Energy, Utilities, and Telecommunication Summer Study Committee Meeting September 2, 2014 Thomas W. Easterly, P.E., BCEE Commissioner IN Department of Environmental Management 1

IDEM Agenda Combined Sewer Systems State Revolving Loan Fund Water Reuse 2

Combined Sewer Systems Combined sewer systems are sewers that are designed to collect rainwater and sewage in the same pipe. During periods of heavy rain, wastewater volume can exceed sewer capacity. The system is designed to overflow and discharge excess wastewater directly to streams. 3

How Combined Sewer Systems Work River CSO Outfall Regulator Wet Weather Combined Sewer To WWTP WWTP Combined Flow to WWTP and Outfall SOILS BEDROCK 4

Combined Sewer Systems 108 Combined Sewer Systems in Indiana communities. All are required to devise plans (Long Term Control Plans) to dramatically reduce discharges directly to streams. 107 of 108 communities have legally enforceable requirements to develop plans. 45 Communities have completed their plans. 5

Long Term Control Plans Costs –Cost for implementing plans depends on several factors. Population of Community Number of Outfalls Nature of Collection System –Range of Costs $700,000 - $1.6 billion State total costs exceed $3.6 billion 6

Long Term Control Plans Timeframes to Implement Plans –Depends on the plan complexity and the community’s ability to pay for the plan— generally limited to 2% of median household income. –Range from 5-20 years. Financing Assistance: –USDA Rural Development –SRF 7

Indiana Finance Authority State Revolving Fund (SRF) ) Loan Program Clean Water & Drinking Water ●Low Interest Loans Current rates 2.00% to 2.80% ● Additional Interest Rate Reduction Climate/Extreme Weather Green/Sustainable Projects Non-point Source Projects ● Grants (Limited to low to moderate income areas) $ 2.5 Million in Clean Water in SFY 2015 $ 3.0 Million in Drinking Water in SFY 2015 $ Million in Clean Water $ 18 Million in Drinking Water

SRF Program History Capitalization Federal Capitalization Grants The Clean Water SRF Program and the Drinking Water Program are capitalized by Federal Capitalization Grants and Proceeds of Bonds (including 20% State Match bonds) The SRF Programs have received over $1.18 billion in Federal Capitalization Grants through Federal fiscal year 2014 Historical Federal Capitalization Grants ($mn) Federal Grants by Fiscal Year Federal FYClean WaterDrinking Water $295,901, ,020,160$25,371, ,452,9728,687, ,454,2999,105, ,916,5318,989, ,645,9889,159, ,128,8668,955, ,919,9769,398, ,939,2819,749, ,969,58111,201, ,135,42712,166, ,793,85611,484, ,472,65211,367, ,399,54811,367, ARRA 94,447,50027,212, ,104,00022,638, ,588,00015,709, ,061,00014,970, ,176,00014,046, ,790,00014,348,000 Total $926,317,353$255,926,100

SRF Results Clean Water SFY 2014SFY 2013SFY 2012SFY 2011 Number of Loans Total Amount$88,885,400$304,541,000$139,956,000$128,114,800 Savings$29,804,591$78,838,135$48,499,096$54,247,530 Drinking Water SFY 2014SFY 2013SFY 2012SFY 2011 Number of Loans Total Amount$14,755,401$39,189,000$58,737,612$39,635,862 Savings$9,515,803$15,320,419$17,126,814$22,128,363 Grand Total SFY 2014SFY 2013SFY 2012SFY 2011 Number of Loans Total Amount$103,640,801$343,730,000$198,693,612$167,750,662 Savings$39,320,394$94,158,554$65,625,910$76,375,893 10

 441 Clean Water loans closed  205 Drinking Water loans closed  Over 300 Communities served  Over $3.6 Billion in loan closings  Over $3.3 Billion disbursed to communities  Over past 4 years, $275 Million interest savings SRF Results Cumulative as of June 30,

Range of SRF Loans Largest Individual Loan ▪ City of Terre Haute, $139,371,000 ▪ Closed on 12/13/2012 ▪ 2.14% Smallest Individual Loan ▪ Town of Lewisville, $55,000 ▪ Closed on 6/28/2002. ▪ 3.50% City with the Largest Collective Borrowings ▪ City of Fort Wayne, $204,335,005 ▪ combined Clean Water and Drinking Water 12

The SRF State Fiscal Year 2015 Project Priority Lists (Q1) identify $616,048,050 in infrastructure needs. Identified Needs SFY 2015 ■ Drinking Water ■ Funding Allocation ■ $88,695,442 ■ $25 Million (6 projects) ■ Clean Water ■ $335,320,750 Large Systems ■ $150 Million (11 projects) ■ $192,031,858 Small Systems ■ $75 Million (12 projects) To view the Project Priority Lists: SRF 2015 Priority Lists 13

Water Reuse On a basic level, we reuse water all of the time. –Industry: Power plants use water for cooling and return it to the river. –Municipalities: Indianapolis takes in water from the White River and returns it and Martinsville reuses that water. –Agriculture: Uses water and excess is returned to streams. 14

Water Reuse State Water Reuse Programs –Often driven by persistent drought conditions. –Differ depending on the state. Types of Water Reuse –Direct Potable Reuse –Non-Potable Water Reuse Irrigation Dust Suppression Industrial Processes Fire Protection 15

Water Reuse Some states that employ water reuse programs –Florida –California –Texas – Nevada – Arizona –New Jersey 16

Water Reuse Indiana Indiana neither encourages or discourages the reuse of water. Indiana has rules that allow the use of wastewater effluent for irrigation purposes. Land Application Permits required. Land Application rule is open for revision. Indiana would consider approving the direct reuse of wastewater as drinking water on a case by case basis. 17

Questions? Tom Easterly Commissioner Indiana Department of Environmental Management (317)