33 Miss. Code. R. 16-I
The Safe Drinking Water Act Amendments of 1996 (SDWA) established the national Drinking Water State Revolving Fund (DWSRF) Program. That program allows the Environmental Protection Agency (EPA) to make capitalization (Cap) grants to states to, in turn, provide low-cost loans to public water systems to help achieve or maintain compliance with SDWA requirements. Accordingly, the State Legislature (through Section 41-3-16, MS Code of 1972 Annotated) created what is now called the Drinking Water Systems Improvements Revolving Loan Fund (DWSIRLF) Program, to receive the federal DWSRF capitalization grants from EPA, and to provide low-cost loans to the state's public water systems to finance needed infrastructure improvements. This legislation also allows the DWSIRLF, subject to the authority of State Law, to make loans that may utilize additional subsidization beyond standard DWSIRLF loans as well as setting appropriate criteria to determine eligible recipients.
That same legislation created the "Local Governments and Rural Water Systems Improvements Board" (Board), to oversee the administration of the DWSIRLF Program. The Mississippi State Department of Health (Department), as the state's drinking water primacy agency, supplies the staff and facilities necessary to administer the program. The Board is composed of the following nine (9) members: the State Health Officer, who shall serve as chairman of the Board; the Executive Director of the Mississippi Development Authority; the Executive Director of the Department of Environmental Quality; the Executive Director of the Department of Finance and Administration; the Executive Director of the Mississippi Association of Supervisors; the Executive Director of the Mississippi Municipal League; the Executive Director of the American Council of Engineering Companies; the State Director of the United States Department of Agriculture, Rural Development; and a manager of a rural water system. Each agency director may appoint a designee to serve in his or her place on the Board. The Governor appoints the rural water system manager. In the creation of the Program, it was the intent of the Legislature that the Board endeavor to ensure that the costs of administering the DWSIRLF Program (Program) are as low as possible in order to provide the water consumers of Mississippi with safe drinking water at affordable prices.
As a condition of receiving the DWSRF Cap grants, the SDWA requires that each state annually prepare an Intended Use Plan (IUP) designed to outline how a state will utilize DWSRF funds to assist in protecting public health. The DWSIRLF Fund consists of both state and federal funds. Federal funds are provided to the states in the form of awarded Cap grants. Each state's allotment of those grants is based on EPA's Needs Survey that is performed every four years. State matching funds totaling 20% of the federal grant amount to that state are required to be deposited into the Fund and have historically been provided through the issuance of bonds; however, the State legislature has provided the required State match funds as a direct agency appropriation. The purpose of this IUP is to convey the State of Mississippi's (State) DWSRF plan for Federal Fiscal Year (FFY) 2023 to EPA, other state agencies, the State's public water supplies, and the public.
The basic framework under which the DWSIRLF Program operates is established by two documents. The first document is the Drinking Water State Revolving Fund Loan Program Operating Agreement (Operating Agreement) between the Mississippi State Department of Health and the Environmental Protection Agency, Region IV. The current Operating Agreement was agreed to by both parties and approved on March 21, 2022. The Operating Agreement establishes the basic framework of the DWSIRLF that is not expected to change from year-to-year. The second document is the IUP which describes how the State of Mississippi will use the funding received from the EPA Cap grant which is received each year.
The Consolidated Appropriations Act, 2023, (H.R. 2617 p.759), provided additional funding for the Clean Water and Drinking Water State Revolving Funds (SRFs) and the U.S. Environmental Protection Agency (EPA) to address national disasters and emergencies. Congress provided $450 million in Drinking Water SRF to States or Territories in EPA Region 4 in amounts determined by the Administrator in areas where there the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). Other than the City of Jackson's public drinking water systems (i.e., PWS ID MS0250008 a surface water system and PWS ID MS0250012 a groundwater system, and appurtenant treatment, storage, and distribution facilities'), the program knows of no other recipient eligible to receive funding related to this appropriation. The law waives match requirements and requires 100% of funding to be used as additional subsidy in the form of principal forgiveness, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt or any combination. The Act also authorizes the EPA to retain up to $1 million of the appropriation for administrative management and oversight. For ease of reference, the State of Mississippi and EPA will refer to this appropriation as the City of Jackson - Supplemental Appropriation.
To ensure that the public has an ample opportunity to review and comment upon the IUP, the Department and the Board follows the requirements of the "Mississippi Administrative Procedures Law" prior to final submission of the IUP to EPA. A public notice period of at least twenty-five (25) days allows for review and comment before an oral proceeding. After adoption by the Board, a second filing with the Secretary of State's Office occurs; if no additional comments are received the IUP becomes law 30 days after the second filing.
By means of a memorandum, the Board and the Program will notify interested parties through a mass email and post on DFA's Public Meeting Notices site (MISSISSIPPI PUBLIC MEETING NOTICES (ms.gov)) when the public comment period has been established. Written comments on this document must be received at the address shown below or SRF.drinkingwater@msdh.ms.gov. Please include an email contact in any written communication. The Program will use it to provide confirmation of receipt and feedback as necessary.
Local Governments and Rural Water Systems Improvements Board
Attn: Lee Alford, Director, DWSRLF Program
Mississippi State Department of Health (MSDH)
570 East Woodrow Wilson Avenue, Suite U-222 (Underwood Building)
Post Office Box 1700
Jackson, Mississippi 39215-1700
Additionally public notice will be given in The Clarion Ledger, a newspaper of statewide circulation, for written and oral comments on this IUP. An oral proceeding was held at 9:00 a.m. on March 21, 2024. A transcript of the oral proceeding, recording any comments and recommended solutions, will be submitted to the EPA along with the Final IUP. Those desiring to receive a copy of the oral proceeding transcript should contact Jonathan Diaz, Program Support Specialist, at (601) 576-7518. A copy of the "Mississippi Administrative Procedures Law" may be obtained from the Mississippi Secretary of State's Office and can also be found on the Mississippi State Department of Health's website at www.healthyms.com/dwsrf.
33 Miss. Code. R. 16-I