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Non-Program Income . A portion of these funds will be used in SFY 2023 for administering the CWSRF Program. Planned Expenses. CWSRF administration expenses include the SRF include the work of wastewater engineering section project managers, specialists in environmental review, nonpoint source program administrators, financial officers, loan coordinators, and program managers. It also covers expenses for financial and legal advisors. These program expenses will first be paid out of Program Income and then Non-Program Income once Program Income has been fully expended. DNR intends to use a portion of Non-Program Income funds during SFY 2023 to support staffing to the Field Services Bureau for wastewater compliance activities including inspections, investigations and technical assistance and to support staffing in the Water Quality Bureau for construction permitting, National Pollution Discharge Elimination System permitting, American Iron and Steel Site Inspections, and other programmatic staffing needs. II. INFORMATION ON THE CWSRF ACTIVITIES TO BE SUPPORTED Allocation of Funds Allocation of funds to eligible projects was based on a four-step process: 1. The amount of financial assistance needed for each application was estimated. 2. The sources and allowable uses of all CWSRF funds were identified. 3. The CWSRF funds were allocated among the projects, consistent with the amount available and the financial assistance needed. 4. A designated amount was reserved for each Nonpoint Source Assistance Program based on past funding and expected future needs. Information pertinent to each CWSRF project is contained in Attachment 1, pursuant to Section 606(c) (3) of the Clean Water Act. Sources and Uses of Available CWSRF Funds In July 2021, the CWSRF Program was awarded the FFY 2021 Cap Grant in the amount of $21,505,000. In October 2022, the CWSRF Program was awarded the FFY 2022 Cap Grant in the amount of $15,660,000. Appendix A to this Intended Use Plan illustrates potential sources and uses of funds in the CWSRF for SFY 2023. As shown, all pending loan requests and program administration needs can be funded. Projects will draw on their funding at different intervals based on their construction cycles. These differences are used to estimate cash needs throughout the year. Appendix A will be updated quarterly as needed to provide an ongoing view of the financial plan for meeting loan requests. Iowa’s SRF program issues bonds as needed. These bond issues typically include the state match for the next federal Cap Grants. See Appendix F. On May 5, 2021, IFA issued $218,290,000 of SRF bonds; no state match funds was necessary at the time of issuance. On May 3, 2022, IFA issued SRF bonds totaling $206.18 million ($198.025 million tax-exempt and $8.155 million taxable). The 2022 bonds included $3 million of Clean Water state match and $5.7 million of Drinking Water state match, which was deposited in the respective state match accounts. After SRF bonds are issued, the state match is spent first so the Cap Grant can be drawn down at 100% when it is received. Section 212 Projects Program Policies Project Scope. The scope of the project must be outlined in the Intended Use Plan application and in the facility plan. Changes to the scope are allowed prior to loan closing. Significant changes in scope may cause delays if additional work is required by the project manager or environmental review specialist. Once a loan is signed, only minor changes to the scope are allowed and only if the changes do not require additional technical or environmental review. Loan Interest Rates . Interest rates for CWSRF planning and design loans are 0% for up to three years. The current interest rates for construction loans made from the CWSRF are as follows:

IOWA SRF INTENDED USE PLANS 2023 - CWSRF | Page 15