SAFE, ABUNDANT WATER IS A PRIORITY FOR OKLAHOMA’S FUTURE Oklahoma Water Resources Board Infrastructure Financing Strategies Western States Water Council March 19, 2019 Oklahoma’s economy, security, and quality of life depend on adequate, dependable sources of clean water. Julie Cunningham Executive Director

Oklahoma Water Resources Board To protect and enhance the quality of life for Oklahomans by managing and improving the state’s water resources to ensure clean and reliable water supplies, a strong economy, and a safe and healthy environment. Governor-appointed Board of Directors 9-member Executive Director Administrative Services Financial Assistance Water Quality & Monitoring Planning & Management

Financial Assistance Division $4.2+ billion over 2,193 loans and grants. Assist communities and rural water districts in financing water and wastewater infrastructure improvements. Clean Water State Revolving Fund Loans DW State Revolving Fund Loans (w/ ODEQ) State Revenue Bond Loan Program Loans REAP Grants Emergency Grants OWRB Loan and Grant Programs Funding Sources— Federal dollars Debt Issuance Loan Repayments Interest on Bond Loan Program Reserve General appropriations*** OWRB programs allow communities access to more aggressive interest rates This rate is often better than what most systems can get in the open market SRF AAA and FAP AA+ Access to these rates saves systems and their customers $$$ over traditional financing options

CWSRF Loan Program Eligible Entities: Loan program subsidized by a grant from EPA intended to implement the Clean Water Act Eligible Projects (may include, not limited to): Wastewater treatment & Collection Water Meters Non-point Source Stormwater Dam Rehabilitation Water Reuse Eligible Entities: Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 40% below AAA market rate CWSRF 2/27/2018 2/27/2019 5 year term 1.91% 1.78% 10 year term 2.17% 1.96% 15 year term 2.36% 20 year term 2.51% 2.34% 30 year term 2.66% 2.55%

Loan Forgiveness Available CWSRF Program Updates Call for Projects for SFY 2020 Project Priority List (PPL) Public Meeting May 29th @ 1pm Loan Forgiveness Available Population 3,300 or less Phase I projects (Planning & Design): Must result in a Permit to Construct Phase II projects (Construction): Priority given to entities that received Phase I this year

Oklahoma City Water Utilities Trust CWSRF – OKC Utilities Trust - Atoka Reservoir Project to increase the capacity of the spillway & replace the existing chute. Improvements to address stormwater drainage issues. Project Price Tag = $53,250,000 Dam Improvements Oklahoma City Water Utilities Trust Design and install a compound labyrinth spillway with wider chute, new stilling basin, and increase the top of the dam. Non-Point Source (NPS) project for construction to increase the capacity of the Atoka Dam spillway and replace the existing chute. Being a 319 project, approval was obtained from the Oklahoma Conservation Commission for NPS eligibility

DWSRF Loan Program Co-administered with DEQ Loan program subsidized by a grant from EPA intended to implement the Safe Drinking Water Act Eligible Entities: Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 Eligible Projects (may include, not limited to): Drinking Water Treatment Distribution Water Meters Water Storage Regionalization/Consolidation Disinfection By-product (DBP) Correction Picture-BAMA

Loan Forgiveness Available DWSRF Loan Program 30% below AAA market rate Loan Forgiveness Available Up to $100,000 forgiven For projects to address Disinfectant Byproduct violations Phase I is available to Parent systems DWSRF 2/27/2018 2/27/2019 5 year term 2.15% 1.99% 10 year term 2.45% 2.21% 15 year term 2.68% 20 year term 2.84% 2.66% 30 year term 3.02% 2.89%

DWSRF – So. Delaware County Regional Water Authority Regionalization through construction of new treatment plant and additional improvements.   Project Price Tag = $15.7 Million OWRB Project Amount = $3 Million DWSRF Loan Forgiveness = $1.8 Million Other Funds: RUS Loan - $6.7 Million RUS Grant - $3.9 Million IHS Grant - $1.6 Million Cherokee Nation Grant - $347K Local Funds - $90K

FAP Loan Program Eligible Entities: State revenue bond loan program Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 Eligible Projects Any project related to water and/or sewer system improvements or refinancing of existing debt of an eligible entity for these project types. Can combine water/sewer projects in one loan Picture-Enid CW At AAA market rate FAP Feb. 2017 Feb. 2019 29.6 year term 3.95% 3.80%

FAP Loan Program Updates New, Flexible Local Reserve Criteria: Up to 10% of the loan amount Super Debt Coverage Ratio of 1.4x instead of 1.25x Minimum credit rating of A- affirmed in last 18 months Surety policy in the amount of not less than the cash reserve requirement Picture-Norman CW

Emergency Grants Eligible Entities: Point based program designed to assist systems facing an EMERGENCY as designated in our rules which threaten life, health or property Eligible Entities: Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 Maximum grant available $100,000 15% local contribution Open funding cycle – as funds are available 60 point minimum for approval up to 120 Eligible Projects: Water supply reservoirs, storage tanks, distribution systems, water/wastewater treatment systems, collection systems… Picture is at Cherokee-New pumps

REAP Grants Eligible Projects: Point based program designed to assist smaller systems that lack sufficient fiscal capacity Eligible Entities: Counties, Towns, Municipalities, Public Works Authorities , School Districts & Districts formed under Title 82 Maximum grant available $150,000 Available for cities or towns with a population of 7,000 or less (population of 1,750 or less have higher priority) Available for Rural Water Districts with less than 525 non-pasture customers UPDATES: Rule Change Adds Sustainability as a Scoring category Increases maximum points available from 115 to 125 Eligible Projects: Water treatment & distribution, wastewater treatment & collection, water acquisition… Picture is at Kiowa-repainting water tower

REAP Grants 10 points if you have and have implemented a FSP 6 points if you have a FSP but have not yet implemented 3 points if you have not developed a FSP but are willing to develop and implement one

total lending contributed funds State $113.7M 3% 4% OWRB $2.15B 52% 73% Fed $680.4M 16% 23% Repayments $1.21B 29%

Oklahoma Comprehensive Water Plan 50-year plan characterizing water supplies, demands, options and public policy to meet the needs of all Oklahomans 5-year public input and technical studies process with numerous stakeholders and partners Overarching State Water Policy Recommendations Wealth of technical data, information and many technical studies through numerous workgroups 13 Watershed Planning Region Reports Just as that Joint Legislative Resolution in 1955 sought to understand the concerns over water supply and solutions of citizens, the 2012 Comprehensive Water Planning process conducted the most robust public participation process in state history. After 3 years and thousands of logged comments, this process led to the recommendation of 8 priority policy recommendations.   Today the OWRB, along with many other state and federal agencies, local governments, private companies, and citizens are working to implement those recommendations by our citizens. Our infrastructure financing programs, along with several other government and private lending entities, are making strides to meet our $82 Billion 2060 need for water treatment; our statewide water quality and quantity monitoring networks are tracking the health and availability of streams, lakes, and groundwater like never before; the water supply resiliency goals and funding from the Legislature are allowing us to complete studies of water allocation based on the amount of water stored in our aquifers, the Water for 2060 Act is helping us focus on stretching existing water supplies, finding untapped, marginal quality waters and identifying new conservation, efficiency, and reuse practices in every sector. Today there are also many regional water planning and regionalization efforts ongoing, one of which we will be hearing about tomorrow from the Tulsa area. With all of our collective input we have built on the groundwork laid by so many people and we will continue doing so if we keep the discussion going!

OCWP Priority Recommendation Infrastructure Financing Address projected $82+ billion water/wastewater infrastructure need by 2060- new and rehabilitation OWRB’s 5 grant & AAA-rated loan capacity to satisfy 60% and specifically address small and medium communities. In 2012, SQ 764 established Water Infrastructure Credit Enhancement Reserve Fund to provide additional leveraging capacity to fund more projects!

Oklahoma Funding Agency Coordinating Team Fed. & state water financing agencies—drinking water, sewer, and green projects for public entities. Meet quarterly to identify best funding source, cross-train funding agencies, adopt streamline application/guidance. Members Oklahoma Water Resources Board USDA Rural Development Oklahoma Department of Commerce Oklahoma Council of Governments Indian Health Service Community Resource Group Oklahoma Department of Environmental Quality

Capacity Development Assistance Contract with ORWA provides technical assistance, operator/member training, sustainability planning. Borrower meetings provide compliance guidance, program updates, and upcoming funding opportunities. Educate systems on funding solutions to help meet Oklahoma’s Water for 2060 goal through non-point source, stormwater, green infrastructure, water/ energy conservation and reuse Offering new no-cost cloud solution to help loan recipients manage federal labor and contract reporting (Davis-Bacon) OWRB Marketing Plan selected for EPA pilot program re: state revolving fund marketing and outreach.

Financial Assistance Dashboard

Thank You! Julie Cunningham – Executive Director Oklahoma Water Resources Board 3800 North Classen Boulevard Oklahoma City, OK 73118 405.530.8800 • www.owrb.ok.gov Julie Cunningham – Executive Director Oklahoma Water Resources Board 3800 North Classen Boulevard Oklahoma City, OK 73118 405.530.8800 • www.owrb.ok.gov

for water and wastewater infrastructure 2 grant programs 3 loan programs for water and wastewater infrastructure Emergency Grants Rural Economic Action Plan Grants Financial Assistance Loan Program (FAP) Clean Water State Revolving Fund (CWSRF) Drinking Water State Revolving Fund (DWSRF)