Environmental Loans July 2024 Newsletter
The Wisconsin Department of Natural Resources (DNR)’s Environmental Loans programs provide affordable financial assistance to Wisconsin communities for water infrastructure projects that protect and improve public health and water quality for current and future generations.
Upcoming Deadlines And Events
The notices of intent to apply, applications and loan closing deadlines are set in the corresponding program's annual intended use plan and are available on the DNR's Project Lists and Intended Use Plans webpage.
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Sept. 25: Final loan closing date for the state fiscal year 2024 Safe Drinking Water Loan Program projects.
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Sept. 30: Application deadline if competing for principal forgiveness for the state fiscal year 2025 Clean Water Fund Program funding cycle. The DNR recommends that all applicants (including those not competing for principal forgiveness) submit an application by the Sept. 30 deadline due to potential limitations on loan capacity. See the Loan Capacity webpage for more information. Note the following reminders:
- Submit the plans and specifications to the DNR Bureau of Water Quality and with the Clean Water Fund Program application.
- Priority score reevaluation requests are due within 30 days of the Clean Water Fund Program application deadline date.
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Sept. 30: Last recommended date for submitting rate applications to the Public Service Commission of Wisconsin for the state fiscal year 2025 Safe Drinking Water Loan Program projects.
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September 2024: The DNR intends to publish the state fiscal year 2025 Safe Drinking Water Loan Program draft funding list.
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Oct. 31: Notice of intent to apply deadline for the state fiscal year 2026 Clean Water Fund Program and Safe Drinking Water Loan Program funding cycles.
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November 2024: The DNR intends to publish the state fiscal year 2025 Safe Drinking Water Loan Program final funding list.
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December 2024: The DNR intends to publish the state fiscal year 2025 Clean Water Fund Program funding list.
*If a deadline falls on a weekend or legal holiday, that deadline is extended to the next business day, per s. 990.001(4), Wis. Stats.
Disbursement Submittal Reminder
Thank you for submitting your disbursement requests to DNRCFELDisbursements@wisconsin.gov. A couple of friendly reminders, our staff has grown to 19 loan project managers authorizing disbursement requests and we need your help to keep the process running smoothly. To expedite the DNR’s approval, please include the municipality name and DNR project number in the subject line. Additionally, if your email is rejected/bounced back to you, try reducing the PDF file size and resend the request. For each email message, the maximum file size is 10MB. For more information, see the DNR’s Requests for Disbursement webpage. Thank you!
Please direct any questions or concerns to Kim Leizinger, DNR Clean Water Fund Program and Safe Drinking Water Loan Program disbursement specialist, at Kimberly.Leizinger@wisconsin.gov.
Online System Access And Authorization Reminders
It’s never too early to request access to the online loan systems. We recommend you request access at least 2 weeks prior to the notice of intent to apply or financial assistance application submittal deadline.
- Requests received within 48 hours of the submittal deadline cannot be accommodated.
To gain access to the online systems, you must create a Wisconsin Web Access Management System (WAMS) ID and then register with the DNR Switchboard. If you are a consultant, the municipality must authorize you to submit materials through the online systems on its behalf by completing an online submittal authorization certificate (Form 8700-377).
Steps To Request Access
- Create a WAMS ID. It typically takes 1-3 business days for a new WAMS IDs to become active.
- Request access to the online loan systems via the DNR Switchboard. It occasionally takes 24-48 hours for new access requests to function correctly.
- Submit an online submittal authorization certificate.
Additional information and guidance are available on the Online Systems webpage.
State Fiscal Year 2025 Principal Forgiveness Data Finalized
The DNR downloads the state and county unemployment data from the Wisconsin Department of Workforce Development webpage in early July to have the most recent data for state fiscal year 2025 projects. Once we have the unemployment numbers, we finalize the data sources document that the Clean Water Fund Program and the Safe Drinking Water Loan Program will use to determine the state fiscal year 2025 principal forgiveness points. This final document has been uploaded to the DNR’s Data Sources webpage and replaces the document being used for estimates.
2023 Annual Drinking Water Report Available
Wisconsin’s 2023 Annual Drinking Water Report was published Friday, June 28, 2024, on the DNR’s Annual Drinking Water Reports webpage. The report summarizes compliance with drinking water requirements during 2023 and the DNR’s efforts to help public water systems protect Wisconsin’s drinking water supplies. The report includes communities in Wisconsin that received funding through the Safe Drinking Water Loan Program and the Lead Service Line Replacement Program during 2023. The interactive map on this webpage has been updated to display these projects.
Updated BABA And Davis-Bacon Applicability For Lead Service Line Replacement Projects
Build America, Buy America Applicability
Due to slow and unclear responses from the U.S. Environmental Protection Agency (EPA) to questions regarding Build America, Buy America (BABA) Act applicability for lead service line replacement projects, the DNR Environmental Loans Section published incorrect information on BABA compliance for lead service line projects in the Environmental Loans May 2024 Newsletter, and in the original Safe Drinking Water Loan Program State Fiscal Year 2025 Draft Intended Use Plan. The information in the draft intended use plan has since been updated and the updated information was included in the Safe Drinking Water Loan Program State Fiscal Year 2025 Draft Intended Use Plan webinar and the Bipartisan Infrastructure Law-funded Lead Service Line Replacement Program webinar, both held in early June.
The answer to question 8.3 in the EPA’s May 2023 Supplemental Questions and Answers for Build America, Buy America Act Implementation Procedures for Office of Water Federal Financial Assistance Programs memorandum does not apply to the Drinking Water State Revolving Fund despite the specific reference to private lead service line replacement projects in the Q&A. The EPA has assured us that it will clarify this in future guidance.
BABA applies to all lead service line replacement projects unless the financial assistance agreement (loan) for the project totals less than $250,000. In this instance, the project will be exempt under the Small Project General Applicability Waiver. Note that the American Iron and Steel procurement requirements still apply, even if a project is exempt from BABA under the small project waiver.
Davis-Bacon Applicability
In addition to the BABA clarification, we have a Davis-Bacon Act clarification regarding lead service line replacement projects. We have been informed by the U.S. Department of Labor that for lead service line replacements projects, even when all the work is on the private side of the service line, that the "heavy" construction type wage determination applies rather than “residential.”
Since the "heavy" determination normally does not include plumbers, and a plumber is required under Wisconsin state statutes to make the connection inside the home, a Conformance Request (SF-1444) needs to be completed and submitted to the Department of Labor in order to obtain a wage classification for a plumber. The municipality should incorporate the final conformance rate into the bid specifications and construction contracts, and copies of the conformance letter should be kept on file.
If a municipality bid a project that includes private side lead service line replacements using only the “residential” construction type, the municipality should execute a change order to incorporate the "heavy" rates, even if construction has started.
If you have any BABA applicability questions, or other Lead Service Line Replacement Program questions, please contact Kate Leja-Brennan, lead service line specialist, at Kathryn.Leja@wisconsin.gov or Becky Scott, Environmental Loans section manager, at Rebecca.Scott@wisconsin.gov.
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