1. Department of the Environment Maryland Water Quality Revolving Loan Fund Financing Stormwater Infrastructure Jag Khuman, Director Maryland Water Quality Financing Administration 410-537-3119 December 7, 2015

2. Water Quality Revolving Loan Fund Federal Funds & 20% State Match Borrower Revenue Bond Proceeds Below Market Interest Rate Loans Loan Debt Service Repayments Investment Earnings Debt Service Payments to Bond holders

3. Provides below market interest rate loans to finance Water Quality capital infrastructure Loans up to 100% of project cost. FY 2016 budget = $130 million (Funding capacity can be increased by issuing revenue bonds) Interest Rate (Dec 2015): Standard Rate = 1.50% fixed Disadvantaged = 0.70% fixed Term: Up to 30 years (based on useful life of the asset) Loan Fee: 5% of P&I payment, collected annually with debt service payments (adds ~0.50% to true interest rate on a 20-year term loan ) MD Water Quality Revolving Loan Fund

4. WQRLF - Potential Debt Service Savings

5. Water Resources Reform and Development Act of 2014 (WRRDA) Key Stormwater WQSRF Eligibility Provisions: For measures to manage, reduce, treat, or recapture stormwater or subsurface drainage water. For reusing or recycling wastewater, stormwater, or subsurface drainage water

6. Public Private Partnership (P3) Financing P3 Public Entity (e.g., MS4 Permitted Local Government) P3 Public Entity (e.g., MS4 Permitted Local Government) P3 - Private Entity P3 Master Agreement General Contractor Water Quality Revolving Loan Fund Debt Service Payment in Advance of Due Date Loan Proceeds Trustee Bank (3 rd party/lock box) Trustee Bank (3 rd party/lock box) Payment for work completed Debt Service Payments

7. WQRLF Debt Service Payment Guarantee P3 Public Entity (e.g., MS4 Permitted Local Government) P3 Public Entity (e.g., MS4 Permitted Local Government) P3 - Private Entity P3 Master Agreement General Contractor Private/Capital Market Financing Guarantee Payment to Cure Debt Service Payment Deficiency Loan Proceeds Water Quality Revolving Loan Fund Payment for work completed Debt Service Payments Repayment back to WQRLF for amount of Guarantee used, if any

8. 1800 Washington Boulevard | Baltimore, MD 21230-1718 410-537-3000 | TTY Users: 1-800-735-2258 www.mde.state.md.us Maryland Department of the Environment Maryland Water Quality Financing Administration 1800 Washington Boulevard Baltimore, MD 21230 410-537-3119 www.mde.maryland.gov/wqfa www.mde.maryland.gov/wqfa