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3. Existing Funding Sources This chapter identifies existing funding sources for drinking water projects in Colorado, and lists the funding sources for which PNPWSs are eligible. We also discuss recent trends or approaches associated with funding, such as requiring TMF capacity development by water systems before they can apply for funding, or encouraging water systems to join or form a governmental entity. 3.1 What Funding Sources Are Available in Colorado, and from What Sources Are Private Nonprofits Excluded? Figure 3.1 depicts the majority of public funding sources available to Colorado water and wastewater systems. 1 These funding providers get money from federal or state sources. The gold shaded boxes show funding providers that have funding programs for which private nonprofit systems are eligible. The unshaded boxes show funding sources for which only governmental entities are eligible. The CWRPDA was created by the legislature and has gained the responsibility to act as the Colorado banker in financing the Water Pollution Control Revolving Fund (WPCRF) and the SDWRF. The WQCD of CDPHE and DOLA jointly administer the SDWRF and the WPCRF with the CWRPDA. The WQCD generates and updates the eligibility lists, and provides and receives loan applications. DOLA performs financial and managerial reviews for the loans. The CWRPDA approves and provides funding for loans, and negotiates loan agreements. The CWRPDA also operates the Small Water Resources Projects (SWRP) Program and the Revenue Bonds Program to fund water systems not eligible under the WPCRF or the SDWRF. The SWRP and Revenue Bonds programs, however, also are limited to governmental entities. Although the EPA allows Drinking Water Revolving Fund (DWRF) capitalizations to be used for private not-for-profit water systems, the CWRPDA is restricted to financing local governmental water systems by state statute. The issue of revisiting whether or not to allow private not-for-profit systems to be eligible for SDWRF funds has been addressed before. According to the 2006 Colorado DWRF Biennial Report, "In 2000, the Colorado State Auditor recommended changes to the Authority's legislation that would allow funding to privately owned public water systems. The Authority Board reviewed the proposal and it concluded the SDW A does not require the funding of privates. However, the Authority Board approved expansion of SCll199 1. One additional funding source - the Economic Development Administration's Public Works and Development Facilities Program, was omitted because the program is not focused on drinking water needs and the program has small relative importance in terms of funding provided to Colorado drinking water systems.