,250

FFY-2016 Cap Grant No. 4 of 4 4th Quarter FFY-2017 $2,151,750 $8,607,000

Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount FFY-2016

1 st Quarter FFY-2016

$2,161,964

$2,161,964 2nd Quarter FFY-2016

$2,312,345

$4,474,309 3rd Quarter FFY-2016

$2,312,345

$6,786,654 4th Quarter FFY-2016

$2,312,345

$9,099,000

FFY-2017

1 st Quarter FFY-2017 $2,151,750 $2,151,750 2nd Quarter FFY-2017 $2,151,750 $4,303,500

3rd Quarter FFY-2017 $2,151,750 $6,455,250

4th Quarter FFY-2017 $2,151,750 $8,607,000

Appendix E Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS The current technical assistance contracts expire on June 30, 2017.

Prior to the expiration of the existing contracts an Invitation for Bids (IFB) for technical assistance will be sent out to potential contractors. All proposals will be evaluated by the Department and recommendations for aware will be presented to the Board (at a regularly scheduled Board meeting); all contracts will be awarded.

The current contracts will cover a contract period to June 30, 2017. The contracts for technical assistance are currently as following: Small Systems Technical Assistance (long-term and intermediate technical assistance) - Mississippi State University Extension Service; Board Management Training Monitoring and Coordination for Water System Officials - Mississippi State University Extension Service; Hands-On Operator Training - Mississippi Rural Water Association, Inc.; PEER Review Program for Public Water Supplies - Mississippi Rural Water Association, Inc.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

- Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply

will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Intermediate technical assistance projects will be counted toward the minimum twelve (12) required comprehensive projects at a ratio of 2:1 (two intermediate projects will be the equivalent of one comprehensive project).

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

thousand (10,000), shall attend a minimum of eight (8) hours of management training within two (2) years following the election of that board member. If a board member has undergone training and is reelected to the board, that board member shall not be required to attend training. The management training shall be organized by the MSDH. The management training shall include information on water system management and financing, rate setting and structures, operations and maintenance, applicable laws and regulations, ethics, the duties and responsibilities of the association and other organizations. The Department shall develop and provide all training materials. To avoid board members having to interfere with their jobs or employment, management training sessions may be divided into segments and, to the greatest extent possible, shall be scheduled for evening sessions. The Department shall conduct management training on a regional basis.” The contractor shall: serve as the coordinator for MSDH in regards to all activities related to the implementation of the training program in the state; randomly attend training sessions to ensure the established curriculum is being followed and that the curriculum is relevant and effective; manage the Board Member Training Curriculum Review Committee; continue to update the established computerized database to accurately track the most current status of each board member attending the program; and other related duties.

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Appendix F Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After review of the Draft FFY-2016 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft FFY-2016 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2016 IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2016 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% ($860,700) of the FFY-2016 DWSRF capitalization grant as a set- aside for State Program Management activities of the PWSS Program. The reserved amount will offset the expenses of 8.82 positions of the PWSS Program.

Cost Breakdown Administrative/Staffing $541,420 Fringe Benefits $184,083 Travel $0.00 Supplies $253 Contractual $0.00 Indirect Costs $134,944 Total Funding Amount $860,700

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects thirty-eight (38) FTEs will be required to implement the FFY-2016/2017 PWSS Program. A total of 8.82 FTEs will be funded by this set-aside. An estimated $725,503 will be reserved from the FFY-2016 DWSRF Capitalization Grant for salaries and fringe benefits for State Program Management activities.

This amount will fund salary and fringe benefits for the following positions:

Position

Quantity (FTE) Engineering Admin. Supervisor 1.0 Engineer IV, Environmental 1.0 Engineer I, Environmental 1.0 Engineering (EIT) 3.0 Environmental Admin. 1.0 Division Director I 0.82 Special Projects Officer II 1.0

Total FTEs 8.82

Of the remainder, $134,944 will be used for indirect costs to accomplish the requirements of the FFY-2016/2017 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

utilizing approved laboratories and a certification program for those laboratories is in place; participating in the EPA Regional oversight; operating in accordance with requirements of the National Primary Drinking Water Regulations; maintaining an active water system design and construction plan and specification review program; ensuring labs used by PWSs within the state are capable of the workload created by regulations; participating in PWS and PWSS training on rule requirements; informing EPA Region 4 of any special state initiatives under the rules or provisions of the SDWA; maintaining records for all rule/policies, enforcing reporting and record keeping as required; maintaining appropriate administrative penalty authority; implementing the PWS definition; attending state/EPA planning and implementation meetings; ensuring that newly permitted PWSs have design/construction capable of compliance with the present and upcoming SDWA regulations; ensuring analytical methods are being applied to demonstrate compliance with the regulations; notifying (if necessary) EPA of intent not to adopt or implement any portion of the rules; and responding to EPA requests for information or verification of state rules implementation.

Non-primacy Requirements

Capacity Development (CD) Program

progress towards improving the capacity of PWSs in the state. Additionally, annual documentation of ongoing implementation of the CD strategy is to be provided with DWSRF Capitalization Grant application.

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

Appendix G Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contract for coordination of the decommissioning/properly closing inactive water wells/open holes was bid and awarded; the contract will run through June 30, 2017. A new contract for the decommissioning/properly closing inactive water wells/open holes is currently being developed in accordance with new State contracting requirements.

An Invitation For Bids (IFBs) for the coordination of the decommissioning/properly closing inactive water wells/open holes was sent to qualified potential contractors. Bids received were reviewed by the Department to select the lowest and best bid for the agency. Recommendations for award of a contract were presented to the Board at their regularly scheduled Board meeting; following authorization by the Board, the coordination contract was awarded.

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Mississippi Rural Water Association (MsRWA).

The second contract (well closure contract) – is currently being developed in accordance with new State contracting requirements .

PROGRAM ACTIVITIES

encourage proper abandonment; mobilization of well contractor to identified site to perform the work; and confirmation that the work has been completed.

Identification – The contractor will use a list provided by the Department through a cooperative effort with the Mississippi Department of Environmental Quality Office of Groundwater Resources (MDEQ) to identify wells or open holes owned by particular water systems to be abandoned. Wells/holes deemed high risk by MDEQ will be sought out first for abandonment. Upon completion, wells/holes that are considered medium risk will be addressed next, then low risk.

Communication – Staff from the contractor will meet with system officials to encourage them to properly abandon existing inactive wells or open holes posing risk of contamination to their water system and aquifer. This is considered essential to successfully achieving the goal of abandoning those wells/holes posing risk.

Mobilization – Once the communication phase has been completed, staff of the MSW&MW, the licensed well driller contractor and the well closure coordinator will mobilize to the selected site and commence with the proper abandonment of the well/hole. This will be accomplished in accordance with established guidelines set forth by the MDEQ Office of Groundwater. When the abandonment is complete, the well contractor will contact the well closure coordinator to inform them of project completion.

Confirmation – Staff of the well closure coordinator will perform site visits to confirm proper abandonment of the wells/holes. When the abandonment is confirmed, the well closure coordinator will notify the Department to ensure that each abandoned well matches invoices submitted for payment.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

Appendix H Mississippi State Program Management Set-Aside Match Requirements - Mississippi 1:1 Requirement

FFY-2016 PWSS Grant $860,700 State Required Match for PWSS Grant $860,700 Actual State PWSS Contribution $3,264,627 State PWSS Overmatch $2,403,927 State PWSS Expenditures Eligible for 1:1 SPM Match $3,264,627 State PWSS Expenditures Claimed for 1:1 SPM Match $860,700

Mississippi requests $860,700 of its FFY-2016 DWSRF Capitalization Grant be set-aside for State Program Management (SPM) to support Public Water Supply Supervision (PWSS) activities. To comply with the additional 1:1 match requirement for SPM set-asides, $860,700 in additional state funds will be required. The state will provide an estimated $2,403,927 above the state’s PWSS match requirement in FFY-2016. This contribution is provided through the collection of Water Quality Analysis Fees by the MSDH Bureau of Public Water Supply. In accordance with Section 1452(g)(2) of the SDWA of 1996, the state claims $860,700 from its FFY-2016 PWSS overmatch as credit to satisfy the $860,700 additional state match required to set-aside $860,700 of its FFY-2016 Capitalization Grant for SPM activities.

Appendix I Coordination Schedules for Jointly Funded Projects FFY-2016 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

These schedules are designed to help assure coordination between the DWSIRLF Program and the Appalachian Regional Commission (ARC) Grant Program, Community Development Block Grant (CDBG) Program, and Rural Utilities Service (RUS) Loan/ Grant Program. These schedules are, however, subject to change due to the timing of federal appropriations or program changes. Date(s) Schedule Item(s)/Deadline(s) ARC CDBG RUS* May 1, 2015 Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2015, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1, 2015 All FY-16 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2015** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding.** Oct, 2015 MS State Dept. of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY-2016 ARC funding. MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-16 DWSIRLF funding. MS State Dept. of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2015 CDBG funding. MS State Dept. of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which indicate anticipated FY-2016 RUS funding Nov 15, 2015 MARO completes review of FY-2016 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A)

ARC CDBG RUS Nov 15-30, 2015 MARO notifies local Planning & Development Districts of projects that have been selected for the P1 (fundable priority list). MARO will copy MSDH on these notification letters if grantee has indicated that it is pursuing DWSIRLF loan funds for the project. MSDH will not award a DWSIRLF loan until this notification from MARO is provided. (N/A) (N/A) Oct 18, 2015 (N/A) CDBG program application workshops.*** (N/A) Nov, 2015 MSDH advertises Draft DWSIRLF FFY-2016 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY- 2016 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2016 Intended Use Plan for public comment. Dec 30, 2015 Deadline for all FY-2014 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A) Dec, 2015 Board adopts FFY-2016 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2016 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2015 until 8/2016 Board adopts FFY-2016 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20, 2016 (N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan, 2016 MSDH notifies MARO of projects included on final FFY-2016 Priority List that anticipate receiving FFY-2016 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2016 Priority List that anticipate receiving FFY-2016 CDBG funds.

MSDH notifies RUS of projects included on the final FFY-2016 Priority List that anticipate receiving FFY-2016 RUS funds.

ARC CDBG RUS Feb 1, 2016 MARO sends project applications to ARC- Washington to start final funding approval process. (N/A) (N/A) Feb 16, 2016 (N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2016 until 4:00 p.m. on 2/17/2016. (N/A) Feb- Jun, 2016 ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2016. (N/A) (N/A) Mar, 2016 (N/A) MDA provides notification to MSDH that complete CDBG applications have been received.

(N/A) May 1, 2016** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs.** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

ARC CDBG RUS May, 2016 (N/A) MDA provides notification to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. (NOTE: MSDH will not award a DWSIRLF loan until this notification from MDA is provided.) (N/A) Jun, 2016 MSDH provides notification to MARO that complete DWSIRLF loan applications have been received. MSDH provides notification to MDA that complete DWSIRLF loan applications have been received. MDA provides conformation to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. MSDH provides notification to RUS that complete DWSIRLF loan applications have been received. (Upon Grant Award) MARO provides notification to MSDH that ARC awards have been made. MDA provides notification to MSDH that CDBG awards have been made. RUS provides notification that RUS awards have been made Aug 1, 2016** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** May-Sep, 2016 Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the ARC award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the CDBG award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the RUS award amount to be applied to DWSIRLF eligible costs. If loan applicant desires DWSIRLF loan award prior to RUS award, loan applicant must provide MSDH with a copy of letter from RUS which states their project will be funded only contingent upon receipt of DWSIRLF matching funds. MSDH will not award a DWSIRLF loan until that notification from RUS is provided.

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year, and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year, and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: 844-325-7034.

** FFY- 2016 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

62 -

Appendix J Drinking Water Systems Emergency Loan Fund Program

Section 41-3- 16, Mississippi Code of 1972, as amended, created the Drinking Water Systems Emergency Loan Fund Program (DWSELF). This program provides loans to counties, municipalities, districts, or other (tax exempt) water organizations for emergency construction, repair, or replacement of drinking water facilities. This entirely state-funded loan program provides a ready funding source for such emergency projects without the federal cross-cutter requirements required in the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, thereby saving valuable time and expense. This Program eliminates the need to address emergency loans in the DWSIRLF. The Board encourages eligible water organizations throughout the state to utilize this program whenever emergency drinking water projects are needed.

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

63 -

Appendix K - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can also be found on the MSDH’s website at www.msdh.state.ms.us/dwsrf .

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

64 -

The state certifies that prior to adding any new projects to the FFY-2017 and After Planning List for the purpose of funding such a project during FFY-2016 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

Part 8 Part 8: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 8, R. 2012 Rule 2012

Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.
Meet special funding goals: The FFY-2017 federal appropriation may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects: Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.
Set-aside Accounts: The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems through the current contractual services with Mississippi State University – Extension Service (MSU-ES) and the Mississippi Rural Water Association (MsRWA). c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program through current contractual services with the Mississippi Rural Water Association (MsRWA) and a well decommissioning contractor.

B. DWSIRLF State Match Funds

As required by the SDWA, the State of Mississippi must match the Cap grant with state funds equaling 20% of the federal allotment. Mississippi historically has received the required 20% state match from the sale of General Obligation bonds authorized by the State Legislature and sold by the Mississippi State Bond Commission; however, since the 2014 legislative secession, the State Legislature has authorized a direct appropriation for the state match. While state match monies are maintained separately from the Fund for accounting purposes, they are still considered to be under the “umbrella” protection of the DWSRF Fund.

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The amount of the FFY-2017 Cap Grant from EPA for Mississippi is not known at this time; therefore, the grant amount received by Mississippi in FFY-2016 will be used in this IUP for planning purposes until the actual Cap Grant amount is provided. A Cap Grant amount of $8,607,000 is used for these purposes. Funding amounts and their use are outlined in Appendix A.

Using an anticipated FFY-2017 EPA Capitalization Grant allotment for Mississippi of $8,607,000 a 20% state match of $1,721,400 is required; this provides an anticipated amount of $10,328,400 for both loans and set-aside activities.

With $2,108,680 being utilized for set-aside activities $8,219,720 will remain for loans to Mississippi public water supplies; additionally, unobligated funds from the previous year, anticipated loan repayments and interest earnings (all of which are not classified as state match) will also be available as additional funding sources.

The FFY-2017 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment

If the FFY-2017 Capitalization Grant for Mississippi is $8,607,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.94% state match funds to 79.06% federal grant funds; this requirement will be stated in the grant application.

State Match Requirements Until 2014 the state 20% match was provided through the sale of General Obligation bonds authorized by the State Legislature. The Legislature passed House Bill No. 209 to establish a Local Governments and Rural Water Systems Improvements Revolving Loan Program and authorized the sale of $15,000,000 in General Obligation Bonds which were deposited into the Fund. As stated in the law, one of the purposes for these funds is that, “All or any portion of the monies in the fund may be used to match any federal funds that are available for the same or related purposes for which funds are used and expended under this act.” Initially, $10,000,000 of these General Obligation bonds were sold in May of 1997 and the proceeds were deposited into the Fund on May 29, 1997. Later, the remaining $5,000,000 of the original bonding authority was sold and deposited into the Fund on October 5, 2000.  $3,294,840 was used as match for the FFY-1997 Cap grant,  $1,654,340 was used as match for the FFY-1998 Cap grant,  $1,733,900 was used as match for the FFY-1999 Cap grant,  $1,802,020 was used as match for the FFY-2000 Cap grant,  $1,809,480 was used as match for the FFY-2001 Cap grant,  $1,610,500 was used as match for the FFY-2002 Cap grant,  $1,600,820 was used as match for the FFY-2003 Cap grant,  $1,494,100 was used as match for $7,470,500 of the FFY-2004 Cap grant. During the Spring 2003 Legislative Session, the Legislature provided the Board with an additional $130,000 in bonding authority. Additionally, during the Spring 2004 Legislative Session, the Legislature authorized $1,613,000 in general obligation bonds. A total of $1,740,000 was deposited in the DWSIRL Fund during the 1 st Quarter of FFY-2005.  $129,776 was used as match for $648,880 of the FFY-2004 Cap grant.  $36,744 was used as match for $183,720 which was the remaining FFY- 2004 Cap grant.  $1,573,480 was used as match for $7,867,400 of the FFY-2005 Cap grant. During the 2006 Regular Legislative Session, the Legislature authorized the sale of general obligation bonds in the amount of $4,003,000, which were sold and deposited in the SRF Fund during the 1 st Quarter of FFY-2007. After paying the issuance cost of $2,128.26:  $83,620 was used to match the remaining $418,100 of the FFY-2005 Cap grant.  $1,645,860 was used to match the FFY-2006 Cap grant ($8,229,300).  $1,645,800 was used to match the FFY-2007 Cap grant ($8,229,000).  $625,591 was used to match a portion ($3,127,955) of the FFY-2008 Cap grant.

During the 2008 Regular Legislative Session, the State Legislature authorized an additional $4,000,000 in general obligation bonds which were sold and deposited into the Fund during the 1 st Quarter of FFY-2009. After paying issuance costs of $2,256.05:  $1,003,609 was used to match the remaining FFY-2008 Cap grant.  $1,629,200 was used to match the FFY-2009 Cap grant ($8,146,000).  $1,364,935 was used to match a portion of the FFY-2010 Cap grant or $6,824,675. During the 2010 Regular Legislative Session, the State Legislature authorized an additional $1,400,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2010. After paying issuance cost of $9,087:  $1,390,913 was used to match a portion ($6,954,566) of the FFY-2010 Cap grant. During the 2011 Regular Legislative Session, the State Legislature authorized an additional $2,700,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2011. After paying issuance and discount costs of $13,105:  $69,152 was used to match the remaining FFY-2010 Cap grant ($345,760).  $1,960,400 was used to match the FFY-2011 Cap grant (9,802,000).  $1,834 was used to match $9,166 which was transferred to DWSIRLF from the remaining balance of the MS Operator Certification Grant for making additional loans.  The remaining $655,509 was used to match $3,277,545 of the FFY-2012 capitalization grant leaving a balance of $6,063,455 to be matched. During the 2013 Regular Legislative Session, the State Legislature authorized an additional $1,000,000 in general obligation bonds. These bonds were sold and the funds were deposited into the DWSIRLF in December 2013. No issuance or discount costs were charged, therefore, the full $1,000,000 bond amount is available to match a portion ($1,902,240) of the FFY-2013 Cap grant and match a portion of ($3,097,760) of the remaining FFY-2012 Cap grant. The $1,000,000 state bond funds will be used as follows.  $380,448 will match the FFY-2013 Cap Grant Set-aside amount ($1,902,240).  $619,552 will match $3,097,760 of the remaining FFY-2012 Capitalization Grant.  $593,139 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will be used to complete the match of the remaining FFY- 2012 Capitalization Grant ($2,965,695). (That portion of the DWSELF which exceeds the $5,000,000 initially deposited in the fund may be used to match capitalization grant funds).  $26,861 remaining from the $620,000 used from the DWSELF Fund will be used to match a portion ($134,305) of the FFY-2013 Cap Grant. During the 2014 Regular Legislative Session, the State Legislature (House Bill No. 1495) authorized $1,000,000 in direct funding for the DWSRF program and

During the 2015 Regular Legislative Session, the State Legislature (House Bill No. 1555) authorized $1,200,000 in direct funding for the DWSRF program; however, in July 2015 due to a shortfall in State funds the authorized $1,200,000 was reduced by $99,520.00 to $1,100,479.80. In January 2016, due to a continuing shortfall in State revenue the Governor mandated an additional $18,000 be reduced from the State match funds authorized by the 2015 Legislature, this reduced the authorized State match to $1,082,479.80. In March 2016, $35,509.77 was returned to the State match funds; in April 2016 an additional $5,180.00 was removed from the State match funds; then in May 2016 $64,010.43 was returned to the State match funds. With all the removals and returns the final amount provided by the 2015 State Legislature was $1,176,820. In September 2015, EPA reduced the amount of the FFY-2015 Federal Cap Grant to $9,099,000 at the award of the FFY-2015 Cap Grant to comply with Federal debt reduction requirements; therefore, a 2015 State match of only $1,819,800 was needed for the FFY-2015 Cap Grant. The difference between the required 2015 State match and the available 2015 State match is $642,980.00. To provide the remainder of the required 2015 State match for the FFY-2015 Cap Grant, the following amounts were available or transferred in 2015 from the Drinking Water Systems Emergency Loan (DWSELF) Fund;  $2,709 remaining from a DWSELF transfer for the FFY-2014 Cap Grant match.  $728,611.20 transferred from the DWSELF Fund in August 2015 for the original FFY-2015 Cap Grant amount match.  $6,000 transferred from the DWSELF Fund in February 2016 after the second reduction in the FFY-2015 Cap Grant match by the State. The transfers from the Drinking Water Systems Emergency Loan Fund (DWSELF) in 2015 provided an amount of $737,320.20; only $642,980.00 is required, therefore, an amount of $94,340.20 remains to be used as match for the FFY-2016 Capitalization Grant.

State match amount is $1,721,400. In September 2016 due to a continuing shortfall in State revenue the Governor mandated that the funds authorized by the 2016 Legislature be reduced by $19,834 to $1,200,166. In January 2017 due to the continuing shortfall in State revenue the Governor mandated a second reduction in the amount of $17,746; this reduced the available State funds to $1,182,420. With the $94,340.20 remaining from the match funds for the FFY- 2015 EPA Cap Grant, an additional $444,639.80 will be needed as State match for the FFY-2016 Capitalization Grant; the Board will be requested to authorize the use of additional funds from DWSELF as the State match. It is anticipated that the State Legislature will continue to provide a direct appropriation for the State’s 20% match portion of the FFY-2017 EPA Capitalization Grant. If this happens, the match amount would be $1,721,400 for a grant amount of $8,607,000. 3. Loan Increase Reserve Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the amount indicated in Appendix A for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be made available for new loan awards to the highest ranking project(s) that is ready for loan award at the time funds become available.

B. Financial Planning Process

Efficient Bond Management The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF Fund and shall be used as the state match for federal DWSRF Cap grants.
Interest Rate Determination It is the Board’s intention to adjust interest rates such that the demand will equal the funds available. In order to ensure that this interest rate will be at or below the prevailing market rates at the time a loan is made, this rate will be compared to the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield published by The Bond Market Association/ Bloomberg (Bloomberg Online, http://www.bloomberg.com/markets/rates/index.html).
Investment Investment Procedures for Excess Cash - According to the State Treasurer, the excess cash in the Fund is invested by the State Treasurer in securities prescribed in Section 27-105-33, et. Seq., of the Mississippi Code of 1972 Annotated, as amended. The securities in which state funds may be invested include certificates of deposit with qualified state depositories, repurchase agreements (fully secured by direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations), direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations, and any other open-ended or closed-ended management type investment company or investment trust registered under the provisions of 15 U.S.C. Section 80(a)-1 et. Seq, provided that the portfolio is limited to direct obligations issued by the United States of America, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations and to repurchase agreements fully collateralized by the securities listed above for repurchase agreements.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2017 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2017, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2017 may obtain an additional award(s) or an increase to a previous FFY-2017 award, if no other eligible systems are evident.
Interest Rate All loan terms will be at 1.95% annual interest rate, compounded monthly, with a maximum 20-year repayment period. The interest will not accrue during construction, but will commence at the date of completion of the original construction period.
Administration Fee Revenues to pay for Program administrative costs will be collected through an administration fee of 5% of the initial loan principal. This fee will be collected from the interest portion of loan repayments on all FFY-2015 loans.
FFY-2017 Appropriation Special Provisions The Federal 2017 appropriations bill has not been finalized and the final EPA FFY-2017 Cap Grant allotment amounts and any additional federal requirements are not known. It is anticipated that subsidization requirements will be required for the FFY-2017 Cap Grant; the subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The anticipated amount of subsidization is expected to be a minimum of 20% of the Cap Grant amount. If the FFY-2017 Cap Grant is $8,607,000 the subsidization amount would be $1,721,400 (20%) of the Cap Grant amount. Furthermore, all loans made with all or part FFY-2017 federal appropriation funds are expected to include the Davis-Bacon Act requirements and American Iron and Steel requirements. Appropriate language will be added to all FFY-2017 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement; however, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.
Other Related Issues a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds provided through the FFY-2017 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. To insure that the assistance is dispersed as far as possible, the Board has set a limit ($500,000) which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for FFY-2017, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided:

i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2016, and the DWSIRLF loan is awarded by September 30, 2017. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The FFY-2017 Priority List expires on September 30, 2017. Projects listed in the FFY-2017 Priority List that do not receive funding by this date will not be funded under the FFY-2017 funding cycle and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2017 DWSIRLF projects is shown in Section VIII of this IUP. To facilitate the use of FFY-2017 federally appropriated funds, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. If the FFY-2017 EPA Capitalization Grant amount is $8,607,000, the state plans to use $2,108,680 of the FFY-2017 Federal Capitalization grant to support the non-project-related drinking water programs activities along with an additional $860,700 in state money needed for state program management match. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take any additional set-asides from the FFY-2017 Local Assistance and Other State Programs set-aside, but reserves the right to make revisions to utilize additional funds from this set-aside. The amount of funds used from the FFY-2017 Cap Grant-Local Assistance and Other State Programs assistance set-aside will be $750,000 (8.71%).

A. Administration

Standard Capitalization Grant

The state plans to reserve for use at a later date the 4% administrative set-aside from the FFY-2017 Capitalization Grant ($344,280); the state will use the 4% administrative set-aside amount previously reserved from the FFY-2010 Capitalization Grant ($282,500) by taking an equal amount from the FFY-2017 Capitalization Grant for the administration of the Program in FFY-2017. Costs beyond this set aside amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments. This change will decrease the total set-aside amount for the FFY-2017 Cap grant from $2,127,120 to $2,065,340.

The state will continue to exercise its right to reserve the Administrative amounts from the previous Cap Grants; the remaining balance of the FFY-2011 Cap Grant ($392,080), the FFY-2014 Cap Grant ($366,360), the FFY-2015 Cap Grant ($363,960) and the FFY-2016 Cap Grant ($344,280). These amounts are planned to be taken from future capitalization grants (over the next several years) for administration of the Program. Reserving previous years’ 4% administrative set- aside will ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program. The reserved set-aside amounts are based on the original capitalization grants awarded during those previous fiscal years.

B. Small System Technical Assistance

Standard Capitalization Grant The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY-2017 Cap Grant ($172,140) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; and Hands-on Operator Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix F to this IUP.

C. State Program Management

Standard Capitalization Grant The state intends to use the full 10% set-aside from the FFY-2017 Cap grant ($860,700), as authorized by Section 1452(g)(2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix G to this IUP. The state must provide a dollar-for-dollar match (100% match) for the Cap grant funds used for these activities. The dollar-for-dollar match is in addition to the twenty (20%) percent state match required for the Cap grant.

The state is allowed to offset the 100% match requirement by claiming credit for State FFY-2017 PWSS expenditures that exceed the State’s FFY-2017 PWSS match requirement. The state is further allowed to use state FFY-2017 PWSS expenditures as a “coupon” to offset the 100% match requirement as long as this amount does not exceed the amount that can be claimed from FFY-2017 expenditures. The MSDH Bureau of Public Water Supply has elected to decline the “coupon” since it sees this as providing no additional monetary benefit to the State Program Management Program. A tabulation showing amount and source of funds to satisfy match requirements for the FFY-2017 State Program Management set-aside is furnished as Appendix H to this IUP.

D. Local Assistance and Other State Programs

The state intends to use $750,000 (8.71%) of the 15% set-aside amount which is allowed from the FFY-2017 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure Should any projects on the FFY-2017 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first

be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.

FFY-2017 Green Infrastructure Requirement The FFY-2017 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

Loan Decreases Any funds recovered from loan decreases during the year will be used:

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants On October 10, 2001, EPA issued policy memorandum DWSRF 02-01 to notify regions and states of a change in policy regarding the use of DWSRF monies for providing local match for SPAP grants. This change in EPA policy will allow the state to use non-federal, non-state match DWSIRLF funds to provide loans that can be used as local match for SPAP grants awarded for drinking water projects. These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non- federal, non-state match monies have been obligated or demand for such funds has been met.
Subsidization from FFY-2017 Federal Appropriation EPA is expected to mandate that a minimum 20% of the FFY-2017 Cap grant be provided as additional subsidization to disadvantaged communities. Based on the FFY-2017 grant amount of $8,607,000 the amount of subsidization will be between $1,721,400. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2016 may be awarded to projects eligible for PF in FFY-2017 and FFY-2018.

Disadvantaged Community Program During FFY-2017, the following PF methodology will be used since it is anticipated that the FFY-2017 federal appropriation will continue to require the state to provide additional subsidy for disadvantaged communities.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

MHI’s to be used for calculating PF will be as determined by the MSDH program “Household Income Estimates within Water System Boundaries for each Public Water Supply within the State of Mississippi”. If the “Household Income Estimates within Water System Boundaries for each Public Water Supply within the State of Mississippi” program is not available “The Sourcebook of Zip Code Demographics”, Twenty-third Edition, will be used, and where an affected community is included in more than one zip code area, an average will be used for the community’s MHI.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards

Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi to the MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5.

The MHI to be used in the calculations will be those as determined by the MSDH program “Household Income Estimates within Water System Boundaries for each Public Water Supply within the State of Mississippi”. If the “Household Income Estimates within Water System Boundaries for each Public Water Supply within the State of Mississippi” program is not available; the MHI to be used in the calculations will be those displayed in the publication “The Sourcebook of Zip Code Demographics”, Twenty-third Edition or from the publisher’s website at

http://www.esribis.com/reports/ziplookup.html. Where the affected community is included in more than one zip code area, an average will be used for the community’s median household income

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2016, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

This deadline also applies to all projects competing for released funds during FFY-2017 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2017 IUP.

By May 1, 2017, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2017 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2017 IUP.
By August 1, 2017, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2017 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2017 IUP.

VII. FFY-2017 Priority List FINAL Fiscal Year - 2017 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Jackson, City of Treatment & Dist. Improvements 39201 37222 174382 $0 $0 $13,000,000 $13,000,000 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 3533 10000 $0 $0 $702,000 $13,702,000 Yazoo City, City of New Well/Storage Tank/Distrib. Lines and AMR 39194 0 16400 $0 $0 $3,854,669 $17,556,669 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Homestead Water Association Consolidate System/Rehab 2 Tanks/Booster 39648 1439 1850 $0 $0 $595,100 $18,151,769 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Horn Lake, City of Water Sys. Improvements/Install Larger Water 38637 1256 16123 $0 $0 $719,682 $18,871,451 Troy Water Association Const. of Approx. 29,300 6" & Sm. LF Distrib. 38863 80 1566 $0 $0 $610,300 $19,481,751 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Bear Creek Water Assn. 2 New Wells 39046 1829 40000 $0 $0 $4,100,000 $23,581,751 Jackson County Utility Authority Distribution System Improvements 39567 1732 43680 $0 $0 $6,250,000 $29,831,751 Lily Rose Water Assn Install Master Meters/Well/Rehab Tank/Ext. 4" 39474 1652 3504 $0 $0 $891,658 $30,723,409 S E Greene Water Authority Rehab Treatment Facility/Water Line Extension 39452 895 1572 $0 $0 $670,519 $31,393,928 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ McComb, City of 1000 GPM Well/Generator/Fence/12" Main 39648 6589 12790 $0 $0 $1,236,000 $32,629,928 Harland Creek Water Assn New Storage Tank/Water Mains/SCADA System 39095 531 1338 $0 $0 $1,259,600 $33,889,528 Burnsville, Town of Surface Water Supply Facilities/meters/Booster St 38833 172 1034 $0 $0 $2,871,179 $36,760,707 Wednesday, November 30, 2016 Page 1 of 2

Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Pearl River Central Water Assn. Install/reconnect 32,800 LF PVC Water Main 39426 2647 12800 $0 $0 $1,464,705 $38,225,412 Picayune, City of Installation of New Water Mains 39466 1719 12000 $0 $0 $3,500,000 $41,725,412 New Zion Utilities, Inc. Install Approx. 18,700 LF PVC Main/Well Prot. 39577 1394 2600 $0 $0 $554,475 $42,279,887 -------------------------------------------------------------------------- Funding Line $43,433,167 --------------------------------------------------------------------------------- --------- Wiggins, City of 1000 GPM Well/3,000 ft.8" Main/Seal Well 39577 1055 4747 $0 $0 $1,610,668 $43,890,555 Multi-Mart Waterworks Assn. Replace Approx. 16,500 LF Water Main with 39451 679 2652 $0 $0 $862,845 $44,753,400 Sumner, Town of Rehab Original Distribution System 38957 378 316 $0 $0 $719,274 $45,472,674 Meridian, City of Filter Underdrain & Media Replacement 39301 0 40000 $0 $0 $4,620,000 $50,092,674 Category XIII: Other Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Central Yazoo Water Association Upgrade Meters to Auto Read Meters 39194 2717 8085 $0 $0 $1,121,884 $51,214,558

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2017 based on the funds authorized and provided by the 2017 Legislature. The funding available in FFY-2017 should equal $43,433,167. ** Currently, the requirements of additional subsidization are unknown. Once the final federal appropriation with related requirements is made, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. CPF – Cumulative Principal Forgiveness CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency.

Wednesday, November 30, 2016 Page 2 of 2

FINAL Fiscal Year - 2018 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2016, deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.) Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $586,000 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $1,172,000 Fayette, City of Paint/Rehab Storage. Tanks/New Well/Rehabs/2 39069 483 1900 $0 $0 $2,515,600 $3,687,600 Pearlington Water & Sewer District New Back-up Water Well 39572 451 1325 $0 $0 $1,515,000 $5,202,600 Friars Point, Town of Distribution System Improvements 38631 357 1200 $0 $0 $1,473,600 $6,676,200 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Collins, City of Distribution System Improvements 39428 1875 4000 $0 $0 $651,325 $7,327,525 Bay Springs, City of Distribution System Improvements 39422 1662 2100 $0 $0 $839,344 $8,166,869 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Aberdeen, City of 400 GPM Well/100,000 Gal. Elev. Tank/Rehab 39730 2316 6415 $370,487 $1,481,949 $9,648,818 Cedar Grove-Harmony Water Assn Water Distribution Improvements 39429 672 1500 $0 $0 $1,008,000 $10,656,818 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Installation of Water lines 38606 31582 7600 $37,500 $125,000 $10,781,818 Batesville, City of Installation of Water Lines 38606 26319 7600 $37,500 $150,000 $10,931,818 Batesville, City of Rehab/Replacement of Existing Facilities 38606 14356 7600 $68,750 $275,000 $11,206,818 Batesville, City of Rehab Existing Facilities 38606 11279 7600 $87,500 $350,000 $11,556,818 Batesville, City of 500,000 Gallon Elevated Tank 38606 5264 7600 $187,500 $750,000 $12,306,818 Thursday, January 12, 2017 Page 1 of 2

Short Coleman Park Water Assn. Repaint 2 Elevated Tanks/250,000/500,000 GAL 38852 3183 5004 $0 $0 $561,915 $12,868,733 McLain, Town of New 8" Val on Existing Mains/Meters/1000 Ft. 39456 1466 441 $0 $0 $142,111 $13,010,844 Southeast Rankin Water Assn., Inc. New Water Well/Water Distribution System 39151 1393 0 $0 $0 $1,154,000 $14,164,844 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Rehab Existing Infrastructure 38606 7896 7600 $125,000 $500,000 $14,664,844 Batesville, City of New 750 GPM Well 38606 7896 7600 $125,000 $500,000 $15,164,844 Madison, City of Construction of 1Mil Gallon Storage Tank 39110 1664 13986 $0 $0 $2,800,895 $17,965,739 Kokomo-Shiloh Water Assn. New Well/Water Treatment Plant/Sys. 39643 690 2775 $0 $0 $1,696,300 $19,662,039 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Rehab Existing Facilities 38606 9629 7600 $102,500 $410,000 $20,072,039 Mount Olive, Town of Replacement of Water Lines 39119 2348 1000 $80,962 $231,320 $20,303,359 Renshaw Water Assn., Inc. New Generator 39194 1897 1000 $0 $0 $34,415 $20,337,774 Alcorn Co. Water Association 300,000 Gal Storage Tank/upgrade Facilities 38834 1187 6500 $190,965 $1,273,101 $21,610,875 Alcorn Co. Water Association Renovate Elevated tanks/Replace Water Lines 38834 1155 6500 $130,938 $872,920 $22,483,795 Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treatment 39114 531 2504 $138,750 $2,634,100 $25,117,895

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2017 based on the funds authorized and provided by the 2017 Legislature. The funding available in FFY-2017 should equal $43,433,167. **Currently, the requirements of additional subsidization are unknown. Once it has been determined by the final federal appropriation, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. DW – Drinking Water System Improvement Revolving Loan Fund – includes repayments, interest and FFY-2016 Capitalization Grants.

VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2017 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2017 IUP and funding projects shown on the FFY-2017 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2017.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2017 DWSRF Work Plan.

(Blank)

Appendices

Appendix A - Part 1A FFY-2017 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2016 FFY-2017 National Title I DWSRF Appropriation (Estimate) (Using FFY-2016 Allotment)

$855,381,000 * Mississippi's Allotment [section 1452(m)] (Estimate) (Using FFY-2016 Amount)

$8,607,000 FFY-2017 State Match Required (20% of Mississippi's Allotment) (Estimated) (Using FFY-2016 Amount) + $1,721,400 Total FFY-2017 Federal Allotment and Required State match (Estimate):

$10,328,400 FFY-2017 Funding (Federal and State)

**2016 Legislated State match (Direct Appropriation from Legislature-$1,220,000 Reduced to $1,200,166) + $1,200,166 **2015 Emergency Fund remainder (The reminder of the 2016 Emergency Fund transfer not used for State match in FFY2016 = $94,340.20) + $94,340 **2016-2017 Emergency Fund transfer (Amount needed to supplement the State Match for the FFY2016 Cap Grant $426,893.80) + $426,894 + FFY-2016 Cap Grant (State Match = $1,721,400) + $8,607,000 Total 2016 Federal and State Funds available in FFY-2017 for Loan Obligations & Set-asides:

$10,328,400 Note: No FFY-2017 Cap Grant Funds or Set-asides are shown in this report in order to make this projection more realistic. State match funds for Cap Grant funds normally will not be available until QTR4 of FFY-2017; the first portion of the FFY-2017 Cap Grant funds will not usually be received until QTR1 of FFY-2018.

FFY-2016 Cap Grant Set-Asides

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2008) + $325,840 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $172,140 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~8.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $860,700 Total FFY-2016 Cap Grant Set-Asides:

$2,108,680

Total Federal and State Funds available in FFY-2017: + $10,328,400 Less FFY-2016 Set-asides: - ($2,108,680) Total Federal & State Funds available for Loan Obligation in FFY-2017:

$8,219,720 FFY-2017 DWSRF Funds (Anticipated)

Total Federal & State Funds available for Loan Obligation in FFY-2017 + $8,219,720 Unobligated Funds Carried Over from FFY-2016 + $23,477,852 Loan Repayments To Be Deposited (Anticipated) 10/1/16 - 9/30/17 + $12,011,246 Interest on Fund To Be Deposited (Anticipated) 10/1/16 - 9/30/17 + $724,349 FFY-2017 Loan Increase Reserve ($1.0m) - ($1,000,000) Total Funds Available for Loan Awards in FFY-2017 (Anticipated)

$43,433,167

Appendix A - Part 2A FFY-2016 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2016 FFY-2016 National Title I DWSRF Appropriation (Actual Amount)

$855,381,000 * Mississippi's Allotment [section 1452(m)] (FFY-2016 Grant – Actual Amount)

$8,607,000 FFY-2016 State Match Required (20% of Mississippi's Allotment) (Actual) + $1,721,400 Total FFY-2015 Federal Allotment and Required State Match (Actual):

$10,328,400 2016 Funding (Federal and State) (FFY-2015 Cap Grant Funds were used in 2016)

**2015 Legislated State Match (Direct Appropriation from Legislature-$1,200,000 reduced to $1,176,820.00) + $1,176,820 **2014 Emergency Fund remaining (The remainder of the 2014 Emergency Fund transfer not used for State Match in FFY2014) + $2,709 **2015 Emergency Funds transfer (Amount originally estimated to be needed to supplement the State match, transferred from the Emergency Fund for the FFY2015 Cap Grant) + $734,611 **2015 Emergency Funds transfer (Only $1,819,800 is needed as match for the revised FFY2015 EPA Cap Grant ($9,099,000). The available State match is reduced to show only the amount needed for the FFY2015 State match; $94,340 will remain as future State match funds.) + ($94,340) FFY-2015 Cap Grant (State Match = $1,819,800) (EPA reduced the amount of the FFY-2015 Federal Cap Grant $9,159,000 to $9,099,000 at award to comply with Federal debt reduction requirements so a State match of only $1,819,800 was needed.) + $9,099,000 Total FFY-2015 Federal and State Funds available in FFY-2016 for Loan Obligations & Set-asides:

$10,918,800 FFY-2015 Cap Grant Set-Asides

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2003) + $320,164 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $181,980 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~5.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $909,900 Total FFY-2015 Cap Grant Set-Asides:

$2,162,044 Total Federal & State Funds Available in FFY-2016 for Loan Obligation & Set-asides

$10,918,800 Less FFY-2015 Set-asides - ($2,162,044) Total Federal & State Funds Available in FFY-2016 for Loan Obligation

$8,756,756 FFY-2016 DWSRF Funds (Actual)

Federal & State Funds available in FFY-2016 for Loan Obligation + $8,756,756 Unobligated Funds Carried Over from FFY-2015 + $21,573,730 Loan Repayments Deposited to the Fund (Actual) 10/1/15 - 9//30/16 + $13,103,177 Interest Deposited to the Fund (Actual) 10/1/15 - 9//30/16 + $790,199 FFY-2016 Loan Decreases (Actual) 10/1/15 - 9//30/16 + $3,634,673 FFY-2016 Loan Increases (Actual) 10/1/15 - 9//30/16 - ($1,725,513) Funds Available for Loan Awards in FFY-2016

$49,584,048 Loan Awards made during FFY-2016 (14 Initial Loans for $26,106,196)

($26,106,196) FFY-2016 Carryover Funds to FFY-2017

$23,477,852

Appendix A - Reference Notes:

Part 9 Part 9: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 9 Part 9: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 9: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FINAL FFY-2017 INTENDED USE PLAN AMENDMENT 1

Adopted by the Board on September 22, 2017

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

3 - FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 9 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2017 INTENDED USE PLAN AMENDMENT 1 TABLE OF CONTENTS

I. INTRODUCTION

State of Mississippi’s Drinking Water State Revolving Fund
Program Overview
Public Input, Review, and Comment Procedures

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSEMS

IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF)

PROGRAM

Basic Goals
Long-Term DWSIRLF Goals
Short-Term DWSIRLF Goals

III. STRUCTURE OF MISSISSIPPI DWSIRLF 9 A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:
Set-aside Accounts:

DWSIRLF State Match Funds
Drinking Water Systems Emergency Loan Fund (DWSELF)

IV. FINANCIAL STATUS OF THE DWSIRLF 10 A. Source and Use of Fund

Federal Allotment
State Match Requirements
Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management
Interest Rate Determination
Investment

C. Financial Terms of Loans

Funding Limit
Interest Rate
Administration Fee
FFY-2017 Appropriation Special Provisions
Other Related Issues

4 -
5 -
1. SET-ASIDE ACTIVITIES 17
2. Administration
3. Small System Technical Assistance
4. State Program Management
5. Local Assistance and Other State Programs

VI. PRIORITY SYSTEM 19 A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure
FFY-2017 Green Infrastructure Requirement
Loan Decreases
Match for Special Appropriations Project (SPAP) Grants
Subsidization from FFY-2017 Federal Appropriation

Priority System Categories
Priority Ranking Criteria
Priority System Deadlines

VII. FFY-2017 PRIORITY LIST 30 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 35

APPENDICES 36 A. FFY-2017 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSRF) Program 37 FFY-2016 End of Year Funds Report-Mississippi DWSIRLF Program -- October 1, 2016 38 B. PROJECTED SCHEDULE OF OUTLAYS 41 C. PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE 42 D. PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT 43 E. MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET- ASIDE WORK PLAN 44 F. MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN 49 G. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN 54 H. MISSISSIPPI STATE PROGRAM SET-ASIDE MATCH REQUIREMENTS – MISSISSIPPI 1:1 REQUIREMENT FOR FFY-2017 STATE PROGRAM MANGEMENT SET-ASIDE 56 I. COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS 57 J. DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM 62 K. CERTIFICATIONS 63

6 I. Introduction

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds; however, in 2014 the State legislature began providing the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2017 to EPA, other state agencies, the state’s public water supplies, and the general public.

7 B. Program Overview

The amount of the FFY-2017 Cap Grant from EPA for Mississippi is $8,534,000. The FFY-2017 DWSRF Cap grant application will request the complete amount; these funds must be used in the time period of July, 2017, through June, 2021. The FFY-2017 IUP will show in detail the goals (basic, long-term and short-term), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518.

C. Public Input, Review, and Comment Procedures

To ensure that the public has an ample opportunity to review and comment upon Amendment 1 to the IUP, the Department and the Board follow the requirements of the “Mississippi Administrative Procedures Law” prior to final submission of Amendment 1 to EPA. A public notice period of at least twenty five (25) days allows for review and comment before an oral proceeding. A second filing with the Secretary of State’s Office occurs before Amendment 1 becomes law 30 days after the final posting.

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, that an oral proceeding would be held at 9:00 a.m. on Thursday, September 21, 2017, to receive written and oral comments on this Amendment. A transcript of the oral proceeding, recording the comments and recommended solutions, will be submitted to EPA along with the Final Amendment 1 to the IUP. Those desiring to receive a copy of the oral proceeding transcript may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office, and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

A. Basic Goals

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.

9 3. Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY- 2012 the Program has been using the Local Assistance and Other State Programs set-asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.

Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.

10 5. Meet special funding goals: The FFY-2017 federal appropriation may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.

Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects: Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.
Set-aside Accounts: The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems through the current contractual services with Communities Unlimited, Inc.; Mississippi State University – Extension Service (MSU-ES) and the Mississippi Rural Water Association (MsRWA). c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program.

11 d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program through current contractual services with the Mississippi Rural Water Association (MsRWA) and a well decommissioning contractor.

B. DWSIRLF State Match Funds

As required by the SDWA, the State of Mississippi must match the Cap grant with state funds equaling 20% of the federal allotment. Mississippi historically has received the required 20% state match from the sale of General Obligation bonds authorized by the State Legislature and sold by the Mississippi State Bond Commission; however, since the 2014 legislative secession, the State Legislature has authorized a direct appropriation for the state match. While state match monies are maintained separately from the Fund for accounting purposes, they are still considered to be under the “umbrella” protection of the DWSRF Fund.

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The amount of the FFY-2017 Cap Grant from EPA for Mississippi is $8,534,000. Funding amounts and their use are outlined in Appendix A.

The FFY-2017 EPA Capitalization Grant allotment for Mississippi requires a 20% state match of $1,706,800; this provides an amount of $10,240,800 for both loans and set-aside activities.

With $2,174,080 being utilized for set-aside activities, $8,066,720 will be used for loans to Mississippi public water supplies; additionally, unobligated funds from the previous year, anticipated loan repayments and interest earnings (all of which are not classified as state match) will also be available as additional funding sources.

The FFY-2017 “Set-aside” used for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment

Since the FFY-2017 Capitalization Grant for Mississippi is $8,534,000 the state match requirement to federal grant funds (cash draw ratio) will be 21.16% state match funds to 78.84% federal grant funds; this requirement will be stated in the grant application.

State Match Requirements Until 2014 the state 20% match was provided through the sale of General Obligation bonds authorized by the State Legislature. The Legislature passed House Bill No. 209 to establish a Local Governments and Rural Water Systems Improvements Revolving Loan Program and authorized the sale of $15,000,000 in General Obligation Bonds which were deposited into the Fund. As stated in the law, one of the purposes for these funds is that, “All or any portion of the monies in the fund may be used to match any federal funds that are available for the same or related purposes for which funds are used and expended under this act.” Initially, $10,000,000 of these General Obligation bonds were sold in May of 1997 and the proceeds were deposited into the Fund on May 29, 1997. Later, the remaining $5,000,000 of the original bonding authority was sold and deposited into the Fund on October 5, 2000.  $3,294,840 was used as match for the FFY-1997 Cap grant,  $1,654,340 was used as match for the FFY-1998 Cap grant,  $1,733,900 was used as match for the FFY-1999 Cap grant,  $1,802,020 was used as match for the FFY-2000 Cap grant,  $1,809,480 was used as match for the FFY-2001 Cap grant,  $1,610,500 was used as match for the FFY-2002 Cap grant,  $1,600,820 was used as match for the FFY-2003 Cap grant,  $1,494,100 was used as match for $7,470,500 of the FFY-2004 Cap grant. During the Spring 2003 Legislative Session, the Legislature provided the Board with an additional $130,000 in bonding authority. Additionally, during the Spring 2004 Legislative Session, the Legislature authorized $1,613,000 in general obligation bonds. A total of $1,740,000 was deposited in the DWSIRL Fund during the 1 st Quarter of FFY-2005.  $129,776 was used as match for $648,880 of the FFY-2004 Cap grant.  $36,744 was used as match for $183,720 which was the remaining FFY- 2004 Cap grant.  $1,573,480 was used as match for $7,867,400 of the FFY-2005 Cap grant. During the 2006 Regular Legislative Session, the Legislature authorized the sale of general obligation bonds in the amount of $4,003,000, which were sold and deposited in the SRF Fund during the 1 st Quarter of FFY-2007. After paying the issuance cost of $2,128.26:  $83,620 was used to match the remaining $418,100 of the FFY-2005 Cap grant.  $1,645,860 was used to match the FFY-2006 Cap grant ($8,229,300).  $1,645,800 was used to match the FFY-2007 Cap grant ($8,229,000).

13  $625,591 was used to match a portion ($3,127,955) of the FFY-2008 Cap grant. During the 2008 Regular Legislative Session, the State Legislature authorized an additional $4,000,000 in general obligation bonds which were sold and deposited into the Fund during the 1 st Quarter of FFY-2009. After paying issuance costs of $2,256.05:  $1,003,609 was used to match the remaining FFY-2008 Cap grant.  $1,629,200 was used to match the FFY-2009 Cap grant ($8,146,000).  $1,364,935 was used to match a portion of the FFY-2010 Cap grant or $6,824,675. During the 2010 Regular Legislative Session, the State Legislature authorized an additional $1,400,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2010. After paying issuance cost of $9,087:  $1,390,913 was used to match a portion ($6,954,566) of the FFY-2010 Cap grant. During the 2011 Regular Legislative Session, the State Legislature authorized an additional $2,700,000 in general obligation bonds which were sold and deposited into the Fund during the 4 th Quarter of FFY-2011. After paying issuance and discount costs of $13,105:  $69,152 was used to match the remaining FFY-2010 Cap grant ($345,760).  $1,960,400 was used to match the FFY-2011 Cap grant (9,802,000).  $1,834 was used to match $9,166 which was transferred to DWSIRLF from the remaining balance of the MS Operator Certification Grant for making additional loans.  The remaining $655,509 was used to match $3,277,545 of the FFY-2012 capitalization grant leaving a balance of $6,063,455 to be matched. During the 2013 Regular Legislative Session, the State Legislature authorized an additional $1,000,000 in general obligation bonds. These bonds were sold and the funds were deposited into the DWSIRLF in December 2013. No issuance or discount costs were charged, therefore, the full $1,000,000 bond amount is available to match a portion ($1,902,240) of the FFY-2013 Cap grant and match a portion of ($3,097,760) of the remaining FFY-2012 Cap grant. The $1,000,000 state bond funds will be used as follows.  $380,448 will match the FFY-2013 Cap Grant Set-aside amount ($1,902,240).  $619,552 will match $3,097,760 of the remaining FFY-2012 Capitalization Grant.  $593,139 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will be used to complete the match of the remaining FFY- 2012 Capitalization Grant ($2,965,695). (That portion of the DWSELF which exceeds the $5,000,000 initially deposited in the fund may be used to match capitalization grant funds).  $26,861 remaining from the $620,000 used from the DWSELF Fund will be used to match a portion ($134,305) of the FFY-2013 Cap Grant.

14 During the 2014 Regular Legislative Session, the State Legislature (House Bill No. 1495) authorized $1,000,000 in direct funding for the DWSRF program and the use of $2,000,000 in an existing MSDH account for the DWSRF program. Additionally, $180,000 was used from the Drinking Water Systems Emergency Loan Fund (DWSELF). The total of all the state match funds matched all outstanding EPA Grant funds; the remaining portion of the FFY-2013 Cap Grant ($6,727,455) and the total FFY-2014 Cap Grant ($9,159,000). The $3,180,000 of state funds was used as follows.  $1,345,491 matched the remainder of the FFY-2013 Cap Grant amount ($6,727,455).  $1,831,800 matched the FFY-2014 Capitalization Grant ($9,159,000).  $2,709 from the Drinking Water Systems Emergency Loan Fund (DWSELF) will remain to be used as match for future Capitalization Grants.

15 program. The FFY-2016 EPA Cap Grant amount is $8,607,000; the required State match amount is $1,721,400. In September 2016 due to a continuing shortfall in State revenue the Governor mandated that the funds authorized by the 2016 Legislature be reduced by $19,834 to $1,200,166. In January 2017 due to the continuing shortfall in State revenue the Governor mandated a second reduction in the amount of $17,746; this reduced the available State funds to $1,182,420. In February 2017 due to the continuing shortfall in State revenue the Governor mandated a third reduction in the amount of $17,727; this reduced the available State funds to $1,164,693. In March 2017 due to the continuing shortfall in State revenue the Governor mandated a fourth reduction in the amount of $5,569; this reduced the available State funds to $1,159,124. With $94,340.20 remaining from the match funds for the FFY-2015 EPA Cap Grant, an additional $467,935.80 will be needed as State match for the FFY-2016 Capitalization Grant. In January 2017 the Board authorized the use of an additional $500,000 from DWSELF as the State match; an amount of $32,064.20 will remain to be used as match for the FFY-2017 Capitalization Grant. In 2017 the State Legislature did not provide a direct appropriation for the 20% State match ($1,706,800) for the FFY-2017 EPA Capitalization Grant ($8,534,000); therefore, the Board will be requested to authorized the use of additional funds from DWSELF and/or other sources as the State match. With the $32,064.20 remaining from 2017, an additional $1,674,735.80 will be required as match for the FFY-2017 Capitalization Grant.

Loan Increase Reserve Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the amount indicated in Appendix A for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be made available for new loan awards to the highest ranking project(s) that is ready for loan award at the time funds become available. B. Financial Planning Process In accordance with the Board's desire to maintain a financially sound DWSIRLF loan Fund in perpetuity, while at the same time meeting a substantial portion of the drinking water needs in the state within a reasonable period of time, the following financial decisions were made regarding the Fund:
Efficient Bond Management The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF Fund and shall be used as the state match for federal DWSRF Cap grants.

16 2. Interest Rate Determination It is the Board’s intention to adjust interest rates such that the demand will equal the funds available. In order to ensure that this interest rate will be at or below the prevailing market rates at the time a loan is made, this rate will be compared to the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield published by The Bond Market Association/ Bloomberg (Bloomberg Online, http://www.bloomberg.com/markets/rates/index.html). 3. Investment Investment Procedures for Excess Cash - According to the State Treasurer, the excess cash in the Fund is invested by the State Treasurer in securities prescribed in Section 27-105-33, et. Seq., of the Mississippi Code of 1972 Annotated, as amended. The securities in which state funds may be invested include certificates of deposit with qualified state depositories, repurchase agreements (fully secured by direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations), direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations, and any other open-ended or closed-ended management type investment company or investment trust registered under the provisions of 15 U.S.C. Section 80(a)-1 et. Seq, provided that the portfolio is limited to direct obligations issued by the United States of America, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations and to repurchase agreements fully collateralized by the securities listed above for repurchase agreements.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2017 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2017, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2017 may obtain an additional award(s) or an increase to a previous FFY-2017 award, if no other eligible systems are evident.
Interest Rate All loan terms will be at 1.95% annual interest rate, compounded monthly, with a maximum 20-year repayment period. The interest will not accrue during

17 construction, but will commence at the date of completion of the original construction period.

Administration Fee Revenues to pay for Program administrative costs will be collected through an administration fee of 5% of the initial loan principal. This fee will be collected from the interest portion of loan repayments on all FFY-2015 loans.
FFY-2017 Appropriation Special Provisions The FFY-2017 Cap Grant agreement will require loan subsidization in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The amount of subsidization will be a minimum of 20% of the Cap Grant amount. The FFY-2017 Cap Grant is $8,534,000; therefore, the subsidization amount will be $1,706,800 (20%) of the Cap Grant amount. Furthermore, all loans made with all or part FFY-2017 federal appropriation funds must include the Davis-Bacon Act requirements, the American Iron and Steel requirements, and signage requirements. Appropriate language will be added to all FFY-2017 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement; however, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.
Other Related Issues a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds provided through the FFY-2017 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. To insure that the assistance is dispersed as far as possible, the Board has set a limit ($500,000) which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for FFY-2017, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2016, and the DWSIRLF loan is awarded by September 30, 2017. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The state plans to use $2,174,080 of the FFY-2017 Federal Capitalization grant to support the non-project-related drinking water programs activities. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take any additional set-asides from the FFY-2017 Local Assistance and Other State Programs set-aside, but reserves the right to make revisions to utilize additional funds from this set-aside. The amount of funds used from the FFY-2017 Cap Grant-Local Assistance and Other State Programs assistance set-aside will be $750,000 (8.79%).

19 A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the "Administrative" amount used may be the greater of $400,000 or 4% of the Cap Grant amount. The State plans to use $400,000 for "Administrative" purposes since it is greater than 4% of the FFY2017 Cap Grant. Costs beyond this amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments. This change will increase the total set-aside amount taken from the FFY-2017.

The state will continue to exercise its right to reserve the Administrative amounts from previous Cap Grants; the FFY-2008 Capitalization Grant ($325,840), the remaining balance of the FFY-2010 Cap Grant ($282,500), the FFY-2011 Cap Grant ($392,080), the FFY-2014 Cap Grant ($366,360), the FFY-2015 Cap Grant ($363,960) and the FFY-2016 Cap Grant ($344,280). These amounts may be taken from future capitalization grants for administration of the Program if needed. Reserving previous years’ 4% administrative set-aside will ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program. The reserved set-aside amounts are based on the original capitalization grants awarded during those previous fiscal years.

B. Small System Technical Assistance

Standard Capitalization Grant The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY-2017 Cap Grant ($170,680) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; and Hands-on Operator Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix F to this IUP.

C. State Program Management

Standard Capitalization Grant The state intends to use the full 10% set-aside from the FFY-2017 Cap grant ($853,400), as authorized by Section 1452(g)(2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix G to this IUP.

20 The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) removed the requirement for the State 1:1 match for the 10% State Program Management set-aside.

D. Local Assistance and Other State Programs

VI. Priority System

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure Should any projects on the FFY-2017 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are

21 awarded. This same process will continue as each deadline passes and released funds become available.

FFY-2017 Green Infrastructure Requirement The FFY-2017 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

22 3. Loan Decreases Any funds recovered from loan decreases during the year will be used:

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants On October 10, 2001, EPA issued policy memorandum DWSRF 02-01 to notify regions and states of a change in policy regarding the use of DWSRF monies for providing local match for SPAP grants. This change in EPA policy will allow the state to use non-federal, non-state match DWSIRLF funds to provide loans that can be used as local match for SPAP grants awarded for drinking water projects. These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non- federal, non-state match monies have been obligated or demand for such funds has been met.
Subsidization from FFY-2017 Federal Appropriation

EPA has mandated that a minimum of 20% of the FFY-2017 Cap grant be provided as additional subsidization to disadvantaged communities. Based on the FFY-2017 grant amount of $8,534,000 the amount of subsidization will be between $1,706,800. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2017 may be awarded to projects eligible for PF in FFY-2018 and FFY-2019.

23 Disadvantaged Community Program During FFY-2017, the following PF methodology will be used since it is anticipated that the FFY-2017 federal appropriation will continue to require the state to provide additional subsidy for disadvantaged communities.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

24 In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

25 4. Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.

26 8. Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.

Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

27 encourage participation in the Drinking Water Needs Survey. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5

28 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey

29 Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2016, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

30 planning portion of the priority list. If the change is made after adoption of the IUP, funds reserved for this project may be released and made available to other projects.

This deadline also applies to all projects competing for released funds during FFY-2017 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2017 IUP.

By May 1, 2017, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2017 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2017 IUP.
By August 1, 2017, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2017 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2017 IUP.

31 VII. FFY-2017 Priority List FINAL Fiscal Year - 2017 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Jackson, City of Treatment & Dist. Improvements 39201 37222 174382 $0 $0 $13,000,000 $13,000,000 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 3533 10000 $0 $0 $702,000 $13,702,000 Yazoo City, City of New Well/Storage Tank/Distrib. Lines and AMR 39194 0 16400 $0 $0 $3,854,669 $17,556,669 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Homestead Water Association Consolidate System/Rehab 2 Tanks/Booster 39648 1439 1850 $0 $0 $595,100 $18,151,769 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Horn Lake, City of Water Sys. Improvements/Install Larger Water 38637 1256 16123 $0 $0 $719,682 $18,871,451 Troy Water Association Const. of Approx. 29,300 6" & Sm. LF Distrib. 38863 80 1566 $0 $0 $610,300 $19,481,751 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Bear Creek Water Assn. 2 New Wells 39046 1829 40000 $0 $0 $4,100,000 $23,581,751 Jackson County Utility Authority Distribution System Improvements 39567 1732 43680 $0 $0 $6,250,000 $29,831,751 Lily Rose Water Assn Install Master Meters/Well/Rehab Tank/Ext. 4" 39474 1652 3504 $0 $0 $891,658 $30,723,409 S E Greene Water Authority Rehab Treatment Facility/Water Line Extension 39452 895 1572 $0 $0 $670,519 $31,393,928 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ McComb, City of 1000 GPM Well/Generator/Fence/12" Main 39648 6589 12790 $0 $0 $1,236,000 $32,629,928 Harland Creek Water Assn New Storage Tank/Water Mains/SCADA System 39095 531 1338 $0 $0 $1,259,600 $33,889,528 Burnsville, Town of Surface Water Supply Facilities/meters/Booster St 38833 172 1034 $0 $0 $2,871,179 $36,760,707 Wednesday, November 30, 2016 Page 1 of 2

32 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Pearl River Central Water Assn. Install/reconnect 32,800 LF PVC Water Main 39426 2647 12800 $0 $0 $1,464,705 $38,225,412 Picayune, City of Installation of New Water Mains 39466 1719 12000 $0 $0 $3,500,000 $41,725,412 New Zion Utilities, Inc. Install Approx. 18,700 LF PVC Main/Well Prot. 39577 1394 2600 $0 $0 $554,475 $42,279,887 Wiggins, City of 1000 GPM Well/3,000 ft.8" Main/Seal Well 39577 1055 4747 $0 $0 $1,610,668 $43,890,555 Multi-Mart Waterworks Assn. Replace Approx. 16,500 LF Water Main with 39451 679 2652 $0 $0 $862,845 $44,753,400 Sumner, Town of Rehab Original Distribution System 38957 378 316 $0 $0 $719,274 $45,472,674 -------------------------------------------------------------------------- Funding Line $50,085,719 --------------------------------------------------------------------------------- --------- Meridian, City of Filter Underdrain & Media Replacement 39301 0 40000 $0 $0 $4,620,000 $50,092,674 Category XIII: Other Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Central Yazoo Water Association Upgrade Meters to Auto Read Meters 39194 2717 8085 $0 $0 $1,121,884 $51,214,558

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2017 based on the funds authorized and provided by the 2017 Legislature. The funding available in FFY-2017 should equal $50,085,719. ** Currently, the requirements of additional subsidization are unknown. Once the final federal appropriation with related requirements is made, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. CPF – Cumulative Principal Forgiveness CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency.

Wednesday, November 30, 2016 Page 2 of 2

33 FINAL Fiscal Year - 2018 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2016, deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.) Category II: Previous Year Certified Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ North Pike Water Association New Well & 200,000 Gal. Tank/Rehab Existing 39666 805 5016 $0 $0 $2,271,200 $2,271,200 Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $2,857,200 Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $0 $0 $586,000 $3,443,200 Fayette, City of Paint/Rehab Strg. Tanks/New Well/Rehabs/2 39069 483 1900 $0 $0 $2,515,600 $5,958,800 Pearlington Water & Sewer District New Back-up Water Well 39572 451 1325 $0 $0 $1,515,000 $7,473,800 Friars Point, Town of Distribution System Improvements 38631 357 1200 $0 $0 $1,473,600 $8,947,400 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Natchez, City of Water System Improvements 39121 4632 15792 $0 $0 $1,765,000 $10,712,400 Collins, City of Distribution System Improvements 39428 1875 4000 $0 $0 $651,325 $11,363,725 Bay Springs, City of Distribution System Improvements 39422 1662 2100 $0 $0 $839,344 $12,203,069 West Jackson County UD Water System Improvement 39564 1400 25000 $0 $0 $5,000,000 $17,203,069 Walnut, Town of Install Auto Read Meters/New Water Lines 38683 1333 1391 $0 $0 $470,189 $17,673,258 Bude, Town of Replace Approx.13,000 LF of Undersized Water 39630 338 1067 $0 $0 $398,850 $18,072,108 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Aberdeen, City of 400 GPM Well/100,000 Gal. Elev.Tank/Rehab 39730 2316 6415 $370,487 $1,481,949 $19,554,057 Cedar Grove-Harmony Water Assn Water Distribution Improvements 39429 672 1500 $0 $0 $1,008,000 $20,562,057 Thursday, September 21, 2017 Page 1 of 3

34 Category VI: Source Water Protection Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Oceans Springs, City of Replace Water Mains/tie-in with WJCUD 39566 196 21000 $0 $0 $8,690,000 $29,252,057 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Installation of Water lines 38606 31582 7600 $37,500 $125,000 $29,377,057 Batesville, City of Installation of Water Lines 38606 26319 7600 $37,500 $150,000 $29,527,057 Batesville, City of Rehab/Replacement of Existing Facilities 38606 14356 7600 $68,750 $275,000 $29,802,057 Batesville, City of Rehab Existing Facilities 38606 11279 7600 $87,500 $350,000 $30,152,057 Batesville, City of 500,000 Gallon Elevated Tank 38606 5264 7600 $187,500 $750,000 $30,902,057 Short Coleman Park Water Assn. Repaint 2 Elevated Tanks/250,000/500,000 GAL 38852 3183 5004 $0 $0 $561,915 $31,463,972 Fannin Water Association 500 GPM Well/209 kgal Glass Lined Tank 39047 1823 8584 $0 $0 $1,188,750 $32,652,722 McLain, Town of New 8" Val on Existing Mains/Meters/1000 Ft. 39456 1466 441 $0 $0 $142,111 $32,794,833 Southeast Rankin Water Assn., Inc. New Water Well/Water Distribution System 39151 1393 0 $0 $0 $1,154,000 $33,948,833 Richland, City of New 1000 GPM Well and Tank 39218 1191 7100 $0 $0 $2,922,500 $36,871,333 Puckett, Town of Rehab/Painting Ele. Tank 39151 1167 660 $0 $0 $192,000 $37,063,333 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Rehab Existing Infrastructure 38606 7896 7600 $125,000 $500,000 $37,563,333 Batesville, City of New 750 GPM Well 38606 7896 7600 $125,000 $500,000 $38,063,333 Gendale Utility District Installation of New Automated Meters 39401 4087 3800 $0 $0 $367,000 $38,430,333 Madison, City of Construction of 1Mil Gallon Storage Tank 39110 1664 13986 $0 $0 $2,800,895 $41,231,228 Kokomo-Shiloh Water Assn. New Well/Water Treatment Plant/Sys. 39643 690 2775 $0 $0 $1,696,300 $42,927,528 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible Green Loan Amount Statewide Cum. Code Points Population PF Project Requested $ Batesville, City of Rehab Existing Facilities 38606 9629 7600 $102,500 $410,000 $43,337,528 Mount Olive, Town of Replacement of Water Lines 39119 2348 1000 $80,962 $231,320 $43,568,848 Renshaw Water Assn., Inc. New Generator 39194 1897 1000 $0 $0 $34,415 $43,603,263 Alcorn Co. Water Association 300,000 Gal Storage Tank/upgrade Facilities 38834 1187 6500 $190,965 $1,273,101 $44,876,364 Alcorn Co. Water Association Renovate Elevated tanks/Replace Water Lines 38834 1155 6500 $130,938 $872,920 $45,749,284 Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treatment 39114 531 2504 $138,750 $2,634,100 $48,383,384

Thursday, September 21, 2017 Page 2 of 3

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2017 based on the funds authorized and provided by the 2017 Legislature. The funding available in FFY-2017 should equal $50,085,719. **Currently, the requirements of additional subsidization are unknown. Once it has been determined by the final federal appropriation, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. DW – Drinking Water System Improvement Revolving Loan Fund – includes repayments, interest and FFY-2016 Capitalization Grants.

Thursday, September 21, 2017 Page 3 of 3

36 VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2017 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2017 DWSRF Work Plan.

Appendices

38 Appendix A - Part 1A FFY-2017 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2016 FFY-2017 National Title I DWSRF Appropriation (Estimate) (Using FFY-2016 Allotment)

$855,381,000

Mississippi's Allotment [section 1452(m)] (Estimate) (Using FFY-2016 Amount)

$8,607,000 FFY-2017 State Match Required (20% of Mississippi's Allotment) (Estimated) (Using FFY-2016 Amount)

$1,721,400 Total FFY-2017 Federal Allotment and Required State match (Estimate):

$10,328,400 FFY-2017 Funding (Federal and State)

$8,607,000 Total 2016 Federal and State Funds available in FFY-2017 for Loan Obligations & Set-asides:

FFY-2016 Cap Grant Set-Asides

$2,108,680

Total Federal and State Funds available in FFY-2017: + $10,328,400 Less FFY-2016 Set-asides: - ($2,108,680) Total Federal & State Funds available for Loan Obligation in FFY-2017:

$8,219,720 FFY-2017 DWSRF Funds (Anticipated)

$43,433,167

39 Appendix A - Part 2A FFY-2016 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2016 FFY-2016 National Title I DWSRF Appropriation (Actual Amount)

$855,381,000

Mississippi's Allotment [section 1452(m)] (FFY-2016 Grant – Actual Amount)

$8,607,000 FFY-2016 State Match Required (20% of Mississippi's Allotment) (Actual) + $1,721,400 Total FFY-2015 Federal Allotment and Required State Match (Actual):

$10,328,400 2016 Funding (Federal and State) (FFY-2015 Cap Grant Funds were used in 2016)

$10,918,800 FFY-2015 Cap Grant Set-Asides

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2003) + $320,164 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $181,980 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~5.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $909,900 Total FFY-2015 Cap Grant Set-Asides:

$2,162,044 Total Federal & State Funds Available in FFY-2016 for Loan Obligation & Set-asides

$10,918,800 Less FFY-2015 Set-asides - ($2,162,044) Total Federal & State Funds Available in FFY-2016 for Loan Obligation

$8,756,756 FFY-2016 DWSRF Funds (Actual)

$49,584,048 Loan Awards made during FFY-2016 (14 Initial Loans for $26,106,196)

($26,106,196) FFY-2016 Carryover Funds to FFY-2017

$23,477,852

40 Appendix A - Reference Notes:

Part 1A - FFY-2017 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program & Part 2A - FFY-2016 End-of Year Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program

Mississippi will apply for the entire FFY-2017 Cap Grant if State match funds are provided by the Legislature. Cap Grant funds must be matched within 24 months of award.
Mississippi applied for the entire FFY-2016 Cap Grant (All Cap Grant Funds were awarded).

In September 2015, EPA reduced the amount of the FFY-2015 Federal Cap Grant to $9,099,000 at the award of the FFY-2015 Cap Grant to comply with Federal debt reduction requirements; therefore, a 2015 State match of only $1,819,800 was needed for the FFY-2015 Cap Grant. The difference between the required 2015 State Match and the available 2015 State Match is $642,980.

To provide the remainder of the required 2015 State Match for the FFY-2015 Cap Grant, the following amounts were available or transferred in 2015 from the Drinking Water Systems Emergency Loan (DWSELF) Fund;

 $2,709 remaining from a DWSELF transfer for the FFY-2014 Cap Grant match.  $728,611.20 transferred from the DWSELF Fund in August 2015 for the original FFY-2015 Cap Grant amount match.  $6,000 transferred from the DWSELF Fund in February 2016 after the second reduction in the FFY-2015 Cap Grant match by the State. The transfers from the Drinking Water Systems Emergency Loan Fund (DWSELF) in 2015 provided an amount of $737,320.20; only $642,980.00 is required, therefore, an amount of $94,340.20 remains to be used as match for the FFY-2016 Capitalization Grant.

During the 2016 Regular Legislative Session, the State Legislature (House Bill No. 1651 Amended) authorized $1,220,000 in direct funding for the DWSRF program. The FFY-2016 EPA Cap Grant amount is $8,607,000; the required State match amount is $1,721,400. In September 2016 due to a continuing shortfall in State revenue the Governor mandated that the funds authorized by the 2016 Legislature be reduced by $19,834 to $1,200,166. In January 2017

41 due to the continuing shortfall in State revenue the Governor mandated a second reduction in the amount of $17,746; this reduced the available State funds to $1,182,420. In February 2017 due to the continuing shortfall in State revenue the Governor mandated a third reduction in the amount of $17,727; this reduced the available State funds to $1,164,693. In March 2017 due to the continuing shortfall in State revenue the Governor mandated a fourth reduction in the amount of $5,569; this reduced the available State funds to $1,159,124. With $94,340.20 remaining from the match funds for the FFY-2015 EPA Cap Grant, an additional $467,935.80 will be needed as State match for the FFY-2016 Capitalization Grant. In January 2017 the Board authorized the use of an additional $500,000 from DWSELF as the State match; an amount of $32,064.20 will remain to be used as match for the FFY-2017 Capitalization Grant. In 2017 the State Legislature did not provide a direct appropriation for the 20% State match ($1,706,800) for the FFY-2017 EPA Capitalization Grant ($8,534,000); therefore, the Board will be requested to authorized the use of additional funds from DWSELF and/or other sources as the State match. With the $32,064.20 remaining from 2017, an additional $1,674,735.80 will be required as match for the FFY-2017 Capitalization Grant.

42 Appendix B Part I Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2017 Set-asides will not be available for use until FFY-2018; in FFY-2017 the program will operate using the FFY 2016 Set-asides.

FFY-2017 Set-asides Federal 1Q FFY-18 2Q FFY-18 3Q FFY-18 4Q FFY-18 Total Administrative $200,000 $200,000 0 0 $400,000 Small Sys. Tech Assist. $42,670 $42,670 $42,670 $42,670 $170,680 State Program Mgmt. $213,350 $213,350 $213,350 $213,350 $853,400 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $643,520 $643,520 $443,520 $443,520 $2,174,080

43 Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

Payment (LOC) Number Payment (LOC) Date Payment (LOC) Amount Cumulative (LOC) Amount FFY-2016

FFY-2016 Cap Grant No. 1 of 4 1 st Quarter FFY-2017 $2,151,750 $2,151,750 FFY-2016 Cap Grant No. 2 of 4 2nd Quarter FFY-2017 $2,151,750 $4,303,500

FFY-2016 Cap Grant No. 3 of 4 3rd Quarter FFY-2017 $2,151,750 $6,455,250

FFY-2016 Cap Grant No. 4 of 4 4th Quarter FFY-2017 $2,151,750 $8,607,000

Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2017

FFY-2017 Cap Grant No. 1 of 4 1 st Quarter FFY-2018 $2,133,500 $2,133,500 FFY-2017 Cap Grant No. 2 of 4 2nd Quarter FFY-2018 $2,133,500 $4,267,000

FFY-2017 Cap Grant No. 3 of 4 3rd Quarter FFY-2018 $2,133,500 $6,400,500

FFY-2017 Cap Grant No. 4 of 4 4th Quarter FFY-2018 $2,133,500 $8,534,000

44 Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount FFY-2017

1 st Quarter FFY-2016

$2,151,750

$2,151,750 2nd Quarter FFY-2016

$2,151,750

$4,303,500 3rd Quarter FFY-2016

$2,151,750

$6,455,250 4th Quarter FFY-2016

$2,151,750

$8,607,000

Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

FFY-2018

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount 1 st Quarter FFY-2017 $2,133,500 $2,133,500 2nd Quarter FFY-2017 $2,133,500 $4,267,000

3rd Quarter FFY-2017 $2,133,500 $6,400,500

4th Quarter FFY-2017 $2,133,500 $8,534,000

Appendix E Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS The current contracts cover a contract period to June 30, 2018.

Prior to the expiration of the previous contracts an Invitation for Bids (IFB) for the technical assistance was sent out to potential contractors. Bids were received and all bids were evaluated by the Department; recommendations for aware were presented to the Board (at a regularly scheduled Board meeting); all contracts were awarded as follows.

The contracts for technical assistance currently reside as following: Small Systems Technical Assistance (long-term and intermediate technical assistance) – Communities Unlimited, Inc; Board Management Training Monitoring and Coordination for Water System Officials - Mississippi State University Extension Service; Hands-On Operator Training - Mississippi Rural Water Association, Inc.; PEER Review Program for Public Water Supplies - Mississippi State University Extension Service

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

- Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply

46 will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

Coordination and Monitoring of Board Management Training for Water System Officials:

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

48 skills and knowledge to be able to better fulfill the job requirements of a drinking water system operator. The hands-on training will include a comprehensive approach (lecture plus physical, hands-on sessions with equipment) for all operators attending the training. Trainings are to include equipment/props pertinent to the training topic(s) as a part of the training discussion.

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

AGENCY RESPONSIBILITIES

49 The MSDH will conduct Small Systems Technical Assistance Set-aside activities through Board approved contracts with providers who will be selected following procedures of the State of Mississippi Personal Services Contract Procurement Regulations. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional FTE requirement is anticipated for state agencies to implement the provisions of this set-aside.

50 Appendix F Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After review of the Draft Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft IUP. The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% ($853,400) of the FFY-2017 DWSRF capitalization grant as a set- aside for State Program Management activities of the PWSS Program. The reserved amount will offset the salary, fringe and indirect cost expenses of 8.13 positions of the PWSS Program.

Cost Breakdown:

Administrative/Staffing $525,034 Fringe Benefits $178,511 Indirect Costs $149,855 Total Funding Amount $853,400

51 NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects thirty-eight (38) FTEs will be required to implement the FFY-2017/2018 PWSS Program. A total of 8.13 FTEs will be funded by this set-aside. An estimated $703,545 will be reserved from the FFY-2017 DWSRF Capitalization Grant for salaries and fringe benefits for State Program Management activities.

This amount will fund salary and fringe benefits for the following positions:

Position

Quantity (FTE) Engineering Admin. Supervisor 1.0 Engineer IV, Environmental 1.0 Engineering (EIT) 4.0 Environmental Admin. 1.0 Division Director I 0.13 Special Projects Officer II 1.0

Total FTEs 8.13

Of the remainder, $149,855 will be used for indirect costs to accomplish the requirements of the FFY-2017/2018 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

52 and construction plan and specification review program; ensuring labs used by PWSs within the state are capable of the workload created by regulations; participating in PWS and PWSS training on rule requirements; informing EPA Region 4 of any special state initiatives under the rules or provisions of the SDWA; maintaining records for all rule/policies, enforcing reporting and record keeping as required; maintaining appropriate administrative penalty authority; implementing the PWS definition; attending state/EPA planning and implementation meetings; ensuring that newly permitted PWSs have design/construction capable of compliance with the present and upcoming SDWA regulations; ensuring analytical methods are being applied to demonstrate compliance with the regulations; notifying (if necessary) EPA of intent not to adopt or implement any portion of the rules; and responding to EPA requests for information or verification of state rules implementation.

Non-primacy Requirements

Capacity Development (CD) Program

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

54 ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

55 Appendix G Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contract for coordination of the decommissioning/properly closing inactive water wells/open holes was bid and awarded; the contract will run through June 30, 2018. A new contract for the decommissioning/properly closing inactive water wells/open holes is currently being developed in accordance with new State contracting requirements.

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Mississippi Rural Water Association (MsRWA).

The second contract (closure contract) – is currently being developed in accordance with new State contracting requirements .

PROGRAM ACTIVITIES

56 encourage proper abandonment; mobilization of well contractor to identified site to perform the work; and confirmation that the work has been completed.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

57 Appendix H Mississippi State Program Management Set-Aside Match Requirements - Mississippi 1:1 Requirement

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) removed the requirement for the State 1:1 match for the 10% State Program Management set-aside.

58 Appendix I Coordination Schedules for Jointly Funded Projects FFY-2017 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

These schedules are designed to help assure coordination between the DWSIRLF Program and the Appalachian Regional Commission (ARC) Grant Program, Community Development Block Grant (CDBG) Program, and Rural Utilities Service (RUS) Loan/ Grant Program. These schedules are, however, subject to change due to the timing of federal appropriations or program changes. Date(s) Schedule Item(s)/Deadline(s) ARC CDBG RUS* May 1, 2016 Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2016, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1, 2016 All FY-2017 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2016** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding.** Oct, 2016 MS State Dept. of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY-2017 ARC funding. MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-2017 DWSIRLF funding. MS State Dept. of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2017 CDBG funding. MS State Dept. of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which indicate anticipated FY-2017 RUS funding Nov 15, 2016 MARO completes review of FY-2016 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A)

ARC CDBG RUS Nov 15-30, 2016 MARO notifies local Planning & Development Districts of projects that have been selected for the P1 (fundable priority list). MARO will copy MSDH on these notification letters if grantee has indicated that it is pursuing DWSIRLF loan funds for the project. MSDH will not award a DWSIRLF loan until this notification from MARO is provided. (N/A) (N/A) Oct 18, 2016 (N/A) CDBG program application workshops.*** (N/A) Nov, 2016 MSDH advertises Draft DWSIRLF FFY-2017 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY- 2017 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2017 Intended Use Plan for public comment. Dec 30, 2016 Deadline for all FY-2017 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A) Dec, 2016 Board adopts FFY-2017 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2017 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2016 until 8/2017 Board adopts FFY-2017 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20, 2017 (N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan, 2017 MSDH notifies MARO of projects included on final FFY-2017 Priority List that anticipate receiving FFY-2017 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2017 Priority List that anticipate receiving FFY-2017 CDBG funds.

MSDH notifies RUS of projects included on the final FFY-2017 Priority List that anticipate receiving FFY-2017 RUS funds.

ARC CDBG RUS Feb 1, 2017 MARO sends project applications to ARC- Washington to start final funding approval process. (N/A) (N/A) Feb 16, 2017 (N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2017 until 4:00 p.m. on 2/17/2017. (N/A) Feb- Jun, 2017 ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2017. (N/A) (N/A) Mar, 2017 (N/A) MDA provides notification to MSDH that complete CDBG applications have been received.

(N/A) May 1, 2017** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs.** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

ARC CDBG RUS May, 2017 (N/A) MDA provides notification to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. (NOTE: MSDH will not award a DWSIRLF loan until this notification from MDA is provided.) (N/A) Jun, 2017 MSDH provides notification to MARO that complete DWSIRLF loan applications have been received. MSDH provides notification to MDA that complete DWSIRLF loan applications have been received. MDA provides conformation to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. MSDH provides notification to RUS that complete DWSIRLF loan applications have been received. (Upon Grant Award) MARO provides notification to MSDH that ARC awards have been made. MDA provides notification to MSDH that CDBG awards have been made. RUS provides notification that RUS awards have been made Aug 1, 2017** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** May-Sep, 2017 Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the ARC award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the CDBG award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the RUS award amount to be applied to DWSIRLF eligible costs. If loan applicant desires DWSIRLF loan award prior to RUS award, loan applicant must provide MSDH with a copy of letter from RUS which states their project will be funded only contingent upon receipt of DWSIRLF matching funds. MSDH will not award a DWSIRLF loan until that notification from RUS is provided.

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year, and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year, and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: 844-325-7034.

** FFY-2017 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

Appendix J Drinking Water Systems Emergency Loan Fund Program

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

Appendix K - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can also be found on the MSDH’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2018 and After Planning List” for the purpose of funding such a project during FFY-2017 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

65 -

Part 10 Part 10: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 10 Part 10: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 10: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FINAL FFY-2018 INTENDED USE PLAN AMENDMENT 1

Adopted by the Board September 21, 2018

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

3 - FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 10: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2018 INTENDED USE PLAN AMENDMENT 1 TABLE OF CONTENTS

I. INTRODUCTION

State of Mississippi’s Drinking Water State Revolving Fund
Program Overview
Public Input, Review, and Comment Procedures

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS

IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF)

PROGRAM

Basic Goals
Long-Term DWSIRLF Goals
Short-Term DWSIRLF Goals

III. STRUCTURE OF MISSISSIPPI DWSIRLF 9 A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:
Set-aside Accounts:

DWSIRLF State Match Funds
Drinking Water Systems Emergency Loan Fund (DWSELF)

IV. FINANCIAL STATUS OF THE DWSIRLF 10 A. Source and Use of Fund

Federal Allotment
State Match Requirements
Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management
Interest Rate Determination
Investment

C. Financial Terms of Loans

Funding Limit
Interest Rate
Administration Fee
FFY-2018 Appropriation Special Provisions
Other Related Issues

SET-ASIDE ACTIVITIES 14
Administration
Small System Technical Assistance
State Program Management
Local Assistance and Other State Programs

VI. PRIORITY SYSTEM 16 A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure
FFY-2018 Green Infrastructure Requirement
Loan Decreases
Match for Special Appropriations Project (SPAP) Grants
Subsidization from FFY-2018 Federal Appropriation

Priority System Categories
Priority Ranking Criteria
Priority System Deadlines

VII. FFY-2018 PRIORITY LIST 27 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 31

APPENDICES 32 A. FFY-2018 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSRF) Program 33 FFY-2017 End of Year Funds Report-Mississippi DWSIRLF Program -- October 1, 2017 35 B. PROJECTED SCHEDULE OF OUTLAYS 37 C. PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE 38 D. PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT 39 E. MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET- ASIDE WORK PLAN 40 F. MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN 45 G. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN 50 H. MISSISSIPPI STATE PROGRAM SET-ASIDE MATCH REQUIREMENTS – MISSISSIPPI 1:1 REQUIREMENT FOR FFY-2018 STATE PROGRAM MANGEMENT SET-ASIDE 52 I. COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS 53 J. DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM 58 K. CERTIFICATIONS 59

5 I. Introduction

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds. However, since 2014 the State legislature has, on occasion, provided the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2018 to EPA, other state agencies, the state’s public water supplies, and the general public.

6 B. Program Overview

The amount of the FFY-2018 Cap Grant from EPA for Mississippi is $11,957,000. The FFY-2018 DWSRF Cap grant application will request the full amount. These funds must be used in the time period of July, 2018, through June, 2022. The FFY-2018 IUP will show in detail the goals (basic, long-term and short-term), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518.

C. Public Input, Review, and Comment Procedures

To ensure that the public has an ample opportunity to review and comment upon the IUP, the Department and the Board follows the requirements of the “Mississippi Administrative Procedures Law” prior to final submission of the IUP to EPA. A public notice period of at least twenty-five (25) days allows for review and comment before an oral proceeding. After adoption by the Board, a second filing with the Secretary of State’s Office occurs; if no additional comments are received the IUP becomes law 30 days after the second filing.

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding is scheduled for 9:00 a.m. on Thursday, September 20, 2018. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office, and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

A. Basic Goals

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.

8 3. Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY- 2012 the Program has been using the Local Assistance and Other State Programs set-asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.

Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.

9 5. Meet special funding goals: Future federal appropriations may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.

Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Monies in the Fund support a majority of the functions of the DWSIRLF. These functions include: program administration, set-aside operations, and disbursements to public water systems for eligible projects. The DWSIRLF is a reimbursement program, meaning that after the loan is awarded, costs associated with planning, designing and constructing the project are reimbursed to the recipient. Cap grants from EPA, loan repayments and interest earnings are deposited into this Fund.

Types of Eligible Projects: Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.
Set-aside Accounts: The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following for FFY2018: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems through the current contractual services with Mississippi State University – Extension Service (MSU-ES) and the Mississippi Rural Water Association (MsRWA). c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program through current contractual

10 services with the Mississippi Rural Water Association (MsRWA) and a well decommissioning contractor.

B. DWSIRLF State Match Funds

As required by the SDWA, the State of Mississippi must match the Cap grant with state funds equaling 20% of the federal allotment. The 2018 Mississippi State Legislature approved $3,000,000 in bonds in House Bill 1649 to provide match for FFY 2017 and FFY 2018 Cap grants. While state match monies are maintained separately from the Fund for accounting purposes, they are still considered to be under the “umbrella” protection of the DWSRF Fund.

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The amount of the FFY-2018 Cap Grant from EPA for Mississippi is $11,957,000. Funding amounts and their use are outlined in Appendix A.

20% state match of $2,391,400 is required; this provides an amount of $14,348,400 for both loans and set-aside activities.

With $2,742,063 being utilized for set-aside activities $11,606,337 will remain for loans to Mississippi public water supplies; additionally, unobligated funds from the previous year, anticipated loan repayments and interest earnings (all of which are not classified as state match) will also be available as additional funding sources.

The FFY-2018 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment

With the FFY-2018 Capitalization Grant for Mississippi of $11,957,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.60% state match funds to 79.40% federal grant funds; this requirement was stated in the grant application.

State Match Requirements

In 2018 the State Legislature did provide a bond authorization direct for a portion of the 20% State match ($2,391,400) for the FFY-2018 EPA Capitalization Grant ($11,957,000. Authorization for the remaining amount required will be requested from the State Legislature during an upcoming session.

Loan Increase Reserve

Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the amount indicated in Appendix A for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be made available for new loan awards to the highest ranking project(s) that is ready for loan award at the time funds become available.

B. Financial Planning Process

Efficient Bond Management

The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF Fund and shall be used as the state match for federal DWSRF Cap grants.

Interest Rate Determination

It is the Board’s intention to adjust interest rates such that the demand will equal the funds available. In order to ensure that this interest rate will be at or below the prevailing market rates at the time a loan is made, this rate will be compared to the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield published by fmsbonds, Inc. (fmsbonds Online, https://www.fmsbonds.com/market-yields/).

Investment

Investment Procedures for Excess Cash - According to the State Treasurer, the excess cash in the Fund is invested by the State Treasurer in securities prescribed in Section 27-105-33, et. Seq., of the Mississippi Code of 1972 Annotated, as amended. The securities in which state funds may be invested include certificates of deposit with qualified state depositories, repurchase agreements (fully secured by direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations), direct United States Treasury obligations, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations, and any other open-ended or closed-ended management type investment company or investment trust registered under the provisions of 15 U.S.C. Section 80(a)-1 et. Seq, provided that the portfolio is limited to direct obligations issued by the United States of America, United States Government agency obligations, United States Government instrumentalities or United States Government sponsored enterprise obligations and to repurchase agreements fully collateralized by the securities listed above for repurchase agreements.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2018 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2018, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2018 may obtain an additional award(s) or an increase to a previous FFY-2018 award, if no other eligible systems are evident.

Interest Rate

Administration Fee

FFY-2018 Appropriation Special Provisions

Subsidization requirements are required for the FFY-2018 Cap Grant; the subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The anticipated amount of subsidization is expected to be a minimum of 20% of the Cap Grant amount. Subsidization for FFY-2018 will be $2,391,400. Furthermore, all loans made with all or part FFY-2018 federal appropriation funds are expected to include the Davis-Bacon Act requirements, American Iron and Steel requirements, and signage requirements. Appropriate language will be added to all FFY-2018 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not an appropriation requirement; however, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.

Other Related Issues

a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds provided through the FFY-2018 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. To insure that the assistance is dispersed as far as possible, the Board has set a limit ($500,000) which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for FFY-2018, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2017, and the DWSIRLF loan is awarded by September 30, 2018. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The FFY-2018 Priority List expires on September 30, 2018. Projects listed in the FFY-2018 Priority List that do not receive funding by this date will not be funded under the FFY-2018 funding cycle and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2018 DWSIRLF projects is shown in Section VIII of this IUP. To facilitate the use of FFY-2018 federally appropriated funds, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The state plans to use $2,742,063 of the FFY-2018 Federal Capitalization grant to support the non-project-related drinking water programs activities. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take any additional set-asides from the FFY-2018 Local Assistance and Other State Programs set-aside, but reserves the right to make revisions to utilize additional funds from this set-aside. The amount of funds used from the FFY-2018 Cap Grant-Local Assistance and Other State Programs assistance set-aside will be $750,000 (6.27%).

15 A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the "Administrative" amount used may be the greater of $400,000 or 4% of the Cap Grant amount. The State plans to use $484,280 for "Administrative" purposes. Costs beyond this amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments.

The state will continue to exercise its right to reserve the Administrative amounts from previous Cap Grants.

B. Small System Technical Assistance

The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY- 2018 Cap Grant ($239,140) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; and Hands-on Operator Training; and Asset Management Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix E to this IUP.

C. State Program Management

The state intends to use the full 10% set-aside from the FFY-2018 Cap grant ($1,195,700), as authorized by Section 1452(g)(2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix F to this IUP. . The SDWA-DWSRF amendments in the 2018 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) removed the requirement for the State 1:1 match for the 10% State Program Management set-aside.

D. Local Assistance and Other State Programs

The state intends to use $750,000 (6.27%) of the 15% set-aside amount which is allowed from the FFY-2018 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

address the most serious risk to human health
are necessary to ensure compliance with the SDWA requirements
assist systems most in need, on a per household basis

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure

Should any projects on the FFY-2018 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.

FFY-2018 Green Infrastructure Requirement

The FFY-2018 federal appropriation does not require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or

17 more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

Projects desiring to be classified as “green” will be judged for eligibility based on the guidance supplied by the EPA. Systems desiring “Green Infrastructure” classification will be required to present a “business case” establishing justification for the classification request.

Loan Decreases

Any funds recovered from loan decreases during the year will be used:

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

18 4. Match for Special Appropriations Project (SPAP) Grants

On October 10, 2001, EPA issued policy memorandum DWSRF 02-01 to notify regions and states of a change in policy regarding the use of DWSRF monies for providing local match for SPAP grants. This change in EPA policy will allow the state to use non-federal, non-state match DWSIRLF funds to provide loans that can be used as local match for SPAP grants awarded for drinking water projects. These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non- federal, non-state match monies have been obligated or demand for such funds has been met.

Subsidization from FFY-2018 Federal Appropriation

EPA is expected to mandate that a minimum 20% of the FFY-2018 Cap grant be provided as additional subsidization to disadvantaged communities. Based on the FFY-2018 grant amount of $11,957,000 the amount of subsidization will be $2,391,400. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2018 may be awarded to projects eligible for PF in FFY-2018 and FFY-2019.

Disadvantaged Community Program

During FFY-2018, the following Principle Forgiveness (PF) methodology will be used since it is anticipated that the FFY-2018 federal appropriation will continue to require the state to provide additional subsidy for disadvantaged communities.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness

19 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report

21 (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.

22 11. Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor

23 An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi ($40,593) to the MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5.

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

24 points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all of the recommendations made by CRG will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by CRG must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2017, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

This deadline also applies to all projects competing for released funds during FFY-2018 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2018 IUP.

By May 1, 2018, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2018 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2018 IUP.
By August 1, 2018, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2018 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2018 IUP.

26 VII. FFY-2018 Priority List FINAL

Category II: Previous Year Certified Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Fayette, City of New Well/Rehab T.Plant,Wells,Generator & Controls 39069 1504 1965 $360,000 $800,000 $800,000

North Pike Water Association New Well & 200,000 Gal. Tank/Rehab Existing Tank 39666 805 5016 $0 $2,271,200 $3,071,200 Category III: Primary Drinking Water Standards Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Jackson, City of Treatment & Dist. Improvements 39201 37222 174382 $500,000 $13,000,000 $16,071,200

Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $146,500 $586,000 $16,657,200

Friars Point, Town of Distribution System Improvements 38631 357 1200 $500,000 $1,473,600 $18,130,800 Category IV: One Well Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Collins, City of Distribution System Improvements 39428 1467 4000 $374,597 $832,438 $18,963,238

Walnut, Town of Install Auto Read Meters/New Water Lines 38683 1333 1391 $211,585 $470,189 $19,433,427

Bay Springs, City of Distribution System Improvements 39422 1274 2100 $383,223 $1,094,922 $20,528,349

Bude, Town of Repalce Approx.13,000 LF of Undersized Water Mains 39630 338 1067 $139,598 $398,850 $20,927,199 Category V: Pressure Deficiencies Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Aberdeen, City of 400 GPM Well/100,000 Gal. Elev.Tank/Rehab Lines 39730 2316 6415 $370,487 $1,481,949 $22,409,148

Cedar Grove-Harmony Water Assn Water Distribution Improvements 39429 672 1500 $0 $1,008,000 $23,417,148 Category VI: Source Water Protection Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Oceans Springs, City of Replace Water Mains/tie-in with WJCUD 39566 196 21000 $0 $8,690,000 $32,107,148 --------------------------------------------------------------------------------------------------------------Funding Line $32,273,956---------------------------------------------------------------------------------------- Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Brandon, City of 1000 GPM Well/1 Mil Gal Above Ground Storage Tank 39042 2504 26355 $0 $5,213,285 $37,320,433

Jackson County Utility Authority Distribution System Improvements 39567 1732 43680 $0 $6,250,000 $43,570,433

S E Greene Water Authority Rehab Treatment Facility/Water Line Extension 39452 895 1572 $0 $670,519 $44,240,952 Category VIII: Back-up Water Supply Sources Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Kokomo-Shiloh Water Assn. New Well/Water Treatment Plant/Sys. Improvements 39643 690 2775 $424,075 $1,696,300 $45,937,252

Harland Creek Water Assn New Storage Tank/Water Mains/SCADA Sysem 39095 531 1338 $500,000 $1,259,600 $47,196,852

27 Category IX: Existing Facilities Upgrade (Meeting Primary Standards)

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum.

Code Points Population

Requested $

Fannin Water Association 500 GPM Well/209 kgal Glass Lined Tank 39047 1823 8584 $0 $1,188,750 $48.385.602

Alcorn Co. Water Association 300,000 Gal Storage Tank/upgrade Facilities 38834 1187 6500 $318,275 $1,273,101 $49,658,703

Wiggins, City of 1000 GPM Well/3,000 ft.8" Main/Seal Well 39577 1055 4747 $0 $1,610,668 $51,269,371

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2018 based on the funds authorized and provided by the 2018 Legislature. With the approved state match, funding available in FFY-2018 is $32,273,956.

Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use. CPF – Cumulative Principal Forgiveness CGI – Cumulative Green Infrastructure Green Infrastructure Project Codes E – Energy Efficiency, W – Water Efficiency, G – Green Infrastructure, EI – Environmentally Innovative Green projects are projects that provide benefits in the form of increased energy efficiency, increased water efficiency, added green infrastructure, and/or are environmentally innovative. Projects currently listed as Green Infrastructure are based on information supplied in submitted facility plans. This determination of Green Infrastructure will be based on guidelines supplied by the Environmental Protection Agency.

28 FINAL

Fiscal Year - 2019 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2017 deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.)

Category II: Previous Year Certified Projects

Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Jayess-Topeka Tilton WA Replace 2" Water Mains With 6" 39641 1426 3753 $25,238 $168,250 $168,250

Category III: Primary Drinking Water Standards Projects Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Tunica County Utility District Repair & Paint Elevated Storage Tanks 38676 4232 10000 $146,500 $586,000 $754,250 Braxton, Town of Construction of New Well 39044 372 775 $0 $819,000 $1,573,250 Category IV: One Well Projects Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum.

Points Population Amount Requested $ Natchez, City of Water System Improvements 39121 4632 15792 $500,000 $1,765,000 $3,338,250 Natchez, City of Water System Improvements 39121 4001 15792 $500,000 $2,499,980 $5,838,230 West Jackson County UD Water System Improvement 39564 1400 25000 $0 $5,000,000 $10,838,230

Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum.

Points Population Amount Requested $ Batesville, City of Installation of Water lines 38606 31582 7600 $18,750 $125,000 $10,963,230 Batesville, City of Installation of Water Lines 38606 26319 7600 $22,500 $150,000 $11,113,230 Batesville, City of Rehab/Replacement of Existing Facilities 38606 14356 7600 $41,250 $275,000 $11,388,230 Batesville, City of Rehab Existing Facilities 38606 11279 7600 $52,500 $350,000 $11,738,230 Batesville, City of 500,000 Gallon Elevated Tank 38606 5264 7600 $112,500 $750,000 $12,488,230 Short Coleman Park Water Assn. Repaint 2 Elevated Tanks/250,000/500,000 GAL 38852 3183 5004 $0 $561,915 $13,050,145 Bear Creek Water Assn., Inc. Replace Tank With New 2 Mil Gal Tank 39046 1534 45000 $0 $4,890,000 $17,940,145

29 McLain, Town of New 8" Val on Existn Mains/Meters/1000 Ft. Main 39456 1466 441 $49,739 $142,111 $18,082,256 Southeast Rankin Water Assn., Inc. New Water Well/Water Distribution System 39151 1393 0 $0 $1,154,000 $19,236,256 Puckett, Town of Rehab/Painting Ele. Tank 39151 1167 660 $0 $192,000 $19,428,256 West Madison County Utility District Rehab Existing 150,000 Tank/Replace Water Mains 39071 821 1261 $147,769 $591,075 $20,019,331

Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum.

Points Population Amount Requested $ Batesville, City of Rehab Existing Infrastructure 38606 7896 7600 $75,000 $500,000 $20,519,331 Batesville, City of New 750 GPM Well 38606 7896 7600 $75,000 $500,000 $21,019,331 Gendale Utility District Installation of New Automated Meters 39401 4087 3800 $0 $367,000 $21,386,331 Madison, City of Construction of 1Mil Gallon Storage Tank 39110 1664 13986 $0 $2,800,895 $24,187,226

Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum.

Points Population Amount Requested $ Batesville, City of Rehab Existing Facilities 38606 9629 7600 $61,500 $410,000 $24,597,226 Mount Olive, Town of Replacement of Water Lines 39119 2348 1000 $104,094 $231,320 $24,828,546 Renshaw Water Assn., Inc. New Generator 39194 1897 1000 $15,487 $34,415 $24,862,961 Alcorn Co. Water Association Renovate Elevated tanks/Replace Water Lines 38834 1155 6500 $218,230 $872,920 $25,735,881 Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treament Plant 39114 531 2504 $395,115 $2,634,100 $28,369,981

30 VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2018 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2018 IUP and funding projects shown on the FFY-2018 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2018.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2018 DWSRF Work Plan.

Appendices

32 Appendix A - Part 1A FFY-2018 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program w/ FFY-2017 EPA Cap Grant Funds October 1, 2017 FFY-2018 Funding (Federal and State) (Estimate)

**2017 Legislated State Match (There was no Appropriation by the State Legislature for the FFY2017 EPA Cap Grant; $1,706,000 is required) + $0 **2017 Emergency Fund remaining (The remainder of the 2017 Emergency Fund transfers not used for State match of the FFY2016 Cap Grant = $32,064.20; this amount will obtain $160,321.00 of the Grant funds) + $32,064 **2017-2018 Remaining State match needed: (An additional $1,674,800.80 is needed from Emergency Funds or other existing State funds to drawdown the complete FFY2017 EPA Cap Grant.) + $1,674,801 FFY2017 Cap Grant (The FFY2017 Federal Cap Grant awarded was $8,534,000; needed State match = $1,706,800) + $8,534,000 Total Federal and State Funds available in FFY-2018 for Loan Obligations & Set-asides:

$10,240,865

FFY-2017 Cap Grant Set-Asides

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (SDWA-DWSRF amendment to 2017 WIIN Act) + $400,000 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $170,680 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~8.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $853,400 Total FFY-2017 Cap Grant Set-Asides:

$2,174,080

Total Federal and State Funds Anticipated to be Available in FFY-2018 + $10,240,865 Less FFY-2017 Set-asides: - ($2,174,080) Total Federal & State Funds Anticipated to be Available for Loan Obligation in FFY-2018:

$8,066,785 2018 DWSRF Funds (Anticipated)

Total Federal & State Funds Anticipated to be Available for Loan Obligation in FFY-2018: + $8,066,785 Unobligated Funds Carried Over from FFY-2017 + $13,679,500 Loan Repayments To Be Deposited (Anticipated) 10/1/17 - 9/30/18 + $13,337,673 Interest on Fund To Be Deposited (Anticipated) 10/1/17 - 9/30/18 + $806,493 2018 Loan Increase Reserve ($1.0m) - ($1,000,000) Total Funds Available for Loan Awards in FFY-2018 (Anticipated)

$34,890,451*

*Note, the Mississippi Legislature, in the Appropriation for the Mississippi Board of Health (HB1599), authorized expenditures for the “defraying of expenses of the Local Governments and Rural Water Systems Improvements Board” of $35,016,109.00. Deducting the FFY 2018 set-asides of $2,742,063 leave a balance of $32,273,956 available for loans.

33 Appendix A - Part 2A FFY-2017 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2017 2017 Funding (Federal and State) (FFY-2016 Cap Grant Funds were used in 2017)

**2016 Legislated State Match (Direct Appropriation from Legislature-$1,220,000 reduced to $1,159,124.00) + $1,159,124 **2015 Emergency Fund remaining (The remainder of the 2016 Emergency Fund transfers not used for the FFY2015 Cap Grant State Match = $94,340.20) + $94,340 **2016-2017 Emergency Funds transfer (Amount needed to supplement the State match for the FFY2016 Cap Grant ($467,935.80) Board authorized transfer of $500,000 from the Emergency Fund, this left $32,064.20 to be used for match of the FFY2017 EPA Cap Grant) + $467,936 FFY2016 Cap Grant (The FFY2016 Federal Cap Grant awarded was $8,607,000 ) + $8,607,000 Total FFY-2016 Federal and State Funds available in FFY-2017 for Loan Obligations & Set-asides:

$10,328,400 NOTE: No FFY2017 Cap Grant Funds or Set-asides are shown in this report. State match funding for the FFY2017 Cap Grant funds are normally not available until QTR4 of year; the first portion of the Cap Grant funds will not usually be received until QTR1 of Federal FY. In 2017 the State legislature did not provide any State Match funds for the FFY2017 EPA Cap Grant.

FFY2016 Cap Grant Set-Asides (Actual)

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (Used reserved amount from 2008) + $325,840 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $172,140 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~5.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $860,700 Total FFY-2016 Cap Grant Set-Asides:

$2,108,680

Total Federal & State Funds Available in FFY-2017 for Loan Obligation & Set-asides

$10,328,400 Less FFY-2016 Set-asides - ($2,108,680) Total Federal & State Funds Available in FFY-2017 for Loan Obligation

$8,219,720 FFY-2017 DWSRF Funds (Actual)

Federal & State Funds available in FFY-2017 for Loan Obligation + $8,219,720 Unobligated Funds Carried Over from FFY-2016 + $23,477,852 Loan Repayments Deposited to the Fund (Actual) 10/1/16 - 9//30/17 + $14,550,189 Interest Deposited to the Fund (Actual) 10/1/16 - 9//30/17 + $879,811 FFY-2017 Loan Decreases (Actual) 10/1/16 - 9//30/17 + $4,095,705 FFY-2017 Loan Increases (Actual) 10/1/16 - 9//30/17 - ($735,171) Funds Available for Loan Awards in FFY-2017

$50,488,106 Loan Awards made during FFY-2017 (19 Initial Loans for $36,808,606)

($36,808,606) FFY-2017 Carryover Funds to FFY-2018

$13,679,500

34 Appendix A - Reference Notes:

Part 1A - FFY-2018 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program & Part 2A - FFY-2017 End-of Year Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program

Mississippi applied for the entire FFY-2018 Cap Grant. Cap Grant funds must be matched within 24 months of award.
Mississippi applied for the entire FFY-2017 Cap Grant; however, the 2017 State Legislature did not authorize any funding for the DWSRF program.

**During the 2016 Regular Legislative Session, the State Legislature (House Bill No. 1651 Amended) authorized $1,220,000 in direct funding for the DWSRF program. The FFY-2016 EPA Cap Grant amount is $8,607,000; the required State match amount is $1,721,400. In September 2016 due to a continuing shortfall in State revenue the Governor mandated that the funds authorized by the 2016 Legislature be reduced by $19,834 to $1,200,166. In January 2017 due to the continuing shortfall in State revenue the Governor mandated a second reduction in the amount of $17,746; this reduced the available State funds to $1,182,420. In February 2017 due to the continuing shortfall in State revenue the Governor mandated a third reduction in the amount of $17,727; this reduced the available State funds to $1,164,693. In March 2017 due to the continuing shortfall in State revenue the Governor mandated a fourth reduction in the amount of $5,569; this reduced the available State funds to $1,159,124. With $94,340.20 remaining from the match funds for the FFY-2015 EPA Cap Grant, an additional $467,935.80 will be needed as State match for the FFY-2016 Capitalization Grant. In January 2017 the Board authorized the use of an additional $500,000 from DWSELF as the State match; an amount of $32,064.20 will remain to be used as match for the FFY-2017 Capitalization Grant.

The 2017 State Legislature did not authorize any funding for the DWSRF program in 2017. The FFY-2017 EPA Cap Grant amount is $8,534,000; the required State match amount is $1,706,800.

The 2018 State Legislature provided bonds for the State’s 20% match portion of the FFY-2018 EPA Capitalization Grant and the FFY2017 Cap Grant. Using bond proceeds and remaining authorizations from the DWSELF as outlined above, the 201y Cap grant is fully matched. The 2018 Cap grant requires a match of $2,394,100. Bonds remaining from the $3,000,000 authorization total $1,825,264, leaving a balance of $566,136 needed to fully match the 2018 Cap grant.

35 Appendix B Part I Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2018 Set-asides Federal 1Q FFY-18 2Q FFY-18 3Q FFY-18 4Q FFY-18 Total Administrative $242,140 $242,140 0 0 $484,280 Small Sys. Tech Assist. $59,785 $59,785 $59,785 $59,785 $239,140 State Program Mgmt. $298,925 $298,925 $298,925 $298,925 $1,195,700 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $788,350 $788,350 $546,210 $546,210 $2,669,120

FFY-2018 Set-asides will not be available for use until FFY-2019; in FFY-2018 the program will operate using the FFY 2017 Set-asides.

Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2017

FFY-2017 Cap Grant No. 1 of 4 1 st Quarter FFY-2018 $2,133,500 $2,133,500 FFY-2017 Cap Grant No. 2 of 4 2nd Quarter FFY-2018 $2,133,500 $4,267,000

FFY-2017 Cap Grant No. 3 of 4 3rd Quarter FFY-2018 $2,133,500 $6,400,500

FFY-2017 Cap Grant No. 4 of 4 4th Quarter FFY-2018 $2,133,500 $8,534,000

FFY-2018

FFY-2018 Cap Grant No. 1 of 4 1 st Quarter FFY-2018 $2,989,250 $2,989,250 FFY-2018 Cap Grant No. 2 of 4 2nd Quarter FFY-2018 $2,989,250 $5,978,500

FFY-2018 Cap Grant No. 3 of 4 3rd Quarter FFY-2018 $2,989,250 $8,967,750

FFY-2018 Cap Grant No. 4 of 4 4th Quarter FFY-2018 $2,989,250 $11,957,000

Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount FFY-2017

1 st Quarter FFY-2017 $2,133,500 $2,133,500 2nd Quarter FFY-2017 $2,133,500 $4,267,000

3rd Quarter FFY-2017 $2,133,500 $6,400,500

4th Quarter FFY-2017 $2,133,500 $8,534,000

FFY-2018

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount 1 st Quarter FFY-2018 $2,989,250 $2,989,250 2nd Quarter FFY-2018 $2,989,250 $5,978,500

3rd Quarter FFY-2018 $2,989,250 $8,967,750

4th Quarter FFY-2018 $2,989,250 $11,957,000

Appendix E Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS The current technical assistance contracts expire on June 30, 2018.

Prior to the expiration of the existing contracts an Invitation for Bids (IFB) for the technical assistance contracts will be sent out to potential contractors. All proposals will be evaluated by the Department and recommendations for aware will be Adopted by the Board (at a regularly scheduled Board meeting); all contracts will be awarded.

The contracts for technical assistance currently reside as following:

Small Systems Technical Assistance (long-term and intermediate technical assistance) – Communities Unlimited, Inc.; Board Management Training Monitoring and Coordination for Water System Officials - Mississippi State University Extension Service; Hands-On Operator Training - Mississippi Rural Water Association, Inc.; PEER Review Program for Public Water Supplies - Mississippi State University Extension Service.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

40 Coordination and Monitoring of Board Management Training for Water System Officials:

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

41 physical, hands-on sessions with equipment) for all operators attending the training. Trainings are to include equipment/props pertinent to the training topic(s) as a part of the training discussion.

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance:

Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

42 Asset Management Training:

The Contractor will provide practical, applied, asset management training for public water system operators in the State of Mississippi using the guidance provided by the EPA in its publication titled “Asset Management: A Best Practices Guide”. Training will be provided at three different locations in the state, one per Public Health Region and will be provided at no cost to attendees. Activity Objectives - provide asset management training to water system operator statewide.

Reporting/Evaluation - written quarterly reports using a format approved by MSDH. The reports shall include but are not limited to: a) details of sessions conducted; b) number of attendees and their comments; c) related problems that occurred during or as a result of a training session and any solution(s); d) an itemized list of the costs incurred by the training organization; and e) other related items. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

AGENCY RESPONSIBILITIES

43 Appendix F Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After review of the FINAL FFY-2018 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the FINAL FFY-2018 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the FINAL IUP. After the resolution of any comments from the public, the Final FFY-2018 IUP will be Adopted by the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2018 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% ($1,195,700) of the FFY-2018 DWSRF capitalization grant as a set- aside for State Program Management activities of the PWSS Program. The reserved amount will offset the salary, fringe and indirect cost expenses of a portion of the PWSS personnel positions in the PWSS Program.

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects thirty-eight (38) FTEs will be required to implement the FFY-2017/2018 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

44 primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

As required to maintain state primacy, MSDH maintains the PWSS programs on an ongoing or as-needed basis. These programs include: revising current primacy programs by adopting new Federal regulations as needed; coordinating for Mid-Year and End-of-Year review with EPA Regional Office; maintaining a sanitary survey program with discrepancy follow-up; participating in state data verification audits; ensuring public water systems (PWSs) are utilizing approved laboratories and a certification program for those laboratories is in place; participating in the EPA Regional oversight; operating in accordance with requirements of the National Primary Drinking Water Regulations; maintaining an active water system design and construction plan and specification review program; ensuring labs used by PWSs within the state are capable of the workload created by regulations; participating in PWS and PWSS training on rule requirements; informing EPA Region 4 of any special state initiatives under the rules or provisions of the SDWA; maintaining records for all rule/policies, enforcing reporting and record keeping as required; maintaining appropriate administrative penalty authority; implementing the PWS definition; attending state/EPA planning and implementation meetings; ensuring that newly permitted PWSs have design/construction capable of compliance with the present and upcoming SDWA regulations; ensuring analytical methods are being applied to demonstrate compliance with the regulations; notifying (if necessary) EPA of intent not to adopt or implement any portion of the rules; and responding to EPA requests for information or verification of state rules implementation.

Non-primacy Requirements

Capacity Development (CD) Program

As required by the SDWA, each state is required to develop and implement a Public Water System Capacity Development Program in order to receive full funding annually

45 under the DWSRF Program. Public water system capacity assessment is a full evaluation of the PWS’s technical, managerial, and financial ability to provide safe drinking water to its customers by complying with all state and Federal regulations. In accordance with the Federal requirements, MSDH has developed and implemented a CD program for both new and existing PWSs. The MSDH CD program takes the form of a rating that each community water system (CWS) and non-transient non-community water system (NTNCWS) receives at their annual sanitary survey. The criteria used in the rating system incorporate laws, regulations, and other valuable information to evaluate the areas of technical, managerial, and financial capacity. The program is also designed to evolve from year-to-year through an annual meeting of an advisory committee that will make suggestions as to possible changes and/or additions to the rating criteria. As required by regulation, an annual report is made to the Governor on the efficacy of the strategy and progress towards improving the capacity of PWSs in the state. Additionally, annual documentation of ongoing implementation of the CD strategy is to be provided with DWSRF Capitalization Grant application.

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

48 Appendix G Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contract for coordination of the decommissioning/properly closing inactive water wells/open holes was bid and awarded; the contract will run through June 30, 2018. A new contract for the decommissioning/properly closing inactive water wells/open holes was developed and bid in accordance with new State contracting requirements.

An Invitation For Bids (IFBs) for the coordination of the decommissioning/properly closing inactive water wells/open holes was sent to qualified potential contractors. Bids received were reviewed by the Department to select the lowest and best bid for the agency. Recommendations for award of a contract were Adopted by the Board at their regularly scheduled Board meeting; following authorization by the Board, the coordination contract was awarded.

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Mississippi Rural Water Association (MsRWA).

The second contract (closure contract) – is currently being developed in accordance with new State contracting requirements.

PROGRAM ACTIVITIES

49 encourage proper abandonment; mobilization of well contractor to identified site to perform the work; and confirmation that the work has been completed.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

50 Appendix H Mississippi State Program Management Set-Aside Match Requirements - Mississippi 1:1 Requirement

On December 16, 2016, the Water Infrastructure Improvements for the Nation Act (WIIN Act) of 2017 became law. Portions of the WIIN Act amended the Safe Drinking Water Act §1452 ( 42 U.S.C. 300j-12); the 2017 WIIN Act amended the Drinking Water State Revolving Fund (DWSRF)-Related Safe Drinking Water Act (SDWA) by eliminating the requirement that a 1:1 match be provided by the State for the 10% State Program Management Activities set-aside of the DWSRF Capitalization Grant.

51 Appendix I Coordination Schedules for Jointly Funded Projects FFY-2018 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

These schedules are designed to help assure coordination between the DWSIRLF Program and the Appalachian Regional Commission (ARC) Grant Program, Community Development Block Grant (CDBG) Program, and Rural Utilities Service (RUS) Loan/ Grant Program. These schedules are, however, subject to change due to the timing of federal appropriations or program changes. Date(s) Schedule Item(s)/Deadline(s) ARC CDBG RUS* May 1, 2017 Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2017, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1, 2017 All FY-2018 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2017** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding.** Oct, 2017 MS State Dept. of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY-2018 ARC funding. MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-2018 DWSIRLF funding. MS State Dept. of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2018 CDBG funding. MS State Dept. of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which indicate anticipated FY-2018 RUS funding Nov 15, 2017 MARO completes review of FY-2017 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A)

ARC CDBG RUS Nov 15-30, 2017 MARO notifies local Planning & Development Districts of projects that have been selected for the P1 (fundable priority list). MARO will copy MSDH on these notification letters if grantee has indicated that it is pursuing DWSIRLF loan funds for the project. MSDH will not award a DWSIRLF loan until this notification from MARO is provided. (N/A) (N/A) Oct 18, 2017 (N/A) CDBG program application workshops.*** (N/A) Nov, 2017 MSDH advertises FINAL DWSIRLF FFY- 2018 Intended Use Plan for public comment. MSDH advertises FINAL DWSIRLF FFY- 2018 Intended Use Plan for public comment. MSDH advertises FINAL DWSIRLF FFY- 2018 Intended Use Plan for public comment. Dec 30, 2017 Deadline for all FY-2018 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A) Dec, 2017 Board adopts FFY-2018 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2018 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2017 until 8/2018 Board adopts FFY-2018 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20, 2018 (N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan, 2018 MSDH notifies MARO of projects included on final FFY-2018 Priority List that anticipate receiving FFY-2018 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2018 Priority List that anticipate receiving FFY-2018 CDBG funds.

MSDH notifies RUS of projects included on the final FFY-2018 Priority List that anticipate receiving FFY-2018 RUS funds.

ARC CDBG RUS Feb 1, 2018 MARO sends project applications to ARC- Washington to start final funding approval process. (N/A) (N/A) Feb 16, 2018 (N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2018 until 4:00 p.m. on 2/17/2018. (N/A) Feb- Jun, 2018 ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2018. (N/A) (N/A) Mar, 2018 (N/A) MDA provides notification to MSDH that complete CDBG applications have been received.

(N/A) May 1, 2018** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs.** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

ARC CDBG RUS May, 2018 (N/A) MDA provides notification to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. (NOTE: MSDH will not award a DWSIRLF loan until this notification from MDA is provided.) (N/A) Jun, 2018 MSDH provides notification to MARO that complete DWSIRLF loan applications have been received. MSDH provides notification to MDA that complete DWSIRLF loan applications have been received. MDA provides conformation to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. MSDH provides notification to RUS that complete DWSIRLF loan applications have been received. (Upon Grant Award) MARO provides notification to MSDH that ARC awards have been made. MDA provides notification to MSDH that CDBG awards have been made. RUS provides notification that RUS awards have been made Aug 1, 2018** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** May-Sep, 2018 Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the ARC award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the CDBG award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the RUS award amount to be applied to DWSIRLF eligible costs. If loan applicant desires DWSIRLF loan award prior to RUS award, loan applicant must provide MSDH with a copy of letter from RUS which states their project will be funded only contingent upon receipt of DWSIRLF matching funds. MSDH will not award a DWSIRLF loan until that notification from RUS is provided.

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year, and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year, and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: 844-325-7034.

** FFY-2018 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

56 -

Appendix J Drinking Water Systems Emergency Loan Fund Program

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

57 - Appendix K - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

58 -

The state certifies that prior to adding any new projects to the “FFY-2018 and After Planning List” for the purpose of funding such a project during FFY-2018 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

Part 11 Part 11: Drinking Water Systems Emergency Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 11 Part 11: Drinking Water Systems Emergency Loan Fund Program Regulations

FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 11: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FINAL FFY-2019 INTENDED USE PLAN

Approved by the Board on May 31, 2019

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

3 - FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 11: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2019 INTENDED USE PLAN TABLE OF CONTENTS

I. INTRODUCTION

State of Mississippi’s Drinking Water State Revolving Fund
Program Overview
Public Input, Review, and Comment Procedures

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS

IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF)

PROGRAM

Basic Goals
Long-Term DWSIRLF Goals
Short-Term DWSIRLF Goals

III. STRUCTURE OF MISSISSIPPI DWSIRLF 9 A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:
Set-aside Accounts:

DWSIRLF State Match Funds
Drinking Water Systems Emergency Loan Fund (DWSELF)

IV. FINANCIAL STATUS OF THE DWSIRLF 10 A. Source and Use of Fund

Federal Allotment
State Match Requirements
Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management
Interest Rate Determination
Investment

C. Financial Terms of Loans

Funding Limit
Interest Rate
Administration Fee
FFY-2019 Appropriation Special Provisions
Other Related Issues

4 -
5 -
1. SET-ASIDE ACTIVITIES 15
2. Administration
3. Small System Technical Assistance
4. State Program Management
5. Local Assistance and Other State Programs

VI. PRIORITY SYSTEM 16 A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure
FFY-2019 Green Infrastructure Requirement
Loan Decreases
Match for Special Appropriations Project (SPAP) Grants
Subsidization from FFY-2019 Federal Appropriation

Priority System Categories
Priority Ranking Criteria
Priority System Deadlines

VII. FFY-2019 PRIORITY LIST 27 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 31

APPENDICES 32 A. FFY-2019 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSRF) Program 33 B. PROJECTED SCHEDULE OF OUTLAYS 35 C. PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE 36 D. PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT 37 E. MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET- ASIDE WORK PLAN 38 F. MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN 43 G. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN 48 H. MISSISSIPPI STATE PROGRAM SET-ASIDE MATCH REQUIREMENTS – MISSISSIPPI 1:1 REQUIREMENT FOR FFY-2019 STATE PROGRAM MANGEMENT SET-ASIDE 50 I. COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS 51 J. DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM 56 K. CERTIFICATIONS 57 L. ASSISTANCE FOR SMALL AND DISADVANTAGED COMMUNITIES DRINKING WATER GRANT PROGRAM 59

6 I. Introduction

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds; however, in 2014 the State legislature began providing the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2019 to EPA, other state agencies, the state’s public water supplies, and the general public.

7 B. Program Overview

The FFY-2019 DWSRF Cap grant application will request an amount of $11,985,000, the amount allocated to the State of Mississippi. These funds must be used in the time period of July 2019 through June 2024. The FFY-2019 IUP will show in detail the goals (basic, long-term and short-term), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518.

The United Stated Congress passed the America’s Water Infrastructure Act of 2018 which was signed by the President on October 23, 2018. This Act authorizes increased funding of the DWSRF through FFY-2021. This act approves the following:

Extends the maximum loan amortization to 30 years, or 40 years for disadvantaged communities. These maximums may not, however exceed the design life of the project;
Extends repayment initiation to 18 months after project completion;
Codifies Davis-Bacon for DWSRF-funded construction projects;
Makes American Iron and Steel requirements “permanent” until 2023;
States that additional subsidy for state-defined Disadvantaged Communities must be between 6% and 35% of CAP grant (if enough Disadvantaged Communities qualify), up from the current rate of 0% to 30%.

C. Public Input, Review, and Comment Procedures

8 Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding was held at 9:00 a.m. on Thursday, February 28, 2019. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office, and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

A. Basic Goals

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

9 B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.
Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY- 2012 the Program has been using the Local Assistance and Other State Programs set-asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.
Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one- on-one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in

10 the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.

Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.
Meet special funding goals: Executive Order 13858, Strengthening Buy- American Provisions for Infrastructure Projects, may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:

Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following for FFY-2019: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems. c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program.

B. DWSIRLF State Match Funds

As required by the SDWA, the State of Mississippi must match the Cap grant with state funds equaling 20% of the federal allotment. While state match monies are maintained separately from the Fund for accounting purposes, they are still considered to be under the “umbrella” protection of the DWSRF Fund.

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

Using the FFY-2019 EPA Capitalization Grant allotment for Mississippi of $11,985,000 a 20% state match of $2,397,000 is required; this provides an anticipated amount of $14,382,000 for both loans and set-aside activities.

With $2,667,600 ($479,400-4% Admin; $239,700-2% Small Systems Technical Assistance; $1,198,500-10% State Program Management; $750,000-Local Assistance) being utilized for set-aside activities $11,714,400 will remain for loans to Mississippi

12 public water supplies; additionally, unobligated funds from the previous year, anticipated loan repayments and interest earnings (all of which are not classified as state match) will also be available as additional funding sources.

The FFY-2019 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment

With the FFY-2019 Capitalization Grant for Mississippi of $11,985,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.46% state match funds to 79.54 federal grant funds; this requirement will be stated in the grant application.

State Match Requirements

The 2019 State Legislature authorized the issuance of $1,000,000 in bonds to be used as match. Of this amount, $566,135.80 will be used to complete the match for the FFY-2018 EPA Capitalization Grant and $433,864.20 will be used as partial match for the FFY-2019 EPA Capitalization Grant. An additional amount of $1,963,135.80 is required to fully match the FFY-2019 EPA Capitalization Grant.

Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management

Interest Rate Determination

Investment

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

1 2.55% as of May 15, 2019

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2019 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2019, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2019 may obtain an additional award(s) or an increase to a previous FFY-2019 award, if no other eligible systems are evident.

Interest Rate

All loan terms will be at 1.95% annual interest rate, compounded monthly, with a maximum 30-year repayment period, or 40 years for disadvantaged communities. These maximums may not, however exceed the design life of the project. Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

Administration Fee

FFY-2019 Appropriation Special Provisions

The FFY-2019 Capitalization Grant includes subsidization requirements. Subsidization can be in the form of principal forgiveness, negative interest rates, or some combination of the two. The amount of subsidization required by the Capitalization Grant is a minimum of 26% of the Capitalization Grant amount. With a Capitalization Grant of $11,985,000, a minimum subsidy amount of $3,116,100 is required. As in the past, the FFY-2019 federal appropriation includes Davis-Bacon Act requirements, American Iron and Steel requirements, and signage requirements. Appropriate language will be added to all FFY-2019 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement. However, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.

Other Related Issues

15 human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds provided through the FFY-2019 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. To insure that the assistance is dispersed as far as possible, the Board has set a limit ($500,000) which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for FFY-2019, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2018, and the DWSIRLF loan is awarded by September 30, 2019. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The FFY-2019 Priority List expires on September 30, 2019. Projects listed in the FFY-2019 Priority List that do not receive funding by this date will not be funded under the FFY-2019 funding cycle and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2019 DWSIRLF projects is shown in Section VIII of this IUP. To facilitate the use of FFY-2019 federally appropriated funds, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

16 V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The state plans to use $2,667,600 of the FFY-2019 Federal Capitalization grant to support the non-project-related drinking water programs activities. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take any additional set-asides from the FFY-2019 Local Assistance and Other State Programs set-aside, but reserves the right to make revisions to utilize additional funds from this set-aside. The amount of funds used from the FFY-2019 Cap Grant-Local Assistance and Other State Programs assistance set-aside will be $750,000 (6.26%).

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the "Administrative" amount used may be the greater of $400,000 or 4% of the Cap Grant amount. The State plans to use the maximum allowable for "Administrative" purposes from the FFY2019 Cap Grant. Costs beyond this amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments.

The state will continue to exercise its right to reserve the Administrative amounts from previous Cap Grants. Reserving previous years’ 4% administrative set-aside can ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program.

B. Small System Technical Assistance

The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY- 2019 Cap Grant ($239,700) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; Hands-on Operator Training; and Asset Management Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix F to this IUP.

17 C. State Program Management

The state intends to use the full 10% set-aside from the FFY-2019 Cap grant ($1,198,500), as authorized by Section 1452(g)(2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix G to this IUP. . The SDWA-DWSRF amendments in the 2018 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) removed the requirement for the State 1:1 match for the 10% State Program Management set-aside.

D. Local Assistance and Other State Programs

The state intends to use $750,000 (6.26%) of the 15% set-aside amount which is allowed from the FFY-2019 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

address the most serious risk to human health;
are necessary to ensure compliance with the SDWA requirements;
assist systems most in need, on a per household basis.

A. Funding and Ranking Rationale

Projects will be placed on the fundable portion of the Priority List according to both priority ranking and readiness to proceed. The term “ready to proceed” means that all loan application requirements established in the Program regulations are met, and all documents necessary for loan award are approved. If a project cannot reasonably be expected to meet the Priority System deadlines, then the project will not be placed on the current year’s Priority List, but will be placed on the Planning List. It is the Board’s judgment with input from the DWSIRLF staff as to when a project is ready to proceed. Loans will be awarded to projects (within available funds) that are above the funding line on the current year’s Priority List, that have met all Priority System deadlines and are ready to proceed. Additionally, when potential loan recipients are deciding on the needs for their public water supplies, they should ensure that all public health and state safe drinking water laws are followed. If a new state regulation becomes a new requirement of

18 Mississippi’s public water supplies, appropriate planning and design of the project(s) will be necessary in order to receive funding. It is understood that if a proposed project is specifically designed to meet a specific need(s) unrelated to a new requirement, the Board may waive the new requirement. This waiver would be in concurrence with the Bureau of Public Water Supply.

Funding Lists and Bypass Procedure

Should any projects on the FFY-2019 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.

FFY-2019 Green Infrastructure Requirement

The FFY-2019 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio- retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses

19 conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.

Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants

20 5. Subsidization from FFY-2019 Federal Appropriation

The FFY-2019 EPA Capitalization Grant mandates a minimum of 26% of the Grant be provided as additional subsidization to disadvantaged communities. Based on the Grant of $11,985,000, a minimum of $3,116,100 in subsidization is required. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2019 may be awarded to projects eligible for PF in FFY-2019 and FFY-2019.

Disadvantaged Community Program

During FFY-2019, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of both the American’s Water Infrastructure Act of 2018 and the Consolidated Appropriations Act of 2019 for providing subsidy for disadvantaged systems. A minimum of 26% subsidy will be made available and up to 55% can be subsidized to eligible recipients.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

2 https://www.census.gov/quickfacts/fact/table/ms,US/PST045217

21 In the event that a LR declines their loan that includes PF, the released PF may be reallocated to other projects for the present fiscal year that are eligible for PF or the PF may be carried over to projects for the next fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority

22 List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.

Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

23 susceptibility assessment ranking as determined by the DEQ-GPB; and thirdly, within each susceptibility assessment ranking in order of the highest number of connections served by the public water system. Source water classifications will be ranked in the following order: surface water sources; shallow (generally ≤ 300’ in depth) unconfined water wells; shallow (generally ≤ 300’ in depth) confined water wells; and deep confined water wells.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.

24 13. Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

25 3. Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2018, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

27 submittal of the facilities plan. The loan applicant will then be considered to be in violation of the Priority System deadline and the project will be placed on the planning portion of the priority list. If the change is made after adoption of the IUP, funds reserved for this project may be released and made available to other projects.

This deadline also applies to all projects competing for released funds during FFY-2019 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2019 IUP.

By May 1, 2019, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2019 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2019 IUP.
By August 1, 2019, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY-2019 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2019 IUP.

28 VII. FFY-2019 Priority List DRAFT Fiscal Year - 2019 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List Category II: Previous Year Certified Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

Natchez, City of Water System Improvements 39121 4001 15792 $500,000 $2,499,980 $2,499,980

Jayess-Topeka Tilton WA Replace 2" Water Mains with 6" 39641 1426 3753 $42,063 $168,250 $2,668,230

West Marion WA New Well/Energy Efficiency Electrical Equipment 39483 1069 1800 $252,175 $720,500 $3,388,730

Grenada, City of Upgrade Water Treatment Systems 38901 1005 21512 $500,000 $13,119,000 $16,507,730

Eupora, City of Well, Elev. Tank, H2O line, Pump Station, Creek Crossing 39744 677 5564 $500,000 $3,733,000 $20,240,730

Magnolia Rural Water Assn. Water Treatment Facility and System Improvements 39652 636 3395 $500,000 $2,740,750 $22,981,480

North Benton County WA Construct Media Filtration Treatment Facilities 38603 257 350 $292,500 $650,000 $23,631,480

Grenada-Bogue Basin/Gore Springs 400 G. Well/200,000 G. Tank/Other Incidentals Needed 38901 249 1806 $500,000 $2,785,980 $26,417,460 Category III: Primary Drinking Water Standards Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

Jackson, City of Treatment & Dist. Improvements 39201 37222 174382 $500,000 $13,000,000 $39,417,460

Braxton, Town of Construction of New Well 39044 372 775 $0 $819,000 $40,236,460

Friars Point, Town of Distribution System Improvements 38631 357 1200 $500,000 $1,473,600 $41,710,060

Funding Line: $45,215,883

Category IV: One Well Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

West Jackson County UD Water System Improvements 39564 1400 25000 $0 $5,000,000 $46,710,060 Category V: Pressure Deficiencies Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

Aberdeen, City of 400 GPM Well/100,000 Gal. Elev. Tank/Rehab Lines 39730 2316 6415 $370,487 $1,481,949 $48,192,009

Cedar Grove-Harmony Water Assn. Water Distribution Improvements 39429 672 1500 $252,000 $1,008,000 $49,200,009

Young's Water Sewer District New Well 38922 226 1750 $265,393 $758,265 $49,958,274 Category VI: Source Water Protection Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

Ocean Springs, City of Replace Water Mains/Tie-in with WJCUD 39566 196 21000 $0 $8,690,000 $58,648,274 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

Short Coleman Park Water Assn. Repaint 2 Elevated Tanks/250,000/500,000 Gal. 38852 3183 5004 $84,287 $561,915 $59,210,189

Jackson County Utility Authority Distribution System Improvements 39567 1732 43680 $0 $6,250,000 $65,460,189

Bear Creek Water Assn., Inc. Replace Tank With New 2,000,000 Gal Tank 39046 1534 45000 $0 $4,890,000 $70,350,189

S. E. Greene Water Authority Rehab Treatment Facility/Water Line Extension 39452 895 1572 $100,578 $670,519 $71,020,708 Category VIII: Back-up Water Supply Sources Projects

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

Glendale Utility District Installation of New Automated Meters 39401 4087 3800 $0 $367,000 $71,387,708 Category IX: Existing Facilities Upgrade (Meeting Primary Standards)

Project Project Description Zip Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Code Points Population

Requested

Alcorn Co. Water Association 300,000 Gal. Storage Tank/Upgrade Facilities 38834 1187 6500 $318,275 $1,273,101 $72,660,809

The “Funding Line” indicates the funds which are anticipated to be available for loans in FFY-2019 based on the funds authorized and provided by the 2019 Legislature. If total State match is obtained funding available in FFY-2019 should equal $45,215,883; ** Currently, the requirements of additional subsidization are unknown. Once the final federal appropriation with related requirements is made, additional modifications will be made to the priority system and ranking to integrate the federal requirements as necessary. Funding Sources PF – Principal Forgiveness – Method of Subsidization the state has elected to use.

30 DRAFT Fiscal Year - 2019 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2018, deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.)

Category II: Previous Year Certified Projects

Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Brooklyn Utility Association Water System Improvements 39425 1030 2550 $148,350 $989,000 $989,000 Poorhouse Water Association Water System Improvements 38902 1022 4550 $335,300 $1,341,200 $2,330,200

Category III: Primary Drinking Water Standards Projects Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Bay Springs, City of Water System Improvements - Install New Water Lines 39422 2571 2100 $244,221 $542,714 $2,872,914

Category VI: Source Water Protection Projects Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Lumberton, City of Replace Existing Water Lines/Mains 39455 273 2200 $500,000 $3,453,197 $6,326,111

Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Batesville, City of Installation of Water Lines 38606 31582 7600 $31,250 $125,000 $6,451,111 Batesville, City of Installation of Water Lines 38606 26319 7600 $37,500 $150,000 $6,601,111 Batesville, City of Rehab/Replacement of Existing Facilities 38606 14356 7600 $68,750 $275,000 $6,876,111 Batesville, City of Rehab Existing Facilities 38606 11279 7600 $87,500 $350,000 $7,226,111 Batesville, City of 500,000 Gallon Elevated Tank 38606 5264 7600 $187,500 $750,000 $7,976,111 McLain, Town of New 8" Val on Existing Mains/Meters/1,000 Ft. Main 39456 1466 441 $63,950 $142,111 $8,118,222 Puckett, Town of Rehab/Painting Elevated Tank 39151 1167 660 $28,800 $192,000 $8,310,222

31 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Batesville, City of Rehab Existing Infrastructure 38606 7896 7600 $125,000 $500,000 $8,810,222 Batesville, City of New 750 GPM Well 38606 7896 7600 $125,000 $500,000 $9,310,222

Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Batesville, City of Rehab Existing Facilities 38606 9629 7600 $102,500 $410,000 $9,720,222 Mount Olive, Town of Replacement of Water Lines 39119 2348 1000 $80,962 $231,320 $9,951,542 Renshaw Water Assn., Inc. New Generator 39194 1897 1000 $15,487 $34,415 $9,985,957 Alcorn Co. Water Association Renovate Elevated Tanks/Replace Water Lines 38834 1155 6500 $218,230 $872,920 $10,858,877 Mendenhall, City of New 500 GPM Well/250,000 Gal. Tank/Treatment Plant 39114 531 2504 $395,115 $2,634,100 $13,492,977

Category XI: Secondary Drinking Water Standards Projects Project Project Description Zip Code Priority Service Area Eligible PF Loan Amount Statewide Cum. $

Points Population Amount Requested

Central Water Association Install New Systematic ARM System 39350 4678 22000 $358,750.00 $1,435,000 $14,927,977

32 VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2019 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2019 IUP and funding projects shown on the FFY-2019 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2019.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2019 DWSRF Work Plan.

Appendices

34 Appendix A

FFY-2019 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program w/ FFY-2018 EPA Cap Grant Funds October 1, 2019

FFY-2019 Funding (Federal and State)

**Required State Match + $2,397,000 **Emergency Fund remaining (amount of any board-approved emergency fund remaining available to be used as match) + $0 FFY2019 Cap Grant + $11,985,000 Total Federal and State Funds available in FFY-2019 for Loan Obligations & Set-asides:

$14,382,000 FFY-2019 Cap Grant Set-Asides (estimated based on maximum allowable amount or historical amounts)

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (SDWA-DWSRF amendment to 2017 WIIN Act) + $479,400 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $239,700 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~6.26%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $1,198,500 Total FFY-2019 Cap Grant Set-Asides:

$2,667,600

Total Federal and State Funds Anticipated to be Available in FFY-2019 + $14,382,000 Less FFY-2019 Set-asides: - ($2,667,600) Total Federal & State Funds Anticipated to be Available for Loan Obligation in FFY-2019:

$11,714,400 2019 DWSRF Funds (Anticipated)

Total Federal & State Funds Anticipated to be Available for Loan Obligation in FFY-2019: + $11,714,400 Unobligated Funds Carried Over from FFY-2018 + $20,152,651 Loan Repayments To Be Deposited (Anticipated) 10/1/18 - 9/30/19 + $13,306,010 Interest on Fund To Be Deposited (Anticipated) 10/1/18 - 9/30/19 + $1,042,822 2019 Loan Increase Reserve ($1.0m) - ($1,000,000) Total Funds Available for Loan Awards in FFY-2019 (Anticipated)

$45,215,883

35 FFY-2018 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2018 FFY-2018 Funding (Federal and State)

**2017 Legislated State Match (The 2017 State Legislature did not appropriate match funds for the FFY2018 EPA Cap Grant; $1,706,800 is required)(The 2018 State Legislature authorized $3.0 Million in Bonds as match for the FFY2018 & FFY2019 Cap Grants; $1,174,735.80 will be used with other existing match to obtain all of the FFY2018 Cap Grant) + $1,174,735.80 **2017 Emergency Funds remaining (The remainder of the 2017 Emergency Fund transfers not used for State match of the FFY2016 Cap Grant = $32,064.20) + $32,064.20 **2017-2018 State match: (An additional $500,000 was authorized by the Board from the Emergency Fund; It was anticipated that with the funds carried over from 2016 and the bond funds provided by the 2018 Legislature that all the FFY2018 EPA Cap Grant will be drawn down by the end of 2018) + $500,000.00 FFY2018 Cap Grant: (The FFY2018 Federal Cap Grant awarded was $8,534,000; needed State match = $1,706,800. These funds will be drawn down when the 2018 Bond funds are available) + $8,534,000.00

Total Federal and State Funds Available in 2018 for Loan Obligations & Set-asides $10,240,800.00

FFY-2018 Cap Grant Set-Asides No FFY2018 Cap Grant Funds or set-asides are shown in this report, these funds will normally not be available until QTR1 of FFY2019. The FFY2017 Cap Grant set-asides shown below became available in QTR2 of FFY2018 when the Board authorized an additional $500,000 from the Emergency Fund. DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (SDWA-DWSRF amendment to 2017 WIIN Act) + $400,000 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $170,680 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~8.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $853,400 Total FFY-2018 Cap Grant Set-Asides

$2,174,080

Total Federal and State Funds Available in FFY-2018 + $10,240,800 Less FFY-2018 Set-asides - ($2,174,080) Total Federal and State Funds Available for Loan Obligation in FFY-2018

$8,066,720 FFY2018 DWSRF Loan Funds

FFY2018 Federal and State Funds Available for Loan Obligation

$8,066,720 Unobligated Funds Carried Over from FFY-2017 + $13,679,500 Loan Repayments Deposited (Actual) 10/1/17 - 9/30/18 + $14,515,648 Interest on Fund Deposited (Actual) 10/1/17 - 9/30/18 + $1,137,625 FFY2018 Loan Decreases (actual) 10/1/17 - 9/30/18 + $6,030,131 FFY2018 Loan Increases (actual) 10/1/17 - 9/30/18 - ($481,502) FFY2018 Funds Available for Loan Awards $42,948,122 Loan Awards made during FFY2018 (Initial) - ($22,795,471) Carryover Funds for Projects funded in FFY-2018

$20,152,651

Mississippi received the entire FFY2018 Cap grant

36 Appendix B

Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2018 Set-asides Federal 1Q FFY-18 2Q FFY-18 3Q FFY-18 4Q FFY-18 Total Administrative $121,070 $121,070 $121,070 $121,070 $484,280 Small Sys. Tech Assist. $59,785 $59,785 $59,785 $59,785 $239,140 State Program Mgmt. $298,925 $298,925 $298,925 $298,925 $1,195,700 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $667,280 $667,280 $667,280 $667,280 $2,669,120

FFY-2019 Set-asides Federal 1Q FFY-19 2Q FFY-19 3Q FFY-19 4Q FFY-19 Total Administrative $119,850 $119,850 $119,850 $119,850 $479,400 Small Sys. Tech Assist. $59,925 $59,925 $59,925 $59,925 $239,700 State Program Mgmt. $299,625 $299,625 $299,625 $299,625 $1,198,500 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $666,900 $666,900 $666,900 $666,900 $2,667,600

Appendix C

Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2018

FFY-2018 Cap Grant No. 1 of 4 1 st Quarter FFY-2018 $2,989,250 $2,989,250 FFY-2018 Cap Grant No. 2 of 4 2nd Quarter FFY-2018 $2,989,250 $5,978,500

FFY-2018 Cap Grant No. 3 of 4 3rd Quarter FFY-2018 $2,989,250 $8,967,750

FFY-2018 Cap Grant No. 4 of 4 4th Quarter FFY-2018 $2,989,250 $11,957,000

FFY-2019

FFY-2019 Cap Grant No. 1 of 4 1 st Quarter FFY-2019 $2,996,250

$2,996,250

FFY-2019 Cap Grant No. 2 of 4 2nd Quarter FFY-2019 $2,996,250

$5,992,500

FFY-2019 Cap Grant No. 3 of 4 3rd Quarter FFY-2019 $2,996,250

$8,988,750

FFY-2019 Cap Grant No. 4 of 4 4th Quarter FFY-2019 $2,996,250

$11,985,000

38 Appendix D

Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount FFY-2018

1 st Quarter FFY-2018 $2,989,250 $2,989,250 2nd Quarter FFY-2018 $2,989,250 $5,978,500

3rd Quarter FFY-2018 $2,989,250 $8,967,750

4th Quarter FFY-2018 $2,989,250 $11,957,000

FFY-2019

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount 1 st Quarter FFY-2019 $2,996,250

$2,996,250

2nd Quarter FFY-2019 $2,996,250

$5,992,500

3rd Quarter FFY-2019 $2,996,250

$8,988,750

4th Quarter FFY-2019 $2,996,250

$11,985,000

39 Appendix E

Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS The current technical assistance contracts expire on June 30, 2019.

Prior to the expiration of the existing contracts an Invitation for Bids (IFB) for the technical assistance contracts will be sent out to potential contractors. All proposals will be evaluated by the Department and recommendations for award will be presented to the Board (at a regularly scheduled Board meeting); all contracts will be awarded.

The contracts for technical assistance are currently awarded to:

Small Systems Technical Assistance (long-term and intermediate technical assistance) – Mississippi State University Extension Service; Board Management Training Monitoring and Coordination for Water System Officials - Mississippi State University Extension Service; Hands-On Operator Training - Mississippi Rural Water Association, Inc.; PEER Review Program for Public Water Supplies - Mississippi State University Extension Service; Asset Management – Mississippi Rural Water Association, Inc.

PROGRAM ACTIVITIES The technical assistance program consists of five major categories of activities that will be accomplished through contracts with qualified organizations that are experienced in providing the type of support required by each activity. These categories may be updated and/or revised as a result of work plan reviews that will be conducted annually during the life of the program. Amendments will be submitted whenever activities or budgets change and when required to extend the term of the work plan.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

42 Coordination and Monitoring of Board Management Training for Water System Officials:

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

43 system operator. The hands-on training will include a comprehensive approach (lecture plus physical, hands-on sessions with equipment) for all operators attending the training. Trainings are to include equipment/props pertinent to the training topic(s) as a part of the training discussion.

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

44 Asset Management Training:

AGENCY RESPONSIBILITIES

The MSDH will conduct Small Systems Technical Assistance Set-aside activities through Board approved contracts with providers who will be selected following procedures of the State of Mississippi’s Department of Finance and Administration Public Procurement Review Board. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional FTE requirement is anticipated for state agencies to implement the provisions of this set-aside.

45 Appendix F

Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After review of the Draft FFY-2019 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft FFY-2019 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2019 IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2019 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% ($1,198,500) of the FFY-2019 DWSRF capitalization grant as a set- aside for State Program Management activities of the PWSS Program. The reserved amount will offset the salary, fringe and indirect cost expenses of a portion of the PWSS personnel positions in the PWSS Program.

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects thirty-eight (38) FTEs will be required to implement the FFY-2019/2019 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds

46 will support public water system supervision program activities as required to maintain state primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

Non-primacy Requirements

47 Capacity Development (CD) Program

Unregulated Contaminant Monitoring Rule

Operator Certification

48 Source Water Assessment Program

On an annual basis, MSDH reports to EPA on Source Water Assessment Program implementation activities. Beginning December 1, 2009, all groundwater systems began either Source Water Monitoring or 4-Log Compliance Monitoring. Additionally, Mississippi is required to conduct routine sanitary surveys of all public water systems and identify significant deficiencies. The Rule also requires systems to take corrective actions for significant deficiencies and for source water fecal contamination.

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

Information Management and the Safe Drinking Water Inspection System (SDWIS)/Fed Reporting These ongoing activities include: overseeing and enforcing requirements of data management and the Safe Drinking Water Inspection System (SDWIS) /Fed reporting; reporting the state’s PWSS inventory at least annually to SDWIS/Fed; reporting the state’s violations and enforcement actions at least quarterly; participating in EPA/state data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

49 SCHEDULE FOR COMPLETING ACTIVITIES The schedule for completing State Program activities under this work plan will be the schedule established by dates entered in the “Date Due” column of the MSDH PWSS Work plan.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

50 Appendix G

Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contract for coordination of the decommissioning/properly closing inactive water wells/open holes was bid and awarded; the current contract runs until June 30, 2019. A new contract for the decommissioning/properly closing inactive water wells/open holes is currently being developed in accordance with new State contracting requirements.

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Mississippi Rural Water Association (MsRWA).

The second contract (closure contract) – is currently being developed in accordance with new State contracting requirements.

PROGRAM ACTIVITIES

The activities described herein will be accomplished through a four part process: Identification of wells / holes needing proper abandonment for the protection of aquifers and

51 the overall public health; communication with public water supply that owns well/hole to encourage proper abandonment; mobilization of well contractor to identified site to perform the work; and confirmation that the work has been completed.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

52 Appendix H

Mississippi State Program Management Set-Aside Match Requirements - Mississippi 1:1 Requirement

On December 16, 2016, the Water Infrastructure Improvements for the Nation Act (WIIN Act) of 2018 became law. Portions of the WIIN Act amended the Safe Drinking Water Act §1452 ( 42 U.S.C. 300j-12); the 2018 WIIN Act amended the Drinking Water State Revolving Fund (DWSRF)-Related Safe Drinking Water Act (SDWA) by eliminating the requirement that a 1:1 match be provided by the State for the 10% State Program Management Activities set-aside of the DWSRF Capitalization Grant.

53 Appendix I

Coordination Schedules for Jointly Funded Projects FFY-2019 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

These schedules are designed to help assure coordination between the DWSIRLF Program and the Appalachian Regional Commission (ARC) Grant Program, Community Development Block Grant (CDBG) Program, and Rural Utilities Service (RUS) Loan/ Grant Program. These schedules are, however, subject to change due to the timing of federal appropriations or program changes. Date(s) Schedule Item(s)/Deadline(s) ARC CDBG RUS* May 1, 2019 Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2019, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1, 2019 All FY-2020 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2019** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding.** Oct, 2019 MS State Dept. of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY-2019 ARC funding. MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-2019 DWSIRLF funding. MS State Dept. of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2020 CDBG funding. MS State Dept. of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which indicate anticipated FY-2020 RUS funding Nov 15, 2019 MARO completes review of FY-2019 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A)

ARC CDBG RUS Nov 15-30, 2019 MARO notifies local Planning & Development Districts of projects that have been selected for the P1 (fundable priority list). MARO will copy MSDH on these notification letters if grantee has indicated that it is pursuing DWSIRLF loan funds for the project. MSDH will not award a DWSIRLF loan until this notification from MARO is provided. (N/A) (N/A) Oct 18, 2019 (N/A) CDBG program application workshops.*** (N/A) Nov, 2019 MSDH advertises Draft DWSIRLF FFY-2020 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY- 2020 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2020 Intended Use Plan for public comment. Dec 30, 2019 Deadline for all FY-2020 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A) Dec, 2019 Board adopts FFY-2020 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2020 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2019 until 8/2020 Board adopts FFY-2020 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20, 2019 (N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan, 2019 MSDH notifies MARO of projects included on final FFY-2019 Priority List that anticipate receiving FFY-2019 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2019 Priority List that anticipate receiving FFY-2019 CDBG funds.

MSDH notifies RUS of projects included on the final FFY-2019 Priority List that anticipate receiving FFY-2019 RUS funds.

ARC CDBG RUS Feb 1, 2019 MARO sends project applications to ARC- Washington to start final funding approval process. (N/A) (N/A) Feb 16, 2019 (N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2019 until 4:00 p.m. on 2/17/2019. (N/A) Feb- Jun, 2019 ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2019. (N/A) (N/A) Mar, 2019 (N/A) MDA provides notification to MSDH that complete CDBG applications have been received.

(N/A) May 1, 2019** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs.** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

ARC CDBG RUS May, 2019 (N/A) MDA provides notification to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. (NOTE: MSDH will not award a DWSIRLF loan until this notification from MDA is provided.) (N/A) Jun, 2019 MSDH provides notification to MARO that complete DWSIRLF loan applications have been received. MSDH provides notification to MDA that complete DWSIRLF loan applications have been received. MDA provides conformation to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. MSDH provides notification to RUS that complete DWSIRLF loan applications have been received. (Upon Grant Award) MARO provides notification to MSDH that ARC awards have been made. MDA provides notification to MSDH that CDBG awards have been made. RUS provides notification that RUS awards have been made Aug 1, 2019** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** May-Sep, 2019 Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the ARC award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the CDBG award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the RUS award amount to be applied to DWSIRLF eligible costs. If loan applicant desires DWSIRLF loan award prior to RUS award, loan applicant must provide MSDH with a copy of letter from RUS which states their project will be funded only contingent upon receipt of DWSIRLF matching funds. MSDH will not award a DWSIRLF loan until that notification from RUS is provided.

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year, and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year, and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: 844-325-7034.

** FFY-2019 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

58 -

Appendix J

Drinking Water Systems Emergency Loan Fund Program

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

59 -

Appendix K

Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.

60 -

The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).
The state certifies that prior to adding any new projects to the “FFY-2019 and After Planning List” for the purpose of funding such a project during FFY-2019 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

61 -

Appendix L

Assistance for Small and Disadvantaged Communities Drinking Water Grant Program

The Water Infrastructure Improvements for the Nation Act of 2016 authorizes the Environmental Protection Agency (EPA) to award grants to assist disadvantaged communities and small communities with meeting the requirements of the Safe Drinking Water Act (SDWA).

The grant program is designed to help public water systems in underserved communities meet and comply with SDWA requirements. The grant program will provide assistance to underserved communities that have no household drinking water or wastewater services or are served by a public water system that violates or exceeds and Maximum Containment Level, treatment technique, or action level.

A small or disadvantaged community is one:

That the state determines to be a disadvantaged community under SDWA section 1452(d)(3) or may become a disadvantaged community as a result of carrying out a project of activity, or
With a population of less than 10,000 individuals that does not have the capacity to incur debt sufficient to finance a project to comply with the SDWA.

Projects eligible for assistance include those to return a public water system to compliance; efforts that benefit disadvantaged communities on a per household basis; programs to provide household water quality testing, including testing for unregulated contaminants; and activities necessary for a sate to respond to a contaminant.

The grant program requires a match of 45% in the form of monetary funding, services, materials, supplies, or other in-kind services. States will need to develop a robust list of fundable projects that meet the requirements of the grant program to receive funding. States will consult with EPA regional offices on their project and activity lists prior to final selection.

The allotment for Mississippi is $454,000.

Part 12 Part 12: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 12 Part 12: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 12: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FINAL FFY-2020 INTENDED USE PLAN

Approved by the board on March 20, 2020

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

3 - FINAL STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 12: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2020 INTENDED USE PLAN TABLE OF CONTENTS

I. INTRODUCTION

State of Mississippi’s Drinking Water State Revolving Fund
Program Overview
Public Input, Review, and Comment Procedures

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS

IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF)

PROGRAM

Basic Goals
Long-Term DWSIRLF Goals
Short-Term DWSIRLF Goals

III. STRUCTURE OF MISSISSIPPI DWSIRLF 9 A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:
Set-aside Accounts:

DWSIRLF State Match Funds
Drinking Water Systems Emergency Loan Fund (DWSELF)

IV. FINANCIAL STATUS OF THE DWSIRLF 10 A. Source and Use of Fund

Federal Allotment
State Match Requirements
Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management
Interest Rate Determination
Investment

C. Financial Terms of Loans

Funding Limit
Interest Rate
Administration Fee
FFY-2020 Appropriation Special Provisions
Other Related Issues

4 -
5 -
1. SET-ASIDE ACTIVITIES 15
2. Administration
3. Small System Technical Assistance
4. State Program Management
5. Local Assistance and Other State Programs

VI. PRIORITY SYSTEM 17 A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure
FFY-2020 Green Infrastructure Requirement
Loan Decreases
Match for Special Appropriations Project (SPAP) Grants
Subsidization from FFY-2020 Federal Appropriation

Priority System Categories
Priority Ranking Criteria
Priority System Deadlines

VII. FFY-2020 PRIORITY LIST 27 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 31

APPENDICES 32 A. FFY-2020 Anticipated Available Funds for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSRF) Program 33 B. PROJECTED SCHEDULE OF OUTLAYS 35 C. PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE 36 D. PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT 37 E. MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET- ASIDE WORK PLAN 38 F. MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN 43 G. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN 48 H. MISSISSIPPI STATE PROGRAM SET-ASIDE MATCH REQUIREMENTS – MISSISSIPPI 1:1 REQUIREMENT FOR FFY-2020 STATE PROGRAM MANGEMENT SET-ASIDE 50 I. COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS 51 J. DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM 56 K. CERTIFICATIONS 57 L. ASSISTANCE FOR SMALL AND DISADVANTAGED COMMUNITIES DRINKING WATER GRANT PROGRAM 58

6 I. Introduction

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds; however, in 2014 the State legislature began providing the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2020 to EPA, other state agencies, the state’s public water supplies, and the general public. B. Program Overview

The amount of the FFY-2020 Cap Grant from EPA for Mississippi is not known at this time; therefore, the grant amount received by Mississippi in FFY-2019 will be used in this IUP for planning purposes until the actual Cap Grant amount is known. A Cap Grant amount of $11,853,000 will be used for these purposes. The FFY-2020 DWSRF Cap grant application will request an amount of $11,853,000 or the actual amount allocated to the State of Mississippi. These funds must be used in the time period of July 2020 through June 2025. The FFY-2020 IUP will show in detail the goals (basic, long-term and short- term), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Ulysses Conley, Program Support Specialist, at (601) 576-7518.

Extends the maximum loan amortization to 30 years, or 40 years for disadvantaged communities. These maximums may not, however exceed the design life of the project;
Extends repayment initiation to 18 months after project completion;
Codifies Davis-Bacon for DWSRF-funded construction projects;
Makes American Iron and Steel requirements “permanent” until 2023;
States that additional subsidy for state-defined Disadvantaged Communities must be between 6% and 35% of CAP grant (if enough Disadvantaged Communities qualify), up from the current rate of 0% to 30%.

C. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding is scheduled for 9:00 a.m. on Friday March 20, 2020. A transcript of the oral proceeding oral proceeding, recording any comments and recommended solutions, will be submitted to EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office, and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

A. Basic Goals

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

9 B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.
Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY-2012 the Program has been using the Local Assistance and Other State Programs set- asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.
Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one-on- one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the

10 DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.

Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.
Meet special funding goals: Executive Order 13858, Strengthening Buy-American Provisions for Infrastructure Projects, may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a more timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Types of Eligible Projects:

Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference Appendix A of the DWSIRLF Regulations.

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following for FFY-2020: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems. c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program.

B. DWSIRLF State Match Funds

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The DWSELF Fund contains state monies that are utilized only for public water supply loans which meet the definition of emergency. For further information see Appendix J.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

Using the FFY-2020 EPA Capitalization Grant allotment for Mississippi of $11,853,000 a 20% state match of $2,370,600 is required; this provides an anticipated amount of $14,223,600 for both loans and set-aside activities.

With $2,646,480 ($474,120-4% Admin; $237,060-2% Small Systems Technical Assistance; $1,185,300-10% State Program Management; $750,000-Local Assistance) being utilized for set-aside activities, $11,606,488 will remain for loans to Mississippi public water supplies; additionally, unobligated funds from the previous year, anticipated

12 loan repayments and interest earnings (all of which are not classified as state match) will also be available as additional funding sources.

The FFY-2020 “Set-aside” use for the standard Cap grant is outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found at the end of this IUP.

Federal Allotment

With the FFY-2020 Capitalization Grant for Mississippi of $11,853,000 the state match requirement to federal grant funds (cash draw ratio) will be 20.46% state match funds to 79.54% federal grant funds; this requirement will be stated in the grant application.

State Match Requirements

The 2020 State Legislature authorized the issuance of in bonds to be used as match for the FFY-2020 EPA Capitalization Grant. An amount of $2,369,000 is required to fully match the FFY-2020 EPA Capitalization Grant.

Loan Increase Reserve

B. Financial Planning Process

Efficient Bond Management

Interest Rate Determination

Investment

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2020 a maximum loan amount of $5,000,000 per borrower has been set by the Board. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2020, no more than one loan per borrower will be allowed. At the end of the fiscal year, in the event that funds are available, systems previously receiving an award during FFY-2020 may obtain an additional award(s) or an increase to a previous FFY- 2020 award, if no other eligible systems are evident.

Interest Rate

Administration Fee

FFY-2020 Appropriation Special Provisions

The Federal 2020 appropriations bill has not been finalized and the final EPA FFY- 2020 Cap Grant allotment amounts and any additional federal requirements are not known. It is anticipated that subsidization requirements will be required for the FFY-2020 Cap Grant; the subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The anticipated amount of subsidization is expected to be a minimum of 20% of the Cap Grant amount. If the FFY-2020 Cap Grant is $11,853,000 the subsidization amount would be $2,369,000 (20%) of the Cap Grant amount. Furthermore, all loans made with all or part FFY-2020 federal appropriation funds will include the Davis-Bacon Act, American Iron and Steel, and signage requirements. Appropriate language will be added to all FFY-2020 loan agreements identifying the additional responsibilities for loan recipients. “Green Infrastructure” requirements are not expected to be an appropriation requirement. However, the Program will continue to encourage those types of projects to seek funding from the DWSIRLF.

Other Related Issues

a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds provided through the FFY-2019 federal appropriation, the DWSIRLF will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. To insure that the assistance is dispersed as far as possible, the Board has set a limit ($500,000) which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for FFY-2020, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment and distribution facilities.

15 b. Project Costs Eligibility: Eligible/allowable project costs will include those costs that are eligible, reasonable, necessary, and allocable to the project, within the established project scope and budget, in conformance with the DWSIRLF regulations and approved by MSDH.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice To Proceed” was issued on or after October 1, 2020, and the DWSIRLF loan is awarded by September 30, 2021. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The FFY-2020 Priority List expires on September 30, 2020. Projects listed in the FFY-2020 Priority List that do not receive funding by this date will not be funded under the FFY-2020 funding cycle and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2020 DWSIRLF projects is shown in Section VIII of this IUP. To facilitate the use of FFY-2020 federally appropriated funds, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

16 will be included in the Annual Report. The state has elected not to take any additional set- asides from the FFY-2020 Local Assistance and Other State Programs set-aside, but reserves the right to make revisions to utilize additional funds from this set-aside. The amount of funds used from the FFY-2020 Cap Grant-Local Assistance and Other State Programs assistance set-aside will be $750,000 (6.26%).

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the "Administrative" amount used may be the greater of $400,000 or 4% of the Cap Grant amount. The State plans to use the maximum allowable for "Administrative" purposes from the FFY2020 Cap Grant. Costs beyond this amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments.

B. Small System Technical Assistance

The state will use the Small Systems Technical Assistance (2%) set-aside from the FFY- 2020 Cap Grant ($237,060) to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; Hands-on Operator Training; and Asset Management Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set-Aside Work Plan included as Appendix F to this IUP.

C. State Program Management

The state intends to use the full 10% set-aside from the FFY-2020 Cap grant ($1,185,100), as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix G to this IUP.

The SDWA-DWSRF amendments in the 2018 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) removed the requirement for the State 1:1 match for the 10% State Program Management set-aside.

17 D. Local Assistance and Other State Programs

The state intends to use $750,000 (6.26%) of the 15% set-aside amount which is allowed from the FFY-2020 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment.

VI. Priority System

address the most serious risk to human health;
are necessary to ensure compliance with the SDWA requirements;
assist systems most in need, on a per household basis.

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure

Should any projects on the FFY-2020 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above

18 the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.

FFY-2020 Green Infrastructure Requirement

The FFY-2020 federal appropriation is not expected to require that a percentage of the funds appropriated for the Revolving Funds be designated for projects that exhibit the elements of green infrastructure, water efficiency improvements, energy efficiency improvements or other environmentally innovative projects. However, projects that wish to be classified in the following elements will be reported as green infrastructure to the EPA through its “Project and Benefits Report Database” and noted in the future annual report. Projects may exhibit one or more of the “green” elements and the details of the project’s “green” content will be identified in the business case required for each project if the recipient so chooses.

Green infrastructure projects include a wide array of practices at multiple scales; green infrastructure projects will manage wet weather and will maintain and restore natural hydrology by infiltrating, evapotranspiring and harvesting and using storm water. On a regional scale, green infrastructure is the preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. On the local scale, it may consist of site- and neighborhood-specific practices, such as bio-retention, trees, green roofs, permeable pavements and cisterns.
Water efficiency projects are designed to use improved technologies and practices to deliver equal or better services with less water. It encompasses conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future.
Energy efficiency projects are designed to use improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficient way, and/or produce/utilize renewable energy.
Environmentally innovative projects include projects that demonstrate new and/or innovative approaches to deliver services or manage water resources in a more sustainable way.

19 for the classification request. Guidance for establishing a “business case” is available to assist potential loan recipients in preparation of the documentation.

Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants

Subsidization from FFY-2020 Federal Appropriation

The FFY-2020 EPA Capitalization Grant mandates a minimum of 26% of the Grant be provided as additional subsidization to disadvantaged communities. Based on the Grant of $11,853,000, a minimum of $2,370,600 in subsidization is required. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two year time period. Subsidization for FFY-2020 may be awarded to projects eligible for PF in FFY-2020 and FFY-2020.

Disadvantaged Community Program

During FFY-2020, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of both the American’s Water Infrastructure Act of 2018 and the Consolidated Appropriations Act of 2020 for providing subsidy for disadvantaged systems. A minimum of 26% subsidy will be made available and up to 55% can be subsidized to eligible recipients.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

Projects in Category I are funded each year to the extent funds are available. Projects in Categories II through XI are ranked in priority order; that is, all Category II projects are ranked higher than Category III projects, etc. Ranking is established in like manner through all remaining categories. Adjustments are made as necessary to comply with small community set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a) (2) of SDWA]. As stated previously, the order of Categories II - XI is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section C.

Category I - Segmented Projects This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project, and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well or an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water- related threats to public health in Mississippi
Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems Source Water Assessment Plan Report (SWAPR) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (DEQ-GPB). If the public water system has not received its SWAPR from the DEQ-GPB yet, or has documentation that may change its SWAP, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the DEQ-GPB before the project will be deemed eligible.

Category VII - System Capacity Expansion To Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.

Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites, or add new facilities to existing well or treatment plants.
Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category, and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi ($43,567) to the MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5.

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs

25 The MSDH, with the Board’s approval, has contracted with Community Resources Group (CRG) to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Participation in the EPA or MSDH Drinking Water Needs Survey Any water system that participated in the most recent MSDH Public Water Supply Improvements Needs Survey or the EPA Drinking Water Needs Survey by satisfactorily completing and returning this form to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Needs Survey Points = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this

26 is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 1, 2019, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

This deadline also applies to all projects competing for released funds during FFY- 2020 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2019 IUP.

By June 1, 2020, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2020 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2019 IUP.
By August 1, 2020, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY- 2019 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2019 IUP.

27 VII. FFY-2020 Planning List FINAL Fiscal Year - 2020 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $ Code Points Population Amount Project Requested City of Hattiesburg Rehab. Water Treatment No. 1 39403 4706 45951 $500,000 $0 $4,601,677 $4,601,677 Combined Utilities Distribution System Improvements 39452 1882 6126 $0 $0 $1,100,000 $5,701,677 Combined Utilities Water Well and Elevated Storage Tank 39452 1294 6126 $0 $0 $1,600,000 $7,301,677 Town of Roxie New Water Well 39661 1096 480 $91,000 $0 $260,000 $7,561,677 Poorhouse Water Assn Water System Improvements 38902 1022 4550 $335,300 $0 $1,341,200 $8,902,877 Kipling Water Association Water Treatment System Improvements 39328 941 2860 $691,884 $0 $1,537,520 $10,440,397 S E Greene Water Authority Rehab Treatment Facility/Water Line Extension 39452 895 1572 $100,578 $0 $670,519 $11,110,916 Brooklyn Utility Association Water System Improvements 39425 688 2550 $222,000 $0 $1,480,000 $12,590,916 Cedar Grove-Harmony Water Assn Water Distribution Improvements 39429 672 1500 $151,200 $0 $1,008,000 $13,598,916 Friars Point, Town of Distribution System Improvements 38631 357 1200 $500,000 $0 $1,473,600 $15,072,516 Chunky, Town of New Well and Repaint Standpipe 39323 301 305 $203,389 $0 $813,555 $15,886,071 North Benton County WA Construct Media Filtration Treatment Facilities 38603 257 350 $292,500 $0 $650,000 $16,536,071 Grenada-Bogue Basin/Gore Springs 400 G.Well/200,000 G. Tnk/Other Incidentals 38901 249 1806 $500,000 $0 $2,785,980 $19,322,051 Senatobia Lake Estates, Inc. New Well/4000 Gal. Pressr Tank/Chem. Feed/w 38668 101 300 $77,550 $0 $517,000 $19,839,051 Category IV: One Well Projects Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $ Code Points Population Amount Project Requested Improve Water Association New 600 GPM Water Well 39478 2634 3000 $168,000 $0 $480,000 $20,319,051 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $ Code Points Population Amount Project Requested McLain, Town of New 8" Val on Existn Mains/Meters/1000 Ft. 39456 1466 441 $63,950 $0 $142,111 $20,461,162 Lawrence County Water Assn. Installation of New 6" PVC Pipe 39654 1012 2160 $40,511 $0 $270,071 $20,731,233 Walnut Grove, Town of Replace Waterline & Install Autoread Meters 39489 327 497 $209,119 $0 $836,476 $21,567,709 Young's Water Sewer Dist. New Well 38922 226 1750 $265,393 $0 $758,265 $22,325,974 Friday March 20, 2020 Page 1 of 2

28 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $ Code Points Population Amount Project Requested Bay Springs, City of Water System Improvements-Install New Water 39422 2571 2100 $244,211 $0 $542,714 $22,868,688 Jackson County Utility Authority Distribution System Improvements 39567 1732 43680 $0 $0 $6,250,000 $29,118,688 West Jackson County UD Water System Improvement 39564 1400 25000 $0 $0 $5,000,000 $34,118,688 Combined Utilities Distribution System Improvements 39452 552 6126 $0 $0 $3,750,000 $37,868,688

---------------------------------------------------------------------------------------- $46,826,076 Funding Line--------------------------------------------------------

Oceans Springs, City of Replace Water Mains/tie-in with WJCUD 39566 196 21000 $0 $0 $8,690,000 $46,558,688 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $ Code Points Population Amount Project Requested Walls Water Association New Water Treatment Plant 38680 1442 8197 $0 $0 $1,832,500 $48,391,188 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $ Code Points Population Amount Project Requested Central Rankin Water Association Rehab/Paint Elevated Tank 39167 5168 2931 $0 $0 $190,000 $48,581,188 Short Coleman Park Water Assn. Repaint 2 Elevated Tanks/250,000/500,000 GAL 38852 3183 5004 $84,287 $0 $561,915 $49,143,103 Category XIII: Other Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $ Code Points Population Amount Project Requested Central Water Association Install New Systematic ARM System 39350 4678 22000 $358,750 $0 $1,435,000 $50,578,109 Glendale Utility District Installation of New Automated Meters 39401 4087 3800 $0 $0 $367,000 $50,945,103 Kilmichael, Town of Install New Radio Read Meters 39747 3110 586 $82,066 $0 $234,475 $51,179,578 Jayess-Topeka Tilton W/A Replace water Meters 39641 1426 3753 $154,313 $0 $617,250 $51,796,828

Friday March 20, 2020 Page 2 of 2

29 FFY-2020 Priority List FINAL Fiscal Year - 2021 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program (Projects included on the Planning List did not meet the September 30, 2019 deadline for submission of a complete facilities plan, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the Request for Ranking Form. A determination of project eligibility cannot be completed until the facilities plan has been submitted and reviewed.) Category II: Previous Year Certified Projects Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $

Code Points Population Amount Project Requested St. Thomas Water Assn., Inc. Water System Improvements 39041 1349 732 $20,343 $0 $135,623 $135,623 Category III: Primary Drinking Water Standards Projects Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $

Code Points Population Amount Project Requested Lexington, City of Water System Improvements 39095 5100 1735 $111,173 $0 $247,050 $382,673 NE Itawamba Water Assn., Inc. Water System Improvements 38847 1489 4689 $371,532 $0 $1,061,520 $1,444,193 Braxton, Town of Construction of New Well 39044 372 775 $0 $0 $819,000 $2,263,193 Category V: Pressure Deficiencies Projects Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $

Code Points Population Amount Project Requested Aberdeen, City of 400 GPM Well/100,000 Gal. Elev. Tank/Rehab Lines 39730 2316 6415 $370,487 $1,481,949 $3,745,142 Valley Park Water Association, inc. Water System Improvements 39177 30 448 $125,055 $0 $500,221 $4,245,363 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Project Project Description Zip Priority Service Area Eligible PF Green Loan Amount Statewide Cum. $

Code Points Population Amount Project Requested Batesville, City of Installation of Water lines 38606 31582 7600 $31,250 $125,000 $4,370,363 Batesville, City of Installation of Water Lines 38606 26319 7600 $37,500 $150,000 $4,520,363 Batesville, City of Rehab/Replacement of Existing Facilities 38606 14356 7600 $68,750 $275,000 $4,795,363 Batesville, City of Rehab Existing Facilities 38606 11279 7600 $87,500 $350,000 $5,145,363 Batesville, City of 500,000 Gallon Elevated Tank 38606 5264 7600 $187,500 $750,000 $5,895,363

Friday March 20, 2020 Page 2 of 2

30 Bear Creek Water Assn., Inc. Replace Tank With New 2 Mil Gal Tank 39046 1534 45000 $0 $0 $4,890,000 $10,785,363

Mt. Olivet Water Association New Well/Paint Elevated Tank 38606 806 1300 $129,010 $0 $516,040 $11,301,403 Lumberton, City of Replace Existing Water Lines/Mains 39455 273 2200 $500,000 $0 $3,453,197 $14,754,600

Leesburg Water Association Replace Approx. 265,000 LF Water Mains W/4"- 39145 125 4182 $500,000 $0 $4,243,600 $18,998,200 Category VIII: Back-up Water Supply Sources Projects Project Project Description Zip Priority Service AreaEligible PFGreen Loan Amount Statewide Cum. $

Code Points Population Amount Project Requested Batesville, City of Rehab Existing Infrastructure 38606 7896 7600 $125,000 $500,000 $19,498,200 Batesville, City of New 750 GPM Well 38606 7896 7600 $125,000 $500,000 $19,998,200 Category IX: Existing Facilities Upgrade (Meeting Primary Standards) Project Project Description Zip Priority Service AreaEligible PFGreen Loan Amount Statewide Cum. $

Code Points Population Amount Project Requested Batesville, City of Rehab Existing Facilities 38606 9629 7600 $102,500 $410,000 $20,408,200 Mount Olive, Town of Replacement of Water Lines 39119 2348 1000 $80,962 $231,320 $20,639,520 Alcorn Co. Water Association 300,000 Gal Storage Tank/upgrade Facilities 38834 1187 6500 $318,275 $1,273,101 $21,912,621 Alcorn Co. Water Association Renovate Elevated tanks/Replace Water Lines 38834 1155 6500 $218,230 $872,920 $22,785,541 Hatten Water Association Water System Improvements 39168 1154 1182 $62,228 $0 $414,850 $23,200,391 Harrison County Development Paint 2 Elevated Storage Tanks 39503 846 6000 $0 $0 $354,675 $23,555,066 Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treatmen 39114 531 2504 $500,000 $2,634,100 $26,189,166

Friday March 20, 2020 Page 2 of 2

31 VIII. Expected Public Health Outcomes & Performance Measures

The objective of this program is to disperse all available loan and grant funds in a timely manner in order to achieve the public health protection benefits resulting from the projects identified in the FFY-2020 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2020 IUP and funding projects shown on the FFY-2020 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2020.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2020 DWSRF Work Plan.

Appendices

33 Appendix A

FFY-2020 Beginning of the Year Anticipated Funds Report for the Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program w/ FFY-2019 EPA Cap Grant Funds October 1, 2019

FFY-2020 Funding (Federal and State) (Estimate, using FFY-2020 Allotment of $11,853,000)

**Required State Match (based on a the required match of 20% of $11,853,000) + $2,370,600 **Emergency Fund remaining (amount of any board-approved emergency fund remaining available to be used as match) + $0 FFY2020 Cap Grant (Estimated, based on the FFY2020 DWSRF Allotment based on EPA appropriation for MS which was $11,853,000; needed State match = $2,370,600) + $11,853,000 Total Federal and State Funds available in FFY-2020 for Loan Obligations & Set-asides:

$14,223,600 FFY-2020 Cap Grant Set-Asides (estimated based on maximum allowable amount or historical amounts)

DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (SDWA-DWSRF amendment to 2017 WIIN Act) + $474,120 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $237,060 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~6.3%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $1,185,300 Total FFY-2020 Cap Grant Set-Asides:

$2,646,480

Total Federal and State Funds Anticipated to be Available in FFY-2020 + $14,223,600 Less FFY-2020 Set-asides: - ($2,646,180) Total Federal & State Funds Anticipated to be Available for Loan Obligation in FFY-2020:

$11,577,420 2020 DWSRF Funds (Anticipated)

Total Federal & State Funds Anticipated to be Available for Loan Obligation in FFY-2020: + $11,577,420 Unobligated Funds Carried Over from FFY-2019 + 17,714,188 Loan Repayments To Be Deposited (Anticipated) 10/1/19 - 9/30/20 + $15,685,251 Interest on Fund To Be Deposited (Anticipated) 10/1/19 - 9/30/20 + $1,849,217 2020 Loan Increase Reserve ($1.0m) - ($1,000,000) Total Funds Available for Loan Awards in FFY-2020 (Anticipated)

$46,826,076

FFY-2019 End-of Year Funds Report Mississippi Drinking Water Improvements Revolving Loan Fund (DWSIRLF) Program October 1, 2019 FFY-2019 Funding (Federal and State)

**2019 Legislated State Match (The MS Legislature authorized $1,000,000 in bonds to be used as match for the program. $1,397,000 is still needed to fully match FFY2019 CAP Grant)

$2,397,000 FFY2019 Cap Grant (The FFY2019 Federal Cap Grant awarded was $11,845,000; needed State match 1,830,864 to draw funds) + $11,845,000 Total 2019 Federal and State Funds Available in FFY-2019 for Loan Obligations & Set- asides $14,242,000

FFY-2019 Cap Grant Set-Asides No FFY2019 Cap Grant Funds or set-asides are shown in this report, these funds will normally not be available until QTR1 of FFY2020. The FFY2019 Cap Grant set-asides shown below will become available in QTR2 of FFY2020 when funds are matched. DWSRF Administrative Expenses [section 1452(g)(2) - 4%] (SDWA-DWSRF amendment to 2017 WIIN Act) + $473,800 Small Systems Technical Assistance [section 1452(g)(2) - 2%] + $236,900 Local Assistance and Other State Program [section 1452(g)(2) - 15%] (taking ~8.2%) + $750,000 State Program Management [section 1452(g)(2) -10%] + $1,188,300 Total FFY-2019 Cap Grant Set-Asides

$2,646,480

Total Federal and State Funds Available in FFY-2019 + $14,242,000 Less FFY-2019 Set-asides - ($2,645,200) Total Federal and State Funds Available for Loan Obligation in FFY-2019

$ 11,596,800 FFY2019 DWSRF Loan Funds

FFY2019 Federal and State Funds Available for Loan Obligation

$11,596,800 Unobligated Funds Carried Over from FFY-2019 + ($17,714,188) Loan Repayments Deposited (Actual) 10/1/18 – 9/30/19 + $15,685,251 Interest on Fund Deposited (Actual) 10/1/18 - 9/30/19 + $1,849,217 FFY2019 Loan Decreases (actual) 10/1/18 - 9/30/19 + $4,507,184 FFY2019 Loan Increases (actual) 10/1/18 - 9/30/19 - ($83,898) FFY2019 Funds Available for Loan Awards

$54,705,855 Loan Awards made during FFY2019 (Initial) - ($33,990,860) Carryover Funds for Projects funded in FFY-2019

($17,714,188)

Mississippi received the entire FFY2018 Cap grant

35 Appendix B Part I Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2020 Set-asides Administrative $118,530 $118,530 $118,530 $118,530 $474,120 Small Sys. Tech Assist. $59,265 $59,265 $59,265 $59,265 $237,060 State Program Mgmt. $296,325 $296,325 $296,325 $296,325 $1,185,300 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $661,620 $661,620 $661,620 $661,620 $2,646,480 Federal 1Q FFY-20 2Q FFY-20 3Q FFY-20 4Q FFY-20 Total

36 Projected Schedule of Outlays for Standard Capitalization Grant Set-Asides

FFY-2020 Set-asides Federal 1Q FFY-19 2Q FFY-19 3Q FFY-19 4Q FFY-19 Total Administrative $118,530 $118,530 $118,530 $118,530 $474,120 Small Sys. Tech Assist. $59,265 $59,265 $59,265 $59,265 $237,060 State Program Mgmt. $296,325 $296,325 $296,325 $296,325 $1,185,300 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 Total Set-asides $661,620 $661,620 $661,620 $661,620 $2,646,480

Appendix C Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2020

FFY-2020 Cap Grant No. 1 of 4 1 st Quarter FFY-2019 $2,963,250 $2,963,250 FFY-2020 Cap Grant No. 2 of 4 2nd Quarter FFY-2019 $2,963,250 $5,926,500

FFY-2020 Cap Grant No. 3 of 4 3rd Quarter FFY-2019 $2,963,250 $8,889,750

FFY-2020 Cap Grant No. 4 of 4 4th Quarter FFY-2019 $2,963,250 $11,853,000

39 Appendix D Projected Schedule of Drawdowns Against Federal Letter of Credit (ACH Draw Schedule)

FFY-2020

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount 1 st Quarter FFY-2020 $2,963,250

$2,963,250

2nd Quarter FFY-2020 $2,963,250

$5,926,500

3rd Quarter FFY-2020 $2,963,250

$8,889,750

4th Quarter FFY-2020 $2,963,250

$11,853,000

40 Appendix E Mississippi Small Systems Technical Assistance Set-Aside Work plan

SELECTION PROCESS The current technical assistance contracts expire on June 30, 2020.

Prior to the expiration of the existing contracts an Invitation for Bids (IFB) for the technical assistance contracts will be sent out to potential contractors. All proposals will be evaluated by the Department and recommendations for award will be presented to the Board (at a regularly scheduled Board meeting); all contracts will be awarded.

The contracts for technical assistance are currently awarded to:

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

43 Coordination and Monitoring of Board Management Training for Water System Officials:

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

44 system operator. The hands-on training will include a comprehensive approach (lecture plus physical, hands-on sessions with equipment) for all operators attending the training. Trainings are to include equipment/props pertinent to the training topic(s) as a part of the training discussion.

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

45 Asset Management Training:

AGENCY RESPONSIBILITIES

The MSDH will conduct Small Systems Technical Assistance Set-aside activities through Board approved contracts with providers who will be selected following procedures of the State of Mississippi’s Department of Finance and Administration Public Procurement Review Board. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional FTE requirement is anticipated for state agencies to implement the provisions of this set-aside.

46 Appendix F Mississippi State Program Management Set-aside Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After review of the Draft FFY-2019 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft FFY-2020 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2020 IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2020 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% ($1,185,300) of the FFY-2020 DWSRF capitalization grant as a set- aside for State Program Management activities of the PWSS Program. The reserved amount will offset the salary, fringe and indirect cost expenses of a portion of the PWSS personnel positions in the PWSS Program.

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects twenty-eight (28) FTEs will be required to implement the FFY-2020/2021 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

47 primacy and also to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

Non-primacy Requirements

Capacity Development (CD) Program

As required by the SDWA, each state is required to develop and implement a Public Water System Capacity Development Program in order to receive full funding annually

48 under the DWSRF Program. Public water system capacity assessment is a full evaluation of the PWS’s technical, managerial, and financial ability to provide safe drinking water to its customers by complying with all state and Federal regulations. In accordance with the Federal requirements, MSDH has developed and implemented a CD program for both new and existing PWSs. The MSDH CD program takes the form of a rating that each community water system (CWS) and non-transient non-community water system (NTNCWS) receives at their annual sanitary survey. The criteria used in the rating system incorporate laws, regulations, and other valuable information to evaluate the areas of technical, managerial, and financial capacity. The program is also designed to evolve from year-to-year through an annual meeting of an advisory committee that will make suggestions as to possible changes and/or additions to the rating criteria. As required by regulation, an annual report is made to the Governor on the efficacy of the strategy and progress towards improving the capacity of PWSs in the state. Additionally, annual documentation of ongoing implementation of the CD strategy is to be provided with DWSRF Capitalization Grant application.

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

49 identify significant deficiencies. The Rule also requires systems to take corrective actions for significant deficiencies and for source water fecal contamination.

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

Information Management and the Safe Drinking Water Inspection System (SDWIS)/Fed Reporting These ongoing activities include: overseeing and enforcing requirements of data management and the Safe Drinking Water Inspection System (SDWIS) /Fed reporting; reporting the state’s PWSS inventory at least annually to SDWIS/Fed; reporting the state’s violations and enforcement actions at least quarterly; participating in EPA/state data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

50 AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

51 Appendix G Local Assistance and Other State Programs Annual Work plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Mississippi Rural Water Association (MsRWA).

The second contract (closure contract) – is currently being developed in accordance with new State contracting requirements.

PROGRAM ACTIVITIES

52 encourage proper abandonment; mobilization of well contractor to identified site to perform the work; and confirmation that the work has been completed.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

53 Appendix H Coordination Schedules for Jointly Funded Projects FFY-2019 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

These schedules are designed to help assure coordination between the DWSIRLF Program and the Appalachian Regional Commission (ARC) Grant Program, Community Development Block Grant (CDBG) Program, and Rural Utilities Service (RUS) Loan/ Grant Program. These schedules are, however, subject to change due to the timing of federal appropriations or program changes. Date(s) Schedule Item(s)/Deadline(s) ARC CDBG RUS* May 1, 2019 Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2019, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1, 2019 All FY-2020 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2020** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding.** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding, and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding.** Oct, 2020 MS State Dept. of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY-2020 ARC funding. MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-2020 DWSIRLF funding. MS State Dept. of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2020 CDBG funding. MS State Dept. of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which indicate anticipated FY-2020 RUS funding Nov 15, 2020 MARO completes review of FY-2020 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A)

ARC CDBG RUS Nov 15-30, 2020 MARO notifies local Planning & Development Districts of projects that have been selected for the P1 (fundable priority list). MARO will copy MSDH on these notification letters if grantee has indicated that it is pursuing DWSIRLF loan funds for the project. MSDH will not award a DWSIRLF loan until this notification from MARO is provided. (N/A) (N/A) Oct 18, 2020 (N/A) CDBG program application workshops.*** (N/A) Nov, 2020 MSDH advertises Draft DWSIRLF FFY-2020 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY- 2021 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2021 Intended Use Plan for public comment. Dec 30, 2020 Deadline for all FY-2020 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A) Dec, 2020 Board adopts FFY-2020 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2021 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2020 until 8/2021 Board adopts FFY-2021 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20, 2020 (N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan, 2020 MSDH notifies MARO of projects included on final FFY-2020 Priority List that anticipate receiving FFY-2020 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2020 Priority List that anticipate receiving FFY-2020 CDBG funds.

MSDH notifies RUS of projects included on the final FFY-2020 Priority List that anticipate receiving FFY-2020 RUS funds.

ARC CDBG RUS Feb 1, 2020 MARO sends project applications to ARC- Washington to start final funding approval process. (N/A) (N/A) Feb 16, 2020 (N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2020 until 4:00 p.m. on 2/17/2020. (N/A) Feb- Jun, 2019 ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2020. (N/A) (N/A) Mar, 2020 (N/A) MDA provides notification to MSDH that complete CDBG applications have been received.

(N/A) May 1, 2020** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs.** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs.** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application, or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

ARC CDBG RUS May, 2020 (N/A) MDA provides notification to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. (NOTE: MSDH will not award a DWSIRLF loan until this notification from MDA is provided.) (N/A) Jun, 2020 MSDH provides notification to MARO that complete DWSIRLF loan applications have been received. MSDH provides notification to MDA that complete DWSIRLF loan applications have been received. MDA provides conformation to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. MSDH provides notification to RUS that complete DWSIRLF loan applications have been received. (Upon Grant Award) MARO provides notification to MSDH that ARC awards have been made. MDA provides notification to MSDH that CDBG awards have been made. RUS provides notification that RUS awards have been made Aug 1, 2020** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval.** May-Sep, 2020 Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the ARC award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the CDBG award amount to be applied to DWSIRLF eligible costs. Loan applicants receive DWSIRLF loan awards from MSDH. The amount of the loan will be the total DWSIRLF eligible cost less the RUS award amount to be applied to DWSIRLF eligible costs. If loan applicant desires DWSIRLF loan award prior to RUS award, loan applicant must provide MSDH with a copy of letter from RUS which states their project will be funded only contingent upon receipt of DWSIRLF matching funds. MSDH will not award a DWSIRLF loan until that notification from RUS is provided.

ARC CDBG RUS (Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year, and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year, and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965- 5460; fax: 844-325-7034.

** FFY-2020 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

58 Appendix J Drinking Water Systems Emergency Loan Fund Program

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

59 Appendix K - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office, and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Ulysses Conley, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

60 8. The state certifies that prior to adding any new projects to the “FFY-2020 and After Planning List” for the purpose of funding such a project during FFY-2020 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP in order to allow for public review and comments.

The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

61 Appendix L – Assistance for Small and Disadvantaged Communities Drinking Water Grant Program

A small or disadvantaged community is one:

That the state determines to be a disadvantaged community under SDWA section 1452(d)(3) or may become a disadvantaged community as a result of carrying out a project of activity, or
With a population of less than 10,000 individuals that does not have the capacity to incur debt sufficient to finance a project to comply with the SDWA.

The allotment for Mississippi is $454,000.

Part 13 Part 13: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 13, R. 1059 Rule 1059

4390 $0 $1,568,657 $47,677,101 Canton Municipal Utilities Water System Improvements 39046 1036 8000 $500,000 $2,825,000 $50,502,101 H&H Water System, Inc. Distribution Improvements 39080 1030 3012 $367,500 $1,050,000 $51,552,101 Isola, Town of Rehab/ Replacement of Existing Facilities 38754 903 713 $209,250 $465,000 $52,017,101 Clarksdale Public Utilities Replacing Wells and Distribution 39814 732 17962 $500,000 $15,110,000 $67,127,101 Casey Jones Water Association Rehab/ Replacement of Existing Facilities 39179 713 1112 $405,000 $900,000 $68,027,101 Shannon, Town of Rehab/ Replacement of Existing Facilities 38868 691 1850 $0 $1,079,325 $69,106,426 Metcalfe, Town of Rehab/ Replacement of Existing Facilities 38760 678 1125 $424,125 $942,500 $70,048,926 Bolton, Town of Rehab/ Replacement of Existing Facilities 39041 665 640 $118,188 $337,681 $70,386,607 Hattiesburg, City of Rehab/ Replacement of Existing Facilities 39403 638 45951 $500,000 $11,903,000 $82,289,607 Acona Water Association Rehab/ Replacement of Existing Facilities 39095 604 1550 $638,910 $1,419,800 $83,709,407 Harland Creek Water Association Rehab/ Replacement of Existing Facilities 39095 554 1338 $500,000 $2,484,300 $86,193,707 East Madison Water Assn.,Inc. Distribution Improvements 39046 544 7265 $500,000 $5,000,000 $91,193,707 Poorhouse Water Association New Main, Distribution Improvements 38902 494 4550 $0 $2,543,800 $93,737,507 Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treament 39114 476 2504 $500,000 $2,634,100 $96,371,607 Topisaw Creek Water Assn. Rehab/ Replacement of Existing Facilities 39662 473 4910 $477,750 $3,185,000 $99,556,607 Magnolia, City of Rehab/ Replacement of Existing Facilities 39652 471 2420 $500,000 $2,798,860 $102,355,467 Greenville, City of Rehab Facilities 38701 459 30000 $500,000 $40,000,000 $142,355,467 Looxahoma Water Assn. Distribution Improvement/ AMR Upgrade 38668 457 686 $0 $500,000 $142,855,467 Lake Eddins Rehab/ Replacement of Existing Facilities 39347 419 294 $500,000 $1,369,941 $144,225,408 Big Field Water Association Rehab/ Replacement of Existing Facilities 38646 371 599 $383,426 $852,057 $145,077,465 Multi-Mart Water Association Rehab/ Replacement of Existing Facilities 39452 345 950 $83,293 $333,172 $145,410,637 Paynes Water Association Rehab Existing Facilities 38921 330 549 $0 $917,061 $146,327,698

Project Project Description Zip Priority Service Area Eligible Loan Amount Statewide

Code Points Population PF Amount Requested Cum. $ Lumberton, City of Replace Existing Water Lines/Mains 39455 328 2200 $500,000 $3,453,197 $149,780,895 Culkin Water District Rehab/ Replacement of Existing Facilities 39183 324 11409 $500,000 $10,473,600 $160,254,495 Fannin Water Association New 300,000-Gal Tank 39047 297 6500 $0 $3,372,320 $163,626,815 Morton, City of New Well/ New Water Mains/ Rehab Tank 39117 292 7000 $0 $7,000,000 $170,626,815 East Leflore Water & Sewer District Rehab/ Replacement of Existing Facilities 38930 264 5161 $500,000 $11,168,871 $181,795,686 Cross-Roads Water Assn. Rehab/ Replacement of Existing Facilities 38916 221 1600 $500,000 $3,057,336 $184,853,022 Stonewall, Town of Rehab/ Replacement of Existing Facilities 39363 220 933 $500,000 $3,300,725 $188,153,747 Hatten Water Association New Facility, New Well, New Water Mains 39168 180 1182 $500,000 $2,304,648 $190,458,395 Pachuta, Village of Rehab/ Replacement of Existing Facilities 39347 165 143 $426,665 $948,145 $191,406,540 McCarley Water Assn. Rehab/ Replacement of Existing Facilities 38943 153 647 $0 $2,394,289 $193,800,829 Neely Utilities New Storage/ Extend to Unserved Area 39461 132 499 $0 $1,343,992 $195,144,821 Cleaveland, City of Rehab Existing Facilities 38732 119 12000 $500,000 $2,114,701 $197,259,522 Starkville, City of Replace Existing Water Main 39759 110 25339 $0 $1,850,000 $199,109,522 Pittsboro, Town of Rehab/ Replacement of Existing Facilities 38951 100 1077 $0 $4,055,512 $203,165,034 Morgan City Water Assn. Rehab/ Replacement of Existing Facilities 38946 97 250 $0 $1,552,953 $204,717,987 Mount Olive, Town of New Water Treatment Plant 39119 51 982 $0 $2,000,000 $206,717,987 Valley Park Water Association, Inc. Water System Improvements 39177 23 448 $175,077 $500,221 $207,218,208 Category XII: Consolidation Projects

Jackson Co. Utility Authority Consolidation 39567 76 75000 $0 $31,750,000 $238,968,208 Jackson Co. Utility Authority Consolidation 39567 71 75000 $0 $1,270,000 $240,238,208 Jackson Co. Utility Authority Consolidation 39567 32 6600 $0 $279,400 $240,517,608 Jackson Co. Utility Authority Consolidation 39567 0 12000 $0 $2,540,000 $243,057,608

Note: See section VI.B. of this document for more details. Applications exceeding $5,000,000 amount require further approval by the Board. See section IV.C.1 of this document.

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2023 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2023 IUP and funding projects shown on the FFY-2023 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2023.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2023 DWSRF Work Plan.

APPENDICES

APPENDIX A

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM ANTICIPATED FUNDS REPORT - July 1, 2023 FFY-2023 (OCT. 1, 2022 - SEPT. 30, 2023)

FFY-2023 Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment (w $107,000 Wyoming Reallotment) + $6,291,000 State Match Required (20% of Mississippi's Allotment) + $1,258,200 BIL 2023 SRF Supplemental Allotment

$26,368,000 State Match Required (10% of Mississippi's Allotment) + $2,636,800 2023 Capitalization Grant for DWSRF w BIL Supplemental = $36,554,000

State Match Status State Match Required + $3,895,000 2023 Legislated State Match (HB1626 $4,300,000 plus 2022 State Match Carryover ($1,004,400)) - $5,304,400 Remaining State Match Required = ($1,409,400)

33 Miss. Admin. Code Pt. 13, R. 2023 Rule 2023

Cap Grant Set-Asides DWSRF Administrative Expenses [SDWA Sec. 1452(g)(2) - 4%] + $380,492 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $112,407 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $629,100 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $554,266 BIL Administrative Expenses [SDWA Sec. 1452(g)(2) - 4%] + $549,199 BIL Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $77,425 BIL Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $2,636,800 BIL State Program Management [SDWA Sec. 1452(g)(2) -10%] + $1,059,544 Total 2022 Cap Grant Set-Asides = $5,999,233

33 Miss. Admin. Code Pt. 13, R. 2023 Rule 2023

Cap Grant Funds Available for Loan Obligation 2023 DWSRF Capitalization & BIL Supplemental Grants + $36,554,000 2023 Cap Grant Set-asides - ($1,676,265) 2023 BIL Supplemental Set-asides - ($4,322,968) Total Cap Grant Funds Available for Loan Obligation = $30,554,767

iii

FFY-2023 Funds Anticipated to be Available for Loan Awards 2023 Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $30,554,767 Unobligated Funds Carried Over from FFY-2022 + $8,935,003.90 Loan Repayments (P&I) Deposited to the Fund (Actual) 10/01/22 - 06/30/23 + $11,161,609.58 Interest Earned on Deposits to the Fund (Actual) 10/01/22 - 06/30/23 + $1,529,989.74 Loan Repayments To Be Deposited (Anticipated) 07/01/23 - 09/30/23 + $4,874,102.05 Interest on Fund To Be Deposited (Anticipated) 07/01/23 - 09/30/23 + $208,819.52 FFY2023 Loan Decreases (Actual) 10/01/22 - 06/30/23 + $11,162,357.00 FFY2023 Loan Increases (Actual) 10/01/22 - 06/30/23 - ($7,736,244.00) Loan Increases (Anticipated) 07/01/23 - 09/30/23 - $0.00 Loan Decreases (Anticipated) 07/01/23 - 09/30/23 + $0.00 FFY-2023 Loan Increase Reserve - ($2,000,000.00) Total FFY-2023 Funds Anticipated to be Available for Loan Awards = $59,207,433

Funds Needed for Projects on the FFY-2023 Priority List & FFY-2024 and After Planning List Funds Needed for Projects on the FFY-2023 Priority List & FFY-2024 and After Planning List + $387,476,138 FFY-2023 Funds Anticipated to be Available for Loan Awards - ($59,207,433) Total Fund Need Remaining for Projects on the FFY-2023 Priority List & FFY-2024 and After Planning List = $328,268,705

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR CAPITALIZATION GRANT SET-ASIDES

FFY 2022 Cap Grant & BIL Supplemental Federal Set-Asides FFY 2023 Q1 FFY 2023 Q2 FFY 2023 Q3 FFY 2023 Q4 Totals Administrative $101,449 $101,449 $101,449 $101,449 $405,797 $124,526 $124,526 $124,526 $124,526 $498,102 Small System Tech Assist. $35,474 $35,474 $35,474 $35,474 $141,898 $7,438 $7,438 $7,438 $7,438 $29,750 Local Asst. & Other St. Programs $187,500 $187,500 $187,500 $187,500 $750,000 $483,200 $483,200 $483,200 $483,200 $1,932,800 State Program Management. $188,600 $188,600 $188,600 $188,600 $754,400 $0 $0 $0 $0 $0 Base Cap. Grant Total: $513,024 $513,024 $513,024 $513,024 $2,052,095 BIL Supplemental Cap. Grant Total: $615,163 $615,163 $615,163 $615,163 $2,460,652 Total: $1,128,187 $1,128,187 $1,128,187 $1,128,187 $4,512,747

FFY 2023 Cap Grant & BIL Supplemental Federal Set-Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administrative $95,123 $95,123 $95,123 $95,123 $380,492 $137,299 $137,300 $137,300 $137,300 $549,199 Small System Tech Assist. $28,102 $28,102 $28,102 $28,102 $112,407 $19,356 $19,356 $19,356 $19,356 $77,425 Local Asst. & Other St. Programs $157,275 $157,275 $157,275 $157,275 $629,100 $659,200 $659,200 $659,200 $659,200 $2,636,800 State Program Management. $138,567 $138,567 $138,567 $138,567 $554,266 $264,886 $264,886 $264,886 $264,886 $1,059,544 Base Cap. Grant Total: $419,066 $419,066 $419,066 $419,066 $1,676,265 BIL Supplemental Cap. Grant Total: $1,080,741 $1,080,742 $1,080,742 $1,080,742 $4,322,967 Total: $1,499,807 $1,499,808 $1,499,808 $1,499,808 $5,999,233

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2023

FFY-2022 Cap Grant No. 1 of 4

st Quarter FFY-2023 $1,886,000 $4,842,000 $1,886,000 $4,842,000 $6,728,000 FFY-2022 Cap Grant No. 2 of 4 2nd Quarter FFY-2023 $1,886,000 $4,842,000 $3,772,000 $9,684,000 $13,456,000 FFY-2022 Cap Grant No. 3 of 4 3rd Quarter FFY-2023 $1,886,000 $4,842,000 $5,658,000 $14,526,000 $20,184,000 FFY-2022 Cap Grant No. 4 of 4 4th Quarter FFY-2023 $1,886,000 $4,842,000 $7,544,000 $19,368,000 $26,912,000

FFY-2024

FFY-2023 Cap Grant No. 1 of 4

st Quarter FFY-2024 $1,572,750 $6,592,000 $1,572,750 $6,592,000 $8,164,750 FFY-2023 Cap Grant No. 2 of 4 2nd Quarter FFY-2024 $1,572,750 $6,592,000 $3,145,500 $13,184,000 $16,329,500 FFY-2023 Cap Grant No. 3 of 4 3rd Quarter FFY-2024 $1,572,750 $6,592,000 $4,718,250 $19,776,000 $24,494,250 FFY-2023 Cap Grant No. 4 of 4 4th Quarter FFY-2024 $1,572,750 $6,592,000 $6,291,000 $26,368,000 $32,659,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2023

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$1,886,000 $4,842,000 $1,886,000 $4,842,000 $6,728,000 2nd Quarter

$1,886,000 $4,842,000 $3,772,000 $9,684,000 $13,456,000 3rd Quarter

$1,886,000 $4,842,000 $5,658,000 $14,526,000 $20,184,000 4th Quarter

$1,886,000 $4,842,000 $7,544,000 $19,368,000 $26,912,000

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$1,572,750 $6,592,000 $1,572,750 $6,592,000 $8,164,750 2nd Quarter

$1,572,750 $6,592,000 $3,145,500 $13,184,000 $16,329,500 3rd Quarter

$1,572,750 $6,592,000 $4,718,250 $19,776,000 $24,494,250 4th Quarter

$1,572,750 $6,592,000 $6,291,000 $26,368,000 $32,659,000

VII

APPENDIX E - MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET-ASIDE WORK PLAN

SELECTION PROCESS The current technical assistance contracts expire on June 30, 2023.

Prior to the expiration of the existing contracts an Invitation for Bids (IFB) for the technical assistance contracts will be sent out to potential contractors. All proposals will be evaluated by the Department and recommendations for award will be presented to the Board (at a regularly scheduled Board meeting); all contracts will be awarded.

The contracts for technical assistance are currently awarded to:

• Small Systems Technical Assistance (long-term and intermediate technical assistance) – Communities Unlimited; • Board Management Training Monitoring and Coordination for Water System Officials - Mississippi State University Extension Service; • Hands-On Operator Training - MS Water and Pollution Control Operators Association; • PEER Review Program for Public Water Supplies - Mississippi Rural Water Association, Inc.; • Asset Management - Mississippi Rural Water Association, Inc.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

VIII

Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

Coordination and Monitoring of Board Management Training for Water System Officials:

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

operator. The hands-on training will include a comprehensive approach (lecture plus physical, hands-on sessions with equipment) for all operators attending the training. Trainings are to include equipment/props pertinent to the training topic(s) as a part of the training discussion.

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Asset Management Training:

Activity Objectives - provide asset management training to water system operator statewide.

AGENCY RESPONSIBILITIES

The MSDH will conduct Small Systems Technical Assistance Set-aside activities through Board approved contracts with providers who will be selected following procedures of the State of Mississippi’s Department of Finance and Administration Public Procurement Review Board. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional full time equivalent (FTE) requirement is anticipated for state agencies to implement the provisions of this set-aside.

XII

APPENDIX F - Mississippi State Program Management Set-Aside Annual Work Plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After review of the Draft FFY-2023 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft FFY-2023 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2023 IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2023 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% ($754,400) of the FFY-2023 DWSRF capitalization grant as a set- aside for State Program Management activities of the PWSS Program. The reserved amount will offset the salary, fringe, and indirect cost expenses of a portion of the PWSS personnel positions in the PWSS Program.

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects twenty-eight (28) full time equivalents (FTE) will be required to implement the FFY-2023/2023 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the

XIII

set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

As required to maintain state primacy, MSDH maintains the PWSS programs on an ongoing or as-needed basis. These programs include: revising current primacy programs by adopting new Federal regulations as needed; coordinating for Mid-Year and End-of-Year review with EPA Regional Office; maintaining a sanitary survey program with discrepancy follow-up; participating in state data verification audits; ensuring public water systems (PWSs) are utilizing approved laboratories and a certification program for those laboratories is in place; participating in the EPA Regional oversight; operating in accordance with requirements of the National Primary Drinking Water Regulations; maintaining an active water system design and construction plan and specification review program; ensuring labs used by PWSs within the state are capable of the workload created by regulations; participating in PWS and PWSS training on rule requirements; informing EPA Region 4 of any special state initiatives under the rules or provisions of the SDWA; maintaining records for all rule/policies, enforcing reporting and record keeping as required; maintaining appropriate administrative penalty authority; implementing the PWS definition; attending State/EPA planning and implementation meetings; ensuring that newly permitted PWSs have design/construction capable of compliance with the present and upcoming SDWA regulations; ensuring analytical methods are being applied to demonstrate compliance with the regulations; notifying (if necessary) EPA of intent not to adopt or implement any portion of the rules; and responding to EPA requests for information or verification of state rules implementation.

Non-primacy Requirements

Capacity Development (CD) Program

XIV

its customers by complying with all state and Federal regulations. In accordance with the Federal requirements, MSDH has developed and implemented a CD program for both new and existing PWSs. The MSDH CD program takes the form of a rating that each community water system (CWS) and non-transient non-community water system (NTNCWS) receives at their annual sanitary survey. The criteria used in the rating system incorporate laws, regulations, and other valuable information to evaluate the areas of technical, managerial, and financial capacity. The program is also designed to evolve from year-to-year through an annual meeting of an advisory committee that will make suggestions as to possible changes and/or additions to the rating criteria. As required by regulation, an annual report is made to the Governor on the efficacy of the strategy and progress towards improving the capacity of PWSs in the state. Additionally, annual documentation of ongoing implementation of the CD strategy is to be provided with DWSRF Capitalization Grant application.

Unregulated Contaminant Monitoring Rule

Operator Certification

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

Information Management and the Safe Drinking Water Inspection System (SDWIS)/Fed Reporting These ongoing activities include: overseeing and enforcing requirements of data management and the Safe Drinking Water Inspection System (SDWIS) /Fed reporting; reporting the state’s PWSS inventory at least annually to SDWIS/Fed; reporting the state’s violations and enforcement actions at least quarterly; participating in EPA/state data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing requirements of the regulatory requirements.

Management System for Non-compliant Systems These activities include overseeing and enforcing requirements of management systems for non-compliant systems; provide current versions of its enforcement response guide; assurances that the EPA has up-to-date information.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

Enforcement and Management of Significant Non-compliers (SNC’s) Activities of this auxiliary service include overseeing and complying with the requirements of management significant non-compliers (SNC’s); and reporting the state’s response to instances of significant noncompliance at public water systems.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

XVI

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

XVII

APPENDIX G - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilize via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contract for coordination of the decommissioning/properly closing inactive water wells/open holes was bid and awarded; the current contract runs until June 30, 2023. A new contract for the decommissioning/properly closing inactive water wells/open holes is currently being developed in accordance with new State contracting requirements.

An Invitation for Bids (IFBs) for the coordination of the decommissioning/properly closing inactive water wells/open holes was sent to qualified potential contractors. Bids received were reviewed by the Department to select the lowest and best bid for the agency. Recommendations for award of a contract were presented to the Board at their regularly scheduled Board meeting; following authorization by the Board, the coordination contract was awarded.

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Engineering Service.

The second contract (closure contract) – is currently being developed in accordance with new State contracting requirements.

PROGRAM ACTIVITIES

The activities described herein will be accomplished through a four-part process: Identification of wells / holes needing proper abandonment for the protection of aquifers and the overall public health; communication with public water supply that owns well/hole to encourage proper abandonment; mobilization of well contractor to identified site to perform the work; and confirmation that the work has been completed.

XVIII

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

XIX

APPENDIX H - COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

FFY-2023 DWSIRLF COORDINATION SCHEDULES FOR JOINTLY FUNDED PROJECTS

Schedule Item(s)/Deadline(s) Date(s) ARC CDBG RUS* May 1,

Mississippi Appalachian Regional Office (MARO) notifies potential applicants & local Planning & Development Districts of the September 1, 2022, deadline for submitting complete ARC grants applications. (N/A) (N/A) Sept 1,

All FY-2023 ARC project applications due at MARO in Tupelo, MS by 5:00 p.m. Proposals received afterward will only be considered as "back-up" projects. (N/A) (N/A) Oct 1, 2023** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated ARC funding and must indicate if the loan applicant intends to proceed with the project; 1) only if ARC funds are received, or 2) regardless of ARC funding. ** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated CDBG funding and must indicate if the loan applicant intends to proceed with the project; 1) only if CDBG funds are received, or 2) regardless of CDBG funding. ** Deadline for loan applicant to submit a complete DWSIRLF facilities plan to MS State Department of Health (MSDH). The plan must reflect anticipated RUS funding and must indicate if the loan applicant intends to proceed with the project; 1) only if RUS funds are received, or 2) regardless of RUS funding. ** Oct,

MS State Dept. of Health (MSDH) notifies MARO of loan applicants who have submitted complete facilities plans which indicate anticipated FY- 2023 ARC funding. MS State Dept. of Health (MSDH) notifies Mississippi Development Authority (MDA) of loan applicants who have submitted facilities plans which indicate anticipated FY-2023 CDBG funding. MS State Dept. of Health (MSDH) notifies U. S. Department of Agriculture, Rural Utilities Service (RUS) of loan applicants who have submitted facilities plans which

MARO notifies MSDH of ARC grant applicants who submitted pre-applications which indicate anticipated FY-2023 DWSIRLF funding. indicate anticipated FY- 2023 RUS funding

Date(s) ARC CDBG RUS Nov 15,

MARO completes review of FY-2023 projects and briefs Governor on proposed Priority 1 and Priority 2 project lists, as well as projects not eligible to be funded. (N/A) (N/A) Nov 15- 30, 2023 MARO notifies local Planning & Development Districts of projects that have been selected for the P1 (fundable priority list). MARO will copy MSDH on these notification letters if grantee has indicated that it is pursuing DWSIRLF loan funds for the project. MSDH will not award a DWSIRLF loan until this notification from MARO is provided. (N/A) (N/A) Oct 18,

(N/A) CDBG program application workshops. *** (N/A) Nov,

MSDH advertises Draft DWSIRLF FFY-2023 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2023 Intended Use Plan for public comment. MSDH advertises Draft DWSIRLF FFY-2023 Intended Use Plan for public comment. Dec 30,

Deadline for all FY-2023 Priority 1 documentation and forms to be submitted to MARO. (N/A) (N/A)

XXI

Date(s) ARC CDBG RUS Dec,

Board adopts FFY-2023 DWSIRLF Intended Use Plan accounting for anticipated ARC award amounts if identified in facilities plan. Board adopts FFY-2023 DWSIRLF Intended Use Plan, accounting for anticipated CDBG award amounts if identified in facilities plan. CDBG public facilities applications, along with one copy of the DWSRLF loan application with maps and appropriate attachments will be accepted from 12/7/2023 until 8/2023 Board adopts FFY-2023 DWSIRLF Intended Use Plan, accounting for anticipated RUS award amounts if identified in facilities plan. Jan 20,

(N/A) Deadline for a CDBG grant applicant to submit a water viability review form to MDA. (N/A) Jan,

MSDH notifies MARO of projects included on Final FFY-2023 Priority List that anticipate receiving FFY- 2023 ARC funds. MSDH notifies MDA of projects included on the Final FFY-2023 Priority List that anticipate receiving FFY-2023 CDBG funds.

MSDH notifies RUS of projects included on the Final FFY-2023 Priority List that anticipate receiving FFY-2023 RUS funds.

Date(s) ARC CDBG RUS Feb 1,

MARO sends project applications to ARC- Washington to start final funding approval process. (N/A) (N/A) Feb 16,

(N/A) CDBG public facilities applications, along with one copy of the DWSIRLF loan application with maps and appropriate attachments, will be accepted from 2/16/2023 until 4:00 p.m. on 2/17/2023. (N/A) Feb- Jun,

ARC-Washington starts the final funding approval process and awards ARC grants during the spring or summer of 2023. (N/A) (N/A)

XXII

Date(s) ARC CDBG RUS Mar,

(N/A) MDA provides notification to MSDH that complete CDBG applications have been received.

(N/A) May 1, 2023** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less the amount of anticipated ARC award to be applied to DWSIRLF eligible costs. ** Deadline for loan applicants to submit a completed DWSIRLF loan application to MSDH for the total DWSIRLF eligible costs, less amount of anticipated CDBG award to be applied to the DWSIRLF eligible costs. ** (NOTE: If the loan recipient is pursuing a CDBG grant to cover part of the cost of construction, the loan recipient has the option to include the anticipated CDBG grant amount in the detailed cost breakdown in the application or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded a CDBG grant prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project.) Deadline for loan applicants to submit complete DWSIRLF loan applications to MSDH for the total DWSIRLF eligible costs, less amount of anticipated RUS award to be applied to DWSIRLF eligible costs. ** (NOTE: If the loan recipient is pursuing an RUS grant/loan to cover part of the cost of construction, the loan recipient has the option to include the anticipated RUS grant/loan amount in the detailed cost breakdown in the application or may request 100% DWSIRLF funding with the possibility of amending the loan application later if the loan recipient is awarded an RUS grant/loan prior to receipt of bids for construction. However, the DWSIRLF loan application must be consistent with the DWSIRLF facilities plan for the project)

XXIII

Date(s) ARC CDBG RUS May,

(N/A) MDA provides notification to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. (NOTE: MSDH will not award a DWSIRLF loan until this notification from MDA is provided.) (N/A) Jun, 2023 MSDH provides notification to MARO that complete DWSIRLF loan applications have been received. MSDH provides notification to MDA that complete DWSIRLF loan applications have been received. MDA provides conformation to MSDH of which projects fall within the funding range for CDBG grants for construction contingent upon matching funds being in place. MSDH provides notification to RUS that complete DWSIRLF loan applications have been received. (Upon Grant Award) MARO provides notification to MSDH that ARC awards have been made. MDA provides notification to MSDH that CDBG awards have been made. RUS provides notification that RUS awards have been made Aug 1, 2023** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval. ** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval. ** All approvable documents and responses to comments necessary for loan award must be submitted to MDEQ for review and approval. **

XXIV

Date(s) ARC CDBG RUS May-Sep,

(Upon Loan Award) MSDH sends a copy of the award letter to MARO. MSDH sends a copy of the award letter to MDA. MSDH sends a copy of the award letter to RUS.

General Guidance regarding DWSIRLF/RUS coordination: The RUS is an agency of the United States Department of Agriculture which provides loans and grants for water and wastewater projects. Eligible applicants must be public entities, nonprofit organizations, or Indian tribes that serve communities with populations under 10,000. RUS funds may be used in conjunction with other Federal, State, or local funds. Applications for RUS funds will be accepted at any time during the year and involve an environmental review that includes public notifications and comment periods. RUS projects are funded at any time during the year as long as funds are available. RUS funds are allocated by Congress in October of each year and are usually spent as complete applications are received. Therefore, it is generally to the applicant’s advantage to file applications earlier in the year. To receive an application package or other information, contact Rural Utilities Service, 100 West Capitol Street, Suite 831, Jackson, MS 39269; telephone: (601) 965-5460; fax: 844-325-7034.

** FFY-2023 DWSIRLF Priority System Deadline

*** “To Be Announced” (Date has not yet been set.)

XXV

APPENDIX I - DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM

Section 41-3-16, Mississippi Code of 1972, as amended, created the Drinking Water Systems Emergency Loan Fund Program (DWSELF). This program provides loans to counties, municipalities, districts, or other (tax exempt) water organizations for emergency construction, repair, or replacement of drinking water facilities. This entirely state-funded loan program provides a ready funding source for such emergency projects without the federal cross-cutter requirements required in the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, thereby saving valuable time and expense. The Board encourages eligible water organizations throughout the state to utilize this program whenever emergency drinking water projects are needed.

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

XXVI

APPENDIX J - CERTIFICATIONS

In addition to the assurances included below, the state acknowledges that there are additional assurances that the state has agreed to in both the Operating Agreement between the State and EPA Region IV and the annual capitalization grants. These two documents are hereby incorporated into this IUP by reference.

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

Through this public review process, the State, Board, and Program hope to include a diverse set of potential interested parties, including community groups, neighborhood associations, environmental organizations, environmental justice organizations, and public health groups, that represent a broad spectrum of community interests.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).

XXVII

The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).
The state certifies that prior to adding any new projects to the “FFY-2023 and After Planning List” for the purpose of funding such a project during FFY-2023 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.
The State is committed to and ensures that program’s activities comply with Title VI of the Civil Rights Act of 1964

xxviii

APPENDIX K – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding The bill appropriates $30.713 billion for the Drinking Water State Revolving Funds (SRFs) over five years. (This is actual funding.) (See Division J – Appropriations, Title VI Department of Interior, Environment and Related Agencies, State and Tribal Assistance Grants: Starts on page 2,565 of the bill.)

II. Reauthorization & Policy The bill includes The Drinking Water and Wastewater Infrastructure Act (S. 914) which reauthorizes funding levels for the SRFs and amends SRF provisions in the Clean Water Act and the Safe Drinking Water Act. (See Division E – Drinking Water and Wastewater Infrastructure: Starts with Section 50001 on page 1,887 of the bill.)

III. Buy America / Buy American The bill expands domestic preference procurement provisions for programs across government, including the SRFs. (See Division G – Other Authorizations, Title IX Build America, Buy America: Starts with 70901 on page 2,303 of the bill.)

I. Funding

The bill provides three pots of funding for SRFs over the next five years: • Any Eligible Project: o $11,713,000,000 for the Drinking Water SRF for any eligible project. • Lead Remediation: o $15 billion for the Drinking Water SRF for lead service line replacement, including planning, identification, and design (includes inventories). • Emerging Contaminants Remediation: o $4 billion for remediation of emerging contaminants with a focus on PFAS/PFOA for the Drinking Water SRF.

Key points for this supplemental appropriation: • Funding is intended to be in addition to annual appropriations. • Funding is available “until expended.” • State match is not required for appropriations dedicated to lead service line replacement and remediation of emerging contaminants. • State match is 10% for 2022-2023 and 20% for 2024-2026 for appropriations for any eligible project. • 100% of the capitalization grant for emerging contaminants must be used for additional subsidy. A flat 49% of the annual capitalization grant for any eligible project and lead service line replacement must be used for additional subsidy.

xxix

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Year Drinking Water SRF Any Eligible Project State Match Mandated Additional Subsidy 2022 $1,902,000,000 10% 49% 2023 $2,202,000,000 10% 49% 2024 $2,403,000,000 20% 49% 2025 $2,603,000,000 20% 49% 2026 $2,603,000,000 20% 49% Total $11,713,000,000

Year Drinking Water SRF Emerging Contaminants State Match Mandated Additional Subsidy 2022 $800,000,000 0% 100% 2023 $800,000,000 0% 100% 2024 $800,000,000 0% 100% 2025 $800,000,000 0% 100% 2026 $800,000,000 0% 100% Total $4,000,000,000

Year Drinking Water SRF Lead State Match Mandated Additional Subsidy 2022 $3,000,000,000 0% 49% 2023 $3,000,000,000 0% 49% 2024 $3,000,000,000 0% 49% 2025 $3,000,000,000 0% 49% 2026 $3,000,000,000 0% 49% Total $15,000,000,000

Total $30,713,000,000

II. Reauthorization & Policy

The bill includes The Drinking Water and Wastewater Infrastructure Act of 2022 (S. 914) which passed the U.S. Senate on Thursday, April 29, by a vote of 89 – 2 (9 not voting). The bill contained the following provisions. (Policy provisions apply to annual appropriations, not supplemental appropriations in the bill.)

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

xxx

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2023 through 2026.

Additional Subsidy • Defines additional subsidization as “forgiveness of principal, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt” for both SRFs and excludes loans with 0% or higher interest are not additional from being considered additional subsidy. • Mandates minimum additional subsidy for as long as there are eligible applications: o Drinking Water SRFs: Increases additional subsidy from 6% to 12% of the capitalization grant for additional subsidy for disadvantaged communities.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

xxxi

APPENDIX L - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a Consolidation Regionalization assistance program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in consolidation or regionalization to create a more sustainable model that best serves the consumers of Mississippi’s drinking water.

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

A Request for Qualifications will be advertised statewide. Qualifications received will be reviewed by the Department to select the best qualified candidate for the agency. Recommendations for award of a contract will be presented to the Board at their regularly scheduled Board meeting; following authorization by the Board, the coordination contract will be awarded.

PROGRAM ACTIVITIES

The activities described herein will be accomplished through a four-part process: identification of potential consolidation or regionalization opportunities; communication with public water supply; mobilization of contractor to identified site to develop plans and specifications; and confirmation that the work has been performed.

Identification – The contractor will survey the State’s drinking water system to identify water systems that would benefit from consolidation or regionalization to create a more sustainable model that best serves the consumers of Mississippi’s drinking water.

Communication – Staff from the contractor will meet with system officials to inform them of the program, explain what consolidation or regionalization looks like for their system, and encourage them to consider the possibility of taking advantage of funding through our program.

Confirmation – Staff of the contractor will provide the BPWS Regional Engineers with drafts of the plans and specifications.

xxxii

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

The success of this set-aside will be defined by the ability of the MSDH through the solicited contractor(s) to identify, plan, and assist water systems in consolidation or regionalization to create a more sustainable model that best serves the consumers of Mississippi’s drinking water.

Part 14 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan

33 Miss. Admin. Code Pt. 14, R. 2022 Rule 2022

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - either $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award] + $135,000 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $610,360 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $4,577,700 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total 2022 Cap Grant Set-Asides = $5,323,060

33 Miss. Admin. Code Pt. 14, R. 2022 Rule 2022

Cap Grant Funds Available for Loan Obligation 2022 DWSRF Capitalization & BIL Supplemental Grants + $30,518,000 2022 Cap Grant Set-asides - ($5,323,060) Total Cap Grant Funds Available for Loan Obligation = $25,194,940

Funds Anticipated to be Available for Loan Awards Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $25,194,940.

Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $25,194,940

Funds Needed for Projects on the FFY-2022 Priority List & FFY-2023 & After Planning List Funds Needed for Projects on the Priority List and FFY-2023 & After Planning List + $28,052,135 Funds Anticipated to be Available for Loan Awards - ($25,194,940) Total Fund Need Remaining for Projects on the Priority List and FFY-2023 & After Planning List = $2,857,195

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL LSLR CAPITALIZATION GRANT SET-ASIDES

FFY 2024 BIL LSLR Cap Grant Federal Set-Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administrative $33,750 $33,750 $33,750 $33,750 $135,000 Small System Tech Assist. $152,590 $152,590 $152,590 $152,590 $610,360 State Program Management. $1,144,425 $1,144,425 $1,144,425 $1,144,425 $4,577,700 Local Asst. & Other St. Programs $0 $0 $0 $0 $0 Total: $1,330,765 $1,330,765 $1,330,765 $1,330,765 $5,323,060

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2024

FFY-2022 Cap Grant No. 1 of 4

st Quarter FFY-2024 $7,629,500 $7,629,500 FFY-2022 Cap Grant No. 2 of 4 2nd Quarter FFY-2024 $7,629,500 $15,259,000 FFY-2022 Cap Grant No. 3 of 4 3rd Quarter FFY-2024 $7,629,500 $22,888,500 FFY-2022 Cap Grant No. 4 of 4 4th Quarter FFY-2024 $7,629,500 $30,518,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$7,629,500 $7,629,500 2nd Quarter

$7,629,500 $15,259,000 3rd Quarter

$7,629,500 $22,888,500 4th Quarter

$7,629,500 $30,518,000

APPENDIX E – Lead ServiceLine Inventory Workplan

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Small System Technical Assistance Set-Aside & Local Assistance and Other State Programs Set-aside of the DWSRF LSLR in a Lead Service Line Inventory Program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in inventorying their service line to identify lead service lines for replacement projects.

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance and Local Assistance and Other State Programs set-asides from the BIL LSLR FFY-2022 Cap Grant to support lead service line inventory activities for eligible public water systems.

The Department may implement multiple approaches to deliver inventory services based on system needs, project scope, and program priorities. These approaches may include the use of Department-procured contracts, system-procured services, or other delivery methods determined appropriate by the Department.

To facilitate efficient implementation, the Department may develop standardized scopes of work, technical requirements, procurement documents, and reporting formats for use by participating systems and contractors, consistent with applicable state and federal procurement requirements.

The Department may group similar inventory activities into project packages where appropriate to improve efficiency and cost-effectiveness. Project packages may vary in size and complexity depending on system characteristics and inventory needs.

Funding levels for inventory activities may be developed using planning-level estimates, including per-connection or per-meter cost assumptions, with final funding based on eligible costs and procurement results.

Systems that have identified known lead service lines or galvanized requiring replacement (GRR) are expected to pursue projects that include replacement activities. Inventory updates may be included as necessary to support development and implementation of those projects.

The activities described herein will be accomplished through a structured process that may include identification of eligible systems, coordination with public water systems, development of inventory plans, execution of field activities, and submission of required data and reporting consistent with program requirements.

Communication – Staff from the contractor will meet with system officials to inform them of the program, explain what Lead Line Inventories looks like for their system, and encourage them to take advantage of funding through our program.

Mobilization – Once the communication phase has been completed and the system request to move forward, staff of the contractor will mobilize to the selected site and commence with the plan and inventory of the System’s service lines. Acceptable methods of inventory will be determined and outlined by the Department to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for a Lead Service Line Replacement Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Lead Line Inventory Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

The success of these set-asides will be defined by the ability of the MSDH through the solicited contractor(s) to identify, plan, and assist water systems in Lead Line Inventories that lead to Lead Line Replacement Projects to create safer drinking water for all consumers of Mississippi’s drinking water.

APPENDIX F - MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

In Development

Appendix G - Certifications

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).
The state certifies that prior to adding any new projects to the “FFY-2022 and After Planning List” for the purpose of funding such a project during FFY-2022 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX H – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

The bill includes The Drinking Water and Wastewater Infrastructure Act of 2021 (S. 914) which passed the U.S. Senate on Thursday, April 29, by a vote of 89 – 2 (9 not voting). The bill contained the following provisions. (Policy provisions apply to annual appropriations, not supplemental appropriations in the bill.)

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

Part 15 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 15, R. 2022 Rule 2022

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - the greater of: $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award] + $227,113 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $162,660 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $1,219,950 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total 2022 Cap Grant Set-Asides = $1,609,723

33 Miss. Admin. Code Pt. 15, R. 2022 Rule 2022

Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & BIL Supplemental Grants + $8,133,000 Cap Grant Set-asides - ($1,609,723) Total Cap Grant Funds Available for Loan Obligation = $6,523,277

Funds Anticipated to be Available for Loan Awards 2022 Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $6,523,277 Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $6,523,277

Funds Needed for Projects on the FFY-2022 Priority List and FFY-2023 & After Planning List Funds Needed for Projects on the Priority List & FFY-2023 and After Planning List + $5,000,000 Funds Anticipated to be Available for Loan Awards - ($6,523,277) Total Fund Need Remaining for Projects on the Priority List and After Planning List = ($1,523,277)

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL EC CAPITALIZATION GRANT SET-ASIDES

FFY 2024 BIL EC Cap Grant Federal Set-Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administration $56,778 $56,778 $56,778 $56,778 $227,113 Small System Tech Assist $40,665 $40,665 $40,665 $40,665 $162,660 Local Asst. & Other St. Programs $304,988 $304,988 $304,988 $304,988 $1,219,950 Total: $402,431 $402,431 $402,431 $402,431 $1,609,723

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2022 Cap Grant No. 1 of 4

st Quarter FFY-2024 $2,033,250 $2,033,250 FFY-2022 Cap Grant No. 2 of 4 2nd Quarter FFY-2024 $2,033,250 $4,066,500 FFY-2022 Cap Grant No. 3 of 4 3rd Quarter FFY-2024 $2,033,250 $6,099,750 FFY-2022 Cap Grant No. 4 of 4 4th Quarter FFY-2024 $2,033,250 $8,133,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$2,033,250 $2,033,250 2nd Quarter

$2,033,250 $4,066,500 3rd Quarter

$2,033,250 $6,099,750 4th Quarter

$2,033,250 $8,133,000

APPENDIX E – EMERGING CONTAMINANTS TESTING

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Small System Technical Assistance Set-Aside & Local Assistance and Other State Programs Set-aside of the DWSRF EC in an Emerging Contaminants Testing Program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in testing their system to identify emerging contaminants for treatment projects. Emerging contaminants are defined as those listed on EPA’s Contaminant Candidate Lists (CCL1- CCL5).

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the BIL EC FFY-2022 Cap Grant to provide funding for EC Test to ultra small systems serving a population of 300 or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services to water systems with a population of less than 300. This assistance with will be available on a first-come, first-serve basis to water systems serving a population of 300 or less.

The state intends to use the first 10% of the 15% set-aside amount which is allowed from the FFY-2022 BIL EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 1,000 but greater than 300 that are not currently required to sample for UCMR-5.

The state intends to use the remaining 5% of the 15% set-aside amount which is allowed from the FFY-2022 EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 3,300 and greater than or equal to 1,000 that are not currently required to sample for UCMR-5.

With approval by the Board, the state intends to use this set-aside to fund contract(s) for providing professional services for EC testing to water systems of three separate size categories: A.) ultra-small systems serving a population of 300 or less B.) very small systems serving a population of less than 1,000 and greater than or equal to 300 and C.) small systems

VII

serving a population of less than 3,300 and greater than or equal to 1,000. This assistance will be available on a first-come, first-serve basis to water systems serving a population that falls within these categories.

The activities described herein will be accomplished through a four-part process: identification of testing projects from our priority list and/or communication with the Program’s Project Management Staff or the Department’s Regional Engineers; communication with public water supply; mobilization of contractor to identified site to develop plans and perform testing; and confirmation that the work has been performed.

Communication – Staff from the contractor will meet with system officials to inform them of the program, explain what Emerging Contaminants Testing looks like for their system, and encourage them to take advantage of funding through our program.

Mobilization – Once the communication phase has been completed and the system request to move forward, staff of the contractor will mobilize to the selected site and commence with the plan and testing of the System’s drinking water. Acceptable methods of testing will be determined and outlined by the Department then communicated to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for an Emerging Contaminants Treatment Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Emerging Contaminants Testing Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

The success of these set-asides will be defined by the ability of the MSDH through the solicited contractor(s) to identify, plan, and assist water systems in Emerging Contaminants Testing that lead to Emerging Contaminants Treatment Projects to create safer drinking water for all consumers of Mississippi’s drinking water.

VIII

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2022 and After Planning List” for the purpose of funding such a project during FFY-2022 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

xii

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

xiii

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 15: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM BIL EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2022

Approved by the Board 6/30/20237/28/2023

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

xiv

(Blank)

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND BIL EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2022

TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................................. 1 A. STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND .......................... 1 B. PROGRAM OVERVIEW .................................................................................................................... 2 C. PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES .............................................................. 2 II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF) PROGRAM – EC FUND ................................................... 3 A. OVERALL GOAL: ............................................................................................................................ 3 B. FIVE-YEAR GOALS ......................................................................................................................... 3 III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ......................................................................... 3 A. DWSIRLF BIL EC LOAN/OPERATIONS FUND ............................................................................ 4 1. Types of Eligible Projects: ........................................................................................................................... 4 2. Set-aside Accounts: ...................................................................................................................................... 4 IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................... 4 A. SOURCE AND USE OF FUNDS .......................................................................................................... 4 B. FINANCIAL PLANNING PROCESS.................................................................................................... 5 1. Application for the Full Amount of the BIL EC Cap Grant.......................................................................... 5 2. Interest Rate Determination ......................................................................................................................... 5 C. FINANCIAL TERMS OF LOANS ........................................................................................................ 5 1. Funding Limit ............................................................................................................................................... 5 2. Interest Rate ................................................................................................................................................. 5 3. FFY-2022 BIL EC Cap Grant Special Provisions ....................................................................................... 6 4. Other Related Issues .................................................................................................................................... 6 V. SET-ASIDE ACTIVITIES ................................................................................................................ 7 A. ADMINISTRATION ........................................................................................................................... 7 B. SMALL SYSTEM TECHNICAL ASSISTANCE .................................................................................... 7 C. STATE PROGRAM MANAGEMENT .................................................................................................. 8 D. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS .................................................................. 8 VI. PRIORITY SYSTEM ........................................................................................................................ 8 A. FUNDING AND RANKING RATIONALE ............................................................................................ 8 1. Funding Lists and Bypass Procedure ........................................................................................................... 9 2. Loan Decreases ............................................................................................................................................ 9 3. Subsidization from FFY-2022 EC Cap Grant .............................................................................................. 9 C. PRIORITY RANKING CRITERIA .................................................................................................... 12 D. PRIORITY SYSTEM DEADLINES .................................................................................................... 13

xvi

VII. FFY-2024 BIL EC PRIORITY LIST ...................................................................................... 15 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ................ 16 APPENDICES APPENDIX A – FUNDS REPORT .......................................................................................................... II APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL EC CAPITALIZATION GRANT SET-ASIDES ............................................................................................................................. III APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE...... IV APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ............................................................................................. V APPENDIX E – EMERGING CONTAMINANTS TESTING ............................................................. VI APPENDIX F - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN VIII APPENDIX H – INFRASTRUCTURE INVESTMENT AND JOBS ACT ......................................... XI I. INTRODUCTION .............................................................................................................................. 1 A. STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND .......................... 1 B. PROGRAM OVERVIEW .................................................................................................................... 2 C. PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES .............................................................. 2 II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF) PROGRAM – EC FUND ................................................... 3 A. OVERALL GOAL: ............................................................................................................................ 3 B. FIVE-YEAR GOALS ......................................................................................................................... 3 III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ......................................................................... 3 A. DWSIRLF BIL EC LOAN/OPERATIONS FUND ............................................................................ 4 1. Types of Eligible Projects: ........................................................................................................................... 4 2. Set-aside Accounts: ...................................................................................................................................... 4 IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................... 4 A. SOURCE AND USE OF FUNDS .......................................................................................................... 4 B. FINANCIAL PLANNING PROCESS.................................................................................................... 5 1. Application for the Full Amount of the BIL EC Cap Grant.......................................................................... 5 2. Interest Rate Determination ......................................................................................................................... 5 C. FINANCIAL TERMS OF LOANS ........................................................................................................ 5 1. Funding Limit ............................................................................................................................................... 5 2. Interest Rate ................................................................................................................................................. 5 3. FFY-2022 BIL EC Cap Grant Special Provisions ....................................................................................... 6 4. Other Related Issues .................................................................................................................................... 6 V. SET-ASIDE ACTIVITIES ................................................................................................................ 7 A. ADMINISTRATION ........................................................................................................................... 7 B. SMALL SYSTEM TECHNICAL ASSISTANCE .................................................................................... 7 C. STATE PROGRAM MANAGEMENT .................................................................................................. 8 D. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS .................................................................. 8 VI. PRIORITY SYSTEM ........................................................................................................................ 8

xvii

A. FUNDING AND RANKING RATIONALE ............................................................................................ 8 1. Funding Lists and Bypass Procedure ........................................................................................................... 9 2. Loan Decreases ............................................................................................................................................ 9 3. Subsidization from FFY-2022 EC Cap Grant .............................................................................................. 9 C. PRIORITY RANKING CRITERIA .................................................................................................... 12 D. PRIORITY SYSTEM DEADLINES .................................................................................................... 13 VII. FFY-2024 BIL EC PRIORITY LIST ...................................................................................... 15 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ................ 16 APPENDICES I APPENDIX A – FUNDS REPORT .......................................................................................................... II APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL EC CAPITALIZATION GRANT SET-ASIDES ............................................................................................................................. III APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE...... IV APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ............................................................................................. V APPENDIX E – EMERGING CONTAMINANTS TESTING ............................................................. VI APPENDIX F - CERTIFICATIONS .................................................................................................. VIII APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT ......................................... XI

xviii

I. INTRODUCTION

D. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA) of 2021, (P.L. 117-8) additionally amended Section 1452 of the SDWA and appropriated funds for emerging contaminants in drinking water with a focus on perfluoroalkyl and polyfluoroalkyl substances (PFAS). This Intended Use Plan identifies the State of Mississippi’s proposed use of Federal Fiscal Year (FFY) 2022 DWSRF Emerging Contaminants allotment of $8,133,000.

The DWSRF program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low-cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low-cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

The DWSIRLF BIL Emerging Contaminant (EC) Fund consists of federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. No State matching funds are required to be deposited into this Fund.

E. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2022. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year. This draft BIL EC IUP for FFY-2024 (dated June 29, 2023) will accompany the Program’s application to EPA for the FFY-2022 EC Cap Grant.

The amount of the FFY-2022 Cap Grant from EPA for Mississippi for BIL EC appropriation is for $8,133,000. The Program intends to apply for set-asides as described in Section V. These funds must be used in the period of July 2023 through June 2026. As a condition of the FFY-2022 Cap Grant the program agrees to comply with DWSRF regulations, the general grant regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to enter data into SRF Data System no less than quarterly. The FFY-2024 IUP will show in detail the goals (overall and five-year), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518.

F. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding is scheduled for 9:00 a.m. on July 28, 2023. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program – EC Fund

The EC Fund was created by the BIL to provide funding through the DWSIRLF Program for a five-year duration. The following are the Overall and Five-Year Goals for the EC Fund: B. Overall Goal:

Improve public health by providing funding and technical support to public water systems in Mississippi to DWSIRLF-eligible projects to address emerging contaminants in drinking water with a focus on PFAS. Emerging contaminants are defined as those listed on EPA’s Contaminant Candidate Lists (CCL1- CCL5).

B. Five-Year Goals

Identify issues with PFAS constituents in drinking water in water systems serving a population less than 3,300 through financial and technical support for water system sampling of the same.
Reduce the exposure of the public in Mississippi PFAS and other emerging contaminants in drinking water through providing technical and financial assistance to water systems.

III. Structure of the Mississippi DWSIRLF

The Mississippi DWSIRLF BIL EC is structured around one fund. The portion of the fund designated for projects will consist of 100% principal forgiveness. The funds are broken down further into designated accounts, each having a specific function.

A. DWSIRLF BIL EC Loan/Operations Fund

Monies in the Fund support a majority of the functions of the DWSIRLF EC. These functions include program administration, set-aside operations, and most importantly provide disbursements to public water systems for eligible projects. The DWSIRLF EC is a reimbursement program, meaning that after the loan is awarded, costs associated with planning, designing, and constructing the project are reimbursed to the recipient. Cap grants from EPA will be deposited into this Fund’s account.

Types of Eligible Projects:

For a project to be eligible for funding under the BIL EC fund, projects must be: 1.) otherwise DWSRF program eligible and 2.) the primary purpose must be to address emerging contaminants in drinking water with a focus on PFAS. Projects that address any contaminant listed on any of EPA’s Contaminant Candidate Lists (CCL1- CCL5) are eligible.

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following as part of the FFY-2024 IUP: a. Administrative Set-aside: Provides financial support to administer the EC loan Program and other non-project-related activities. b. b. Local Assistance and Other State Programs: Provides funding for PFAS sampling of water systems with population less than 3,300. These water systems are not required to sample for UCMR-5 unregulated contaminants in 2023.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF EC Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

Using the FFY-2022 EPA BIL EC Capitalization Grant allotment for Mississippi of $8,133,000 to provide for both loans and set-aside activities.

The FFY-2022 “Set-aside” use for the BIL EC Cap grant are outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found in the appendices of this IUP.

B. Financial Planning Process

In accordance with the Board's desire to maintain a financially sound DWSIRLF loan Fund in perpetuity, while at the same time meeting a substantial portion of the drinking water needs pertaining to projects that address emerging contaminants in drinking water in the state within a reasonable period of time, the following financial decisions were made regarding the Fund:

Application for the Full Amount of the BIL EC Cap Grant

The Board intends that the MSDH apply for the full amount of the State EC Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. No State match is required for the FFY-2022 EC Cap grant.

Interest Rate Determination

The EC Cap Grant project portion requires 100% principal forgiveness to loan recipients. There may be a small amount of interest accrued before principal forgiveness is applied. It is the Board’s decision to offer 0% interest on DWSIRLF loans from the BIL EC fund.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2024 IUP, the Board has set a maximum loan amount of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2022, no more than one loan per borrower will be allowed. At the end of the fiscal year, if funds are available, systems previously receiving an award during FFY-2022 may obtain an additional award(s) or an increase to a previous FFY-2022 award, if no other eligible systems are evident.

Interest Rate

Terms for BIL EC loans (There may be a small amount of interest accrued before 100% principal forgiveness is applied) will be 0% interest rate, with a repayment period of five years for all projects.

Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

FFY-2022 BIL EC Cap Grant Special Provisions

The FFY-2022 BIL EC Cap Grant requires 100% subsidization of the BIL EC Cap Grant amount available for projects. This subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two.

Other Related Issues

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: v. The debt is for work that has begun after the DWSIRLF loan award date. vi. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. vii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. viii. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The EC Priority List for the FFY-2024 IUP expires on January 2, 2024. Projects listed in the FFY-2024 EC Priority List that do not receive funding by this date will not be funded under the FFY-2024 EC IUP and will

be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2024 EC projects is shown in Section VIII of this IUP. To facilitate the use of federally appropriated funds from the FFY-2022 BIL EC Cap Grant, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The FFY-2022 EC Capitalization Grant amount of $8,133,000, the state plans to use $1,517,610609,723 of the FFY-2022 EC Capitalization grant to support set-aside activities, further defined in the following Sections A and B. These non-project- related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this EC IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take set-asides for Small Systems Technical Assistance and State Program Management from the FFY- 2022 EC Cap Grant but reserves the right to make revisions to utilize additional funds from this set-aside.

E. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the Administrative Set-Asides that can be taken the greatest of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal to 4 percent of all grant awards to the fund for the fiscal year. The EPA Combined SRF BIL Implementation Memo dated March 8, 2022, states that set-asides for the EC Cap Grant are consistent with the DWSRF regulations. The State plans to use the maximum allowable (4%) for "Administrative" purposes from the FFY-2022 EC Cap Grant.

The state will continue to exercise its right to reserve the administrative amounts from previous Cap Grants. Reserving previous years’ 4% administrative set-aside can ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program.

F. Small System Technical Assistance

the state intends to use this set-aside to fund a contract for providing professional services to water systems with a population of less than 300. This assistance with will be available on a first-come, first-serve basis to water systems serving a population of 300 or less. More detail is provided in the State of Mississippi’s Set-Aside Work Plan included as Appendix E to this IUP.

G. State Program Management

The state intendsdoes not intend to use the full 10%this set-aside from the FFY- 2022 LSLREC Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management related to LCRR and LSLR. The program reserves the right to these funds willin amended or future application to be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. However, a work plan for these activities is still being developed.

H. Local Assistance and Other State Programs

VI. Priority System

The SDWA provides the state with the flexibility to determine how to best utilize the EC Cap grant. To meet the goals of public water systems in the State of Mississippi and this FFY-2024 EC IUP, those projects which meet the following will be given priority:

Are DWSIRLF-eligible and address the most serious risk to human health related to identifying and addressing emerging contaminants in drinking water, with a focus on PFAS. 5. Assist systems most in need, on a per household basis. 6. Prioritize addressing PFAS in drinking water over other eligible emerging contaminants.

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure

Should any projects on the FFY-2024 EC Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed, and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest-ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available. 6. Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Subsidization from FFY-2022 EC Cap Grant

The FFY-2022 BIL EC Cap Grant mandates 100% of the projects part of the Grant be provided as subsidization to loan recipients. Based on the Grant of $8,133,000

and set-aside amount of $1,545,270, a minimum of $6,587,730 in subsidization is required. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supply loan recipients, and which received reimbursements with Federal EC Cap Grant funds during the lifetime of the project, from loan initiation through loan closeout. If the amount of PF which a project is eligible exceeds the amount of Federal EC Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two-year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two-year period. Subsidization for FFY-2024 EC Priority List projects may be awarded to projects eligible for PF in FFY-2025 and FFY-2026.

Disadvantaged Community Program

b. DWSRF EC Capitalization Grant Funds

During FFY-2024, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of the BIL of 2021 (P.L. 117-8) for providing subsidy to water systems for addressing emerging contaminants in drinking water. 100% principal forgiveness will be available for the project portion of the FFY-2022 EC Cap Grant to loan recipients. The FFY-2022 EC federal appropriation for the Program is $8,133,000. The project portion of the FFY- 2022 EC Cap Grant is $6,587,730. The principal forgiveness (100%) available to eligible borrowers is $6,587,730.

All BIL EC projects will receive 100% Principal Forgiveness.

PF will be extended to projects until all mandated subsidy funds are obligated. The amount of PF given will be assigned at loan award.

In the event that a LR declines their loan that includes PF, the released PF may be reallocated to other projects for the present fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

DWSRF EC Priority System

Project Categories applicable to the DWSRF Base/Supplemental IUP that have been eliminated from this EC IUP because they are not applicable are Categories I through XII. Projects for the EC Priority List will be ranked within Category XIII in priority order. for the remaining categories Adjustments are made as necessary to comply with the set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a) (2) of SDWA]. As stated previously, the order of Categories I - XIII is intended to give highest priority to those projects that address the most serious risks to human health and that address emerging contaminants in drinking water. Projects will be ranked as described in Section C.

All projects must meet the requirement of the EC Cap Grant appropriation; that they are 1.) otherwise DWSRF program eligible and 2.) the primary purpose must be to address emerging contaminants in drinking water with a focus on PFAS.

Category XIII – Other This category includes projects that do not meet the criteria of any other listed category and have been determined EC loan eligible in accordance with the DWSIRLF program regulations.

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA; (3) encourage participation in short-term and long-term technical assistance programs; and (4) encourage certifying and providing support for a system’s Asset Management Plan. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi ($46,511) to the MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5.

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity

Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Any water system certifying and providing support of their Asset Management Plan’s implementation or maintenance to MSDH will be eligible to receive additional priority points equal to 10% of their Adjusted Benefit/Cost Points.

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Affordability Points + Assistance Program Points + Asset Management Plan Points

D. Priority System Deadlines

By January 2, 2024, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from

the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

By May 1, 2024, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2024 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2024 IUP.
By August 1, 2024, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval.

VII. FFY-2024 BIL EC PRIORITY LIST Fiscal Year - 2022 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List – BIL Emerging Contaminants

Project Project Description Zip Code Priority Points Service Area Population Eligible PF Amount Loan Amount Request Statewide Cum. $ Category IX: Existing Facilities Upgrade (Meeting Primary Standards)

Jackson, City of Study, Design & Construction, Emerging Contaminants 39216 11099 155000 $5,000,000 $5,000,000 $5,000,000

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2022 EC IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2024 EC IUP and funding projects shown on the FFY-2022 EC Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2022 BIL EC Cap Grant.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2022 EC IUP and Set-Aside Work Plan.

APPENDICES

APPENDIX A – FUNDS REPORT DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM - EMERGING CONTAMINANTS FUNDS REPORT - JUNE 2023

FFY-2022 Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $8,133,000 State Match Required (20% of Mississippi's Allotment) + $0 2022 Capitalization Grant for DWSRF w BIL Supplemental = $8,133,000

33 Miss. Admin. Code Pt. 15, R. 2022 Rule 2022

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - the greater of: $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award] + $135,000227,113 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $162,660 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $1,219,950 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total 2022 Cap Grant Set-Asides = $1,517,610609,723

33 Miss. Admin. Code Pt. 15, R. 2022 Rule 2022

Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & BIL Supplemental Grants + $8,133,000 Cap Grant Set-asides - ($1,517,610609,723) Total Cap Grant Funds Available for Loan Obligation = $6,615,390523,277

Funds Anticipated to be Available for Loan Awards 2022 Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $6,615,390523,277 Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $6,615,390523,277

Funds Needed for Projects on the FFY-2022 Priority List and FFY-2023 & After Planning List Funds Needed for Projects on the Priority List & FFY-2023 and After Planning List + $5,000,000 Funds Anticipated to be Available for Loan Awards - ($6,615,390523,277) Total Fund Need Remaining for Projects on the FFY-2022 Priority List and FFY- 2024 & After Planning List = ($1,615,390523,277)

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL EC CAPITALIZATION GRANT SET-ASIDES

FFY 2024 BIL EC Cap Grant Federal Set- Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administratio n $33,75056,778 $33,75056,778 $33,75056,778 $33,75056,778 $135,000227,113 Small System Tech Assist $40,665 $40,665 $40,665 $40,665 $162,660 Local Asst. & Other St. Programs $304,988 $304,988 $304,988 $304,988 $1,219,950 Total: $379,403402,43

$379,403402,43

$1,517,610609,72

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2022 Cap Grant No. 1 of 4

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$2,033,250 $2,033,250 2nd Quarter

$2,033,250 $4,066,500 3rd Quarter

$2,033,250 $6,099,750 4th Quarter

$2,033,250 $8,133,000

APPENDIX E – EMERGING CONTAMINANTS TESTING

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Small System Technical Assistance Set-Aside & Local Assistance and Other State Programs Set-aside of the DWSRF EC in an Emerging Contaminants Testing Program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in testing their system to identify emerging contaminants for treatment projects. Emerging contaminants are defined as those listed on EPA’s Contaminant Candidate Lists (CCL1- CCL5).

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

VII

Mobilization – Once the communication phase has been completed and the system request to move forward, staff of the contractor will mobilize to the selected site and commence with the plan and testing of the System’s drinking water. Acceptable methods of testing will be determined and outlined by the Department then communicated to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for an Emerging Contaminants Treatment Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Emerging Contaminants Testing Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

VIII

APPENDIX F - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

In Development

APPENDIX G - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2022 and After Planning List” for the purpose of funding such a project during FFY-2022 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX HG – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

IV. Funding The bill appropriates $30.713 billion for the Drinking Water State Revolving Funds (SRFs) over five years. (This is actual funding.) (See Division J – Appropriations, Title VI Department of Interior, Environment and Related Agencies, State and Tribal Assistance Grants: Starts on page 2,565 of the bill.)

V. Reauthorization & Policy The bill includes The Drinking Water and Wastewater Infrastructure Act (S. 914) which reauthorizes funding levels for the SRFs and amends SRF provisions in the Clean Water Act and the Safe Drinking Water Act. (See Division E – Drinking Water and Wastewater Infrastructure: Starts with Section 50001 on page 1,887 of the bill.)

VI. Buy America / Buy American The bill expands domestic preference procurement provisions for programs across government, including the SRFs. (See Division G – Other Authorizations, Title IX Build America, Buy America: Starts with 70901 on page 2,303 of the bill.)

IV. Funding

xii

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

V. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

xiii

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

VI. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

Part 16 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 16 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 16: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

DISASTER RELIEF SUPPLEMENTAL APPROPRIATION INTENDED USE PLAN - AMENDMENT

Approved by the Board 6/26/2026

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

DISASTER RELIEF SUPPLEMENTAL APPROPRIATION

INTENDED USE PLAN

TABLE OF CONTENTS

CONTENTS

INTRODUCTION .............................................................................................................................. 5
STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND .......................... 5
PROGRAM OVERVIEW .................................................................................................................... 6
DISASTER RELIEF SUPPLEMENTAL APPROPRIATION – CITY OF JACKSON ................................ 6
PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES .............................................................. 7

II. GOALS 7

A. SHORT-TERM GOALS ..................................................................................................................... 8

B. LONG-TERM GOALS ....................................................................................................................... 8

III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ......................................................................... 8

A. SRF AWARDS .................................................................................................................................. 8

Types of Eligible Projects: ......................................................................................................................... 9
Set-aside Accounts: .................................................................................................................................... 9 B. DWSIRLF STATE MATCH FUNDS ................................................................................................. 9 IV. FINANCIAL STATUS ....................................................................................................................... 9 A. SOURCE AND USE OF FUNDS .......................................................................................................... 9 B. FINANCIAL TERMS OF LOANS ...................................................................................................... 10 V. SET-ASIDE ACTIVITIES .............................................................................................................. 10 A. ADMINISTRATION ......................................................................................................................... 10 B. SMALL SYSTEM TECHNICAL ASSISTANCE .................................................................................. 10 C. STATE PROGRAM MANAGEMENT ................................................................................................ 11 D. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ................................................................ 11 VI. PRIORITY SYSTEM ...................................................................................................................... 11 A. PRIORITY RANKING CATEGORIES .............................................................................................. 11 B. PRIORITY RANKING CRITERIA .................................................................................................... 14 VII. EQUIVALENCY REQUIREMENTS ............................................................................................. 16 VIII. PRIORITY LIST ..................................................................................................................... 17 VIIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES 19 APPENDICES 20 APPENDIX A: CITY OF JACKSON WORKPLAN FOR THE SUPPLEMENTAL APPROPRIATION ................................................................................................................................... 21

APPENDIX B - CERTIFICATIONS ..................................................................................................... 28

I. INTRODUCTION

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low-cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low-cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program (Program) are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds; however, the State legislature has provided the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey

the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2023 to EPA, other state agencies, the State’s public water supplies, and the public.

B. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2022. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year.

C. Disaster Relief Supplemental Appropriation – City of Jackson

The Consolidated Appropriations Act, 2023, (H.R. 2617 p.759), provided additional funding for the Clean Water and Drinking Water State Revolving Funds (SRFs) and the U.S. Environmental Protection Agency (EPA) to address national disasters and emergencies. Congress provided $450 million in Drinking Water SRF to States or Territories in EPA Region 4 in amounts determined by the Administrator in areas where there the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). Other than the City of Jackson’s public drinking water systems (i.e., PWS ID MS0250008 a surface water system and PWS ID MS0250012 a groundwater system, and appurtenant treatment, storage, and distribution facilities’), the program knows of no other recipient eligible to receive funding related to this appropriation. The law waives match requirements and requires 100% of funding to be used as additional subsidy in the form of principal forgiveness, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt or any combination. The Act also authorizes the EPA to retain up to $1 million of the appropriation for administrative management and oversight. For ease of reference, the State of Mississippi and EPA will refer to this appropriation as the City of Jackson – Supplemental Appropriation.

Pre Public Law 119-37, Section 154, Of the amounts made available in the third paragraph under the heading ‘‘Environmental Protection Agency—State and Tribal Assistance Grants’’ in the Disaster Relief Supplemental Appropriations Act, 2023 (division N of Public Law 117–328), up to $54,000,000 shall be available for technical assistance and grants under section 1442(b) of the Safe Drinking Water Act (42 U.S.C. 300j–1(b)) in areas where the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.): Provided, That amounts repurposed pursuant to this section that were previously designated by the Congress as being for an emergency requirement pursuant to section

4001(a)(1) of S. Con. Res. 14 (117th Congress), the concurrent resolution on the budget for fiscal year 2022, and section 1(e) of H. Res. 1151 (117th Con gress), as engrossed in the House of Representatives on June 8, 2022, are designated as being for an emergency requirement pursu ant to section 4001(a)(1) of S. Con. Res 14 (117th Congress), the concurrent resolution on the budget for fiscal year 2022, and to legislation establishing fiscal year 2026 budget enforcement in the House of Representatives. D. Public Input, Review, and Comment Procedures

By means of a memorandum, the Board and the Program will notify interested parties through a mass email and post on DFA’s Public Meeting Notices site (MISSISSIPPI PUBLIC MEETING NOTICES (ms.gov)) when the public comment period has been established. Written comments on this document must be received at the address shown below or SRF.drinkingwater@msdh.ms.gov. Please include an email contact in any written communication. The Program will use it to provide confirmation of receipt and feedback as necessary.

Local Governments and Rural Water Systems Improvements Board Attn: Lee Alford, Director, DWSRLF Program Mississippi State Department of Health (MSDH) 570 East Woodrow Wilson Avenue, Suite U-222 (Underwood Building) Post Office Box 1700 Jackson, Mississippi 39215-1700

Additionally public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding was held at 9:00 a.m. on June 25, 2026. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. No public comments were received. Those desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Administrative Coordinator, at (601) 576-843. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. GOALS

The Board has established short-term and long-term goals for the City of Jackson – Supplemental Appropriation. These goals will support EPA’s Objective 5.1 “Ensure Safe

Drinking Water and Reliable Water Infrastructure” in the EPA Strategic Plan (FY 2022- 2026).

A. Short-Term Goals

Assure that these funds are used effectively for drinking water infrastructure projects intended to resolve high priority public health concerns and/or reliability of service concerns as well as other regulatory agency concerns.
Assure that all funds are expended in an expeditious and timely manner to projects that will provide the most benefit or will increase the resiliency of the area.
Assure the fiscal, technical, and managerial integrity of the program by preventing waste, fraud, and abuse. Projects will be inspected as necessary to make certain projects are constructed correctly and efficiently.

B. Long-Term Goals

To finance projects that will contribute to an improved drinking water distribution system and treatment facilities in the areas where the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121et seq.)
To maximize the effectiveness of these funds in providing more resilient systems preparing them for future natural disasters while minimizing the impact of such events.
To allow eligible debt relief to improve the affected areas’ financial capacity to build a sustainable and equitable water financing solution.

III. STRUCTURE OF THE MISSISSIPPI DWSIRLF

The Mississippi DWSIRLF is structured to help it achieve the short-term and long-term goals of the specific program’s outcome as outlined by its IUP. Funds are broken down into designated accounts, each having a specific function.

A. SRF Awards

Monies in the awards include program administration, set-aside operations, and most importantly provide disbursements to public water systems for eligible projects. The DWSIRLF is a reimbursement program, meaning that after the award, eligible costs incurred are reimbursed to the recipient.

Types of Eligible Projects:

Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please reference the EPA DWSRF Eligibility Handbook.

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. The set-asides available through a DW SRF capitalization grant are as follows: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems. c. State Program Management Set-aside d. Local Assistance and Other State Programs

B. DWSIRLF State Match Funds

No match is required for this appropriation.

IV. FINANCIAL STATUS

This section outlines all sources of funding available from the City of Jackson – Supplemental Appropriation and indicates intended uses.

A. Source and Use of Funds

The Consolidated Appropriations Act, 2023, (H.R. 2617 p.759), provided additional funding for the Clean Water and Drinking Water State Revolving Funds (SRFs) and the U.S. Environmental Protection Agency (EPA) to address national disasters and emergencies. Congress provided $450 million in Drinking Water SRF to States or Territories in EPA Region 4 in amounts determined by the Administrator in areas where there the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). The law waives match requirements and requires 100% of funding to be used as additional subsidy in the form of principal forgiveness, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt or any combination. Per the terms of the Consolidated Appropriations Act, 2023, EPA will retain up to $1 million of the City of Jackson – Supplemental Appropriation for administrative management and oversight.

B. Financial Terms of Loans

V. Set-Aside Activities

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the Administrative Set-Asides that can be taken (the greatest of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal to 4 percent of all grant awards to the fund for the fiscal year). The State plans to use a portion of the allowable "Administrative" set-aside from the Appropriation. Preliminarily, the State would like to staff an administrative coordinator and a project manager to help facilitate this funding at an estimated cost of $750,000 over 6 years.

B. Small System Technical Assistance

The state is not authorized to take this set-aside since the City of Jackson does not meet the small system criteria.

C. State Program Management

The state does not intend to use this set-aside. Further coordination with recipient may determine the necessity of this funding at a later date.

D. Local Assistance and Other State Programs

The state does not intend to use this set-aside. Further coordination with recipient may determine the necessity of this funding at a later date.

VI. PRIORITY SYSTEM

address the most serious risk to human health.
ensure compliance with the SDWA requirements.
assist areas most in need, on a per household basis.

A. Priority Ranking Categories

Emergency Projects

The Project Priority List may be amended during the year for declarations of emergencies designated by the Governor (pursuant to §33-15-11(b)(17)) or the State Health Officer (pursuant to §41-26-1 et sec.). The emergency project must meet all eligibility and loan requirements, but the additional public review and comment requirement may be waived. Once an emergency has been declared and the project is determined eligible, Emergency projects will take priority over all other project categories. Any emergency project must be documented in the DWSRF Annual Report and is subject to EPA oversight review.

Standard DWSRF Projects

Projects in Category I are funded each year to the extent funds are available. Projects in Categories II through XI are ranked in priority order; that is, all Category II projects are ranked higher than Category III projects, etc. Ranking is established in like manner through all remaining categories. Adjustments are made as necessary to comply with small community set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a) (2) of SDWA]. As stated previously, the order of Categories II - XI is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section B. Due to the nature of the special appropriation Category I & Category II are not applicable.

Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well nor an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi.

Category VI - Source Water Protection Projects This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems source water assessment plan report (swapr) prepared by the Mississippi department of environmental quality’s groundwater planning branch (deq-gpb). If the public water system has not received its swapr from the deq-gpb yet, or has documentation that may change its swap, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the deq-gpb before the project will be deemed eligible.

The projects will be ranked: first in order of the highest source water classification that would be negatively impacted by source water contaminants; secondly, within each classification in order of the public water systems susceptibility assessment ranking as determined by the deq-gpb; and thirdly, within each susceptibility assessment ranking in order of the highest number of connections served by the public water system. Source water classifications will be ranked in the following order: surface water sources; shallow (generally ≤ 300’

in depth) unconfined water wells; shallow (generally ≤ 300’ in depth) confined water wells; and deep confined water wells.

Category VII - System Capacity Expansion to Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.

Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water, and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.

Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category X - Fluoride Addition This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites or add new facilities to existing well or treatment plants.

Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.

Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.

Category XIII – Other This category includes projects that do not meet the criteria of any other listed category and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

B. Priority Ranking Criteria

The criteria for ranking Standard DWSRF projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA (3) use consolidation with other systems to correct existing deficiencies and improve management; (4) take into consideration the system’s current capacity; (5) encourage participation in short-term and long-term technical assistance programs; and (6) encourage an Asset Management Plan participation in the Drinking Water Needs Survey. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi ($49,111) to the MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5.

Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies

and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest-ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

VII. EQUIVALENCY REQUIREMENTS

All City of Jackson – Supplemental Appropriation funds are federal funds and therefore all equivalency requirements apply to projects they are used to finance. One exception to this rule is the Build America, Buy America (BABA) Act. EPA has determined that the requirements of the BABA Act do not apply to the City of Jackson – Supplemental Appropriation and the projects on this IUP.

VIII. PRIORITY LIST Supplemental Appropriation Priority List

Category Project Project Description Zip Priority Service Area Project Loan Amount Statewide Cum. $

Points Population Status Requested

III: Primary Drinking Water Standards Projects

Jackson, City of Intake Structure Repair 39215 11099 166000 R $5,500,000 $5,500,000 IX: Existing Facilities Upgrade (Meeting Primary Standards)

Jackson, City of LCRI Potholing Validation as required 39215 60329 166000 R $950,500 $6,450,500

Jackson, City of Second Connection to Merit Hospital 39215 54770 166000 R $1,046,975 $7,497,475

Jackson, City of Improve Pressure to Hospital 39215 46034 166000 P $1,245,652 $8,743,127

Jackson, City of Replace Inoperable Valves Citywide 39215 21358 166000 R $2,684,823 $11,427,950

Jackson, City of Replace Inoperable Fire Hydrants Citywide 39215 17137 166000 R $3,346,083 $14,774,033

Jackson, City of Replacement of 3200 ft of Waterline 39215 13263 166000 R $4,323,364 $19,097,397

Jackson, City of JHF WTP Conversion 39215 13223 166000 R $5,000,000 $24,097,397

Jackson, City of Replacement of 2000 ft of Waterline 39215 11075 166000 R $5,177,848 $29,275,245

Jackson, City of Emergency Small Diameter Pipe Replacement 39215 10708 166000 F $5,182,149 $34,457,394

Jackson, City of Improve Low Pressure and Water Distribution 39215 8822 166000 P $6,499,653 $40,957,047

Jackson, City of Small Pipe Diameter Replacement Choctaw Village 39215 7999 166000 I $7,210,350 $48,167,397

Jackson, City of Replacement of 12000 ft of Waterline 39215 7693 166000 R $7,454,316 $55,621,713

Jackson, City of Install 30" Waterline 39215 6377 166000 R $8,992,228 $64,613,941

Jackson, City of Well System Rehabilitation 39215 5749 166000 P $11,500,000 $76,113,941

Jackson, City of SCADA System 39215 4934 166000 I $25,153,954 $101,267,895

Jackson, City of Improve Pressure in S. Jackson 39215 4805 166000 P $11,935,106 $113,203,001

Jackson, City of Raw Water Pump Rehabilitation- OB Curtis 39215 4408 166000 I $15,000,000 $128,203,001

Jackson, City of Pumping Station/ New Transmission Lines 39215 4275 166000 R $13,412,348 $141,615,349

Jackson, City of Emergency Distribution System Optimization 39215 2804 166000 F $19,793,757 $161,409,106

Jackson, City of Chemical Feed Repair 39215 2755 166000 I $67,000,000 $228,409,106

Jackson, City of Treatment Process Renewals 39215 2699 166000 I $53,424,000 $281,833,106

Jackson, City of Residuals System Upgrade OB Curtis 39215 2328 166000 I $28,400,000 $310,233,106

Jackson, City of Small Diameter Pipe Replacement Broadmoor 39215 1749 166000 I $6,024,714 $316,257,820

Jackson, City of Distribution System Optimization 39215 578 166000 R $96,057,100 $412,314,920

Jackson, City of 20" Diameter Transmission Replacement 39215 4 166000 I $16,733,354 $429,048,274 XIII: Other

Jackson, City of Emergency Lead Service Line Inventory 39215 18696 166000 F $2,968,198 $432,016,472

Jackson, City of Debt Retirement 39215 2018 166000 F $28,416,978 $460,433,451

Jackson, City of Resilient Power Facilities - OB Curtis 39215 1745 166000 I $31,800,000 $492,233,451

Jackson, City of COJ Special Obligation Bonds Series 2013 39215 1588 166000 F $34,940,271 $527,173,722

Project Stage: I - Initial Loan Agreement A - Loan Amendment F - Final Loan R - Request Received P - Loan Pending

Note: All projects appearing on the IUP are associated with this public drinking water system. Projects listed above are based in good faith from representation provided by the borrower. The program is a reimbursement program. Requests for reimbursement will be reviewed to ensure conformity with eligibility requirements and compliance with applicable state and federal laws and regulations before funds are reimbursed.

VIIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the Disaster Relief Supplemental Appropriation of 2023 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the IUP and funding projects shown on the Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the affected area. Funding of projects will be determined by the amount of funding awarded.

The success of the funding will be defined by the ability of the MSDH to successfully meet commitments in this DWSRF Work Plan.

Additionally, the projects should have minimal impact on the environment due to the nature of their design. Where necessary, appropriate environmental reviews will occur and proper permitting through the Mississippi Department of Environmental Quality will be required to ensure minimal impact on the environment.

APPENDICES

APPENDIX A: CITY OF JACKSON WORKPLAN FOR THE SUPPLEMENTAL APPROPRIATION The information following this paragraph is the City of Jackson’s proposed work plan developed by the court appointed Interim Third-Party Manager as submitted to the program. Elements of this work plan will be moved to the IUP’s Priority List once the EPA and the State have determined that the project/activity is eligible for assistance through this appropriation/ DW SRF program.

Description Loan Amount 2025 ($M) Total Project Cost ($M) Loan Status Chemical Feed Repair OBC (Loan #1) $67.6 $67.6 Approved Emergency Distribution System Optimization (Loan #2) $19.8 $19.8 Approved Emergency Small Diameter Pipe Replacement (Loan #3) $5.2 $5.2 Approved Emergency Lead Service Line Inventory (Loan #4) $3.0 $3.0 Approved Emergency Reimb for Eligible Infrastr Materials (Loan #5) $34.9 $34.9 Approved Treatment Process Renewals (Loan #6) $53.4 $53.4 Approved SCADA System (Loan #7) $25.2 $25.2 Approved Choctaw Village 2310 (Loan #8) $7.2 $7.2 Approved Resilient Power Facilities for OBC (Loan #9) $31.8 $31.8 Approved (to be Amended +) OBC Raw Water Pump Replacement (Loan #10) $15.0 $15.0 Approved (to be Amended -) OBC Residuals System Upgrade (Loan #11) $28.4 $5.5 Approved (to be Amended -) Fortification St (Loan #12) $16.7 $16.7 Approved (to be Amended +) Broadmoor/Brown (Small Dia 2311 and 2312) (Loan #13) $6.0 $6.0 Approved Merit Health 2309 (Loan #14) $0.0 $0.0 On Hold Surface Restoration 2328 (Loan #15) $6.8 $6.8 Submitted MMC- 2401 (Loan #16) $1.3 $1.3 Submitted DWSRF Retirement (Loan #17) $28.4 $28.4 Approved Well System Rehabilitation (Loan #18) $11.5 $11.5 Submitted Reallocation from SRF to 1442(b) $54.0 $54.0 Approved Galatin 2308 (Loan #19) $13.4 $13.4 Submitted West/Rankin St 2324 (Loan #20) $10.2 $10.2 Submitted East Oak Forest (Small Dia) 2322 $8.9 $8.9 Current Estimate Maddox/TV Road 2326 $10.3 $10.3 Current Estimate Hydrants $3.2 $3.2 Current Estimate LCRI (Potholing Validation) $1.0 $1.0 Current Estimate

Valves $3.2 $3.2 Current Estimate Oakdale Subdivision/Westside Park 2323/2327 $6.0 $6.0 Current Estimate Briarwood/Canton Heights Rd/North Colony 2329/2330 $5.1 $5.1 Current Estimate JHF Pump Station Conversion $2.5 $2.5 Current Estimate Unit Bid Projects $0.0 $0.0 Removed TOTAL $480.0 $457.1

Legend Approved Loan/Agreement/Project Moving Forward In Process Loan App Submitted - Currently under review Deferred Project Deferred Due to Budgetary Constraints Removed Project Removed. Alternative Funding Utilized Revised Revised/New Budgetary Numbers New New Project Priority Added

Loan Amendment Request Submitted or In Process

INTRODUCTION The City of Jackson received a direct appropriation through the Consolidated Appropriations Act, 2023 to be administered under the Section 1452 of the Safe Drinking Water Act as follows: For an additional amount for ‘‘State and Tribal Assistance Grants’’, $450,000,000, to remain available until expended, for capitalization grants under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12): Provided, That notwithstanding section 1452(a)(1)(D) of the Safe Drinking Water Act, funds appropriated under this paragraph in this Act shall be provided to States or Territories in EPA Region 4 in amounts determined by the Administrator in areas where there the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.): Provided further, That notwithstanding the requirements of section 1452(d) of the Safe Drinking Water Act, for the funds appropriated under this paragraph in this Act, each State shall use 100 percent of the amount of its capitalization grants to provide additional subsidization to eligible recipients in the form of forgiveness of principal, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt or any combination thereof: Provided further, That the funds provided under this paragraph in this Act shall not be subject to the matching or cost share requirements of section 1452(e) of the Safe Drinking Water Act: Provided further, That the Administrator of the Environmental Protection Agency may retain up to $1,000,000 of the funds appropriated under this paragraph in this Act for management and oversight. PROJECT SELECTION PROCESS On November 29, 2022, Henry T. Wingate, United States Federal District Judge in the United States District Court for the Southern District of Mississippi (Northern Division) signed an Interim Stipulated Order in Case No. 3-22-cv-00686-HTW-LGI, the United States of America v the City of Jackson, Mississippi. This order appointed an Interim Third-Party Manager (ITPM) to control the drinking water system in Jackson, serving the residents of Jackson, the town of Byram, and a portion of Hinds County. The Order also included a list of priority projects that were to be completed by the ITPM as expeditiously as possible to ensure safe and reliable drinking water remains available to all customers, at all times. These projects have been programmed with other available funding in the Financial Management Plan developed by the ITPM in January 2023 as updated in April 2024, and those programmed for funding through the State Of Mississippi, Drinking Water Systems Improvements, Revolving Loan Fund Program (DWSRF) in 2024 are included in this appendix. These projects were developed based on knowledge JXN Water is gaining daily, a preliminary CIP developed by Jacobs, preliminary results from Stantec’s analysis of the distribution system, and best engineering practices. PROGRAM ACTIVITIES Distribution System Optimization Over the past year a GIS was completed which enabled completion of a hydraulic model. Additionally valve assessment work found and corrected positions of over 1,000 valves. This data formed the foundation for a complete assessment of the distribution system. Several deficiencies were identified with solutions varying from new pipe segments, increased diameter of existing pipes, pressure booster stations, etc. This project will design and construct these solutions.

Emergency Distribution System Optimization This project is the first of several phases of the Distribution System Optimization project. This first phase began in February 2023, shortly after the Interim Third-Party Manager was appointed by the Interim Stipulated Order. Initial needs were identified as development of tools required to analyze and operate the system, including GIS, a hydraulic model, a work management system, asset management system, and related integrations. The other immediate need was a reduction in water loss, estimated at the time at over 35 MGD. An engineering firm, Stantec, was brought on board to perform the needed services and coordinate water loss reduction efforts to be accomplished by contractors working under this emergency authorization. This first phase also includes three large pipe rehabilitation projects to reduce water loss as well as valve replacements to optimize system operations: • Colonial Golf Course – This specific project was required to rehabilitate the 48-inch diameter transmission main, approximately one-half mile from the OB Curtis Water treatment plant. The project required a significant bypass to maintain service to the 155,000 users during the rehabilitation work. A section of the pipe had failed along the banks of Purple Creek, in the abandoned Colonial Golf Course. The estimated water loss from this location was 5 MGD and had been flowing for more than 5 years. The PCCP pipe was over 35 deep where it went under Purple Creek, making the rehabilitation very complex. • Fortification and Prentiss – This specific project was required to rehabilitate a 20-inch diameter transmission main running along Fortification Street parallel to an active railway facility. Significant leaks along this pipe were threatening the stability of the railbed and need immediate attention. This work included a new railroad crossing and extended southward along Prentiss Avenue. A future phase will continue the rehabilitation along Prentiss Avenue. • Northside Drive – This specific project was required to replace several critical valves on Northside Drive at I-55 that were non-functional and impacting the ability of the water system to operate as designed – creating pressure issue for customers throughout the system. Additionally, one valve had a significant on-going leak that was eroding the pavement at a high-volume interstate access point.

Small Diameter Pipe Replacement A significant factor in the challenges to maintain pressure and water quality in the distribution system is the over 100 miles of piping in the Jackson Water System that is less than 6 inches in diameter, with a majority of that 2-inch diameter galvanized pipe. All small diameter piping needs to be replaced with a minimum of 8-inch diameter pipe. This will improve localized pressure issues, meet current fire protection standards, and will improve aesthetic qualities of the water (taste, odor, color) in homes and businesses served by these 2-inch pipes. This program will replace the 2-inch through 4-inch diameter mains as well as service lines back to the edge of the public rights-of-way. The work will be coordinated with funding for wastewater system improvements to allow replacement of sewer lines in the same streets at the same time – preventing streets from being opened twice.

Emergency Small Diameter Pipe Replacement A significant factor in the challenges to maintain pressure and water quality in the distribution system is the over 100 miles of piping in the Jackson Water System that is less than 6 inches in diameter, with a majority of that 2-inch diameter galvanized pipe. All small diameter piping needs to be replaced with a minimum of 8-inch diameter pipe. This will improve localized pressure issues, meet current fire protection standards, and will improve aesthetic qualities of the water (taste, odor, color) in homes and businesses served by these 2-inch pipes. This program will replace the 2-inch through 4-inch diameter mains as well as service lines back to the edge of the public rights-of-way. The work will be coordinated with funding for wastewater system improvements to allow replacement of sewer lines in the same streets at the same time – preventing streets from being opened twice. This project was initiated using limited competition under emergency procurement methods. Recognizing the significant threat to public health, getting work started on the first phase of small diameter pipe replacement to understand the challenges associated with creating significant disruption in neighborhoods. Getting started on this critical program fast was critical to regaining trust in the water system, so the ITPM declared an emergency in accordance with Mississippi Code §31-7-3. For that reason, the procurement documents do not meet all SRF requirements.

SCADA This project will install a completely new SCADA system providing data to control and manage the entire water system (plants, wells, and distribution system). A fully functional SCADA is necessary for reliable operation of modern water systems. This project will provide that for JXN Water. Chemical Feed Repair (OB Curtis) The chemical feed and disinfection systems and supporting facilities at the O. B. Curtis WTP need to be replaced with safer and more reliable systems. The current systems do not support reliable operation of the WTP process for safe, reliable, and sustainable drinking water. Aluminum chloralhydrate (coagulant), sodium permanganate (oxidizer), coagulant aid polymer, and fluoride system will be replaced with similar processes. The disinfection systems will be transitioned from gas to liquid feeds. The existing chlorine gas system will be replaced with an on-site hypochlorite generation system to feed hypochlorite and the existing ammonia gas system will be replaced with a liquid ammonium sulfate system. Treatment Process Renewals As part of the third-party operation and maintenance of the water treatment plants, a comprehensive process review was conducted to ascertain process improvements required to maintain safety and reliability. This assessment identified various projects that need to be implemented to address condition, reliability, and capacity constraints. This project will address some of the highest priority items identified during the process review and CIP development including improvements to the flocculation and sedimentation basins, permanent liquid lime system, and residuals handling system. DWSRF Retirement

To reduce debt service burden on the system, existing DWSRF debt will be retired with this project. Current payoff is approximately $13.9 million. Emergency Reimbursement for Eligible Infrastructure Materials This project will reimburse JXN Water for eligible infrastructure materials purchased under a contract with Siemens Industries, Inc, entered into on December 28, 2012. The contract was a performance contracting agreement procured in compliance with the State of Mississippi’s performance contracting laws and procedures in effect at that time as evidenced by the approval letter issued by the Mississippi Development Authority on March 29, 2013. This reimbursement request is limited to certain SRF eligible materials including water meters, water meter box lids, associated materials (washers, unions, valves, setters, offsets, etc.), billing system software, and billing system hardware.

Emergency Lead Service Line Inventory This project will inventory the service lines in the City of Jackson’s water system in accordance with the USEPA requirements included in the Lead and Copper Rule Revisions (LCRR). This project is nearly complete with the inventory to be submitted by October 16, 2024. This project requests reimbursement for costs incurred for engineering and the potholing work required to expose and confirm service line materials.

Resilient Power Facilities for OB Curtis This project will add alternative and emergency power facilities to OB Curtis to ensure critical treatment processes can be operated during prolonged failures or disruptions to the Entergy grids serving OBC. Distribution System Upgrades and Replacements This project will replace pipe segments identified as highly likely to fail, undersized, or sources of significant water loss as identified by JXN Water’s ongoing condition assessment. The project will also replace failed valves, install new valves as necessary, new hydrants, and related water distribution infrastructure throughout the JXN Water system. OBC Residuals System Upgrade The residuals system at OBC has failed. Preliminary evaluation indicates it may have significant design issues as well. This project will conduct a complete evaluation of the residuals system and a cost benefit analysis to determine the best life-cycle cost solution for OBC. The solution will be designed and implemented with this project upon completion of the selection of the best cost alternative. Well System Upgrade This project will make needed improvements to the groundwater (well) system operated by JXN Water. This system serves nearly 15,000 connections and needs significant improvements to ensure safe and reliable service. An additional well will be installed, new piping, disinfection facilities, rehabilitation of storage facilities, site security and related improvements will be incorporated into this project.

Distribution Storage Upgrades This project will make needed upgrades and rehabilitations to the storage tanks throughout the JXN Water system. Many of the tanks are in need of repair of structural elements, control valves, circulation and potentially disinfection, monitoring system, and related items to ensure water quality is maintained in the tanks and the system, avoiding DBP issues. OB Curtis HSPS and Backwash Electrical This project will include rehabilitation or replacement of critical electrical components for the backwash and the high-service pumping systems. Intake Structure Repairs (OB Curtis) The intake structure at the Ross Barnett Reservoir has fallen into a state of disrepair. The building that houses needed chemical feed equipment and water quality monitoring sensors needs replacement to protect those systems from the weather. Full water quality sensing at the intake allows operators to see changing raw water conditions to prepare treatment processes for changing water chemistry. Additionally, new flow-paced chemical feed equipment can be directly informed by the raw water data collected at the intake structure, ensuring reliable treatment, and minimizing chemical use. The chemical feed at the intake structure is not functional currently. Feeding chemical at the intake reduces build-up of marine growth in the intake pipes and reduces loading on the screens in the plant. JH Fewell Pump Station Conversion Sixty-three percent of the assets at J.H. Fewell Water Treatment Plant (WTP) are in poor or very poor condition, needing immediate rehabilitation or replacement. Because of the age and physical deterioration of J.H. Fewell WTP, it is recommended to decommission and convert J.H. Fewell WTP to a booster pump station for the distribution system. This project will include decommissioning and converting J.H. Fewell WTP to a booster pump station. Replacement Membranes The project includes the replacement of two of the size aged and damaged membrane cassettes at the O. B. Curtis WTP’s membrane treatment train. The remaining four cassettes are being funded by the USACE. SCHEDULE FOR COMPLETION This program is scheduled to begin immediately and continue through 2029 with additional funding phases in future fiscal year programs. The 2024 plan presented here will obligate a maximum of $125.7M by September 30, 2024. The entire $450M appropriation will be obligated by 2029. EVALUATION PROCESS These investments will be evaluated through the reduction in the need to issue large precautionary boil water notices (more than 500 customers impacted) and system pressure increases as well as improved permit compliance at the water treatment facilities.

APPENDIX B - CERTIFICATIONS

In addition to the assurances included below, the state acknowledges that there are additional assurances that the state has agreed to in both the Operating Agreement between the State and EPA Region IV and the grants associated with the Disaster Relief Supplemental Appropriation of 2023. These two documents are hereby incorporated into this IUP by reference.

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will comply with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Administrative Coordinator, at (601) 576-7843 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 100% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.

The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).
The state certifies that prior to adding any new projects to this “Priority List” for the purpose of funding such a project by this appropriation that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. EPA has approved the current CD program.
The state certifies the State’s Operator Certification Program is currently approved by EPA.
The State is committed to and ensures that program’s activities comply with Title VI of the Civil Rights Act of 1964

Part 18 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan

33 Miss. Admin. Code Pt. 18, R. 2022 Rule 2022

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - either $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award] + $233,906 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $610,360 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $4,297,500 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total 2022 Cap Grant Set-Asides = $5,104,406

33 Miss. Admin. Code Pt. 18, R. 2022 Rule 2022

Cap Grant Funds Available for Loan Obligation 2022 DWSRF Capitalization & BIL Supplemental Grants + $28,650,000 2022 Cap Grant Set-asides - $5,104,406 Total Cap Grant Funds Available for Loan Obligation = $23,545,594

Funds Anticipated to be Available for Loan Awards Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $23,545,594 Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $23,545,594

Funds Needed for Projects on the FFY-2023 Priority List & FFY-2023 & After Planning List Funds Needed for Projects on the Priority List and FFY-2023 & After Planning List + $700,840 Funds Anticipated to be Available for Loan Awards - $23,545,594 Total Fund Need Remaining for Projects on the Priority List and FFY-2023 & After Planning List = $22,844,754

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL LSLR CAPITALIZATION GRANT SET-ASIDES

FFY 2022 BIL LSLR Cap Grant Federal Set-Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administrative $58,477 $58,477 $58,477 $58,477 $233,906 Small System Tech Assist. $143,250 $143,250 $143,250 $143,250 $573,000 Local Asst. & Other St. Programs $1,074,375 $1,074,375 $1,074,375 $1,074,375 $4,297,500 Total: $1,276,102 $1,276,102 $1,276,102 $1,276,102 $5,104,406

APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE (SCHEDULE OF INCREASES TO ACH CEILING)

FFY-2024

FFY-2022 Cap Grant No. 1 of 4

st Quarter FFY-2024 $7,162,500 $7,162,500 FFY-2022 Cap Grant No. 2 of 4 2nd Quarter FFY-2024 $7,162,500 $14,325,000 FFY-2022 Cap Grant No. 3 of 4 3rd Quarter FFY-2024 $7,162,500 $21,487,500 FFY-2022 Cap Grant No. 4 of 4 4th Quarter FFY-2024 $7,162,500 $28,650,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$7,162,500 $7,162,500 2nd Quarter

$7,162,500 $14,325,000 3rd Quarter

$7,162,500 $21,487,500 4th Quarter

$7,162,500 $28,650,000

APPENDIX E – LEAD SERVICE LINE INVENTORY WORKPLAN

INTRODUCTION

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the BIL LSLR FFY-2023 Cap Grant to provide funding for the creation of LSL inventories to small systems serving connections of 750 or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services for lead service line inventories to water systems serving 750 and fewer connections. on a first-come, first-serve basis to water systems serving 750 and fewer connections. The contractual assistance will work though the selected contractor to assist these small systems primarily in the generation of service line inventories including those service lines that may be lead or lead influenced. The contractual assistance may also include support for non-routine lead sampling, funding applications, and/or public engagement.

The state intends to use Local Assistance and Other State Programs Set-Aside a total of 15% to support the creation of the lead service line inventories for the state’s systems that are classified as community systems as defined under the Safe Drinking Water Act. No more than 10% of the 15% will be allocated to creating inventories for systems with 751 to 5000 connections. No more than 10% of the 15% will be allocated to creating inventories for systems serving greater than 5000 connections.

VII

serving connections of greater than 5,000. This assistance with lead service line inventories will be available on a first-come, first-serve basis to water systems serving a population that falls within the three size categories as defined in this section.

The activities described herein will be accomplished through a four-part process: identification of inventory projects from our priority list and/or communication with the Program’s Project Management Staff or the Department’s Regional Engineers; communication with public water supply; mobilization of contractor to identified site to develop plans and inventories; and confirmation that the work has been performed.

Identification – The contractor will survey our priority list and/or communication with the Program’s Project Management Staff or the Department’s Regional Engineers while identifying the proper set-aside category to fund the potential inventory. Systems will have an opportunity through the agency’s website to identify themselves as needing assistance through an online application.

Communication – Information on the identified systems will be passed on to staff from the contractor who will meet with system officials to inform them of the program, explain what Lead Line Inventories looks like for their system, and encourage them to take advantage of funding through our program utilizing information available by MSDH to complete LSL inventories.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for a Lead Service Line Replacement Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Lead Line Inventory Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

VIII

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2023 and After Planning List” for the purpose of funding such a project during FFY-2023 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

XII

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 18: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM BIL LEAD SERVICE LINE REPLACEMENT

INTENDED USE PLAN FOR FFY-2023

Approved by the Board 3/29/2024

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

iii

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 14: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND BIL LEAD SERVICE LINE REPLACEMENT INTENDED USE PLAN FOR FFY-2022

TABLE OF CONTENTS I. INTRODUCTION ......................................................................................................................... 1 A. STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND ......................... 1 B. PROGRAM OVERVIEW ............................................................................................................... 2 C. PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES ........................................................... 2 II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF) PROGRAM – LSLR FUND ............................................. 3 III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ...................................................................... 3 A. DWSIRLF BIL LSLR LOAN/OPERATIONS FUND ..................................................................... 3 1. Types of Eligible Projects: ..................................................................................................................... 4 2. Set-aside Accounts: ................................................................................................................................ 4 IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................ 5 A. SOURCE AND USE OF FUNDS ...................................................................................................... 5 B. FINANCIAL PLANNING PROCESS ............................................................................................... 5 1. Application for the Full Amount of the BIL LSLR Cap Grant .................................................................. 5 2. Interest Rate Determination ................................................................................................................... 5 C. FINANCIAL TERMS OF LOANS ................................................................................................... 6 1. Funding Limit ........................................................................................................................................ 6 2. Interest Rate .......................................................................................................................................... 6 3. FFY-2023 BIL LSLR Cap Grant Special Provisions................................................................................ 6 4. Other Related Issues .............................................................................................................................. 6 V. SET-ASIDE ACTIVITIES ............................................................................................................ 8 A. ADMINISTRATION ...................................................................................................................... 8 B. SMALL SYSTEM TECHNICAL ASSISTANCE ................................................................................ 8 C. STATE PROGRAM MANAGEMENT .............................................................................................. 9 D. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS................................................................ 9 VI. PRIORITY SYSTEM ................................................................................................................. 10 A. FUNDING AND RANKING RATIONALE ...................................................................................... 10 1. Funding Lists and Bypass Procedure ................................................................................................... 10 2. Loan Decreases ................................................................................................................................... 10 3. Subsidization from FFY-2023 LSLR Cap Grant .................................................................................... 11 C. PRIORITY RANKING CRITERIA ................................................................................................ 13 D. PRIORITY SYSTEM DEADLINES ............................................................................................... 14 VII. FFY-2023 LSLR PRIORITY LIST ..................................................................................... 16 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ............... 17

APPENDICES I APPENDIX A II APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL LSLR CAPITALIZATION GRANT SET-ASIDES........................................................................................................................ III APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE ..... IV (SCHEDULE OF INCREASES TO ACH CEILING)........................................................................ IV APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ......................................................................................... V APPENDIX E – LEAD SERVICE LINE INVENTORY WORKPLAN ........................................... VI APPENDIX F - CERTIFICATIONS ............................................................................................... VIII APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT ........................................ X

I. INTRODUCTION

D. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA) of 2021, (P.L. 117-8) additionally amended Section 1452 of the SDWA and appropriated funds for Lead Service Line Replacement. This Intended Use Plan identifies the State of Mississippi’s proposed use of Federal Fiscal Year (FFY) 2023 DWSRF Lead Service Line Replacement (LSLR) allotment of $28,650,000.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

The DWSIRLF BIL Lead Service Line Replacement (LSLR) Fund consists of federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. No State matching funds are required to be deposited into this Fund.

E. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2022. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year. This BIL LSLR IUP for FFY-2023 will accompany the Program’s application to EPA for the FFY-2023 LSLR Cap Grant.

The amount of the FFY-2023 EPA Cap Grant for the BIL LSLR fund is $28,650,000. The Program intends to apply for set-asides as described in Section V. These funds must be used in the period of July 2023 through June 2026. As a condition of the FFY-2023 Cap Grant the program agrees to comply with DWSRF regulations, the general grant regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to enter data into SRF Data System no less than quarterly. The FFY-2023 IUP will show in detail the goals (overall and five-year), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518. F. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding was held at 9:00 a.m. on March 21, 2024. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those

desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program – LSLR Fund

The LSLR Fund was created by the BIL to provide funding through the DWSIRLF Program for a five-year duration. Overall and Five-Year Goals for the LSLR Fund include:

C. Overall Goal:

Improve public health by providing funding and technical support to public water systems in Mississippi for the removal of lead materials in drinking water service lines and related activities.

D. Five-Year Goals:

Improve public health by providing technical support to small (less than 10,000 population) public water systems in Mississippi for the completion of lead service line inventories. This goal can lead into providing capital project funding for the removal of lead service lines identified during these inventories.
Provide funding and technical support to public water systems in Mississippi in planning for full, not partial, lead service line replacement. This helps to address the equity challenge that for some property owners, the cost to replace their portion of lead service lines is prohibitively high

III. Structure of the Mississippi DWSIRLF

The Mississippi DWSIRLF BIL LSLR is structured around one fund. The portion of the fund designated for projects will consist of 49% principal forgiveness. The balance of the project fund will be repaid. This will sustain the Base DWSIRLF program and help it to achieve its respective goals. The funds are broken down further into designated accounts, each having a specific function.

A. DWSIRLF BIL LSLR Loan/Operations Fund

Monies in the Fund support a majority of the functions of the DWSIRLF LSLR. These functions include program administration, set-aside operations, and most importantly provide disbursements to public water systems for eligible projects. The DWSIRLF LSLR is a reimbursement program, meaning that after the loan is awarded, costs associated with

USEPA, Combined SRF Implementation of BIL Memo, March 8, 2022

planning, designing, and constructing the project are reimbursed to the recipient. Cap grants from EPA will be deposited into this Fund’s account.

Types of Eligible Projects:

Lead Service Line Replacement projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines are eligible for funding by the Program. 100% of lead service lines must be replaced for lead service line projects, including privately and publicly-owned portions of the line.

100% of the service line replaced is defined by replacing pipes up to the point of premise plumbing. The portion of the service line that is DWSIRLF-eligible (refer to Figure 1) is the entire service line from the public water main to the point at which it connects with premise plumbing. Premise plumbing is defined as piping on the other side of the isolation valve. That connection may be inside or outside of homes and buildings. Note that premise plumbing is not eligible for DWSIRLF funding.

The DWSIRLF Program could consider whether reasonable cost for repair to the private-owned structure, if damaged during privately-owned LSL replacement, is eligible for DWSIRLF funding.

Set-aside Accounts:

a. Administrative Set-aside: Provides financial support to administer the LSLR loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems. c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program – Lead and Copper Revised Rule. d. Local Assistance and Other State Programs: Provides funding for small systems to inventory their systems in support of identifying potential lead service lines for replacement.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF LSLR Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

Using the FFY-2023 BIL LSLR Capitalization Grant allotment for Mississippi of $28,650,000 to provide for both loans and set-aside activities.

The “set-asides” use for the FFY-2023 BIL LSLR Cap grant are outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found in the appendices of this IUP.

B. Financial Planning Process

In accordance with the goals of the LSLR fund of the DWSIRLF Program, the Board has made the following financial decisions regarding the Fund:

Application for the Full Amount of the BIL LSLR Cap Grant

The Board intends that the MSDH apply for the full amount of the State LSLR Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. No State match is required for the FFY-2023 LSLR Cap grant.

Interest Rate Determination

It is the Board’s decision to offer 0% interest on DWSIRLF loans from the BIL LSLR fund.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2023 IUP, the Board has set a maximum loan amount of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, no more than one loan per borrower will be allowed. At the end of the fiscal year, if funds are available, systems previously receiving an award may obtain an additional award(s) or an increase to a previous award, if no other eligible systems are evident.

Interest Rate

Terms for BIL LSLR loans will be 0% interest rate, with repayment periods as follows: 3. For Lead Service Line Inventory project loans, a standard five-year repayment term, with the maximum repayment term of 10 years. The reason for the shorter repayment terms is that these projects are not capital projects and do not improve or build a physical asset owned by the water system. 4. For Lead Service Line Replacement project loans, a standard 20-year repayment term. The maximum loan amortization allowable will be 30 years, or 40 years for disadvantaged communities. These maximums may not, however, exceed the design life of the project.

Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

FFY-2023 BIL LSLR Cap Grant Special Provisions

The FFY-2023 BIL LSLR Cap Grant requires 49% subsidization of the BIL LSLR Cap Grant Amount. This subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates,” or a combination of the two.

Other Related Issues

principal forgiveness for the BIL LSLR FFY-2023 Cap Grant is 49% of the total Cap Grant. The Board has set a limit of 70% of the requested loan amount which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for the FFY-2023 Cap Grant, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be LSLR projects and associated activities directly connected to the identification, planning, design, and replacement of LSLs.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

e. Priority List: The LSLR Priority List for the FFY-2023 IUP expires on January 2, 2025. Projects listed in the FFY-2023 LSLR Priority List that do not receive funding by this date will not be funded under the FFY-2023 LSLR IUP and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2023 LSLR projects is shown in Section VIII of this IUP. To facilitate the use of federally appropriated funds from the FFY- 2023 BIL LSLR Cap Grant, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

E. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the Administrative Set-Asides that can be taken the greatest of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal to 4 percent of all grant awards to the fund for the fiscal year. The EPA Combined SRF BIL Implementation Memo dated March 8, 2022 states that set-asides for the LSLR Cap Grant are consistent with the DWSRF regulations. The State plans to use the maximum allowable (4%) for “Administrative” purposes from the FFY- 2023 LSLR Cap Grant.

F. Small System Technical Assistance

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the BIL LSLR FFY-2023 Cap Grant to provide funding for LSL inventories to ultra small systems serving 750 connection or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services for lead service line inventories to water systems with a connections of less than 750. This assistance with lead service line inventories will be available on a first-come, first-serve basis to water systems serving connections of 750 or less. More detail is provided in the State of Mississippi’s Set-Aside Work Plan included as Appendix E to this IUP.

G. State Program Management

At this time, the state does not intend to use the 10% set-aside from the FFY-2023 LSLR Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management related to LCRR and LSLR. The program reserves the right to utilize these funds for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act from future LSLR related grant provide through the Bipartisan Infrastructure Law.

H. Local Assistance and Other State Programs

The state intends to use the of the 15% set-aside amount allowed for Local Assistance from the FFY-2023 BIL LSLR Cap grant to provide funding for LSL inventories to public water systems serving varying levels of connections as outline in the attached workplan.

With approval by the Board, the state intends to use this set-aside to fund contract(s) for providing professional services for lead service line inventories to water systems of three separate size categories: A.) small systems serving connections of less than 750 with Small System Technical Assistance set-aside. B.) medium systems serving connections of greater than 750 but less than 5,000 (not to exceed 10% of the allotment) and C) large system serving connections of greater than 5,000 (not to exceed 10% of the allotment). This assistance with lead service line inventories will be available on a first-come, first-serve basis to water systems serving a population that falls within the three size categories as defined in this section. The State of Mississippi’s Set-aside Work Plan is included as Appendix E.

VI. Priority System

The SDWA provides the state with the flexibility to determine how to best utilize the LSLR Cap grant. To meet the goals of public water systems in the State of Mississippi and this FFY-2023 LSLR IUP, those projects which meet the following will be given priority:

Address the most serious risk to human health related to lead in service lines and associated activities directly connected to the identification, planning, design and replacement of lead service lines. 4. Assist systems most in need, on a per household basis.

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure

Should any projects on the FFY-2023 LSLR Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed, and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest-ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available. 7. Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns;

b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Subsidization from FFY-2023 LSLR Cap Grant

49% of the FFY-2023 LSLR Cap Grant will be subsidized. Based on the Grant of $28,650,000, the required amount of subsidization is $14,038,500. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities, and which received reimbursements with Federal LSLR Cap Grant funds during the lifetime of the project, from loan initiation through loan closeout. If the amount of PF which a project is eligible exceeds the amount of Federal LSLR Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two-year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two-year period. Subsidization for FFY-2023 LSLR Priority List projects may be awarded to projects eligible for PF in FFY-2025 and FFY-2026.

Disadvantaged Community Program

b. DWSRF LSLR Capitalization Grant Funds

For this funding, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of the BIL (P.L. 117-8) for providing subsidy for disadvantaged systems. For the LSLR fund, 49% will be subsidized. The FFY- 2023 LSLR federal appropriation for the Program is $28,650,000. The principal forgiveness (49%) allowable to eligible borrowers is $14,038,500.

90% < LR MHI < 100% - 49% Principal Forgiveness 80% < LR MHI < 90% - 56% Principal Forgiveness 70% < LR MHI < 80% - 63% Principal Forgiveness LR MHI < 70% - 70% Principal Forgiveness

PF will be extended to projects until all mandated subsidy funds are obligated. Due to the limited amount of PF funds, the maximum amount of PF funds a loan recipient may receive for a project will be 70% of the project budget, which is capped at $5,000,000. The amount of PF given will be assigned at loan award. Once subsidy funds are depleted, only standard loans will be made with DWSIRLF funds.

In the event that a LR declines their loan that includes PF, the released PF may be reallocated to other projects for the present fiscal year that are eligible for PF, or the PF may be carried over to projects for the next fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

DWSRF LSLR Priority System

Project Categories applicable to the DWSRF Base/Supplemental IUP that have been eliminated from this LSLR IUP because they are not applicable are Categories I through II and IV through XII. Projects for the LSLR Priority List will be ranked from Categories III through XIII in priority order; that is, all Category III projects are ranked higher than subsequent category projects, etc. Ranking is established in like manner for the remaining categories. Adjustments are made as necessary to comply with the set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a) (2) of SDWA]. As stated previously, the order of Categories III - XIII is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section C.

All projects must meet the requirement of the LSLR Cap Grant appropriation; that they are lead service line replacement projects or project activities directly connected to the identification, planning, design, and replacement of lead service; for example, lead service line inventory projects. 100% of lead service lines must be replaced for lead service line projects, including privately and publicly-owned portions of the line.

Category III – Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category and have been determined LSLR loan eligible in accordance with the DWSIRLF program regulations.

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA; (3) encourage participation in short-term and long-term technical assistance programs; and (4) encourage certifying and providing support for a system’s Asset Management Plan. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi ($52,719) to the MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5.

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance

to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Affordability Points + Assistance Program Points + Asset Management Plan Points

D. Priority System Deadlines

Those that have submitted Request for Ranking: by January 2, 2024, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH.

A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

By May 1, 2024, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2024 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2024 IUP.
By August 1, 2024, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval.

VII. FFY-2023 LSLR PRIORITY LIST Fiscal Year - 2023 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List – BIL Lead Service Line Replacement Project Project Description Zip Code Priority Points Service Area Population Eligible PF Amount Loan Amount Request Statewide Cum. $ Category XIII: Other

Northeast Jeff Davis Water Assn. Lead Service Line Survey 39474 9375 2431 $0.00 $148,320 $148,320 Carson Central Water Association Lead Service Line Replacement 39427 9375 277 $0.00 $16,800 $165,120 Lily Rose Water Association Lead Service Line Replacement 39474 9375 3091 $0.00 $189,120 $354,240 Good Hope Water Association Lead Service Line Replacement 39421 9313 2780 $0.00 $169,600 $523,840 Bunker Hill Water Association Lead Service Line Replacement 39429 6277 3300 $0.00 $177,000 $700,840

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2023 LSLR IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2023 LSLR IUP and funding projects shown on the LSLR Priority List (Section VII), the Board will have the means to plan for and fund projects that will address lead service line replacement projects and associated activities. Funding of the system projects will be determined by the amount of funding to be received in the FFY- 2023 BIL LSLR Cap Grant.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2023 LSLR IUP and Set-Aside Work Plan.

APPENDICES

APPENDIX A DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM - LEAD LINE REPLACEMENT ANTICIPATED FUNDS REPORT - June 1, 2023

FFY-2023 Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $28,650,000 State Match Required (20% of Mississippi's Allotment) + $0 2022 Capitalization Grant for BIL LSLR = $28,650,000

State Match Status State Match Required + $0 2023 Legislated State Match - $0 Remaining State Match Required = $0

History

Source: EPA, Addressing Lead in Drinking Water with the DWSRF, 816-F-18-005, March 2019.

33 Miss. Admin. Code Pt. 18, R. 2022 Rule 2022

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL LSLR CAPITALIZATION GRANT SET-ASIDES

FFY 2022 BIL LSLR Cap Grant Federal Set- Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administrati ve $58,477 $58,477 $58,477 $58,477 $233,906 Small System Tech Assist. $143,250 $143,250 $143,250 $143,250 $573,000 Local Asst. & Other St. Programs $1,074,375 $1,074,375 $1,074,375 $1,074,375 $4,297,500 Total: $1,276,102 $1,276,102 $1,276,102 $1,276,102 $5,104,406

APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE (SCHEDULE OF INCREASES TO ACH CEILING)

FFY-2024

FFY-2022 Cap Grant No. 1 of 4

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$7,162,500 $7,162,500 2nd Quarter

$7,162,500 $14,325,000 3rd Quarter

$7,162,500 $21,487,500 4th Quarter

$7,162,500 $28,650,000

APPENDIX E – LEAD SERVICE LINE INVENTORY WORKPLAN

INTRODUCTION

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

VII

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for a Lead Service Line Replacement Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Lead Line Inventory Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

VIII

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2023 and After Planning List” for the purpose of funding such a project during FFY-2023 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

IV. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

V. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

xii

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

VI. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

Part 19 DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM BIL EMERGING CONTAMINANTS IN DRINKING WATER

33 Miss. Admin. Code Pt. 19, R. 2023 Rule 2023

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - the greater of: $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award] + $233,906 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $191,360 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $1,435,200 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total 2023 Cap Grant Set-Asides = $1,860,446

33 Miss. Admin. Code Pt. 19, R. 2023 Rule 2023

Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & BIL Supplemental Grants + $9,568,000 Cap Grant Set-asides - ($1,860,466) Total Cap Grant Funds Available for Loan Obligation = $7,707,534

Funds Anticipated to be Available for Loan Awards 2023 Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $7,707,534 Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $7,707,534

Funds Needed for Projects on the FFY-2023 Priority List and FFY-2023 & After Planning List Funds Needed for Projects on the Priority List & FFY-2023 and After Planning List + $15,493,630 Funds Anticipated to be Available for Loan Awards - ($7,707,534) Total Fund Need Remaining for Projects on the Priority List and After Planning List = $7,786,096

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL EC CAPITALIZATION GRANT SET-ASIDES

FFY 2024 BIL EC Cap Grant Federal Set-Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administration $58,477 $58,477 $58,477 $58,477 $233,906 Small System Tech Assist $47,840 $47,840 $47,840 $47,840 $191,360 Local Asst. & Other St. Programs $358,800 $358,800 $358,800 $358,800 $1,435,200 Total: $465,117 $465,117 $465,117 $465,117 $1,860,466

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2023 Cap Grant No. 1 of 4

st Quarter FFY-2024 $2,392,000 $2,392,000 FFY-2023 Cap Grant No. 2 of 4 2nd Quarter FFY-2024 $2,392,000 $4,784,000 FFY-2023 Cap Grant No. 3 of 4 3rd Quarter FFY-2024 $2,392,000 $7,176,000 FFY-2023 Cap Grant No. 4 of 4 4th Quarter FFY-2024 $2,392,000 $9,568,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$2,392,000 $2,392,000 2nd Quarter

$2,392,000 $4,784,000 3rd Quarter

$2,392,000 $7,176,000 4th Quarter

$2,392,000 $9,568,000

APPENDIX E – EMERGING CONTAMINANTS TESTING

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Small System Technical Assistance Set-Aside & Local Assistance and Other State Programs Set-aside of the DWSRF EC in an Emerging Contaminants Testing Program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in testing their system to identify emerging contaminants for treatment projects. Emerging contaminants are defined as those listed on EPA’s Contaminant Candidate Lists (CCL1- CCL5).

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the BIL EC FFY-2023 Cap Grant to provide funding for EC Test to ultra small systems serving a population of 300 or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services to water systems with a population of less than 300. This assistance with will be available on a first-come, first-serve basis to water systems serving a population of 300 or less.

The state intends to use the first 10% of the 15% set-aside amount which is allowed from the FFY-2023 BIL EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 1,000 but greater than 300 that are not currently required to sample for UCMR-5.

The state intends to use the remaining 5% of the 15% set-aside amount which is allowed from the FFY-2023 EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 3,300 and greater than or equal to 1,000 that are not currently required to sample for UCMR-5.

VII

Mobilization – Once the communication phase has been completed and the system request to move forward, staff of the contractor will mobilize to the selected site and commence with the plan and testing of the System’s drinking water. Acceptable methods of testing will be determined and outlined by the Department then communicated to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for an Emerging Contaminants Treatment Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Emerging Contaminants Testing Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

VIII

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2023 and After Planning List” for the purpose of funding such a project during FFY-2023 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

XII

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 19: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM BIL EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2023

Approved by the Board 2/233/29/2024

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

iii

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND BIL EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2023

TABLE OF CONTENTS I. INTRODUCTION ......................................................................................................................... 1 A. STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND ......................... 1 B. PROGRAM OVERVIEW ............................................................................................................... 2 C. PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES ........................................................... 2 II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND (DWSIRLF) PROGRAM – EC FUND ................................................. 3 A. OVERALL GOAL: ....................................................................................................................... 3 B. FIVE-YEAR GOALS .................................................................................................................... 3 III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ...................................................................... 3 A. DWSIRLF BIL EC LOAN/OPERATIONS FUND ......................................................................... 4 1. Types of Eligible Projects: ..................................................................................................................... 4 2. Set-aside Accounts: ................................................................................................................................ 4 IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................ 4 A. SOURCE AND USE OF FUNDS ...................................................................................................... 4 B. FINANCIAL PLANNING PROCESS ............................................................................................... 5 1. Application for the Full Amount of the BIL EC Cap Grant ...................................................................... 5 2. Interest Rate Determination ................................................................................................................... 5 C. FINANCIAL TERMS OF LOANS ................................................................................................... 5 1. Funding Limit ........................................................................................................................................ 5 2. Interest Rate .......................................................................................................................................... 5 3. FFY-2023 BIL EC Cap Grant Special Provisions ................................................................................... 6 4. Other Related Issues .............................................................................................................................. 6 V. SET-ASIDE ACTIVITIES ............................................................................................................ 7 A. ADMINISTRATION ...................................................................................................................... 7 B. SMALL SYSTEM TECHNICAL ASSISTANCE ................................................................................ 7 C. STATE PROGRAM MANAGEMENT .............................................................................................. 8 D. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS................................................................ 8 VI. PRIORITY SYSTEM ................................................................................................................... 8 A. FUNDING AND RANKING RATIONALE ........................................................................................ 8 1. Funding Lists and Bypass Procedure ..................................................................................................... 9 2. Loan Decreases ..................................................................................................................................... 9 3. Subsidization from FFY-2023 EC Cap Grant.......................................................................................... 9 C. PRIORITY RANKING CRITERIA ................................................................................................ 12 D. PRIORITY SYSTEM DEADLINES ............................................................................................... 13

VII. FFY-2023 BIL EC PRIORITY LIST .................................................................................. 15 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ............... 16 APPENDICES I APPENDIX A – FUNDS REPORT ...................................................................................................... II APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL EC CAPITALIZATION GRANT SET-ASIDES........................................................................................................................ III APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE ..... IV APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ......................................................................................... V APPENDIX E – EMERGING CONTAMINANTS TESTING .......................................................... VI APPENDIX F - CERTIFICATIONS ............................................................................................... VIII APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT ........................................ X

I. INTRODUCTION

D. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA) of 2021, (P.L. 117-8) additionally amended Section 1452 of the SDWA and appropriated funds for emerging contaminants in drinking water with a focus on perfluoroalkyl and polyfluoroalkyl substances (PFAS). This Intended Use Plan identifies the State of Mississippi’s proposed use of Federal Fiscal Year (FFY) 2023 DWSRF Emerging Contaminants allotment of $9,568,000.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

E. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2021. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year. The BIL EC IUP for FFY-2023 will accompany the Program’s application to EPA for the FFY-2023 EC Cap Grant.

The amount of the FFY-2023 Cap Grant from EPA for Mississippi for BIL EC appropriation is $9,568,000. The Program intends to apply for set-asides as described in Section V. These funds must be used in the period of July 2023 through June 2026. As a condition of the FFY-2023 Cap Grant the program agrees to comply with DWSRF regulations, the general grant regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to enter data into SRF Data System no less than quarterly. The FFY-2024 IUP will show in detail the goals (overall and five-year), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518.

F. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding is scheduled forwas held at 9:00 a.m. on March 21, 2024. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program – EC Fund

The EC Fund was created by the BIL to provide funding through the DWSIRLF Program for a five-year duration. The following are the Overall and Five-Year Goals for the EC Fund: B. Overall Goal:

B. Five-Year Goals

Identify issues with PFAS constituents in drinking water in water systems serving a population less than 3,300 through financial and technical support for water system sampling of the same.
Reduce the exposure of the public in Mississippi PFAS and other emerging contaminants in drinking water through providing technical and financial assistance to water systems.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF BIL EC Loan/Operations Fund

Types of Eligible Projects:

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following as part of the FFY-2023 IUP: a. Administrative Set-aside: Provides financial support to administer the EC loan Program and other non-project-related activities. b. b. Local Assistance and Other State Programs: Provides funding for PFAS sampling of water systems with population less than 3,300. These water systems are not required to sample for UCMR-5 unregulated contaminants in 2023.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF EC Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

Using the FFY-2023 EPA BIL EC Capitalization Grant allotment for Mississippi of $9,568,000 to provide for both loans and set-aside activities.

The FFY-2023 “Set-aside” use for the BIL EC Cap grant are outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found in the appendices of this IUP.

B. Financial Planning Process

In accordance with the Board's desire to maintain a financially sound DWSIRLF loan Fund in perpetuity, while at the same time meeting a substantial portion of the drinking water needs pertaining to projects that address emerging contaminants in drinking water in the state within a reasonable period of time, the following financial decisions were made regarding the Fund:

Application for the Full Amount of the BIL EC Cap Grant

Interest Rate Determination

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2023 IUP, the Board has set a maximum loan amount of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2023, no more than one loan per borrower will be allowed. At the end of the fiscal year, if funds are available, systems previously receiving an award during FFY-2023 may obtain an additional award(s) or an increase to a previous FFY-2023 award, if no other eligible systems are evident.

Interest Rate

Terms for BIL EC loans (There may be a small amount of interest accrued before 100% principal forgiveness is applied) will be 0% interest rate, with a repayment period of five years for all projects.

Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

FFY-2023 BIL EC Cap Grant Special Provisions

The FFY-2023 BIL EC Cap Grant requires 100% subsidization of the BIL EC Cap Grant amount available for projects. This subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two.

Other Related Issues

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

e. Priority List: The EC Priority List for the FFY-2023 IUP expires on January 2, 2025. Projects listed in the FFY-2024 EC Priority List that do not receive funding by this date will not be funded under the FFY-2023 EC IUP and will

be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2023 EC projects is shown in Section VIII of this IUP. To facilitate the use of federally appropriated funds from the FFY-2023 BIL EC Cap Grant, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The FFY-2023 EC Capitalization Grant amount of $9,568,000, the state plans to use $1,853,673860,466 of the FFY-2023 EC Capitalization grant to support set-aside activities, further defined in the following Sections A and B. These non-project- related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this EC IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take set-asides for Small Systems Technical Assistance and State Program Management from the FFY- 2023 EC Cap Grant but reserves the right to make revisions to utilize additional funds from this set-aside.

E. Administration

F. Small System Technical Assistance

G. State Program Management

The state does not intend to use this set-aside from the FFY-2023 EC Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management related to LCRR and LSLR. The program reserves the right to these funds in amended or future application to be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act.

H. Local Assistance and Other State Programs

VI. Priority System

The SDWA provides the state with the flexibility to determine how to best utilize the EC Cap grant. To meet the goals of public water systems in the State of Mississippi and this FFY-2023 EC IUP, those projects which meet the following will be given priority:

Are DWSIRLF-eligible and address the most serious risk to human health related to identifying and addressing emerging contaminants in drinking water, with a focus on PFAS. 5. Assist systems most in need, on a per household basis. 6. Prioritize addressing PFAS in drinking water over other eligible emerging contaminants.

A. Funding and Ranking Rationale

necessary for loan award are approved. If a project cannot reasonably be expected to meet the Priority System deadlines, then the project will not be placed on the current year’s Priority List but will be placed on the Planning List. It is the Board’s judgment with input from the DWSIRLF staff as to when a project is ready to proceed. Loans will be awarded to projects (within available funds) that are above the funding line on the current year’s Priority List, that have met all Priority System deadlines and are ready to proceed. Additionally, when potential loan recipients are deciding on the needs for their public water supplies, they should ensure that all public health and state safe drinking water laws are followed.

Funding Lists and Bypass Procedure

Should any projects on the FFY-2023 EC Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed, and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest-ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available. 7. Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Subsidization from FFY-2023 EC Cap Grant

The FFY-2023 BIL EC Cap Grant mandates 100% of the projects part of the Grant be provided as subsidization to loan recipients. Based on the Grant of $9,568,000 and set-aside amount of $1,853,673860,466, a minimum of $7,714,327707,534 in subsidization is required. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supply loan recipients, and

which received reimbursements with Federal EC Cap Grant funds during the lifetime of the project, from loan initiation through loan closeout. If the amount of PF which a project is eligible exceeds the amount of Federal EC Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two-year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two-year period. Subsidization for FFY-2023 EC Priority List projects may be awarded to projects eligible for PF in FFY-2025 and FFY-2026.

Disadvantaged Community Program

b. DWSRF EC Capitalization Grant Funds

For this funding, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of the BIL of 2021 (P.L. 117-8) for providing subsidy to water systems for addressing emerging contaminants in drinking water. 100% principal forgiveness will be available for the project portion of the FFY-2023 EC Cap Grant to loan recipients. The FFY-2023 EC federal appropriation for the Program is $9,568,000. The project portion of the FFY- 2023 EC Cap Grant is $$$7,714,327707,534. The principal forgiveness (100%) available to eligible borrowers is $$$7,714,327707,534.

All BIL EC projects will receive 100% Principal Forgiveness.

PF will be extended to projects until all mandated subsidy funds are obligated. The amount of PF given will be assigned at loan award.

In the event that a LR declines their loan that includes PF, the released PF may be reallocated to other projects for the present fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

DWSRF EC Priority System

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA; (3) encourage participation in short-term and long-term technical assistance programs; and (4) encourage certifying and providing support for a system’s Asset Management Plan. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity

Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Affordability Points + Assistance Program Points + Asset Management Plan Points

D. Priority System Deadlines

By January 1, 2024, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from

By May 1, 2024, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2024 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2024 IUP.
By August 1, 2024, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval.

VII. FFY-2023 BIL EC LISTS Fiscal Year - 2023 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List – BIL Emerging Contaminants

Project Project Description Zip Code Priorit y Points Service Area Populatio n Loan Amount Request Statewide Cum. $ Category IX: Existing Facilities Upgrade (Meeting Primary Standards)

Jackson, City ofMooreville Richmond Water Association Study, Design & Construction, Emerging Contaminants Treatment/ Distribution 39216388

110994

155000107

$511,350,000,

City Point Water Association Removal of Iron and Manganese 38862 141 2455 $4,143,630 $15,493,630

Fiscal Year - 2023 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Planning List – BIL Emerging Contaminants

Project Project Description Zip Code Priority Points Service Area Population Loan Amount Request Statewide Cum. $ Category IX: Existing Facilities Upgrade (Meeting Primary Standards)

Mooreville Richmond Water Association Emerging Contaminants Treatment/ Distribution 38857 414 10788 $11,350,000 $11,350,000 City Point Water Association Removal of Iron and Manganese 38862 141 2455 $6,143,630 $17,493,630

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2023 EC IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2023 EC IUP and funding projects shown on the FFY-2023 EC Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2023 BIL EC Cap Grant.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2023 EC IUP and Set-Aside Work Plan.

APPENDICES

APPENDIX A – FUNDS REPORT DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM - EMERGING CONTAMINANTS FUNDS REPORT - JUNE 2023

FFY-2023 Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $9,568,000 State Match Required (0% of Mississippi's Allotment) + $0 2023 Capitalization Grant for DWSRF w BIL Supplemental = $9,568,000

33 Miss. Admin. Code Pt. 19, R. 2023 Rule 2023

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - the greater of: $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award] + $227,113233,906 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $191,360 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $1,435,200 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total 2023 Cap Grant Set-Asides = $1,853,673860,446

33 Miss. Admin. Code Pt. 19, R. 2023 Rule 2023

Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & BIL Supplemental Grants + $9,568,000 Cap Grant Set-asides - ($1,853,673860,466) Total Cap Grant Funds Available for Loan Obligation = $7,714,327707,534

Funds Anticipated to be Available for Loan Awards 2023 Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $7,714,327707,534 Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $7,714,327707,534

Funds Needed for Projects on the FFY-2023 Priority List and FFY-2023 & After Planning List Funds Needed for Projects on the Priority List & FFY-2023 and After Planning List + $2215,493,630 Funds Anticipated to be Available for Loan Awards - ($7,714,327707,534) Total Fund Need Remaining for Projects on the Priority List and After Planning List = $14,779,3037,786,096

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR BIL EC CAPITALIZATION GRANT SET-ASIDES

FFY 2024 BIL EC Cap Grant Federal Set- Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administratio n $56,77858,477 $56,77858,477 $56,77858,477 $56,77858,477 $227,113233,906 Small System Tech Assist $47,840 $47,840 $47,840 $47,840 $191,360 Local Asst. & Other St. Programs $358,800 $358,800 $358,800 $358,800 $1,435,200 Total: $463,418465,11

$463,418465,11

$1,853,673860,46

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2023 Cap Grant No. 1 of 4

st Quarter FFY-2024 $2,033,250392,000 $2,033,250392,000 FFY-2023 Cap Grant No. 2 of 4 2nd Quarter FFY-2024 $2,033,250392,000 $4,066,500784,000 FFY-2023 Cap Grant No. 3 of 4 3rd Quarter FFY-2024 $2,033,250392,000 $6,099,7507,176,000 FFY-2023 Cap Grant No. 4 of 4 4th Quarter FFY-2024 $2,033,250392,000 $9,568,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Outlay Quarter

Federal Outlay Amount

Cumulative Outlay Amount

st Quarter

$2,033,250392,000 $2,033,250392,000 2nd Quarter

$2,033,250392,000 $4,066,500784,000 3rd Quarter

$2,033,250392,000 $6,099,7507,176,000 4th Quarter

$2,033,250392,000 $9,568,000

APPENDIX E – EMERGING CONTAMINANTS TESTING

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Small System Technical Assistance Set-Aside & Local Assistance and Other State Programs Set-aside of the DWSRF EC in an Emerging Contaminants Testing Program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in testing their system to identify emerging contaminants for treatment projects. Emerging contaminants are defined as those listed on EPA’s Contaminant Candidate Lists (CCL1- CCL5).

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

VII

Mobilization – Once the communication phase has been completed and the system request to move forward, staff of the contractor will mobilize to the selected site and commence with the plan and testing of the System’s drinking water. Acceptable methods of testing will be determined and outlined by the Department then communicated to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for an Emerging Contaminants Treatment Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Emerging Contaminants Testing Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

VIII

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2023 and After Planning List” for the purpose of funding such a project during FFY-2023 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

IV. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

V. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

xii

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

VI. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

Part 20 Part 20: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Base Intended Use Plan

33 Miss. Admin. Code Pt. 20 Part 20: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Base Intended Use Plan

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 20: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Base Intended Use Plan

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM

FFY-2025 INTENDED USE PLAN

Approved by the Board 8/29/2025

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

iii

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND

FFY-2025 INTENDED USE PLAN

TABLE OF CONTENTS

INTRODUCTION .............................................................................................................................. 1
STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND .......................... 1
PROGRAM OVERVIEW .................................................................................................................... 2
PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES .............................................................. 3

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS

REVOLVING LOAN FUND (DWSIRLF) PROGRAM ......................................................................... 3

A. BASIC GOALS .................................................................................................................................. 3

B. LONG-TERM DWSIRLF GOALS ................................................................................................... 4

C. SHORT-TERM DWSIRLF GOALS .................................................................................................. 5

III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ......................................................................... 6

A. DWSIRLF LOAN/OPERATIONS FUND........................................................................................... 6

Types of Eligible Projects: ......................................................................................................................... 6
Set-aside Accounts: .................................................................................................................................... 6
1. DWSIRLF STATE MATCH FUNDS ................................................................................................. 6
2. DRINKING WATER SYSTEMS EMERGENCY LOAN FUND (DWSELF) ......................................... 7
IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................... 7 A. SOURCE AND USE OF FUNDS .......................................................................................................... 7
Federal Allotment ....................................................................................................................................... 7
State Match Requirements .......................................................................................................................... 8
Loan Increase Reserve................................................................................................................................ 8 B. FINANCIAL PLANNING PROCESS.................................................................................................... 9
Efficient Bond Management ....................................................................................................................... 9
Interest Rate Determination ....................................................................................................................... 9 C. FINANCIAL TERMS OF LOANS ........................................................................................................ 9
Funding Limit ........................................................................................................................................... 10
Interest Rate.............................................................................................................................................. 10
Administration Fee ................................................................................................................................... 10
FFY-2025 Appropriation Special Provisions ........................................................................................... 10
Other Related Issues ................................................................................................................................. 11
1. SET-ASIDE ACTIVITIES .............................................................................................................. 12
2. ADMINISTRATION ......................................................................................................................... 12
3. SMALL SYSTEM TECHNICAL ASSISTANCE .................................................................................. 13
4. STATE PROGRAM MANAGEMENT ................................................................................................ 13
5. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ................................................................ 13
VI. PRIORITY SYSTEM ...................................................................................................................... 13

A. FUNDING AND RANKING RATIONALE .......................................................................................... 14

Funding Lists and Bypass Procedure ....................................................................................................... 14
Loan Decreases ........................................................................................................................................ 15
Match for Special Appropriations Project (SPAP) Grants ....................................................................... 15
Subsidization from FFY-2025 Federal Appropriation ............................................................................. 15
1. PRIORITY SYSTEM CATEGORIES ................................................................................................. 17
2. PRIORITY RANKING CRITERIA .................................................................................................... 20
3. PRIORITY SYSTEM DEADLINES .................................................................................................... 22
VII. FFY-2025 PRIORITY LIST .................................................................................................... 24 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ................ 30 APPENDICES I APPENDIX A II APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR CAPITALIZATION GRANT SET-ASIDES III APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE...... IV APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ............................................................................................. V APPENDIX E - MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET-ASIDE WORK PLAN VI APPENDIX F - MISSISSIPPI STATE PROGRAM MANAGEMENT SET-ASIDE ANNUAL WORK PLAN XI APPENDIX G - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN XVI APPENDIX H - DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM XVIII APPENDIX I - CERTIFICATIONS .................................................................................................... XIX APPENDIX J – INFRASTRUCTURE INVESTMENT AND JOBS ACT ....................................... XXI APPENDIX K - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN XXIV

I. INTRODUCTION

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low-cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low-cost loans to the state’s public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF’s funds to assist in protecting public health. The DWSIRLF consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds; however, the State legislature has provided the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey

the State of Mississippi’s (State) DWSRF plan for Federal Fiscal Year (FFY) 2025 to EPA, other state agencies, the State’s public water supplies, and the public.

B. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2021. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year to year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year.

The authorized allotment of the FFY-2025 Cap Grant from EPA for Mississippi is $13,658,000. The Program intent to apply for the full amount of this cap grant and the IIJA Supplemental cap grant. These funds must be used in the period of July 2025 through June 2031. As a condition of the FFY-2025 Cap Grant the program agrees to comply with DWSRF regulations, the general grant regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to enter data into SRF Data System no less than quarterly. The FFY-2025 IUP will show in detail the goals (basic, long-term, and short- term), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Brittney Carmichael, Program Support Specialist, at (601) 576-7649.

The United States Congress passed the Infrastructure Investment and Jobs Act (IIJA) which was signed by the President on November 15, 2021. The bill appropriates an additional $2.202 billion to DWSRF for any eligible projects. Of the $2.4 billion additional allotment, the State’s 2025 allotment (1.25%) for eligible projects was $31,181,000 with a required state contribution (20%) of $6,236,200. The maximum principal forgiveness (49%) allowable to Eligible Borrowers will be $$15,278,690. The Program will take action to follow its priority and planning list to apply the funding as applicable. See Appendix K for additional details.

C. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding was held at 9:00 a.m. on August 25, 2025. Minutes of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Brittney Carmichael, Program Support Specialist, at (601) 576-7649. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program

Maintain a financially sound DWSIRLF in perpetuity; meet a portion of the drinking water needs in the state within a reasonable period of time; and fund projects in order of public health importance. Attaining these basic goals will help ensure that Mississippi's drinking water supplies remain safe and affordable, and that those public water systems that receive funding will be properly operated and maintained.
Determine the DWSIRLF’s yearly interest rate, taking into consideration that it must be competitive with the private sector, as well as with other available funding sources within the state. This will ensure the timely use of available funds, as well as ensure sufficient income is generated to provide for the perpetuity of the Fund. Further details of loan terms and priority ranking are outlined in Sections IV and VI of this IUP.

Ensure the program’s goal align with the EPA’s Strategic Goal of “Ensuring Clean and Safe Water for All Communities”.

B. Long-Term DWSIRLF Goals

Enhance and/or improve loan application and repayment procedures. MSDH intends to periodically evaluate the existing Program requirements and procedures to determine ways to streamline the DWSIRLF Program’s application and repayment procedures, making it more user-friendly, attractive, and beneficial to loan recipients, while ensuring continued compliance with all federal and state regulations and requirements.
Program staff are exploring the feasibility of creating a universal web-based ranking form for all lending agencies within the state. The proposed form would ask a few simple questions, recommend a lending program based on the responses, and submit the ranking form to the appropriate agency. This could help potential loan recipients find the program that is right for their water utility, quickly and easily.
Continue programs to protect the State’s ground water by using designated funds from the Cap grants to fund abandonment and plugging of wells. Since FFY-2012 the Program has been using the Local Assistance and Other State Programs set- asides to properly abandon inactive wells and open holes. Inactive wells and open holes are potential avenues of contamination to the aquifer and are a danger to humans. This program is a worthwhile endeavor that will protect the source water of the state’s water supplies.
Develop a tracking system to manage programmatic and financial documentation. A tracking system will provide DWSIRLF loan recipients and their representatives with an opportunity to view the status and/or location of documents mailed to the Program for review and/or processing. This tracking system will also assist Program staff in tracking/monitoring program documentation reviews as well as disbursements.
Develop a comprehensive engineering project manager (PM) manual. The Bureau of Public Water Supply continues to make changes to the personnel involved with the DWSIRLF Program as the need arises. A comprehensive manual for project management will help ensure new PMs will have all the necessary tools and reference materials at their disposal to ensure the ongoing project flow will be uninterrupted. Since regulations change periodically, once the manual is completed it will be maintained by assigned staff.

C. Short-Term DWSIRLF Goals

Enhance and/or improve the Program by making it more attractive to public water systems. The evaluation of this goal will be based on input received from “one-on- one” visits with staff at engineering firms, town conferences, and general feedback obtained from loan recipients and consulting engineers during the loan process. These meetings will be conducted with firms currently participating in the DWSIRLF Program to collect data regarding the effectiveness of the loan application process currently being implemented.
Explore the possibility of developing web-based checklists and forms to electronically store and process project management information.
Assist applicants in addressing capacity assessment deficiencies found during annual inspections by using technical solutions afforded by the technical assistance set-aside contractors. New or forthcoming regulations may make this a key goal in the future.
Train new staff members using available training sessions provided by EPA Region IV staff.
Meet special funding goals: Executive Order 13858, Strengthening Buy-American Provisions for Infrastructure Projects, may introduce additional provisions that will require additional compliance monitoring, thus creating an additional burden to the Program.
Automatic repayment collection system: Continue the implementation of an automatic repayment collection system; many loan recipients in the Program’s repayment mode desire an automatic electronic repayment system as is available in the public sector. The DWSIRLF, by instituting this payment option, will ensure a timely receipt of monthly repayments, as well as make the repayment process much more convenient for our loan recipients.
Implement a Cash Flow Model (CFM) to forecast all cash flows of the Drinking Water State Revolving Funds to optimize the Program’s lending capacity.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF Loan/Operations Fund

Monies in the Fund support a majority of the functions of the DWSIRLF. These functions include program administration, set-aside operations, and most importantly provide disbursements to public water systems for eligible projects. The DWSIRLF is a reimbursement program, meaning that after the loan is awarded, costs associated with planning, designing, and constructing the project are reimbursed to the recipient. Cap grants from EPA, loan repayments and interest earnings are deposited into this Fund.

Types of Eligible Projects:

Many types of projects are eligible for funding by the Program. For a more detailed explanation of eligible costs for projects, please refer to Appendix A of the DWSIRLF Regulations.

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following for FFY-2025: a. Administrative Set-aside: Provides financial support to administer the loan Program and other non-project-related activities. b. Small System Technical Assistance Set-aside: Provides technical assistance to small water systems. c. State Program Management Set-aside: Provides additional financial support to MSDH – Bureau of Public Water Supply for Public Water System Supervision Program. d. Local Assistance and Other State Programs: Provides funding for the implementation of a wellhead protection program.

B. DWSIRLF State Match Funds

C. Drinking Water Systems Emergency Loan Fund (DWSELF)

The Board also oversees the DWSELF. This fund contains only State dollars that are utilized solely for public water supply loans which meet the definition of emergency. For further information see Appendix I.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

The FFY-2025 EPA Capitalization Grant allotment for Mississippi of $13,658,000 has a 20% state match of $2,731,600 is required and the FFY-2025 IIJA Supplemental Capitalization Grant allotment of $31,181,000 with a 20% state match requirement of $6,236,200 this provides an amount of $41,546,400 for both loans and set-aside activities.

A national reallotment of funding was made available to the State after other states passed on their funding opportunities. The State will access the additional $15,000 in funding. State match of $3,000 will be earmarked from funding available to the program to meet the required 20%.

The FFY-2025 “Set-aside” uses for the standard Cap grant and IIJA Supplemental Cap grant are outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found in the appendices of this IUP.

Federal Allotment

With the FFY-2025 Capitalization Grant for Mississippi of $13,658,000 the state match requirement to federal grant funds will be 20% state match funds to 80% federal grant funds; this requirement will be stated in the grant application.

The FFY-2025 IIJA Supplemental Capitalization Grant allotment for Mississippi of $31,181,000 the state match requirement to federal grant funds will be 20% state match funds to 80% federal grant funds; this requirement will be stated in the grant application.

State Match Requirements

The 2025 State Legislature will authorize an appropriation or the issuance of bonds to be used as match for the FFY-2025 EPA Capitalization Grants. An amount of $8,967,800 is required to fully match the FFY-2025 EPA Capitalization Grants.

Loan Increase Reserve

Beginning in FFY-2003 the Board began to make loan awards after approval of the facilities plans and loan application, rather than after completion of the project design. This change in the loan award sequence increased the likelihood that bid overruns on some projects could be greater than the construction contingency included in the loan agreement. In order to be able to provide loan increases (when needed) to existing loans, the Board intends to set-aside the $2,000,000 for such loan increases; loan increases will be awarded on a first-come, first-served basis. Any funds not obligated for these purposes by the end of the fiscal year may be

made available for new loan awards to the highest-ranking project(s) that is ready for loan award at the time funds become available. B. Financial Planning Process

Efficient Bond Management

The Board intends that the MSDH apply for the entire state Cap grant allotment under the federal DWSRF, including the set-asides described in Section V below. State bond proceeds obtained shall be deposited into the DWSIRLF and shall be used as the state match for federal DWSRF Cap grants.

Interest Rate Determination

Investment

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2025 the Board has set a maximum loan amount of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2025, no more than one loan per borrower will be allowed. At the end of the fiscal year, if funds are available, systems previously receiving an award during FFY-2025 may obtain an additional award(s) or an increase to a previous award, if no other eligible systems are evident.

Interest Rate

All loan terms will be the lesser of 1.95% annual interest rate or the twenty-year (20) triple-A rated, tax-exempt insured revenue bond yield published by fmsbonds, Inc., compounded monthly, with a standard 20-year term. The maximum loan amortization allowable will be 30 years, or 40 years for disadvantaged communities (the America’s Water Infrastructure Act of 2018). These maximums may not, however, exceed the design life of the project. Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

Administration Fee

THIS IS NOT AN ADDITIONAL FEE TO OUR LOAN RECIPENTS. This revenue is diverted from the interest portion of loan repayments to defray administrative costs related to the program. The program will collect up to 5% of the initial loan principal or the total amount of interest due over the life of the loan, whichever is less, to defray administrative cost. This fee will be collected from the interest portion of loan repayments on all FFY-2025 loans. Total to be determined after awards.

FFY-2025 Appropriation Special Provisions

The Federal 2025 appropriations bill has been finalized and the final EPA FFY- 2025 Cap Grant allotment amounts, and any additional federal requirements are known. Subsidization requirements will be required for the FFY-2025 Cap Grant; the subsidization is in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two. The amount of subsidization is a minimum of 26% of the Cap Grant amount. The FFY-2025 Cap Grant is $13,658,000 and the subsidization amount will be $3,551,080 (26%) of the Cap Grant amount. Furthermore, all loans made with all or part FFY-2025 federal appropriation funds

will include the Davis-Bacon Act, American Iron and Steel, and BABA signage requirements.

Other Related Issues

a. Type of Assistance Provided: The assistance to be provided under the DWSIRLF Program will be loans to public, tax-exempt entities which are authorized under state law to collect, treat, store, and distribute piped water for human consumption; able to enter into a DWSIRLF loan agreement; and have the ability to repay the DWSIRLF loan. With the funds provided through the FFY-2025 federal appropriation, the DWSIRLF program will be able to make loans that will have an amount of “principal forgiveness”, if the loan recipient is designated a disadvantaged community. To ensure that the assistance is dispersed as far as possible, the Board has set a limit ($500,000) which a loan recipient may receive in subsidy for one loan. When the mandatory 26% subsidy requirements have not been met by awards, the Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the limit to be exceeded by a vote of the Board. Once the limit of the appropriation subsidy funds has been reached for FFY-2025, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be for the construction of eligible drinking water production, treatment, and distribution facilities.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work under a construction contract for which the “Notice to Proceed” was issued on or after October 1, 2025, and the DWSIRLF loan is awarded by September 30, 2025. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to the loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason.

iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment to funding a refinanced project is provided.

e. Priority List: The FFY-2025 Priority List expires on September 30, 2025. Projects listed in the FFY-2025 Priority List that do not receive funding by this date will not be funded under the FFY-2025 funding cycle and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2025 DWSIRLF projects is shown in Section VIII of this IUP. To facilitate the use of FFY-2025 federally appropriated funds, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. SET-ASIDE ACTIVITIES

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The FFY-2025 EPA Capitalization Grant amount of $13,658,000, the state plans to use $1,677,825 of the FFY-2025 Federal Capitalization grant to support the non-project-related drinking water programs activities. The state plans to utilize $4,300,572 of the IIJA Supplemental Cap Grant amount for set-aside activities. These non- project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take any additional set-asides from the FFY-2025 Local Assistance and Other State Programs set-aside but reserves the right to make revisions to utilize additional funds from this set- aside. See Appendix B for the funding breakdown of each category.

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the Administrative Set-Asides that can be taken (the greatest of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal to 4 percent of all grant awards to the fund for the fiscal year). The State plans to use the maximum allowable for "Administrative" purposes from the FFY2025 Cap Grant. The State also plans to use a percentage for "Administrative" purposes from the FFY2025 IIJA Supplemental Cap Grant. Costs beyond this amount will be paid from the funds generated by the 5% administrative fee taken from loan repayments.

The state will continue to exercise its right to reserve the administrative amounts from previous Cap Grants. Reserving previous years’ 4% administrative set-aside can ensure

that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program.

B. Small System Technical Assistance

The state will use the Small Systems Technical Assistance (Up to 2%) set-aside from the FFY-2025 Cap Grant and the IIJA Supplemental Cap Grant to provide technical assistance to public water systems serving areas with populations of 10,000 or less. With approval by the Board, the state intends to use this set-aside to fund contracts for the following activities: Special Technical Assistance to Referred Systems; Board Management Training for Water System Officials; On-Site Technical Assistance; PEER Review Program; Hands- on Operator Training; and Asset Management Training. Each of these activities is described in detail in the State of Mississippi’s Small Systems Technical Assistance Set- Aside Work Plan included as Appendix E to this IUP.

C. State Program Management

The state intends to utilize these funds which are allowed up to a 10% set-aside from the FFY-2025 Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management. The funds will be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act. These activities are described in more detail in the State of Mississippi’s State Program Management Set-aside Annual Work Plan included as Appendix F to this IUP.

D. Local Assistance and Other State Programs

The state intends to use (10%) of the 15% set-aside amount which is allowed from the FFY-2025 Cap grant to provide funding for wellhead protection projects throughout the state. These funds will be used to properly abandon inactive wells that pose a risk to existing active public water supply source water wells, as well as the environment. See Appendix G.

The state intends to use (10%) of the 15% IIJA Supp set-aside amount which is allowed from the FFY-2025 Cap grant to provide funding for consolidation and regionalization projects throughout the state. These funds will be used to survey the State’s drinking water system to identify, plan, and assist water systems in consolidation or regionalization to create a more sustainable model that best serves the consumers of Mississippi’s drinking water. See Appendix L.

VI. Priority System

address the most serious risk to human health.
are necessary to ensure compliance with the SDWA requirements.
assist systems most in need, on a per household basis.

A. Funding and Ranking Rationale

Projects will be placed on the fundable portion of the Priority List according to both priority ranking and readiness to proceed. The term “ready to proceed” means that all loan application requirements established in the Program regulations are met, and all documents necessary for loan award are approved. If a project cannot reasonably be expected to meet the Priority System deadlines, then the project will not be placed on the current year’s Priority List but will be placed on the Planning List. It is the Board’s judgment with input from the DWSIRLF staff as to when a project is ready to proceed. Loans will be awarded to projects (within available funds) that are above the funding line on the current year’s Priority List, that have met all Priority System deadlines and are ready to proceed. Additionally, when potential loan recipients are deciding on the needs for their public water supplies, they should ensure that all public health and state safe drinking water laws are followed. If a state regulation becomes an additional requirement of Mississippi’s public water supplies, appropriate planning and design of the project(s) will be necessary in order to receive funding. However, if it is understood that a proposed project is designed to meet specific SDWA compliance requirement(s) unrelated to a state requirement, the Board may waive the state requirement upon request from the potential loan recipient. This waiver would require concurrence from the Bureau of Public Water Supply.

Funding Lists and Bypass Procedure

Should any projects on the FFY-2025 Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed, and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest-ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available.

Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Match for Special Appropriations Project (SPAP) Grants

These non-federal, non-state match DWSIRLF loan funds may be made available to eligible SPAP grant recipients that are on the priority list for use as local match funds for their SPAP grants, provided the grant is for loan eligible work. Such projects will be funded in accordance with the Priority System and until all non- federal, non-state match monies have been obligated or demand for such funds has been met.

Subsidization from FFY-2025 Federal Appropriation

The FFY-2025 EPA Capitalization Grant mandates a minimum of 26% (12% SDWA Disadvantaged Communities Subsidy + 14% Congressional Subsidy) and maximum 49% (26% min + 23% discretionary SDWA Disadvantaged Communities Subsidy) of the Grant be provided as additional subsidization to disadvantaged communities. Based on the Grant of $13,658,000, a minimum of $3,551,080 ($1,638,960 & $1,912,120) in subsidization is required. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities, and which received reimbursements with Federal Cap grant funds during the construction of the project. If the amount of PF which a project is eligible exceeds the amount of Federal Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two-year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two-year

period. Subsidization for FFY-2025 may be awarded to projects eligible for PF in FFY-2025 and FFY-2026.

Disadvantaged Community Program

a. DWSRF Capitalization Grant funds

During FFY-2025, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of both the America’s Water Infrastructure Act of 2018, the Consolidated Appropriations Act of 2020, and Infrastructure Investment and Jobs Act of 2021 for providing subsidy for disadvantaged systems. A minimum of 26% subsidy will be made available and up to 49% can be subsidized to eligible recipients.

90% < LR MHI < 100% - 15% Principal Forgiveness 80% < LR MHI < 90% - 25% Principal Forgiveness 70% < LR MHI < 80% - 35% Principal Forgiveness LR MHI < 70% - 45% Principal Forgiveness

PF will be extended to projects until all mandated subsidy funds are obligated. Due to the limited amount of PF funds, the maximum amount of PF funds a loan recipient may receive for a project will be set at $500,000. The amount of PF given will be assigned at loan award after the project goes to the bid phase. Once this happens, the amount of PF assigned can only change if the project’s costs increase, PF is still available, PF assigned has not reached the specified maximum, and the Board approves a waiver allowing additional subsidization. Once subsidy funds are depleted, only standard loans will be made with DWSIRLF funds.

If all projects have received their full allowable amount, returned PF funds may be reallocated to projects awarded PF during the existing fiscal year based on a

percentage of the individual LR’s initial loan amount to the total loan amount of loans awarded PF during the fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

b. IIJA Supplemental Funds

During FFY-2025, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of the Infrastructure Investment and Jobs Act of 2021. The annual IIJA Supplemental grant is to be subsidized at 49% with those subsidies as assistance agreements of 100% principal forgiveness or grants. Potential Loan Recipients ranked highest on the program’s Priority List serving a population with a Median Household Income less than $54,915 (MS MHI) will be eligible to receive 100% principal forgiveness loans to the extent funding allows. The FFY 2025 IIJA Supplemental allotment for the Program is $31,181,000. The maximum principal forgiveness (49%) allowable to eligible borrowers will be $15,278,690.

B. Priority System Categories

Emergency Projects

Standard DWSRF Projects

Projects in Category I are funded each year to the extent funds are available. Projects in Categories II through XI are ranked in priority order; that is, all Category II projects are ranked higher than Category III projects, etc. Ranking is established in a manner through all remaining categories. Adjustments are made as necessary to comply with small community set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a) (2) of SDWA]. As stated previously, the order of Categories II - XI is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section C.

Category I - Segmented Projects

This category of projects includes any remaining segments of projects that previously received funding for an integral portion of that project and are necessary for the entire project to be functional. Projects will be funded under this category in order of their regular priority ranking provided they meet the deadlines established in Section D.

In order to maintain continuity, the Board intends to make some funds available for each ongoing-segmented project. Preference in the amount of funds to be provided will be given to the projects that received the earliest loan award for their initial segment.

Category II - Previous Year Certified Projects Priority for this category will be given to the previous year’s Category II projects to the maximum extent practicable. This category of projects includes projects that: (1) were listed immediately below the funding line on the previous year’s Priority List within an amount of approximately 25% of that year’s total available funds; (2) met all Priority System deadlines in the previous fiscal year; and (3) were not funded due to lack of DWSIRLF funds or did not receive an assurance of CDBG, ARC, RUS, or other match funding in the previous fiscal year. Within this category, projects will be ranked according to the current Priority Ranking Criteria.
Category III - Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category IV - One Well This category includes projects to provide additional water supply to systems that have neither a backup well nor an MSDH-approved emergency tie-in to another system to ensure safe drinking water; thereby protecting the health of the existing population. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category V – Pressure Deficiencies This category includes projects to correct documented deficiencies that result in existing systems routinely failing to maintain minimum acceptable dynamic pressure. Experience has shown that failure of water systems to maintain minimum acceptable dynamic pressure is the major cause of system contamination in Mississippi. System contamination that results from inadequate water system pressure is considered by the MSDH to be one of the most serious drinking water-related threats to public health in Mississippi.
Category VI - Source Water Protection Projects

This category includes projects to manage potential sources of contaminants/pollutants and/or prevent contaminants/pollutants from reaching sources of drinking water. To be eligible for loan participation, potential contaminants/pollutants and source water protection areas must have been identified in the public water systems source water assessment plan report (swapr) prepared by the Mississippi Department of Environmental Quality’s Groundwater Planning Branch (deq-gpb). If the public water system has not received its swapr from the deq-gpb yet, or has documentation that may change its swap, it shall provide in the facilities plan suitable documentation of potential sources of contaminants/pollutants that is acceptable to the deq-gpb before the project will be deemed eligible.

The projects will be ranked: first in order of the highest source water classification that would be negatively impacted by source water contaminants; secondly, within each classification in order of the public water systems susceptibility assessment ranking as determined by the deq-gpb; and thirdly, within each susceptibility assessment ranking in order of the highest number of connections served by the public water system. Source water classifications will be ranked in the following order: surface water sources; shallow (generally ≤ 300’ in depth) unconfined water wells; shallow (generally ≤ 300’ in depth) confined water wells; and deep confined water wells.

Category VII - System Capacity Expansion to Serve Existing Unserved Residences/Businesses This category includes projects to either expand existing system capacity or construct a new drinking water system to ensure safe drinking water (source, treatment and/or distribution) to serve existing residences/businesses in currently unserved areas.
Category VIII - Back-up Water Supply Sources Projects This category includes projects to provide additional supply to systems with insufficient back-up water supply sources to ensure safe drinking water and thereby protect the health of the existing population. As a minimum, a system using ground water should be able to lose any one of the wells supplying the system and still maintain minimum acceptable dynamic pressure throughout the entire system.
Category IX – Existing Facilities Upgrades (Meeting Primary Standards) This category includes projects to rehabilitate, replace, protect or upgrade deteriorated, worn, aged, or obsolete equipment, facilities, etc., to assure continued, dependable operation of water systems where such systems are already meeting Primary Drinking Water Standards. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category X - Fluoride Addition

This category is for projects that either rehabilitate existing fluoride treatment facilities at well or treatment plant sites or add new facilities to existing well or treatment plants.

Category XI - Secondary Drinking Water Standards Projects This category includes projects to provide treatment that brings systems into compliance with Secondary Drinking Water Regulations. Depending on the nature of the project, additional treatment requirements may be necessary as part of the proposed project.
Category XII – Consolidation Projects This category includes projects to consolidate separate systems into a single system for purposes other than those related to Categories II through IX. Consolidation will also be considered in establishing priority ranking within all categories, as described in the Priority Ranking Criteria in Section C.
Category XIII – Other This category includes projects that do not meet the criteria of any other listed category and have been determined loan eligible in accordance with the DWSIRLF loan program regulations.

C. Priority Ranking Criteria

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

The affordability factor used in the calculation is defined as the ratio of the “Median Household Income” (MHI) for the State of Mississippi ($54,915) to the MHI for the affected community. The affordability factor used in the calculation will be no less than 1.0 and no greater than 1.5. 3. Consolidation Any project that includes consolidation (ownership and management) of separate existing systems into a single system will receive consolidation points equal to 0.5 times the Adjusted Benefit/Cost points assigned to the project. The purpose of assigning consolidation points is to promote reliability, efficiency and economy of scale that can be achieved with larger water systems while discouraging the proliferation of numerous separate small systems with their inherent inefficiencies and limitations. Projects, in any priority category, that do not include consolidation will receive zero consolidation points in the final calculation of total priority points.

Consolidation Points = 0.5 x (Adjusted Benefit/Cost Points)

System Capacity Any project that includes scope of work to address critical design capacity issues (systems that are currently overloaded or within two (2) years of reaching their current design capacity, as determined by MSDH) will receive additional priority points equal to 25% of the Adjusted Benefit/Cost points assigned to the project. Documentation of the system capacity analysis and recommendations to address the design capacity issues must be addressed in the facilities plan to be eligible for these additional priority points.

System Capacity Points = 0.25 x (Adjusted Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned to the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Consolidation Points + System Capacity Points + Assistance Program Points + Needs Survey Points

Small Community Set-Aside Following completion of the ranking process, the Priority List will be reviewed to determine if at least 15% of available funding for projects above the funding line is for public water systems which regularly serve fewer than 5,000 people, which the Board has defined as a small community for the purposes of this set-aside. If this is not the case, the Priority List will be adjusted by exchanging the lowest ranking projects above the funding line that serve 5,000 or more with the highest-ranking projects below the funding line that serve fewer than 5,000, until the 15% requirement is satisfied.

D. Priority System Deadlines

By October 2, 2024, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH.

This deadline also applies to all projects competing for released funds during FFY- 2025 and to be able to qualify for the Previous Year Certified Projects Category in the next FFY’s IUP.

By May 1, 2025, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2025 and to be able to qualify for the Previous Year Certified Projects Category in the next FFY’s IUP.
By August 1, 2025, all approvable documents and responses to comments necessary for the loan award must be submitted to the Department for its review and approval. This deadline also applies to all projects competing for released funds during FFY- 2025 and to be able to qualify for the Previous Year Certified Projects Category in the next FFY’s IUP.

VII. FFY-2025 PRIORITY LIST FINAL Fiscal Year - 2025 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List

Project Project Title Zip Code Priority Points Service Area Pop. Eligible PF Amount Loan Amount Requested Statewide Cum. $ Category III: Primary Drinking Water Standards Projects

Smithville, Town of Water Treatment Plant Repair 38870 131 2004 $49,923 $5,000,000 $5,000,000 Category IV: One Well Projects

Clayton Village Water Association Distribution Improvements 39759 4388 4984 $500,000 $2,630,575 $7,630,575 Category V: Pressure Deficiencies Projects

Mound Bayou, City of Pressure Deficiencies 38762 126 1500 $382,500 $5,000,000 $12,630,575 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses

Shuqualak, Town of Extending Public Water Service to Unserved Areas 39361 157 575 $500,000 $3,185,365 $15,815,940 West Harrison Water & Sewer Dist Unserved Areas/New Water Main 39571 29 14892 $366,249 $1,464,997 $17,280,937 Harrison Co. Utility Authority Service to Existing Unserved Areas 39503 28 624 $360,000 $2,601,398 $19,882,335 Category VIII: Back-up Water Supply Sources Projects

Boyle, Town of New Water Mains/ Distribution Improvements 38730 326 498 $152,583 $1,017,217 $20,899,552 Category IX: Existing Facilities Upgrade (Meeting Primary Standards)

Hernando, City of Treatment Plant Upgrades and Distribution Impro 38632 7626 15000 $0 $931,000 $21,830,552 Clarksdale Public Utilities Rehab/ Replacement of Existing Facilities 39814 4654 17962 $500,000 $2,375,000 $24,205,552 Meridian, City of Two New Wells 39301 4204 36347 $500,000 $3,971,930 $28,177,482 Natchez Water Works Replace Water Meters 39121 3062 15792 $500,000 $3,985,605 $32,163,087 Lewisburg Water Association New Treatment Plant/ New 500,000 gallon Tank 38654 2391 8277 $0 $1,385,000 $33,548,087 Brandon, City of New Water Well 39042 1514 26355 $0 $6,630,000 $40,178,087 Short Coleman Park Association New Well/ New Treatment Facility 38852 1437 4400 $351,575 $1,004,500 $41,182,587 Hilldale Water District New Well and Generator 39180 1380 5561 $308,045 $1,232,180 $42,414,767 ------Funding Line------ Hattiesburg, City of Rehab/ Replacement of Existing Facilities 39403 907 41951 $500,000 $5,000,000 $47,414,767 Bay St. Louis, City of New Elevated Storage Tank 39520 890 9284 $500,000 $3,016,250 $50,431,017 South MS Public Water Authority Tank Rehab/ New Valves 39401 653 1674 $255,500 $923,528 $51,354,545 Shivers Water Association New Water Mains/ Tank Rehab 39149 651 2292 $500,000 $2,000,000 $53,354,545

Alcorn Co. Water Association Elevated tank/waterlines/facilities upgrade 38834 626 6500 $500,000 $3,591,500 $56,946,045 Sunnyhill Water Association New 500 gpm Well/ Booster Station/ Water Main 39649 621 3828 $500,000 $3,500,000 $60,446,045 Bunker Hill Water Association New Water Mains/ New AMR System 39429 569 2900 $500,000 $1,966,700 $62,412,745 Fisher Ferry Water District Two New Wells/ Well Rehab 39180 465 5200 $471,052 $3,140,349 $65,553,094 Hancock County Water & Sewer District New 250,000 gallon Elevated Storage Tank 39556 411 5570 $500,000 $4,968,114 $70,521,208 Midway Community Water Association New Treatment Plant 39039 383 1680 $279,000 $2,700,000 $73,221,208 Jumpertown ,Town of Rehab/ Replacement of Existing Facilities 38829 345 1150 $500,000 $2,458,600 $75,679,808 Fannin Water Association New 300,000 Gal Tank 39047 197 6500 $0 $5,069,213 $80,749,021 Hickory, Town of New Well/ Elevated Tank/ Pipe Extension 39332 189 1000 $500,000 $4,629,771 $85,378,792 Cleveland, City of Rehab Existing Facilities 38732 125 12000 $500,000 $2,016,907 $87,395,699 North District One Water Association New Well/ Pressure Tank/ Water Line 38967 105 787 $500,000 $3,780,014 $91,175,713 Poplar Springs Water District Rehab/ Replacement of Existing Facilities 39114 81 1188 $500,000 $4,897,615 $96,073,328 Laurel, City of Distribution Improvements 39441 19 17066 $500,000 $8,240,000 $104,313,328

Notes: See section VI.B. of this document for more details. Applications exceeding a loan request of $5,000,000 require further approval by the Board. See section IV.C.1 of this document.

The “Eligible PF Amount” listed here is based on the process outlined for the base cap grant allotment (Section VI.A.5a). Potential Loan Recipients ranked highest on the program’s Priority List serving a population with a Median Household Income less than $54,915 (MS MHI) will be eligible to receive IIJA funding that allows for 100% principal forgiveness loans to the extent funding allows (Section VI.A.5b).

The Funding line will be set to conform with the program’s SFY 2025 budget authority.

FFY-2025 Planning List FINAL Fiscal Year - 2026 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Projects included on the Planning List did not meet all submission deadlines, are not projected to be ready to proceed during the FFY, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the submitted Request for Ranking Form. A determination of a project’s program eligibility cannot be completed until the facilities plan has been submitted and reviewed.

Public Water System Project Title Zip Code Priority Points Service Area Population Eligible Base PF Request Cumulative Category IV: One Well Projects Mt. Olivet Water Association New Well/ Tank Rehab/ Distribution Improvements 38606 99 1048 $500,000 $4,002,513 $4,002,513 Winterville Water Association New Water Well 38703 64 108 $456,435 $1,014,300 $5,016,813 Falcon, Town of Back-up Well, Distribution Improvements 38670 35 96 $500,000 $1,998,676 $7,015,489 Category VII: System Capacity Expansion to Serve Existing Unserved Residences/Businesses Bernard Bayou Industrial District Paint 2 Elevated Storage Tanks 39503 846 6000 $0 $354,675 $7,370,164 Jackson Co. Utility Authority Expansion to Unserved Area/ Consolidation 39567 63 12000 $0 $5,000,000 $12,370,164 West Harrison Water & Sewer Dist Underserved Area Stablewood 39571 41 14892 $500,000 $2,287,869 $14,658,033 West Harrison Water & Sewer Dist Connect to Underserved Area- Ladner 39571 32 14892 $398,763 $1,595,051 $16,253,084 West Harrison Water & Sewer Dist 2 Miles of Water Line 39571 31 14892 $345,353 $1,381,412 $17,634,496 West Harrison Water & Sewer Dist Connect to Underserved Area- Vidalia 39571 29 14892 $366,249 $1,464,997 $19,099,493 West Harrison Water & Sewer Dist Connect to Underserved Area- Edwin 39571 28 14892 $500,000 $3,368,737 $22,468,230 Category VIII: Back-up Water Supply Sources Projects Aberdeen, Town of 400 P Well/100,000 Gal. Elev.Tank/Rehab Lines 39730 3127 6415 $500,000 $1,481,949 $23,950,179 Eupora, City of New Water Well 39744 1659 5564 $308,250 $1,233,000 $25,183,179 Cason Water Association Surface Water Connection 38858 1623 4543 $435,575 $1,244,500 $26,427,679 Broadmoor Utilities New Well/ Waterline Extension 39120 999 1800 $307,397 $683,105 $27,110,784 Mt. Olivet Water Association New Well/Paint Elevated Tank 38606 708 1300 $232,218 $516,040 $27,626,824 Braxton, Town of Construction of New Well 39044 288 775 $204,750 $819,000 $28,445,824 Category IX: Existing Facilities Upgrade (Meeting Primary Standards)

Clarkdale Water Association SCADA and Distribution Upgrades 39301 11242 4000 $500,000 $2,158,032 $30,603,856 CS&I Water Association Rehab/ Replacement of Existing Facilities 39175 6450 945 $36,000 $80,000 $30,683,856 Highway 28 Water Assn Distribution Improvements 39111 5327 1500 $36,750 $105,000 $30,788,856 Crystal Springs, City of Rehab/ Replacement of Existing Facilities 39059 5271 5050 $138,880 $396,800 $31,185,656 Carthage, City of Rehab/ Replacement of Existing Facilities 39051 5079 5075 $255,150 $567,000 $31,752,656 Tunica Co. Utility District Automated Meters 38676 3008 9458 $500,000 $2,368,576 $34,121,232 N.E. Itawamba Water Association Rehab/ Replacement of Existing Facilities 38847 2943 4700 $364,725 $810,500 $34,931,732 Madison, City of 1,000,000 Gallon Elevated Storage Tank 39110 2767 28000 $0 $1,830,000 $36,761,732 West Tallahatchie Utilities Assoc Rehab/ Replacement of Existing Facilities 38966 2282 7500 $500,000 $1,643,067 $38,404,799 Bassfield, Town of Well Rehabilitation 39241 2101 1165 $149,723 $332,718 $38,737,517 Brookhaven, City of Rehab/ Replacement of Existing Facilities 39206 2042 12500 $500,000 $3,870,350 $42,607,867 Clinton, City of New Well/ Distribution Improvements 39056 2010 28100 $435,000 $4,084,100 $46,691,967 Poplarville, City of AMR Meters 39470 1682 3334 $0 $732,000 $47,423,967 Bear Creek Water Association Replace Tank With New 2 Mil Gal Tank 39046 1534 45000 $0 $4,890,000 $52,313,967 Webb, Town of Repair/Rehab Water Tank 38966 1250 586 $105,840 $235,200 $52,549,167 Crystal Springs, City of Water System Improvements 39059 1083 5050 $500,000 $1,931,368 $54,480,535 Canton Municipal Utilities Water System Improvements 39046 1036 8000 $500,000 $2,825,000 $57,305,535 H&H Water System, Inc. Distribution Improvements 39080 1030 3012 $367,500 $1,050,000 $58,355,535 Hattiesburg, City of Rehab/ Replacement of Existing Facilities 39403 907 45951 $500,000 $15,000,000 $73,355,535 Isola, Town of Rehab/ Replacement of Existing Facilities 38754 903 713 $209,250 $465,000 $73,820,535 Clarkdale Water Association Replacing Asbestos Pipe 39301 827 4000 $500,000 $2,066,000 $75,886,535 Batesville, City of New Well/ Storage Tank 38606 820 9973 $500,000 $4,482,780 $80,369,315 Clarksdale Public Utilities Replacing Wells and Distribution 39814 732 17962 $500,000 $15,110,000 $95,479,315 Casey Jones Water Association Rehab/ Replacement of Existing Facilities 39179 713 1112 $405,000 $900,000 $96,379,315 Shannon, Town of Rehab/ Replacement of Existing Facilities 38868 691 1850 $485,696 $1,079,325 $97,458,640 Metcalfe, Town of Rehab/ Replacement of Existing Facilities 38760 678 1125 $424,125 $942,500 $98,401,140 Bolton, Town of Rehab/ Replacement of Existing Facilities 39041 665 640 $118,188 $337,681 $98,738,821 Union, City of Rehab/ Replacement of Existing Facilities 39365 636 1897 $460,013 $3,066,750 $101,805,571 Sunnyhill Water Association New Well/ New Water Main with Appurtences 39649 621 3828 $500,000 $3,500,000 $105,305,571 Quitman, City of Rehab/ Replacement of Existing Facilities 39355 607 2386 $500,000 $2,613,060 $107,918,631 Yokena-Jeff Davis Water District Supply Main Replacement 39180 582 2233 $0 $1,260,000 $109,178,631

Acona Water Association Rehab/ Replacement of Existing Facilities 39095 549 1550 $500,000 $1,419,800 $110,598,431 East Madison Water Association Distribution Improvements 39046 544 7265 $500,000 $5,000,000 $115,598,431 Mooreville-Richmond Water Associat Tie-in/ Distribution Improvements 38857 515 107880 $500,000 $11,350,000 $126,948,431 Northeast Amite Water Assn New Elevated Tank 39666 513 1816 $0 $1,230,000 $128,178,431 Rawls Springs Utility District Rehab/Replacement of Existing Facilities 39402 497 3168 $0 $2,000,000 $130,178,431 Bay St. Louis, City of Distribution Improvements 39250 494 9284 $500,000 $5,429,250 $135,607,681 Mendenhall, City of New 500 GPM Well/250,000 Gal Tank/Treatment Pl 39114 476 2504 $500,000 $2,634,100 $138,241,781 Topisaw Creek Water Association Rehab/ Replacement of Existing Facilities 39662 473 4910 $477,750 $3,185,000 $141,426,781 Magnolia, City of Rehab/ Replacement of Existing Facilities 39652 471 2420 $500,000 $2,798,860 $144,225,641 Greenville, City of Rehab Facilities 38701 459 30000 $500,000 $40,000,000 $184,225,641 Looxahoma Water Association Distribution Improvement/ AMR Upgrade 38668 457 686 $175,000 $500,000 $184,725,641 Lake Eddins Rehab/ Replacement of Existing Facilities 39347 419 294 $500,000 $1,369,941 $186,095,582 Sixtown Water Association New Elevated Tank 39653 393 828 $0 $1,230,000 $187,325,582 Monterey Water Association Rehab Existing Facilities 39073 375 3500 $444,484 $1,269,954 $188,595,536 Magee, City of Rehab Existing Facilities 39111 374 4800 $303,450 $4,000,000 $192,595,536 Big Field Water Association Rehab/ Replacement of Existing Facilities 38646 371 599 $383,426 $852,057 $193,447,593 Paynes Water Association Rehab Existing Facilities 38921 330 549 $412,677 $917,061 $194,364,654 Lumberton, City of Replace Existing Water Lines/Mains 39455 328 2200 $500,000 $3,453,197 $197,817,851 Raymond, City of Replace Water Mains/Hydrants/Rehab Storage Tank 39154 324 2894 $360,000 $2,400,000 $200,217,851 Morton, City of New Well/ New Water Mains/ Rehab Tank 39117 292 7000 $500,000 $7,000,000 $207,217,851 Mize, Town of New Well 39116 287 537 $331,650 $737,000 $207,954,851 Bogue Chitto Water Association Tank Rehabs /Water main replacement 39629 285 2162 $0 $1,230,000 $209,184,851 East Leflore Water & Sewer District Rehab/ Replacement of Existing Facilities 38930 264 5161 $500,000 $11,168,871 $220,353,722 Crawford, Town of Elevated Tank Rehabilitation 39743 257 631 $500,000 $2,086,400 $222,440,122 Cross-Roads Water Association Rehab/ Replacement of Existing Facilities 38916 221 1600 $500,000 $3,057,336 $225,497,458 Stonewall, Town of Rehab/ Replacement of Existing Facilities 39363 220 933 $500,000 $3,300,725 $228,798,183 Hatten Water Association New Facility, New Well, New Water Mains 39168 180 1182 $500,000 $2,304,648 $231,102,831 Sandersville, Town of New 250 gpm Well/3500 ft of PVC 39477 172 636 $500,000 $2,100,000 $233,202,831 Highway 98 East Water Association Replace Approx. 50,000 LF Water Mains 39429 172 1650 $500,000 $1,220,000 $234,422,831 Pachuta, Village of Rehab/ Replacement of Existing Facilities 39347 165 143 $426,665 $948,145 $235,370,976 Crenshaw, Town of Elevated Storage Tank, Distribution Improvements 38621 163 588 $500,000 $3,169,810 $238,540,786

Starkville, City of Replace Existing Water Main 39759 162 25339 $500,000 $1,850,000 $240,390,786 McCarley Water Association Rehab/ Replacement of Existing Facilities 38943 153 647 $500,000 $2,394,289 $242,785,075 Youngs Water & Sewer District New 100,000 Gal. Elevated Storage Tank 38922 152 925 $500,000 $3,020,308 $245,805,383 Kiln Utility & Fire District New Elevated Tank 39556 143 6349 $452,438 $3,016,250 $248,821,633 Sardis, City of Distribution Improvements 38666 138 1756 $500,000 $1,788,550 $250,610,183 Eskridge Rose Hill Water Association Emergency Tie-In 38925 132 343 $500,000 $1,500,000 $252,110,183 Neely Utilities New Storage/ Extend to Unserved Area 39461 132 499 $470,397 $1,343,992 $253,454,175 Smithville, Town of Phase 2 (tentative title) 38870 131 2004 $500,000 $5,000,000 $258,454,175 Winterville Water Association Rehab/ Replacement of Existing Facilities 38703 130 90 $233,100 $518,000 $258,972,175 South Newton Rural Water Associat Rehab Treatment Plant 39345 128 3010 $500,000 $7,191,247 $266,163,422 Pittsboro, Town of Rehab/ Replacement of Existing Facilities 38951 100 1077 $500,000 $4,055,512 $270,218,934 Okalona, City of Rehab/ Replacement of Existing Facilities 38860 73 2700 $500,000 $2,592,250 $272,811,184 Lake Water Works Tank Rehab, New Water Mains 39092 69 439 $500,000 $3,300,400 $276,111,584 Mount Olive, Town of New Water Treatment Plant 39119 51 982 $500,000 $2,000,000 $278,111,584 Valley Park Water Association Water System Improvements 39177 23 448 $175,077 $500,221 $278,611,805 Harrison Co. Utility Authority Distribution Improvements 39503 21 624 $500,000 $6,950,000 $285,561,805 Purvis, City of Distribution Improvements 39111 0 2590 $500,000 $4,812,073 $290,373,878 Category XII: Consolidation Projects Jackson Co. Utility Authority Consolidation 39567 53 75000 $0 $31,750,000 $322,123,878 Jackson Co. Utility Authority Consolidation 39567 49 75000 $0 $1,270,000 $323,393,878 Jackson Co. Utility Authority Consolidation 39567 22 6600 $0 $279,400 $323,673,278 Jackson Co. Utility Authority Consolidation 39567 0 12000 $0 $2,540,000 $326,213,278 Category XIII: Other Verona, City of New Generator 38879 18098 3019 $54,900 $122,000 $326,335,278

Note: See section VI.B. of this document for more details. Applications exceeding $5,000,000 require further approval by the Board. See section IV.C.1 of this document.

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2025 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2025 IUP and funding projects shown on the FFY-2025 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2025.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2025 DWSRF Work Plan.

APPENDICES

APPENDIX A

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM ANTICIPATED FUNDS REPORT - July 1, 2024 FFY-2025 (OCT. 1, 2024 - SEPT. 30, 2025) Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $13,658,000 State Match Required (20% of Mississippi's Allotment) + $2,731,600 SRF Supplemental Allotment

$31,181,000 State Match Required (20% of Mississippi's Allotment) + $6,236,200 Capitalization Grant for DWSRF w IIJA Supplemental = $53,806,800 State Match Status State Match Required + $8,967,800 Legislated State Match (HB)) - $0 Remaining State Match Required = $8,967,800 Cap Grant Set-Asides DWSRF Administrative Expenses [SDWA Sec. 1452(g)(2) - 4%] + $410,873 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $112,407 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $583,700 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $570,845 IIJA Administrative Expenses [SDWA Sec. 1452(g)(2) - 4%] + $495,112 IIJA Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $77,425 IIJA Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $2,636,800 IIJA State Program Management [SDWA Sec. 1452(g)(2) -10%] + $1,091,235 Total Cap Grant Set-Asides = $5,978,397 Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & IIJA Supplemental Grants + $53,806,800 Cap Grant Set-asides - ($1,677,825) IIJA Supplemental Set-asides - ($4,300,572) Total Cap Grant Funds Available for Loan Obligation = $47,828,403 Funds Anticipated to be Available for Loan Awards Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $47,828,403 Unobligated Funds Carried Over from FFY-2024 + $36,196,199 Loan Repayments (P&I) Deposited to the Fund 10/01/24 - 09/30/25
$13,533,346 Interest Earned on Deposits to the Fund 10/01/24 - 09/30/25
$4,241,832 Loan Increase Reserve

($2,000,000) Total Funds Anticipated to be Available for Loan Awards = $99,799,780

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR CAPITALIZATION GRANT SET-ASIDES

FFY 2024 Cap Grant & IIJA Supplemental

Federal Set-Asides FFY 2024 Q1 FFY 2024 Q2 FFY 2024 Q3 FFY 2024 Q4 Totals Administrative $102,718 $102,718 $102,718 $102,718 $402,873 $123,778 $123,778 $123,778 $123,778 $495,112 Small System Tech Assist. $28,102 $28,102 $28,102 $28,102 $112,407 $19,356 $19,356 $19,356 $19,356 $77,425 Local Asst. & Other St. Programs $145,925 $145,925 $145,925 $145,925 $583,700 $659,200 $659,200 $659,200 $659,200 $2,636,800 State Program Management $142,711 $142,711 $142,711 $142,711 $570,845 $272,809 $272,809 $272,809 $272,809 $1,091,235 Base Cap. Grant Total: $419,456 $419,456 $419,456 $419,456 $1,677,825 IIJA Supplemental Cap. Grant Total: $1,075,143 $1,075,143 $1,075,143 $1,075,143 $4,300,572 Total: $1,494,599 $1,494,599 $1,494,599 $1,494,599 $5,970,397

FFY 2025 Cap Grant & IIJA Supplemental

Federal Set-Asides FFY 2025 Q1 FFY 2025 Q2 FFY 2025 Q3 FFY 2025 Q4 Totals Administrative $102,718 $102,718 $102,718 $102,718 $410,873 $123,778 $123,778 $123,778 $123,778 $495,112 Small System Tech Assist. $28,102 $28,102 $28,102 $28,102 $112,407 $19,356 $19,356 $19,356 $19,356 $77,425 Local Asst. & Other St. Programs $145,925 $145,925 $145,925 $145,925 $583,700 $659,200 $659,200 $659,200 $659,200 $2,636,800 State Program Management $142,711 $142,711 $142,711 $142,711 $570,845 $272,809 $272,809 $272,809 $272,809 $1,091,235 Base Cap. Grant Total: $419,456 $419,456 $419,456 $419,456 $1,677,825 IIJA Supplemental Cap. Grant Total: $1,075,143 $1,075,143 $1,075,143 $1,075,143 $4,300,572 Total: $1,494,599 $1,494,599 $1,494,599 $1,494,599 $5,978,397

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2024

FFY-2024 1 st Quarter $1,459,250 $1,459,250 Cap Grant FFY-2025 $7,196,250 $7,196,250 No. 1 of 4

$8,655,500 FFY-2024 2nd Quarter $1,459,250 $2,918,500 Cap Grant FFY-2025 $7,196,250 $14,392,500 No. 2 of 4

$17,311,000 FFY-2024 3rd Quarter $1,459,250 $4,377,750 Cap Grant FFY-2025 $7,196,250 $21,588,750 No. 3 of 4

$25,966,500 FFY-2024 4th Quarter $1,459,250 $5,837,000 Cap Grant FFY-2025 $7,196,250 $28,785,000 No. 4 of 4

$34,622,000

FFY-2025

FFY-2025 1 st Quarter $3,414,500 $3,414,500 Cap Grant FFY-2026 $7,795,250 $7,795,250 No. 1 of 4

$11,209,750 FFY-2025 2nd Quarter $3,414,500 $6,829,000 Cap Grant FFY-2026 $7,795,250 $15,590,500 No. 2 of 4

$22,419,500 FFY-2025 3rd Quarter $3,414,500 $10,243,500 Cap Grant FFY-2026 $7,795,250 $23,385,750 No. 3 of 4

$33,629,250 FFY-2025 4th Quarter $3,414,500 $13,658,000 Cap Grant FFY-2026 $7,795,250 $31,181,000 No. 4 of 4 $15,000

$44,854,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024

Quarter Federal Outlay Amount Cumulative Outlay Amount 1 st Quarter $1,459,250 $1,459,250 $7,196,250 $7,196,250 2nd Quarter $1,459,250 $2,918,500 $7,196,250 $14,392,500 3rd Quarter $1,459,250 $4,377,750 $7,196,250 $21,588,750 4th Quarter $1,459,250 $5,837,000 $7,196,250 $28,785,000 $34,622,000

FFY-2025

Quarter Federal Outlay Amount Cumulative Outlay Amount 1 st Quarter $3,414,500 $3,414,500 $7,795,250 $7,795,250 2nd Quarter $3,414,500 $6,829,000 $7,795,250 $15,590,500 3rd Quarter $3,414,500 $10,243,500 $7,795,250 $23,385,750 4th Quarter $3,414,500 $13,658,000 $7,795,250 $31,181,000 $15,000

$44,854,000

APPENDIX E - MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET-ASIDE WORK PLAN

SELECTION PROCESS The current technical assistance contracts expire on June 30, 2025.

Prior to the expiration of the existing contracts an Invitation for Bids (IFB) for the technical assistance contracts will be sent out to potential contractors. All proposals will be evaluated by the Department and recommendations for award will be presented to the Board (at a regularly scheduled Board meeting); all contracts will be awarded.

The contracts for technical assistance are currently awarded to:

Mississippi State University Extension Service; • Hands-On Operator Training - MS Water and Pollution Control Operators Association; • PEER Review Program for Public Water Supplies - MS Water and Pollution Control Operators Association; • Asset Management - MS Water and Pollution Control Operators Association.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

VII

Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

VIII

Coordination and Monitoring of Board Management Training for Water System Officials:

Section 41-26-101 of the Mississippi Code of 1972, Annotated, states “Each member elected or reelected after June 30, 1998, to serve on a governing board of any community public water system, except systems operated by municipalities with a population greater than ten thousand (10,000), shall attend a minimum of eight (8) hours of management training within two (2) years following the election of that board member. If a board member has undergone training and is reelected to the board, that board member shall not be required to attend training. The management training shall be organized by the MSDH. The management training shall include information on water system management and financing, rate setting and structures, operations and maintenance, applicable laws and regulations, ethics, and the duties and responsibilities of the association and other organizations. The Department shall develop and provide all training materials. To avoid board members having to interfere with their jobs or employment, management training sessions may be divided into segments and, to the greatest extent possible, shall be scheduled for evening sessions. The Department shall conduct management training on a regional basis.” The contractor shall: serve as the coordinator for MSDH in regards to all activities related to the implementation of the training program in the state; randomly attend training sessions to ensure the established curriculum is being followed and that the curriculum is relevant and effective; manage the Board Member Training Curriculum Review Committee; continue to update the established computerized database to accurately track the most current status of each board member attending the program; and other related duties.

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Asset Management Training:

Activity Objectives - provide asset management training to water system operators statewide.

AGENCY RESPONSIBILITIES

The MSDH will conduct Small Systems Technical Assistance Set-aside activities through Board approved contracts with providers who will be selected following procedures of the State of Mississippi’s Department of Finance and Administration Public Procurement Review Board. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional full-time equivalent (FTE) requirement is anticipated for state agencies to implement the provisions of this set-aside.

APPENDIX F - Mississippi State Program Management Set-Aside Annual Work Plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After reviewing the Draft FFY-2025 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft FFY-2025 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2025 IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2025 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% of the FFY-2025 DWSRF capitalization grant as a set-aside for State Program Management activities of the PWSS Program. The reserved amount will offset the salary, fringe, and indirect cost expenses of a portion of the PWSS personnel positions in the PWSS Program.

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects twenty-eight (28) full time equivalents (FTE) will be required to implement the FFY-2025/2026 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the

XII

set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

As required to maintain state primacy, MSDH maintains the PWSS programs on an ongoing or as-needed basis. These programs include: revising current primacy programs by adopting new Federal regulations as needed; coordinating for Mid-Year and End-of-Year review with EPA Regional Office; maintaining a sanitary survey program with discrepancy follow-up; participating in state data verification audits; ensuring public water systems (PWSs) are utilizing approved laboratories and a certification program for those laboratories is in place; participating in the EPA Regional oversight; operating in accordance with requirements of the National Primary Drinking Water Regulations; maintaining an active water system design and construction plan and specification review program; ensuring labs used by PWSs within the state are capable of the workload created by regulations; participating in PWS and PWSS training on rule requirements; informing EPA Region 4 of any special state initiatives under the rules or provisions of the SDWA; maintaining records for all rule/policies, enforcing reporting and record keeping as required; maintaining appropriate administrative penalty authority; implementing the PWS definition; attending State/EPA planning and implementation meetings; ensuring that newly permitted PWSs have design/construction capable of compliance with the present and upcoming SDWA regulations; ensuring analytical methods are being applied to demonstrate compliance with the regulations; notifying (if necessary) EPA of intent not to adopt or implement any portion of the rules; and responding to EPA requests for information or verification of state rules implementation.

Non-primacy Requirements

Capacity Development (CD) Program

XIII

Unregulated Contaminant Monitoring Rule

Operator Certification

As mandated by the SDWA to maintain full funding for the DWSIRLF, operator certification is an essential part of the PWSS program. Activities required to maintain the operator certification program include: providing documentation and evaluation of ongoing program implementation for all annual program submittals subsequent to the initial submittal; supply as required certification of changes and documentation of those changes that are made to the regulations of statutes; perform internal and external program reviews as required by state law.

Source Water Assessment Program

On an annual basis, MSDH reports to EPA on Source Water Assessment Program implementation activities. Beginning on December 1, 2009, all groundwater systems began either Source Water Monitoring or 4-Log Compliance Monitoring. Additionally, Mississippi is required to conduct routine sanitary surveys of all public water systems and identify significant deficiencies. The Rule also requires systems to take corrective actions for significant deficiencies and for source water fecal contamination.

XIV

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

Information Management and the Safe Drinking Water Inspection System (SDWIS)/Fed Reporting These ongoing activities include: overseeing and enforcing requirements of data management and the Safe Drinking Water Inspection System (SDWIS) /Fed reporting; reporting the state’s PWSS inventory at least annually to SDWIS/Fed; reporting the state’s violations and enforcement actions at least quarterly; participating in EPA/state data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing the regulatory requirements.

Management System for Non-compliant Systems These activities include overseeing and enforcing requirements of management systems for non-compliant systems; providing current versions of its enforcement response guide; assurances that the EPA has up-to-date information.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES The MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

XVI

APPENDIX G - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilized via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contract for coordination of the decommissioning/properly closing inactive water wells/open holes was bid and awarded; the current contract runs until June 30, 2025. A new contract for the decommissioning/properly closing inactive water wells/open holes is currently being developed in accordance with new State contracting requirements.

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Engineering Service.

The second contract (closure contract) – is currently being developed in accordance with new State contracting requirements.

PROGRAM ACTIVITIES

XVII

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

XVIII

APPENDIX H - DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM

Section 41-3-16, Mississippi Code of 1972, as amended, created the Drinking Water Systems Emergency Loan Fund Program (DWSELF). This program provides loans to counties, municipalities, districts, or other (tax exempt) water organizations for emergency construction, repair, or replacement of drinking water facilities. This entirely state-funded loan program provides a ready funding source for such emergency projects without the federal cross-cutter requirements required in the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, thereby saving valuable time and expense. The Board encourages eligible water organizations throughout the state to utilize this program whenever emergency drinking water projects are needed.

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

XIX

APPENDIX I - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

Through this public review process, the State, Board, and Program hope to include a diverse set of potentially interested parties, including community groups, neighborhood associations, environmental organizations, environmental justice organizations, and public health groups, that represent a broad spectrum of community interests.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).

The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).
The state certifies that prior to adding any new projects to the “FFY-2025 Priority List and After Planning List” for the purpose of funding such a project during FFY-2025 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.
The State is committed to and ensures that program’s activities comply with Title VI of the Civil Rights Act of 1964

APPENDIX J – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

iii

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2023 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

APPENDIX K - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a Consolidation Regionalization assistance program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in consolidation or regionalization to create a more sustainable model that best serves the consumers of Mississippi’s drinking water.

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

Confirmation – Staff of the contractor will provide the BPWS Regional Engineers with drafts of the plans and specifications.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

Part 21 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 21 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 21: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM IIJA EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2024

Approved by the Board 5/2/2025

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

iii

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND IIJA EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2024

TABLE OF CONTENTS

INTRODUCTION ......................................................................................................................... 1
STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND ......................... 1
PROGRAM OVERVIEW ............................................................................................................... 2
PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES ........................................................... 2

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS

REVOLVING LOAN FUND (DWSIRLF) PROGRAM – EC FUND ................................................. 3

A. OVERALL GOAL: ....................................................................................................................... 3

B. FIVE-YEAR GOALS .................................................................................................................... 3

III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ...................................................................... 3

A. DWSIRLF IIJA EC LOAN/OPERATIONS FUND ........................................................................ 4

Types of Eligible Projects: ..................................................................................................................... 4
Set-aside Accounts: ................................................................................................................................ 4 IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................ 4
1. SOURCE AND USE OF FUNDS ...................................................................................................... 4
2. FINANCIAL PLANNING PROCESS ............................................................................................... 5
Application for the Full Amount of the IIJA EC Cap Grant ..................................................................... 5
Interest Rate Determination ................................................................................................................... 5 C. FINANCIAL TERMS OF LOANS ................................................................................................... 5
Funding Limit ........................................................................................................................................ 5
Interest Rate .......................................................................................................................................... 5
FFY-2024 IIJA EC Cap Grant Special Provisions .................................................................................. 6
Other Related Issues .............................................................................................................................. 6
1. SET-ASIDE ACTIVITIES ............................................................................................................ 7
2. ADMINISTRATION ...................................................................................................................... 7
3. SMALL SYSTEM TECHNICAL ASSISTANCE ................................................................................ 7
4. STATE PROGRAM MANAGEMENT .............................................................................................. 8
5. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS................................................................ 8
VI. PRIORITY SYSTEM ................................................................................................................... 8 A. FUNDING AND RANKING RATIONALE ........................................................................................ 8
Funding Lists and Bypass Procedure ..................................................................................................... 9
Loan Decreases ..................................................................................................................................... 9
Subsidization from FFY-2024 EC Cap Grant.......................................................................................... 9
1. PRIORITY RANKING CRITERIA ................................................................................................ 11
2. PRIORITY SYSTEM DEADLINES ............................................................................................... 13

VII. FFY-2024 IIJA EC LISTS ................................................................................................... 14 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ............... 15 APPENDICES I APPENDIX A – FUNDS REPORT ...................................................................................................... II APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR IIJA EC CAPITALIZATION GRANT SET-ASIDES........................................................................................................................ III APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE ..... IV APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ......................................................................................... V APPENDIX E – EMERGING CONTAMINANTS TESTING .......................................................... VI APPENDIX F - CERTIFICATIONS ............................................................................................... VIII APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT ........................................ X

I. INTRODUCTION

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. The Infrastructure Investment and Jobs Act (IIJA) of 2021, (P.L. 117-8) additionally amended Section 1452 of the SDWA and appropriated funds for emerging contaminants in drinking water with a focus on perfluoroalkyl and polyfluoroalkyl substances (PFAS). This Intended Use Plan identifies the State of Mississippi’s proposed use of Federal Fiscal Year (FFY) 2024 DWSRF Emerging Contaminants allotment of $9,568,000 and national reallotment of 282,000.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

The DWSIRLF IIJA Emerging Contaminant (EC) Fund consists of federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. No State matching funds are required to be deposited into this Fund.

B. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2021. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year. The IIJA EC IUP for FFY-2024 will accompany the Program’s application to EPA for the FFY-2024 EC Cap Grant.

The amount of the FFY-2024 Cap Grant from EPA for Mississippi for IIJA EC appropriation is $9,568,000. The Program intends to apply for set-asides as described in Section V. These funds must be used in the period of July 2024 through June 2026. As a condition of the FFY-2024 Cap Grant the program agrees to comply with DWSRF regulations, the general grant regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to enter data into SRF Data System no less than quarterly. The FFY-2024 IUP will show in detail the goals (overall and five-year), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518.

C. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding will be held at 9:00 a.m.

on April 28, 2025. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program – EC Fund

The EC Fund was created by the IIJA to provide funding through the DWSIRLF Program for a five-year duration. The following are the Overall and Five-Year Goals for the EC Fund: A. Overall Goal:

B. Five-Year Goals

Identify issues with PFAS constituents in drinking water in water systems serving a population less than 3,300 through financial and technical support for water system sampling of the same.
Reduce the exposure of the public in Mississippi PFAS and other emerging contaminants in drinking water through providing technical and financial assistance to water systems.

III. Structure of the Mississippi DWSIRLF

The Mississippi DWSIRLF IIJA EC is structured around one fund. The portion of the fund designated for projects will consist of 100% principal forgiveness. The funds are broken down further into designated accounts, each having a specific function.

A. DWSIRLF IIJA EC Loan/Operations Fund

Types of Eligible Projects:

For a project to be eligible for funding under the IIJA EC fund, projects must be: 1.) otherwise DWSRF program eligible and 2.) the primary purpose must be to address emerging contaminants in drinking water with a focus on PFAS. Projects that address any contaminant listed on any of EPA’s Contaminant Candidate Lists (CCL1- CCL5) are eligible.

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following as part of the FFY-2024 IUP: a. Administrative Set-aside: Provides financial support to administer the EC loan Program and other non-project-related activities. b. b. Local Assistance and Other State Programs: Provides funding for PFAS sampling of water systems with population less than 3,300. These water systems are not required to sample for UCMR-5 unregulated contaminants in 2024.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF EC Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

Using the FFY-2024 EPA IIJA EC Capitalization Grant allotment for Mississippi of $9,568,000 to provide for both loans and set-aside activities.

The FFY-2024 “Set-aside” use for the IIJA EC Cap grant are outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found in the appendices of this IUP.

B. Financial Planning Process

In accordance with the Board's desire to maintain a financially sound DWSIRLF loan Fund in perpetuity, while at the same time meeting a substantial portion of the drinking water needs pertaining to projects that address emerging contaminants in drinking water in the state within a reasonable period of time, the following financial decisions were made regarding the Fund:

Application for the Full Amount of the IIJA EC Cap Grant

Interest Rate Determination

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2024 IUP, the Board has set a maximum loan amount of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2024, no more than one loan per borrower will be allowed. At the end of the fiscal year, if funds are available, systems previously receiving an award during FFY-2024 may obtain an additional award(s) or an increase to a previous FFY-2024 award, if no other eligible systems are evident.

Interest Rate

Terms for IIJA EC loans (There may be a small amount of interest accrued before 100% principal forgiveness is applied) will be 0% interest rate, with a repayment period of five years for all projects.

Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

FFY-2024 IIJA EC Cap Grant Special Provisions

The FFY-2024 IIJA EC Cap Grant requires 100% subsidization of the IIJA EC Cap Grant amount available for projects. This subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two.

Other Related Issues

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

d. Pre-Award Costs: Project costs incurred prior to loan award will be DWSIRLF loan eligible provided: i. The debt is for work that has begun after the DWSIRLF loan award date. ii. The project is in compliance with all applicable DWSIRLF Program regulations and obtains MSDH approval of all applicable documents prior to award of the DWSIRLF loan. iii. The prospective loan recipient agrees that by incurring costs prior to loan award, it proceeds at its own risk and relieves the Board, the Department, and the Department’s staff of all responsibility and liability should such costs later be determined unallowable for any reason or should such funding not become available for any reason. iv. The prospective loan recipient agrees that by incurring costs prior to loan award, no future commitment of funding a refinanced project is provided.

e. Priority List: The EC Priority List for the FFY-2024 IUP expires on January 2, 2025. Projects listed in the FFY-2024 EC Priority List that do not receive funding by this date will not be funded under the FFY-2024 EC IUP and will

be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2024 EC projects is shown in Section VIII of this IUP. To facilitate the use of federally appropriated funds from the FFY-2024 IIJA EC Cap Grant, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The FFY-2024 EC Capitalization Grant amount of $9,568,000, the state plans to use $1,860,466 of the FFY-2024 EC Capitalization grant to support set-aside activities, further defined in the following Sections A and B. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this EC IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take set-asides for Small Systems Technical Assistance and State Program Management from the FFY- 2024 EC Cap Grant but reserves the right to make revisions to utilize additional funds from this set-aside.

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the Administrative Set-Asides that can be taken the greatest of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal to 4 percent of all grant awards to the fund for the fiscal year. The EPA Combined SRF IIJA Implementation Memo dated March 8, 2022, states that set-asides for the EC Cap Grant are consistent with the DWSRF regulations. The State plans to use the maximum allowable (4%) for "Administrative" purposes from the FFY-2024 EC Cap Grant.

B. Small System Technical Assistance

C. State Program Management

The state does not intend to use this set-aside from the FFY-2024 EC Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management related to LCRR and LSLR. The program reserves the right to these funds in amended or future application to be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act.

D. Local Assistance and Other State Programs

The state intends to use the first 10% of the 15% set-aside amount which is allowed from the FFY-2024 IIJA EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 1,000 but greater than 300 that are not currently required to sample for UCMR-5.

The state intends to use the remaining 5% of the 15% set-aside amount which is allowed from the FFY-2024 EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 3,300 and greater than or equal to 1,000 that are not currently required to sample for UCMR-5.

VI. Priority System

Are DWSIRLF-eligible and address the most serious risk to human health related to identifying and addressing emerging contaminants in drinking water, with a focus on PFAS.
Assist systems most in need, on a per household basis.
Prioritize addressing PFAS in drinking water over other eligible emerging contaminants.

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Subsidization from FFY-2024 EC Cap Grant

The FFY-2024 IIJA EC Cap Grant mandates 100% of the projects part of the Grant be provided as subsidization to loan recipients. Based on the Grant of $9,568,000 and set-aside amount of $1,860,466, a minimum of $7,707,534 in subsidization is required. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supply loan recipients, and which

received reimbursements with Federal EC Cap Grant funds during the lifetime of the project, from loan initiation through loan closeout. If the amount of PF which a project is eligible exceeds the amount of Federal EC Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Disadvantaged Community Program

a. DWSRF EC Capitalization Grant Funds

For this funding, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of the IIJA of 2021 (P.L. 117-8) for providing subsidy to water systems for addressing emerging contaminants in drinking water. 100% principal forgiveness will be available for the project portion of the FFY-2024 EC Cap Grant to loan recipients. The FFY-2024 EC federal appropriation for the Program is $9,568,000. The project portion of the FFY- 2024 EC Cap Grant is $7,707,534. The principal forgiveness (100%) available to eligible borrowers is $7,707,534.

All IIJA EC projects will receive 100% Principal Forgiveness.

PF will be extended to projects until all mandated subsidy funds are obligated. The amount of PF given will be assigned at loan award.

In the event that a LR declines their loan that includes PF, the released PF may be reallocated to other projects for the present fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

DWSRF EC Priority System

to give highest priority to those projects that address the most serious risks to human health and that address emerging contaminants in drinking water. Projects will be ranked as described in Section C.

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA; (3) encourage participation in short-term and long-term technical assistance programs; and (4) encourage certifying and providing support for a system’s Asset Management Plan. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Affordability Points + Assistance Program Points + Asset Management Plan Points

D. Priority System Deadlines

By January 1, 2025, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

By May 1, 2025, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2024 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2024 IUP.
By August 1, 2025, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval.

VII. FFY-2024 IIJA EC LISTS Fiscal Year - 2024 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List – IIJA Emerging Contaminants

Zip Priority Service Area Loan Amount Statewide Project Project Description Code Points Population Request Cum. $ Category XIII: Other

Corinth, City of Treatment Plant Modifications for PFA/PFOs 38834 1558 14998 $6,900,510 $6,900,510 Mooreville Richmond Water Association Emerging Contaminants Treatment/ Distribution I 38857 515 10788 $6,350,000 $13,250,510 Farmington Water Association Removal Manganese 38834 442 6000 $5,654,800 $18,905,310 City Point Water Association Removal of Iron and Manganese 38862 141 2455 $2,000,000 $20,905,310 Poplar Springs Water District Removal of Manganese and Iron 39114 88 1188 $4,534,031 $25,439,341

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2024 EC IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2024 EC IUP and funding projects shown on the FFY-2024 EC Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2024 IIJA EC Cap Grant.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2024 EC IUP and Set-Aside Work Plan.

APPENDICES

APPENDIX A – FUNDS REPORT DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM - EMERGING CONTAMINANTS FUNDS REPORT - MARCH 2025

FFY-2024 Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $9,568,000 FFY 2022 National Title I DWSRF Reallotment- Mississippi $282,000 State Match Required (0% of Mississippi's Allotment) + $0 Capitalization Grant for DWSRF w BIL Supplemental = $9,850,000

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - the greater of: $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award]

$233,906 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $191,360 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $1,435,200 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total Cap Grant Set-Asides = $1,860,466

Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & BIL Supplemental Grants + $9,850,000 Cap Grant Set-asides - ($1,860,466) Total Cap Grant Funds Available for Loan Obligation = $7,989,534

Funds Anticipated to be Available for Loan Awards Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation

$7,989,534 Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $7,989,534

Funds Needed for Projects on the FFY-2024 Priority List and FFY-2025 & After Planning List Funds Needed for Projects on the Priority List & After Planning List + $17,089,341 Funds Anticipated to be Available for Loan Awards - $7,989,534 Total Fund Need Remaining for Projects on the Lists = $9,099,807

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR IIJA EC CAPITALIZATION GRANT SET-ASIDES

FFY 2024 IIJA EC Cap Grant Federal Set-Asides FFY 2026 Q1 FFY 2026 Q2 FFY 2026 Q3 FFY 2026 Q4 Totals Administration $58,477 $58,477 $58,477 $58,477 $233,906 Small System Tech Assist $47,840 $47,840 $47,840 $47,840 $191,360 Local Asst. & Other St. Programs $358,800 $358,800 $358,800 $358,800 $1,435,200 Total: $465,117 $465,117 $465,117 $465,117 $1,860,466

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2024 1 st Quarter $2,462,500 $2,462,500 Cap Grant FFY-2026

No. 1 of 4

FFY-2024 2nd Quarter $2,462,500 $4,925,000 Cap Grant FFY-2026

No. 2 of 4

FFY-2024 3rd Quarter $2,462,500 $7,387,500 Cap Grant FFY-2026

No. 3 of 4

FFY-2024 4th Quarter $2,462,500 $9,850,000 Cap Grant FFY-2026 No. 4 of 4

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024 1 st Quarter $2,462,500 $2,462,500 Cap Grant FFY-2026

No. 1 of 4

FFY-2024 2nd Quarter $2,462,500 $4,925,000 Cap Grant FFY-2026

No. 2 of 4

FFY-2024 3rd Quarter $2,462,500 $7,387,500 Cap Grant FFY-2026

No. 3 of 4

FFY-2024 4th Quarter $2,462,500 $9,850,000 Cap Grant FFY-2026 No. 4 of 4

APPENDIX E – EMERGING CONTAMINANTS TESTING

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Small System Technical Assistance Set-Aside & Local Assistance and Other State Programs Set-aside of the DWSRF EC in an Emerging Contaminants Testing Program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in testing their system to identify emerging contaminants for treatment projects. Emerging contaminants are defined as those listed on EPA’s Contaminant Candidate Lists (CCL1- CCL5).

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the IIJA EC FFY-2024 Cap Grant to provide funding for EC Test to ultra small systems serving a population of 300 or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services to water systems with a population of less than 300. This assistance with will be available on a first-come, first-serve basis to water systems serving a population of 300 or less.

VII

Mobilization – Once the communication phase has been completed and the system request to move forward, staff of the contractor will mobilize to the selected site and commence with the plan and testing of the System’s drinking water. Acceptable methods of testing will be determined and outlined by the Department then communicated to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for an Emerging Contaminants Treatment Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Emerging Contaminants Testing Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

VIII

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2024 and After Planning List” for the purpose of funding such a project during FFY-2024 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

xii

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

xiii

Part 22 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan

33 Miss. Admin. Code Pt. 22 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 22: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM IIJA LEAD SERVICE LINE REPLACEMENT

INTENDED USE PLAN FOR FFY-2024

Approved by the Board 5/2/2025

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

iii

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND IIJA LEAD SERVICE LINE REPLACEMENT INTENDED USE PLAN FOR FFY-2024

TABLE OF CONTENTS

INTRODUCTION ......................................................................................................................... 1
STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND ......................... 1
PROGRAM OVERVIEW ............................................................................................................... 2
PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES ........................................................... 2

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS

REVOLVING LOAN FUND (DWSIRLF) PROGRAM – LSLR FUND ............................................. 3

III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ...................................................................... 3

A. DWSIRLF IIJA LSLR LOAN/OPERATIONS FUND .................................................................... 3

Types of Eligible Projects: .................................................................................................................... 4
Set-aside Accounts: .............................................................................................................................. 4 IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................ 5
1. SOURCE AND USE OF FUNDS ...................................................................................................... 5
2. FINANCIAL PLANNING PROCESS ............................................................................................... 5
Application for the Full Amount of the IIJA LSLR Cap Grant ................................................................ 5
Interest Rate Determination .................................................................................................................. 5 C. FINANCIAL TERMS OF LOANS ................................................................................................... 6
Funding Limit ...................................................................................................................................... 6
Interest Rate ......................................................................................................................................... 6
FFY-2024 IIJA LSLR Cap Grant Special Provisions ............................................................................. 6
Other Related Issues............................................................................................................................. 6
1. SET-ASIDE ACTIVITIES ............................................................................................................ 8
2. ADMINISTRATION ...................................................................................................................... 8
3. SMALL SYSTEM TECHNICAL ASSISTANCE ................................................................................ 8
4. STATE PROGRAM MANAGEMENT .............................................................................................. 9
5. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS................................................................ 9
VI. PRIORITY SYSTEM ................................................................................................................. 10 A. FUNDING AND RANKING RATIONALE ...................................................................................... 10
Funding Lists and Bypass Procedure .................................................................................................. 10
Loan Decreases.................................................................................................................................. 10
Subsidization from FFY-2024 LSLR Cap Grant .................................................................................. 11
1. PRIORITY RANKING CRITERIA ................................................................................................ 13
2. PRIORITY SYSTEM DEADLINES ............................................................................................... 15
VII. FFY-2024 LSLR PRIORITY LIST ..................................................................................... 16 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ............... 17

APPENDICES I APPENDIX A II APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR IIJA LSLR CAPITALIZATION GRANT SET-ASIDES........................................................................................................................ III APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE ..... IV (SCHEDULE OF INCREASES TO ACH CEILING)........................................................................ IV APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ......................................................................................... V APPENDIX E – LEAD SERVICE LINE INVENTORY WORKPLAN ........................................... VI APPENDIX F - CERTIFICATIONS ............................................................................................... VIII APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT ........................................ X

I. INTRODUCTION

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. The Infrastructure Investment and Jobs Act (IIJA) of 2021 (P.L. 117-8) additionally amended Section 1452 of the SDWA and appropriated funds for Lead Service Line Replacement. This Intended Use Plan identifies the State of Mississippi’s proposed use of Federal Fiscal Year (FFY) 2024 DWSRF Lead Service Line Replacement (LSLR) allotment of $28,650,000 and national reallotment of $1,222,000.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

The DWSIRLF IIJA Lead Service Line Replacement (LSLR) Fund consists of federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state’s allotment of those grants is based on EPA’s Needs Survey that is performed every four years. No State matching funds are required to be deposited into this Fund.

B. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2022. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year to year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year. This IIJA LSLR IUP for FFY-2024 will accompany the Program’s application to EPA for the FFY-2024 LSLR Cap Grant.

The amount of the FFY-2024 EPA Cap Grant for the IIJA LSLR fund is $28,650,000 and FFY 2022’s reallotment is $1,222,000. The Program intends to apply for set-asides as described in Section V. These funds must be used in the period of July 2024 through June 2026. As a condition of the FFY-2024 Cap Grant the program agrees to comply with DWSRF regulations, the general grant regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to enter data into SRF Data System no less than quarterly. The FFY-2024 IUP will show in detail the goals (overall and five-year), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Brittney Carmichael, Program Support Specialist, at (601) 576-7649. C. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding will be held at 9:00 a.m. on April 28, 2024. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those

desiring to receive a copy of the oral proceeding transcript should contact Brittney Carmichael, Program Support Specialist, at (601) 576-7649. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program – LSLR Fund

The LSLR Fund was created by the IIJA to provide funding through the DWSIRLF Program for a five-year duration. Overall and Five-Year Goals for the LSLR Fund include:

A. Overall Goal:

Improve public health by providing funding and technical support to public water systems in Mississippi for the removal of lead materials in drinking water service lines and related activities.

B. Five-Year Goals:

Improve public health by providing technical support to small (less than 10,000 population) public water systems in Mississippi for the completion of lead service line inventories. This goal can lead to providing capital project funding for the removal of lead service lines identified during these inventories.
Provide funding and technical support to public water systems in Mississippi in planning for full, not partial, lead service line replacement. This helps to address the equity challenge that for some property owners, the cost to replace their portion of lead service lines is prohibitively high 1 .

III. Structure of the Mississippi DWSIRLF

The Mississippi DWSIRLF IIJA LSLR is structured around one fund. The portion of the fund designated for projects will consist of 49% principal forgiveness. The balance of the project fund will be repaid. This will sustain the Base DWSIRLF program and help it to achieve its respective goals. The funds are broken down further into designated accounts, each having a specific function.

A. DWSIRLF IIJA LSLR Loan/Operations Fund

1 USEPA, Combined SRF Implementation of IIJA Memo, March 8, 2022

planning, designing, and constructing the project are reimbursed to the recipient. Cap grants from EPA will be deposited into this Fund’s account.

Types of Eligible Projects:

The DWSIRLF Program could consider whether reasonable cost for repair to the privately-owned structure, if damaged during privately-owned LSL replacement, is eligible for DWSIRLF funding.

Source: EPA, Addressing Lead in Drinking Water with the DWSRF, 816-F-18-005, March 2019.

Set-aside Accounts:

IV. Financial Status of the DWSIRLF

A. Source and Use of Funds

Using the FFY-2024 IIJA LSLR Capitalization Grant allotment for Mississippi of $28,650,000 to provide for both loans and set-aside activities. The FFY 2022 reallotment of $1,222,000 will be used only for loans.

The “set-asides” use for the FFY-2024 IIJA LSLR Cap grant are outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found in the appendices of this IUP.

B. Financial Planning Process

In accordance with the goals of the LSLR fund of the DWSIRLF Program, the Board has made the following financial decisions regarding the Fund:

Application for the Full Amount of the IIJA LSLR Cap Grant

Interest Rate Determination

It is the Board’s decision to offer 0% interest on DWSIRLF loans from the IIJA LSLR fund.

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2024 IUP, the Board has set a maximum loan amount of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, no more than one loan per borrower will be allowed. At the end of the fiscal year, if funds are available, systems previously receiving an award may obtain an additional award(s) or an increase to a previous award, if no other eligible systems are evident.

Interest Rate

Terms for IIJA LSLR loans will be 0% interest rate, with repayment periods as follows:

For Lead Service Line Inventory project loans, a standard five-year repayment term, with the maximum repayment term of 10 years. The reason for the shorter repayment terms is that these projects are not capital projects and do not improve or build a physical asset owned by the water system.
For Lead Service Line Replacement project loans, a standard 20-year repayment term. The maximum loan amortization allowable will be 30 years, or 40 years for disadvantaged communities. These maximums may not, however, exceed the design life of the project.

Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

FFY-2024 IIJA LSLR Cap Grant Special Provisions

The FFY-2024 IIJA LSLR Cap Grant requires 49% subsidization of the IIJA LSLR Cap Grant Amount. This subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates,” or a combination of the two.

Other Related Issues

principal forgiveness for the IIJA LSLR FFY-2024 Cap Grant is 49% of the total Cap Grant. The Board has set a limit of 70% of the requested loan amount which a loan recipient may receive in subsidy for one loan. Once the limit of the appropriation subsidy funds has been reached for the FFY-2024 Cap Grant, loans will return to the DWSIRLF’s standard terms without principal forgiveness. In all cases, loans will be LSLR projects and associated activities directly connected to the identification, planning, design, and replacement of LSLs.

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

e. Priority List: The LSLR Priority List for the FFY-2024 IUP expires on January 2, 2025. Projects listed in the FFY-2024 LSLR Priority List that do not receive funding by this date will not be funded under the FFY-2024 LSLR IUP and will be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2024 LSLR projects is shown in Section VIII of this IUP. To facilitate the use of federally appropriated funds from the FFY- 2024 IIJA LSLR Cap Grant, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the Administrative Set-Asides that can be taken the greatest of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal to 4 percent of all grant awards to the fund for the fiscal year. The EPA Combined SRF IIJA Implementation Memo dated March 8, 2022, states that set-asides for the LSLR Cap Grant are consistent with the DWSRF regulations. The State plans to use the maximum allowable (4%) for “Administrative” purposes from the FFY- 2024 LSLR Cap Grant.

The state will continue to exercise its right to reserve the administrative amounts from previous Cap Grants. Reserving the previous years’ 4% administrative set- aside can ensure that the Program will continue to operate with an adequate DWSIRLF staff for proper management of the Program.

B. Small System Technical Assistance

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the IIJA LSLR FFY-2024 Cap Grant to provide funding for LSL inventories to ultra small systems serving 750 connection or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services for lead service line inventories to water systems with connections of less than 750. This assistance with lead service line inventories will be available on a first-come, first-serve basis to water systems serving connections of 750 or less. More detail is provided in the State of Mississippi’s Set-Aside Work Plan included as Appendix E to this IUP.

C. State Program Management

At this time, the state does not intend to use the 10% set-aside from the FFY-2024 LSLR Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management related to LCRR and LSLR. The program reserves the right to utilize these funds for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act from future LSLR related grant provide through The Infrastructure Investment and Jobs Act (IIJA).

D. Local Assistance and Other State Programs

The state intends to use the of the 15% set-aside amount allowed for Local Assistance from the FFY-2024 IIJA LSLR Cap grant to provide funding for LSL inventories to public water systems serving varying levels of connections as outline in the attached workplan.

VI. Priority System

The SDWA provides the state with the flexibility to determine how to best utilize the LSLR Cap grant. To meet the goals of public water systems in the State of Mississippi and this FFY-2024 LSLR IUP, those projects which meet the following will be given priority:

Address the most serious risk to human health related to lead in service lines and associated activities directly connected to the identification, planning, design and replacement of lead service lines.
Assist systems most in need, on a per household basis.

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure

Should any projects on the FFY-2024 LSLR Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed, and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest-ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available. 2. Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns;

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Subsidization from FFY-2024 LSLR Cap Grant

49% of the FFY-2024 LSLR Cap Grant will be subsidized. Based on the Grant of $28,650,000, the required amount of subsidization is $14,038,500. The DWSIRLF’s subsidization will be in the form of “Principal Forgiveness” (PF) to individual public water supplies that are considered disadvantaged communities, and which received reimbursements with Federal LSLR Cap Grant funds during the lifetime of the project, from loan initiation through loan closeout. If the amount of PF which a project is eligible exceeds the amount of Federal LSLR Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two-year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two-year period. Subsidization for FFY-2024 LSLR Priority List projects may be awarded to projects eligible for PF in FFY-2025 and FFY-2026.

Disadvantaged Community Program

a. DWSRF LSLR Capitalization Grant Funds

For this funding, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of the IIJA (P.L. 117-8) for providing subsidy for disadvantaged systems. For the LSLR fund, 49% will be subsidized. The FFY-2024 LSLR federal appropriation for the Program is $28,650,000. The principal forgiveness (49%) allowable to eligible borrowers is $14,038,500.

90% < LR MHI < 100% - 49% Principal Forgiveness 80% < LR MHI < 90% - 56% Principal Forgiveness 70% < LR MHI < 80% - 63% Principal Forgiveness LR MHI < 70% - 70% Principal Forgiveness

PF will be extended to projects until all mandated subsidy funds are obligated. Due to the limited amount of PF funds, the maximum amount of PF funds a loan recipient may receive for a project will be 70% of the project budget, which is capped at $5,000,000. The amount of PF given will be assigned at loan award. Once subsidy funds are depleted, only standard loans will be made with DWSIRLF funds.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

DWSRF LSLR Priority System

Project Categories applicable to the DWSRF Base/Supplemental IUP that have been eliminated from this LSLR IUP because they are not applicable are Categories I through II and IV through XII. Projects for the LSLR Priority List will be ranked from Categories III through XIII in priority order; that is, all Category III projects are ranked higher than subsequent category projects, etc. Ranking is established in the same manner for the remaining categories. Adjustments are made as necessary to comply with the set-aside provisions of the Federal SDWA and as established by the Board [Section 1542(a) (2) of SDWA]. As stated previously, the order of Categories III - XIII is intended to give highest priority to those projects that address the most serious risks to human health. Projects within each category will be ranked as described in Section C.

Category III – Primary Drinking Water Standards This category includes projects to facilitate compliance with Primary Drinking Water Standards. To qualify for this category, projects must correct deficiencies resulting in non-compliance with the primary drinking water standards.

Category XIII – Other This category includes projects that do not meet the criteria of any other listed category and have been determined LSLR loan eligible in accordance with the DWSIRLF program regulations.

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA; (3) encourage participation in short-term and long-term technical assistance programs; and (4) encourage certifying and providing support for a system’s Asset Management Plan. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs

The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Affordability Points + Assistance Program Points + Asset Management Plan Points

D. Priority System Deadlines

Those that have submitted Request for Ranking: by January 1, 2025, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

By May 1, 2025, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2024 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2024 IUP.
By August 1, 2025, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval.

VII. FFY-2024 LSLR PRIORITY LIST Fiscal Year - 2024 Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority List – IIJA Lead Service Line Replacement

No projects identified to date.
MSDH has not yet been able to establish assistance agreements for any of the inventory projects due to unclear expectations about inventory requirements, compliance challenges, reservations on the part of borrowers, and staffing challenges.
MSDH intends to generate applications for new lead service line inventories and replacement projects with help from additional contractor support financed from the set-asides. MSDH will increase outreach to communities on the existing IUPs to accelerate progress on the inventories. Funds will be assigned as potential borrowers complete the program requirements to apply for funding.
Lead service line inventories financed with the 2% small systems technical assistance set-asides from the 2022 and 2023 IIJA DWSRF LSLR capitalization grants are ongoing. Over the past seven months, 105 systems have received the following LSL technical assistance:

Task Hours Task Summary Project Management 14.50 Information Sessions, Internal Meetings, Program Management, Reporting and Meeting Prep Enrollment 134.50 Phone Calls and Follow Up Emails a part of the Follow Up Program Baseline Inventory 76.00 Ticket to Review, Processing Data, Troubleshooting Data Athena: Data Processing 17 Athena is the system used internally to enrich water system data and cross reference tax parcel data Escalated Data Review 0.25 Escalated Data Needs TOTAL: 242.25

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2024 LSLR IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2024 LSLR IUP and funding projects shown on the LSLR Priority List (Section VII), the Board will have the means to plan for and fund projects that will address lead service line replacement projects and associated activities. Funding of the system projects will be determined by the amount of funding to be received in the FFY-2024 IIJA LSLR Cap Grant.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2024 LSLR IUP and Set-Aside Work Plan.

APPENDICES

APPENDIX A

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM - LEAD LINE FUNDS REPORT - MARCH 2025

FFY-2024 Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $28,650,000 National Reallotment - MS Portion $1,222,000 State Match Required (0% of Mississippi's Allotment) + $0 2024 Capitalization Grant for DWSRF w IIJA Supplemental = $29,872,000

Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - the greater of: $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award]

$233,906 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $573,000 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $4,297,500 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total 2024 Cap Grant Set-Asides = $5,104,406

Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & IIJA Supplemental Grants + $29,872,000 Cap Grant Set-asides - ($5,104,406) Total Cap Grant Funds Available for Loan Obligation = $24,767,594

Funds Anticipated to be Available for Loan Awards Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $24,767,594 Unobligated Funds Carried Over + $0.00 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $24,767,594

Funds Needed for Projects on the FFY-2024 Priority List and FFY-2025 & After Planning List Funds Needed for Projects on the Priority List & After Planning List + $0 Funds Anticipated to be Available for Loan Awards - $24,767,594 Total Fund Need Remaining for Projects on the Lists = ($24,767,594)

III

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR IIJA LSLR CAPITALIZATION GRANT SET-ASIDES

FFY 2024 IIJA LSLR Cap Grant Federal Set-Asides FFY 2024 Q3 FFY 202 Q4 FFY 2025 Q1 FFY 2025 Q2 Totals Administrative $58,477 $58,477 $58,477 $58,477 $233,906 Small System Tech Assist. $143,250 $143,250 $143,250 $143,250 $573,000 Local Asst. & Other St. Programs $1,074,375 $1,074,375 $1,074,375 $1,074,375 $4,297,500 Total: $1,276,102 $1,276,102 $1,276,102 $1,276,102 $5,104,406

APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE (SCHEDULE OF INCREASES TO ACH CEILING)

FFY-2024 1 st Quarter $7,468,000 $7,468,000 Cap Grant FFY-2026

No. 1 of 4

FFY-2024 2nd Quarter $7,468,000 $14,936,000 Cap Grant FFY-2026 No. 2 of 4

FFY-2024 3rd Quarter $7,468,000 $22,404,000 Cap Grant FFY-2026

No. 3 of 4

FFY-2024 4th Quarter $7,468,000 $29,872,000 Cap Grant FFY-2026 No. 4 of 4

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2024 1 st Quarter $7,468,000 $7,468,000 Cap Grant FFY-2026

No. 1 of 4

FFY-2024 2nd Quarter $7,468,000 $14,936,000 Cap Grant FFY-2026 No. 2 of 4

FFY-2024 3rd Quarter $7,468,000 $22,404,000 Cap Grant FFY-2026

No. 3 of 4

FFY-2024 4th Quarter $7,468,000 $29,872,000 Cap Grant FFY-2026 No. 4 of 4

APPENDIX E – LEAD SERVICE LINE INVENTORY WORKPLAN

INTRODUCTION

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the IIJA LSLR FFY-2024 Cap Grant to provide funding for the creation of LSL inventories to small systems serving connections of 750 or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services for lead service line inventories to water systems serving 750 and fewer connections. on a first-come, first-serve basis to water systems serving 750 and fewer connections. The contractual assistance will work though the selected contractor to assist these small systems primarily in the generation of service line inventories including those service lines that may be lead or lead influenced. The contractual assistance may also include support for non-routine lead sampling, funding applications, and/or public engagement.

VII

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for a Lead Service Line Replacement Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Lead Line Inventory Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

VIII

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2024 and After Planning List” for the purpose of funding such a project during FFY-2024 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

xii

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

Part 23 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Base Intended Use Plan

33 Miss. Admin. Code Pt. 23, R. 04700071 Rule 04700071

Town of Byhalia Emergency Project to address TCE Contamination Y 38611 0 $1,862,394

01: Segmented projects

33 Miss. Admin. Code Pt. 23, R. 0500008 Rule 0500008

CITY OF PHILADELPHIA Water Treatment Plant Improvements Y 39350 1872 $ 2,000,000

33 Miss. Admin. Code Pt. 23, R. 0520008 Rule 0520008

TOWN OF SHUQUALAK Water System Expansion - Phase 2 Y 39361 54 $ 1,162,423

02: Previous Year Certified Projects

33 Miss. Admin. Code Pt. 23, R. 0750004 Rule 0750004

FISHER FERRY WATER DISTRICT Clearwell Construction, High Service Pumps, and Existing Clearwell Renovations N 39180 1887 $ 1,240,620

33 Miss. Admin. Code Pt. 23, R. 0460001 Rule 0460001

BUNKER HILL WATER ASSOCIATION Water System Improvements - 2026 Y 39429 729 $ 1,966,700

33 Miss. Admin. Code Pt. 23, R. 0570014 Rule 0570014

SUNNYHILL WATER ASSOCIATION Water System Improvements - 2026 Y 39649 640 $ 2,495,400

04: One Well

33 Miss. Admin. Code Pt. 23, R. 0060016 Rule 0060016

CITY OF ROSEDALE Rosedale Water System Improvement Project Y 38769 817 $ 1,009,983

33 Miss. Admin. Code Pt. 23, R. 0640012 Rule 0640012

POPLAR SPRINGS WATER DISTRICT Poplar Springs Water District Well N 39114 199 $ 2,532,000

33 Miss. Admin. Code Pt. 23, R. 0540013 Rule 0540013

MT OLIVET WATER ASSOCIATION Water System Improvements for Mt. Olivet Water Association Y 38606 110 $ 4,002,513

33 Miss. Admin. Code Pt. 23, R. 0490006 Rule 0490006

NORTH DISTRICT 1 WATER ASSN. Water System Improvements for North District One Water Association N 38967 84 $ 3,780,014

05: Pressure Deficiencies

33 Miss. Admin. Code Pt. 23, R. 0650011 Rule 0650011

TOWN OF TAYLORSVILLE FY2026 Water System Improvements Y 39168 543 $ 2,000,000

33 Miss. Admin. Code Pt. 23, R. 0250021 Rule 0250021

REEDTOWN WATER ASSN SRF Elevated Storage Tank Y 39175 502 $ 3,072,500

07: Capacity Expansion to Serve the Unserved

33 Miss. Admin. Code Pt. 23, R. 0180012 Rule 0180012

RAWLS SPRINGS UTILITY DISTRICT Rawls Springs Utility District - FY26 DWSIRLF Y 39402 720 $ 2,000,000

33 Miss. Admin. Code Pt. 23, R. 0210004 Rule 0210004

NEELY UTILITIES Neely Utilities - FY26 DWSIRLF Y 39461 95 $ 2,000,000

08: Back-up Water Supply Sources Projects

33 Miss. Admin. Code Pt. 23, R. 0510006 Rule 0510006

TOWN OF HICKORY New Well/ Elevated Tank/ Pipe Extension N 39332 289 $ 4,283,958

33 Miss. Admin. Code Pt. 23, R. 0340006 Rule 0340006

HATTEN WATER ASSN New Water Well N 39168 212 $ 2,896,343 09: Existing Facilities Upgrades (Meeting Primary Standards)

33 Miss. Admin. Code Pt. 23, R. 0180008 Rule 0180008

CITY OF HATTIESBURG Rehabilitation of Water Plant No. 1, Phase 3 Y 39403 4091 $ 5,573,133

33 Miss. Admin. Code Pt. 23, R. 0610017 - CITY OF PEARL Water System Improvements Y 39208 3720 $ 5,000,000

33 Miss. Admin. Code Pt. 23, R. 0750011 Rule 0750011

YOKENA-JEFF DAVIS WATER DISTRICT SRF Distribution Improvements N 39180 893 $ 1,260,000

33 Miss. Admin. Code Pt. 23, R. 0430001 Rule 0430001

BOGUE CHITTO WATER ASSOCIATION Elevated Tank Rehabilitation & Linework N 39629 822 $ 1,230,000

33 Miss. Admin. Code Pt. 23, R. 0030024 Rule 0030024

NORTHEAST AMITE WATER ASSN 100,000 Gallon Elevated Tank N 39666 772 $ 1,000,000

33 Miss. Admin. Code Pt. 23, R. 0640006 - CITY OF MAGEE City of Magee - FY26 DWSIRLF Y 39111 440 $ 4,000,000

33 Miss. Admin. Code Pt. 23, R. 0060012 Rule 0060012

TOWN OF MERIGOLD 2026 Water System Improvement Project Y 38759 384 $ 1,008,140

33 Miss. Admin. Code Pt. 23, R. 0610008 Rule 0610008

FANNIN WATER ASSN-NORTH Water System Improvements N 39047 358 $ 4,610,934

33 Miss. Admin. Code Pt. 23, R. 0190006 Rule 0190006

SIXTOWN WATER ASSOCIATION 100,000 Gallon Elevated Tank Y 39653 354 $ 1,000,000

33 Miss. Admin. Code Pt. 23, R. 0820028 - MIDWAY W/A #3 New Treatment Plant Y 39039 281 $ 2,700,000

33 Miss. Admin. Code Pt. 23, R. 0060002 Rule 0060002

TOWN OF BENOIT 2026 Water System Improvement Project Y 38725 279 $ 1,000,000

33 Miss. Admin. Code Pt. 23, R. 0590009 - TOWN OF JUMPERTOWN Water System Improvements Y 38829 257 $ 2,458,600

33 Miss. Admin. Code Pt. 23, R. 0060006 Rule 0060006

CITY OF CLEVELAND 2026 Water System Improvement Project Y 38732 221 $ 2,016,906

33 Miss. Admin. Code Pt. 23, R. 0610021 - TOWN OF PUCKETT New Water Well N 39151 202 $ 1,950,000

33 Miss. Admin. Code Pt. 23, R. 0340021 - CITY OF LAUREL Water System Improvements Y 39441 14 $ 8,290,000

$ 81,402,561

Notes: See section VI.B. of this document for more details. Applications exceeding a loan request of $5,000,000 require further approval by the Board. See section IV.C.1 of this document.

DC column references Disadvantaged Communities. Y signifies yes and N signifies no. The principle forgrivenees received will be based on the process outlined for the cap grant allotments. See section VI.A.5a & 5b.

The Funding line will be set to $90M.

FFY-2026 Planning List FINAL Fiscal Year - 2027 and After Planning List Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Projects included on the Planning List did not meet all submission deadlines, are not projected to be ready to proceed during the FFY, or had multiple requests and asked to be placed on the Planning List. These projects have been ranked on the Planning List based on information provided on the submitted Request for Ranking Form. A determination of a project’s program eligibility cannot be completed until sufficient documentation has been submitted to the Department to evaluate eligibility in accordance with program requirements

Category Project Project Name Zip Code Priority Points Loan Funds

04: One Well

33 Miss. Admin. Code Pt. 23, R. 0490006 Rule 0490006

NORTH DISTRICT 1 WATER ASSN. Water System Improvements 38967 84 $ 3,780,014

05: Pressure Deficiencies

33 Miss. Admin. Code Pt. 23, R. 0730006 Rule 0730006

CITY OF NEW ALBANY Water System Distribution Improvements 38652 1406 $ 1,600,000

33 Miss. Admin. Code Pt. 23, R. 0220002 Rule 0220002

G T & Y WATER DISTRICT INC Distribution Improvements for GT&Y Utility District 38901 376 $ 4,302,456

33 Miss. Admin. Code Pt. 23, R. 0690006 Rule 0690006

STRAYHORN W/A-CROCKETT Water System Improvements for Strayhorn 38668 271 $ 5,000,000

33 Miss. Admin. Code Pt. 23, R. 0100008 Rule 0100008

SIMPSON WATER ASSOCIATION #1 Water System Improvements 39772 210 $ 3,090,000

07: Capacity Expansion to Serve the Unserved

33 Miss. Admin. Code Pt. 23, R. 0340019 Rule 0340019

SOUTHWEST JONES W/A-NORTH Waterline Improvements Project 39459 2725 $ 1,200,000

33 Miss. Admin. Code Pt. 23, R. 0230065 Rule 0230065

HANCOCK COUNTY WATER & SEWER Bayside Water System Improvements 39556 1778 $ 2,714,625

33 Miss. Admin. Code Pt. 23, R. 0240272 Rule 0240272

HARRISON COUNTY UTILITY AUTHORITY-EAST Lorraine Road Water Main Extension 39503 683 $ 823,800

33 Miss. Admin. Code Pt. 23, R. 0230071 Rule 0230071

HANCOCK COUNTY WATER & SEWER- BAYSIDE Bayside Water System Improvements 39556 93 $ 4,986,117

33 Miss. Admin. Code Pt. 23, R. 0240277 Rule 0240277

WEST HARRISON WATER & SEWER DISTRICT Phase 3 Water Improvements - Edwin Ladner Rd 39571 44 $ 3,368,737

33 Miss. Admin. Code Pt. 23, R. 0090010 Rule 0090010

SPARTA WATER ASSOCIATION #1 Waterlines & Water Tank Foundation Upgrades 39776 37 $ 2,000,000 08: Back-up Water Supply Sources Projects

33 Miss. Admin. Code Pt. 23, R. 610003 Rule 610003

CITY OF BRANDON BRANDON INDUSTRIAL PARK WATER WELL 39042 29276 $ 737,800

33 Miss. Admin. Code Pt. 23, R. 0780005 Rule 0780005

CITY OF EUPORA Water Supply and Storage Improvements 39744 593 $ 4,442,000

33 Miss. Admin. Code Pt. 23, R. 0540011 - INDEPENDENCE WATER ASSOCIATION 500 GPM Well 38606 429 $ 2,010,000

33 Miss. Admin. Code Pt. 23, R. 0540013 Rule 0540013

MT OLIVET WATER ASSOCIATION Water System Improvements for Mt. Olivet 38606 110 $ 4,002,513

09: Existing Facilities Upgrades (Meeting Primary Standards)

33 Miss. Admin. Code Pt. 23, R. 0140002 Rule 0140002

CLARKSDALE PUBLIC UTILITIES SRF Water System Improvements 38614 4755 $ 3,106,245

33 Miss. Admin. Code Pt. 23, R. 0130008 - CITY OF WEST POINT City of West Point Rehab 39773 4345 $ 4,160,000

33 Miss. Admin. Code Pt. 23, R. 00330005 - LILY ROSE W/A #1 Systemwide AMR Installation 39474 2055 $ 683,750

33 Miss. Admin. Code Pt. 23, R. 0230001 Rule 0230001

CITY OF BAY ST LOUIS Elevated Water Storage Tank 39520 1437 $ 3,016,250

33 Miss. Admin. Code Pt. 23, R. 0180011 - CITY OF PETAL New Well and Elevated Tank 39465 1210 $ 4,191,000

33 Miss. Admin. Code Pt. 23, R. 0420010 Rule 0420010

EAST LEFLORE WATER & SEWER DST Water System Improvements 38930 1048 $ 3,010,963

33 Miss. Admin. Code Pt. 23, R. 0450006 Rule 0450006

CANTON MUN UTL CMU Water Treatment Plant Replacement and Modernization Project 39046 943 $ 10,000,000

33 Miss. Admin. Code Pt. 23, R. 0230001 - CITY OF BAY ST LOUIS Waterline Improvements 39520 798 $ 5,429,250

33 Miss. Admin. Code Pt. 23, R. 0220008 Rule 0220008

POOR HOUSE W/A #1 Poorhouse Supply & Storage Imp 38901 719 $ 2,662,350

33 Miss. Admin. Code Pt. 23, R. 0550006 - CITY OF POPLARVILLE Water Improvements 39470 635 $ 2,458,400

33 Miss. Admin. Code Pt. 23, R. 0180011 - CITY OF PETAL Waterline Replacement 39465 470 $ 4,191,000

33 Miss. Admin. Code Pt. 23, R. 0720024 - TUNICA COUNTY UTILITY DISTRICT

33 Miss. Admin. Code Pt. 23, R. 38676 412 $ 5,773,890

33 Miss. Admin. Code Pt. 23, R. 0260012 - TOWN OF PICKENS Water System Improvements 39146 234 $ 2,572,535

33 Miss. Admin. Code Pt. 23, R. 0240270 - HCUA-WEST North South Loop Water Main 39503 57 $ 4,409,000

$ 99,722,695

Note: See section VI.B. of this document for more details. Applications exceeding $5,000,000 require further approval by the Board. See section IV.C.1 of this document.

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2026 IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2026 IUP and funding projects shown on the FFY-2026 Priority List (Section VII), the Board will have the means to plan for and fund projects that will address serious public health risks facing the public water supply systems in the State. Funding for the systems’ projects will depend on the amount of funding available and the spending and budget authorities imposed on the Program for FFY 2026.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2026 DWSRF Work Plan.

Additionally, most of the projects, as proposed, should have minimal impact on the environment due to the nature of their design. Where necessary, appropriate environmental reviews will occur and proper permitting through the Mississippi Department of Environmental Quality will be required to ensure minimal impact on the environment.

APPENDICES

APPENDIX A

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM ANTICIPATED FUNDS REPORT - APRIL 2026 FFY-2026 (OCT. 1, 2025 - SEPT. 30, 2026) Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $4,812,000 State Match Required (20% of Mississippi's Allotment) + $962,400 SRF Supplemental Allotment

$31,168,000 State Match Required (20% of Mississippi's Allotment) + $6,233,600 Capitalization Grant for DWSRF w IIJA Supplemental = $43,176,000 State Match Status State Match Required + $7,196,000 Legislated State Match (HB)) - $8,300,000 Remaining State Match Required = ($1,104,000) Cap Grant Set-Asides DWSRF Administrative Expenses [SDWA Sec. 1452(g)(2) - 4%] + $192,480 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $96,240 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $481,200 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $481,200 IIJA Administrative Expenses [SDWA Sec. 1452(g)(2) - 4%] + $495,112 IIJA Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $623,360 IIJA Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $2,636,800 IIJA State Program Management [SDWA Sec. 1452(g)(2) -10%] + $1,091,235 Total Cap Grant Set-Asides = $6,097,627 Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & IIJA Supplemental Grants + $43,176,000 Cap Grant Set-asides - ($1,251,120) IIJA Supplemental Set-asides - ($4,846,507) Total Cap Grant Funds Available for Loan Obligation = $37,078,373 Funds Anticipated to be Available for Loan Awards Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation + $37,078,373 Unobligated Funds Carried Over from FFY-2025 + $97,622,893 Loan Repayments (P&I) Deposited to the Fund 10/01/25 - 09/30/26 + $14,171,199 Interest Earned on Deposits to the Fund 10/01/25 - 09/30/26 + $5,158,151 Loan Increase Reserve

($2,000,000) Total Funds Anticipated to be Available for Loan Awards = $152,030,616 Funds Needed for Projects on the Priority List & After Planning List Funds Needed for Priority List & the After Planning List + $181,125,256 Funds Anticipated to be Available for Loan Awards - $90,000,000 Total Fund Need Remaining for Projects = $91,125,256

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR CAPITALIZATION GRANT SET-ASIDES

FFY 2026 Cap Grant & IIJA Supplemental

Federal Set-Asides FFY 2025 Q1 FFY 2025 Q2 FFY 2025 Q3 FFY 2025 Q4 Totals Administrative $48,120 $48,120 $48,120 $48,120 $192,480 $123,778 $123,778 $123,778 $123,778 $495,112 Small System Tech Assist. $24,060 $24,060 $24,060 $24,060 $96,240 $155,840 $155,840 $155,840 $155,840 $623,360 Local Asst. & Other St. Programs $120,300 $120,300 $120,300 $120,300 $481,200 $659,200 $659,200 $659,200 $659,200 $2,636,800 State Program Management $120,300 $120,300 $120,300 $120,300 $481,200 $272,809 $272,809 $272,809 $272,809 $1,091,235 Base Cap. Grant Total: $312,780 $312,780 $312,780 $312,780 $1,251,120 IIJA Supplemental Cap. Grant Total: $1,211,627 $1,211,627 $1,211,627 $1,211,627 $4,846,507 Total: $1,524,407 $1,524,407 $1,524,407 $1,524,407 $6,097,627

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2025

FFY-2025 1 st Quarter $3,414,500 $3,414,500 Cap Grant FFY-2026 $7,795,250 $7,795,250 No. 1 of 4

$11,209,750 FFY-2025 2nd Quarter $3,414,500 $6,829,000 Cap Grant FFY-2026 $7,795,250 $15,590,500 No. 2 of 4

$22,419,500 FFY-2025 3rd Quarter $3,414,500 $10,243,500 Cap Grant FFY-2026 $7,795,250 $23,385,750 No. 3 of 4

$33,629,250 FFY-2025 4th Quarter $3,414,500 $13,658,000 Cap Grant FFY-2026 $7,795,250 $31,181,000 No. 4 of 4 15,000

$44,854,000

FFY-2026

FFY-2026 1 st Quarter $1,203,000 $1,203,000 Cap Grant FFY-2027 $7,792,000 $7,792,000 No. 1 of 4

$8,995,000 FFY-2026 2nd Quarter $1,203,000 $2,406,000 Cap Grant FFY-2027 $7,792,000 $15,584,000 No. 2 of 4

$17,990,000 FFY-2026 3rd Quarter $1,203,000 $3,609,000 Cap Grant FFY-2027 $7,792,000 $23,376,000 No. 3 of 4

$26,985,000 FFY-2026 4th Quarter $1,203,000 $4,812,000 Cap Grant FFY-2027 $7,792,000 $31,168,000 No. 4 of 4

$35,980,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2025

Quarter Federal Outlay Amount Cumulative Outlay Amount

st Quarter $3,414,500 $3,414,500 $7,795,250 $7,795,250 2nd Quarter $3,414,500 $6,829,000 $7,795,250 $15,590,500 3rd Quarter $3,414,500 $10,243,500 $7,795,250 $23,385,750 4th Quarter $3,414,500 $13,658,000 $7,795,250 $31,181,000 $15,000 $44,854,000

FFY-2026 Funding Available

FFY-2027 Federal Outlay Amount Cumulative Outlay Amount

st Quarter $1,203,000 $1,203,000 $7,792,000 $7,792,000 2nd Quarter $1,203,000 $2,406,000 $7,792,000 $15,584,000 3rd Quarter $1,203,000 $3,609,000 $7,792,000 $23,376,000 4th Quarter $1,203,000 $4,812,000 $7,792,000 $31,168,000

$35,980,000

APPENDIX E - MISSISSIPPI SMALL SYSTEMS TECHNICAL ASSISTANCE SET-ASIDE WORK PLAN

SELECTION PROCESS The current technical assistance contracts expire on June 30, 2026.

Prior to the expiration of the existing contracts an Invitation for Bids (IFB) for the technical assistance contracts will be sent out to potential contractors. All proposals will be evaluated by the Department and recommendations for award will be presented to the Board (at a regularly scheduled Board meeting); all contracts will be awarded.

The contracts for technical assistance are currently awarded to:

• Small Systems Technical Assistance (long-term and intermediate technical assistance) – Communities Unlimited; • Board Management Training Monitoring and Coordination for Water System Officials - Mississippi State University Extension Service; • Hands-On Operator Training - MS Water and Pollution Control Operators Association; • PEER Review Program for Public Water Supplies - MS Water and Pollution Control Operators Association; • Asset Management - MS Water and Pollution Control Operators Association.

Small Systems Technical Assistance:

Comprehensive and Intermediate technical assistance shall be provided to an equivalent of twelve (12) small public water systems annually.

Long-term technical assistance: Comprehensive assistance must be provided to a minimum of six (6) small public water systems for the contract period. The MSDH – Bureau of Public Water Supply will provide the contractor a list of systems that are to receive this assistance. Within 30 days of the start date for that contract year, the contractor will identify, with the help of MSDH, systems that will receive comprehensive technical assistance, complete an initial assessment of the needs of each system and develop a work plan for each water system. The contractor shall submit an assessment and work plan for each system to MSDH for approval prior to initiating technical assistance. MSDH shall use its latest report of Capacity Ratings of Public Water Systems, along with the recommendations of MSDH staff and the contractor, to identify those public water systems that are to receive this assistance.

Activity Objective - provide long-term on-site comprehensive technical assistance to resolve problems identified by contractor. A minimum of six (6) systems will be chosen from a prepared list.

Intermediate technical assistance: This assistance is selective in nature and consists of one or more additional contact or non-contact hours for public water systems previously receiving short-term assistance or systems not requiring comprehensive long-term assistance. Selection of systems will be based on the list supplied by MSDH for the remaining public water systems from the initially prepared list.

Activity Objective - provide intermediate on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Reporting/Evaluation - written progress reports using a format approved by MSDH will be furnished monthly to MSDH and members of the Board by the contractor. The reports shall identify the assistance provided to each system. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

Coordination and Monitoring of Board Management Training for Water System Officials:

Section 41-26-101 of the Mississippi Code of 1972, Annotated, states “Each member elected or reelected after June 30, 1998, to serve on a governing board of any community public water system, except systems operated by municipalities with a population greater than ten thousand (10,000), shall attend a minimum of eight (8) hours of management training within two (2) years following the election of that board member. If a board member has undergone training and is reelected to the board, that board member shall not be required to attend training. The management training shall be organized by the MSDH. The management training shall include information on water system management and financing, rate setting and structures, operations and maintenance, applicable laws and regulations, ethics, and the duties and responsibilities of the association and other organizations. The Department shall develop and provide all training materials. To avoid board members having to interfere with their jobs or employment, management training sessions may be divided into segments and, to the greatest extent possible, shall be scheduled for evening sessions. The Department shall conduct management training on a regional basis.” The contractor shall: serve as the coordinator for MSDH in regards to all activities related to the implementation of the training program in the state; randomly attend training sessions to ensure the established curriculum is being followed and that the curriculum is relevant and effective; manage the Board Member Training Curriculum Review Committee; continue to update the established computerized database to accurately track the most current status of each board member attending the program; and other related duties.

Activity Objective - manage those activities related to the effective training of the members of the governing boards of small community public water systems.

Hands-On Operator Training:

Activity Objectives - Provide a minimum of fourteen (14) hands-on operator training sessions within the year.

Peer Review Assistance: Through the use of trained volunteers, this assistance will be conducted on-site with the systems either selected from a list provided to the contractor by MSDH or with prior MSDH approval. A cooperative agreement between the contractor and the Mississippi Water and Pollution Control Operators’ Association will help provide qualified volunteers to serve as peer review team members. There will be a goal of a minimum of fourteen (14) Peer reviews per contract year with a minimum of three (3) peer reviews per quarter. Each volunteer shall be paid $75 per day for each actual peer review in which the volunteer participates. The contractor will maintain a directory of trained volunteers.

Activity Objectives - provide short-term (less than 8 contact hours) on-site technical assistance to selected systems covering the subject(s) determined by the contractor to be most needed.

Asset Management Training:

Activity Objectives - provide asset management training to water system operators statewide.

AGENCY RESPONSIBILITIES

The MSDH will conduct Small Systems Technical Assistance Set-aside activities through Board approved contracts with providers who will be selected following procedures of the State of Mississippi’s Department of Finance and Administration Public Procurement Review Board. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional full-time equivalent (FTE) requirement is anticipated for state agencies to implement the provisions of this set-aside.

Circuit Rider Set-Aside:

The Contractor will provide practical, on-site technical, managerial, and financial (TMF) capacity support to public water systems serving populations of less than 10,000 and represents an evolution of MSDH’s prior small-system assistance activities by establishing a structured, field-based program that delivers consistent statewide coverage and measurable outcomes, while maintaining eligibility under Section 1452(g)(2) of the Safe Drinking Water Act. The Circuit Rider Program will assist systems through on-site troubleshooting of treatment and distribution issues; guidance in sampling, reporting, and asset-management documentation; and mentoring for operators and managers, particularly at under-resourced systems. The program may also support lead-service-line inventory development, source-water protection, emerging-contaminant sampling, and other capacity-development needs. Circuit Riders will not perform routine operations for systems but will train and guide system staff to build local capacity and compliance capability. This activity complements existing initiatives funded under the 15 percent Local Assistance and Other State Programs set-aside, which include capacity development, asset management, GIS data development, and pilot projects for water- loss reduction. The program aims to assist at least 25 small systems each year and provide a minimum of 100 training or mentoring engagements. Expected benefits include measurable

improvements in small-system performance, reduced non-compliance events, stronger managerial and financial practices, enhanced asset-management capacity, and improved readiness for infrastructure investment.

Activity Objectives - provide asset management training to water system operators statewide.

Reporting/Evaluation - written quarterly reports using a format approved by MSDH. The reports shall include but are not limited to: a) List of Systems engaged b) details of sessions conducted; b) number of attendees and their comments; c) related problems that occurred during or as a result of a training session and any solution(s); d) an itemized list of the costs incurred by the training organization; and e) other related items. The contractor shall meet with the Board on a quarterly basis to update the Board on accomplishments under this contract and answer any questions the Board might have regarding the implementation of this contract.

AGENCY RESPONSIBILITIES

The MSDH will conduct Small Systems Technical Assistance Set-aside activities through State approved contracts with providers who will be selected following procedures of the State of Mississippi’s Department of Finance and Administration Public Procurement Review Board. Contracts of a regulatory nature will be handled solely by MSDH. All providers will report to and be responsible to the MSDH for all contract activities. No additional full-time equivalent (FTE) requirement is anticipated for state agencies to implement the provisions of this set- aside.

APPENDIX F - Mississippi State Program Management Set-Aside Annual Work Plan Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

PUBLIC WATER SYSTEM MANAGEMENT PROGRAM BACKGROUND

This work plan describes how the Drinking Water State Revolving Fund (DWSRF) State Program Management set-aside funds will be expended to support the Public Water Systems Supervision (PWSS) Program.

After reviewing the Draft FFY-2026 Intended Use Plan (IUP) by the Local Governments & Rural Water Systems Improvements Board (Board), the Board will authorize the publication of a legal notice in The Clarion-Ledger for the IUP. The notice will request the public to provide comments on the Draft FFY-2026 Intended Use Plan (IUP). The IUP reserves 10% of the state’s Drinking Water State Revolving Fund (DWSRF) capitalization grant for the State Program Management activities to support the MSDH PWSS Program as allowed under Section 1452(g)(2) of the SDWA Amendments of 1996.

After a public notice period of at least twenty-five (25) days, an oral proceeding will be held to receive and consider comments from the public on the Draft IUP. After the resolution of any comments from the public, the Final FFY-2026 IUP will be presented to the Board for adoption at their next scheduled Board meeting. After adoption by the Board, a second filing with the Secretary of State’s Office occurs. The Final FFY-2026 IUP will be effective thirty (30) days from the date of the second filing with the Secretary of State’s Office.

FUNDING AMOUNT (Standard Capitalization Grant)

The state reserves 10% of the FFY-2026 DWSRF capitalization grant as a set-aside for State Program Management activities of the PWSS Program. The reserved amount will offset the salary, fringe, and indirect cost expenses of a portion of the PWSS personnel positions in the PWSS Program.

NUMBER OF FTE’s PROJECTED FOR IMPLEMENTING THIS SET-ASIDE

The state projects twenty-eight (28) full time equivalents (FTE) will be required to implement the FFY-2026/2027 PWSS Program.

GOALS, OBJECTIVES, OUTPUT, AND DELIVERABLES

One of the set-asides authorized under the 1996 SDWA amendments is the management of the state program, which can be funded by up to 10% of the federal allotment. These funds will support public water system supervision program activities as required to maintain state primacy and to support the activities of the DWSIRLF. MSDH’s PWSS Work Plan outlines in detail the aspects of the PWSS that are supported by this set-aside. Items covered by the

set-aside include: (1) State Primacy Requirements, (2) Non-Primacy Requirements, and (3) Auxiliary Services.

Primacy Requirements

As required to maintain state primacy, MSDH maintains the PWSS programs on an ongoing or as-needed basis. These programs include: revising current primacy programs by adopting new Federal regulations as needed; coordinating for Mid-Year and End-of-Year review with EPA Regional Office; maintaining a sanitary survey program with discrepancy follow-up; participating in state data verification audits; ensuring public water systems (PWSs) are utilizing approved laboratories and a certification program for those laboratories is in place; participating in the EPA Regional oversight; operating in accordance with requirements of the National Primary Drinking Water Regulations; maintaining an active water system design and construction plan and specification review program; ensuring labs used by PWSs within the state are capable of the workload created by regulations; participating in PWS and PWSS training on rule requirements; informing EPA Region 4 of any special state initiatives under the rules or provisions of the SDWA; maintaining records for all rule/policies, enforcing reporting and record keeping as required; maintaining appropriate administrative penalty authority; implementing the PWS definition; attending State/EPA planning and implementation meetings; ensuring that newly permitted PWSs have design/construction capable of compliance with the present and upcoming SDWA regulations; ensuring analytical methods are being applied to demonstrate compliance with the regulations; notifying (if necessary) EPA of intent not to adopt or implement any portion of the rules; and responding to EPA requests for information or verification of state rules implementation.

Additionally, MSDH will provide annual summaries of the status of each effective variance and exemption to EPA; community PWSs that are allowed to monitor less frequently than monthly; and non-community PWSs that are allowed to monitor less frequently than quarterly to EPA. MSDH will also oversee and enforce requirements for rules and regulations adopted with approved federal primacy. These regulations include the SDWA and all applicable rules present and future, primacy packages, and extension agreements of the SDWA.

Non-primacy Requirements

Capacity Development (CD) Program

Unregulated Contaminant Monitoring Rule

Operator Certification

As mandated by the SDWA to maintain full funding for the DWSIRLF, operator certification is an essential part of the PWSS program. Activities required to maintain the operator certification program include providing documentation and evaluation of ongoing program implementation for all annual program submittals subsequent to the initial submittal; supply as required certification of changes and documentation of those changes that are made to the regulations of statutes; perform internal and external program reviews as required by state law.

Source Water Assessment Program

Auxiliary Services

These services include various aspects related to data management, compliance, and enforcement of the PWSS Program.

Information Management and the Safe Drinking Water Inspection System (SDWIS)/Fed Reporting These ongoing activities include: overseeing and enforcing requirements of data management and the Safe Drinking Water Inspection System (SDWIS) /Fed reporting; reporting the state’s PWSS inventory at least annually to SDWIS/Fed; reporting the state’s violations and enforcement actions at least quarterly; participating in EPA/state data managers conference calls; identifying the data manager and alternate for the purpose of making secure transmissions of data intended for SDWIS/Fed through EPA’s Central Data Exchange; establishing and following quality assurance procedures to ensure that PWS data eventually entered in SDWIS/Fed is of the highest reliability and maximum value to the public.

Inspection Strategy This activity includes overseeing and enforcing the regulatory requirements.

Rule Task Force This requires participation in the Rule Writing Task Force and Rule Workshops.

The commitments as stated here and in the PWSS Work plan are adopted as commitments of the State Program Management set-aside.

AGENCY RESPONSIBILITIES MSDH is the agency responsible for implementing required activities under the State Program Management set-aside.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES The success of State Program Activities will be defined by the ability of the MSDH to successfully meet commitments in the PWSS Work Plan. Quarterly and annual reports/submittals required by the PWSS program include documentation and evaluation of ongoing program implementation and success in meeting stated commitments.

APPENDIX G - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a wellhead protection and assistance program. The program will be eliminating inactive wells and/or open holes which pose a contamination risk to the state’s groundwater aquifers, by properly abandoning them in accordance with state guidelines. Local governments realize that the inactive wells/open holes pose a risk of contamination to the groundwater which may be utilized via their active wells; however, funds to properly abandon wells/holes are limited. The financial assistance provided through this set-aside will allow the state, by way of contractual agreement(s), to identify and then properly abandon inactive wells/open holes posing contamination risks to the state’s groundwater aquifers.

SELECTION PROCESS

The contract for coordination of the decommissioning/properly closing inactive water wells/open holes was bid and awarded; the current contract runs until June 30, 2026. A new contract for the decommissioning/properly closing inactive water wells/open holes is currently being developed in accordance with new State contracting requirements.

The contracts for the coordination and decommissioning/properly closing inactive water wells/open holes currently reside as following:

The first contract (the coordination contract) - Engineering Service.

The second contract (closure contract) – is currently being developed in accordance with new State contracting requirements.

PROGRAM ACTIVITIES

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

APPENDIX H - DRINKING WATER SYSTEMS EMERGENCY LOAN FUND PROGRAM

Section 41-3-16, Mississippi Code of 1972, as amended, created the Drinking Water Systems Emergency Loan Fund Program (DWSELF). This program provides loans to counties, municipalities, districts, or other (tax exempt) water organizations for emergency construction, repair, or replacement of drinking water facilities. This entirely state-funded loan program provides a ready funding source for such emergency projects without the federal crosscutter requirements required in the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, thereby saving valuable time and expense. The Board encourages eligible water organizations throughout the state to utilize this program whenever emergency drinking water projects are needed.

Allowable costs for the project may not be incurred prior to the budget period established in the loan agreement, which may not begin more than 30 days prior to receipt of the loan application.

Costs for the project will be paid on a reimbursement basis, based upon the actual allowable expenditures of the loan recipient.

APPENDIX I - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF crosscutter equivalency projects in accordance with the State Environmental Review Process (SERP).
The state certifies that prior to adding any new projects to the “FFY-2026 Priority List and After Planning List” for the purpose of funding such a project during FFY-2026 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.
THE STATE IS COMMITTED TO AND ENSURES THAT PROGRAM’S ACTIVITIES COMPLY WITH TITLE VI OF THE CIVIL RIGHTS ACT OF 1964

APPENDIX J – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2023 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

APPENDIX K - LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ANNUAL WORK PLAN Section 1452(g)(2) - Safe Drinking Water Act Amendments of 1996

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Local Assistance and Other State Programs Set-aside of the DWSRF in a Consolidation Regionalization assistance program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in consolidation or regionalization to create a more sustainable model that best serves the consumers of Mississippi’s drinking water.

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

Confirmation – Staff of the contractor will provide the BPWS Regional Engineers with drafts of the plans and specifications.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Local Assistance and Other Program activities under this work plan will be established by set contractual dates.

AGENCY RESPONSIBILITIES

The MSDH will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

Part 24 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

33 Miss. Admin. Code Pt. 24 Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS BOARD Title 33: Public Health - Local Governments & Rural Water Systems Improvements Board Part 24: Drinking Water Systems Improvements Revolving Loan Fund Program Regulations

STATE OF MISSISSIPPI DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM IIJA EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2025

Approved by the Board 5/29/2026

LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS

IMPROVEMENTS BOARD

P. O. BOX 1700 SUITE U-232

JACKSON, MISSISSIPPI 39215-1700

(Blank)

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND IIJA EMERGING CONTAMINANTS IN DRINKING WATER

INTENDED USE PLAN FOR FFY-2025

TABLE OF CONTENTS

INTRODUCTION .............................................................................................................................. 6
STATE OF MISSISSIPPI’S DRINKING WATER STATE REVOLVING LOAN FUND .......................... 6
PROGRAM OVERVIEW .................................................................................................................... 7
PUBLIC INPUT, REVIEW, AND COMMENT PROCEDURES .............................................................. 7

II. GOALS OF MISSISSIPPI’S DRINKING WATER SYSTEMS IMPROVEMENTS

REVOLVING LOAN FUND (DWSIRLF) PROGRAM – EC FUND ................................................... 8

A. OVERALL GOAL: ............................................................................................................................ 8

B. FIVE-YEAR GOALS ......................................................................................................................... 8

III. STRUCTURE OF THE MISSISSIPPI DWSIRLF ......................................................................... 8

A. DWSIRLF IIJA EC LOAN/OPERATIONS FUND ........................................................................... 9

Types of Eligible Projects: ........................................................................................................................... 9
Set-aside Accounts: ...................................................................................................................................... 9 IV. FINANCIAL STATUS OF THE DWSIRLF ................................................................................... 9
1. SOURCE AND USE OF FUNDS .......................................................................................................... 9
2. FINANCIAL PLANNING PROCESS.................................................................................................. 10
Application for the Full Amount of the IIJA EC Cap Grant ....................................................................... 10
Interest Rate Determination ....................................................................................................................... 10 C. FINANCIAL TERMS OF LOANS ...................................................................................................... 10
Funding Limit ............................................................................................................................................. 10
Interest Rate ............................................................................................................................................... 10
FFY-2025 IIJA EC Cap Grant Special Provisions ..................................................................................... 11
Other Related Issues .................................................................................................................................. 11
1. SET-ASIDE ACTIVITIES .............................................................................................................. 12
2. ADMINISTRATION ......................................................................................................................... 12
3. SMALL SYSTEM TECHNICAL ASSISTANCE .................................................................................. 12
4. STATE PROGRAM MANAGEMENT ................................................................................................ 13
5. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS ................................................................ 13
VI. PRIORITY SYSTEM ...................................................................................................................... 13 A. FUNDING AND RANKING RATIONALE .......................................................................................... 13
Funding Lists and Bypass Procedure ......................................................................................................... 14
Loan Decreases .......................................................................................................................................... 14
Subsidization from FFY-2025 EC Cap Grant ............................................................................................ 14
1. PRIORITY RANKING CRITERIA .................................................................................................... 16
2. PRIORITY SYSTEM DEADLINES .................................................................................................... 18

VII. FFY-2025 IIJA EC LISTS ........................................................................................................ 19 VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES ................ 21 APPENDICES 22 APPENDIX A – FUNDS REPORT ......................................................................................................... 23 APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR IIJA EC CAPITALIZATION GRANT SET-ASIDES .............................................................................................................................. 25 APPENDIX C - PROJECTED PAYMENT (FEDERAL LETTER OF CREDIT) SCHEDULE...... 26 APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE) ............................................................................................ 27 APPENDIX E – EMERGING CONTAMINANTS TESTING ............................................................. 28 APPENDIX F - CERTIFICATIONS ...................................................................................................... 30 APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT ......................................... 32

I. INTRODUCTION

A. State of Mississippi’s Drinking Water State Revolving Loan Fund

The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. The Infrastructure Investment and Jobs Act (IIJA) of 2021, (P.L. 117-8) additionally amended Section 1452 of the SDWA and appropriated funds for emerging contaminants in drinking water with a focus on perfluoroalkyl and polyfluoroalkyl substances (PFAS). This Intended Use Plan identifies the State of Mississippi’s proposed use of Federal Fiscal Year (FFY) 2025 DWSRF Emerging Contaminants allotment of $9,568,000.

That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state’s drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.

B. Program Overview

The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2021. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year. The IIJA EC IUP for FFY-2025 will accompany the Program’s application to EPA for the FFY-2025 EC Cap Grant.

The amount of the FFY-2025 Cap Grant from EPA for Mississippi for IIJA EC appropriation is $9,568,000 and national 22 & 23 reallotments of $2,000 and $59,000. The Program intends to apply for set-asides as described in Section V. These funds must be used in the period of July 2026 through June 2033. As a condition of the FFY-2025 Cap Grant the program agrees to comply with DWSRF regulations, the general grant regulations at 40 CFR part 200, and specific conditions of the capitalization grant and to enter data into SRF Data System no less than quarterly. The FFY-2025 IUP will show in detail the goals (overall and five-year), the structure, and the financial status of the Program; the role of the set-aside activities within the state; and most importantly, the distribution of funds towards public water system improvements projects and the criteria used to determine their ranking within the priority system. Those desiring to receive a copy of this document may contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518.

C. Public Input, Review, and Comment Procedures

Public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding will be held at 9:00 a.m. on May 28, 2026. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518. A copy of the “Mississippi Administrative Procedures Law” may be obtained from the Mississippi Secretary of State’s Office and can also be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

II. Goals of Mississippi’s Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program – EC Fund

The EC Fund was created by the IIJA to provide funding through the DWSIRLF Program for a five-year duration. The following are the Overall and Five-Year Goals for the EC Fund: A. Overall Goal:

B. Five-Year Goals

Identify issues with PFAS constituents in drinking water in water systems serving a population less than 3,300 through financial and technical support for water system sampling of the same.
Reduce the exposure of the public in Mississippi PFAS and other emerging contaminants in drinking water through providing technical and financial assistance to water systems.

III. Structure of the Mississippi DWSIRLF

A. DWSIRLF IIJA EC Loan/Operations Fund

Types of Eligible Projects:

Set-aside Accounts:

The set-aside accounts reside under the umbrella of the Fund and are distinctly designated by reporting categories. A listing of the set-asides taken by Mississippi includes the following as part of the FFY-2025 IUP: a. Administrative Set-aside: Provides financial support to administer the EC loan Program and other non-project-related activities. b. b. Local Assistance and Other State Programs: Provides funding for PFAS sampling of water systems with population less than 3,300. These water systems are not required to sample for UCMR-5 unregulated contaminants in 2025.

IV. Financial Status of the DWSIRLF

This section outlines all sources of funding available to the DWSIRLF EC Program and indicates intended uses. This section also describes the financial assistance terms available through the Program.

A. Source and Use of Funds

Using the FFY-2025 EPA IIJA EC Capitalization Grant allotment for Mississippi of $9,568,000 to provide for both loans and set-aside activities. The FY22 and FY23 reallotments will be used exclusively for loans.

The FFY-2025 “Set-aside” use for the IIJA EC Cap grant are outlined in Section V of this IUP. Necessary work plans showing utilization of these funds are found in the appendices of this IUP.

B. Financial Planning Process

In accordance with the Board's desire to maintain a financially sound DWSIRLF loan Fund in perpetuity, while at the same time meeting a substantial portion of the drinking water needs pertaining to projects that address emerging contaminants in drinking water in the state within a reasonable period of time, the following financial decisions were made regarding the Fund:

Application for the Full Amount of the IIJA EC Cap Grant

Interest Rate Determination

C. Financial Terms of Loans

The following terms will be used for the purpose of making loans to the public water systems within the State of Mississippi.

Funding Limit

Under state law, the Board has the discretion to set the maximum amount for DWSIRLF loans. For FFY-2025 IUP, the Board has set a maximum loan amount of $5,000,000 per borrower. The Board may allow (on a case-by-case basis if requested by the borrower and the need has been justified) the maximum loan limit to be exceeded by a vote of the Board. Furthermore, during FFY-2025, no more than one loan per borrower will be allowed. At the end of the fiscal year, if funds are available, systems previously receiving an award during FFY-2025 may obtain an additional award(s) or an increase to a previous FFY-2025 award, if no other eligible systems are evident.

Interest Rate

Interest will accrue based on the current loan agreement in conjunction with the DWSIRLF Regulations.

FFY-2025 IIJA EC Cap Grant Special Provisions

The FFY-2025 IIJA EC Cap Grant requires 100% subsidization of the IIJA EC Cap Grant amount available for projects. This subsidization is expected to be in the form of “principal forgiveness”, “negative interest rates”, or a combination of the two.

Other Related Issues

c. Loan Participation: DWSIRLF loan participation will be at 100% of eligible project costs, less any funding made available from other agencies for these same eligible project costs.

e. Priority List: The EC Priority List for the FFY-2025 IUP expires on January 2, 2027. Projects listed in the FFY-2025 EC Priority List that do not receive funding by this date will not be funded under the FFY-2025 EC IUP and will

be subject to the requirements of subsequent IUPs and Priority Lists. Detailed information for the FFY-2025 EC projects is shown in Section VIII of this IUP. To facilitate the use of federally appropriated funds from the FFY-2025 IIJA EC Cap Grant, the priority list may be adjusted to allow funds to be disbursed according to the federal requirements.

V. Set-Aside Activities

The SDWA allows each state to set-aside up to 31 percent of its federal Cap grant to support non-project-related drinking water programs which includes administration of the loan program, technical assistance to public water systems, state program management, and other special activities. The FFY-2025 EC Capitalization Grant amount of $9,568,000, the state plans to use $1,860,466 of the FFY-2025 EC Capitalization grant to support set-aside activities, further defined in the following Sections A and B. These non-project-related programs will be operated by MSDH within the agency itself or through contracts with other agencies or organizations. Contracts between the MSDH and other agencies or organizations will be approved by the Board. Work plans showing how the set-asides funds will be expended are included as appendices within this EC IUP; additionally, progress reports will be included in the Annual Report. The state has elected not to take set-asides for Small Systems Technical Assistance and State Program Management from the FFY- 2025 EC Cap Grant but reserves the right to make revisions to utilize additional funds from this set-aside.

A. Administration

The SDWA-DWSRF amendments in the 2017 Water Infrastructure Improvements for the Nation Act (Pub. L. 114-332) (2017 WIIN Act – EPA memorandum dated June 6, 2017) states that the Administrative Set-Asides that can be taken the greatest of: $400,000, 1/5 percent of the current valuation of the fund, or an amount equal to 4 percent of all grant awards to the fund for the fiscal year. The EPA Combined SRF IIJA Implementation Memo dated March 8, 2022, states that set-asides for the EC Cap Grant are consistent with the DWSRF regulations. The State plans to use the maximum allowable (4%) for "Administrative" purposes from the FFY-2025 EC Cap Grant.

B. Small System Technical Assistance

C. State Program Management

The state does not intend to use this set-aside from the FFY-2025 EC Cap grant, as authorized by Section 1452(g) (2) of the Safe Drinking Water Act of 1996 for State Program Management related to LCRR and LSLR. The program reserves the right to these funds in amended or future application to be used for Public Water System Supervision (PWSS) activities conducted under Section 1443(a) of the Act.

D. Local Assistance and Other State Programs

The state intends to use the first 10% of the 15% set-aside amount which is allowed from the FFY-2025 IIJA EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 1,000 but greater than 300 that are not currently required to sample for UCMR-5.

The state intends to use the remaining 5% of the 15% set-aside amount which is allowed from the FFY-2025 EC Cap grant to provide funding for sampling for PFAS for water systems with population less than 3,300 and greater than or equal to 1,000 that are not currently required to sample for UCMR-5.

VI. Priority System

The SDWA provides the state with the flexibility to determine how to best utilize the EC Cap grant. To meet the goals of public water systems in the State of Mississippi and this FFY-2025 EC IUP, those projects which meet the following will be given priority:

Are DWSIRLF-eligible and address the most serious risk to human health related to identifying and addressing emerging contaminants in drinking water, with a focus on PFAS.
Assist systems most in need, on a per household basis.
Prioritize addressing PFAS in drinking water over other eligible emerging contaminants.

A. Funding and Ranking Rationale

Funding Lists and Bypass Procedure

Should any projects on the FFY-2025 EC Priority List (which are above the funding line) fail to comply with the deadlines in Section D, the project shall be bypassed, and the funds reserved for said project will be released. Released funds will first be made available to listed projects, to ensure that all projects above the funding line meeting priority system deadlines are funded. Any remaining funds will be made available to the highest-ranking project(s) shown below the funding line that is ready for loan award at the time funds become available. If no projects above the funding line are ready for loan award at the time funds become available, projects shown below the funding line will be funded on a first-come, first-served basis as they become ready for loan award and until the released funds are awarded. This same process will continue as each deadline passes and released funds become available. 2. Loan Decreases

Any funds recovered from loan decreases during the year will be used:

a) first to fund bid overruns, if funds from the loan increase reserve are not sufficient to cover the bid overruns; b) then to ensure that all projects above the funding line meeting the priority system deadlines are funded (for at least the amount shown on the priority list); and c) then to fund other loans and/or increases on a first-come, first-served basis.

Any funds not obligated for these purposes may be made available for new loan awards ready to proceed on a first-come, first-served basis.

Subsidization from FFY-2025 EC Cap Grant

The FFY-2025 IIJA EC Cap Grant mandates 100% of the projects part of the Grant be provided as subsidization to loan recipients. Based on the Grant of $9,568,000 and set-aside amount of $1,859,966, a minimum of $7,708,034 in subsidization is required. Furthermore, the FY22 and FY23 reallotments will provide an additional $61,000 for subsidization. The DWSIRLF’s subsidization will be in the form of

“Principal Forgiveness” (PF) to individual public water supply loan recipients, and which received reimbursements with Federal EC Cap Grant funds during the lifetime of the project, from loan initiation through loan closeout. If the amount of PF which a project is eligible exceeds the amount of Federal EC Cap grant funds which it received, the amount of PF extended will be limited to the amount of Federal Cap grant funds used for reimbursement.

Subsidization may be used over a two-year period. Subsidization remaining from a previous year may be awarded to loans which are eligible for PF over a two-year period. Subsidization for FFY-2025 EC Priority List projects may be awarded to projects eligible for PF in FFY-2026 and FFY-2027.

Disadvantaged Community Program

a. DWSRF EC Capitalization Grant Funds

For this funding, the following Principal Forgiveness (PF) methodology will be used to meet the requirements of the IIJA of 2021 (P.L. 117-8) for providing subsidy to water systems for addressing emerging contaminants in drinking water. 100% principal forgiveness will be available for the project portion of the FFY-2025 EC Cap Grant to loan recipients. The FFY-2025 EC federal appropriation for the Program is $9,568,000. The project portion of the FFY- 2025 EC Cap Grant is $7,708,034. The principal forgiveness (100%) available to eligible borrowers is $7,708,034.

All IIJA EC projects will receive 100% Principal Forgiveness.

PF will be extended to projects until all mandated subsidy funds are obligated. The amount of PF given will be assigned at loan award.

In the event that a LR declines their loan that includes PF, the released PF may be reallocated to other projects for the present fiscal year.

In all cases, the amount of PF which is awarded to a project may not exceed the amount of Federal Cap grant funds which the project was reimbursed during the construction of the project.

B. Priority System Categories

DWSRF EC Priority System

1542(a) (2) of SDWA]. As stated previously, the order of Categories I - XIII is intended to give highest priority to those projects that address the most serious risks to human health and that address emerging contaminants in drinking water. Projects will be ranked as described in Section C.

C. Priority Ranking Criteria

The criteria for ranking projects within each category is intended to give priority to projects that: (1) benefit the most people per dollar expended; (2) assist systems most in need on a per household affordability basis as required by the SDWA; (3) encourage participation in short-term and long-term technical assistance programs; and (4) encourage certifying and providing support for a system’s Asset Management Plan. These considerations are addressed by the Priority Ranking Criteria in the following manner:

Benefit/Cost Benefit/Cost points assigned to each project will be determined using the following formula:

Benefit/Cost Points = Number of benefiting connections Total eligible cost of improvements (in $1.0 millions)

Affordability Factor An affordability factor will be assigned to each project to reflect the relative needs of applicants on a per household basis. The Benefit/Cost points calculated in Section C.1. will be adjusted using the affordability factor in the following formula:

Adjusted Benefit/Cost Points = (Affordability Factor) x (Benefit/Cost Points)

Participation in Short-Term & Long-Term Assistance Programs The MSDH, with the Board’s approval, has contracted with Mississippi State University Extension Service to provide both short-term and long-term assistance to designated water systems in the state based on their scores on the latest Capacity Assessment Form (CAF). This assistance is provided at no cost to the water systems.

Participation by the water systems in these assistance programs is voluntary; however, any water system that has participated in either of these assistance programs within the past two years will be eligible to receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points. Water systems that have implemented all the recommendations made by Mississippi State University Extension Service will receive additional priority points equal to 5% of their Adjusted Benefit/Cost Points for a total of 10%. Documentation of participation in either of these assistance programs and implementation of the recommendations made by Mississippi State University Extension Service must be included in the facilities plan before additional priority points will be granted.

Assistance Points = ** x (Adjusted Benefit/Cost Points)

** 5% if the water system participates in the assistance, or 10% if the water system participates in the assistance and implements all recommendations

Asset Management Plan

Asset Management Plan = 0.10 x (Adjusted Benefit/Cost Points)

Ranking Within Each Category Within each category, projects will be ranked in order based on the total points assigned the project using the following formula:

Total Priority Points = Adjusted Benefit/Cost Points + Affordability Points + Assistance Program Points + Asset Management Plan Points

D. Priority System Deadlines

By January 1, 2026, a complete DWSIRLF facilities plan, prepared in accordance with the DWSIRLF loan program regulations, must be submitted to MSDH. A complete DWSIRLF facilities plan includes: all Intergovernmental Review (IGR) agency comments; proof of publication of advertisement for public hearing; a transcript of the public hearing comments; copies of any comments received from the public; and a summary of how each comment was addressed. The loan applicant should provide a copy of the facilities plan to USDA - Rural Utilities Service (RUS); if the loan applicant has an existing debt with RUS, their approval to incur the additional debt must be obtained and provided as part of the plan.

By May 1, 2026, a completed DWSIRLF loan application and all associated documents as described in the DWSIRLF regulations must be submitted to the Department. Prior to preparing these documents, the potential applicant and/or its registered engineer must request and receive a DWSIRLF application and guidance. It is recommended that they request a pre-application conference with DWSIRLF staff as early in the application process as practical. This deadline also applies to all projects competing for released funds during FFY-2025 and to be able to qualify for the Previous Year Certified Projects Category in the FFY-2025 IUP.
By August 1, 2026, all approvable documents and responses to comments necessary for loan award must be submitted to the Department for its review and approval.

VII. FFY-2025 IIJA EC LISTS Mississippi Drinking Water Systems Improvements Revolving Loan Fund Program Priority & Planning Lists – IIJA Emerging Contaminants

Project Project Description Zip Priority Service Area Loan Amount Statewide Code Points Population Request Cum. $ Category XIII: Other

Corinth, City of Treatment Plant Modifications for PFA/PFOs 38834 1558 14998 $4,507,000 $4,507,000 Booneville Water Dept. Manganese Treatment 38829 991 10972 $3,961,674 $8,468,674 Alcorn W/A #1-Indian Springs Manganese and Iron Removal in Water System 38834 687 2470 $4,786,320 $13,254,994 Mooreville Richmond Water Association Phase II EC Treatment/ Distribution I 38857 515 10788 $6,350,000 $19,604,994 Farmington Water Association Removal Manganese 38834 442 6000 $5,654,800 $25,259,794 City Point Water Association Phase II Removal of Iron and Manganese 38862 141 2455 $5,000,000 $30,259,794 Poplar Springs Water District Removal of Manganese and Iron 39114 88 1188 $4,534,031 $34,793,825

PLANNING LIST

Project Project Description Zip Priority Service Area Loan Amount Statewide Code Points Population Request Cum. $ Category XIII: Other

Town of Marietta Manganese Treatment 38856 76 774 $4,917,092 $4,917,092

With the 2025 allotment, the program now manages $30,043,379 (2022–2025) for EC projects, with $10M already obligated to Phase I of City Point and Mooreville Richmond. These projects are no longer included in the list above. All projects listed above continue to make progress in their program submittals.

VIII. EXPECTED PUBLIC HEALTH OUTCOMES & PERFORMANCE MEASURES

The objective of this program is to disperse all available loan and grant funds in a timely manner to achieve the public health protection benefits resulting from the projects identified in the FFY-2025 EC IUP, and to ensure compliance with loan agreements, as required by state and federal laws and regulations.

By implementing the FFY-2025 EC IUP and funding projects shown on the FFY-2025 EC Priority List (Section VII), the Board will have the means to plan for and fund projects that will address the most serious public health risks facing the public water supply systems in the state. Funding of the system projects will be determined by the amount of funding to be received for FFY-2025 IIJA EC Cap Grant.

The success of the DWSIRLF Program will be defined by the ability of the MSDH to successfully meet commitments in the FFY-2025 EC IUP and Set-Aside Work Plan.

APPENDICES

APPENDIX A – FUNDS REPORT

DRINKING WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND PROGRAM - EMERGING CONTAMINANTS FUNDS REPORT - MAY 2026 FFY-2025 Funding (Federal and State) National Title I DWSRF Appropriation - Mississippi's Allotment + $9,568,000 National Title I DWSRF Appropriation - Mississippi's 22 Reallotment + $2,000 National Title I DWSRF Appropriation - Mississippi's 23 Reallotment + $59,000 State Match Required (0% of Mississippi's Allotment) + $0 Capitalization Grant for DWSRF w BIL Supplemental = $9,629,000 Cap Grant Set-Asides DWSRF Administration [SDWA Sec. 1452(g)(2) - the greater of: $400,000, 1/5 % of the fund's current valuation, or up to 4% of the award]

$233,406 Small Systems Technical Assistance [SDWA Sec. 1452(g)(2) - 2%] + $191,360 Local Assistance and Other State Program [SDWA Sec. 1452(k)(2) - 15%] + $1,435,200 State Program Management [SDWA Sec. 1452(g)(2) -10%] + $0 Total Cap Grant Set-Asides = $1,859,966 Cap Grant Funds Available for Loan Obligation DWSRF Capitalization & BIL Supplemental Grants + $9,629,000 Cap Grant Set-asides - ($1,859,966) Total Cap Grant Funds Available for Loan Obligation = $7,769,034 Funds Anticipated to be Available for Loan Awards Cap Grant Federal and State Funds Anticipated to be Available for Loan Obligation
$7,769,034 Unobligated Funds Carried Over (22-24 Project Awards) + $12,274,345 Loan Increase Reserve - $0.00 Total Funds Anticipated to be Available for Loan Awards = $20,043,379 Funds Needed for Projects on the FFY-2025 Priority & Planning Lists Funds Needed for Projects on the Priority & Planning Lists + $39,710,917 Funds Anticipated to be Available for Loan Awards - $20,043,379 Total Fund Need Remaining for Projects on the Lists = ($19,667,538)

APPENDIX B - PROJECTED SCHEDULE OF OUTLAYS FOR IIJA EC CAPITALIZATION GRANT SET-ASIDES

FFY 2025 IIJA EC Cap Grant Federal Set-Asides FFY 2027 Q1 FFY 2027 Q2 FFY 2027 Q3 FFY 2027 Q4 Totals Administration $58,351.50 $58,351.50 $58,351.50 $58,351.50 $233,406 Small System Tech Assist $47,840 $47,840 $47,840 $47,840 $191,360 Local Asst. & Other St. Programs $358,800 $358,800 $358,800 $358,800 $1,435,200 Total: $464,991.50

$464,991.50

$1,859,966

Appendix C - Projected Payment (Federal Letter of Credit) Schedule (Schedule of Increases to ACH Ceiling)

FFY-2025 1 st Quarter $2,392,000

Cap Grant FFY-2027

FFY-2022

Reallotment

$2,000

FFY-2023

Reallotment

$59,000

No. 1 of 4

$2,453,000 FFY-2025 2nd Quarter $2,392,000 Cap Grant FFY-2027 No. 2 of 4 $4,845,000 FFY-2025 3rd Quarter $2,392,000

Cap Grant FFY-2027

No. 3 of 4

$7,237,000 FFY-2025 4th Quarter $2,392,000 Cap Grant FFY-2027 No. 4 of 4 $9,629,000

APPENDIX D - PROJECTED SCHEDULE OF DRAWDOWNS AGAINST FEDERAL LETTER OF CREDIT (ACH DRAW SCHEDULE)

FFY-2025 1 st Quarter $2,392,000

Cap Grant FFY-2027

FFY-2022

Reallotment

$2,000

FFY-2023

Reallotment

$59,000

No. 1 of 4

$2,453,000 FFY-2025 2nd Quarter $2,392,000 Cap Grant FFY-2027 No. 2 of 4 $4,845,000 FFY-2025 3rd Quarter $2,392,000

Cap Grant FFY-2027

No. 3 of 4

$7,237,000 FFY-2025 4th Quarter $2,392,000 Cap Grant FFY-2027 No. 4 of 4 $9,629,000

APPENDIX E – EMERGING CONTAMINANTS TESTING

INTRODUCTION

The Mississippi State Department of Health (MSDH), Bureau of Public Water Supply (Department), will use the Small System Technical Assistance Set-Aside & Local Assistance and Other State Programs Set-aside of the DWSRF EC in an Emerging Contaminants Testing Program. The program will be surveying the State’s drinking water system to identify, plan, and assist water systems in testing their system to identify emerging contaminants for treatment projects. Emerging contaminants are defined as those listed on EPA’s Contaminant Candidate Lists (CCL1- CCL5).

SELECTION PROCESS

The contract for coordination of the program will run on a State Fiscal Year Basis. A contract is currently being developed in accordance with State contracting requirements.

PROGRAM ACTIVITIES

The state will use the Small Systems Technical Assistance (up to 2%) set-aside from the IIJA EC FFY-2025 Cap Grant to provide funding for EC Test to ultra small systems serving a population of 300 or less. With approval by the Board, the state intends to use this set-aside to fund a contract for providing professional services to water systems with a population of less than 300. This assistance with will be available on a first-come, first-serve basis to water systems serving a population of 300 or less.

Mobilization – Once the communication phase has been completed and the system request to move forward, staff of the contractor will mobilize to the selected site and commence with the plan and testing of the System’s drinking water. Acceptable methods of testing will be determined and outlined by the Department then communicated to the contractor.

Confirmation – Staff of the contractor will provide the Program’s Project Management staff with results and recommendations for an Emerging Contaminants Treatment Project.

SCHEDULE FOR COMPLETING ACTIVITIES

The schedule for completing Emerging Contaminants Testing Program activities under this work plan will be the schedule established by set contractual dates.

AGENCY RESPONSIBILITIES

The Program will be monitoring contractors throughout the process to ensure effective completion of contractual assignments.

EVALUATION PROCESS TO ASSESS THE SUCCESS OF SET-ASIDE ACTIVITIES

APPENDIX F - CERTIFICATIONS

The state certifies that all drinking water facility projects in this IUP identified in Section VII as being subject to the federal cross-cutting requirements are or will be in compliance with all such requirements prior to the state entering into an assistance agreement with the recipient.
The state certifies that it will make an annual report to the Regional Administrator on the actual uses of the funds and how the state has met the goals and objectives for the previous two fiscal years as identified in the IUPs; and to annually have conducted an independent audit of the funds to be conducted in accordance with generally accepted government accounting standards.
The state certifies that this IUP will be subjected to public review and comment prior to final submission to EPA. The state certifies that it will follow the “Mississippi Administrative Procedures Law” in seeking public review and comments on this IUP. A copy of the “Mississippi Administrative Procedures Law” can be obtained from the Mississippi Secretary of State’s Office and can be found on the Mississippi State Department of Health’s website at www.healthyms.com/dwsrf.

An oral proceeding will be held to receive written and oral comments on this IUP. A transcript of the public hearing recording the comments and recommended solutions will be submitted to EPA along with the Final IUP. Anyone desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518 to request copies.

The state certifies that all drinking water facility projects in this IUP are on the project Priority List developed pursuant to the requirements of Section 1452(b)(3)(B), SDWA.
The state certifies that it will enter into binding commitments for 120% of the amount of each payment (LOC) under the capitalization grant within one year after receipt of each payment (LOC).
The state certifies that it will commit and expend all Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program monies as efficiently as possible, and to disburse the funds in a timely and expeditious manner.
The state certifies that it will conduct environmental reviews on all DWSIRLF cross- cutter equivalency projects in accordance with the State Environmental Review Process (SERP).

The state certifies that prior to adding any new projects to the “FFY-2025 and After Planning List” for the purpose of funding such a project during FFY-2025 that the state will follow the “Mississippi Administrative Procedures Law” in amending this IUP to allow for public review and comments.
The state certifies that it has developed and implemented a Capacity Development (CD) strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity as required in Section 1420(c) of the 1996 Amendments to the SDWA. This CD program is currently approved by EPA.
The state certifies the State’s Operator Certification Program is currently approved by EPA.

APPENDIX G – INFRASTRUCTURE INVESTMENT AND JOBS ACT

Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:

I. Funding

• Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.

Total $30,713,000,000

II. Reauthorization & Policy

Funding • Reauthorizes Drinking Water SRFs at the same levels for the next five years: o 2022: $2.4 billion o 2023: $2.75 billion

o 2024: $3 billion o 2025 and 2026: $3.25 billion • Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.

III. Buy America / Buy American

The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.

PEARL RIVER VALLEY WATER SUPPLY DISTRICT PEARL RIVER VALLEY WATER SUPPLY DISTRICT

Part 201 Authority and Procedures

33 Miss. Admin. Code Pt. 201, R. 1.2 Methods of Operations

All policy and rulemaking authority is vested in the Board of Directors. The Board delegates the routine operations and personnel supervision to the General Manager. The General Manager operates within the following operating divisions: (a) Agency Head.

3986718.1/00520.00006 (b) Engineering. (c) Construction & Maintenance. (d) Water & Sewer Operations. (e) Finance & Personnel. (f) Parks & Recreation. (g) Parks & Public Facilities Maintenance. (h) Campgrounds & Recreational Facilities. (i) Reservoir Patrol.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 1.3 Responsibilities

The District was established for the accomplishment of the following general purposes as stated in the following Legislative determination and declaration of policy: "It is hereby declared, as a matter of legislative determination, that the waterways and surface waters of the state are among its basic resources, that the overflow and surface waters of the state have not heretofore been conserved to realize their full beneficial use, that the preservation, conservation, storage, and control of such waters are necessary to insure an adequate, sanitary water supply at all times, to promote the balanced economic development of the state, and to aid in flood control, conservation and development of state forests, irrigation of lands needing irrigation, and pollution abatement. It is further determined and declared that the preservation, conservation, storage, and control of the waters of the Pearl River and its tributaries and its overflow waters for domestic, municipal, commercial, industrial, agricultural, and manufacturing purposes, for recreational uses, for flood control, timber development, irrigation, and pollution abatement are, as a matter of public policy, for the general welfare of the entire people of the state. The creation of the Pearl River Valley Water Supply District is determined to be necessary and essential to the accomplishment of the aforesaid purposes."

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 2 Public Information and Requests. Rule 2.1 Contacting the Pearl River Valley Water Supply District's Office. The Pearl River Valley Water Supply District's Office may be contacted in person, by U.S. Mail, Courier mail, e- mail, telephone, facsimile and e-mail. The Pearl River Valley Water Supply District also maintains and provides a Website on the Internet at www.therez.ms. (a) Location of the Pearl River Valley Water Supply District's Office. The Pearl River Valley Water Supply District maintains its office at 115 Madison Landing Circle, Ridgeland, Mississippi 39157.

33 Miss. Admin. Code Pt. 201, R. 2.2 Requesting Information

(a) The District strives to serve the public by making information regarding recreational, hunting, fishing and camping opportunities readily available. Printed information may be obtained from the District's office. There may be a charge, depending on the nature of the information. The public is also encouraged to visit the District's Website. (b) With regard to public records, it is the policy of the District to provide for inspection and copying of its identifiable public records by all people of the State of Mississippi who request such inspection or copying, consistent with the provisions of the Mississippi Public Records Act, § 25-61-1 through § 25-61-17, Mississippi Code of 1972, as amended ("Public Records Act"), and other applicable laws and judicial decisions. The procedure for a public records request is set forth in Part 210 of these Regulations.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 3 Rulemaking Oral Proceedings. Introduction. This rule applies to all oral proceedings held for the purpose of providing the public with an opportunity to make oral presentations on proposed new rules and regulations and amendments to rules and regulations before the District pursuant to the Administrative Procedures Law. This rule does not apply to actions not subject to the Administrative Procedures Law. Rule 3.1 Procedures For Requesting an Oral Proceeding. Where an oral proceeding has not previously been held or scheduled, the District will conduct an oral proceeding on a proposed rule or amendment if requested by a political subdivision, an agency or ten (10) persons in writing within twenty (20) days after the filing of the notice of the proposed rule. (a) Each request must be printed or typewritten, or must be in legible handwriting. Each request must be submitted on standard business letter size paper (8- 112 inches by 11 inches).

33 Miss. Admin. Code Pt. 201, R. 3.2 Scheduling an Oral Proceeding

The date, time and place of all oral proceedings shall be filed with the Secretary of State's office and mailed to each requestor. The oral proceedings will be scheduled no earlier than twenty (20) days from the filing of this information with the Secretary of State.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 3.3 Presiding at Oral Proceeding

The General Manager or designee, who is familiar with the substance of the proposed rule, shall preside at the oral proceeding on a proposed rule.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 3.4 Participation at Oral Proceeding

Public participation shall be permitted at oral proceedings in accordance with the following sections. (a) At an oral proceeding on a proposed rule, persons may make oral statements and make documentary and physical submissions, which may include data, views, comments or arguments concerning the proposed rule. (b) Persons wishing to make oral presentations at such a proceeding shall notify the District at least ten (10) business days prior to the proceeding and indicate the general subject of their presentations. The presiding officer in his or her discretion may allow individuals to participate who have not previously contacted the District. (c) At the proceeding, those who participate shall indicate their names and addresses, identify any persons or organizations they may represent, and provide any other information relating to their participation deemed appropriate by the presiding officer. Each group or organization should nominate only one person to make the presentation unless the presiding officer determines that the group or organization cannot reasonably be represented by a single spokesperson. (d) The presiding officer shall place time limitations on individual oral presentations to assure the orderly and expeditious conduct of the oral proceeding. To encourage joint oral presentations and to avoid repetition, additional time may be provided for persons whose presentations represent the views of other individuals as well as their own views.

3986718.1/00520.00006 (e) Persons making oral presentations are encouraged to avoid restating matters that have already been submitted in writing. Written materials may, however, may be submitted at the oral proceeding. (f) There shall be no interruption of a participant who has been given the floor by the presiding officer, except that the presiding officer may in his or her discretion interrupt or end the partisan's time where the orderly conduct of the proceeding so requires or when the allotted time has expired.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 3.5 Conducting Oral Proceeding

The presiding officer shall have authority to conduct the proceeding in his or her discretion for the orderly conduct of the proceeding. The presiding officer shall (i) call proceeding to order; (ii) give a brief synopsis of the proposed rule, a statement of the statutory authority for the proposed rule, and the reasons provided by the District for the proposed rule; (ii) call on those individuals who have contacted the District about speaking on or against the proposed rule; (iii) allow for rebuttal statements following all participant's comments; (iv) adjourn the proceeding.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 3.6 General Discussion

The presiding officer where time permits and to facilitate the exchange of information, may open the floor to questions or general discussion. The presiding officer may question participants and permit the questioning of participants by other participants about any matter relating to that rulemaking proceeding, including any prior written submissions made by those participants in that proceeding; but no participant shall be required to answer any question.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 3.7 Record of Submissions

Submissions presented by participants in an oral proceeding shall be submitted to the presiding officer. Such submissions become the property of the District, become part of the rulemaking record, and are subject to the District's public records request procedure.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 3.8 Recording of Oral Proceeding

The District may record oral proceedings by stenographic or electronic means.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 4 Requests for Declaratory Opinions. Introduction. These sections set forth the District's rules governing the form and content of requests for declaratory opinions, and the District's procedures regarding the requests, as required by Mississippi Code § 25-43-2.103. These sections do not apply to actions of the District not subject to the Administrative Procedures Act.

33 Miss. Admin. Code Pt. 201, R. 4.2 Issuance of a Declaratory Opinion

The District will issue declaratory opinions regarding the applicability to specified facts of: (a) a statute administered or enforceable by the District, (b) a rule promulgated by the District, or (c) an order issued by the District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 4.3 Reasons For Refusal of Declaratory Opinion Request

The District may, for good cause, refuse to issue a declaratory opinion. Without limiting the generality of the foregoing, the circumstances in which declaratory opinions will not be issued include, but are not necessarily limited to: (a) the matter is outside the primary jurisdiction of the District; (b) lack of clarity concerning the question presented; (c) there is pending or anticipated litigation, administrative action, or other adjudication which may either answer the question presented by the request or otherwise make an answer unnecessary; (d) the statute, rule, or order on which a declaratory opinion is sought is clear and not in need of interpretation to answer the question presented by the request; (e) the facts presented in the request are not sufficient to answer the question presented; (f) the request fails to contain information required by these rules or the requestor failed to follow the procedure set forth in these rules; (g) the request seeks to resolve issues which have become moot, or are abstract or hypothetical such that the requestor is not substantially affected by the rule statue or order on which a declaratory opinion is sought;

3986718.1/00520.00006 (h) no controversy exists concerning the issue as the requestor is not faced with existing facts or those certain to arise which raise a question concerning the application of the statute, rule, or order; (i) the question presented by the request concerns the legal validity of a statute, rule or order; (j) the request is not based upon facts calculated to aid in the planning of future conduct, but is, instead, based on past conduct in an effort to establish the effect of that conduct; (k) no clear answer is determinable; (l) the question presented by the request involves the application of a criminal statute or sets for facts which may constitute a crime; (m) the answer to the question presented would require the disclosure of information which is privileged or otherwise protected by law from disclosure; (n) the question is currently the subject of an Attorney General's opinion request; or, (o) the question has been answered by an Attorney General's opinion.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 4.4 Similar Pending Request

A declaratory opinion will not be issued where a similar request is pending before this agency, or any other agency or a proceeding is pending on the same subject matter before any agency, administrative or judicial tribunal, or where such an opinion would constitute the unauthorized practice of law.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 4.5 Litigation

A declaratory opinion will not be issued if it may adversely affect the interests of the State, the District, or any of their officers or employees in any litigation which is pending or may reasonably be expected to arise.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 4.6 Question of Law

Where a request for a declaratory opinion involves a question of law, the District may refer the matter to the State Attorney General.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 4.7 Preemptive Determination

A declaratory opinion will not be issued where the question involves eligibility for a license, permit, certificate or other approval by the District or some other agency, and there is a statutory or regulatory application process by which eligibility for said license, permit, or certificate or other approval may be determined.

3986718.1/00520.00006

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 5 Written Requests Required. Rule 5.1 Written Request. Each request must be printed, typewritten or in legible handwriting. Each request must be submitted on standard business letter size paper (8 1/2" by 11"). Requests may be in the form of a letter addressed to the District or in the form of a pleading as might be addressed to a court. Information should be sent to the attention of the General Manager.

33 Miss. Admin. Code Pt. 201, R. 5.2 Mailing of Request

All requests must be mailed or delivered to the District. The request and its envelope shall clearly state that it is a request for a declaratory opinion. Oral and telephone requests are unacceptable.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.3 Certification of Request

Each request must include the full name, telephone number, and mailing address of the requestor. All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request. The signing party shall attest that the request complies with the requirements set forth in these rules, including but not limited to a full, complete, and accurate statement of relevant facts and that there are no related proceedings pending before any agency, administrative or judicial tribunal.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.4 Limit of Request

A request must be limited to a single transaction or occurrence.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.5 Requirements of Request

Each request must contain the following: (a) a clear identification of the statute or rule at issue; (b) the question for the declaratory opinion; (c) a clear and concise statement of all facts relevant to the question presented; (d) the identify of all other known persons involved in or impacted by the factual situation causing the request including their relationship to the facts, name, mailing address and telephone number; and, (e) a statement sufficient to show that the person seeking relief has a substantial interest in the subject matter.

3986718.1/00520.00006 Rule 5.6 Form and Content of Opinion. The terms of the proposed opinion suggested by the requestor may be submitted with the request but the form and content of the opinion remains within the discretion of the District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.7 Argument

A request may contain an argument by the requestor in support of the terms of the proposed opinion suggested by the requestor. The argument may be submitted in the form of a memorandum of authorities, containing a full discussion of the reasons and any legal authorities, in support of such position of the requestor. The District may request that the argument and memorandum of authorities be submitted by any interested party.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.8 District's Actions

Within forty-five (45) days after the receipt of a complete request for a declaratory opinion which complies with the requirements of these rules, the District shall, in writing: (a) issue an opinion declaring the applicability of the specified statute, rule, or order to the specified circumstances; (b) agree to issue a declaratory opinion or a written statement by a specified time but no later than ninety (90) days after receipt of the written request; or, (c) decline to issue a declaratory opinion, stating the reasons for its action.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.9 45-Day Period

The forty-five (45) day period shall begin on the first State of Mississippi business day that the request is received by the District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.10 60-Day Holding Period

A declaratory opinion shall not become final until the expiration of sixty (60) days after the issuance of the opinion. Prior to the expiration of sixty (60) days, the District may, in its discretion, withdraw or amend the declaratory opinion for any reason which is not arbitrary or capricious. Reasons for withdrawing or amending an opinion include, but are not limited to, a determination that the request failed to meet the requirements of these rules or that the opinion issued contains or was based on a legal or factual error.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 5.11 Notice to Third Parties

The District may give notice to any person that a declaratory opinion has been requested and may receive and consider data, facts, arguments and opinions from persons other than the requestor.

3986718.1/00520.00006 Rule 5.12 Schedule of Interested Persons. The requestor, or his attorney, shall append to the request for a declaratory opinion a listing of all persons, with addresses, known to the requestor who may have an interest in the declaratory opinion sought to be issued, and shall mail a copy of the request to all such persons. The requestor or his attorney shall certify that a copy of the request was mailed to all such persons together with this statement: "Should you wish to participate in the proceedings of this request, or receive notice of such proceedings or the declaratory opinion issued as a result of this request, you should contact the District within twenty days of the date of this request."

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 6 Hearings Optional. Rule 6.1 Scheduling a Hearing. If the District in its sole discretion deems a hearing necessary or helpful in determining any issue concerning a request for a declaratory opinion, the District may schedule such a hearing. Notice of the hearing shall be given to all interested parties unless waived. Notice mailed by first class mail 7 calendar days prior to the hearing shall be deemed appropriate.

33 Miss. Admin. Code Pt. 201, R. 6.2 Procedure for Conducting a Hearing

Procedure for conducting a hearing, including but not limited to the manner of presentation, the time for presentation, and whether and how evidence may be taken, shall be within the discretion of the District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 6.3 Participation in a Hearing

The District shall allow the requestor to participate in any hearing. The District may allow any other persons or entities to participate in the hearing in its discretion. Submission of a request for a declaratory opinion or for a hearing does not automatically entitle the requestor to a hearing.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 201, R. 6.4 Inspection

Declaratory opinions and requests for declaratory opinions shall be available for public inspection and copying in accordance with Part 210 of these Regulations. All declaratory opinions and requests shall be indexed by name and subject. Declaratory opinions and requests which contain information which is confidential or exempt from disclosure under the Mississippi Public Records Act or other laws shall be exempt from this requirement and shall remain confidential.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 202 Definitions

33 Miss. Admin. Code Pt. 202 Definitions

1 3986747.1/00520.00006 Title 33: River and Waters

Part 202: Definitions Part 202 Chapter 1: Board. Rule 1.1 Board means the Board of Directors of the District. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 202 Chapter 2: District. Rule 2.1 District means the Pearl River Valley Water Supply District. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 202 Chapter 3: District Building Inspector. Rule 3.1 District Building Inspector means the employee designated as such by the General Manager. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 202 Chapter 4: General Manager. Rule 4.1 General Manager means the person employed by the Board from time to time as the General Manager. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 202 Chapter 5: Reservoir. Rule 5.1 Reservoir means the waters of the Ross Barnett Reservoir. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 202 Chapter 6: Reservoir Project Area. Rule 6.1 Reservoir Project Area means the Ross Barnett Reservoir and any body of land or easement owned by the District. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 203 Regulations Pertaining to Use of Reservoir Project Area by General Public

Chapter 1 Regulations Pertaining to Use of Reservoir Project Area by General Public

33 Miss. Admin. Code Pt. 203, R. 1.1 Speed Limits

(a) It shall be unlawful for any Person to operate a motor vehicle within the Reservoir Project Area at speeds greater than the following: (i) On the roadway across the reservoir dam or on the causeway across Pelahatchie Bay in Rankin County, 55 miles per hour, except as provided in Part 203 Rule 1.1 (a) (ii). (ii) On any roadway over any dike, levy, groin, jetty or mole appurtenant to the reservoir main dam, a maximum of twenty-five (25) miles per hour. (iii) On all streets, drives or roadways in any platted subdivision within the Reservoir Project Area, 30 miles per hour. (iv) On all other roads, roadways, streets and drives within the Reservoir Project Area, 45 miles per hour. (b) Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 1.2 Parking

(a) It shall be unlawful for any Person to park an automobile or other vehicle on any part of the reservoir main dam or any dike, levy, groin, jetty, or mole appurtenant thereto, or on the causeway across Pelahatchie Bay in Rankin County or within one hundred (100) feet of any public boat launching ramp, or within any public park or any public recreation area within the Reservoir Project Area, except at places designated for such parking by posted signs, or on any portion of the Reservoir Project Area adjacent to the South and East sides of Rice Road between the diversion canal for Culley/Brashears Creek and the South and East rights-of-way of the Natchez Trace in Madison County. A vehicle stopped to load or unload passengers or property shall be deemed to be parked for purposes of this regulation. (b) Any area described in Part 203 Rule 1.2 (a) which is not designated as a parking area may be designated a "Tow Away Zone" by the posting of signs stating "Tow Away Zone-Vehicle Will be Towed Away at Owner's Expense." Any vehicle left unattended in a designated Tow Away Zone may be towed away and held until the owner shall pay the towing charges.

(c) It shall be unlawful for any Person to park any automobile or other vehicle within any portion of the Reservoir Project Area identified by a sign or signs stating “NO STOPPING NEXT (stated distance) MILES, Stopped Vehicles will be Towed at Owner’s Expense” or similar language. If any Reservoir Police officer finds an attended or unattended vehicle parked in violation of this rule, such officer is authorized to provide for the immediate removal of such vehicle to the a storage site or other place of safety, and the owner of the vehicle shall pay all costs of removal, safety inspection and storage prior to obtaining possession of the vehicle. (d) Prohibited Parking or Storage of Vehicles in Front and Side Yards, Sidewalks and on Public Streets or Rights-of-Way: No vehicle shall be parked or stored in any front yard or side yard within any residential area, except within a garage, carport, apron or driveway. Driveways cannot cover more than 50% of the front yard and a driveway must be solid surfaced with brick, asphalt or concrete. Parking and/or storage of any vehicle on a public street, sidewalk or public right- of-way is prohibited. EXCEPTIONS: Parking for isolated, non-reoccurring gatherings, parties or visitors will be permitted. Parking will be permitted in residential subdivisions where signage has been posted indicating where on-street parking is allowed. Unless prohibited by the covenants of a residential area: (i) Utility trailers, transient trailers, enclosed trailers, and the like not exceeding 18 feet in cargo area length must be parked or stored within an enclosed garage or open carport or behind the back line of the building (rear yard). Such items may be parked in the driveway, front or side yard for loading/unloading, clearing or repair for a period not to exceed seventy-two (72) hours. No utility trailer, transient trailer, enclosed trailer, or the like exceeding 18 feet in cargo area length shall be parked or stored within any residential area of the Reservoir Project Area. (ii) Boats, jet skis, other water craft, All-Terrain Vehicles (ATV) shall be parked or stored within an enclosed garage or open carport or behind the back line of the building (rear yard). Such items may be parked in the driveway, front or side yard for loading/unloading, cleaning or repair for a period not to exceed seventy-two (72) hours. (iii) Any trailer, boat, jet ski, other water craft or ATV that cannot be stored in a garage, carport, or rear yard may be parked on the premises’ driveway under the following conditions: (1) Any trailer, boat, jet ski, other water craft or ATV shall be in a current state of registration and licensing with the State of Mississippi with the license plate affixed thereto; (2) Any trailer subject to this regulation shall be in operable condition with inflated tires, license plate affixed thereto, and in road worthy condition; and

(3) Any boats, jet skis, other water craft or All-Terrain Vehicles (ATV) located upon trailers shall be in a good and operable condition and any and all boats, jet skis, water craft, or trailers shall be free of garbage, trash, refuse, debris, or other items in violation of Pearl River Valley Water Supply District Rules 6.1 and 6.7. (iv) Recreational vehicles, defined as a Class A, Class B, or Class C motor home, fifth wheels, travel trailers, or travel campers may not be parked in a residential area within the Reservoir Project Area and must be stored off site. Such items may be stored at a residential area in the Reservoir Project Area under special circumstances, which must be approved by the Pearl River Valley Water Supply District Board of Directors. The Board of Directors may grant a permit pursuant to the then existing PRV fee structure to allow parking such items which would otherwise violate this regulation. The applicant must show to the Board of Directors special circumstances, no adverse effect on the residence or the subdivision and that grant of the permit is not a violation of the subdivision’s covenants. Special circumstances shall include, but are not limited to, situations in which the leaseholder has invested substantial capital and made significant renovations or incurred significant construction costs prior to the adoption of this regulation. In making this determination, the Board of Directors may also take into consideration whether the Recreational Vehicle will be housed in an enclosed building or covered awning located on the premises and which was constructed prior to the adoption of this regulation. In order to justify special circumstance, said enclosed building or awning must be in a good and not dilapidated condition. Such vehicles may be parked in the driveway, front or side yard for loading/unloading, cleaning or repair for a period not to exceed seventy-two (72) hours. A recreational vehicle shall not be used as a residence within the Reservoir Project Area when not located within a campground or park. (v) No Specialty Vehicle shall be parked at any residence in the Reservoir Project Area, except when the same is actually being used for its normal purposes. Specialty vehicles shall be defined as a motor vehicle manufactured by a second stage manufacturer by purchasing motor vehicle components, e.g. frame and drive train, and completing the manufacture of finished motor vehicles for the purpose of resale with the primary manufacturer warranty unimpaired, to a limited commercial market rather than the consuming public. Specialty vehicles shall include garbage trucks, ambulances, fire trucks, buses, limousines, hearses, wreckers, landscape specialty trucks, box trucks, food trucks, and other similar limited purpose vehicles. Law enforcement vehicles or handicapped accessible vans are excepted from the provisions of this Regulation. (vi) No heavy equipment, defined as ground engaging equipment greater than 4,000 pounds, including, but not limited to, bulldozers, back hoes, track hoes, skid steer loaders, or the like may be parked or stored within any subdivision or residence within the Reservoir Project Area. (vii) Construction trailers and heavy equipment may be located on residential properties in the Reservoir Project Area during construction provided a permit has been issued by the Pearl River Valley Water Supply District Building Director or, for

construction or maintenance that does not require a permit, for a period not to exceed seventy-two (72) hours. Construction trailers and heavy equipment may not be parked, located on, or stored at a residential site within the Reservoir Project Area unless a part of a construction or maintenance project. (viii) Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Thousand Dollars ($1,000.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 1.3 Traffic Control at Public Parks of the District

(a) It shall be unlawful for any vehicle to enter Lakeshore Park, Old Trace Park or Pelahatchie Shore Park or any other public park of the District where a toll gate is maintained and attended unless the operator or other occupant of the vehicle shall first have paid to the toll gate attendant a traffic fee as posted at the toll gate, not to exceed $5.00 per vehicle, for each entrance into such park, provided that a vehicle for which a traffic fee has been paid may within the same calendar day be allowed to leave and enter such park one time without paying a second fee. An annual permit for access to the above mentioned parks may be purchased for a fee not to exceed $30.00 per year. The annual fee covers access to all parks and unlimited return visits within one calendar year. (b) Traffic fees shall be collected at all times during which the toll gate is attended on Saturdays, Sundays and legal holidays from March 1 through September 30 of each year and on such other days throughout the year as the General Manager may determine. (c) The term "vehicle" as used in this regulation shall mean without limitation every device in, upon or by which any person or property is or may be transported upon a street or highway, except nonmotorized devices designed to be moved solely by human power, and shall include without limitation, automobiles, trucks, jeeps, motorcycles, all terrain vehicles (ATV), off road vehicles, motor bikes, buses, vans, dirt bikes, and three- wheelers. (d) Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than Fifty Dollars ($50.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 1.4 Vehicle Restrictions

(a) It shall be unlawful within the Reservoir Project Area to operate any vehicle on the streets, roads or highways unless such vehicle is in compliance with the Mississippi Uniform Highway Traffic Regulation Law--Equipment and Identification Regulations. (b) It shall be unlawful within the Reservoir Project Area to operate any vehicle:

(i) Below or down stream of the toe drain below the main dam of the Reservoir in Madison or Hinds County; (ii) Over or across any portion of any dike, levee, groin, jetty or mole appurtenant to the waters of the Ross Barnett Reservoir or any marina or harbor adjacent thereto, other than along an approved public or private roadway along the top of such dike, levee, groin, jetty, mole or other appurtenant facilities; (iii) On, over or across any District road that is conspicuously marked "No Vehicles Beyond This Point" at each point of ingress thereto from a public roadway; (iv) Within, on, over or across any portion of the Reservoir Project Area which is not paved, graveled or otherwise hard surfaced. Dirt roads are not considered "hard surfaced" for purposes of this regulation. (v) ATVs are prohibited on all Reservoir Project Areas except as allowed in Part 203 Rule 1.4 (c) and Part 203, Rule 5.6. (c) The vehicle restrictions stated in Part 203 Rule 1.4 (b) (iv) above shall not apply to: (i) property within the Reservoir Project Area leased by the District but any use of such property by vehicle operators shall be made only with the permission of and at the sole risk of the lessee(s) of such property; (ii) vehicles which are used for landscape maintenance or gardening purposes provided such vehicles are being operated for such purposes; (iii) construction equipment during the course of construction; (iv) vehicles or equipment used for logging purposes during the course of removing timber; (v) vehicles owned by any agency of the State of Mississippi or of the United States government, or by any city or county as long as the vehicle is being used in the course of employment of the operator; (vi) any all terrain vehicle ("ATV") operated by or used to transport any person 70 years of age or older, or any person with a disability as determined the United States Social Security Administration or the Department of Veteran's Affairs or by any other governmental entity which determines, adjudicates or certifies disabling conditions provided such ATV is being operated for the sole purpose of (aa) accessing public hunting areas for hunting purposes during open seasons or (bb) retrieving deer or hogs. Persons exempt under this section are required to have proof of their age or disability status in their possession and available for inspection by law enforcement officers. (d) The term "all terrain vehicle" as used in this regulation shall mean a motorized, self propelled vehicle designed to travel over unimproved terrain on two or more tires which vehicle is not qualified as suitable for on-road use pursuant to the Mississippi Uniform Highway Traffic Regulation Law--Equipment and Identification Regulations or by the Inspection Regulations as published from time to time by the Mississippi Highway Patrol. The term "vehicle" as used in this regulation shall mean without limitation every device in, upon or by which any person or property is or may be transported upon a street or highway, except nonmotorized devices designed to be moved solely by human power, and shall include without limitation, automobiles, trucks, jeeps, motorcycles, all terrain vehicles (ATV), off road vehicles, motor bikes, buses, vans, dirt bikes, and three-wheelers.

(e) Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than Five Hundred Dollars ($500).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 2 Boats and Boating. Rule 2.1 Operation Of Power Boats In Congested Areas. (a) It shall be unlawful for any Person, firm, or corporation to operate any motor boat or other motor vessel in, along or around the Reservoir within the vicinity of any public launching ramp, commercial marina, yacht club or private dock or pier at a rate of speed which will cause a wake, provided that such area shall be conspicuously marked by a sign or signs stating "No Wake" upon entering and leaving such area. (b) It shall be unlawful for any Person, firm, or corporation to operate any motor boat or other motor vessel in, along or around the following areas in the Reservoir at a rate of speed which will cause a wake: Coal Bluff, the area under the Northshore Parkway Bridge at Pelahatchie Bay, an area up to 1000 feet east of the shoreline along the Natchez Trace Parkway between the Natchez Trace Overlook and the channel entering NorthBay Subdivision, an area along and east of a line between the western most point of Lakeshore Park and the western most point of Timberlake Campground, an area no more than 100 feet off the shoreline of Old Trace Park, an area no more than 100 feet off the shoreline of Pelahatchie Shore Park, provided that such areas shall be conspicuously marked by a sign or signs stating "No Wake" upon entering and leaving such area. (c) It shall be unlawful for any Person, firm, or corporation to operate any motor boat or other motor vessel in, along or around any area in the Reservoir at a rate of speed which will cause a wake: (i) within any area marked with Temporary Emergency "No Wake" signs or buoys; (ii) within 100 feet of any Law Enforcement Patrol Vessel while the blue beacon warning lights are activated or within 100 feet of any Fire/Rescue Vessel while the red beacon warning lights are activated. (d) The following "no wake" zones are in effect during the period of April 15 to September 15 of each year: Flag Island, Low-Head Dam and Eddie's Island. (e) For the purpose of this ordinance a "wake" shall be defined as any change in the vertical height of the water's surface caused by the passage of a vessel including, but not limited to, such craft's bow wave, stern wake or propeller wash. A "No Wake Area" shall mean an area in which a vessel must travel at idle speed so as not to produce a wake.

33 Miss. Admin. Code Pt. 203, R. 2.2 Mooring and Abandonment of Watercraft

(a) It shall be unlawful to moor any house boat, motor boat, cruiser, sailboat or other watercraft in open waters within the Reservoir Project Area except on a temporary basis with the owner or operator aboard. (b) It shall be unlawful to moor any house boat, motor boat, cruiser, sailboat or other watercraft having an overall length in excess of twenty-seven feet in any waters within the Reservoir Project Area at any place other than at a yacht club harbor or commercial marina, except that watercraft having an overall length in excess of twenty- seven feet may be moored at a private dock or pier provided for that purpose on leased waterfront property for seven or fewer continuous days, for not in excess of thirty total days during a calendar year. (c) It shall be unlawful to moor any house boat, motor boat, cruiser, sailboat or other watercraft having an overall length of twenty-seven feet or less in any waters within the Reservoir Project Area for longer than twelve hours at any place other than a yacht club harbor, a commercial marina, or a private dock or pier provided for that purpose on leased waterfront property. (d) It shall be unlawful to leave or abandon any watercraft in a waterlogged or sunk condition, or to moor any watercraft in any waters within the Reservoir Project Area at any place other than as provided in Part 203 Rule 2.2 (a), (b) or (c). (e) A representative of the District may remove any watercraft moored in violation of this Part 203 Rule 2.2 and the District may recover its costs of such removal from either the owner or operator of the watercraft, or in part from both the owner and the operator of the watercraft. (f) Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than Five Hundred Dollars ($500.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 2.3 Operation of Motorboats On The Ross Barnett Reservoir Which Are Not Equipped With Water Injected Exhaust Prohibited

(a) It shall be unlawful for any Person, firm or corporation to operate on the Reservoir or on any property owned by the District any inboard motorboat which does not discharge the exhaust from each engine either through an exhaust pipe extending below the surface of the water under normal operating conditions or through a water

injection muffling system or other muffling device. It shall be unlawful for any Person, firm, or corporation to operate any motorboat on the Reservoir or on any property owned by the District under any condition or in any manner which causes the noise level to exceed 86 decibels at a distance of 50 feet from the source of the noise. This regulation shall not apply to motorboats which are competing in authorized races or regattas and related events held upon the Reservoir with the approval of the District. (b) Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine not less than $50.00 nor more than $100.00 as determined by the court. For purposes of this regulation a violation shall not be deemed continuing, but each unlawful operation of a motorboat shall constitute a separate offense.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 2.4 Operation of Power Boats In General

(a) It shall be unlawful for any Person to occupy any part of the spillway structure of the main dam of the Reservoir or operate or float in boat, Personal Watercraft or any other floating apparatus within the wing walls upstream or from a boat 200 feet downstream from said spillway structure; it shall be unlawful to operate or float in a boat, Personal Watercraft or any other floating apparatus 175 feet upstream or 75 feet downstream of Lowhead Dam on the Pearl River in Leake or Madison Counties; it shall be unlawful for any Person to occupy any part of the causeway across Pelahatchie Bay in Rankin County, or any dike, groin, jetty, levy or mole appurtenant thereto. (b) It shall be unlawful for any Person to be towed on a tube or other towable device within the Reservoir unless such Person is wearing a U.S. Coast Guard approved flotation device. (c) Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not less than Fifty Dollars ($50.00) or more than Two-Hundred Fifty Dollars ($250.00) or imprisonment in the County Jail not to exceed fifteen (15) days, or both, such fine and imprisonment as determined by the Court.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 3 Swimming, Water Skiing, Towing of Devices. Rule 3.1 Swimming, Water Skiing, Towing of Devices. It shall be unlawful for any Person to engage in water-contact recreation within the Reservoir in violation of the following regulations: (a) Swimming, wading or floating in the Reservoir within one quarter mile of the spillway of the dam or any boat launching ramp is prohibited. (b) Water skiing or the pulling or towing by boat of any device in the Reservoir within a distance of one-quarter mile of the spillway of the dam, in all

33 Miss. Admin. Code Pt. 203, R. 3.2 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than Five Hundred Dollars ($500.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 4 Fishing. Rule 4.1 Restriction of Location. It shall be unlawful for any Person to fish from any part of the spillway structure of the main dam of the Reservoir or from a boat within the wing walls upstream or from a boat 200 feet downstream from said spillway structure; it shall be unlawful for any Person to fish from any part of the causeway across Pelahatchie Bay in Rankin County, or from any dike, groin, jetty, levy or mole appurtenant thereto.

33 Miss. Admin. Code Pt. 203, R. 4.2 Restriction of Trotlines, Throw Lines, Set Hooks or Jugs

It shall be unlawful for any Person to use trotlines, throw lines, or set hooks and jugs in the following portions of the Ross Barnett Reservoir: (a) That portion of the main lake of the Ross Barnett Reservoir lying south of a line between the point where Twin Harbor channel enters the main lake of the Reservoir under the Natchez Trace on the Madison County side of the Reservoir and the Fannin Landing boat launching ramp in Rankin County, Mississippi; (b) Pelahatchie Bay and Pelahatchie Creek; (c) Any area of the main lake or river lake lying within 100 yards of any sandbar or any public boat launching facility;

(d) Waters within any marked navigational channel between the State Highway 43 bridge and Ratliff Ferry in Madison County, Mississippi; and (e) Legal sport fishing with trotlines, throw lines, or set hooks and jugs may be conducted in all other waters of the Ross Barnett Reservoir in accordance with regulations from time to time promulgated by the Mississippi Department of Wildlife, Fisheries, and Parks.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 4.3 Requirement for Permit for Fishing Below the Ross Barnett Reservoir Spillway

Any person 16 years of age or older fishing or otherwise entering the parks below the Ross Barnett Reservoir Spillway shall complete a permit card application with the Pearl River Valley Water Supply District. The permit is applicable to both the Madison and Rankin County shoreline parks below the Ross Barnett Reservoir Spillway and will be provided by the District. The permit will be free of charge and must be completed once every twenty-four (24) hours and displayed on the dashboard of that person’s vehicle.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 4.4 Penalty

Each violation of this regulation shall constitute a parking violation and shall be punishable by a fine of not more than One Hundred Dollars ($100.00).

Rule 5.1 General. (a) It shall be unlawful to possess any firearm, air rifle, BB gun or primitive weapon in a public park within the Reservoir Project Area, except as otherwise specifically permitted by applicable state law. (b) Hunting dates and bag limits are as determined by the Mississippi Department of Wildlife, Fisheries and Parks (MDWFP) for the Hills Unit for private land, except during the permit-only archery hunts below spillway and in Parcels M & on the Northshore when the limit is one buck, and two does per permit. The definition of a legal bush for the special permit hunt is having EITHER a 15-inch inside spread OR an 18-inch main beam. (c) It shall be unlawful to discharge any pistol, handgun, shotgun with buckshot, centerfire or rimfire rifles (including .22) within the Reservoir Project Area. Shotguns with slugs may be used in areas designated below. Muzzle loaders with black powder may be used in areas designated below. Breach loaders and other smokeless primitive weapons are not allowed.

(d) Target practice is not allowed. (e) Activities in the area known as the Pearl River Wildlife Management Area, north of Highway 43 in Madison County, are exempt from these regulations. Regulations for Pearl River Wildlife Management Area are set forth in 40 Miss. Admin. Code, Part 2, Rule 1.1 and 1.19. (f) Nothing contained herein shall conflict with the rules and regulations of the MDWFP and such rules shall control in the event of conflict. (g) All hunters must comply with MDWFP licensure requirements and when applicable, the District's hunting permit and special permit requirements. (h) Food plots may be constructed only by the Pearl River Valley Water Supply District. Rye Grass is not allowed. (i) Supplemental feeding of wildlife is prohibited. (j) Alligator hunting is regulated by MDWFP.

Part 203 Chapter 5: Rule 5.2 Areas closed to hunting. (a) Hunting is not allowed within the Reservoir Project Area surrounding Pelahatchie Bay – the area bounded by Spillway Road, Highway 25, Holly Bush Road, Highway 471 and Northshore Causeway except Parcels M and N as provided below. (b) Hunting is not allowed within one quarter (1/4) mile of any of the District's park or campground area boundary. (c) Hunting is not allowed in the areas known as the undeveloped portion of Lost Rabbit and that portion of the Reservoir Project Area along and on both sides of Old Rice Road adjacent to Twin Harbor and Haley Creek Subdivisions. (d) Hunting is not allowed in Main Harbor, Sportsman Marina, Sunset Marina (aka Safe Harbor Marina), England Harbor, Jackson Yacht Club Harbor or Bridgepoint Marina. (e) Areas leased for hunting are closed to hunting by the public. Leasing of lands for the purpose of hunting shall conform to Sec. 51-9-122 of the Mississippi Code of 1972 as amended. (f) Brown’s Landing a/k/a Expedition Pointe.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 203, Chapter 5: Firearms and Hunting.
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.3 Areas open to hunting and type of hunting

(a) Found Rabbit and Catfish Landing shall be open to hunting for turkey, small game, deer and hogs (See Rule 5.4). (b) The area north of Arbor Landing and south of Highway 43 in Rankin County and all of the Project Area North of Highway 43, shall be open to turkey, deer, hogs and small game hunting (see Rule 5.4). (c) The waters of the Reservoir north of a line between Arbor Landing and Twin Harbor shall be open to waterfowl hunting with non-toxic shot. (d) The area bounded by Highways 471 and 25 and Pelahatchie Creek and the area east of Highway 25 in Rankin County shall be open to only archery hunting for deer, turkey and hogs. (e) The area below the Main Dam and the Spillway shall be open to only archery hunting for deer, turkey and hogs by special permit only. The Spillway area shall be open for squirrel and small game hunting as specified in Rule 5.4 and 5.9 of these regulations. Parking is only allowed below the Main Dam and Spillway area and shall be limited to the paved parking areas near the Spillway, including the Madison County

Spillway parking area and Mule Jail Trail parking area. For Rankin County, parking is allowed in the soccer field area behind the Pearl River Valley Water Supply District Shop and Reservoir Police Department and in the Spillway parking lot. (f) Parcels M & N on the northshore shall be open to only archery hunting only for deer and turkey hunting by special permit only. (h) Special permits in (e) and (f) above will be obtained through a public draw system where winners are randomly chosen. The public draw system shall be conducted in accordance with procedures and shall be subject to rules, restrictions and fees adopted from time to time by the Board of Directors of the District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.4 Types of firearms allowed

(a) Deer or Hogs: (i) Archery Equipment: Longbows, recurves, compounds and crossbows. (ii) Primitive Firearms: Only muzzle loading weapons using black powder or black powder substitute shall be allowed. (iii) Shotguns with slugs only. (b) Turkey: Archery equipment and shotguns with #2 shot or smaller. (c) Small Game: Shotguns using #4 shot or smaller. (d) Waterfowl: Shotguns using non-toxic shot. Rule 5.5 Types of firearms not allowed. (a) Centerfire or rimfire rifles (including .22 caliber), air rifles, gas powered rifles or CO

powered rifles. (b) Shotguns with buckshot. (c) Handguns. (d) Breach loaders and other smokeless “primitive” weapons.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.6 All Terrain Vehicles (ATVs)

(a) ATVs ware not allowed within the Reservoir Project Areas except as provided herein.

(b) ATVs may be used to retrieve a harvested deer or hog. (c) ATVs may be used for access to hunting areas by a person of over 70 years of age or disabled as defined by the Social Security Administration or the Veterans Administration. (d) Joy riding or mid riding is not allowed. (e) ATVs shall not be allowed below the main dam, except with permission for game retrieval during special draw archery hunts.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.7 Other vehicles

(a) All other vehicles, including but not limited to, trucks, jeeps, automobiles, vans, buses, dirt bikes or motorcycles shall be restricted to roads and areas marked as “open to vehicles”.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.8 Tree stands, camps and garbage

Tree Stands and Blinds: It shall be illegal to construct or to hunt from any permanent stands or blinds. Destroying, defacing, cutting, driving nails or spikes into, or otherwise damaging any standing live tree, natural feature, or plant is prohibited. Portable stands (including tripods and ground blinds) may be used. Stands left on the area do not reserve hunting locations. Portable stands may not be installed within the Reservoir Project Area prior to 7 days before deer season opens, nor left longer than 7 days after deer season closes. Stands not in compliance with these regulations may be confiscated and disposed of. Spikes, nails or other metal shall not be driven or screwed into trees of the Reservoir Project Area. No permanent tree stands will be allowed. Fall-Arrest Systems: While climbing a tree, installing a tree stand that uses climbing aides, or while hunting from a tree stand within the Reservoir Project Area, hunters shall use a fall-arrest system (full body harness) that is manufactured to Treestand Manufacturers Association standards. No camps, camp houses, trailers or other temporary or permanent structures shall be allowed. Primitive (tent) camping is allowed in designated areas only. Field dressing of deer and hogs is allowed at site of harvest. All garbage, animal carcasses, etc. shall be disposed of off of the Reservoir Project Area in accordance with Part 203 Chapter 6 of PRVWSD regulations and MDWFP regulations.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.9 Spillway and Small Game Squirrel Regulations

(a) The following regulations are applicable to squirrel and/or small game hunting below the Main Dam and the Spillway area only. (b) Hunting for squirrel during the MDWFP fall squirrel season shall be restricted below the Main Dam and Spillway area to only weekend hunts occurring during the month of February and shall occur on a daily basis during the MDWFP spring squirrel season. Any and all MDWFP state licensing requirements and bag limits apply to squirrel hunts below the Main Dam and the Spillway area for both the fall and spring season. (c) Spillway squirrel hunts are to be youth oriented. At least one child aged 15 and under must be a part of the party and must remain under direct supervision of a licensed or exempt adult, 21 years or older. Adults can carry firearms and shoot squirrels. Children under 15 must carry proof of satisfactorily completing an approved hunter safety course. (d) During the weekend February season, legal shooting hours are from noon to 30 minutes after sunset on Friday, and 30 minutes prior to sunrise until 30 minutes after sunset on Saturdays and Sunday. Spring season is open daily with legal shooting hours being 30 minutes before sunrise until 30 minutes after sunset. (e) No dogs allowed. (f) Shotguns only, No. 4 size shot or smaller. (g) All members of the hunting party must wear a fluorescent hunter orange vest, minimum of 500 square inches, while hunting. No exceptions. (h) Hunting parties must check in before each hunt and must check out after each hunt, and return an information card upon check out. The check station will be the Reservoir Shop near the deer weighting station. Information will include names of each hunter, side of river chosen (Madison or Rankin), and harvest results. During hunt, the information card must remain on the dashboard of hunting party’s vehicle while in the designated area. If a party leaves the hunting area for lunch, they must check out and check back in prior to hunting in the afternoon. (i) Any small game legal during the February season (rabbit, raccoon, opossum, bobcat) may be harvested using state limits; however, only squirrel may be harvested during the spring season.

33 Miss. Admin. Code Pt. 203, R. 5.10 Definition of Areas

(a) The undeveloped area of Lost Rabbit consists of District lands east of the Natchez Trace in Sections 11 and 14 of T7N, R2E Madison County, Mississippi. (b) The undeveloped area of Catfish Landing consists of District lands west of the Natchez Trace in Sections 31 & 32 of T8N, R3E and Section 6, T7N, R3E. Madison County, Mississippi. (c) Brown’s Landing consists of District lands east of the Natchez Trace in Sections 22 & 27 of T8N, R3E, Madison County, Mississippi. (d) The undeveloped areas along and on both sides of Old Rice Road adjacent to Twin Harbor and Haley Creek Subdivisions consisting of District lands west and north of the Natchez Trace in Section 1 & 11, T7N, R2E, Madison County, Mississippi. (e) The undeveloped area of Found Rabbit consists of District lands east of the Natchez Trace in Section 12, T7N, R2E and Section 7, T7N, R3E, Madison County, Mississippi.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.11 Implied consent to search of vehicles

(a) By bringing a vehicle on the Reservoir Project Area for the purpose of hunting the properties as defined herein, the driver has consented to search of the vehicle, entering, exiting or located in a hunting environment, for compliance with these regulations and the regulations of the MDWFP.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 5.12 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than one thousand dollars ($1000.00) and/or imprisonment in the county jail not to exceed fifteen (15) days, or both, such fine and imprisonment as determined by the Court.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 6 Disposal or Abandonment of Waste, Rubbish, Garbage and Other Property In or Upon Reservoir Project Area; Possession of Glass Containers. Rule 6.1 (a) Prohibition of Disposal. It shall be unlawful for any Person, firm or corporation to deposit, dump, leave or abandon any waste, rubbish, garbage or other property (including but not limited to cans, bottles, jars, glass, paper, plastic, styrofoam, wood, metal,

33 Miss. Admin. Code Pt. 203, R. 6.2 Disposal From Watercraft

It shall be unlawful for any Person, firm or corporation to dispose of sewage, garbage or refuse from watercraft in the waters of the District except in accordance with the provisions hereof. (a) Toilet - no marine toilet, heads, sink, shower, bathtub, washing machine or other device on any water craft may be operated so as to discharge sewage directly or indirectly to the waters of the District. (b) Holding tank - all marine toilets, heads, sink, shower, bathtub, washing machine or other such devices on watercraft shall be provided with a holding tank or holding tanks of sufficient capacity to prevent discharge of sewage into the District's waters. (c) Disposal of sewage - all sewage within a holding tank shall be disposed of only at facilities approved for such purpose by the District. (d) Holding tank construction - all sewage holding tanks shall be durable, water tight, non- absorbent, sealed or locked in a manner approved by the District, and maintained in good repair. (e) Holding tank discharge lines - discharge lines from sewage-holding tanks shall be readily accessible above the maximum load water line and quick coupling devices provided. Discharge line connection shall be sized and fitted so as to preclude the possibility of attaching a potable water hose thereto. (f) Garbage and other refuse - garbage and other refuse shall not be discharged or emptied from any watercraft into District waters or on the adjacent shore. All garbage and refuse shall be stored aboard the water craft in leak-proof, non-absorbent

containers with tight-fitting lids and disposed of only at designated disposal sites provided on shore.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 6.3 Residential Use

It shall be unlawful for any Person to use any watercraft as a residence unless such watercraft has a functional toilet. Residential use shall include occupancy by one or more Persons as a temporary or permanent residence but shall not include occasional overnight or weekend accommodation.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 6.4 Monthly Pump Out

It shall be unlawful for any Person to use any watercraft as a residence unless the holding tank on the watercraft is pumped out at least once each calendar month. Evidence of compliance in the form of a certificate from the operator of a marina within the Reservoir Project Area shall be maintained on the watercraft.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 6.5 Annual Sanitary System Inspection

The owner of any watercraft with a marine toilet, heads, sink, shower, bathtub, washing machine, holding tank or other device shall obtain annually a sanitary system inspection from the District and have proof of current inspection certificate prominently displayed at all times the watercraft is in the Reservoir. The District shall charge an inspection fee in the amount set, from time to time, by the Board and included in its official minutes. The inspection will be payable by the owner of any watercraft prior to issuance of the inspection certificate.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 6.6 Right of Inspection

The District and its agents shall have full authority to inspect all watercraft found in the District's waters to insure compliance with this regulation and to remove such watercraft from the Reservoir if found in violation hereof. If any watercraft is not in compliance with this regulation and a further inspection or inspections are required to determine proper compliance, the owner of the watercraft shall pay the District a fee for each follow-up inspection in the amount set, from time to time, by the Board and included in its official minutes.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 6.7 Prohibition Against Junk or Scrap

It shall be unlawful for any Person, firm or corporation occupying or in possession of real property within the Reservoir Project Area, as lessee, sublessee or permittee or otherwise, to suffer or permit any non-functional automobile, boat, trailer, appliance, or part thereof, or any other item commonly classified as junk or scrap, to be and remain on such real property within view from any public highway, road or street, any public park, public recreation area or public boat ramp for a period in excess of 30 days.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 6.8 Prohibition Against Outdoor Burning

Outdoor burning of any material within the Reservoir Project Area is prohibited other than (i) charcoal or other material intended for cooking provided the material is maintained in an enclosed grill or container; (ii) charcoal, prepared logs or wood in enclosed containers designed to provide outdoor heat provided spark protection is provided; (iii) material intended for cooking in covered pits provided the pits do not exceed four feet in diameter, length or width; and (iv) the District may continue prescribed burns as part of its forestry management and property development programs. The term "material" includes debris, leaves, limbs, brush, vegetation, construction debris, business trash and all other smoke producing materials.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 6.9 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Thousand Dollars ($1,000.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 7 Operation of Public Parks, Public Recreation Areas, Public Boat Launching Facilities, Public Fishing Piers, Public Parking Areas; Consumption of Alcohol. Rule 7.1 Posted Notice for Times of Opening/Closing. It shall be unlawful for any Person to enter upon or remain within or otherwise occupy any public park, public recreation area, public boat launching facility, public fishing pier or public parking area within the Reservoir Project Area, except during such months, days and hours as shall be posted at each specific public park, public recreation area, public boat launching facility, public fishing pier or public parking area. Persons engaged in hunting or fishing activities may use public boat launching facilities, fishing piers and adjacent public parking areas at Madison Boat Ramp, North Fishing Jetty, designated fishing areas on either side of the Pearl River south of Bob Anthony Parkway, Goshen Springs Boat Launch, Rankin Boat Ramp & Fishing Pier, Pelahatchie Shore Boat Ramp, Pelahatchie Bay Boat Launch & Fishing Pier, Fannin Landing Boat Launch, Hwy 43 Fishing Pier, Safe Harbor Boat Launch, West Pipeline Road (Rankin County) Boat Launches (when access is available), Brown’s Landing, Ratliff Ferry Boat Launch, Coal Bluff Boat Launch, Lowhead Dam Boat Launch, Leake County Water Park Boat Launch and Highway 13 Boat Launch at any time incident to actual hunting or fishing activities.

33 Miss. Admin. Code Pt. 203, R. 7.2 Traffic Control Fee

It shall be unlawful for any Person other than an occupant of a vehicle for which the fee established pursuant to Part 203 Rule 1.3 has been paid, to enter in or upon or to remain within any public park or public recreation area within the Reservoir Project Area, unless such Person shall have paid the traffic fee as posted at the toll gate for each entrance into such public park or public recreation area.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000

33 Miss. Admin. Code Pt. 203, R. 7.3 Closing Order

It shall be unlawful for any Person to enter upon, remain within or otherwise occupy any public park (including a neighborhood park), public recreation area,

public boat launch (including a neighborhood ramp), public parking area or any other public area within the Reservoir Project Area during any period that any such public area has been ordered to be closed by the General Manager of the District in order to preserve public order or to prevent or lessen the likelihood of riot, civil commotion, disorderly conduct, public nuisance or a threat or danger to the public health, safety or welfare or to the water quality of the Reservoir. The General Manager shall enter in a ledger kept by him for that purpose the time, duration, and reason for any closing of a public area ordered by him.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 7.4 Vehicular Capacity

The vehicular capacity of each public park or public recreation area which has an entrance gate shall be determined from time to time by the Board of Directors of the District. Each public park and other public recreation area which has an entrance gate or other controllable ingress/egress restriction shall have posted the maximum number of vehicles which may be located in the park or recreation area. It shall be unlawful for any vehicle to enter any public park or public recreation area of the District where an entrance gate is maintained and where a sign is posted indicating that the park or recreation area has reached its maximum vehicular capacity or words of similar meaning. Variance may be authorized by the Board for permitted special events.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 7.5 Prohibition of Alcoholic Beverages

It shall be unlawful for any Person to possess or consume beer, wine, liquor or any other alcoholic beverage, including wine coolers, within any public park, public recreation area, public boat launching facility, public fishing pier, public parking area or other public area within the Reservoir Project Area not inundated by the waters of the Reservoir unless authorized in a special permit issued by the Board of Directors of the District. Persons engaged in the act of launching and/or loading or unloading a boat at a launch facility with sealed or closed containers of alcoholic beverages shall be exempt from this ordinance if it is otherwise legal to possess such beverages in the applicable county.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 7.6 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 8 Keeping Of Animals And Fowl Within The Boundaries Of The District. Rule 8.1 Restriction of Animals and Fowl. It shall be unlawful for the owner or keeper of any wild or domestic animal (other than natural or naturalized water fowl) to permit the same to run at large on property owned by or leased from the District or to stray from the premises of the owner or keeper or to go upon premises or property owned by or leased from the District or other public or private property unless such animal is attached to a leash or otherwise under the direct, physical or voice control of

33 Miss. Admin. Code Pt. 203, R. 8.2 Prohibition of Swine and Cattle; Restriction of Horses

It shall be unlawful for any Person to keep or harbor any swine or cattle on any property owned or leased from the District and no horses shall be kept or maintained on any lot or tract of land composed of less than 3 acres.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 8.3 Prohibition of Dangerous Animals

It shall be unlawful for any Person to keep or maintain any vicious, ferocious or dangerous animal unless such animal is kept or maintained solely for security purposes and is at all times kept within an enclosure sufficient to prevent escape and exposure to the public.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 8.4 Prohibition of Noisy Animals

It shall be unlawful for any Person to keep or harbor any animal or fowl which by loud, frequent or habitual barking, howling, yelping or other noise or action disturbs any person or persons on property owned by or leased from the District or otherwise creates a nuisance in any manner.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 8.5 Restriction of Dogs and Cats

It shall be unlawful to own or keep or harbor any dog or cat three months of age or older on property owned by or leased from the District unless the dog or cat shall have been vaccinated against rabies in accordance with Chapter 53, Title 41, Mississippi Code of 1972, and a metal tag securely braded to the collar containing the serial number of the vaccination and the year in which the dog or cat was inoculated shall be placed and maintained around the neck of said dog or cat at all times.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 8.6 Identification of Owner of Animal

It shall be unlawful to own or keep any animal on property owned by or leased from the District unless there is placed and maintained around the neck of such animal a tag containing the name and telephone number of the owner or keeper at all times.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 8.7 Confinement of Animal

Any Reservoir Patrol Officer in the course of his duties of investigation of cases in which animals have bitten or scratched a person or other animals shall notify the owner of said animal to surrender the animal to the Reservoir Patrol Officer or otherwise to arrange for the animal to be delivered to the animal shelter in the County where the animal is found (or to such other animal shelter

as may be designated from time to time by the District) and kept for a period of not less than 10 days after the biting or scratching of such person or other animal, during which period it shall be determined by a designated official whether such animal is suffering from any disease. If no disease is found, the animal may be released to the owner, provided that the owner produces to a Reservoir Patrol Officer proper evidence of vaccination of the animal for rabies which vaccination must have been administered within 12 months previous to the biting or scratching. Any animal found to be infected with rabies shall be forthwith destroyed by the appropriate officers of the animal shelter or county health department.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 8.8 Cost of Animal Shelter

If any dog or other animal is delivered to an animal shelter pursuant to this ordinance, the owner or keeper of such dog or animal shall pay all costs incurred or otherwise charged by the animal shelter prior to release of such dog or animal.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 203, R. 8.9 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine not less than $25.00 nor more than $500.00 for each such offense.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 9 Feeding of Geese. Rule 9.1 Prohibition. It shall be unlawful for any Person to feed a Canada goose on property owned by or leased from the District. The term "feed" means providing food in any manner or otherwise making food available, including feeding by hand, leaving food on the ground or in the water, or any other activity designed to provide food for a Canada goose.

33 Miss. Admin. Code Pt. 203, R. 9.2 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not less than $50.00 nor more than $500.00 for each offense.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 10 Feeding of Alligators. Rule 10.1 Prohibition. It shall be unlawful for any Person to feed an alligator on property owned by or leased from the District. The term "feed" means providing food in any manner or otherwise making food available, including feeding by hand, leaving food on the ground or in the water, or any other activity designed to provide food for an alligator.

33 Miss. Admin. Code Pt. 203, R. 10.2 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not less than $50.00 nor more than $500.00 for each offense.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 12 Camping. Rule 12.1 General. It shall be unlawful for any Person to camp within one-half mile of any platted subdivision or on any land posted "No Camping" located within the Reservoir Project Area except on property privately leased and not open to the public or in campgrounds operated by the District. For purposes of this regulation, “camp” or “camping” is defined as residing on or using property for one or more nights for living accommodation purposes, such as sleeping activities or making preparations to sleep or storing personal belongings (including but not limited to clothing, sleeping bags, bedrolls, blankets, back packs, food, drink, kitchen utensils and similar material), making any fire, erecting any tent or make-shift covering, residing in a parked vehicle or assembling for the purpose of camping. These activities constitute camping when it reasonably appears, in light of all the circumstances, that a person(s) is utilizing the space in a manner contrary to this regulation. (a) All camping conducted on the Reservoir Project Area not within a campground operated by the Pearl River Valley Water Supply District (PRVWSD) shall be primitive camping. (b) Definition of primitive camping. (i) Simple camping in a natural setting without improvements or modern conveniences. Water, sewer and electrical systems provided by a local authority are considered improvements. Generators may be used provided that use complies with the PRVWSD noise regulations and the generator is removed at the end of the camping trip. (ii) All equipment used in camping must be brought to the site at the beginning of or during the camping trip and removed at the end of the camping trip. (iii) No permanent structures or facilities may be constructed or installed. This includes but is not limited to lumber and metal frames for holding tents

33 Miss. Admin. Code Pt. 203, R. 12.2 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable be a fine not less than $25.00 nor more than $500.00 for each such offense.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Title 33, Part 203, Chapter 13. Restricted Areas

33 Miss. Admin. Code Pt. 203, R. 1.1 Rule 1.1

It shall be unlawful for any unauthorized person to enter or encroach upon the following areas: The earthen dam between Upper Spillway Road and Lower Spillway Road from Levee Road to Reservoir Park Road; any part of the spillway gates; the O B. Curtis intake structure on Upper Spillway Road; the Low Head Dam weir; the enclosed Ratliff Ferry Wastewater Treatment Plant.

Part 204 Regulations Pertaining to use of the Reservoir Project Area for Commercial or Residential Purposes

33 Miss. Admin. Code Pt. 204, R. 1.2 Horizon Year: The estimated year of complete build-out or full use of a proposed development

As a minimum, this shall be two years from application submittal.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 1.3 Rule 1.3

Impact: The traffic generated to a proposed development will add traffic to the surrounding street network, changing the existing traffic patterns, operations and safety concerns.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 1.4 Average Daily Traffic (ADT): A measure of 24-hour traffic volume for normal daily traffic flow conditions

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 1.5 Rule 1.5

Peak-Hour Movements: A measure of the higher volume movement on a street or at an intersection during normal daily traffic flows.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 1.6 Rule 1.6

Level of Service: Quantitative measure describing operational conditions within a traffic stream and the perception by motorists. The conditions are measured in terms of factors such as speed, travel time, interruptions, comfort, convenience and safety. Level of service measures are to be determined as described in the 1985 Highway Capacity Manual, Special Report 209 by the Transportation Research Board or the latest edition and supporting software, or, if no longer published, such similar manual as may be selected by the General Manager.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 2 Restricted Vehicles Rule 2.1 Restricted Vehicles. Vehicles are classified in accordance with the Federal Highway Administration’s classification system. A copy of that classification chart is attached to the regulations as Appendix 1. Vehicles classified in 105 are permitted to operate on or across the main dam or any part of the dike around Main Harbor. It shall be unlawful to operate any vehicle classified in-12 on or across the main dam or any part of the dike around Main Harbor.

33 Miss. Admin. Code Pt. 204, R. 2.3 Parking

It shall be unlawful to leave parked in any public park, public recreation area, public boat launching facility, public fishing pier or public parking area within the Reservoir Project Area or subdivision any commercial class of vehicle with a load capacity of greater than one-ton or a rated towing capacity of greater than 24,500 lbs unless such vehicle is included in a facility use permit or special parking permit issued by the District’s permit department subject to payment of a fee set, from time to time, by the Board.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 2.4 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than Two Hundred Fifty Dollars ($250.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 3.2 Payment of Fee

Additionally, it shall be unlawful to promote or hold on the waters of the Reservoir any fishing tournament, contest, rodeo or other fishing event without first securing written authorization therefor from the General Manager of the District, payment of a fee to the District in the amount of two dollars ($2.00) for each boat involved in the tournament and providing a satisfactory certificate of public liability insurance. Authorization is discretionary.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 3.3 Written Application

Written application shall be received by the General Manager of the District no later than thirty days in advance of the event. No event will be scheduled until receipt by the District of the complete written application and delivery of certificate of insurance. A complete roster of actual participants and payment of the fee shall be submitted to the General Manager within seven (7) business days following the conclusion of the event.

3986776.1/00520.00006

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 3.4 Scheduling

Fishing tournaments, contests, rodeos and other fishing events shall be scheduled to encompass any weekend of the month unless the Board of Directors has declared certain weekends closed to such events for public health, safety or welfare as designated in the minutes of the Board from time to time. District staff will determine the scheduling process.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 3.5 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Thousand Dollars ($1,000).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 4 Licensing And Insurance Requirements With Reference To Operation Of Commercial Vessels On The Reservoir. Rule 4.1 Commercial Vessel. For purposes of these Regulations, the term "commercial vessel" shall be deemed to mean any power driven vessel carrying more than six (6) passengers exclusive of crew and offered for rental, charter or hire, with operator and crew furnished, in, along, upon or around the Reservoir in Hinds, Madison, Rankin, Scott or Leake Counties, Mississippi.

33 Miss. Admin. Code Pt. 204, R. 4.2 Operator's License

It shall be unlawful for any person, firm, or corporation to operate or offer for rental or hire any commercial vessel in, along, upon or around the Reservoir unless the operator of such vessel shall have in his possession and available for examination at all times when the vessel is being operated a current registration to operate a commercial vessel for commercial operation or commercial passenger carry on the Reservoir issued by the Mississippi Department of Wildlife, Fisheries, and Parks.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 4.3 Certificate of Inspection

It shall be unlawful for any person, firm, or corporation to operate or offer for rental or hire any commercial vessel in, along, upon or around the Reservoir unless each person, firm or corporation shall have on file with the District a current Certificate of Inspection with respect to such vessel from an approved registered naval architect or approved marine enginer..

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 4.4 Licensed Crew

It shall be unlawful for any commercial vessel to be operated on the Reservoir unless she shall have in her service and on board a currently licensed operator of commercial vessels and such crew as requiredby Rule 4.7 of this regulation.

3986776.1/00520.00006

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 4.5 Commercial Privilege License

(a) It shall be unlawful for any person, firm, or corporation to operate or offer for rental or hire any commercial vessel in, along, upon or around the Reservoir unless such person, firm or corporation shall have obtained from the Board of the District a non- exclusive commercial privilege license for such commercial vessel. The application for such privilege license shall be accompanied by evidence of compliance with the Rules and Regulations regarding commercial vessels for the Pearl River Valley Water Supply District, together with a current commercial Operator's or Commercial Passenger Carry License as required by the Mississippi Department of Wildlife, Fisheries, and Parks. (b) Such privilege license may be granted upon the payment to the District of an annual fee of Ten Dollars ($10.00) per head of safe-carrying capacity of the commercial vessel as stated in the vessel's Certificate of Inspection, but in no case less than Two Hundred Fifty and No/100 Dollars ($250.00). (c) Such privilege license shall be valid for a period of one (1) year from the date of issuance or such shorter period as the Board of the District may specify; provided that such license may be revoked prior to the expiration thereof whenever inspection reveals any matter which would have resulted in denial of a license and such license shall be considered automatically terminated in the event of any violation of the Rules and Regulations of the Pearl River Valley Water Supply District. By accepting a license, the licensee shall be deemed to have consented to inspection of the commercial vessel by employees or agents of the District at such reasonable times during the term of said license as they may see fit. (d) Application for a privilege license shall be accompanied by an application for public liability insurance to be issued by an insurance company doing business in the State of Mississippi with an acceptable Best's rating, with limits of not less than $1,000,000 for all damages arising out of bodily injury to or death of one or more persons and property in any one accident, resulting from or in connection with the operation of the commercial vessel. A certificate for such insurance, including the District as an additional insured, together with a paid receipt, shall be on file in the office of the District prior to operation of the commercial vessel for rental or hire in, along, upon or around the Reservoir. (e) Each violation of this Regulation shall constitute a misdemeanor and shall be punishable by fine of not more than One Hundred Dollars ($100.00) or imprisonment in the County Jail not to exceed fifteen (15) days, or both such fine and imprisonment as determined by the Court. For purposes of this Regulation, a violation hereof shall constitute a separate offense. Nothing contained herein shall limit the penalty for violation of the Rules and Regulations of the Pearl River Valley Water Supply District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 4.6 Commercial Vessel Certification

3986776.1/00520.00006 (a) It shall be unlawful for any person, firm or corporation to operate or offer for rental or hire any commercial vessel in, along, upon or around the Reservoir unless each person, firm or corporation shall have on file with the District a current Certificate of Inspection with respect to such vessel from an approved registered Naval Architect or approved Marine Engineer stating that such vessel: (i) Has been constructed and arranged in substantial compliance with the requirements of subparts 177.100, et seq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations as then in effect. (ii) Is in substantial compliance with the requirements as to watertight integrity and subdivision as set out in subparts 179.15, et seq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations as then in effect. (iii) Is in substantial compliance with the requirements as to stability as set out in Subparts 178.115, et seq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations as then in effect. (iv) Is equipped in substantial compliance with the requirements as to life saving equipment as set out in Subparts 180.10, et eq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations as then in effect. (v) Is equipped in substantial compliance with the requirements as to fire protection equipment as set out in Subparts 181.115, et seq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations as then in effect. (vi) Is constructed and equipped in substantial compliance with the requirements as to machinery installation as set out in Subparts 182.100, et eq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations as then in effect. (vii) Is constructed and equipped in substantial compliance with requirements as to electrical installation as set out in Subparts 183.100, et seq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations, as then in effect. (viii) Is equipped in substantial compliance with the requirements as to vessel control and miscellaneous systems and equipment as set out in Subparts 184.100, et seq. of Title 46, Chapter 1, Subchapter T, Code of Federal Regulations as then in effect; the installation of suitable Citizens Band radio equipment will be considered substantial compliance with the Federal Communications Commission for purposes of the Reservoir. (b) The maximum number of passengers permitted to be carried on a commercial vessel shall be as determined by the approved registered Naval Architect or approved Marine Engineer and shall be stated on the vessel's Certificate of Inspection. (c) The Certificate of Inspection shall be deemed current for a period of three (3) years from and after the date on which the same shall be executed by an approved registered Naval Architect or approved Marine Engineer.

3986776.1/00520.00006 (d) Each violation of this Regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100.00) or imprisonment in the County Jail not to exceed fifteen (15) days, or both such fine and imprisonment as determined by the Court. For purposes of this Regulation, a violation hereof shall constitute a separate offense. Nothing contained herein shall limit the penalty for violation of the Rules and Regulations of the Pearl River Valley Water Supply District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 4.7 Requirements As To Operator And Crew

(a) It shall be unlawful for any commercial vessel to be operated while her Certificate from an approved registered Naval Architect or approved Engineer is in effect unless she shall have in her service and on board a currently licensed operator of commercial vessels on the Reservoir and such crew as may be necessary for her safe operation. For commercial vessels having a safe carrying capacity of forty-nine (49) or less, minimum crew shall consist of one (1) licensed operator of commercial vessels on the Reservoir and (1) deckhand at least seventeen (17) years of age, or older. For vessels having a safe carrying capacity of fifty (50) or more, the crew shall consist of one (1) or more licensed operator of commercial vessels on the Ross Barnett Reservoir and, at least, two (2) deckhands, seventeen (17) years of age, or older. (b) Each violation of this Regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100.00) or imprisonment in the County Jail not to exceed fifteen (15) days, or both such fine and imprisonment as . determined by the Court. For purposes of this Regulation, a violation hereof shall constitute a separate offense. Nothing contained herein shall limit the penalty for violation of the Rules and Regulations of the Pearl River Valley Water Supply District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 4.8 Licensing Of Commercial Operators

(a) Applicants for operator's licenses of commercial vessels shall file written application with the Mississippi Department of Wildlife, Fisheries, and Parks, accompanied by satisfactory evidence that the applicant: (i) Has successfully completed an examination administered by the United States Coast Guard, Department of Transportation, which shall include, among other things, Inland Rules of the Road, firefighting and life saving procedures and techniques, and pollution regulations applicable to the Reservoir. (ii) Is at least twenty-one (21) years of age. (b) An operator's license shall be current for a period of three (3) years from and after the date the same was granted but may be extended for successive periods of

3986776.1/00520.00006 three (3) years upon request for such extension accompanied by the certificate of a reputable physician and written endorsement from three (3) reputable persons, as provided in Part 204 Rule 4.8 (a) (iii) and (iv) above, together with evidence that the applicant has operated commercial vessels on the Reservoir during the preceding three (3) years. (c) From and after the effective date of this regulation it shall be unlawful for any person, firm or corporation to operate or offer for rental or hire any commercial vessel in, along, upon or around the Reservoir unless the operator of such vessel shall have his current license as an operator of a commercial vessel on the Reservoir in his possession, available for examination at all times when the vessel is being operated. Each violation of this Regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100.00) or imprisonment in the County Jail not to exceed fifteen (15) days, or both such fine and imprisonment as determined by the Court. For purposes of this Regulation, a violation hereof shall constitute a separate offense. Nothing contained herein shall limit the penalty for violation of the Rules and Regulations of the Pearl River Valley Water Supply District Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Rule 4.9 Notice Of Accident. (a) It shall be unlawful for the owner or person in charge of any commercial vessel involved in a boating accident to fail to give notice of such accident as soon as possible as provided in Section 59-21-51, Mississippi Code of 1972, and to furnish a copy of such notice to the General Manager of the District. (b) Each violation of this Regulation shall constitute a misdemeanor and shall be punishable by fine of not more than One Hundred Dollars ($100.00) or imprisonment in the County Jail not to exceed fifteen (15) days, or both such fine and imprisonment as determined by the Court. For purposes of this Regulation, a violation hereof shall constitute a separate offense. Nothing contained herein shall limit the penalty for violation of the Rules and Regulations of the Pearl River Valley Water Supply District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 5 Regulation of Solicitors and Peddlers. Rule 5.1 Solicitor. A solicitor is any person traveling either by foot, wagon, automobile, motor truck, or any other type of conveyance, from place to place, from house to house, or from street to street, taking or attempting to take orders for sale of goods, wares, and merchandise, personal property of any nature whatsoever, for future delivery, or for services, whether or not such individual has, carries, or exposes for sale a sample of the subject of such sale, or whether he is collecting advance payment on such sales or not.

33 Miss. Admin. Code Pt. 204, R. 5.3 Rule 5.3

Garage Sale: The sale or offering for sale to the general public of items of tangible personal household property obtained by the seller for his or her personal use, whether within or outside any building. The sale of a single commodity, such as a vehicle, shall not constitute a “garage sale”. This term shall include “rummage sales”, “yard sales”, “attic sales” and all similar terms. Rule 5.4 Restrictions. It shall be unlawful for any solicitor or peddler to go in or upon any portion of the Reservoir Project Area unless he first shall have been requested or invited so to do by the District or under permit from the respective county official.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 5.5 Nonprofit organizations

Persons representing bona fide religious, civic, charitable, cultural and governmental organizations not operated for profit for federal income tax purposes shall not be considered a Solicitor or Peddler for purposes of this section.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 5.6 Rule 5.6

Conduct of Garage Sale at Any Location Other than a Single-Family Residence Prohibited: Time Limitation on Garage Sales: Except for the conduct or operation of a garage sale as defined by this regulation, by a non-profit group or groups for charitable purposes, in any commercial zone, the conduct or operation of a garage sale at any location other than a single- family residence is prohibited. The conduct or operation of a garage sale for more than six days within a 12-month period is considered a commercial operation and is prohibited. Garage sales in single-family residential zones shall begin no earlier than 7:00 a.m. and conclude no later than 2:00 p.m. (Monday through Sunday). A permit from the PRVWSD Permit Department for the conduct or operation of ANY garage sale within the PRVWSD shall be required.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 5.7 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100.00).

3986776.1/00520.00006 Part 204 Chapter 6: Improvements. Rule 6.1 Restrictions. It shall be unlawful for any person, firm or corporation without the prior written approval of the District and of the United States Army Corps of Engineers to construct or otherwise place over or in the Reservoir any dock, pier, boat slip, or any other improvement.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 6.2 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100.00).

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 7 Water and Sewer Service. Rule 7.1 Connection Required. It shall be unlawful for any person, firm or corporation to occupy or permit occupancy of any residence or business or commercial structure located within the Reservoir Project Area and serviced by water and sewer lines of the District unless such residence or structure is connected to the water distribution system of the District.

33 Miss. Admin. Code Pt. 204, R. 7.2 Liability for Payment

The owner of any premises receiving service of the utility system of the District, the occupant of such premises and the user of the services shall be jointly and severally liable for the payment of the cost of such utility service to such premises. All services are rendered to the premises by the District only upon the condition that such owner, lessee, occupant and/or user shall be jointly and severally liable therefor to the District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 7.3 Rates

The monthly rates and amounts required to be paid for utility service shall be set by the Board of the District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 7.4 Non-payment

Service will be discontinued to any patron of the District's utility system who fails, neglects or refuses to pay the amount billed within thirty-five (35) days of the billing date thereof. Water will not be supplied to any premises either directly or indirectly when the patron is in arrears at those premises.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 7.5 Marina Pump-Out Stations

No boat slip/pier shall be constructed or used for the purpose of mooring watercraft equipped with holding tanks unless sewer pump out facilities are provided to all slips. Such pump out facilities shall be vacuum type facilities approved by the District which serve from one to four slips from one common control point. Transient-type facilities may have the option of incorporating stationary pump-out unit(s). Additionally, all

3986776.1/00520.00006 marinas must provide at least one "porta-potty" dump station. All existing boat slips/piers within public or private marinas on the Reservoir which moor water-craft equipped with a holding tank shall be modified to provide on site pump out facilities as described above on or before May 1, 2010.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 7.6 Penalty

Each violation of Part 204 Rule 7.5 shall constitute a misdemeanor and shall be punishable by a fine of One Thousand Dollars ($1,000.00). Additionally, any marina which fails to comply with Part 204 Rule 7.5 of this regulation shall immediately cease to moor any water-craft equipped with a holding tank until the marina is in compliance with this regulation.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 8 Excessive Noise Prohibited. Rule 8.1 Loud, Disturbing and Unnecessary Noise Generally. It shall be unlawful for any Person to create any unreasonably loud, disturbing and unnecessary noise within any portion of the Reservoir Project Area or for any Person to cause any noise of such character, intensity or duration as to be detrimental to the life or health of any individual or to cause any noise which creates a disturbance of the public peace and welfare or is a public nuisance.

33 Miss. Admin. Code Pt. 204, R. 8.2 Use of Loudspeakers and Amplifiers

It shall be unlawful to operate or maintain any loudspeaker or amplifying device on the outside of any building or structure within the Reservoir Project Area whereby music, speaking or noises of any type are or may be transmitted outside the confines of a fully enclosed stone or wood structure; provided, however, that the General Manager of the District may, on being shown to his satisfaction that the operation thereof will not create an undue disturbance, grant a temporary permit to persons desiring to use loudspeakers or other electrical devices for parades or for religious, athletic, cultural, social or political gatherings to be held in any public park or public recreation area or on the waters of the Reservoir.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 8.3 Playing of Radios, Television Sets, Etc

It shall be unlawful for any Person to play any radio, television set, phonograph, tape deck, compact disc player or other sound system or any musical instrument in such a manner or with such volume at any time or place, so as to annoy or disturb the quiet, comfort, repose of persons in any office or in any dwelling, hotel or other type of residence.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 8.4 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine of not more than One Hundred Dollars ($100).

3986776.1/00520.00006

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 9 Sale and Use of Fireworks Within Reservoir Project Area. Rule 9.1 Definition of Firework. "Firework" as used in this Chapter shall mean and include any device for producing a striking display or noise by combustion of explosive or flammable compositions.

33 Miss. Admin. Code Pt. 204, R. 9.2 Prohibition of Sale of Firework

It shall be unlawful within the Reservoir Project Area to sell or offer for sale any firework from any shed, tent, stand, platform, truck, van or other fixed or movable location, or to advertise any firework for sale.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 9.3 Prohibition of Discharge of Firework

It shall be unlawful for any person, firm or corporation to ignite, burn, discharge or otherwise shoot off any firework at, upon or within any public park, public recreation area, public boat launching ramp or facility (including a neighborhood ramp), public fishing pier, public parking area, public building or ground, or public street or right of way within the Reservoir Project Area, or upon, or at any dike, levee, groin, jetty or mole appurtenant to the waters within the Reservoir Project Area, or at, upon or within any parking area for motor vehicles maintained for patrons of commercial or recreational establishments on premises held under lease from the District; provided that, notwithstanding the foregoing, a commercial lessee of the District or a licensee of a public park or public recreation area of the District, but only with the prior written approval of the Parks Policy Committee of the Board of Directors of the District specifying such conditions as may be necessary to assure the safety of the general public, may ignite, burn, discharge or otherwise shoot off fireworks at, upon or within such of the aforesaid locations within the Reservoir Project Area as may be designated in such written approval, in conjunction with a public holiday celebration or special public event. Written application for such approval must be filed with the District not less than 45 days prior to the proposed event; no applicant shall receive approval for more than two events during any calendar year.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 9.4 Penalty

Each violation of this Section shall constitute a misdemeanor and shall be punishable by a fine of not more than $500.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 10 Execution of Commercial and Residential Leases Within Reservoir Project Area. Rule 10.1 Form of Lease. All leasing of property within the Reservoir Project Area by Pearl River Valley Water Supply District for any commercial, residential or other purpose shall be in substance as authorized by the Board of the District and shall be evidenced by a lease agreement in form and substance approved by the attorney for the District and the staff engineer.

33 Miss. Admin. Code Pt. 204, R. 10.2 Assignments of Leasehold or Leasehold Interest in Lot or Parcel

All assignments or other transfers of leasehold agreements, or leasehold interests in lots or parcels in a leasehold estate, shall be in form approved by the District and its attorney, and the District's consent or approval to such assignment or other transfer must be obtained and be noted thereon.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 10.3 Transfer Fee

No such lease agreement shall be executed and no such assignment or other transfer of a leasehold agreement or leasehold interest in a lot or parcel shall be executed, approved, consented to or processed by the District unless the lessee or assignor shall pay, or cause to be paid, to the District a fee in the sum of $250, or such a greater amount as shall be authorized by the Board of Directors of the District by resolution made a part of the minutes of the Board and filed with the Secretary of the Board.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 11 Traffic Impact Analysis Standards. Introduction. The purpose of this regulation is to establish a uniform policy for conducting a traffic impact analysis where the anticipated traffic movements from a commercial, residential, recreational or other development are expected to impact the operations or safety aspects of streets and/or traffic control devices adjacent to the development. Rule 11.1 Pre-Application Development. The lessee of the proposed development (the "Developer"), as part of the pre-application process, shall meet with the General Manager of the District or his designee, who will make a preliminary assessment of the traffic impact of the proposed development. This review shall include, but not be limited to, consideration of traffic control devices, site access, on-site circulation and turn lanes.

33 Miss. Admin. Code Pt. 204, R. 11.2 Traffic Impact Assessment

If the proposed development meets or exceeds the following predictor variables at full build-out or usage, then traffic impact analysis will be required: Land Use Type ITE Code Quantitative Threshold Residential 210, 220, 222, 230, 270 50+ Dwelling Units Retail 814, 815, 820 15,000+ Square Feet Office 710, 714, 715, 750, 770 30,000+ Square Feet Bldg or 3+ acres land

3986776.1/00520.00006 Industrial 110, 120, 130, 140 40,000+ Square Feet Bldg or 9+ acres land Educational 520, 530, 550 20,000+ Square Feet Bldg. or 250+ Students Lodging 310, 312, 320 100+ Occupied Rooms Medical 610 30,000+ Square Feet Bldg. For land use types not identified in this table, the threshold values of 50 peak-hour, peak-direction trips will apply as determined by information contained in the latest edition of the ITE Trip Generation Manual, or, if no longer published, any similar substitute manual designated by the General Manager. The General Manager or his designee may also require a traffic impact analysis if the traffic movements to and from the development could cause operational problems or safety concerns adjacent to the site. The above threshold values shall apply to all phases of a phased project if the sum of the phases equals or exceeds the threshold values.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 11.3 Preparation of Traffic Impact Analysis

The Developer will be required to submit a traffic impact analysis prepared by a professional engineer licensed in the State of Mississippi and who has expertise in the area of traffic engineering and traffic impact analysis.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 11.4 Preliminary Plan Required

Following the execution of the lease, the Developer shall submit to the General Manager or his designee along with the preliminary plans, two copies of the traffic impact analysis report conforming to the requirements below.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 12 Traffic Impact Analysis Standards. Rule 12.1 Form. The traffic impact analysis report shall be submitted on 8½" x 11" paper with attached drawings to be not greater than 11" x 17". If, for clarity purposes, additional larger plan-sized sheets are also necessary, they may be submitted with the report.

33 Miss. Admin. Code Pt. 204, R. 12.2 Type and Extent of Traffic Impact Analysis

There will be basically two types of traffic impact analyses that are addressed below. They are 1) a moderate intensity analysis, and 2) a high intensity analysis. The analysis for high intensity traffic generation will require the same information as noted below for a moderate intensity analysis, plus additional study items addressed in Part 204 Rule 13.1. The General Manager or his designee may waive any or all of the items to be included in the traffic analysis report.

3986776.1/00520.00006

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 12.3 Moderate Intensity Traffic Impact Analysis

As a minimum, the following items should be addressed in the moderate intensity traffic impact analysis report: (a) The type of development and anticipated use. (b) Map of site in relationship to street network. (c) Estimated date of build-out or full use (phased development potential). (d) The completed site plan with site access and adjacent roadway characteristics, geometrics, and traffic controls. (e) Existing traffic, both ADT and peak hour movements on adjacent roads and at adjacent intersections. (f) Existing level of service of adjacent roadways and intersections, including site access. (g) Trip generation, trip distribution and traffic assignments (state assumptions). (h) Horizon year level of service with and without proposed development, including background growth rate determination and note any committed projects. (i) Review any potential safety or operational concerns and address proposed improvements to reduce or eliminate problems. (j) Recommendations for site access or adjacent roadway improvements and traffic control modifications.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 16 Cell Tower Regulation. Introduction. From time to time it is necessary for telecommunications companies (the "Companies") to construct, erect and locate cell phone towers and other facilities (the "Facilities") on property owned by the District in order to provide service to their users. It is necessary for the District to control the location of such Facilities and the consideration paid by the Companies for the right to locate in order to regulate activities on lands owned by the District and to protect the water resources and the residential, commercial, recreational and other rights and interests of the District and its leaseholders in such lands and property.

33 Miss. Admin. Code Pt. 204, R. 16.2 Payment for Use

No easement, right-of-way, permit, lease or other instrument authorizing the location and construction or erection of Facilities on the property of the District shall be executed and delivered to the Companies except for fair market value consideration paid for the interest conveyed and containing such terms and provisions determined by the Board as reasonable and necessary to protect the water resources and the residential, commercial, recreational and other rights of the District and its leaseholders in such lands and property.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 16.3 Determination of Value

The Board shall determine the fair market value of any property interest to be conveyed to the Companies and negotiate with the companies to recover such fair market value. The Board may use appraisals, reports or other documents in determining fair market value, but is not required to do so. In instances where Facilities are to be located on lands in which a third party (or parties) has a leasehold interest, the Board shall determine what portion of the consideration paid for the right to locate Facilities on the property shall be received by the leaseholder. The leaseholder shall have the right to submit appraisals and other documents or written evidence concerning the consideration paid to the leaseholder.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 17 Rental Property Registration and Licensing Ordinance. Rule 17.1 Purpose. The purpose of this Rental Property Registration and Licensing Ordinance ("RPRO") is to preserve and promote the public health, safety, and general welfare of the residents, and the public generally, within the body of land (the "Reservoir Project Area") owned by the District, and to provide an efficient system to ensure that residential rental property is properly maintained. The District recognizes that the most efficient system to provide for inspections of residential rental property is the adoption and implementation of this regulation creating a program requiring the registration and licensing of rental properties.

33 Miss. Admin. Code Pt. 204, R. 17.2 Definitions

(a) Apartment: A Dwelling Unit located in a Multiple-Household Dwelling for occupancy by one (1) Household, either rented or leased to the occupants.

3986776.1/00520.00006 (b) Boarding House: A building other than a hotel or motel where, for compensation and by prearrangement for definite periods, meals and/or lodging are provided for two (2) or more persons (other than legally related family members) on a weekly or monthly basis. (c) District Building Official: The District official designated by the Board of Directors of the District to administer and enforce RPRO, and such representatives as may be appointed by such District official. (d) Certificate of Compliance: A certificate issued pursuant to RPRO by the District Building Official to ensure that a Dwelling Unit is in conformance with the provisions of RPRO. (e) District: The Pearl River Valley Water Supply District, an agency of the State of Mississippi. (f) Condominium: An estate in real property consisting of an undivided interest in common of a portion of a parcel of real property, together with a separate interest in space in a residential building on such real property. (g) Duplex: A detached residential building designed to be occupied by two (2) or more Households living independently of each other. (h) Dwelling: A building, or portion thereof, which is designed and used for human habitation. (i) Dwelling, Single-Household: A detached residential building designed for occupancy by one (1) Household. (j) Dwelling, Multiple-Household: A building or group of buildings, or portion thereof, that is occupied by two (2) or more Households occupying each unit independently of each other. The term "Multiple-Household Dwelling" shall be deemed to include Duplexes, Townhouses and buildings containing Apartments or Condominiums. The provisions of RPRO shall apply both to specific Rental Units and the Owners of such Rental Units, as well as to the home owners' association or similar entity that owns, operates, manages, or maintains the Premises or Dwelling, or any portion thereof. (k) Dwelling Unit: A room or group of rooms occupied or intended to be occupied as separate living quarters for one (1) Household. (l) Household: One (1) person living alone, or two (2) or more persons living together as a single housekeeping unit, whether related to each other legally or not. The term "Household" shall be deemed to include domestic employees employed by such Household when such employees are on-premise residents. The term "Household" shall also be deemed to include groups occupying a Boarding House, Rooming House or similar Dwelling for group use that is not exempt under the provisions of RPRO.

3986776.1/00520.00006 (m) Owner: Any Person that individually, jointly, or severally with others: (1) has legal or equitable leasehold title to any Premises, Dwelling, Dwelling Unit, or Rental Unit, with or without accompanying actual possession thereof; or (2) has charge, care, or control of any Premises, Dwelling, Dwelling Unit, or Rental Unit as agent of the Owner or as receiver, executor, administrator, trustee, or guardian of the estate of the beneficial Owner. (n) Person: An individual, firm, association, organization, partnership, trust, company, corporation, or other legal entity. The term "Person" shall be deemed to include any agent, assignee, receiver, executor, administrator, trustee, or guardian thereof. (o) Premises: A lot, plot, or parcel of land upon which a Dwelling is located, including any other structures thereon. (p) Rental License: A license issued pursuant to RPRO by the District Building Official allowing a Person to own, operate, manage or maintain a Single- Household or Multiple-Household Dwelling located in the District, which such Dwelling contains one (1) or more Rental Units. (q) Rental Unit: A Dwelling Unit that is currently rented or leased to one (1) or more Tenants, at least one (1) of whom is not legally related to the Owner of such Dwelling Unit. (r) Rooming House: A building where lodging only is provided for compensation to two (2) or more persons. (s) Same Ownership: Ownership by the same individual, firm. association, organization, partnership, trust, company, corporation, or other legal entity; or ownership by different individuals, firms, associations, organizations, partnerships, trusts, companies, corporations, or other legal entities; in which an associate, member, partner, trustee. or shareholder or a member of his/her family, owns a legal or equitable interest in each firm, association, organization, partnership, trust, company, corporation, or other legal entity. (t) Tenant: Any individual who occupies or has leasehold interest in a Rental Unit under a lease or rental agreement, whether oral or written, express or implied. (u) Townhouse: A Multiple-Household Dwelling constructed as a series or group of attached Dwelling Units with property lines separating each unit.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.3 Applicability

The regulations contained in RPRO shall apply to all residential rental properties within the Reservoir Project Area except as otherwise provided herein.

3986776.1/00520.00006 Rule 17.4 Rental License. (a) Rental License Required. It shall be unlawful for any person to lease, operate, manage, or maintain a Single-Household or Multiple-Household Dwelling located within the Reservoir Project Area, which such Dwelling contains one (1) or more Rental Units, without a current and valid Rental License having been issued for such Dwelling. Any Person leasing, operating, managing, or maintaining one or more than one (1) such Dwelling shall obtain a Rental License for each separate location. (b) Application. A written application for a Rental License, signed by the Owner or his/her agent, shall be filed with the District Building Official, upon a form provided by the District Building Official for such purpose. The following information shall be required in the application: (i) The street address of the Dwelling. (ii) The name, physical and mailing address and telephone number and, if available, telefax number, and email address of each Owner within the Same Ownership. (iii) The name, address and telephone number, and, if available, telefax number and email address of an agent who is designated to receive notices and service of process and is authorized to grant consent for the District Building Inspector to inspect the Premises, Dwelling, Dwelling Units and Rental Units. (iv) A license fee of one hundred dollars ($100) per Dwelling Unit. (v) The number and type (by bedroom) of Dwelling Units. (vi) If the written application is signed by an agent on behalf of the Owner, written authorization must be provided documenting the agent's authority. (c) Duration. A Rental License shall be valid for a period of one (1) year from its issuance date. An application for renewal shall be filed within thirty (30) days prior to the expiration date. (d) Updates required. If, subsequent to the issuance of a Rental License, the Dwelling for which such Rental License was issued is modified with the effect of adding or removing Dwelling Units, such Rental License shall be updated within thirty (30) days after such modification to reflect the new number of Dwelling Units. (e) Display. A Rental License issued pursuant to RPRO for a Multiple- Household Dwelling shall be displayed in a conspicuous place at the rental unit, to which all Tenants have access. (f) Application to existing Rental Units. Persons owning, operating, managing, or maintaining a Single-Household or Multiple-Household Dwelling located within the Reservoir Project Area, which such Dwelling contains one (1) or more Rental

3986776.1/00520.00006 Units as of the Effective Date of this Regulation, shall apply for a Rental License no later than ninety (90) days after the Effective Date of this Regulation.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.5 Compliance Standards

Obligation to comply. The Owner of a Rental Unit in a Single-Household or Multiple-Household Dwelling located in the District shall be responsible for complying with each of the following: (a) The provisions of RPRO. (b) All regulations of the District however titled or designated. (c) Building codes of the District in effect at the time building permits were issued for such Dwelling, including the building, electrical, plumbing, and mechanical codes, subject to adoption of retroactive regulations by the District. (d) State and federal housing laws and administrative regulations. (e) Judicial and administrative decrees enforcing any of the provisions of RPRO or other regulations of the District; and/or state and federal housing laws and administrative regulations.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.6 Inspection and Certification

(a) Certificate of Compliance required. It shall be unlawful for any Person to lease, operate, manage, or maintain a Rental Unit in a Single-Household or Multiple- Household Dwelling located within the Reservoir Project Area without a current and valid Certificate of Compliance having been issued for such Rental Unit. Any person leasing, operating, managing, or maintaining more than one (1) such Rental Unit shall obtain a Certificate of Compliance for each separate Rental Unit. (b) Owner consent to inspection. The Owner, as a condition to the issuance of the Rental License, shall consent and agree to permit and allow the District Building Official to make the following inspections of the Premises, Dwelling, Dwelling Units, and Rental Units when and as needed to ensure compliance with the provisions of RPRO: (i) Access to inspect all portions of the Premises and Dwelling, including common areas, storage areas, community buildings, equipment rooms, parking areas, and all other portion facilities. (ii) Access to inspect all unoccupied Dwelling Units.

3986776.1/00520.00006 (iii) Access to inspect any Rental Unit when a complaint is filed by a Tenant of such Rental Unit or any District department to the effect that such Rental Unit may be existing in violation of any provision of RPRO. (iv) Access to inspect any Rental Unit upon termination of a lease or rental agreement, reletting of such Rental Unit, or transfer of title to the Dwelling or any part of the Dwelling containing such Rental Unit. (v) A one hundred dollar ($100.00) fee shall be paid for each inspection and one follow-up inspection. If a subsequent inspection is required within twelve (12) months of the annual inspection, then the inspection cost shall be Fifty Dollars ($50.00). A Fifty Dollar ($50.00) fee shall be paid for any unrepaired items causing a reinspection. (c) Inspections authorized. The District Building Official is hereby authorized to make inspections of Premises, Dwellings, Dwelling Units, and Rental Units to determine the condition of such Premises, Dwellings, Dwelling Units, and Rental Units, in order that he/she may perform his/her duties of safeguarding the safety, health, and welfare of Tenants and of the general public. (i) Right of entry. For the purpose of making the inspections and repairs required and authorized by the provisions of RPRO, the District Building Official is hereby authorized to enter, inspect, repair, alter, and improve all Premises, Dwellings, Dwelling Units, and Rental Units in accordance with the provisions of RPRO. (ii) Owners, by reason of the terms of the Rental License accepted by Owner, shall be deemed to have voluntarily consented and authorized the District Building Official to enter their Premises, Dwellings, Dwelling Units, and Rental Units at reasonable times for the purpose of effecting such inspection as is necessary to comply with the provisions of RPRO. (iii) Tenants, by reason of the terms of the Rental License, and the terms of their leases or rental agreements, shall be deemed to have consented and to have authorized the District Building Official to have access to their Rental Units at reasonable times for the purpose of effecting such inspection as is necessary to comply with the provisions of RPRO. (iv) Should a Tenant or Owner refuse entry, the District Building Official shall be authorized by virtue of the terms of the Rental License to secure a judicial warrant authorizing entry as authorized in this Regulation. (d) Duration. A Certificate of Compliance shall expire upon the termination of the rental agreement or lease governing the Rental Unit for which such Certificate of Compliance was issued. Prior to reletting the unit, the Owner shall notify the District of such intent to relet and obtain a new Certificate of Compliance. The District Building Official shall have ten (10) days following such notification to complete such inspection. (e) Application to existing Rental Units. Persons owning, operating, managing, or maintaining a Rental Unit in a Single-Household or Multiple-Household

3986776.1/00520.00006 Dwelling located in the District as of the date this Regulation is adopted shall notify the District of the existence of such Rental Unit no later than ninety (90) days after the Effective Date of this Regulation.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.7 Notice and Orders

(a) Notice of inspection. The District Building Official shall provide reasonable advance notice to the Owner or agent as to the date and time of inspection. If such notice indicates that one (1) or more Rental Units will be inspected, the Owner or agent shall provide a copy of such notice to each affected Tenant. (b) Notice of violation; orders to comply. Whenever the District Building Official determines that there has been a violation of the provisions of RPRO or has grounds to believe that a violation may have occurred based on a complaint filed by a Tenant or any District department to that effect, he/she shall give fifteen (15) days' notice of such alleged violation and orders to comply to the Owner or agent. Such orders shall be in writing and include the following: (i) A description of each offending Rental Unit, Dwelling Unit, and portion of the Dwelling and Premises sufficient for identification. (ii) A statement of the reasons for which the notice is being issued. (iii) Correction orders allowing a reasonable time for completion of the repairs, alterations, or improvements required to bring each Rental Unit. Dwelling Unit, Dwelling, and Premises into compliance with the provisions of RPRO.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.8 Transfer of Ownership

(a) Notification to District; new Owner's obligations. If an Owner transfers title or otherwise conveys his/her interest in a Dwelling for which a Rental License is currently issued, the new Owner shall notify the District within thirty (30) days after such sale or conveyance and provide the District with all information required of the original Owner on the application for such Rental License. The new Owner shall also designate a new registered agent to receive notices and service of process and to grant consent for the District to inspect the Premises, Dwelling, Dwelling Units, and Rental Units. (b) Disclosure of violations and uncured orders. It shall be unlawful for the Owner of any Dwelling who has received a notice of violation and orders to comply pertaining to such Dwelling, which violation remains uncured, to transfer title to or otherwise convey his/her interest in such Dwelling unless he/she has furnished the vendee or grantee a copy of such notice and orders to comply and has given the District Building Official a notarized statement from the vendee or grantee acknowledging the receipt of the same and accepting legal responsibility for curing the violation.

3986776.1/00520.00006

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.9 Suspension of Rental License and Compliance Certificate

(a) Cause. An Owner's Rental License for a Dwelling, and Certificate of Compliance for a Rental Unit, shall be suspended if, having received written notice of a violation, the Owner fails to comply with the correction orders within the time set for correction by the District Building Official and takes no appeal. (b) Effect of suspension. Notwithstanding any other provision of RPRO, it shall not be unlawful for any Person to continue leasing, operating, managing, or maintaining a Dwelling or Rental Unit whose Rental License or Certificate of Compliance, respectively, has been suspended. However, such Person shall not permit any new occupancies of vacant, or thereafter vacant Dwelling Units in such Dwelling, until such time as the Rental License and Certificate of Compliance are restored. (c) Disconnection of utilities. The District Building Official may notify all public utility companies serving the Dwelling or Rental Unit that the Rental License and Certificate of Compliance have been suspended for violation of RPRO, and request that all public utility services be discontinued for such Dwelling or Rental Unit until notice of compliance is received. Any public utility company may refuse to connect any Dwelling or rental Unit until a Rental License or Certificate of Compliance is issued. (d) Restoration. A suspended Rental License and Certificate of Compliance shall be restored upon compliance with the correction orders and request for restoration by the Owner.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.10 Rental License Fee

No Rental License shall be issued until all requirements of RPRO have been satisfied and payment made for such Rental License. The fee for a Rental License shall be one hundred dollars ($100) per Dwelling Unit, per year, and one hundred dollars ($100) per Dwelling as a whole, per year, and is non-refundable. Should payment be made by check or other instrument that is not honored, the Rental License for which such payment was made shall become null and void without additional action by the District. The fee shall be paid at the time the initial application is filed and at the time each renewal is filed. The fee for issuing a replacement or duplicate Rental License shall be one hundred dollars ($100). When a Rental License is updated to reflect the addition of Dwelling Units to a Dwelling, an additional fee for such Dwelling Units shall be paid, pro-rated for the remaining term of such Rental License.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.11 Appeals

An Owner or Tenant who disagrees with a determination or order of the District Building Official under RPRO, which determination or order concerns his/her Premises, Dwelling, Dwelling Unit, or Rental Unit, may appeal such determination or order to the Executive Committee of the Board of Directors of the District. The appeal shall be filed within ten (10) days after notification of the decision or order is given to the aggrieved party. The

3986776.1/00520.00006 appeal shall be in writing on a form provided by the District for such purpose, and shall state the reasons why the appellant disagrees with such determination or order.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.12 Exemptions

The provisions of RPRO shall not apply to: (a) An Owner-occupied Dwelling Unit, where such Owner allows joint occupancy of the Dwelling Unit, unless the portion of such unit that is rented or leased to the Tenant constitutes a separate Dwelling Unit as evidenced by separate kitchen facilities. (b) Housing that is owned, operated, managed, or maintained by a government agency or authority. (c) Housing that is exempted from municipal regulation by state or federal law or administrative regulation.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.13 Violations

Any Person who violates any provision of RPRO shall be subject to a fine not to exceed One Thousand Dollars ($1,000.00) or by imprisonment not to exceed fifteen (15) days, or both the amount of the fine and the term of the imprisonment, within the maximum limit set by Section 51-9-127 of the Mississippi Code of 1972, as amended, to be determined by the court.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.14 No Warranty by District

By adopting and undertaking to enforce RPRO, neither the District nor its Board of Directors, agents, or employees warrant or guarantee the safety, fitness, nor suitability of any Premises, Dwelling, Dwelling Unit, or Rental Unit located within the Reservoir Project Area. Owners and Tenants should take whatever lawful steps they deem appropriate to protect their interests, property, health, safety, and welfare.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.15 Severability

Every section, subsection, or provision of RPRO is declared separable from every other section, subsection, or provision to the extent that if any section, subsection, or provision of RPRO shall be held invalid, such holding shall not invalidate any other section, subsection, or provision thereof.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.16 Enforcement

(a) Discontinuance of water service. The District Building Official may notify the Owner and may post notice at the Rental Unit, Dwelling Unit, Dwelling or Premises that potable water service will be discontinued within no less than sixty days

3986776.1/00520.00006 from the date of the notification unless the violation of this regulation is corrected. In order to reinstate water service, the violation must be cured in accordance with the correction orders and the applicable re-connect fee paid, together with any past due water bills. (b) The District may enforce this Regulation in a court of competent jurisdiction and seek a fine not to exceed One Thousand Dollars ($1,000.00) or by imprisonment not to exceed fifteen (15) days, or both the fine and term of imprisonment.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 204, R. 17.17 Effective Date

This Regulation shall take effect on February 27, 2009.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 205 Regulations Pertaining to Electrical and Standard Codes/Construction and Occupancy Permits/Use of Architects and Engineers

33 Miss. Admin. Code Pt. 205, R. 1.1 International Building Codes

The District adopts the 2015 International Building Code®, the 2015 International Residential Building Code®, the 2015 International Plumbing Code®, the 2015 International Property Maintenance Code®, the 2015 International Mechanical Code®, the NFP 70, the 2015 International Energy Conservation Code®, the 2015 International Swimming Pool & Spa Code®, the 2015 International Fuel & Gas Codes®, and the 2014 National Electrical Code® (the "Codes") as regulations of the District. With regard to Section 101.1 in the above listed codes, “name of jurisdiction” shall be replaced with “Pearl River Valley Water Supply District, an agency of the State of Mississippi.” A copy of the Codes shall be maintained at all times in the office of the District's Building Inspector. The following additions, deletions, and modifications shall be incorporated with the adoption of the International Building Code, 2015 Edition: A. Section R107 Submittal Documents: To the end of Section R107.1, add “all foundation plans must be stamped and signed by a design professional.” B. Section R111 Certificate of Occupancy: Section R111.2, delete #11. The following additions, deletions, and modifications shall be incorporated with the adoption of the International Residential Code: A. Section R105 Permits: Section R105.2 – Work Exempt from Permit, delete #2 and #3. B. Section R106 Construction Documents: Add to the end of Section R106.1, “All foundation plans must be stamped and signed by a design professional. C. Section R110 Certificate of Occupancy: Section R110.3 – Certificate Issued, delete #8 D. Section P2904 – Dwelling Unit Fire Sprinklers: Delete entire section.

3986788.1/00520.00006 E. Section R303 – Light, Ventilation, and Heating: Section R303.3 – Bathrooms, Exception: Add “or to a ventilated attic.”

The fees for activities and services performed by the Building Inspector or his staff in carrying out the responsibilities under this code shall be as indicated, from time to time, by the Board of Directors of the District and contained in its official public minutes. The term "code official" as used herein shall mean the District's Building Inspector. Anyone aggrieved by any action or decision of the Building Inspector or a notice or order issued under this code shall have the right to obtain a Declaratory Opinion pursuant to Part 201, Chapter 4 of the District's regulations. "Owner" shall mean any person, agent, operator, firm, trust or other legal or equitable organization having a legal or equitable interest in the property; or recorded in the official records of the state, county or District office as holding leasehold title to the property; or otherwise having control of the property, including the guardian of the estate of any such person, and the executor or administrator of the estate of such person. The term shall not include the District, the fee owner and lessor of all of the property.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

33 Miss. Admin. Code Pt. 205, R. 1.2 Permit Required

No person shall within the Reservoir Project Area construct, expand or renovate any building or other structure intended for occupancy by humans, including but not limited to assembly occupancy, business occupancy, commercial occupancy, educational occupancy, institutional occupancy, recreational occupancy and single-family or multi-family residential occupancy, without first having applied for and obtained a Construction Permit from the District. No person shall occupy or use any such building or other structure within the Reservoir Project Area without first having applied for and obtained a Use and Occupancy permit from the District.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

33 Miss. Admin. Code Pt. 205, R. 1.3 Application Fee

An application for a Construction Permit shall be accompanied by payment of an application fee in such amount as may be from time to time prescribed by the Board of Directors of the District. No Use and Occupancy Permit shall be issued unless all inspection fees, including such fees for periodic and final inspection as may be from time to time prescribed by the Board of Directors of the District, shall be paid in full and final inspection approval given by the General Manager or his designee.

3986788.1/00520.00006 Rule 1.4 Fees Doubled. Where work or occupancy for which a permit is required by this Regulation is started or proceeded prior to obtaining said permit, the fees specified shall be doubled, but the payment of such double fee shall not relieve any person from complying fully with the requirements of this Regulation in the execution of the work or from any other penalties prescribed by regulation or in the policies of the District.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

33 Miss. Admin. Code Pt. 205, R. 1.5 Specifications Required

Two copies of specifications, and of drawings drawn to scale with sufficient clarity in detail to indicate the nature and character of the work, shall accompany each application for a Construction Permit. Such drawings and specifications shall contain information in the form of notes or otherwise as to the quality of materials where quality is essential to conformity to all applicable Codes. Such information shall be specific and the General Manager or his designee may require details, computations, stress diagrams and other data necessary to describe the installation and basis of calculations.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

33 Miss. Admin. Code Pt. 205, R. 1.6 Signature Required

All drawings, specifications and accompanying data shall bear the name and address of the designer. If the building or structure will be used for assembly occupancy, business occupancy, educational occupancy or institutional occupancy (as those terms are defined in the Standard Building Code), the designer shall be an architect or engineer legally registered under the laws of the State of Mississippi regulating the practice of architecture or engineering, and the designer shall affix his official seal to said drawings and specifications and accompanying data.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

33 Miss. Admin. Code Pt. 205, R. 1.7 Fire Resistance Integrity

Plans for all buildings shall indicate how required structural and fire resistance integrity will be maintained where a penetration of a required fire resistant wall, floor or partition will be made for electrical, mechanical, plumbing and communication conduits, pipes and systems and also shall indicate in sufficient detail how the fire integrity will be maintained where required fire resistant floors intersect the exterior walls.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

33 Miss. Admin. Code Pt. 205, R. 1.8 Site Plan

Drawings shall show the location of the proposed building or structure and of every existing building or structure on the site or lot. The District may require a boundary line survey prepared by a qualified surveyor.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

33 Miss. Admin. Code Pt. 205, R. 1.9 Penalty

Each violation of this regulation shall constitute a misdemeanor and shall be punishable by a fine not less than $100.00 nor more than $1,000.00 for each such offense.

History

Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

Part 206 Regulations Pertaining to Property Maintenance

33 Miss. Admin. Code Pt. 206 Regulations Pertaining to Property Maintenance

1 3986801.1/00520.00006 Title 33: River and Waters

Part 206: Regulations Pertaining to Property Maintenance Part 206 Chapter 1: Property Maintenance Regulation. Chapter 1: Property Maintenance Regulation. Rule 1.1 2015 International Property Maintenance Code®. The District hereby adopts the 2015 International Property Maintenance Code® published by the International Code Council, Inc. (the "Maintenance Code") as a regulation of the District in all respects, except as hereinafter modified, amended, substituted and changed. A copy of the Maintenance Code shall be maintained at all times in the office of the District's Building Inspector. With regard to this section in the above listed code, “name of jurisdiction” shall be replaced with “Pearl River Valley Water Supply District, an agency of the State of Mississippi.” The provisions of this Maintenance Code shall supersede and control over any restrictive or protective covenants applicable to the subject property. The following amendments to the Maintenance Code are hereby adopted: A. Amend Section 103 – Department of Property Maintenance Inspection Delete Sections 103.1, 103.2, 103.3. Amend Section 103.5. Fees as follows: The fees for activities and services performed by the Building Inspector or his staff in carrying out the responsibilities under this code shall be as indicated, from time to time, by the Board of Directors of the District and contained in its official public minutes. B. Amend Section 104 – Duties and Powers of the Code Official Add to Section 104.1: The term "code official" as used herein shall mean the District's Building Inspector. C. Amend Section 106 – Violations Delete the first sentence of Section 106.3 and add the following: Any person failing to comply with a notice of violation or order served in accordance with Section 107 shall be subject to a fine of not more than One Thousand Dollars or by imprisonment not to exceed fifteen days, or both, as determined by the court. D. Amend Section 108.2 Closing of vacant structures. The last sentence is amended as follows: Upon failure of the owner to close up the premises within the time specified in the order, the code official may cause the premises

2 3986801.1/00520.00006 to be closed and secured through any available public agency or by contract or arrangement by private persons. E. Amend Section 110.3 Failure to Comply If the owner of premises fails to comply with a demolition order within the time prescribed, the code official shall cause the structure to be demolished and removed, either through an available public agency or by contract or arrangement with private persons. F. Amend Section 111 – Means of Appeal Section 111 is deleted in its entirety. Anyone aggrieved by any action or decision of the Building Inspector or a notice or order issued under this code shall have the right to obtain a Declaratory Opinion pursuant to Part 201 Chapter 4 of the District's regulations. G. Amend Definition of "Owner" "Owner" shall mean any person, agent, operator, firm, trust or other legal or equitable organization having a legal or equitable interest in the property; or recorded in the official records of the state, county or District office as holding leasehold title to the property; or otherwise having control of the property, including the guardian of the estate of any such person, and the executor or administrator of the estate of such person. The term shall not include the District, the fee owner and lessor of all of the property. H. Amend Section 301 – General

Add Section 301.4 – Nuisance. The existence of any condition(s) on buildings, accessory structures, or property, which has an adverse impact on the safety, health, environment, aesthetics or property values of properties in the near vicinity as a result of being visible from outside the property, is declared to be a nuisance. Any property that is damaged or destroyed by fire or acts of nature shall be demolished or repairs must begin within three months of the damage or destruction.
Add Section 301.5 – Storage. It shall be unlawful for any owner or tenant to store any items such as, but not limited to, washers, dryers, refrigerators, ovens, freezers, lawn mowers, string trimmers, edgers, tillers, rakes, shovels, other gardening supplies, toys, recliners, ice chest, boxes, crates, storage bins, storage tubs, file cabinets, grills, kennels, barrels, drums, cans, bottles, wood, metal, plastic, rags, paper, tires, auto parts; unused, inoperable, worn out or discarded appliances or other household items; scrap iron, tin, and other metal not neatly piled, or anything whatsoever that is or may become a hazard to public health and safety, or that may harbor insect, rodent or vermin infestation on a porch, breezeway, balcony, front yard or side yard if the porch, breezeway, balcony, front yard or side yard is visible from any street.

3 3986801.1/00520.00006 3. Add Section 301.6 – Storage Units. (a) A portable home storage unit (“POD”) is defined as a portable shed or storage container, storage unit, shed-like container or other portable structure that can or may be used for the storage of personal property of any kind and which is located for such purposes outside an enclosed building other than an accessory structure. It shall be unlawful for any owner or tenant to place a POD upon any property without having in his or her possession a validly issued permit from the Building Inspector. All permits for location of a POD shall have an initial expiration date of thirty (30) days from issuance. A permit may be extended for an additional thirty (30) days if such extension is requested prior to the expiration of the initial 30-day period. The Board of Directors shall, from time to time, establish the amount of the fee for the initial issuance of the permit and for an extension. Only one extension will be granted. (b) No POD may be located in any street or on unpaved portions of front yards of a property. POD units must be kept in the driveway of the property at the furthest accessible point from the street. All locations must be paved offstreet surfaces. Any other location must be pre-approved by the Building Inspector at his or her discretion. I. Amend Section 302 – Exterior Property Areas

Modify Section to 302.4 – Weeds. Insert "18 inches or hereinafter provided" for "(jurisdiction to insert height in inches)." Vegetation located on an unimproved, cleared lot shall be maintained to prohibit vegetation over 30 inches high.
Add to Section 302.7 – Accessory Structures. Fences and walls shall be free from loose, missing, broken, rotting materials or materials inconsistent with the overall materials in the fence and shall have braces and supports attached or fastened in accordance with common building practices. Fences shall not exceed eight feet in height and shall not unreasonably interfere with neighboring properties view of the Ross Barnett Reservoir, any such fence being considered a "spite fence" detrimental to the public welfare and community property values. Any fence constructed as of the effective date of this Regulation in excess of eight feet will be allowed as a non-conforming use but such fence may not be enlarged, expanded, extended or rebuilt in the event of destruction of fifty percent or more of the fence or other accessory structure.
Add to Section 302.8 –The term "Motor Vehicles" shall mean without limitation every device in, upon or by which any person or property is or may be transported upon a street or highway, including without limitation, automobiles, trucks, jeeps, motorcycles, all terrain vehicles, off road vehicles, motor bikes, buses, vans, dirt bikes and three- or four-wheelers.
Add Section 302.10 – Construction Projects. The following conditions shall be prohibited in residential areas:

4 3986801.1/00520.00006 302.10.1 Construction projects that are on-going for more that twelve months (exceptions: construction projects with valid building permit may request a time extension due to extenuating circumstances, such as natural disasters.) 302.10.2 Scattered building or repair materials in a yard. 302.10.3 Storage of construction, repair, or maintenance materials or equipment that are not to be used on the premises. 302.10.4 Construction debris and refuse remaining on property for more than thirty days. 302.10.5 Lumber or construction materials (excluding materials for construction project on the property with a current valid permit), salvage items (junk), including, but not limited to, auto parts, scrap metals, tires, and the like stored on property in excess of seventy-two hours and visible from a public street, walkway or alley or other public property. 302.10.6 Abandoned, dismantled, wrecked, inoperable, unlicensed, and discarded objects, equipment or appliances such as, but not limited to vehicles, boats, water heater, refrigerators, furniture which is not designed for outdoor use, household fixtures, machinery, equipment, cans, or containers standing or stored on property or on sidewalks or streets which can be viewed from a public street or walkway, alley, or other public property. 302.10.7 Building or repair materials and building, maintenance, or repair equipment stored for more than thirty days. 302.10.8 Piles of dirt, sand, gravel, rock, mulch in excess of fourteen (14) days. J. Amend Section 304 – Exterior Structure Add to Section 304.13 the following language: 304.13.3 No windows, door, or building exteriors shall be covered with but not limited to, aluminum foil, cardboard, plywood, or plastic, except during construction or pending repairs not exceeding thirty (30) days. Existing screens on doors or windows shall not be torn or in need of repair or replacement. Any person failing to comply with a notice of violation or order served in accordance with Section 107 of the Maintenance Code shall be subject to a fine of not more than One Thousand Dollars or by imprisonment not to exceed fifteen days, or both, as determined by the court. If any section, subsection, sentence, clause or phrase of this Regulation is, for any reason, held to be unconstitutional or otherwise unenforceable, such decision shall not affect the validity of the remaining portions of this Regulation. Source: Miss. Code Ann. § 51-9- 127 (Rev. 2000)

Part 207 Rules And Regulations Promulgated By The Mississippi Department Of Wildlife, Fisheries And Parks

33 Miss. Admin. Code Pt. 207 Rules And Regulations Promulgated By The Mississippi Department Of Wildlife, Fisheries And Parks

1 3986821.1/00520.00006 Title 33: River and Waters

Part 207: Rules And Regulations Promulgated By The Mississippi Department Of Wildlife, Fisheries And Parks Part 207 Chapter 1: Statutory Preemption. Rule 1.1 General. These regulations shall in no way alter, affect or amend any Rules and Regulations relating to hunting, fishing, or boating in, along or around the Reservoir promulgated from time to time by the Mississippi Department of Wildlife, Fisheries and Parks. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 208 Flood Damage Prevention Regulation

Chapter 1 Statutory Authority, Findings of Fact, Purpose and Objectives.

33 Miss. Admin. Code Pt. 208, R. 1.1 Statutory Authorization

The Legislature of the state of Mississippi has in Title 17, Chapter 1, Mississippi Code of 1972 Annotated delegated the responsibility to local government units to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry. Therefore, the Board of Directors of the Pearl River Valley Water Supply District, an agency of the State of Mississippi, does hereby adopt the following floodplain management regulations.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 1.2 Findings of Fact

(1) The Pearl River Valley Water Supply District is subject to periodic inundation, which results in loss of life and property, health and safety hazards, disruption of commerce and governmental services, extraordinary public expenditures for flood protection and relief, and impairment of the tax base, all of which adversely affect the public health, safety and general welfare.

(2) These flood losses are caused by the cumulative effect of obstructions, both inside and outside the identified Special Flood Hazard Areas, causing increases in flood heights and velocities and by the occupancy in flood hazard areas by uses vulnerable to floods or hazardous to other lands which are inadequately elevated, floodproofed, or otherwise unprotected from flood damages.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 1.3 Statement of Purpose

It is the purpose of this ordinance to promote the public health, safety, and general welfare and to minimize public and private losses due to flood conditions in specific areas by provisions designed to:

(1) Restrict or prohibit uses which are dangerous to health, safety, and property due to water or erosion hazards, which result in damaging increases in erosion or in flood heights or velocities;

(2) Require that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction;

3986829.1/00520.00006 (3) Control the alteration of natural floodplains, stream channels, and natural protective barriers which are involved in the accommodation of flood waters;

(4) Control filling, grading, dredging, and other development which may increase erosion or flood damage, and;

(5) Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which may increase flood hazards to other lands.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 1.4 Objectives

The objectives of this Regulation are:

(1) To protect human life and health;

(2) To minimize expenditure of public money for costly flood control projects;

(3) To minimize the need for rescue and relief efforts associated with flooding and generally undertaken at the expense of the general public;

(4) To minimize prolonged business interruptions;

(5) To minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines, streets and bridges located in floodplains;

(6) To help maintain a stable tax base by providing for the sound use and development of flood prone areas in such a manner as to minimize flood blight areas, and;

(7) To ensure that potential homebuyers are notified that property is in a flood prone area.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 1.5 Methods of Reducing Flood Losses

In order to accomplish its purposes, this Regulation includes methods and provisions for:

(1) Restricting or prohibiting uses which are dangerous to health, safety, and property due to water or erosion hazards, or which result in damaging increases in erosion or in flood heights or velocities;

3986829.1/00520.00006 (2) Requiring that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction;

(3) Controlling the alteration of natural floodplains, stream channels, and natural protective barriers, which help accommodate or channel flood waters;

(4) Controlling filling, grading, dredging, and other development which may increase flood damage, and;

(5) Preventing or regulating the construction of flood barriers that will unnaturally divert floodwaters or may increase flood hazards in other areas.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 2 Definitions.

33 Miss. Admin. Code Pt. 208, R. 1.1 Definitions

Unless specifically defined below, words or phrases used in this Regulation shall be interpreted so as to give them the meaning they have in common usage and to give this Regulation it’s most reasonable application.

A Zone is the Area of Special Flood Hazard without base flood elevations determined.

AE Zone is the Area of Special Flood Hazard with base flood elevations determined.

Accessory structure (Appurtenant structure) means a structure, which is located on the same parcel of property as the principal structure and the use of which is incidental to the use of the principal structure. Accessory structures should constitute a minimal initial investment, may not be used for human habitation, and be designed to have minimal flood damage potential. Examples of accessory structures are detached garages, carports, storage sheds, pole barns, and hay sheds.

Addition (to an existing building) means any walled and roofed expansion to the perimeter or height of a building. Any addition shall be considered new construction. If the addition is more than 50% of the market value of the structure, then the addition and the existing structure are now new construction.

AO Zone is an area of one percent chance of shallow flooding where depths are between one to three feet (usually shallow ponding), with base flood elevations shown.

Appeal means a request for a review of the Floodplain Administrator’s interpretation of any provision of this Regulation or a request for a variance.

3986829.1/00520.00006 AR/AE, AR/AH, AR/AO, and AR/A Zones are SFHAs that result from the decertification of a previously accredited flood protection system or levee that is in the process of being restored to provide a one percent chance or greater level of flood protection. After restoration is complete, these areas will still experience residual flooding from other flooding sources.

A99 Zone is that part of the SFHA inundated by the one percent chance flood to be protected from the one percent chance flood by a Federal flood protection system or levee under construction, no base flood elevations are determined.

Area of shallow flooding means a designated AO or AH Zone on the community’s Flood Insurance Rate Map (FIRM) with flood depths from one to three feet where a clearly defined channel does not exist, where the path of flooding is unpredictable and indeterminate, and where velocity flow may be evident. Such flooding is characterized by ponding or sheet flow.

Area of special flood hazard is the land in the floodplain within a community subject to a one percent or greater chance of flooding in any given year. This area is also referred to as the Special Flood Hazard Area (SFHA).

Base flood means the flood having a one percent chance of being equaled or exceeded in any given year (also called the “one percent chance flood”).

Base Flood Elevation (BFE) is the elevation shown in the Flood Insurance Study (FIS) for Zones AE, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, and VE that indicates the water surface elevation resulting from a flood that has a one percent or greater chance of being equaled or exceeded in any given year.

Basement means any portion of a building having its floor sub-grade (below ground level) on all sides.

Breakaway wall means a wall that is not part of the structural support of the building and is intended through its design and construction to collapse under specific lateral loading forces without causing damage to the elevated portion of the building or the supporting foundation system. This is associated with VE Zone construction.

Building see Structure.

Coastal AE Zone means the portion of the Special Flood Hazard Area (SFHA) to be landward of a Velocity (V) Zone or landward of an open coast or back-bay area without mapped V-Zones, in which the principal sources of flooding are astronomical tides, storm surges, seiches or tsunamis; not riverine sources. Coastal AE Zones may be subject to wave effects, velocity flows, erosion, scour or combinations of these forces. All community-identified or designated portions of the Special Flood Hazard Area (SFHA) between the landward limit of moderate wave action (the LiMWA or 1.5-foot breaking wave) and the landward limit of the V Zone boundary

3986829.1/00520.00006 shall be regulated as VE Zones. Where no VE Zone is mapped in back-bay areas, the Coastal AE Zone is the portion between the high tide line and the landward limit of the 1.5-foot breaking wave.

Coastal Barrier Resources System (CBRS) is a system of protected coastal areas which also includes otherwise protected areas; subject to certain flood coverage restrictions. These areas were identified by the Coastal Barrier Resources Act of 1982 (CBRA) and the Coastal Barrier Improvement Act of 1990 and are shown on appropriate FIRM panels.

Coastal high hazard area is an area of special flood hazard, extending from offshore to the inland limit of the primary frontal dune along an open coast and any other area subject to high velocity wave action from storms or seismic sources. The area is designated on the FIRM as VE Zone.

Community is a political entity and/or its authorized agents or representatives that have the authority to adopt and enforce floodplain Regulations for the area under its jurisdiction.

Community Floodplain Management Map means any map produced by the community utilizing best available base flood elevation and floodway data that is from a federal, state, or other accepted technical source.

Community Rating System (CRS) is a program developed by the Federal Insurance Administration to provide incentives for those communities in the Regular Program that have gone beyond the minimum floodplain management requirements to develop extra measures to provide protection from flooding.

Community Flood Hazard Area (CFHA) is an area that has been determined by the Floodplain Administrator (or other delegated, designated, or qualified community official) from available technical studies, historical information, and other available and reliable sources, which may be subject to periodic inundation by floodwaters that can adversely affect the public health, safety and general welfare. This includes areas downstream from dams.

Critical facility (also called critical action) means facilities for which the effects of even a slight chance of flooding would be too great. The minimum floodplain of concern for critical facilities is the 0.2 percent chance flood level. Critical facilities include, but are not limited to facilities critical to the health and safety of the public such as: emergency operations centers, designated public shelters, schools, nursing homes, hospitals, police, fire and emergency response installations, vital data storage centers, power generation and water and other utilities (including related infrastructure such as principal points of utility systems) and installations which produce, use or store hazardous materials or hazardous waste (as defined under the Clean Water Act and other Federal statutes and regulations).

D Zone is an area in which the flood hazard is undetermined.

3986829.1/00520.00006

Dam is any artificial barrier, including appurtenant works, constructed to impound or divert water, waste water, liquid borne materials, or solids that may flow if saturated. All structures necessary to maintain the water level in an impoundment or to divert a stream from its course will be considered a dam.

Development means any man-made change to improved or unimproved real estate, including, but not limited to, buildings or other structures, mining, dredging, filling, grading, paving, excavating, drilling operations, or storage of materials or equipment.

Dry Floodproofing means any combination of structural and nonstructural additions, changes, or adjustments to structures, which reduce or eliminate flood damages to real estate or improved real estate property, water, and sanitary facilities, structures, and their contents. Structures shall be floodproofed with a minimum of 12 inches of freeboard (more is recommended) in relation to the base flood elevation. Dry floodproofing of a pre-FIRM residential structure that has not been substantially damaged or improved is allowed. Dry floodproofing of a post-FIRM residential building is not allowed. Non-residential structures may be dry floodproofed in all flood zones with the exception of the Coastal High Hazard Area or the Coastal AE Zone.

Elevated building means for insurance purposes, a non-basement building which has its lowest elevated floor raised above ground level by foundation walls, shear walls, posts, pilings, columns, or piers.

Elevation Certificate is a FEMA form used as a certified statement that verifies a building’s elevation information.

Emergency Program means the first phase under which a community participates in the NFIP. It is intended to provide a first layer amount of insurance coverage for all insurable buildings in that community before the effective date of the initial FIRM.

Enclosure below the Lowest Floor see “Lowest Floor.”

Encroachment means the advance or infringement of uses, plant growth, fill, excavation, buildings, structures or development into a floodplain, which may impede or alter the flow capacity of a floodplain.

Executive Order 11988 (Floodplain Management) this order requires that no federally assisted activities be conducted in or have the potential to affect identified Special Flood Hazard Areas, unless there is no practicable alternative.

Executive Order 11990 (Wetlands Protection) this order requires the avoidance of adverse impacts associated with the destruction or modification of wetlands.

3986829.1/00520.00006 Existing Construction means structures for which the “start of construction” commenced before the date of the FIRM or before January 1, 1975, for FIRMs effective before that date. Existing construction may also be referred to as existing structures.

Existing manufactured home park or subdivision means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including at a minimum the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed before the effective date of the floodplain management regulations adopted by a community.

Expansion to an existing manufactured home park or subdivision includes the preparation of additional sites by the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads).

Fill means a deposit of earthen materials placed by artificial means.

Five-Hundred Year Flood means the flood that has a 0.2 percent chance of being equaled or exceeded in any year. Areas subject to the 0.2 percent chance flood have a moderate risk of flooding.

Flood or flooding means a general and temporary condition of partial or complete inundation of normally dry land areas from:

a.) The overflow of inland or tidal waters.

b.) The unusual and rapid accumulation or runoff of surface waters from any source.

c.) Mudslides which are proximately caused by flooding and are akin to a river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current.

d.) The collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels or suddenly caused by an unusually high water level in a natural body of water, accompanied by a severe storm, or by an unanticipated force of nature, such as flash flood or an abnormal tidal surge, or by some similarly unusual and unforeseeable event which results in flooding.

Flood (insurance definition) means a general and temporary condition of partial or complete inundation of two or more acres of normally dry land areas or of two or more properties (e.g. a building and a public street) from (1) overflow of inland or tidal waters (2) unusual and rapid accumulation or runoff of surface waters (3) mudflows caused by flooding.

3986829.1/00520.00006

Flood Insurance Rate Map (FIRM) means an official map of a community, on which FEMA has delineated both the areas of special flood hazard and the risk premium zones applicable to the community.

Flood Insurance Study (FIS) is the document which provides an examination, evaluation, and determination of flood hazards and, if appropriate, corresponding water surface elevations, or an examination, evaluation, and determination of mudslide and/or flood-related erosion hazards.

Floodplain means any land area susceptible to being inundated by flood waters from any source.

Floodplain Administrator is the individual appointed to administer and enforce the floodplain management regulations.

Floodplain management means the operation of an overall program of corrective and preventive measures for reducing flood damage and preserving and enhancing, where possible, natural resources in the floodplain, including but not limited to emergency preparedness plans, flood control works, floodplain management regulations, and open space plans.

Floodplain management regulations means this Regulation and other zoning Regulations, subdivision regulations, building codes, health regulations, special purpose Regulations, and other applications of police power which control development in flood-prone areas. This term describes federal, state, or local regulations in any combination thereof, which provide standards for preventing and reducing flood loss and damage.

Floodproofing Certificate is an official FEMA form used to certify compliance for non- residential structures in non-Coastal High Hazard Areas as an alternative to elevating buildings to or above the base flood elevation.

Floodway see Regulatory Floodway.

Floodway fringe means that area of the special flood hazard area on either side of the regulatory floodway.

Flood Protection Elevation is the base flood elevation plus the community freeboard. In areas where no base flood elevations exist from any authoritative source, the flood protection elevation can be historical flood elevations or base flood elevations determined and/or approved by the floodplain administrator plus freeboard.

Freeboard means a factor of safety, usually expressed in feet above the BFE, which is applied for the purposes of floodplain management. {Communities are encouraged to adopt at least an 18 inch freeboard to account for the one foot rise built into the concept of designating a floodway, where floodways have not been designated.}

3986829.1/00520.00006

Functionally dependent use means a use which cannot perform its intended purpose unless it is located or carried out in close proximity to water. The term includes only docking facilities, port facilities that are necessary for the loading and unloading of cargo or passengers, ship building and ship repair facilities and seafood offloading facilities. The term does not include long-term storage, manufacture, processing functions, sales, administrative functions, or service facilities.

Hardship (as related to variances of this Regulation) means the exceptional difficulty that would result from a failure to grant the requested variance. The Board of Directors requires that the variance is exceptional, unusual, and peculiar to the property involved. Mere economic or financial hardship alone is NOT exceptional. Inconvenience, aesthetic considerations, physical handicaps, personal preferences, or the disapproval of one’s neighbors likewise cannot, as a rule, qualify as an exceptional hardship. All of these problems can be resolved through other means without granting a variance, even if the alternative is more expensive, or requires the property owner to build elsewhere or put the parcel to a different use than originally intended.

Hazard potential means the possible adverse incremental consequences that result from the release of water or stored contents due to failure of a dam or mis-operation of a dam or appurtenances. The hazard potential classification of a dam does not reflect in any way on the current condition of a dam and its appurtenant structures (e.g. safety, structural integrity, and flood routing capacity).

High hazard dam means a class of dam in which failure may cause loss of life, serious damage to residential, industrial, or commercial buildings; or damage to, or disruption of, important public utilities or transportation facilities such as major highways or railroads. Dams which meet the statutory thresholds for regulation that are proposed for construction in established or proposed residential, commercial, or industrial areas will be assigned this classification, unless the applicant provides convincing evidence to the contrary. A development permit is required for a structure and any associated fill downstream from a dam at any location where flooding can be reasonably anticipated from principal or emergency spillway discharges, or from overtopping and failure of the dam.

Highest adjacent grade means the highest natural elevation of the ground surface, prior to construction, net to the proposed walls of a building.

Historic Structure means any structure that is:

a.) Listed individually in the National Register of Historic Places (a listing maintained by the Department of Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register;

3986829.1/00520.00006 b.) Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic or a district preliminarily determined by the Secretary to qualify as a registered historic district;

c.) Individually listed on the State of Mississippi inventory of historic structures, or;

d.) Individually listed on a local inventory historic places in communities with historic preservation programs that have been certified by an approved state program as determined by the Secretary of the Interior.

Hydrologic and hydraulic engineering analyses means the analyses performed by a professional engineer, registered in the state of Mississippi, in accordance with standard engineering practices as accepted by FEMA, used to determine flood elevations and /or floodway boundaries.

Increased Cost of Compliance (ICC) coverage means under the standard flood insurance policy the cost to repair a substantially flood damaged building that exceeds the minimal repair cost and that is required to bring a substantially damaged building into compliance with the local flood damage prevention Regulation. Acceptable mitigation measures are floodproofing (nonresidential), relocation, elevation, demolition, or any combination thereof. All renewal and new policies with effective dates on or after June 1, 1997, include ICC coverage.

Letter of Map Change (LOMC) is an official FEMA determination, by letter, to amend or revise effective Flood Insurance Rate Maps, Flood Boundary and Floodway Maps, and Flood Insurance Studies. LOMC’s are broken down into the following categories:

Letter of Map Amendment (LOMA) An amendment based on technical data showing that a property was incorrectly included in a designated SFHA, was not elevated by fill (only by a natural grade elevation) and will not be inundated by the one percent chance flood. A LOMA amends the current effective FIRM and establishes that a specific property is not located in a SFHA.

Letter of Map Revision (LOMR) A revision based on technical data that, usually due to manmade changes, shows changes to flood zones, flood elevations, floodplain and floodway delineations, and planimetric features. One common type of LOMR, a LOMR-F, is a determination concerning whether a structure or parcel has been elevated by fill above the BFE and is, therefore, excluded from the SFHA.

Conditional Letter of Map Revision (CLOMR) A formal review and comment by FEMA as to whether a proposed project complies with the minimum NFIP floodplain management criteria. A CLOMR does not revise effective Flood Insurance Rate Maps, Flood Boundary and Floodway Maps, or Flood Insurance Studies.

3986829.1/00520.00006

Levee means a man-made structure; usually an earthen embankment designed and constructed in accordance with sound engineering practices to contain, control, or divert the flow of water so as to provide protection from temporary flooding.

Levee system means a flood protection system which consists of a levee, or levees, and associated structures, such as closure and drainage devices, which are constructed and operated in accordance with sound engineering practices. For a levee system to be recognized, the following criteria must be met. All closure devices or mechanical systems for internal drainage, whether manual or automatic, must be operated in accordance with an officially adopted operation manual (a copy of which must be provided to FEMA by the operator when levee or drainage system recognition is being sought or revised). All operations must be under the jurisdiction of a Federal or State agency, an agency created by Federal or State law, or an agency of a community participating in the NFIP.

Limit of Moderate Wave Action (LiMWA) is the limit of the AE Zone category area exposed to wave attack from waves greater than 1.5 feet during the base (one percent chance) flood on open coastal and inland areas exposed to erosion and wave propagation.

Low hazard dam means a class of dam in which failure would at the most result in damage to agricultural land, farm buildings (excluding residences), or minor roads.

Lowest adjacent grade means the elevation of the sidewalk, patio, deck support, or basement entryway immediately next to the structure and after the completion of construction. It does not include earth that is placed for aesthetic or landscape reasons around a foundation wall. It does include natural ground or properly compacted fill that comprises a component of a building’s foundation system.

Lowest floor means the lowest floor of the lowest enclosed area (including basement). An unfinished or flood resistant enclosure, used solely for parking of vehicles, building access, or storage, in an area other than a basement, is not considered a building’s lowest floor, provided that such enclosure is not built so as to render the structure in violation of the non-elevation provisions of this code.

Manufactured home (44 CFR 59.1 definition / FEMA) means a structure, transportable in one or more sections, which is built on a permanent chassis and designed to be used with or without a permanent foundation when attached to the required utilities. The term manufactured home does not include a “recreational vehicle.”

Manufactured housing (24 CFR 3280.3 and 3285.5 definitions / HUD) means “...a structure, transportable in one or more sections, which in the traveling mode is 8 body feet or more in width or 40 body feet in length or which the private insurance industry.

3986829.1/00520.00006 National Geodetic Vertical Datum (NGVD) means a vertical control, corrected in 1929, used as a reference for establishing varying elevations within the floodplain.

New Construction means a structure or an addition to an existing structure for which the start of construction commenced on or after the effective date of a floodplain management regulation adopted by a community and any subsequent improvements to such structure or the addition.

New manufactured home park or subdivision means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed on or after the effective date of floodplain regulations adopted by a community.

Non-Residential means, but is not limited to; small business concerns, churches, schools, farm buildings (including grain bins and silos), pool houses, clubhouses, recreational buildings, mercantile structures, agricultural and industrial structures, warehouses, and hotels and motels with normal room rentals for less than 6 months duration.

North American Vertical Datum (NAVD) of 1988 means a vertical control, corrected in 1988, used as a reference for establishing varying elevations within the floodplain.

Obstruction means, but is not limited to, any dam, wall, wharf, embankment, levee, dike, pile, abutment, protection, excavation, channel construction, bridge, culvert, building, wire, fence, rock, gravel, refuse, fill, structure, vegetation or other material in, along, across or projecting into any watercourse which may alter, impede, retard or change the direction and/or velocity of the flow of water, or due to its location, its propensity to snare or collect debris carried by the flow of water, or its likelihood of being carried downstream.

One Percent Flood (aka 100-Year Flood) is the flood that has a one percent chance of being equaled or exceeded in any given year. Any flood zone that begins with the letter A or V is subject to inundation by the one percent chance flood. Over the life of a 30-year loan, there is a 26-percent chance of experiencing such a flood within the SFHA.

Participating Community is any community that voluntarily elects to participate in the NFIP by adopting and enforcing floodplain management regulations that are consistent with the standards of the NFIP.

Post-FIRM Construction means new construction and substantial improvements for which start of construction occurred after December 31, 1974, or on or after the effective date of the initial FIRM of the community, whichever is later.

3986829.1/00520.00006 Pre-FIRM Construction means new construction and substantial improvements for which start of construction occurred on or before December 31, 1974, or before the effective date of the initial FIRM of the community, whichever is later.

Probation is a means of FEMA formally notifying participating communities of the first of the two NFIP sanctions due to their failure to correct violations and deficiencies in the administration and enforcement of the local floodplain management regulations.

Public safety and nuisance means anything which is injurious to the safety or health of an entire community or neighborhood, or any considerable number of persons, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable lake, or river, bay, stream, canal, or basin.

Recreational vehicle means a vehicle that is:

a.) Licensed and titled as an RV or park model (not a permanent residence);

b.) Built on a single chassis;

c.) 400 square feet or less when measured at the largest horizontal projection;

d.) Has no attached deck, porch, or shed;

e.) Has quick-disconnect sewage, water, and electrical connectors;

f.) Designed to be self-propelled or permanently towable by a light duty truck, and;

g.) Designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel, or seasonal use.

Regular Program means the second phase of the community’s participation in the NFIP in which second layer coverage is available based upon risk premium rates only after FEMA has competed a risk study for the community. Regulatory floodway means the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than one foot.

Repair means the reconstruction or renewal of any part of an existing building for which the start of construction commenced on or after the effective date of a floodplain management regulation adopted by a community and all such regulations effective at the time of permitting must be met.

3986829.1/00520.00006 Repetitive Loss means flood-related damages sustained by a structure on two separate occasions during a 10-year period for which the cost of repairs at the time of each such flood event, on the average, equals or exceeds 25 percent of the market value of the structure before the damage occurred.

Repetitive Loss Property is any insurable building for which two or more claims of more than $1,000 were paid by the National Flood Insurance Program (NFIP) within any rolling 10-year period, since 1978. At least two of the claims must be more than ten days apart but, within ten years of each other. A RL property may or may not be currently insured by the NFIP.

Section 1316 means that section of the National Flood Insurance Act of 1968, as amended, which states that no new flood insurance coverage shall be provided for any property that FEMA finds has been declared by a duly constituted state or local zoning authority or other authorized public body to be in violation of state or local laws, regulations, or Regulations that are intended to discourage or otherwise restrict land development or occupancy in flood-prone areas.

Severe Repetitive Loss Structure means any insured property that has met at least one of the following paid flood loss criteria since 1978, regardless of ownership:

Four or more separate claim payments of more than $5,000 each (including buildings and contents payments); or
Two or more separate claim payments (building payments only) where the total of the payments exceeds the current market value of the property.

In either case, two of the claim payments must have occurred within ten years of each other. Multiple losses at the same location within ten days of each other are counted as one loss, with the payment amounts added together.

Significant hazard dam means a dam assigned the significant hazard potential classification where failure may cause damage to main roads, minor railroads, or cause interruption of use, or service of relatively important public utilities.

Special flood hazard area (SFHA) means that portion of the floodplain subject to inundation by the base flood and/or flood-related erosion hazards as shown on a FHBM or FIRM as Zones A, AE, AH, AO, AR, AR/AE, AR/AO, AR/AH, AR/A, A99, or VE.

Start of construction (for other than new construction or substantial improvements under the Coastal Barrier Resources Act P. L. 97-348), includes substantial improvement, and means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, or improvement was within 180 days of the permit date. The actual start means the first placement of permanent construction of a building (including a manufactured home) on a site, such as the pouring of slabs or footings, installation of piles, construction of columns, or

3986829.1/00520.00006 any work beyond the stage of excavation or placement of a manufactured home on a foundation. Permanent construction does not include land preparation, such as clearing, grading and filling; nor does it include the installation of streets and/or walkways; nor does it include excavation for a basement, footings, piers or foundations or the erection of temporary forms; nor does it include the installation on the property of accessory buildings, such as garages or sheds not occupied as dwelling units or not part of the main building. For substantial improvement, the actual start of construction means the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the external dimensions of the building.

Structure (for floodplain management purposes), means a walled and roofed building, including a gas or liquid storage tank that is principally above ground, as well as a manufactured home.

Structure (for insurance purposes), means a building with two or more outside rigid walls and a fully secured roof, that is affixed to a permanent site; a manufactured home built on a permanent chassis, transported to it site in one or more sections, and affixed to a permanent foundation; or a travel trailer without wheels, built on a chassis and affixed to a permanent foundation, that is regulated under the community’s floodplain management and building Regulations or laws. The term does not include a recreational vehicle or a park trailer or other similar vehicle, except as described in the last part of this definition, or a gas, or a liquid storage tank.

Subrogation means an action brought by FEMA when flood damages have occurred, a flood insurance claim has been paid, and all or part of the damage can be attributed to acts or omissions by a community or other third party.

Substantial Damage means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. Substantial damage also means flood- related damages sustained by a structure on two separate occasions during a 10-year period for which the cost of repairs at the time of each flood event, on the average, equals or exceeds 25 percent of the market value of the structure before the damage occurred Substantial Improvement means any combination of reconstruction, rehabilitation, or other improvement of a structure taking place over a designated 10-year period in which the cumulative percentage of improvement equals or exceeds 50 percent of the current market value of the structure before the “start of construction” of the improvement. The designated 10-year period begins at the date of the initial improvement to the structure. The costs for determining substantial improvement include the costs of additions. This term includes structures which have incurred repetitive loss or substantial damage, regardless of the actual repair work performed.

The term does not apply to:

a.) Any project for improvement of a building required to comply with existing health, sanitary, or safety code specifications which have been identified by the Code Enforcement Official and which are solely necessary to assure safe living

3986829.1/00520.00006 conditions, provided that said code deficiencies were not caused by neglect or lack of maintenance on the part of the current or previous owners or;

b.) Any alteration of a “historic structure” provided that the alteration will not preclude the structure’s continued designation as a “historic structure.”

Substantially improved existing manufactured home parks or subdivisions means manufactured home parks or subdivisions where the repair, reconstruction, rehabilitation or improvement of the streets, utilities and pads equals or exceeds 50 percent of the value of the streets, utilities and pads before the repair, reconstruction or improvement commenced.

Suspension means the removal, with or without probation, of a participating community from the NFIP because the community failed to adopt and enforce the compliant floodplain management regulations required for participation in the NFIP.

VE Zone see Coastal High Hazard Area.

Variance is a grant of relief from the requirements of this Regulation.

Violation means the failure of a structure or other development to be fully compliant with this Regulation. A structure or other development without the elevation certificate, other certifications, or other evidence of compliance required in this Regulation is presumed to be in violation until such time as that documentation is provided.

Watercourse means any flowing body of water including a river, creek, stream, or a branch.

Water surface elevation means the height, in relation to the National Geodetic Vertical Datum (NGVD) of 1929, the North American Vertical Datum (NAVD) of 1988, (or other datum, where specified) of floods of various magnitudes and frequencies in the floodplains of coastal or riverine areas.

Wet floodproofing means a method of construction which allows water to enter a structure in such a way that will minimize damage to the structure and its contents. Wet floodproofing is appropriate for functionally dependent use and uses that facilitate open space use by variance only, structures utilized for parking or limited storage, or when all other techniques are not technically feasible. Wet floodproofing shall not be utilized as a method to satisfy the requirements of this Regulation for bringing substantially damaged or improved structures into compliance. Wet floodproofing is not allowed in lieu of complying with the lowest floor elevation requirements for new residential buildings.

X Zones (shaded) are areas of 0.2 percent chance flood that are outside of the SFHA subject to the one percent chance flood with average depths of less than one foot, or with contributing

3986829.1/00520.00006 drainage area less than one square mile, and areas protected by certified levees from the base flood.

X Zones (unshaded) are areas determined to be outside the 0.2 percent chance floodplain.

Zone means a geographical area shown on a Flood Hazard Boundary Map or a Flood Insurance Rate Map that reflects the severity or type of flooding in the area.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 3 General Provision

33 Miss. Admin. Code Pt. 208, R. 3.1 Lands to Which this Regulation Applies

This Regulation shall apply to all areas of special flood hazard (SFHA) areas within the jurisdiction of the Board of Directors of the Pearl River Valley Water Supply District, which may be subject to periodic inundation by floodwaters that can adversely affect the public health, safety, and general welfare of the citizens of the Pearl River Valley Water Supply District.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 3.2 Basis for Establishing the Areas of Special Flood Hazard

The areas of special flood hazard identified by the Federal Emergency Management Agency in the current scientific and engineering reports entitled “The Flood Insurance Study (FIS)” with the accompanying Flood Insurance Rate Maps (FIRM) (multiple panel) Index Numbers: Rankin County, 28121CINDOC dated August 16, 2022; Hinds County, 28049CINDOB dated July 20, 2012; Leake County, 28079CINDOA dated September 16, 2011; Madison County, 28082CINDBOB dated January 17, 2025; Scott County, 28123CINDOB dated July 20, 2021; and other supporting data, along with Digital Floor Insurance Rate Studies and Maps are on file at the District Permit Office, 100 Reservoir Park Road, Brandon, Mississippi 39047.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 3.3 Use of Preliminary Flood Hazard Data

When Flood Insurance Studies and Preliminary Flood Insurance Rate Maps have been provided by FEMA:

(1) Prior to the issuance of a Letter of Final Determination (LFD) by FEMA, the use of the preliminary flood hazard data shall only be required where no base flood elevations and/or floodway areas exist or where the preliminary base flood elevations or floodway area exceed the base flood elevations and/or floodway widths in the effective flood hazard data provided by FEMA. Such preliminary data may be subject to revision through valid appeals.

(2) Upon the issuance of a Letter of Final Determination (LFD) by FEMA, the revised flood hazard data shall be used and replace all previously effective flood hazard data provided by FEMA for the purposes of administrating these regulations.

3986829.1/00520.00006

Where adopted regulatory standards conflict, the more stringent base flood elevation shall prevail. Preliminary FIS data may be subject to change by a valid appeal.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 3.4 Establishment of Floodplan Development Permit

A development permit shall be required in conformance with the provision of this Regulation prior to the commencement of any development activities in identified areas of special flood hazard and community flood hazard areas within the community.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 3.5 Compliance

No structure or land shall hereafter be located, extended, converted or structurally altered without full compliance with the terms of this Regulation and other applicable regulations.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 3.6 Abrogation and Greater Restrictions

This Regulation is not intended to repeal, abrogate, or impair any existing easements, covenants, or deed restrictions. However, where this Regulation and another conflict or overlap, whichever imposes the more stringent restrictions shall prevail.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 3.7 Interpretation

In the interpretation and application of this Regulation all provisions shall be:

(1) Considered as minimum requirements;

(2) Liberally construed in favor of the governing body, and;

(3) Deemed neither to limit nor repeal any other powers granted under state statutes.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 3.8 Standards for X Zones (Shaded/Unshaded)

Any area outside the FEMA studied areas lying along blue line streams shown on the United States Department of the Interior Geological Survey quadrants of which the Pearl River Valley Water Supply District is contained and/or areas with flood prone soils which are contiguous to blue line streams as shown on the

3986829.1/00520.00006 Pearl River Valley Water Supply District Flood Prone Soils Map shall also be considered community flood hazard areas. These areas contiguous to blue line streams are defined by a buffer of five times the width of the stream at the top of the bank or twenty feet each side from the top of the bank, whichever is greater.

The X Zones (shaded/unshaded) are considered to be low to moderate risk flood zones and are located outside the community’ delineated special flood hazard area and include the following:

(1) Areas outside the one percent chance flood zone, but within the 0.2 percent chance flood zone, as determined by a detailed study;

(2) Areas outside the 0.2 percent chance flood zone as determined by a detailed study, and;

(3) Areas that have not yet been studied.

The community reserves the right to require further studies for any development within its jurisdiction, if there is evidence that a potential flood hazard exists. Studies can be used to designate community flood hazard areas. Such evidence may include but shall not be limited to:

(1) Eyewitness reports of historic flooding or other reports of historic flooding deemed credible by the community;

(2) Geologic features observed that resemble floodplains (such as flat areas along streams);

(3) Proximity to manmade or natural constrictions such as road crossings that can cause backwater effects, and;

(4) Drainage basin characteristics such as drainage area, slope, percent impervious cover, land use, etc.

Rule 3.9. The community may declare any existing structure as a repetitive loss structure as required to qualify the structure for increased cost of compliance (ICC) benefits allowed by a National Flood Insurance Program flood policy claim. To be declared a repetitive loss structure, the following conditions must be met:

(1) The structure must have a flood insurance policy that includes the increased cost of compliance coverage and;

3986829.1/00520.00006

(2) The structure must have been flooded twice during a ten-year period with each flood event causing damage for which the repair cost equaled or exceeded 25% of the market value of the structure.

Rule 3.10. Warning and Disclaimer of Liability. The degree of flood protection required by this Regulation is considered reasonable for regulatory purposes and is based on scientific and engineering consideration. Larger floods can and will occur on rare occasions. Flood heights may be increased by man-made or natural causes. This Regulation does not imply that land outside the areas of special flood hazard and community flood hazard areas or uses permitted within such areas will be free from flooding or flood damages. This Regulation shall not create liability on the part of the Board of Directors of the Pearl River Valley Water Supply District or by any officer or employee thereof for any flood damages that result from reliance on this Regulation or any administrative decision lawfully made hereunder.

Rule 3.11. Enforcement, Penalties, and Violations. Any action or inaction which violates the provisions of this Regulation or permit shall be subject to the enforcement actions outlined in Rule 3. Any such action or inaction that is continuous with respect to time is deemed to be a public nuisance and may be abated by injunctive or other equitable relief. The imposition of any of the penalties described below shall not prevent such equitable relief.

Part 208 Chapter 4. Administration.

Rule 4.1. Designation of Flood Damage Prevention Regulation Administrator. The Board of Directors of the Pearl River Valley Water Supply District hereby appoints the Chief Building Official to administer and implement the provisions of this Regulation and is herein referred to as the Floodplain Administrator and/or the administrator.

Rule 4.2. Permit Procedures. Application for a Development Permit shall be made to the Floodplain Administrator on forms furnished by him or her prior to any development activities, and may include, but not be limited to, the following plans in duplicate drawn to scale showing the nature, location, dimensions, and elevations of the area in question; existing or proposed structures, earthen fill, storage of materials or equipment, drainage facilities, and the location of the foregoing. Specifically, the following information is required:

(1) Application Stage.

3986829.1/00520.00006

a.) Elevation in relation to mean sea level of the proposed lowest floor (including basement) of all buildings, which will be submitted on a FEMA Form 81-31 (Elevation Certificate) by a state of Mississippi registered engineer or surveyor;

b.) Elevation in relation to mean sea level to which any non-residential building in an A Zone will be floodproofed;

c.) Certificate from a state of Mississippi registered professional engineer or architect that the non-residential flood-proofed building will meet the floodproofing criteria in Part 208, Rule 4.2, Rule 5.2 and Rule 5.4);

d.) No floodplain development permit can be issued to any mobile, modular, or permanently constructed residence, building or facility unless the owner, lessee, or developer obtains a Notice of Intent from the Mississippi State Health Department, pursuant to the MS Individual On-Site Wastewater Disposal System Law (2009), for a recommendation of a sewage system or Proof of Compliance from the proper Sewer and Water District;

e.) Description of the extent to which any watercourse will be altered or relocated as result of proposed development.

(2) Construction Stage:

Upon establishment/placement of the lower floor, before framing continues, to include any approved floodproofing method by whatever construction means, it shall be the duty of the permit holder to submit to the Floodplain Administrator a certification of the NAVD or NGVD elevation of the lowest floor or floodproofed elevation, as built, in relation to mean sea level. Said certification shall be prepared by or under the direct supervision of a registered land surveyor or professional engineer, who is authorized by the state of Mississippi to certify such information and certified by same. When floodproofing is utilized for a particular building said certification shall be prepared by or under the direct supervision of a professional engineer or architect, who is authorized by the state of Mississippi to certify such information and certified by same. Floodproofing shall be required to be 18 inches above the base flood elevation.

Any work undertaken prior to submission of the certification shall be at the permit holder’s risk. The Floodplain Administrator shall review the lowest floor & floodproofing elevation survey data submitted. The permit holder immediately and prior to further progressive work being permitted to proceed shall correct deficiencies detected by such review. Failure to submit the survey or failure to make said corrections required hereby shall be cause to issue a stop-work order for the project.

3986829.1/00520.00006

In any lot or lots/areas that have been removed from the special flood hazard area via a Letter of Map Revision Based on Fill, and if the top of fill level is below the freeboard elevation, all new structures, additions to existing buildings or substantial improvement must meet the required community freeboard elevation.

(3) Finished Construction:

Upon completion of construction, a FEMA elevation certificate which depicts all finished construction elevations is required to be submitted to the Floodplain Administrator. If the project includes a floodproofing measure, a FEMA floodproofing certificate is required to be submitted by the permit holder to the Floodplain Administrator.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 208, R. 4.3 Powers, Duties, and Responsibilities of the Floodplain Administrator

The Floodplain Administrator and his or her designated staff is hereby authorized and directed to enforce the provisions of this Regulation. The Administrator is further authorized to render interpretations of this Regulation, which are consistent with its spirit and purpose.

(1) Right of Entry

Duties of the Administrator shall include, but not be limited to:

(1) Review all development permits to assure that the permit requirements of this Regulation have been satisfied.

(2) Review proposed development to assure that all necessary permits have been received from those governmental agencies from which approval is required by Federal or State law, including section 404 of the Federal Water Pollution Control Act Amendments of 1972, 33 U.S.C. 1334. Additionally, require the permittee to obtain and submit copies of any required federal or state permits and maintain them on file with the development permit.

(3) Perform a minimum of three inspections to ensure that all applicable Regulation and floodplain development requirements have been satisfied. The first inspection upon the establishment of the Base Flood Elevation reference mark at the development site; the second upon the establishment of the structure’s footprint prior to pouring the slab or the establishment of the lowest floor in an elevated foundation system; and the final inspection upon completion and submission of the required finished construction elevation certificate.

(4) Verify any required setback distances.

3986829.1/00520.00006

(5) Verify that all placement of fill or grading is according to certified plans. Assure that any fill being used as part of the structure’s foundation system (not allowed in a CHHA) is both clean material and properly compacted and placed. A professional certification that any structure built on fill is reasonably safe from flooding can be requested of the builder/developer.

(6) Verify adequate placement and size of any required flood vents in regard to the number of openings, their location, size, and height above ground level.

(7) Ensure that a crawlspace has adequate vents or openings and that the interior grade is at or above the exterior grade.

(8) Verify that the structure’s utilities, duct work, and HVAC systems are at or above the base flood elevation.

(9) Notify adjacent communities, the NFIP State Coordinator, and other federal and/or state agencies with statutory or regulatory authority prior to any alteration or relocation of a watercourse.

(10) Assure that maintenance is provided within the altered or relocated portion of said watercourse so that the flood-carrying capacity is maintained.

(11) Verify and record the actual elevation (in relation to mean sea level) of the lowest floor (including basement) of all new construction and substantially improved buildings, in accordance with Part 208, Rule 4.2 (2). Information must be recorded on the FEMA Elevation Certificate Form 81-31.

(12) Verify and record the actual elevation (in relation to mean sea level) to which the new construction and substantially improved buildings have been floodproofed, in accordance with Part 208, Rule 4.2 (2). Information must be recorded on the FEMA Elevation Certificate Form 81-31.

(13) Review certified plans and specifications for compliance.

(14) Make the necessary interpretation where interpretation is needed as to the exact location of boundaries of the areas of special flood hazard (for example, where there appears to be a conflict between a mapped boundary and actual field conditions). The person contesting the location of the boundary shall be given a reasonable opportunity to appeal the interpretation as provided in this Rule.

(15) Obtain, review and reasonably utilize any base flood elevation and floodway data available from a federal, state or other source when base flood elevation data or floodway

3986829.1/00520.00006 data have not been provided in accordance with Part 208, Rule 3.2, in order to administer the provisions of Part 208, Rule 5.1, et seq.

(16) Provide information, testimony, or other evidence, as needed during variance request hearings.

(17) Conduct the following actions when damage occurs to a building or buildings:

a.) Determine whether damaged structures are located within the Special Flood Hazard Area;

b.) Conduct damage assessments for those damaged structures located in the SFHA, and;

c.) Make a reasonable attempt to notify owner(s) of damaged structure(s) of the requirement to obtain a building permit / floodplain development permit prior to repair, rehabilitation, or reconstruction.

(18) Perform such other inspections as may be required to insure compliance with the other provisions of this Regulation.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 209 Regulation Controlling The Size, Location, Character, Appearance And Other Pertinent Features Of All Exterior Signs

Chapter 9 Inspection, Removal and Safety. Rule 9.1 Inspection. All signs shall be inspected at least annually by the Sign Enforcement Official or his delegate compliance with this Ordinance.

33 Miss. Admin. Code Pt. 209, R. 9.2 Permit Number Display

All signs requiring a permit shall display, in the lower right hand corner, the sign permit number and expiration date (where applicable) in lettering and numerals three/fourths inches (3/4") in height.

3986855.1/00520.00006 Rule 9.3 Maintenance. All signs and components thereof shall be kept in good repair and in safe, neat, clean and attractive condition.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)
Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 209, R. 9.4 Removal of Sign

The Sign Enforcement Official shall give written notice for the removal of any permanent sign erected or maintained in violation of this Ordinance. Upon failure to comply with this notice within thirty (30) days, the Sign Enforcement Official shall remove the sign. Temporary signs erected or maintained in violation of the Ordinance may be removed by the Sign Enforcement Official without notice. The Sign Enforcement Official shall remove any sign immediately and without notice if the sign presents an immediate threat to the safety of the public. Any cost of sign removal shall be at the expense of the property owner. See Part 209 Chapter 4 for additional removal requirements for temporary signs.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 209, R. 9.5 Abandoned Signs

A sign shall be removed by the owner when the business which it advertises is no longer conducted on the premises. If the owner fails to remove the sign, the Sign Enforcement Official shall give the owner thirty (30) days written notice to remove it. Upon failure to comply with this notice, the Sign Enforcement Official shall have the sign removed at the expense of the property owner.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 10 Administration and Penalties. Rule 10.1 Enforcement. The Sign Enforcement Official is hereby authorized and directed to enforce all of the provisions of this Ordinance. Upon presentation of proper credentials, the Sign Enforcement Official or his duly authorized representative may enter at reasonable times any building, structure, or premises on the District property to perform any duty imposed upon him by this Ordinance. The Sign Review Committee shall be appointed by the Board.

33 Miss. Admin. Code Pt. 209, R. 10.2 Variances

A variance may be granted by Sign Review Committee for location of signs only.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 209, R. 10.3 Appeal from Decision of the Sign Enforcement Official

The decision of the Sign Enforcement Official may be appealed to the Sign Review Committee. Decisions of the Sign Review Committee may be appealed to the General Manager. All appeals shall be submitted in writing to the Sign Enforcement Official within thirty (30) days of the decision. The Appellant shall sight the specific Sign Ordinance rule applicable to the decision rendered and the grounds for the appeal of the decision. The Sign Review Committee must render a written decision on appeal within thirty (30) days of receipt of the appeal by the Sign Enforcement Official, and the matter will then be forwarded to the General Manager for a decision. The General Manager will render a written decision within sixty (60) days of receipt of the appeal from the Sign

3986855.1/00520.00006 Enforcement Official unless there is a mutual agreement for a time of extension. The appeal of the decision of the General Manager shall be as provided by law.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 209, R. 10.4 Penalties

Any person, firm or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be fined not more than Fifty Dollars ($50.00). Each day's continuance of a violation shall be considered a separate offense and punishable as such. The owner of any sign, building or premises, or part thereof, where anything in violation of this Ordinance shall be placed, or shall exist, and any person who may have knowingly assisted in the commission of any such violation, shall be guilty of a separate offense.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 209, R. 10.5 Severability

If any section or provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the Ordinance as a whole, or any part thereof, other than the part so declared invalid.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 209, R. 10.6 Current Regulations Control

All Regulations heretofore adopted on the subject of these Regulations are hereby repealed, and the provisions of this Regulation are substituted in the place thereof.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 209, R. 10.7 Effective Date

This Ordinance shall be in force and take effect thirty (30) days from and after its adoption.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 210 Regulation Setting Forth Procedures And Fees For The Production Of Public Records Of The Pearl River Valley Water Supply District Pursuant To The State Public Records Act.

33 Miss. Admin. Code Pt. 210, R. 1.2 Definitions

(a) Identifiable Public Record: A public record is identifiable if a reasonably specific description of the record, such as the date, the subject matter and persons involved, or other identifier that will permit location or retrieval of the record, is given in the request for production. Identification of leases or assignments of leases require a subdivision name and lot number. (b) Working Day: A working day is any day other than a weekend, state holiday, federal holiday, or other day on which by executive order the District is authorized to be closed.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 210, R. 1.3 Procedure

(a) Records Available: All identifiable public records of the District not exempt pursuant to §25-61-9 and §25-61-11 of the Public Records Act or other applicable law or judicial decision are available for inspection or copying, or both, pursuant to the procedures herein. (b) Request in Writing: All requests shall be in writing, shall request the production or copying of identifiable public records, shall be signed by the person or persons requesting the records, and shall list the requester's address and telephone number. (c) District Response: Within three working days after the date of the receipt of the request, the District shall notify the requesting party whether the record(s) requested can be located and whether the record(s) can be legally disclosed. If the record is to be disclosed, the District shall give an estimate of the total fee for compliance with the request. Upon payment of the fee estimate, the District shall produce the record(s)

3986908.1/00520.00006 requested for inspection or copying no later than seven (7) working days from the date of the request, but in no event shall production of the record(s) be later than fourteen (14) working days from the date of request for the production of the records. (d) Denials: Any denial of a request shall be in writing signed by the General Manager of the District, and shall contain a statement of the specific exemption relied upon for the denial.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 210, R. 1.4 Confidentiality Notice

(a) Notice of Request: For the purpose of providing notice of a request for inspection, examination, copying or reproduction to a third party that has submitted trade secrets or confidential commercial or financial information, pursuant to §25-61-9 of the Public Records Act, twenty-five (25) days from the mailing of written notice to the third party shall be deemed a reasonable period after which the requested identifiable public record(s) shall be released, unless otherwise exempt from the Public Records Act. Notice to the third party of such request shall be made by the District within three (3) working days from the date of the request for production.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 210, R. 1.5 Fees

(a) Costs: A fee reasonably calculated to reimburse the District the actual cost of searching, reviewing, reproducing and transmitting copies of public records shall be paid in advance of complying with a request, as follows: (i) Basic search, review and reproduction charge: $10.00 minimum search fee plus $.50 per page. Search, review and reproduction must be performed at District offices during a work day, and must be performed by District personnel except as provided in Part 208 Rule 1.5 (a) (vii). Search, review and reproduction fee includes transmittal by U.S. first class mail. (ii) Certification of authenticity: $5.00 for each certificate. (iii) Records delivered via FAX: additional charge per transmission of $1.00 per page. (iv) Records delivered by overnight delivery: additional charge of $25.00 per delivery. This charge will be waived for customers who provide an account number for direct billing through Federal Express. (v) Additional charge of $5.00 per item for documents retrieved from off-site storage.

3986908.1/00520.00006 (vi) Database printout requests from available database will be charged a fee calculated on a per-request basis, depending on the volume and complexity of information requested, but not less than $.50 per page. (vii) For extensive searches and reproduction of records, the General Manager may allow the person making the request to perform a search and reproduction on District premises in lieu of these tasks being performed by staff of the District, provided it is done in a non-disruptive manner. (b) Search: There shall be a minimum search charge of $10.00 if the record requested is not found, or if it is determined to be exempt from public disclosure. An additional charge of $30.00 per request shall be made for staff hours spent in resolving any legal or policy questions concerning the request, but no other charge for staff time shall be made.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Chapter 2 Miscellaneous. Rule 2.1 Expedited Requests. Expedited requests for services in emergency situations that cannot wait for scheduled handling will be charged an additional handling fee of $20.00.

33 Miss. Admin. Code Pt. 210, R. 2.2 Method of Payment

Fees and charges shall be paid by check or money order made payable to the District or by Visa or MasterCard credit or debit cards. A charge of $40.00 per item will be assessed for checks returned for insufficiency.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

33 Miss. Admin. Code Pt. 210, R. 2.3 Repeal of Previous Rules and Regulations

(a) All previously promulgated rules or regulations that are inconsistent with any provisions set forth above are hereby repealed. (b) Conflicts between this regulation and existing statutes or statutes hereinafter make relating to access to public PRVWSD records and fees charged shall be resolved in favor of the statute as then in effect.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 211 Tree Preservation Ordinance

33 Miss. Admin. Code Pt. 211 Tree Preservation Ordinance

1 3986981.1/00520.00006 Title 33: River and Waters

Part 211: Tree Preservation Ordinance Introduction. It shall be unlawful for any person, firm or corporation to cut or remove any tree within the Reservoir Project Area without first complying with the following requirements: Part 211 Chapter 1: Removal and Preservation Plan. Rule 1.1 Removal and Preservation Plan. A tree removal and preservation plan along with a comprehensive landscape plan must be submitted to the District Building Inspector prior to commencement of tree removal, dirt work or clearing of underbrush. A tree removal and preservation plan shall be prepared by a Registered Forester or Certified Landscape Architect. No building permits will be issued until the plan is submitted to and approved by the District Building Inspector. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 211 Chapter 2: Removal and Preservation Plan Requirements. Rule 2.1 Plan Requirements. The plan must contain the following information: (a) Project name and address. (b) Forester or Landscape Architect name, address, registration number and phone number. (c) Scale, north arrow, property lines. (d) All existing trees on the site, or where there are groups of trees, stands may be outlined. (e) All trees desired to be removed and appraised timber value. (f) All trees and/or groups of trees to be preserved. (g) Details showing the method of protecting trees to be preserved: (h) Tree fences; (i) Slit fences; or, (j) Tree protection signs. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

2 3986981.1/00520.00006 Part 211 Chapter 3: Minimum Tree Saving Requirements/Protected Zone. Rule 3.1 Activities Excluded Within Tree Protective Zones. The "protective zone" of tree(s) to be preserved shall include no less than the total area beneath the canopy of the tree(s) as defined by the farthest canopy dripline of the tree(s) (referenced herein as "Tree Protective Zone"). The following activities must be excluded within Tree Protective Zones: (a) Construction site activities such as parking, materials storage, concrete washout, chemical spills, or similar activities which would compact or contaminate the area. (b) In the event of cut or fill, excavation or the laying of utility lines within the protected zone, the method of preservation for trees that are to be preserved shall be consistent with accepted landscape industry practices. Trees to be preserved must be protected from the following damage which may occur from the development and construction process: (i) Direct physical root damage; (ii) Indirect physical root damage (soil compaction, sedimentation of erosion material, etc.); and, (iii) Trunk and crown disturbances. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 211 Chapter 4: Credit Units. Rule 4.1 The lessee or assignee of the property affected shall provide and maintain the necessary protection and preserve a minimum of fifteen (15) credit units (determined in accordance with Table A and Table B attached) of existing trees per acre (or pro-rata portion of an acre) excluding the acreage in any building's foot print. In the event existing trees do not meet the minimum credit units or existing trees were removed during the construction process, additional trees must be planted until a minimum of 15 credit units is met. The tree density shall be calculated by multiplying the number of trees of each diameter by the unit credits. This calculation shall be made for both trees saved (Table A) and trees planted (Table B). Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 211 Chapter 5: Tree Removal Permit. Rule 5.1 Tree Removal Permit. Trees in the following areas may not be removed without a Tree Removal Permit from the employee designed by the General Manager as the District's Forester: (a) A minimum of sixty (60) feet on each side of a stream - a well-defined natural channel that may or may not have flow, depending on the season of the year.

3 3986981.1/00520.00006 (b) Areas that are set aside by special design of the Board of Directors of the District and buffer areas between adjoining developments or commercial developments. This provision shall not, however, prevent the lessee or assignee of a single-family lot, after a final subdivision plat has been filed, from removing any tree within 30 feet from a dwelling or up to 30% of existing trees on a lot without a tree removal permit. Source: Miss. Code Ann. § 51-9-127 (Rev. 2000) Part 211 Chapter 6: Inspection. Rule 6.1 Inspection. The District's General Manager, Forester, Environmental System Planner or Building Inspector shall have the right to inspect and stop all construction within a disputed area if any tree removal is not in compliance with this Tree Preservation Policy or if minimum standards are not being met. If deemed necessary in the sole opinion of the District's General Manager, Forester, Environmental System Planner or Building Inspector, all construction and/or development activity on the entire leased premises shall cease until acceptable safeguards are in place to insure compliance with this Tree Preservation Policy.

4 3986981.1/00520.00006 TABLE A TREES SAVED CONVERSION FROM TREE DIAMETER IN INCHES TO TREE DENSITY UNITS FOR TREES REMAINING ON SITE.

Diameter Units Diameter Units Diameter Units 4 .75 20 3.75 36 6.75 5 .90 21 3.90 37 6.90 6 1.10 22 4.10 38 7.10 7 1.30 23 4.30 39 7.30 8 1.50 24 4.50 40 7.50 9 1.70 25 4.70 41 7.70 10 1.90 26 4.90 42 7.90 11 2.10 27 5.10 43 8.00 12 2.25 28 5.25 44 8.25 13 2.40 29 5.40 45 8.40 14 2.60 30 5.60 46 8.60 15 2.80 31 5.80 47 8.80 16 3.00 32 6.00 48 9.00 17 3.20 33 6.20 49 9.20 18 3.40 34 6.40 50 9.40 19 3.60 35 6.60

5 3986981.1/00520.00006 TABLE B TREES PLANTED CONVERSION FROM TREE DIAMETER IN INCHES TO TREE DENSITY UNITS FOR PROPOSED NEW TREES. Diameter Units Diameter Units 2 .75 9 2.25 3 .90 10 2.50 4 1.10 11 2.80 5 1.40 12 3.10 6 1.50 13 3.40 7 1.80 14 3.70 8 2.00

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

Part 212 Regulation Governing Use, Installation And Testing Of Cross Connection Lines

33 Miss. Admin. Code Pt. 212 Regulation Governing Use, Installation And Testing Of Cross Connection Lines

1 3986992.1/00520.00006 Title 33: River and Waters

Part 212: Cross connection Lines - REPEAL

Part 213 No Waiver

Chapter 1 No Waiver Rule 1.1 General. Nothing contained herein shall affect the operation and maintenance of the Ross Barnett Reservoir nor shall anything contained herein be construed to waive the sovereign immunity of the District or anyone acting on behalf of the District, in whole or in part. If any provision of this ordinance is deemed invalid, such fact shall not affect enforcement of other provisions of this ordinance. This ordinance as renumbered and recodified shall be in full force and effect from and after June 1, 2011; however, all provisions of this Ordinance shall remain in full force and effect as initially adopted by the Board of Directors of the District.

33 Miss. Admin. Code Pt. 213, R. 1.2 Titles

All titles listed in these Regulations are for convenience of use and compliance with required format and do not limit, alter or amend the substance of any regulation.

History

Source: Miss. Code Ann. § 51-9-127 (Rev. 2000)

YAZOO MISSISSIPPI DELTA JOINT WATER MANAGEMENT DISTRICT YAZOO MISSISSIPPI DELTA JOINT WATER MANAGEMENT DISTRICT

Part 501 Part 501: General Administrative Rules of the Yazoo Mississippi Delta Joint Water Management District

Chapter 1 Organization and Method of Operation of the District

33 Miss. Admin. Code Pt. 501, R. 1.1 Board of Commissioners

The Yazoo Mississippi Delta Joint Water Management District is an agency of the State of Mississippi created pursuant to the Joint Water Management Districts Law, Title 51, Chapter 8 of the Mississippi Code of 1972, as amended. The District is composed of seventeen member counties: Bolivar, Carroll, Coahoma, DeSoto, Holmes, Humphreys, Issaquena, Leflore, Panola, Quitman, Sharkey, Sunflower, Tallahatchie, Tate, Tunica, Washington, and Yazoo. The District is governed by a Board of Commissioners organized pursuant to the provisions of Section 51-8-21, Mississippi Code of 1972, as amended. The Board of Commissioners is made up of at least one representative from each member county, to be appointed by the Board of Supervisors of each such county; provided each member county shall be entitled to one representative for every $100,000,000, or fraction thereof in excess of $100,000,000, in total assessed valuation, based upon such valuation for the immediately preceding tax year.

The District’s Board of Commissioners is vested with all powers afforded to it by the provisions of the Joint Water Management Districts Law, Title 51, Chapter 8 of the Mississippi Code of 1972, as amended, and those specific power enumerated in its Charter.

The District employs an Executive Director who is in charge of the routine operation of the business of the District.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 1.2 Purpose and Responsibilities

The District was established pursuant to the purpose provided in Section 51-8-3, Mississippi Code of 1972, as amended. The District was specifically created for the purpose of promoting and maintaining water resources conservation, management, and development; establishing and implementing water supply, water quality, and water utilization plans and programs; sponsoring, acquiring, or construction of devices or measures to insure predictability adequate water supplies for domestic, agricultural, commercial and industrial uses; participating in water resources planning and management programs of appropriate state, federal, and local agencies; financing such measures; and such other functions as from time to time may be necessary or appropriate to implement the policies of the District.

The District does not intend in its inception to perform any function now being performed in the District’s geographical area by existing drainage districts, rural water associations or districts, or other similar existing entities created under the laws of the State of Mississippi and the District shall in all events do any and all things necessary to avoid duplication of services, benefits, programs, projects, plans and functions with the state or federal governments, agencies, or departments thereof.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 1.3 Method of Operation

All policy and rulemaking authority of the District is vested in the Board of Commissioners. The Board of Commissioners delegates the routine operations and personnel supervision to the District’s Executive Director.

The District conducts is business operations Monday through Friday at its Office located at 384- B Stoneville Road, Stoneville, Mississippi 38776. The District’s regular business hours are 8:00 A.M. to 5:00 P.M.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

Chapter 2 Public Information and Requests

33 Miss. Admin. Code Pt. 501, R. 2.1 Contacting the Yazoo Mississippi Delta Joint Water Management District’s Office

The Yazoo Mississippi Delta Joint Water Management District’s Office may be

contacted in person, by U.S. Mail, courier mail, email, telephone, and facsimile. The District also maintains and provides a website on the Internet at www.ymd.org.

(a) The District Office is located at 384-B Stoneville Road, Stoneville, Mississippi 38776. (b) The District Office’s mailing address is Post Office Box 129, Stoneville, Mississippi 38776. (c) Courier mail may be delivered to the physical location listed above in subsection (a). (d) The District’s Office may be contact be telephone at (662) 686-7712 and by facsimile at (662) 686-9078. (e) The primary contact email address for the District’s Office may be located on the homepage of its website at www.ymd.org.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 2.2 Requesting Information

The District strives to serve the public by making information regarding its services and operations readily available. Printed information may be obtained from the District’s Office. There may be a charge, depending on the nature of the information. The public is also encouraged to visit the District’s website at www.ymd.org.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 2.3 Public Records Requests

With regard to public records, it is the policy of the District to provide for inspection and copying of its identifiable public records by all people of the State of Mississippi who request such inspection or copying, consistent with the provisions of the Mississippi Public Records Act, in Sections 25-61-1 through 25-61-19, Mississippi Code of 1972, as amended, and other applicable laws and judicial decisions. The Districts public record request rules and regulations can be found in the rules of Chapter 9 herein.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

Chapter 3 Administrative Procedures for Informal Appearances before the Board of Commissioners of the District

33 Miss. Admin. Code Pt. 501, R. 3.1 Board of Commissioners Meetings

The District’s Board of Commissioners meetings are held on the third Wednesday of each month and begin promptly at 10:00 A.M. in the Board Room of the District’s Office. Board of Commissioner meetings are open to the general public and are conducted pursuant to the Mississippi Open Meetings Act and related laws. For further information regarding the Board of Commissioners meetings, please contact the District’s Office using the resources provided herein at Part 700, Chapter 2, Rule 2.1.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 3.2 Oral Presentations

Any person wishing to appear before the Board of Commissioners to make an oral presentation may do so by sending his or her request, in writing, to the Board of Commissioners, in care of the District’s Executive Director, at the District’s Office. Requests must be received no later than ten (10) days prior to the Board of Commissioners meeting for the requestor to be considered to be placed on the meeting’s agenda. Requests should state clearly the name, address, telephone number, subject matter to be addressed, and an estimated length of time for the presentation. Any special needs such as audio/visual equipment or other needs should be addressed in the request. Requestors will be notified as soon as possible after the receipt of the request as to whether or not they will be placed on the Board of Commissioners meeting agenda.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 3.3 Comments During Meetings

Persons attending a Board of Commissioners meeting who may wish to comment on a topic appearing on the agenda for that meeting may request to be recognized during the “Public Comment” portion of the meeting. Such requests must be made to the Board of Commissioners Chairman, immediately prior to the meeting. Such requests will only be granted if time allows. Groups of persons with similar interests or opinions that they wish to express to the Board of Commissioners are urged to put forward one spokesperson for the group.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

Chapter 4 Administrative Procedures for Formal Hearings on and Review of District Rules and Regulations

33 Miss. Admin. Code Pt. 501, R. 4.1 Purpose and Scope of Rules

The following rules shall control public hearings and hearings within the jurisdiction of the District, required by the Mississippi Administrative Procedures Law. This chapter applies to all oral proceedings held for the purpose of providing the public with an opportunity to make oral presentations or written input on proposed new rules, amendments to rules, and proposed repeal of existing rules before the District pursuant to the Administrative Procedures Law. These rules do not apply to actions not subject to the Administrative Procedures Law.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 4.2 Request for an Oral Proceeding

When a political subdivision, an agency, or a person requests an oral proceeding in regards to a proposed rule adoption, the requestor must submit a printed, typewritten, or legibly handwritten request that adheres to the following requirements:

(a) Each request must be submitted on 8.5” x 11” white paper.

(b) The request may be in the form of a letter addressed to the District or in the form of a pleading as if filed with a court. (c) Each request must include the full name, telephone number, and mailing address of the requestor. (d) All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 4.3 Notice of Oral Proceeding

Notice of the date, time, and place of all oral proceedings shall be filed with the Secretary of State’s Office for publication in the Administrative Bulletin. The District shall provide notice of oral proceedings to each requestor. The oral proceedings will be scheduled no earlier than twenty (20) days from the filing of the notice with the Secretary of State. The Chairman of the Board of Commissioners, or a designee who is familiar with the substance of the proposed rule, shall preside at the oral proceeding on a proposed rule.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 4.4 Written Comments

Written comments on proposed rules and regulations are encouraged and they may be submitted to the District’s Executive Director or to the individual designated in the Administrative Procedures Act filing notice as the person to contact. If public oral proceedings are conducted, written comments must be submitted no later than three (3) days before such proceeding in order to be considered during the hearing. Written comments presented at the oral proceeding will be included as part of the record of the oral proceeding.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 4.5 Public Participation Guidelines

Public participation shall be permitted at oral proceedings in accordance with the following:

(a) At an oral proceeding on a proposed rule, persons may make statements and present documentary and physical submissions concerning the proposed rule. (b) Persons wishing to make oral presentations at such a proceeding shall notify the District at least five (5) business days prior to the proceeding and indicate the general subject of their presentations. The presiding officer in his or her discretion may allow individuals to participate that have not contacted the District prior to the proceeding. (c) At the proceeding, those who participate shall indicate their names and addresses, identify any persons or organizations they may represent, and provide any other information relating to their participation deemed appropriate by the presiding officer. Each group or organization should nominate only one person to make the presentation unless the presiding officer determines that the group or organization cannot reasonably be represented by a single spokesperson.

(d) The presiding officer may place time limitations on individual presentations when necessary to assure the orderly and expeditious conduct of the oral proceeding. To encourage joint presentations and to avoid repetition, additional time may be provided for persons whose presentations represent the views of other individuals as well as their own views. (e) Persons making presentations are encouraged to avoid restating matters that have already been submitted in writing. Written materials may, however, be submitted at the oral proceeding. (f) Where time permits and to facilitate the exchange of information, the presiding officer may open the floor to questions or general discussion. The presiding officer may question participants and permit the questioning of participants by other participants about any matter relating to that rule-making proceeding, including any prior written submissions made by those participants in that proceeding. No participant shall be required to answer any question. (g) There shall be no interruption of a participant who has been given the floor by the presiding officer, except that the presiding officer may in his or her discretion interrupt or end the partisan's time where the orderly conduct of the proceeding so requires or when the allotted time has expired.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 4.6 Conducting Oral Proceedings

The presiding officer shall have authority to conduct the proceeding in his or her discretion for the orderly conduct of the proceeding. The presiding officer shall (i) call proceeding to order; (ii) give a brief synopsis of the proposed rule, a statement of the statutory authority for the proposed rule, and the reasons provided by the District for the proposed rule; (iii) call on those individuals who have contacted the District about speaking on or against the proposed rule; (iv) allow for rebuttal statements following all participant's comments; (v) adjourn the proceeding.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 4.7 Submissions and Records

Physical and documentary submissions presented by participants in an oral proceeding shall be submitted to the presiding officer. Such submissions become the property of the District, part of the rulemaking record, and are subject to the District’s public records request procedure. The District may record oral proceedings by stenographic or electronic means.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

Chapter 5 Requests for Declaratory Opinions

33 Miss. Admin. Code Pt. 501, R. 5.1 Who May Request a Declaratory Opinion

Any person with a substantial interest in the subject matter may request the District for a declaratory opinion by following the specified procedures.

(a) “Substantial interest in the subject matter” as used in this chapter means a party is directly affected by the District's administration of the laws within the District's primary jurisdiction. (b) “Primary jurisdiction of the District” as used in this chapter means the District has a constitutional or statutory grant of authority in the subject matter at issue.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 5.2 Issuance of a Declaratory Opinion

The District will issue declaratory opinions regarding the applicability to specified facts of:

(a) a statute administered or enforceable by the District, (b) a rule promulgated by the District, or (c) an order issued by the District.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 5.3 Reasons for Refusal of Declaratory Opinion Request

(a) the matter is outside the primary jurisdiction of the District; (b) lack of clarity concerning the question presented; (c) there is pending or anticipated litigation, administrative action, or other adjudication which may either answer the question presented by the request or otherwise make an answer unnecessary; (d) the statute, rule, or order on which a declaratory opinion is sought is clear and not in need of interpretation to answer the question presented by the request; (e) the facts presented in the request are not sufficient to answer the question presented; (f) the request fails to contain information required by these rules or the requestor failed to follow the procedure set forth in these rules;

(g) the request seeks to resolve issues which have become moot, or are abstract or hypothetical such that the requestor is not substantially affected by the rule, statute, or order on which a declaratory opinion is sought; (h) no controversy exists concerning the issue as the requestor is not faced with existing facts or those certain to arise which raise a question concerning the application of the statute, rule, or order; (i) the question presented by the request concerns the legal validity of a statute, rule or order; (j) the request is not based upon facts calculated to aid in the planning of future conduct, but is, instead, based on past conduct in an effort to establish the effect of that conduct; (k) no clear answer is determinable; (l) the question presented by the request involves the application of a criminal statute or sets forth facts which may constitute a crime; (m) the answer to the question presented would require the disclosure of information which is privileged or otherwise protected by law from disclosure; (n) the question is currently the subject of an Attorney General's opinion request; or, (o) the question has been answered by an Attorney General's opinion.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 5.4 Similar Pending Request

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 5.5 Litigation

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 5.6 Question of Law

Where a request for a declaratory opinion involves a question of law, the District may refer the matter to the State Attorney General.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 5.7 Preemptive Determination

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

Chapter 6 Written Requests Required

33 Miss. Admin. Code Pt. 501, R. 6.1 Written Request

Each request must be printed, typewritten or in legible handwriting. Each request must be submitted on standard business letter size paper (8 1/2" by 11"). Requests may be in the form of a letter addressed to the District or in the form of a pleading as might be addressed to a court. Information should be sent to the attention of the Executive Director.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.2 Mailing of Request

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.3 Certification of Request

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.4 Limit of Request

A request must be limited to a single transaction or occurrence.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.5 Requirements of Request

Each request must contain the following:

(a) a clear identification of the statute or rule at issue; (b) the question for the declaratory opinion; (c) a clear and concise statement of all facts relevant to the question presented; (d) the identify of all other known persons involved in or impacted by the factual situation causing the request including their relationship to the facts, name, mailing address and telephone number; and, (e) a statement sufficient to show that the person seeking relief has a substantial interest in the subject matter.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.6 Form and Content of Opinion

The terms of the proposed opinion suggested by the requestor may be submitted with the request, but the form and content of the opinion remains within the discretion of the District.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.7 Argument

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.8 District's Actions

Within forty-five (45) days after the receipt of a complete request for a declaratory opinion which complies with the requirements of these rules, the District shall, in writing:

(a) issue an opinion declaring the applicability of the specified statute, rule, or order to the specified circumstances; (b) agree to issue a declaratory opinion or a written statement by a specified time but no later than ninety (90) days after receipt of the written request; or (c) decline to issue a declaratory opinion, stating the reasons for its action.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.9 45-Day Period

The forty-five (45) day period shall begin on the first State of Mississippi business day that the request is received by the District.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.10 60-Day Holding Period

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.11 Notice to Third Parties

The District may give notice to any person that a declaratory opinion has been requested and may receive and consider data, facts, arguments and opinions from persons other than the requestor.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 6.12 Schedule of Interested Persons

The requestor, or his attorney, shall append to the request for a declaratory opinion a listing of all persons, with addresses, known to the requestor who may have an interest in the declaratory opinion sought to be issued, and shall mail a copy of the request to all such persons. The requestor or his attorney shall certify that a copy of the request was mailed to all such persons together with this statement: "Should you wish to participate in the proceedings of this request, or receive notice of such proceedings or the declaratory opinion issued as a result of this request, you should contact the District within twenty days of the date of this request."

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

Chapter 7 Hearings Optional

33 Miss. Admin. Code Pt. 501, R. 7.1 Scheduling a Hearing

If the District, in its sole discretion, deems a hearing necessary or helpful in determining any issue concerning a request for a declaratory opinion, the District may schedule such a hearing. Notice of the hearing shall be given to all interested parties unless waived. Notice mailed by first class mail seven (7) calendar days prior to the hearing shall be deemed appropriate.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 7.2 Procedure for Conducting a Hearing

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 7.3 Participation in a Hearing

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

33 Miss. Admin. Code Pt. 501, R. 7.4 Inspection

Declaratory opinions and requests for declaratory opinions shall be available for public inspection and copying in accordance with the District’s public records rules and regulations. All declaratory opinions and requests shall be indexed by name and subject.

Declaratory opinions and requests which contain information which is confidential or exempt from disclosure under the Mississippi Public Records Act or other laws shall be exempt from this requirement and shall remain confidential.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.103(2)

Chapter 8 Procedures for Conducting Evidentiary Hearings

33 Miss. Admin. Code Pt. 501, R. 8.1 Requesting an Evidentiary Hearing

The following procedures in this Chapter 8 shall govern formal hearings and requests for reconsideration. Any person, firm or corporation that has been aggrieved by a final decision of the District and its Board of Commissioners may request an evidentiary hearing within fourteen (14) days from the date of the Board action. The District can order and require and evidentiary hearing on any matter within its jurisdiction.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 8.2 Setting the Hearing

The District shall fix the time and place of such hearing and shall notify all parties thereto by certified mail. Individuals coming before the District may appear personally, by counsel, or both, produce witnesses and cross-examine witnesses. The Chairman of the Board of Commissioners, or his or her designee, shall act as the presiding officer.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 8.3 Witnesses

The District is not authorized to issue subpoenas. Parties to an evidentiary hearing are responsible for assuring the attendance of their witnesses.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

33 Miss. Admin. Code Pt. 501, R. 8.4 Pre-filing Testimony and Documents

(a) Direct testimony of each witness to be relied upon during the hearing shall be pre-filed with the District and copies of the same shall be mailed to all parties seven (7) days prior to the hearing, except that in the discretion of the District this requirement may be modified or waived. Parties which call “adverse” witnesses shall not be required to submit pre-filed testimony as contemplated in this paragraph. At least seven (7) days prior to the hearing, all parties involved shall exchange copies of all exhibits that will be introduced during the hearing indicating the party offering and the witness who will sponsor each. The presiding officer may permit an exception to these requirements when witnesses or exhibits are necessary for rebuttal or impeachment. Failure to submit the above referenced exhibits and the pre-filed testimony of witnesses and exhibits may result in the exclusion of same from the hearing. Also, the presiding officer, in his or her

discretion, may call a pre-hearing conference prior to any hearing to establish hearing guidelines and clarify issues. (b) Should the District waive the above mentioned requirement for pre-filed testimony, then at least seven (7) days before the hearing, all parties involved shall exchange a list of all witnesses each will call during the hearing, a brief statement of the testimony expected from each witness, and copies of all exhibits.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(b)

Chapter 9 Inspection and Copying of Public Records Pursuant to the State Public Records Act

33 Miss. Admin. Code Pt. 501, R. 9.1 Policy

It is the policy of the District to provide for inspection and copying of its identifiable public records by all people of the State of Mississippi who request such inspection or copying, consistent with the provisions of the Mississippi Public Records Act, Section 25-61- 1 through 25-61-19, Mississippi Code of 1972, as amended, and other applicable laws and judicial decisions.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 9.2 Definitions

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 9.3 Procedure

(a) Records Available: All identifiable public records of the District not exempt pursuant to §25-61-9 and §25-61-11 of the Public Records Act or other applicable law or judicial decision are available for inspection or copying, or both, pursuant to the procedures herein. (b) Request in Writing: All requests shall be in writing, shall request the production or copying of identifiable public records, shall be signed by the person or persons requesting the records, and shall list the requester's address and telephone number. (c) District Response: Within three (3) working days after the date of the receipt of the request, the District shall notify the requesting party whether the record(s) requested can

be located and whether the record(s) can be legally disclosed. If the record is to be disclosed, the District shall give an estimate of the total fee for compliance with the request. Upon payment of the fee, the District shall produce the record(s) requested for inspection or copying no later than seven (7) working days from the date of the request, but in no event shall production of the record(s) be later than fourteen (14) working days from the date of request for the production of the records. (d) Denials: Any denial of a request shall be in writing signed by the District’s Executive Director and shall contain a statement of the specific exemption relied upon for the denial.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 9.4 Confidentiality Notice

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 9.5 Fees

(a) Costs: A fee reasonably calculated to reimburse the District the actual cost of searching, reviewing, reproducing, and transmitting copies of public records shall be paid in advance of complying with a request, as follows:

(i) Basic search, review, and reproduction charge: $10.00 minimum search fee plus $.50 per page. Search, review, and reproduction must be performed at District offices during a workday, and must be performed by District personnel. Search, review, and reproduction fee includes transmittal by U.S. first class mail. (ii) Certification of authenticity: $5.00 for each certificate. (iii) Records delivered via FAX: additional charge per transmission of $1.00 per page. (iv) Records delivered by overnight delivery: additional charge of $25.00 per delivery. This charge will be waived for customers who provide an account number for direct billing through Federal Express. (v) Additional charge of $5.00 per item for documents retrieved from off-site storage.

(vi) Database printout requests from available databases will be charged a fee calculated on a per-request basis, depending on the volume and complexity of information requested, but not less than $.50 per page. (vii) For extensive searches and reproduction of records, the Executive Director may allow the person making the request to perform a search and reproduction on District premises in lieu of these tasks being performed by staff of the District, provided it is done in a non-disruptive manner.

(b) Search: There shall be a minimum search charge of $10.00 if the record requested is not found, or if it is determined to be exempt from public disclosure. An additional charge of $30.00 per request shall be made for staff hours spent in resolving any legal or policy questions concerning the request, but no other charge for staff time shall be made.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 9.6 Expedited Requests

Expedited requests for services in emergency situations that cannot wait for scheduled handling will be charged an additional handling fee of $20.00.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 9.7 Method of Payment

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

33 Miss. Admin. Code Pt. 501, R. 9.8 Repeal of Previous Rules and Regulations

(a) All previously promulgated rules or regulations that are inconsistent with any provisions set forth above are hereby repealed. (b) Conflicts between this regulation and existing statutes or statutes hereinafter made relating to access to public District records and fees charged shall be resolved in favor of the statute as then in effect.

Sources: Miss. Code Ann. §51-8-27; Miss. Code Ann. §25-43-2.104(a)

Part 502 Part 502: Authority and Procedures for Accepting, Reviewing, and Recommending Action on Applications for Permits to Divert or Withdraw for Beneficial Use the Public Waters of the State of Mississippi

Chapter 1 Procedures for Accepting, Reviewing, and Recommending Action on Applications for Permits to Divert or Withdraw for Beneficial Use the Public Waters of the State of Mississippi

33 Miss. Admin. Code Pt. 502, R. 1.1 Accepting Permit Applications

Upon receipt of a permit application to divert surface water or withdraw groundwater, staff members within the Yazoo Mississippi Delta Joint Water Management District permitting program will review the permit application and ensure that it is complete, insofar as it contains all information requested and required by the terms of the application, and signed by the appropriate signatories. In the event that the permit applicant fails to provide a fully complete application with appropriate signatures, those staff members may contact the applicant for the needed information to correct minor errors or omissions, or may return the incomplete application to the applicant to address the deficiencies.

History

Source: Miss. Code Ann. §51-8-27

33 Miss. Admin. Code Pt. 502, R. 1.2 Complete Applications

(a) Upon determining that a permit application for a new permit for the diversion of surface water or withdrawal of groundwater includes the required information and signatures, staff members within the Yazoo Mississippi Delta Joint Water Management District permitting program will mail the applicant a prepared notice of intent to use waters of the state along with instructions for publishing the notice. The applicant shall publish the notice of intent one time in a newspaper of general circulation in the county in which the proposed well/diversion point will be located. The applicant must pay the expense of the publication and must direct the newspaper to forward a proof of publication to the Yazoo Mississippi Delta Joint Water Management District permitting program. Upon receipt of the proof of publication by the Yazoo Mississippi Delta Joint Water Management District permitting program, the application will be considered complete.

(b) An application for renewal or modification of a permit for diversion or withdrawal for beneficial use of public waters of the State of Mississippi, a replacement well, or a stand- by well shall be deemed complete when such staff members determine that it contains all information requested and required by the terms of the application, and signed by the appropriate signatories.

History

Source: Miss. Code Ann. §51-8-27

33 Miss. Admin. Code Pt. 502, R. 1.3 Recommendation on Completed Applications

After determining that the application process is complete pursuant to Rule 1.2 herein, staff members within the Yazoo Mississippi Delta Joint Water Management District permitting program will proceed on those applications as follows:

(a) For completed applications for new diversions or withdrawals where no public comments were received during the public comment period and such applications are consistent with the current permitting rules, regulations, and policies and the Yazoo Mississippi Delta Joint Water Management District Water Management Plan, the Yazoo Mississippi Delta Joint Water Management District Permitting Director is authorized to submit a recommendation for permit issuance to the Mississippi Environmental Quality Permit Board within ten (10) working days from the date the application is considered complete. If an application is not consistent with the permitting rules, regulations, or policies or the YMD Water Management Plan, the Yazoo Mississippi Delta Joint Water Management District Permitting Director shall place such permit or permits on the agenda for the next subsequent Yazoo Mississippi Delta Joint Water Management District Board of Commissioners meeting. Each commissioner in attendance shall be provided a copy of the permit application and a statement explaining such inconsistencies. Following action by the Yazoo Mississippi Delta Joint Water Management District Board of Commissioners, the Permitting Director shall submit a recommendation consistent with the Board’s action to the Mississippi Environmental Quality Permit Board.

(b) For completed applications for new diversions or withdrawals where a public comment or comments were received and the Mississippi Department of Environmental Quality has provided the Yazoo Mississippi Delta Joint Water Management District a copy of the comment or comments and all responses, the Yazoo Mississippi Delta Joint Water Management District Permitting Director shall place such permit or permits on the agenda for the next subsequent Yazoo Mississippi Delta Joint Water Management District Board of Commissioners meeting. Each commissioner in attendance shall be provided a copy of the permit application, the public comment or comments, and all responses. Following action by the Yazoo Mississippi Delta Joint Water Management District Board of Commissioners, the Permitting Director shall submit a recommendation consistent with the Board’s action to the Mississippi Environmental Quality Permit Board.

(c) For completed applications for renewal or modification of a permit for diversion or withdrawal for beneficial use of public waters of the State of Mississippi, a replacement well, or a stand-by well, the Yazoo Mississippi Delta Joint Water Management District Permitting Director is authorized to submit a recommendation for permit issuance to the Mississippi Environmental Quality Permit Board within ten (10) working days from the

date the application is considered complete, if the applications are consistent with the current permitting rules, regulations, and policies and the YMD Water Management Plan. If an application is not consistent with the current permitting rules, regulations, or policies or the YMD Water Management Plan, the Yazoo Mississippi Delta Joint Water Management District Permitting Director shall place such permit or permits on the agenda for the next subsequent Yazoo Mississippi Delta Joint Water Management District Board of Commissioners meeting. Each commissioner in attendance shall be provided a copy of the permit application and a statement explaining such inconsistencies. Following action by the Yazoo Mississippi Delta Joint Water Management District Board of Commissioners, the Permitting Director shall submit a recommendation consistent with the Board’s action to the Environmental Quality Permit Board.

History

Source: Miss. Code Ann. §51-8-27

33 Miss. Admin. Code Pt. 502, R. 1.4 Board Ratification of Staff Recommendations

The Board of Commissioners of the Yazoo Mississippi Delta Joint Water Management District shall act on the permit application recommendations for issuance provided by the Yazoo Mississippi Delta Joint Water Management District Permitting Director pursuant to Rule 1.3(a) and (c).

(a) The Board of Commissioners of the Yazoo Mississippi Delta Joint Water Management District will review and ratify recommendations for permit issuance to the Mississippi Environmental Quality Permit Board made by the Permitting Director. Such review and ratification will occur at each monthly meeting of the Board of Commissioners immediately following the date the recommendation for permit issuance was submitted by the Permitting Director to the Mississippi Environmental Quality Permit Board.

History

Source: Miss. Code Ann. §51-8-27

33 Miss. Admin. Code Pt. 502, R. 1.5 Electronic Submission of Permit Application Materials

Once an application is completed, the staff members within the Yazoo Mississippi Delta Joint Water Management District permitting program will ensure that all application information and documentation has been entered, scanned, and uploaded to the Mississippi Water Information System.

History

Source: Miss. Code Ann. §51-8-27

33 Miss. Admin. Code Pt. 502, R. 1.6 Paper Submission of Permit Application Materials

Originals of all application materials and documents will be submitted to the Mississippi Department of Environmental Quality by the staff members within the Yazoo Mississippi Delta Joint Water Management District permitting program after such materials and documents have been submitted electronically pursuant to the terms of Rule 1.5 herein. Such submission will occur on a weekly basis.

History

Source: Miss. Code Ann. §51-8-27

33 Miss. Admin. Code Pt. 502, R. 1.7 Permit Application Fees

For each permit application, except applications for permit modifications, the staff members within the Yazoo Mississippi Delta Joint Water Management District permitting program shall collect the associated application fee, as required by the Mississippi Department of Environmental Quality. The Yazoo Mississippi Delta Joint Water Management District staff will mail a check for the collected application fees to the Mississippi Department of Environmental Quality on a monthly basis.

History

Source: Miss. Code Ann. §51-8-27