Financing Water Infrastructure: The State and Federal Outlook Sarah Pillsbury, Administrator Drinking Water Ground Bureau NH Department of Environmental Services

The Old vs. New “Normal” Sources of Funding Conditions of Funding Changes in the DWSRF and CWSRF Overview

The Old Normal Increasing or at least stable funding levels Conditions known to all and did not vary year to year Relatively minimal reporting Asset renewal optional

Level or reduced funding Annual federal funding…and conditions – e.g. SRF forgiveness, wage rates, Buy American Increased reporting and oversight – e.g. Davis Bacon Asset and financial management expected The New Normal

Waste Water: N and P pollution Stormwater: Improved treatment Drinking Water: DBPs and Source Climate Ready Utilities Regulatory Drivers

State Aid Grant (law prohibits new projects) Municipal Bond Bank Community Development Block Grant – Varies, water competes with other project types Sources of State and Federal Funds

Rural Development – $9M loans, $3M grants State Revolving Loan Funds – $8M DWSRF, $14M CWSRF Federal – $1.769M DWSRF, $?M CWSRF State – DW Grants Direct Appropriation (i.e. earmark) Sources of State and Federal Funds

Sustainable Asset Management Practices Institutional Capacity Responsible Financial Management Practices Cost-effective/Priority Projects General Expectation for Funding (from SB60 Report)

Funder’s Specific Expectations Vary… is the goal

Water Resource Reform and Development Act of 2014 (CWSRF and WIFIA) New State Administrative Rules – Env-DW 1100 and Env- WQ 500 – Funding for Asset Management Programs – Up to 30 year loans CWSRF and DWSRF Updates

Loan Forgiveness – Energy Audits (20K) – Asset Management (30K) – Nonpoint Source Projects (20%) – Sustainability and Affordability (5% +) CWSRF Updates Continued

CWSRF Grant Allocation Formula Review Water Infrastructure Finance and Infrastructure Act (unfunded) – $50M/year, 5 year Pilot (currently unfunded) – $20M min. project, Up to 35 year loan – Funding conditions apply Other WRDDA Changes

Critical need for water infrastructure renewal Level and diminishing state and federal funding Are sustainable practices the “silver lining”? Summary