Notice of Request for Comments on the State Revolving Fund Program
Disadvantaged Community Criteria for Federal Disaster Declarations
Introduction
The Alaska Department of Environmental Conservation (ADEC) State Revolving Fund (SRF) Program proposes a modification to the list of Priority Project Types included in the Disadvantaged Community Criteria established in the State Fiscal Year 2025 Intended Use Plans for the Alaska Clean Water and Alaska Drinking Water Funds. This modification would add one Project Priority Type for eligible projects directly related to a federal disaster declaration. A "federal disaster declaration" refers to a declaration made by the President of the United States.
Recent federal disaster declarations impacting Alaska have been related to earthquakes, landslides, flooding, severe storms, and fires. While the SRF Program is already positioned to provide low-interest loans to eligible borrowers with critical water and wastewater infrastructure or water quality impacted by such disasters, many would not be eligible to receive loan forgiveness for such projects under the current Disadvantaged Community Criteria. Incorporating federal disaster declarations as a Priority Project Type allows ADEC to ensure that all communities with a federal disaster declaration have an opportunity to apply for a low-interest loan and qualify for loan forgiveness, if funding is available to provide loan forgiveness.
Disadvantaged Community Criteria and Loan Forgiveness
The Safe Drinking Water Act and the Clean Water Act require states to define communities most in need of financial assistance through disadvantaged community criteria. The annual Clean Water and Drinking Water State Revolving Fund capitalization grants provided by the Environmental Protection Agency, require ADEC to provide a portion of each grant as subsidy. State regulations at 18 AAC 76 further define that ADEC may only provide a subsidy in the form of principal forgiveness to eligible borrowers that meet the disadvantaged community criteria.
The Disadvantaged Community Criteria includes a list of project types that ADEC has identified as priorities for subsidization. The current list of Priority Project Type for Disadvantaged Community Criteria is presented below:
| Project Priority Type | Points |
| Project will result in completion of a Lead Service Line Inventory or replace known lead service lines. | 6 |
| Project will provide treatment to address an emerging contaminant. | 6 |
| Project will resolve a health-based violation of the Safe Drinking Water Act. | 6 |
| Project will install domestic wastewater treatment to meet the minimum treatment requirements of 18 AAC 72.050 | 6 |
| Project will result in consolidation of two or more public water systems or wastewater systems to address violations | 6 |
| A water distribution system will be expanded to provide service to replace private sources that exceed the Maximum Contaminate Level for a primary drinking water contaminant. | 6 |
| A wastewater collection system will be expanded to provide service to individual services that use on-site wastewater | 6 |
| Project will improve the water quality of an impaired water body. | 5 |
| Project will result in development of an Asset Management Plan. | 4 |
Additionally, the Disadvantaged Community Criteria considers several socioeconomic factors, the household burden related to water and wastewater user rates, and a rural community factor. Based on the total points assigned for all categories, each proposed project is assigned to a tier. The higher tiers are eligible to receive higher amounts of loan forgiveness, assuming that loan forgiveness funds are available.
The current tiers established for Disadvantaged Community Criteria scores are shown below:
| Tier | Point Range | Maximum Loan Forgiveness per Community/System |
| | | Clean Water Projects | Drinking Water Projects |
| Tier 1 | 0 to 3 | Not applicable | Not applicable |
| Tier 2 | 4 to 6 | $500,000 | $1,500,000 |
| Tier 3 | 7 to 10 | $1,000,000 | $2,500,000 |
| Tier 4 | 10+ | $2,000,000 | $3,500,000 |
Proposed Modification to Project Priorities List
The SRF Program proposes to add one Project Priority type for projects that are directly related to a federal disaster declaration.
| Project Priority Type | Points |
| Project will address or mitigate a water or wastewater utility infrastructure issue, or a water quality concern directly related to a federal disaster declaration. The provision of loan forgiveness up to 50 percent of the estimated project cost may be considered if sufficient loan forgiveness funds are available. | 10 |
Comments
The deadline for comments is 11:59 pm Alaska time, January 17, 2025. All comments may be directed to Peggy Ulman at ADEC’s SRF Program in Anchorage:
Peggy Ulman
Alaska Department of Environmental Conservation
State Revolving Fund Program
555 Cordova Street Anchorage, AK 99501
peggy.ulman@alaska.gov
907-334-2681
The State of Alaska, Department of Environmental Conservation complies with Title II of the Americans with Disabilities Act of 1990. If you are a person with a disability who may need an accommodation in order to participate in this public process, please contact ADA Coordinator Mike Kruzinski, mike.kruzinski@alaska.gov, 1-907-334-0884; Alaska Relay Service/TTY/TDD 1-800-770-8973; or 711 to ensure that any necessary accommodations can be provided.