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ahead of new projects. Segmented projects will be added to the SFY 2023 Project Priority List as received. • New Section 212 Projects . New applications for assistance during SFY 2023 will be accepted on a quarterly basis and will be added to the Project Priority List if projects are determined to be eligible for funding and the application is complete. Intended Use Plan applications can be found on the SRF website 4 and on the DNR Wastewater Construction Permit website 5 , and submitted to srf-iup@dnr.iowa.gov. • New General Nonpoint Source Projects including Source Water Protection. New applications for assistance during SFY 2023 will be accepted on a quarterly basis and will be added to the Project Priority List if projects are determined to be eligible for funding and the application is complete. Intended Use Plan applications can be found on the SRF website under the Other Water Quality Program 6 tab and submitted to srf-iup@dnr.iowa.gov . • Supplemental Financing . Supplemental financing for projects listed in previously approved IUPs are added to the IUP as they are requested unless the additional funds will be used for improvements that would significantly change the scope of the project. Additional environmental review may be required. Supplemental loans will not be provided for changes that are ineligible for funding. Water Resource Restoration Sponsor Program The project category called water resource restoration or “sponsored projects” provides wastewater utilities with the opportunity to fund locally directed, watershed-based, nonpoint source projects that address water quality issues. Iowa Code chapter 384.84 authorizes these projects to be financed with sewer revenues. On a CWSRF loan with a sponsored project, the utility borrows for both the wastewater improvement project and the sponsored project. However, the overall interest rate on the total amount of principal borrowed is reduced so that the utility’s ratepayers do not pay any more than they would have for just the wastewater improvements. In this way, a utility accomplishes two water quality projects for the cost of one. • For loans up to 20 years, the interest rate on the combined infrastructure/sponsored project loan will be reduced to not lower than 0.75%. The maximum amount allowed for eligible sponsored project costs is $100,000 per $1 million borrowed. The amount of funds reserved in SFY 2023 for Water Resource Restoration Sponsor Program interest rate reductions is $5 million. In order to fund all eligible applications, the DNR reserves the right to cap individual application funding awards at a percentage of the total amount allocated for Sponsored Projects. Applications for SFY 2023 were accepted until March 1, 2022. The applications proposed for funding in SFY 2023 are listed in Appendix D. The Sponsored Project Program is temporarily not accepting applications during SFY 2023 (September 2022 and March 2023) for program planning purposes to enhance the program. Application opportunities are expected to resume for communities or wastewater utilities interested in applying to the CWSRF Water Resource Restoration Sponsored Project Program. Future quarterly updates to the IUP will provide information on deadlines for pre-application conference calls and application deadlines. Applicants that are approved for funding will be contacted after the approval of this IUP to schedule a project initiation meeting and to begin the sponsored project review and approval process. All information about the review and approval process is included in the Sponsored Project Manual 7 located on the SRF website. Applicants should review the manual information to become familiar with the process. Sponsors of approved projects will be required to follow project review and implementation guidelines established in the Water Resource Restoration Sponsored Projects Milestone Checklist located in the Sponsored Project Manual on the SRF website.

4 www.iowasrf.com 5 https://www.iowadnr.gov/Environmental-Protection/Water-Quality/Wastewater-Construction/Construction-Permits

6 https://www.iowasrf.com/program/other_water_quality_programs/ 7 https://www.iowasrf.com/about_srf/sponsored-project-manual/

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