How are States Using Drinking Water Revolving Fund Set-Asides? Question: What do the following small system programs have in common? A small system electronic asset mapping project in Nevada Free consolidation assessments and facilitations in Texas New equipment to help with energy efficiency audits in Utah A licensed operator internship program in New Jersey Answer: They were all funded with Drinking Water State Revolving Fund set-asides. While there are many critical infrastructure needs the DWSRF program addresses across the nation, sometimes valuable non-infrastructure opportunities such as these can get lost in the shuffle. A new analysis from the EPA is helping shine a light on the wide variety of capacity-development projects funded via set-asides that have been implemented across the country. Taking a look at this analysis is particularly helpful if state-level decision-makers need ideas about how to use set-aside funding, or have questions about set-aside funding in general. Using data from state DWSRF plans and capacity development reports, the analysis can help answer these needs and questions. It shows that states are using set-aside funding in the following nine (9) areas: Training and Technical Assistance, Financial Management and Rate Studies, Source Water Protection, Program Implementation (Capacity Development), Water and Energy Efficiency, Partnerships, Data Management, and Emerging Contaminants. What is important to note here is that there is a large amount of flexibility inherent in the program, which is a great thing when you are looking for ways to support important capacity-building programs in your own backyard. What exactly is a set-aside fund? According to the EPA, set-asides are portion of each state's annual capitalization grant that support water system capacity, operator certification, source water protection, and training/technical assistance to PWSs. Set-aside funding cannot be used for water system infrastructure projects. Instead, the set-asides support "activities necessary to ensure safe and affordable drinking water by: (1) providing states with flexible tools to assist water systems with training, technical assistance and pre-construction activities; and (2) extending and enhancing the impact of DWSRF funding by ensuring that water systems have the technical, managerial and financial capacity to obtain a loan and to effectively maintain their resources." States can take up to approximately 31 percent of their capitalization grant for set-aside funding. Each state can develop its own funding balance between infrastructure and non-infrastruture DWSRF loans, and this balance can change year-to-year. Finally, states should review their Public Water Supply System Program priorities on a regular basis to determine the effectiveness of set-aside usage. Happy planning! December 18, 2017 By Brenda Koenig Asset Management, Capacity Development, Funding capacity development, drinking water state revolving fund, drinking water state revolving fund set-asides, dwsrf, dwsrf set-asides, financial management, operator training, set-asides, technical assistance 0 0 Comment Read More »
Featured Video: Supplying Community Water Managing a rural utility can sometimes feel overwhelming and lonely. When you're the only ones in your community dealing with challenging infrastructure, bill collecting, and complicated accounting, it can feel like you're the only people on earth to face these issues. Add in the little quirks of a small rural community, and it can feel like no one could possibly understand what you're dealing with or what you're trying to accomplish. The truth, though, is that the challenges facing rural communities are nothing new. This week's video is obviously several decades old at this point, but the issues facing the featured communities will probably sound familiar. From aging infrastructure to inadequate rate structures, these utility boards found ways to tackle issues that are still relevant today. Note that the Community Resource Group mentioned in the video recently changed their name to Communities Unlimited. Communities Unlimited is a regional partner of the Rural Community Assistance Corporation (RCAP). To find the RCAP regional partner offering technical assistance in your area, check the regional map. You can also browse RCAP's handbooks for small utilities and utility boards by going to our document database and searching for the host Rural Community Assistance Partnership and the document type Manuals/Handbooks. The issues facing your utility may be tough, but they're not unique. There are technical assistance providers and other utilities that have faced them before and found a way to make it work. We and our partners at RCAP want to provide you with the resources to do that too. And if your utility has come up with a particularly good solution to a problem, let us know! September 29, 2017 By Cassia Smith Asset Management, Capacity Development featured videos, financial management, water utility boards, asset management, water utility management 0 0 Comment Read More »
Featured Video: Formulate Great Rates If you're a utility manager or a member of a water utility board, there's a good chance you've had to deal with utility rates at some point. If not, there's an even better chance that a rate-setting conversation is in your future. As the nation's infrastructure ages, many communities are coming to terms with the fact that their utility rates have been too low to allow for replacement costs. Whether you've been forced into an expensive repair by a catastrophic failure or simply know a major piece of your infrastructure is living on borrowed time, you may have no choice but to consider a rate hike and other fundraising measures. But even if your position is not that dire, utility rates have to respond to many complex factors including inflation, fluctuations in number of customers, and changing water treatment standards. If the whole thing sounds overwhelming, you're not alone. The Rural Community Assistance Partnership (RCAP) has produced several resources to guide utilities through this process. Their handbook Formulate Great Rates provides guidance for small communities that need to conduct water system rate studies. They also recorded a 2-part companion webinar for the handbook, the first video of which is linked below. The webinars are presented by RCAP experts with experience in rate-setting and help explain some of the more challenging sections of the handbook. This first webinar is about half an hour long. Formulate Great Rates: A webcast on setting rates in small-community utilities (Part 1) from RCAP on Vimeo. If you need more help understanding the handbook, or need a hand with rate-setting in general, RCAP's regional partners offer technical assistance for rural communities. You might also want to check out the Environmental Finance Center's rate dashboards. September 15, 2017 By Cassia Smith Asset Management, Business Mindset, Capacity Development, Value of Water asset management, financial management, rate setting, utility board resources, water utility management, capacity development, featured videos, rate-setting 0 0 Comment Read More »