New affordability criteria for SRF grants in FY-2016

The Water Resources Reform and Development Act of 2014 (WRRDA) amended the Federal Water Pollution Control Act (FWPCA), and required States to adopt a regulation or policy establishing affordability criteria for "additional subsidization" using FWPCA capitalization grant funds. In Missouri, the Missouri Department of Natural Resources (DNR) administers FWPCA additional subsidization, which includes grants, principal forgiveness, and negative interest loans through Missouri's Clean Water State Revolving Fund. In order to continue offering additional subsidization, on September 21, 2015 the Missouri DNR adopted an Additional Subsidization Affordability Analysis (ASSA) policy to be implemented for the first time in FY-2016. Under the ASSA policy, only communities that have a designated "high" financial burden are eligible to receive additional subsidization. To designate a high burden, DNR must determine that the cost of sewer service in a community is at least 1% of median household income. While household cost to income is not the only affordability criteria, it is the threshold criteria for additional subsidization. Additionally, under the new law, States can provide additional subsidization only if the nationwide appropriation of FWPCA capitalization grants is at least $1,000,000,000 in that year.