Publication

July 2, 2009Client Alert

Update #4 on Use of Federal Stimulus Funds for Clean Water Fund Program and Safe Drinking Water Loan Program

In mid-April 2009, the Wisconsin Department of Natural Resources (“DNR”) announced that it would use a portion of federal stimulus funds provided by the American Recovery and Reinvestment Act of 2009 (“The Act”) for grants under the Safe Drinking Water Loan Program (“SDWLP”) and Clean Water Fund Program (“CWFP”). Recent client alerts discussing this announcement and an update following the announcement can be found at:
http://www.michaelbest.com/wisconsin-dnr-announces-federal-stimulus-for-sdwlp-and-cwfp/;
http://www.michaelbest.com/update-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/;
http://www.michaelbest.com/update-2-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/; and
http://www.michaelbest.com/update-3-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/

DNR has provided updated information regarding the granting of funds under these two programs.

Deadline for Construction Contracts
All applicants for funds under either program must submit executed construction contracts to the Bureau of Community Financial Assistance on or before October 1, 2009. Failure to do so may result in an inability to obtain funding.

If an applicant is currently listed on the Draft SDWLP Funding List and cannot meet the October 1, 2009 deadline, the applicant can contact Jeanne Cargill at 608.267.7587 or jeanne.cargill@wisconsin.gov. Although the applicant may be ineligible to receive funds under The Act if it cannot meet the October 1, 2009 deadline, it may still be able to receive loan funds from DNR. Prior to DNR’s publication of the final funding list, DNR can reallocate funds and may be able to allocate loan funds for the entire project using non-Act funds if the applicant can close on the loan prior to April 30, 2010.

SDWLP Intended Use Plan, Draft Funding List, and Safe Drinking Water Act
The SDWLP Intended Use Plan (“IUP”) and draft funding list are available online at http://www.dnr.wi.gov/org/caer/cfa/EL/Section/sdwlpiup.pdf. The IUP identifies how funds from the Drinking Water State Revolving Fund are being used to promote the goals of the Safe Drinking Water Act. The IUP is part of a capitalization grant from EPA. Once DNR receives the grant funds from EPA, DNR will be able to provide funding for drinking water projects during 2010. Comments regarding the IUP can be submitted to DNR by mail, fax or email by July 10, 2009.

Davis-Bacon Compliance
The Davis-Bacon Act requires, among other things, contractors and sub-contractors of certain construction projects to pay certain wages to their laborers. Applicants are required to comply with the Davis-Bacon Act. EPA is allowing retroactive active compliance by permitting applicants to certify past payrolls and wages.

Reminders
DNR urges applicants to quickly get started on issues that could delay construction or the loan closing, such as issuing special assessments, applying to the Public Service Commission for water rate increases, purchasing land, executing intermunicipal agreements, and obtaining a Chapter 30 permit.

If an applicant that has been promised funds is unable to close by December 31, 2009, DNR will reallocate those funds to another applicant.

Loan Projects Not Involving Funds from The Act
DNR will not process applications for non-Act funds until February 2010. Applicants may obtain interim financing or use their own funds for such projects and obtain refinancing and reimbursement of funds through the CWFP or SDWLP programs.

This client alert is one of a series designed to provide summaries of the American Recovery and Reinvestment Act of 2009 ("The Act") and information and guidance regarding opportunities and relief made available through The Act. All of The Act client alerts are available on Michael Best's Stimulus and Economic Recovery Team publications page. For additional information on this topic, please feel free to contact one of the authors of this alert or your Michael Best attorney.

If you are interested in learning about other provisions included in The Act, the Michael Best Stimulus and Economic Recovery Team is prepared to assist you in understanding the implications and in developing and implementing a strategy to secure the benefits of this unprecedented legislation. Specifically, we will assist you to identify opportunities, prepare appropriate proposals and make targeted contacts to secure funds. We will also work with you to ensure that your applications are tailored to meet your needs and that your funded projects proceed in compliance with award requirements and applicable laws.

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