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August 20, 2009Client Alert

Update #5 on Use of Federal Stimulus Funds for Clean Water Fund Program and Safe Drinking Water Loan Program

In mid-April, 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 updates 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/;
http://www.michaelbest.com/update-3-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/; and
http://www.michaelbest.com/update-4-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/.

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

New Forms Required to Receive Funds

DNR recently posted several forms on its website that applicants must submit prior to preparing a Financial Assistance Agreement, which are due in December 2009. Each of those forms is discussed in detail below.

  • Project Funding Certification: This form must be completed only if (1) the project has not been substantially completed, and (2) only a portion of the funds for the project are from CWFP or SDWLP. The purpose of this form is to inform DNR of all funding sources for the project and the amount each such funding source is contributing. This form can be found at http://www.dnr.wi.gov/org/caer/cfa/EL/Section/News.html.

Documentation of Green Project Elements

At least 20% of the Act funds awarded under the CWFP and SDWLP must be used for green projects or green project elements. Applicants for CWFP and SDWLP funds previously identified green project elements in their applications. However, municipalities must now submit to DNR backup documentation providing greater detail about the green elements identified in their respective applications. Municipalities must submit this documentation to DNR prior to loan closing.

To assist municipalities in providing this backup documentation, DNR posted two guidance documents regarding green projects on their website. The first applies to wastewater pumping systems and can be found at http://www.dnr.wi.gov/org/caer/cfa/EL/Section/energy.pdf. The second provides general information and questions and answers about green projects. The second document can be found at http://www.dnr.wi.gov/org/caer/cfa/EL/Section/greenpro.pdf.

This client alert is one of a series designed to provide summaries of 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.

If you have questions regarding eligibility for these grants or want more information on how to apply, please contact one of the authors of this alert or your Michael Best attorney.

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