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Established in accordance to Chapter 46-12.8 of the General Laws of Rhode Island
and the Safe Drinking Water Act Amendments of 1996 to finance public drinking
water projects. The DWSRF receives federal funding under Section 1452 of the
Safe Drinking Water Act Amendment of 1996 with the state or through methods
available to the state providing a 20% state match. The purpose of the DWSRF is
to provide low-interest financial assistance from the DWSRF to those borrowers
certified as eligible participants by the Rhode Island Department of Health,
Drinking Water Quality Division (DOH). Projects relate to the planning, design
and construction of safe drinking water supply, treatment and transmission
infrastructure. The DOH prepares a Project Priority List to rank potential
projects according to several health and economic criteria prior to eligibility
for DWSRF financing. The focus of the program, as mandated by the federal
government, is toward small water suppliers and disadvantaged systems. A small
water supplier is defined as one serving fewer than 10,000 persons. A
disadvantaged system is defined as one whose system improvements would
dramatically increase water rates paid by consumers as it relates to median
household income. The interest rate for borrowers will be 25% off their market
rate of borrowing. The Agency, in cooperation with its advisors, will determine
the borrower’s current market rate of borrowing. However, the interest
rate for small publicly owned community water systems and small privately
organized community water suppliers, those serving fewer than 10,000 persons,
(a “Small Borrower”) may be set by the Agency at 3.0% for Loans up
to $300,000.
The program provides loans with an interest rate subsidy of 25% off a water
suppliers' market rate of borrowing. At present, the Agency is moving toward a
leverage financial structure so as to maximize the dollar amount available for
loans. Funds will be used to:
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Assist small systems in preparing application for revolving fund assistance;
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Assist all public water supply systems in maintaining financial, managerial and
technical abilities and maintain compliance with the Safe Drinking Water Act
Amendments of 1996; and,
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Assist small systems in meeting compliance with the act.
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