Background of the Green Project Reserve (GPR)
The purpose of the Green Project Reserve is to achieve a higher level of sustainability for public water system infrastructure projects.
To encourage sustainability at least twenty percent of the 2011 federal appropriation for state revolving fund programs is being used to finance projects and project components that meet GPR criteria. That criteria incorporates water and energy efficiencies and environmentally innovative features in drinking water projects.
- In 2011 approximately $4.6 million dollars of Minnesota drinking water revolving fund money is available to finance projects that meet GPR criteria. The incentive to achieve this goal is that eligible projects or project components can receive 25% of the project financing in the form of principal forgiveness up to a maximum of one million dollars per project.
To be eligible to receive GPR funding, a system owner must provide an estimate of potentially eligible GPR costs when the project is submitted for placement on an upcoming intended use plan. To receive GPR funding the project must be in the GPR funding range for the year, and the Department of Health must approve the GPR business case for funding.
History of the Green Project Reserve (GPR)
GPR features first appeared in the 2009 American Recovery and Reinvestment Act, often referred to as the federal stimulus program. The priority at that time was to disperse the money as quickly as possible, so it was offered on a "first come first served" basis. Congress has since incorporated the GPR sustainability goal into the on-going drinking water revolving fund program. It is unknown whether this will be a permanent or temporary feature. There is no longer an emphasis for rapid fund distribution. Priority is based on project priority list ranking. Principal forgiveness money is initially reserved for the top ranked GPR eligible projects on the intended use plan and continues in descending priority order until the GPR target allocation is reached.