1. (1) Priority Determination.

   1. (a) The project plans, specifications, contract, financing, or other measures of a project's readiness to proceed to construction of a lower priority applicant are ready for execution.
   2. (b) Available funding.
   3. (c) Acute health risk.
   4. (d) Capacity Development, financial, technical, or managerial issues needing resolution to avoid EPA intervention.

   5. (e) An Emergency.

      Table 1Priority SystemDeficiency DescriptionPoints ReceivedSource Quality or Quantity Health Risk (select one)A. There is evidence that waterborne illnesses have occurred.25B. There are reports of illnesses which may be waterborne.20C. High potential for waterborne illness exists.15D. Moderate potential for waterborne illness.8E. No evidence of potential health risks.0Compliance with SDWA (select all that apply)A. Source has been determined to be under the influence of surface water.25B. System is often out of water due to inadequate source capacity.20-or- System capacity does not meet the requirements of UPDWR.10

   The Board will use Table 1 to assign applicants for financial assistance a priority rank. The Board may modify an applicant's priority rank based on the following considerations.

2. C. Source has a history of three or more confirmed microbiological violations within the last year.10D. Sources are not developed or protected according to UPDWR.10E. Source has confirmed MCL chemistry violations within the last year.10Total100TreatmentDeficiency DescriptionPoints AvailableHealth Risk or Compliance with SDWA (select all that apply)A. Treatment system cannot consistently meet log removal requirements, turbidity standards, or other enforceable drinking water quality standards.25B. The required disinfection facilities are not installed, are inadequate, or fail to provide adequate water quality.25C. Treatment system is subject to impending failure or has failed.25-or-Treatment system equipment does not meet demands of UPDWR including the lead or copper action levels.20-or-System equipment is projected to become inadequate without upgrades.5Total75StorageDeficiency DescriptionPoints AvailableHealth Risk and Compliance with SDWA (select all that apply)A. Storage system is subject to impending failure or has failed.25-or-System is old, cannot be easily cleaned, or is subject to contamination.15B. Storage system is inadequate for existing demands.20-or-Storage system demand exceeds 90% of storage capacity.10C. Applicable contact time requirements cannot be met without an upgrade.15D. System suffers from low static pressures.15Total75DistributionDeficiency DescriptionPoints AvailableHealth Risk and Compliance with SDWA (select all that apply)

3. A. Distribution system equipment is deteriorated or inadequate for existing demands.20-or-Distribution system is inadequate to meet 5-year projected demands.10B. Applicable disinfectant residual maintenance requirements are not met or high backflow contamination potential exists.20C. Project will replace pipe containing unsafe materials, such as lead or asbestos15D. Minimum dynamic pressure requirements are not met.10E. System experiences a heavy leak rate in the distribution lines.10Total75EmergenciesUpon the Board finding of an emergency as required by Section R309-705-9.100

   1. (2) Financial Assistance Determination. The amount and type of financial assistance offered will be based upon the criteria shown in Table 2. As determined by Board resolution, disadvantaged communities may also receive 0% loans, or other financial assistance as described in this rule.

      Effective rate calculation methods will be determined by Board resolution from time to time, using the Revenue Bond Index RBI as a basis point, the points assigned in Table 2, and a method to reduce the interest rate from a recent rate down to a potential minimum of 0%.

      TABLE 2INTEREST, HARDSHIP GRANT FEE AND OTHER FEES REDUCTION FACTORS1. COST EFFECTIVENESS RATIO, SELECT ONEPOINTSProject Cost per benefitting connectionA. $0 to $50016B. $501 to $1,50014C. $1,501 to $2,00011D. $2,001 to $3,0008E. $3,001 to $5,0004F. $5,001 to $10,0001G. Over $10,00002. CURRENT LOCAL MEDIAN ADJUSTED GROSS INCOME (MAGI), SELECT ONEA. Less than 70% of State Median AGI19B. 71 to 80% of State Median AGI16C. 81 to 95% of State Median AGI13D. 96 to 110% of State Median AGI9E. 111 to 130% of State Median AGI6F. 131 to 150% of State Median AGI3G. Greater than 150% of State Median AGI03. APPLICANT'S COMMITMENT TO PROJECTPROJECT FUNDING CONTRIBUTED BY APPLICANT, SELECT ONEA. Greater than 25% of project funds17B. 15 to 25% of project funds14C. 10 to 15% of project funds11

4. D. 5 to 10% of project funds8E. 2 to 5% of project funds4F. Less than 2% of project funds04. WATER BILL, INCLUDING TAXES, AFTER PROJECT IS BUILT RELATIVE TO LOCAL MEDIAN ADJUSTED GROSS INCOME, SELECT ONEA. Greater than 2.50% of local median MAGI16B. 2.01 to 2.50% of local median MAGI12C. 1.51 to 2.00% of local median MAGI8D. 1.01 to 1.50% of local median MAGI3E. 0 to 1.00% of local median MAGI05. SPECIAL INCENTIVES, SELECT ALL THAT APPLY:The Applicant has the following:A. A replacement fund receiving annual deposits of about 5% of the system's annual drinking water (DW) budget and fund has already accumulated a minimum of 10% of said annual DW budget in this reserve fund.5B. In addition to item 5.A., accumulated an amount equal to at least 20% of its annual DW budget in its replacement fund.5C. Created or enhanced, or will create or enhance, a regionalization plan.16D. Implemented a rate structure encouraging conservation.6TOTAL POSSIBLE POINTS FOR FINANCIAL NEED100

KEY: SDWA, financial assistance, loans

Date of Last Change: May 22, 2023

Notice of Continuation: February 10, 2025

Authorizing, and Implemented or Interpreted Law: 19-4-104; 73-10c