1. Capacity Development 101 Strengthening the Protection of America’s Drinking Water Bob Dunlevy, EPA Region 7 Capacity Development and Operator Certification Contact Capacity Development 101 Webinar November 5, 2015

2. Purpose To help new Federal and State staff with the basic understanding of capacity development Promote collaboration and program understanding among state coordinators 2

3. Webinar Overview Statutory Background Defining Capacity Development Reports History and Tools Collaboration 3

4. Statutory Background 4

5. SDWA: 1996 Amendments Amendments address concerns through: –Emphasis on comprehensive public health protection Multiple barriers of protection, from source to tap –Increased funding –Prevention tools and programs –Increased enforcement authority –More public participation –Reliance on best available science –Risk-based standard setting 5

6. 1996 Amendments and Drinking Water: Creation of the State Revolving Loan Fund Program [§1452] 6 Loans to Public Water Supplies Set-asides Program Assistance Program for Disadvantaged Systems Training and Certification of Small System Operators Assistance to Tribal Water Supplies

7. State Revolving Loan Fund Program [§1452] 7 Conditions to Receive Full Annual Grant Allotment § 1452(a)(1)(G)(I & ii) –Operator Certification – Section § 1419, 20% –Capacity Development – Section § 1420, 20% Condition for System to Receive a Loan § 1452(a)(3) –Technical, Managerial, and Financial Capabilities to ensure compliance

8. 1996 Amendments and Capacity Development [§1420] Develop TMF capacities of New CWS and NTNCWS to reliably deliver safe drinking water §1420(a) Strengthen TMF capacities of all PWSs to reliably deliver safe drinking water §1420(c) 8

9. DWSRF under the 1996 Amendments [§1452] Affordable financing to help PWSs achieve and maintain compliance Supports states in offsetting the costs of administering water programs –2%: Small system technical assistance –4%: Administrative and technical assistance –10%: State program management –15%: Local assistance and other state programs 9

10. Defining Capacity Development 10

11. What is Water System Capacity? Ability to plan for, achieve, and maintain compliance with applicable drinking water standards Capacity has three components and sufficient capabilities in all 3 areas is necessary to have capacity 11

12. What is Water System Capacity Development? The process for acquiring and maintaining adequate TMF to consistently provide safe drinking water Providing framework for states and water systems to work together to acquire and maintain TMF to meet the SDWA public health protection objectives 12

13. Technical Capacity The physical and operational ability of a water system to meet SDWA requirements, including the adequacy of physical infrastructure and the technical knowledge and capability of personnel 13

14. Assessing Technical Capacity Source water adequacy and protection Infrastructure adequacy and improvement Technical knowledge and implementation 14

15. Managerial Capacity The ability of a water system to conduct its affairs in a manner enabling the system to achieve and maintain compliance with SDWA requirements, and refers to the system’s institutional and administrative capabilities. 15

16. Assessing Managerial Capacity Ownership accountability Staffing and organization Effective external linkages 16

17. Financial Capacity The ability of a water system to acquire and manage sufficient financial resources to allow the system to achieve and maintain compliance with SDWA requirements 17

18. Assessing Financial Capacity Revenue sufficiency Fiscal management and controls Credit worthiness 18

19. 19

20. Why Build Capacity? Manage challenges systems face, including: –Regulatory compliance –Current and future infrastructure needs –Insufficient revenue and associated salaries of operator –Aging workforce and high turnover –Educational needs –Water security 20

21. New System Capacity Development Program§1420(a) A State shall receive only 80 percent of the allotment that the State is otherwise entitled to receive under section 1452 (relating to State loan funds) unless the State has obtained the legal authority or other means to ensure that all new community water systems and new nontransient, noncommunity water systems commencing operation after October 1, 1999, demonstrate technical, managerial, and financial capacity with respect to each national primary drinking water regulation in effect, or likely to be in effect, on the date of commencement of operations. 21

22. New System Capacity Development Program§1420(a) Basis of Authority New System Control Points 22

23. Existing System Capacity Development Strategy §1420(c)(1) In general.--Beginning (2003)..., a State shall receive only... 80 percent in each subsequent fiscal year, of the allotment that the State is otherwise entitled to receive under section 1452 (relating to State loan funds), unless the State is developing and implementing a strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity. 23

24. Existing System Capacity Development Strategy §1420(c)(2) In preparing the capacity development strategy, the State shall consider, solicit public comment on, and include as appropriate - 24

25. 5 Elements to Consider in a State’s Capacity Development Strategy §1420(c)(2)(A-E) Methods or criteria used to prioritize systems Factors that encourage or impair capacity development Utilization of SDWA authority/resources Establishing a baseline and measure improvements in capacity Procedures used to identify “interested persons” 25

26. Results Report of Findings Public Comment on State Developed Strategy 26

27. Reports 27

28. Annual State Implementation Report New Systems Program –In each subsequent fiscal year the State must demonstrate ongoing implementation of a fully functioning program. Annual report to EPA must include: –Any changes to the state’s legal authority –Any changes to the state’s control points –List of new systems that started operation within the past 3 years 28

29. Annual State Implementation Report Existing Systems Strategy –The State must describe its current strategy implementation and plans for future implementation. Each year, as a stand-alone submittal or as part of the state’s DWSRF capitalization grant application, the state must provide documentation showing the ongoing implementation of the capacity development strategy. 29

30. Additional Reporting Requirements Triennial report to the Governor §1420(c)(3) –... the efficacy of the strategy and progress made toward improving the technical, managerial, and financial capacity of public water systems in the state Historical SNC List replaced with PWSs identified as Enforcement Priorities §1420(b)(1) –ETT score of 11 points or more 30

31. History and Tools 31

32. History and Tools a.Stakeholder Processes (1998 and 2000) b.Approval of New Systems Program (1999) c.Approval of Existing Systems Strategy (2000)* d.Development of Multi Regional Workshops (2000 - 2011) e.First Annual Reports (New Systems 2000, Existing systems 2001) 32 * Hawaii

33. History and Tools f.§1420(b)(2) Report to the Administrator (2001) g.§1420(c)(3) Report to the Governor (2002) h.EPA Response to OIG report and recommendations (2004) i.National Capacity Development and Operator Certification Workshop (2005) j.Asset Management (2003)/CUPSS (2007) k.Reenergizing Capacity Development (2010) 33

34. Collaboration 34

35. Operator Certification and Training Assisting Capacity Development Reports Assisting Capacity Development Reports –Annual Reports –Report to the Governor 35

36. Operator Certification and Training Federal Regulations mention operator 29 times (40 CFR part 141) Qualified Operator/Personnel Certified Operator 36

37. Parts of the Drinking Water Program PWSS Rule Implementation Enforcement Data Management Field Services SRF 37

38. Other State and/or Federal Programs Economic Development Education Labor Veterans Affairs Clean Water Air Public Service Commission Agriculture 38

39. Technical Assistance Providers Rural Water State Affiliates Rural Community Assistance Partnerships Environmental Finance Centers American Water Works Association 39

40. Regional Contacts http://www2.epa.gov/dwcapacity/find-epa-capacity-development-contact Region 1 – Jeff Butensky Region 2 – Bruce Lin Region 3 – Ghassan Khaled Region 4 – Dale Froneberger Region 5 – Sahba Rouhani Region 6 – Amy Camacho Region 7 – Bob Dunlevy Region 8 – Kendra Morrison Region 9 – Daria Evans- Walker Region 10 – Kenneth Fisher 40 HQ – Adrienne Harris

41. Does it pass the straight-face test? 41 Peter Shanaghan