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RE: Statutory changes to Part 54

What language would you recommend instead? Gbviousty EPA allows the maney to be spent on private lead service line replacemerd, and i can't imagine that they would require the city to operate and maintain the lines (rio city would take on that lability), is there someone at EPA can help us expedite @ review so | can get final language over to the legislature tornorrow? in addition, do we need to clarify that the loans can receive principal forgiveness or in that just internal? Thanks, Maggie

RE: Statutory changes to Part 54

| made the two changes that we discussed yesterday evening- changing the definition to privately owned and wordsmithing the second change in 5409. Thanks for your help with this. Maggie 324.5403 Definitions; P to W. Sec. 5403. As used in this part: (a) “Priority list” means the annual ranked listing of projects developed by the department in section 5406. (b) “Project” means a project related to the planning, design, and construction or alteration of a waterworks system. (c) “Project refinancing assistance” means buying or refinancing the debt obligations of water suppliers if construction activities commenced, and the debt obligation was incurred, after the effective date of this part. (d) “Public water supply” means a waterworks system that provides water for drinking or household purposes to persons other than the supplier of the water, except for those waterworks systems that supply water to only | house, apartment, or other domicile occupied or intended to be occupied on a day-to-day basis by an individual, family group, or equivalent. (e) “State drinking water standards” means rules promulgated under Act 399 that establish water quality standards necessary to protect public health or that establish treatment techniques to meet these water quality standards. xxxEND_PAGE:deq20_b05_208_213_2 (f) “Water supplier’ or “supplier” means a municipality or its designated representative accepted by the director, a legal business entity, or any other person who owns a public water supply. However, water supplier does not include a water hauler. (g) “Waterworks system” or “system” means a system of pipes and structures through which water is obtained or distributed and includes any of the following that are actually used or intended to be used for the purpose of furnishing water for drinking or household purposes: (1) Wells and well structures. (11) Intakes and cribs. (iti) Pumping stations. (iv) Treatment plants. (v) Storage tanks. (vi) Pipelines and appurtenances. (vii) Peivately-owned residential lead service lines. €id) (viii) A combination of any of the items specified in this subdivision. 324.5409 Application for fund assistance; contents; availability of revenue sources; acceptance of applications by department; liability for incurred costs. Sec. 5409. (1) A water supplier whose project plan is approved or under review by the department under section 5407 may apply for assistance from the fund by submitting an application to the department. A complete application shall include all of the following, if applicable, as determined by the department: (a) If assistance is in the form of a loan, financial documentation that a dedicated source of revenue is established, consistent with obligations of debt instruments existing at the time assistance is requested, and pledged to both of the following purposes: (i) The timely repayment of principal and interest. (11) Adequate revenues to fund the operation and maintenance of the project. (b) Evidence of an approved project plan. (c) A certified resolution from a water supplier that is a municipality, or a letter of appointment from a water supplier that is not a municipality, designating an authorized representative for the project. (d) A certification by an authorized representative of the water supplier affirming that the supplier has the legal, institutional, technical, financial, and managerial capability to build, operate, and maintain the 3 xxxEND_PAGE:deq20_b05_208_213_3 project. The water supply does not need to certify it will operate and maintain any portion of the project funded for the replacement privately-owned of residential private lead service lines.

Statutory changes to Part 54

Importance: High (f we are going to clarify that Part 54 can cover replacement of private service lines, is this the best way to do? | made changes to the definition of waterworks systems to include private service lines, and changes the requirement the water supplier had to maintain and operate the private service lines. Please let me know ASAP what you think. Thanks, Maggie 324.5403 Definitions; P to W. xxxEND_PAGE:treasury01_b36_6099_6552_050 Sec. 5403. As used in this part: (a) “Priority list” means the annual ranked listing of projects developed by the department in section 5406. (b) “Project” means a project related to the planning, design, and construction or alteration of a waterworks system. (c) “Project refinancing assistance” means buying or refinancing the debt obligations of water suppliers if construction activities commenced, and the debt obligation was incurred, after the effective date of this part. (d) “Public water supply” means a waterworks system that provides water for drinking or household purposes to persons other than the supplier of the water, except for those waterworks systems that supply water to only 1 house, apartment, or other domicile occupied or intended to be occupied on a day-to-day basis by an individual, family group, or equivalent. (e) “State drinking water standards” means rules promulgated under Act 399 that establish water quality standards necessary to protect public health or that establish treatment techniques to meet these water quality standards. (f) “Water supplier” or “supplier” means a municipality or its designated representative accepted by the director, a legal business entity, or any other person who owns a public water supply. However, water supplier does not include a water hauler. (g) “Waterworks system” or “system” means a system of pipes and structures through which water is obtained or distributed and includes any of the following that are actually used or intended to be used for the purpose of furnishing water for drinking or household purposes: (i) Wells and well structures. (ii) Intakes and cribs. (iii) Pumping stations. (iv) Treatment plants. (v) Storage tanks, (vi) Pipelines and appurtenances. (vii) Private residential service lines. G49 (viii) A combination of any of the items specified in this subdivision. 324.5409 Application for fund assistance; contents; availability of revenue sources; acceptance of applications by department; liability for incurred costs. 2 xxxEND_PAGE:treasury01_b36_6099_6552_051 Sec. 5409. (1) A water supplier whose project plan is approved or under review by the department under section 5407 may apply for assistance from the fund by submitting an application to the department. A complete application shall include all of the following, if applicable, as determined by the department: (a) If assistance is in the form of a loan, financial documentation that a dedicated source of revenue is established, consistent with obligations of debt instruments existing at the time assistance is requested, and pledged to both of the following purposes: (i) The timely repayment of principal and interest. (ii) Adequate revenues to fund the operation and maintenance of the project. (b) Evidence of an approved project plan. (c) A certified resolution from a water supplier that is a municipality, or a letter of appointment from a water supplier that is not a municipality, designating an authorized representative for the project. (d) A certification by an authorized representative of the water supplier affirming that the supplier has the legal, institutional, technical, financial, and managerial capability to build, operate, and maintain the project. The water supply does not need certify it will operate and maintain any portion of the project that funds the replacement residential private service lines. Maggie Pallone Deputy Director Policy and Legislative Affairs Department of Environmental Quality 517-599-6190 (cell) [email protected]