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Appendix I Overview of Relevant Funding Programs CWRPDA is currently involved with the Animas-La Plata project, a federal reclamation project designed to fulfill a water rights settlement with two Indian tribes and to protect water reliability for non-Indian water users in southwest Colorado. The project, after lengthy negotiations resulted in a smaller project than originally planned, will cost an estimated $500 million, most of which will be funded through the federal BOR. CWRPDA has agreed to share about $7.2 million of this cost, while also contributing to a$15 million "Future Projects Escrow" to be used for new irrigation projects. CWRPDA provides low-interest loans to local entities at a rate of around $100 million per year (Law 2004). As of December 31, 2003, the Authority had executed over 222 loans representing over $907 million in projects, largely through the use of revenue bonds (CWRPDA 2004). CWRPDA is authorized by Colorado statute to fund loans of up to $500 million per borrower per project. A summary of the four major CWRPDA funding programs is included below: Small Water Resaurces Projects Pro.qram The Small Water Resources Projects (SWRP) Program was created through Senate Bill 67 in 1989 to assist local governments in the financing of water resource projects. Loans of up to $2 million per municipality are available and can be expedited through this program. Loans of up to $500 million may be awarded under the SWRP program without legislative review, expediting the award process for the construction of water management and hydroelectric facilities and giving the project sponsor and the CWRPDA flexibility in reacting to bond market conditions. Eligible projects include water and wastewater treatment plants, pump stations, dams and reservoirs, water transfers, pipelines, hydroelectric projects, wells, meters, reuse facilities, and storage tanks. The SWRP Program also provides other financial benefits for loan recipients, including funding of the debt service reserve fund, pooling multiple borrowers, and subsidizing the cost of bond issuance.s As of December 31, 2003, CWRPDA had executed 48 SWRP Program loans totaling almost $150 million (CWRPDA 2004). Drinkinq WaterRevolvinq Fund The Drinking Water Revolving Fund (DWRF) was created in 1995 through Senate Bill 93 as Colorado prepared for the federal reauthorization of the SDWA and the creation of its new state revolving fund mechanism. Through the DWRF program, bonds are issued to fund leveraged loans and to meet the required 20 percent match on federal capitalization grants through EPA. Colorado was the first state in the nation to sell DWRF bonds (CWRPDA 2002). As of July of 2003, CWRPDA had provided over $15.7 million to match over $84 million in federal grants. Subsidized loans are awarded under DWRF to public water systems to help achieve or maintain compliance with the SDWA and to protect certain public health objectives under the Act. CWRPDA and CDPHE work together in the administration and funding of State Revolving Fund loans. CDPHE's Water Quality Control Division is the primary contact for loan applicants and assures that projects comply with all applicable requirements. The Division of Local Governments is responsible for analyzing the applicant's financial condition. The CWRPDA provides Colorado's required 20 percent match for EPA's federal funds, enters into loan agreements, and is responsible for the administration and management of the fund. As of December 31, 2003, CWRPDA had executed 61 DWRF loans representing $205 million in projects (CWRPDA 2004). Water Pollution Control Revolvinp Fund The Water Pollution Control Revolving Fund (WPCRF) was created in 1988 through Senate Bill 50, as directed by the federal CWA Amendments of 1987. CWRPDA issues bonds to fund the loans and meet the required 20 percent state match on federal funds, as with the DWRF. Publicly-owned wastewater treatment works receive low-interest loans under WPCRF for financing treatment plants, interceptors, pump stations, biosolids facilities, water meters, sewer lines, reuse facilities, and non-point source control projects.~ As of July 1, 2003, CWRPDA had provided over $31.9 million in state funds to match $176 million in federal grants. As of December 31, 2003, CWRPDA had 6 CWRPDA website (www.cwrpda.comlAuth%20Frames/fanda.htm) J~~a $~ole'ri~ice Wo~e' $upplY Initia~ive ~ CWRPDA website (www.cwrpda.comlFunding%20Programs/ WPCRF/EligProcess. htm) ~~ S:\REPORTWPPENDICESWPPENDIX I FILESWPPENDIX I OVERVIEW OF RELEVANT FUNDING PROGRAMS.DOC