DEQ streamlines planning grants rules; adds priority points and clarifies eligibility for drinking‑water and wastewater pipeline

The Department of Environmental Quality presented proposed revisions to the agency’s planning grant administration rules covering drinking water and wastewater facility planning. Jerry (Jeri) Henry, administrator for DEQ’s Drinking Water Protection and Finance Division, told the committee the updates are administrative and intended to streamline the chapter and align eligibility with federal revolving‑fund requirements.

"This chapter provides a framework for administration of our planning grants, which support public drinking water and wastewater systems and developing planning documents, such as engineering facility plans," Henry said, presenting docket 580-122-2401. He said the rewrite updates web links, removes unused references, reorganizes for readability and clarifies priority scoring.

DEQ said the planning grants were combined in 2021 and this docket continues prior streamlining. Key changes include revised priority rating criteria (section 20) to add clarity where user charges exceed the affordability threshold (2% of median household income), removal of bonus points for public health emergencies (planning grants are not intended to address unplanned emergencies), and clarification that eligibility mirrors EPA drinking‑water and clean‑water state revolving fund guidance for consistency.

Henry said DEQ also incorporated feedback on bonus points by changing the letters‑of‑interest process to capture systems in good standing (for example, systems with recent sanitary surveys free of significant deficiencies, source water protection plans, or cross‑connection control plans) so those systems can receive points during the funding pipeline. He said the errors‑and‑omissions (professional liability) insurance amounts for consultants are less relevant at the planning stage and are being addressed separately in forthcoming loan rules.

Public involvement included two negotiated rule‑making sessions (April 16 and June 5, 2024) and a public comment period following publication in the September 2024 administrative bulletin. DEQ said it received comments, made clarifications, and that the changes do not expand regulatory authority; they are procedural and intended to ensure consistency with federal funding requirements.

Henry described grant funding sources: roughly $350,000 derived from clean‑water fees supports wastewater planning grants, and a federal capacity‑development grant (drinking‑water SRF) supplies roughly $350,000 for drinking‑water planning grants; DEQ also used American Rescue Plan Act funds in 2023 to support a larger set of planning grants. Henry asked the committee for support to adopt the docket when it is considered for a vote.

The committee asked about the source of planning grant funds and whether the changes would affect the public; Henry said the revisions are primarily administrative but could affect applicants by clarifying scoring and improving transparency. The hearing closed without a committee vote; the chair said votes will be scheduled for February 18.