draft

is an efficient and effective delivery mechanism for water infrastructure funding.

DWSRF set-asides are typically fully utilized within a two-year planning and budgeting period. Iowa will draw grant funds based on designated uses on a first in, first out basis in order to close out Cap Grants. Due to increased water program budget needs and reduced funding from other sources, Iowa is spending reserved set-aside capacity at a faster rate than in the early years of the DWSRF program. III. ASSURANCES AND SPECIFIC PROPOSALS Iowa will provide the necessary assurances and certifications between the State of Iowa and the U.S. EPA. IV. CRITERIA AND METHOD FOR DISTRIBUTION OF FUNDS The following approach was used to develop Iowa’s proposed distribution of DWSRF funds: (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 DWSRF assistance; and (5) development of a disbursement schedule to pay the project costs as incurred. Priority of Communities and Financial Assistance Needed Iowa law provides only for loan assistance. Additional subsidization required by the Cap Grants will be through forgivable loans. The state’s DWSRF rules identify the priority rating system used to establish priorities for financial assistance. Projects can receive financial assistance for all eligible planning and project costs provided the project is on the Project Priority List of an approved IUP. Allocation of Funds among Projects All projects listed in the Project Priority List are eligible for assistance and may be funded from the DWSRF subject to available funds. All projects scheduled for funding with Iowa’s DWSRF will be reviewed for consistency with the Safe Drinking Water Act, as amended. Should a project fail to meet this review criterion, it may remain on the list until the criteria is met or it may be removed from the list. Projects may be added to the Project Priority List in priority order as applications are received. V. METHOD OF AMENDMENT OF THE INTENDED USE PLAN The State will follow this IUP in administering DWSRF funds in SFY 2023. Federal and state law requires, and Iowa welcomes, opportunity for public participation in the development of the IUP. Any revisions of the goals, policies and method of distribution of funds must be addressed by a revision of the IUP, including public participation. Minor adjustments in funding schedules and loan amounts are allowed without public notification by the procedures of this IUP and state rules for administration of the DWSRF. Adjustments to the Project Priority List to utilize actual funds available to the DWSRF for SFY 2023 will be considered minor and only affected applicants will be notified. Public notice of amendments will be made if municipalities are added to or removed from the Project Priority List. VI. PUBLIC REVIEW AND COMMENT A public meeting to allow input to Iowa’s SFY 2023 IUP and Project Priority List was held May 12, 2022, 10:00 a.m. via virtual conference call. This meeting was announced in a notice provided to stakeholder organizations representing city officials, consulting engineers, county governments, councils of government, area planning agencies, and other groups which might have an interest. Written comments were accepted until May 19, 2022. A public meeting to allow input to Iowa’s SFY 2023 IUP second quarter update and Project Priority List was held August 11, 2022, 10:00 a.m. via virtual conference call. This meeting was announced in a notice provided to stakeholder organizations representing city officials, consulting engineers, county governments, councils of government, area

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