PENNVEST Nonpoint Source Program - Frequently Asked Questions
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PENNVEST Nonpoint Source Program
Frequently Asked Questions
Revised April 2014
Prepared by
The Pennsylvania Association of Conservation Districts
25 North Front Street, Harrisburg, PA 17101
Contact: Terry L Fisher at 717-238-7223 or terry-fisher@pacd.org
What Is Nonpoint Source Pollution?
Nonpoint source (NPS) water pollution is caused when water from rainfall, snowmelt or some other source
flows over or through the ground and picks up various pollutants that are eventually deposited in streams,
lakes and other water bodies. NPS pollution entering a water body often comes from multiple, diffuse
sources – such as fertilizers, herbicides, oil and grease, sediment, bacteria from livestock waste, acid from
abandoned mines and more. For more information about NPS pollution:
http://www.epa.gov/owow_keep/NPS/index.html
What is PENNVEST?
The Pennsylvania Infrastructure Investment Authority (PENNVEST) is a state authority that was established
in 1988 with the purpose of improving water quality in Pennsylvania by providing low interest loans and
grants for drinking water and wastewater capital improvement projects. Pollution from these and other
“point sources” have been significantly reduced through the projects PENNVEST has funded since 1988. In
2010 PENNVEST started a program to address the growing concerns with nonpoint source pollution.
What is the PENNVEST Nonpoint Source (NPS) Program?
The Nonpoint Source Program provides low interest loans and grants for qualifying nonpoint source
projects that have a quantifiable water quality benefit. PENNVEST started the program in 2010 in response
to the Chesapeake Bay Initiative, the American Reinvestment and Recovery Act and in recognition that nps
pollution had become a major cause of stream impairment in Pennsylvania. With an emphasis on best
management practices and innovative or “green” projects, the expectation is that these projects will have a
significant impact on water quality at a lower cost than more technically complex point source projects.
What Are The Goals of the NPS Program?
The primary goals are improved water quality in Pennsylvania’s impaired streams and protection of existing
“exceptional value” or “high quality” waters. The program also promotes and encourages water
conservation, energy efficiency and economic development.
Why Fund NPS Projects?
Much of the stream impairment in the Commonwealth is now from nonpoint source pollution. Therefore it
makes sense to emphasize nps projects that have a direct impact on water quality. Also, nps projects
usually provide significant water quality benefits with a relatively small investment.
Page 1Who is eligible to receive loans and grants under the nps program?
As of June 2013 the following groups are eligible to apply for and receive PENNVEST nps funds.
1. Public/Government units (municipalities, conservation districts, etc)
2. Not-for-Profit organizations (watershed groups, land trusts, etc)
3. Private-For-Profits entities (farmers, land developers, etc) may all apply.
What Kind of Projects Can Be Funded?
Under this program, PENNVEST funds nonpoint source, shovel-ready projects that have a water quality
benefit. Four specific types of NPS projects qualify for funding.
1. Agriculture Best Management Practices (AG BMP’s), including, but is not limited to, manure
storages, stream bank fencing, riparian buffers, stream crossings, etc.
2. Urban Stormwater Projects, including green infrastructure stormwater projects like rain gardens,
green roofs, porous pavement, etc (traditional stormwater conveyance devices are typically not
eligible under this program).
3. Abandoned Mine Drainage (AMDs) includes both passive and active processes.
4. Brownfield Stormwater, projects that will reduce flow or treat water from contaminated sites.
What Does “Shovel Ready” mean?
PENNVEST will only accept applications for “Shovel Ready” projects. For application purposes, this is when
the design and engineering is complete, all required DEP permits are approved and the project is ready to
go to bid. (Bid Documents do not need to be complete for the application to be submitted)
What is “Priority Ranking” and How Does It Work?
The Priority Ranking System is a scoring system used by DEP and PENNVEST to rate how well projects will
perform and meet program objectives. When sufficient funds are not available for all eligible projects
during a funding cycle; funding awards are made to the highest ranked (or “best”) projects first.
Generally, projects that have a clear and quantifiable water quality benefit and have a high benefit-to-cost
ratio will “rank” well. The assessment is based on the following criteria.
1. DEP rates the technical merits of the project in five categories:
a. Water Quality (40 points)
b. Compliance (10 points)
c. Planning (25 points)
d. Benefits-to-cost (20 points)
e. Safety (5 points)
2. PENNVEST rates and adds points, for:
a. Economic Development (20 points)
b. Disadvantaged Community – Act 47 list (10 points)
c. Infill - redevelopment of existing population centers (10 points)
d. Designated Brownfield sites
e. Community Action Team Projects (10 points)
f. Comprehensive Planning
You can view the “Non-Point Source – Project Priority Rating System Guidance Manual” at
http://files.dep.state.pa.us/Water/Drinking%20Water%20and%20Facility%20Regulation/DrinkingWater
PortalFiles/watersupply/municipalfinance/Project_Rating_System.pdf
Page 2Is Applying Difficult?
A lot of information is required on a funding request application and many first-time users find the process
difficult and confusing. Therefore most applicants will hire a private consultant, engineer or conservation
district to apply and administer the project for them. Many consultants have experience with PENNVEST,
know the program requirements and are able to complete much of application.
When Can I Apply?
PENNVEST reviews application on a three month cycle. Go to the PENVNEST website so see the cutoff date
(for application submittal) and Board Meeting dates (when awards are announced) for upcoming funding
cycles.
What Parts of the Project Does the Funding Cover?
PENNVEST funds can be applied to most parts of the project, including administrative costs, engineering
and design costs and construction. Matching funds are not required.
HOWEVER, since only “shovel ready” projects are considered, there are upfront costs incurred. Engineering
and design must be competed and permits approved before the application can be submitted. While these
costs are covered for approved projects, PENNVEST will not reimburse applicants for any upfront cost for
projects that are not approved.
Are Grants Available, or Will I Receive a Loan?
The NPS Program is a low interest loan program. Most awards are for loans with interest rates of 1 – 3% for
a twenty year term. (Interest rates cannot exceed the “county cap rates”). By awarding loans, PENNVEST
ensures a self sustaining program – As loans are paid back, that money becomes available for another
project.
HOWEVER, some applicants may qualify for a grant. Qualifying for a grant depends on a number of factors:
1. There is a limited amount of money set aside each year for grants and therefore grant money is not
always available.
2. The Applicant’s financial condition is evaluated to determine their capacity to cover debt service on
a loan. If the applicant can afford loan payments, any offer will be for a loan. If they cannot cover
debt service on a PENNVEST loan, than they may qualify to receive a grant.
3. The applicant’s financial situation is reviewed through audited financial statements, personal
financial statements, tax returns, and/or other information depending on the business structure of
the organization.
How Do I Know If I Am Grant Eligible Before Applying?
A detailed explanation of the financial criteria PENNVEST uses in making a loan / grant determination, along
with a worksheet for estimating what type of funding award to expect, is located under the PENNVEST tab
at www.PACD.org. IMPORTANT: Note that being “Grant Eligible” does not guarantee that a Grant will be
offered. PENNVEST considers a number of other factors in making that decision.
What is the Act 167 Stormwater Plan Requirement?
As of June 2013 an Act 167 Stormwater Management Plan is NO LONGER REQUIRED. However, nonpoint
projects must be in compliance with all stormwater ordinances, regulations and plans adopted by the local
municipality.
Page 3Are DBE (Disadvantaged Business Enterprise) Solicitations Required?
They are not required for NPS projects at this time.
Do Davis Bacon Wage Rates Apply?
NO – nonpoint source projects are exempt from Davis Bacon requirements at this time.
Do Pennsylvania Prevailing Wage Requirements Apply?
It depends on the type of funding awarde. Prevailing wage IS required for any project receiving any grant
money. However, a project receiving a 100% loan award is exempt from the prevailing wage requirement.
Is It Possible to Start a Project Before Funding is Secured?
In certain cases (i.e. a flood emergency) it is permissible to start a project after a funding award is accepted
but before settlement occurs. However, you MUST have permission from PENNVEST in the form of a
“Letter of No Prejudice” before beginning the project. Contact the PENNVEST Project Specialist if you need
to start a project before settlement.
How do I start an Application?
Following is an outline of the application process. Detailed application instructions are in the PENNVEST
Online Manual at www.pacd.org. To apply:
1. Learn about the NPS Program. Go to the PACD website (www.pacd.org) and the PENNVEST website
(http://www.pennvest.state.pa.us) and read the information there.
2. Contact the regional PENNVEST Project Specialist or the PACD Pennvest Application Developer. The
Project Specialist is your primary PENNVEST contact during the application process.
3. If you don’t already have one, create a PA PowerPort username and password. See the link on the
PENNVEST website.
4. Prepare to apply by having design, engineering and cost analysis completed and determine the
water quality benefits of the project.
5. Retain legal counsel and an engineer (or a project expert) who will be identified on the application.
6. Go online and “Start the Application”. Provide the basic contact and project information asked for
in this section.
7. Hold a “Planning Consultation Meeting” to review project plans, discuss procedures and to get
recommendations on how to improve your project.
8. After the Planning Consultation Meeting, the application is “unlocked” and the “Complete
Application” section can be started.
a. Enter or upload the detailed project information, financial information and other
supporting documents.
b. Explain the water quality benefit including a description of the existing situation.
c. Forward technical documents, designs and engineering data to DEP for review.
9. Submit the Application –The PENNVEST Project Specialist and the DEP Project Manager review and
rank the application before it is submitted for PENNVEST Board Review.
10. Wait for a Board Determination. Board meetings are scheduled approximately two months after
the application cutoff date and funding determinations are released soon after the meeting.
11. If approved, the applicant has 45 Days to Accept the Funding and 270 days to Settle on the Funding.
12. Funds Disbursement and Project Close Out are also done online.
Page 4If a funding offer is made, am I obligated to accept It and proceed with the
project?
You are not obligated until funds are actually disbursed. There is a considerable investment of time and
resources in applying, so very few applicants back out once they decide to accept funding and move
forward.
WHAT ADVICE DO YOU HAVE FOR NEW APPLICANTS?
For applicants who choose to compete the application themselves.
A lot of information is required; focusing on one step at a time makes it manageable.
Be organized, pay attention to detail and expect to be working through multiple tasks.
Allow sufficient time to complete the application; don’t rush it.
Ask questions; use your resources – the PENNVEST Project Special and the DEP Project Manager
can help with the specific requirements for your project.
Private consultants, conservation districts and PACD can provide administrative help for the
PENNVEST application process as well as for the design and engineering.
WHO CAN I CONTACT WITH QUESTIONS OR TO GET STARTED?
PACD PENNVEST NPS Program Developer, Terry L Fisher, terry-fisher@pacd.org or 717-238-7223 x11
(office) or 717-712-6996 (cell).
Terry can answer general questions about NPS issues, the PENNVEST NPS program and the NPS
application procedures. He is available via phone, email or will meet with individuals or groups.
Regional PENNVEST Project Specialists
Dave Henning, Region 1, dahenning@pa.gov, 717- 783-4490
Larry Gasparato, Region 2, lgasparato@pa.gov, 717-783-6673
Tesra Schlupp, Region 3, tsschlupp@pa.gov, 717-738-8618
Rebecca Kennedy, Region 4, rebkennedy@pa.gov, 717-783-4488
Steve Anspach, sanspach@pa.gov, 717- 783-6589
The PENNVEST Project Specialists answer questions about the NPS Program and guide applicants
through the application process. To see the Regions go to:
http://www.portal.state.pa.us/portal/server.pt/community/financial_assistance/9321/get_regional
_assistance/541647
DEP Project Manager, Phil Wenrich, phwenrich@pa.gov, 717-705-6345
Phil reviews and rates all technical and environmental aspects of NPS projects. Among other things
he looks at water quality benefit, cost-to-benefit ratio, operation and maintenance plans, etc. He
also determines if projects meet the Act 167 requirement; local ordinances can be emailed directly
to Phil for review.
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