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Due to their effectiveness, the practices described above will be continued through SFY 2023.

Water Quality Management Planning A reserve for water quality management planning as required by Title VI of the Clean Water Act will be set aside from Iowa’s Title VI allotments and granted to the state for this purpose separately from the CWSRF. This reserve does not appear in this IUP as it has been already deducted from Iowa’s allotment and considered in projecting Iowa’s available Cap Grant. SEE Salary Funds Deducted from Capitalization Grant The CWSRF Program will withhold $74,600 from FFY 2022 base CWSRF Cap Grant application for the SEE Program. These positions are filled by EPA Region 7 and assigned to the DNR’s Wastewater Engineering section to provide technical and administrative assistance to the CWSRF projects and program. The SEE enrollees help provide staffing at Iowa DNR to maintain the CWSRF program and keep up with the increasing CWSRF project technical and administrative work load. Authorized under the Environmental Programs Assistance Act of 1984 (PL 98- 313), the SEE program is intended “to utilize the talents of older Americans in programs authorized by other provisions of law administered by the Administrator in providing technical assistance to Federal, State, and local environmental agencies for projects of pollution prevention, abatement, and control.” III. ASSURANCES AND SPECIFIC PROPOSALS Iowa will provide the necessary assurances and certifications according to the Operating Agreement between the State of Iowa and the U.S. EPA. IV. CRITERIA AND METHOD FOR DISTRIBUTION OF FUNDS Section 212 Infrastructure Projects The following approach was used to develop Iowa’s proposed distribution of CWSRF funds for Section 212 infrastructure projects: (1) analysis of the priority of communities applying and financial assistance needed; (2) identification of the sources and spending limits of available funds; (3) allocation of funds among projects; (4) development of a payment schedule which will provide for making timely binding commitments to the projects selected for CWSRF assistance; and (5) development of a disbursement schedule to pay the project costs as incurred. Allocation of Funds Among Projects. All projects listed in the CWSRF Project Priority List (attached) are eligible for assistance and may be funded from the CWSRF subject to available funds. All projects scheduled for funding with Iowa’s CWSRF will be reviewed for consistency with appropriate plans developed under sections’ 205(j), 208, 303(e), 319 and 320 of the Clean Water Act, as amended. Evidence of this review and finding of consistency will be documented in each CWSRF project file. Priority of Communities and Financial Assistance Needed. Iowa law provides only for loan assistance. Additional subsidization required by federal Cap Grant conditions will be through forgivable loans . The state’s CWSRF rules identify the priority rating system used to establish priorities for loan assistance. Capitalization Grant Requirements. Cap Grants include requirements for minimum and maximum percentages of the funds to be allocated for additional subsidization and/or green project reserve (GPR). Affordability Criteria is discussed in Appendix C and BIL Annex A to the CWSRF IUP. Additional Subsidization: Iowa applies additional subsidization in the form of loan forgiveness. Appendix C identifies the criteria used to determine projects and borrowers eligible to receive financial assistance through forgivable loans. Criteria for loan forgiveness eligibility is established with each Cap Grant. Individual projects may be capped to allow more eligible borrowers to receive subsidization. Time limits may be established for loan commitments in order to apply loan forgiveness awards from these grants. Construction must begin within 24 months of the loan forgiveness offer or the loan forgiveness offer may be withdrawn or reassigned.

IOWA SRF INTENDED USE PLANS 2023 - CWSRF | Page 18