The Wisconsin Department of Natural Resources (WDNR) has included over $60 million in principal forgiveness for lead service line (LSL) replacement programs in its proposed plan for Safe Drinking Water Loan Program (SDWLP) funds. Until now, only disadvantaged municipalities could qualify for principal forgiveness. This program extends to all communities that have reported private LSLs.
As long as a community has reported private LSLs in its most recent annual report to the Public Service Commission of Wisconsin (PSCW), it can apply for a SDWLP loan to fund LSL replacements. To see whether your community reported private LSLs, check your most recent PSCW annual report under W-29, Privately-Owned Water Service Line.
If your utility has private LSLs, you can apply for this program in September of this year (2020). Funding will be awarded to eligible communities on a first-come, first-served basis. The WDNR will award 100% principal forgiveness, and awards will be granted one construction season at a time. If your utility spends more in 2020 than what was applied for in September, it will be first in line for funding for the next construction season, provided your utility applies again.
PROGRAM QUALIFICATIONS
The replacement program must meet federal requirements to qualify. These requirements include conducting an environmental review, using US iron and steel, complying with Davis-Bacon and related Acts when relevant, and not doing partial replacements.
Private LSLs that qualify for the program include LSLs serving residences, mixed-use developments, schools, and daycares. Galvanized service lines that are or have been downstream of lead also qualify under this program.
When evaluating program eligibility, the WDNR will also consider the following:
The estimated number of LSLs the utility will replace
The average cost per replacement
Whether any cost sharing from property owners will be mandated
Whether the utility has filed a rate case with the PSCW to recover up to half of the replacement costs.
LEARN MORE
To learn more about SDWLP funding and principal forgiveness, or for assistance with your application, please contact an expert at R/M today!
About the Authors
Bridgot A. gysbers
Financial consultant
Bridgot recently joined the R/M team as a Financial Consultant. She has a diverse background in utility regulation, including 16 years of experience in municipal and investor-owned utility regulation in energy, gas, water, and sewer utilities. Bridgot developed the revenue requirement for a majority of the water rate cases regulated in Wisconsin and served as the lead auditor for several of the most complex investor-owned cases involving electric, gas, and water utilities. At R/M, Bridgot works to find financial and management solutions for public utilities.
