Drinking Water Intended Use Plan

TDEC’s Drinking Water Intended Use Plan is the state’s planning document detailing how the federal fiscal year (FFY) appropriations for the DWSRF loan program will be used. The State of Tennessee’s allotment of FFY dollars for the DWSRF Loan Program changes from year to year. The State is required to provide a 20% State match of federal funds based on the projected FFY capitalization grant. The EPA capitalization grant plus the State match provides the bulk of project loan funds in a typical year. Projects may also be funded from the SRF revolving base dollars. In addition, to support the Safe Drinking Water Act (SDWA), the state sets-aside up to 31% of our capitalization grant dollars to fund public water supply and certified operators programs, and other related objectives. Section 1452 (a)(2) of the SDWA requires the state to allocate fifteen percent (15%) of the FFY 2019 project funds to systems serving fewer than 10,000 persons to the extent that there are a sufficient number of eligible projects to fund. DWSRF provides communities with these circumstances, principal forgiveness for projects.

In addition, America’s Water Infrastructure Act (AWIA) of 2018  provisions and amendments to the SDWA require states to provide at least six percent (6%) and up to thirty five percent (35%) of the federal fiscal year capitalization grant as subsidies for disadvantaged communities Tennessee’s DWSRF Loan Program has developed a small and economically disadvantaged community principal forgiveness program that sets aside funds for communities with an Ability to Pay of less than 50%.