Water Pollution Control Revolving Fund: Point source

The Water Pollution Control Revolving Fund or State Revolving Fund (SRF) provides loans to municipalities for planning, design and construction of wastewater and stormwater treatment projects. The loan program is administered by two state agencies: The Minnesota Pollution Control Agency (MPCA) and the Public Facilities Authority (PFA), which is housed in the Minnesota Department of Employment and Economic Development.

Municipalities are eligible to receive loans if the project is to be publicly owned. Public wastewater treatment projects are eligible for loan funds if it addresses a need for wastewater transportation or treatment.

Applying for a loan

A community must complete these five steps to get a loan through the Water Pollution Control Revolving Fund.

• Step 1 - Project Priority List
• Step 2 - Facility Plan Requirements
• Step 3 - Intended Use Plan
• Step 4 - Certification
• Step 5 - Final Approval Process

Step 1: The municipality requests placement on the Project Priority List (PPL) by submitting a completed PPL data sheet, a letter requesting placement and required attachments.

What is the Project Priority List (PPL)?

The PPL is a priority listing of the projects. Minnesota Rules ch. 7077 require the MPCA to develop and maintain a project priority list of municipalities that have a need for a new or upgraded wastewater treatment system. Stormwater treatment projects are now eligible to apply for placement on the PPL.

Each year, the MPCA and PFA establish a schedule of submittal dates for the PPL and Intended Use Plan (IUP) that must be adhered to.

• Water Pollution Control Revolving Fund 2009 Project Priority List and Intended Use Plan
• 2009 IUP Notice

How does a municipality get a project placed on the PPL?

Submit a written request to the MPCA on the PPL data sheet, which includes:

• A description of the need for the new or upgraded wastewater treatment system.
• If known, a description of the proposed project and its cost.
• As required in the PPL data sheet, a system without a NPDES or SDS permit, the information submittal must include:
  1. the total number of structures with wastewater flows in the project service area; and
  2. a map of the project service area which has an identifiable scale, identifies all the structures with wastewater flows, and has the maximum impact zone clearly encircled.
• Project Priority List
• PPL Wastewater Application
• PPL Stormwater Application

Step 2: The project must submit a facilities plan and receive preliminary approval of the plan by a MPCA engineer.

Facility plan requirements

• Must have preliminary approval from MPCA staff before project is placed on the Intended Use Plan (IUP).
• Before adopting, municipality must hold at least one public hearing to discuss the proposed project.
• Must be prepared and signed by a professional engineer registered in the state of Minnesota.
• Facility plans for individual sewage treatment systems (ISTS) designed to treat 5000 gallons of less per day must be prepared and signed by either a professional engineer or an ISTS designer.

A facilities plan must address the following:

1. Description and evaluation of existing system which must consider:
   • Age
   • Condition
   • Design Capacity
   • Treatment capabilities of each treatment unit
   • The system's ability to meet current of proposed permit requirements
   • For existing ISTSs, a survey must also be prepared which identifies whether or not each ISTS project in the project area conforms to Minn. Rules ch.7080
     
     
2. Data describing existing residential and non-residential wastewater flows and loadings reported on a form provided by the MPCA.
   
   
3. Data describing future residential and non-residential wastewater flows and loadings with the next 20 year period, on a form provided by the MPCA, based on:
   • Projected residential growth
   • Projected non-residential growth
   • Signed letters of intent from significant industrial users
     
     
4. A discussion of treatment alternative's that were considered during the facility selection process and are capable of meeting the applicable effluent, water quality and public health requirements for 20 years. The discussion must include:
   • A cost-effective comparison of the alternatives that were considered
   • A site assessment of the existing soil and ground water conditions conducted and signed by a professional engineer;
   • For ISTSs designed to treat less than 5,000 gallons per day, a site assessment must be done by either a professional engineer or a certified evaluator/designer
   • An evaluation of the impact of the alternatives on all existing wastewater treatment systems, including sewers and lift stations
   • A comparison of the potential environmental impacts
     
     
5. A description of the selected treatment alternatives and the complete wastewater treatment system of which it is a part, including:
   • The specific design parameters of all individual treatment units and the complete treatment system
   • Estimated construction, annual operation and maintenance, and equipment replacement costs
   • Estimated annual sewer service charges
   • A determination of whether pretreatment of any industrial wastes is needed in order to avoid disruption of the proper operation of the proposed system
   • An evaluation of how and where sludge or septage resulting from the treatment process will be disposed.
     
     
6. An analysis of the 25- and 100- year flood elevations in relation to the proposed project site or sites, showing that the project will be operable during a 25-year flood and protected during a 100-year flood.
   
   
7. An analysis of how interim treatment will be accomplished during construction to meet permit requirements.

Along with the facilities plans, please submit the following:

1. For ISTS that serve more than one structure, an assurance from the municipality stating that all property owners agree to be part of the system, to participate in the construction project, and to finance future operation, maintenance, and replacement.
2. The mailing list used for public noticing on a form provided by the MPCA.
3. A public hearing summary.
4. The municipality's formal resolution adopting the facilities plan.
5. A list of ordinances and/or intermunicipal agreements required for the project's implementation.
6. A signed treatment agreement with each significant industrial user.
7. A completed environmental information sheet.
8. For the construction of new treatment systems, copies of all notifications, certifications and comments received from other government units pertaining to the initiation of the facilities planning process. For further information on the planning requirements, please open and view the following fact sheet: Notification Requirements for New Wastewater Treatment Systems. This fact sheet provides information on what the requirement is and who needs to do it.

Step 3: Once the project gets preliminary approval of the facilities plan, the project is then eligible to be listed on the Intended Use Plan (IUP).

Placement is required regardless of receiving a planning, design, or construction loan. Although planning and design loans can be placed on the IUP without the facilites plan submittal or approval, projects requesting a construction loan must have preliminary approval of the facilities plan before it can be placed on the IUP.

What is the intended use plan (IUP)?

• A document prepared annually by Public Facilities Authority (PFA) according to EPA requirements.
• Includes the list of wastewater projects proposed to receive loans.
• Based on requests received from municipalities with eligible projects.
• Contact the Public Facilities Authority (PFA) directly to be placed on the IUP.

To be eligible for placement on the IUP:

• The project must be on the current Project Priority List (PPL).
• For a construction loan, project must have preliminary approval of facilities plan.

To request placement on the IUP:

• The municipality submits a written request to the PFA, which includes:
  • a brief description of the project
  • an updated project cost estimate and, if different, the requested loan amount
  • the proposed project schedule
  • a breakdown of estimated quarterly cash flow needs

Step 4: The MPCA is also responsible for certifying projects to the PFA for funding. Requirements for certification are as follows:

PLANNING

Certification requirements for planning projects

Municipalities seeking certification for planning projects shall submit:

1. A description of the scope of work and estimated costs that will lead to an approved facilities plan.
2. A schedule for completion and approval of the facilities plan on a form provided by the agency.
3. For individual sewage treatment system projects, a copy of a draft ordinance that adopts the requirements of Minnesota Rules, Chapter 7080, individual sewage treatment standards.

DESIGN

Certification requirements for design projects

Municipalities seeking certification for design projects shall submit:

1. A schedule for completion of plans and specifications.
2. For individual sewage treatment system projects, a copy of a draft ordinance that adopts the requirements of Minnesota Rules, Chapter 7080, individual sewage treatment standards.

CONSTRUCTION

Certification requirements for construction projects

This packet is for municipalities that intend to proceed with the construction of wastewater treatment or collection facilities under the provisions of the Financial Assistance Program.

Certification Requirements:

1. Plans and specifications as required under Minnesota rule part 7077.0274 for the commissioner's review and approval.
2. For wastewater treatment systems that are required to have an NPDES or SDS permit, a certification that the municipality has adopted a sewer charge system that includes:
   • the engineering and accounting data for the flows and loadings of the users of the wastewater treatment system;
   • the estimated annual costs of equipment replacement and operating and maintaining a system;
   • the rates that shall be charged to each user for the cost of operation, maintenance, and equipment replacement; and
   • the rates that shall be charged to each user for the cost of debt retirement for the local capital cost of the treatment system.
3. A copy of the municipality's resolution adopting the sewer service charge system.
4. A certification that the municipality has enacted a sewer use ordinance, sewer rate ordinance, or combined sewer use and sewer rate ordinance that:
   • establishes a rate setting method for user charges;
   • establishes a rate setting method for debt charges;
   • requires separate funding accounts for operation and maintenance, equipment replacement, and debt retirement;
   • establishes financial management procedures for the sewer service charge system;
   • establishes procedures for public noticing sewer service charge system amendments;
   • prohibits new inflow connections to be added to the wastewater treatment system; requires new sewers and connections to be properly designed and constructed; and
   • prohibits toxics and other pollutants to be placed in the municipal wastewater treatment system in amounts or concentrations that endanger public safety or the physical integrity of the treatment system or cause exceedance of permit limitations.
5. An affidavit of publication for the sewer use ordinance and the sewer rate ordinance.
6. For individual sewage treatment system projects, a certification that the municipality has enacted an ordinance that:
   • adopts the requirements of Minnesota Rules, Chapter 7080;
   • prohibits non-sewage discharges from nonresidential structures with wastewater flows or non-sewage discharges from residential structures with a water-using business to individual sewage treatment systems; and
   • establishes a maintenance plan.
7. A certification that the municipality is enforcing the ordinance under item 6 (above).

Step 5: Final approval process

The final steps to receiving a loan include:

• MPCA approves loan certification material
• MPCA certifies loan project to PFA

Links to related sites

• Public Facilities Authority
• Small Cities Development Block Grant
• USDA Rural Development

More information

For more information about the Water Pollution Control Revolving Fund opportunities for point sources, contact Bill Dunn at 651-757-2324.