REPORT TO THE GOVERNOR

Capacity: Refers to the capabilities required of a public water system in order to achieve and maintain compliance with the drinking water rules. It has three elements:

Technical: Technical capacity or capability means that the water system meets standards of engineering and structural integrity necessary to serve customer needs. Technically capable water systems are constructed, operated, and maintained according to accepted standards.

Financial: Financial capacity or capability means that the water system can raise and properly manage the money it needs to operate efficiently over the long term.

Managerial: Managerial capacity or capability means that the water system’s management structure is capable of providing proper stewardship of the system. Governing boards or authorities are actively involved in oversight of system operations.

DHHS: Department of Health and Human Services – The state agency responsible for administering the drinking water standards in Maine through a primacy agreement with US EPA.

DWP: Drinking Water Program – the agency within the Department of Health and Human Services that has the primary responsibility to administer and enforce the requirements of the SDWA.

DWSRF: Drinking Water State Revolving Loan Fund – Congress authorized this fund in 1996. The Maine Department of Human Services administers the DWSRF in concert with the Maine Municipal Bond Bank.

MRWA: Maine Rural Water Association – a not-for-profit organization largely devoted to providing technical assistance and educational training to small public water systems.

MWUA: Maine Water Utilities Association – an association of water utility personnel allied to provide mutual aid through the sharing of information and resources.

Program: A managerial subsection within the Drinking Water Program. Programs are activities occurring under sections that execute distinct tasks in support of the SDWA. The Capacity Development Program is a subsection within the Engineering and Operations Section.

PUBLIC WATER SYSTEMS (PWS): There are three classes of public water systems that are regulated by the DWP. They include:

· Community Water Systems (CWS): those systems that serve a residential customer base of 25 or more people for six or months a year. The CWS category includes water districts, water departments, water companies, mobile home parks, homeowner associations, apartment complexes, etc., all systems with their own water supplies and distribution systems.

· Non-Transient, Non-Community water systems (NTNC): those water systems that serve a stable but non-residential population of 25 or more persons for six or more months a year. The NTNC category includes schools, factories and businesses, offices, clinics, etc., all systems with their own water supplies and distribution systems.

· Transient, Non-Community water systems (TNC): those water systems that serve a variable population of 25 or more persons for 60 days or more a year. The TNC category includes summer camps, hotels and motels, restaurants, very small businesses, etc., all systems with their own water supplies and distribution systems.

RCAP (Rural Community Assistance Partnership) Solutions: Rural Community Assistance Partnership – a not-for-profit organization that provides technical assistance services and training for rural communities on drinking water and wastewater systems as well as other environmental, housing, economic and planning activities.

Section: A managerial subdivision of the Drinking Water Program responsible for the administration of a particular aspect of the SDWA. The DWP is subdivided into several sections.

SDWA: The Safe Drinking Water Act – Passed by the US Congress in 1974 and amended in 1986 and 1996. The SDWA seeks to safeguard the nation’s drinking water supplies and to assure that the nation’s consumers have safe drinking water.

SRF: State Revolving Fund – an abbreviation of the abbreviation of DWSRF.

TMF: Technical, Managerial and Financial – This abbreviation is used to save space in the report and avoid frequent repetition of these terms, defined previously as capacity.

US EPA: US Environmental Protection Agency – This federal agency oversees State primacy programs and provides financial support. One of US EPA’s functions is to determine when a State’s capacity development program is in compliance with the Safe Drinking Water Act.

INTRODUCTION

The Safe Drinking Water Act (SDWA or Act) was established in 1974 by Congress to protect public health by regulating drinking water standards. The Act was structured so that each state that accepts and meets primacy requirements identified by the EPA becomes the administrative and enforcement arm of the EPA at the state level. The Department of Health and Human Services’ Drinking Water Program (DWP) is the primacy agency for the State of Maine. The 1996 Amendments to the SDWA added a requirement for each state’s drinking water primacy agency to develop a Capacity Development Program (Program). Capacity development is the term for the broad goal of assisting public drinking water systems to both maintain and improve their technical, managerial and financial (TMF) operations. Maintaining or improving TMF operations seeks to ensure that public water systems fully comply with the requirements of the SDWA, consistently produce safe drinking water, and make effective and efficient use of resources. Capacity development encompasses many activities performed by the DWP and third party organizations involved in drinking water operations.

To support each State’s capacity development activities and to provide direction for those activities, each State was mandated to develop a capacity development strategy with the input and assistance of a committee of stakeholders, known as an advisory committee (AC). Based upon the recommendations of the AC, the DWP developed Maine’s strategy with 11 goals to help improve the TMF operations of public water systems in Maine; the strategy was completed and accepted in 2000. The 1996 Amendments to the SDWA mandate that a triennial report be issued to the governor of each state to apprise the governor of the efficacy of the capacity strategy and to report generally on the progress of improving the TMF capacity operations of public water systems. This report is issued in fulfillment of that requirement.

EXECUTIVE SUMMARY

Under the 1996 Amendments to the Safe Drinking Water Act (SDWA), each state was required to develop a strategy to guide each state’s Capacity Development Program. Capacity development is the term for the broad goal of assisting public drinking water systems to both maintain and improve their technical, managerial and financial (TMF) operations with the aim of helping public water systems fully comply with the requirements of the SDWA, consistently produce safe drinking water, and make effective and efficient use of resources. The US Environmental Protection Agency requires a triennial report on the efficacy of the Strategy’s implementation and progress on improving water system capacity.

The Department of Health and Human Services’ Drinking Water Program (DWP) is the primacy agency for the State of Maine. Maine’s Capacity Development strategy was implemented in 2000. The following summarizes the activities that have occurred during the past three years:

CAPACITY REVIEWS

DWSRF Capacity Reviews—DWSRF loan recipients must undergo a TMF capacity review before receiving loans.

Other Capacity Reviews—public water systems identified by referral may receive a TMF capacity review with follow-on recommendations for improvements in TMF capacity.

CAPACITY DEVELOPMENT GRANTS—eligible water systems may receive a 50% matching grant of up to $10,000 for the preparation of engineering or operations plans or studies that maintain or improve TMF capacity.

GENERAL OPERATIONS PERMITS—new CWS and NTNC water systems that begin operation after October 1, 1999 must apply for, demonstrate adequate TMF capacity and receive a General Operations Permit before serving water.

EDUCATIONAL OUTREACH—the Program has collaborated with other organizations to provide education and training to water system personnel.

OTHER DWP SECTIONS AND PROGRAMS SUPPORTING CAPACITY DEVELOPMENT— Within the DWP there are other Sections and Programs that assist in improving TMF capacity. Some of the Sections and Programs involved include the Operator Certification Program, the Engineering and Operations Section, Source Water Protection Section, and the DWSRF Program.

CHANGES IN THE CAPACITY DEVELOPMENT PROGRAM—GENERAL OPERATIONS PERMITS—As of November 2, 2004, Community and Non-community, non-transient water systems undergoing a change of ownership must undergo a capacity review.

CAPACITY DEVEOPMENT COLLABORATION WITH OTHER ORGANIZATIONS—The DWP collaborates to various degrees with other organizations to improve the TMF capacity of public water systems including the Maine Rural Water Association, the Maine Water Utilities Association, and Rural Community Assistance Partnership.

PROGRESS TOWARD IMPROVING CAPACITY

The direction in which the Program is heading, and the collaborative efforts the DWP and the Program is undertaking with other organizations, will continue to advance the improvement in TMF capacity of public water systems. The inclusion of more participating agencies may be the only development that can further this aim.

IMPLEMENTATION OF THE STRATEGY

INTRODUCTION to the IMPLEMENTATION of the STRATEGY

The intent of the 1996 Amendments to the SDWA, and of the guidance provided by the Environmental Protection Agency for the preparation of the strategy, was for the strategy to be a living document subject to change or revision. The legislation that established capacity development requiring each state to develop a strategy also intended that each state develop a strategy that was appropriate for addressing the needs of public water systems in the respective states. The Advisory Committee sought to identify the factors in-state that enhance or impair the aims of capacity development. Constructing the strategy required taking into consideration the identified enhancements and impairments to arrive at the goals considered appropriate and achievable for the state’s strategy.

Each state was allowed to develop the strategy that its creators felt would meet the needs of the particular state. The concept of allowing each state to develop its own unique strategy was to allow the various states the widest latitude and creativity. The states’ strategies also employ some common goals among them. Capacity development as a program is intended to be flexible and adaptable in order to identify program approaches that work and those that don’t. Therefore the state strategies are considered living documents subject to change and revision.

The 11 goals established for Maine’s strategy are ambitious and idealistic. To some degree most of the goals have been addressed, but achieving all aspects of the originally-envisioned goals of the capacity development strategy is unlikely. Some goals are impractical by reason of the demands placed on limited resources. Some goals results offer a limited return for the effort. At this time, five years into the implementation of the capacity development strategy, reassessing the strategy’s purpose and goals is in order.

STATUS of the STRATEGY GOALS

Following is an enumeration of the 11 strategy goals and a synopsis of their stages of implementation.

1) Develop an enhanced sanitary survey for field staff to use for gathering information on public water systems’ TMF operations and to determine those in most need of assistance.

The DWP is working with EPA to pioneer an electronic enhanced sanitary survey (EESS). This survey will include key questions on TMF capacity and security. The EESS will enable DWP field staff to assess capacity while conducting sanitary surveys. Field staff conducting standardized surveys can most quickly assess the greatest numbers of water systems. This can allow the DWP to identify the water systems in greatest need of assistance.

2) Develop a self assessment tool to aid water systems in determining their capacity strengths and needs.

The DWP has developed a self assessment tool. It was mailed to PUC-regulated water systems in 2002. The intent was to use the gained information to assess the baseline capacity of the surveyed systems; this task was not completed. Public water systems have not requested to use the self assessment surveys on their own.

3) Provide fiscal capacity and financial management training to public water system personnel.

This subject matter training is being delivered to water system personnel by training organizations within the state, including training provided by Maine Rural Water Association and the Maine Water Utilities Association, Rural Community Assistance Partnership (RCAP Solutions), among others.

4) Training in TMF capacity elements for DWP staff, contractors, consultants and other service providers.

This goal is being addressed in the same manner as goal 3. Additionally, DWP staff has access to regular, on-going Internet-based training from the Environmental Protection Agency’s training arm and contractors.

5) Water metering requirements should be enforced. The majority of Maine’s municipal, community public water systems provide metered service connections to customers, as well as having master meters at the head of their distribution systems to monitor water use. The DWP encourages the metering of all municipal community systems but does not necessarily enforce 100 percent compliance. The DWP may, however, require meter installation as a requirement from a sanitary survey or as a requirement of certain construction projects funded through the DWP.

6) DWP should cooperate with communities to ensure that public water system issues are considered during planning activities.

The DWP has engaged in a number of activities to encourage communities and other official organizations to consider drinking water system concerns and issues in their planning. Such activities include educating officials on source protection planning, educational outreach to school children, cooperating with state agencies on surface water source environmental concerns, and encouraging water systems to work with their communities in public works projects.

7) The DWP should enhance its efforts to provide early notice of impending rule changes.

The DWP has endeavored to provide training to water system personnel to notify them of impending rule changes. DWP personnel often provide training at training sessions facilitated by one or more of the professional training organizations in the state.

8) The DWP should use third party studies to show gained efficiencies from system consolidation.

The DWP has not engaged in much activity related to this goal; however, the DWP did provide capacity development grants to two community water systems for consultants to prepare engineering studies to assess the benefits of the two systems consolidating. The studies did provide information of what efficiencies could be gained. There are a number of community water systems in southwest Maine discussing the possibility, pitfalls and benefits of consolidating. RCAP Solutions specialist, John Moriarty, and Bill Johnson, Capacity Development Coordinator of the DWP, have spoken informally of facilitating the development of a regional water system trustee’s council for the overseers of downeast community water systems.

9) The DWP should encourage cooperation among state agencies, federal agencies and other governmental agencies and organizations on drinking water concerns.

The DWP has worked with officials in the Dept. of Education, the Dept. of Environmental Protection, the Maine Municipal Association, the USM Muskie School Environmental Finance Center, the Environmental Protection Agency, the Federal Bureau of Investigation, the Maine Emergency Management Agency and local emergency management agencies, numerous municipalities, among others.

10) The DWP should be proactive in educating the public on water system capacity development issues.

The DWP works with training organizations to provide continuing education on water system operations for water system operators. The DWP and the Maine Rural Water Association have provided board member training for water system trustees, municipal officials, superintendents and administrative personnel. The DWP maintains a website with current information on many subjects concerning the SDWA, water system regulations, and water system operations; the website also has many links to governmental and professional organizations’ sites.

11) Make useful appropriation of financial and personnel resources to promote TMF capacity assistance.

Between the DWP and professional training associations this goal is being accomplished in a number of ways. The DWP funds two technical assistance providers that provide on-site assistance with technical and some managerial matters. The DWP cooperates and coordinates with the Maine Rural Water Association, the Maine Water Utilities Association, and RCAP Solutions to provide direct and educational TMF capacity assistance to water systems in general and to individual water systems. DWP personnel provide educational training and direct assistance on TMF capacity issues.

PROGRESS TOWARD IMPROVING THE TMF CAPACITY OF PUBLIC WATER SYSTEMS

CAPACITY DEVELOPMENT IN THE DWP

THE CAPACITY DEVELOPMENT PROGRAM

The Capacity Development Program resides within the DWP under the Engineering and Operations Section. One person is responsible for structuring and administering the Program, but many DWP sections and programs foster capacity development through the execution of their normal duties.

The Program has a dual responsibility for generally improving TMF operations of existing water systems and assuring the TMF capacity of new community (CWS) and non-transient, non-community (NTNC) water systems created after October 1, 1999. The major Capacity Development activities for public water systems include the following.

CAPACITY DEVELOPMENT REVIEWS

DWSRF Construction Loan Reviews

Before capital loans are approved by the DWP for drinking water construction projects, applicants must undergo a capacity review to assure that the systems possess adequate TMF capacity. Since capacity reviews for construction loans began in earnest in 2001, 56 eligible systems have applied for loans and undergone capacity reviews. Fifty-four systems were approved as having adequate TMF capacity, one system was adjudged lacking capacity and withdrew its application, and one system is pending formal approval for capacity.

Other Capacity Reviews

Additionally, water systems may undergo a capacity review for a number of reasons. Capacity reviews may be conducted at a water system’s request to have their operations formally assessed; systems may be referred to us by another agency that has concerns about a particular water system’s TMF capacity; or if a water system has a historical record of being a significant non-complier (SNC), the system will receive a capacity review to uncover serious deficiencies in operations that put the system in a regular violator category. Capacity development reports are issued with recommendations for regaining and staying in compliance with SDWA regulations.

Table 1. PWSs receiving capacity reviews for reasons other than approval for DWSRF construction loan money

2003

1 mobile home park, a small community water system, received a capacity review due to its status as an historical SNC. CURRENT STATUS (9-21-05): The system regained compliance for a short while, and then fell out of compliance again; it is currently in negotiation to close.

2004

2 municipal water departments received capacity reviews at their request because of their concerns about their TMF capacity. The DWP made recommendations to improve TMF capacity.

1 small water district received a capacity review upon referral by the Maine Municipal Bond Bank. CURRENT STATUS (9-21-05): The system is receiving assistance from RCAP Solutions to regain capacity.

1 mobile home park, a small community water system, received a capacity review due to its status as an historical SNC. CURRENT STATUS (9-21-05): The system is currently remaining in compliance.

CAPACITY DEVELOPMENT GRANTS

Grant money is available for the preparation of planning and analysis documents for eligible water systems. The 15% set-aside, Assistance for Capacity Development, from the funding source that underwrites the Drinking Water Program administration and activities, provides money for the Capacity Development Grants. The grants are available to community and non-profit, non-community water systems for the preparation of engineering or planning studies to help systems maintain or improve TMF capacity. The grant money is provided on a reimbursement basis to systems that have completed DWP approved plans or studies. Grant money covers 50% of the plan or study costs up to a maximum reimbursement amount of $10,000. The Capacity Development Grant Program was initially instituted in 1998 and then was dormant for some time before being reactivated again in 2002. The kinds of plans or studies that are allowed include:

· Comprehensive System Facilities Plans

· Capital Improvement Plans

· System Hydraulic Modeling Studies/Reports

· Comprehensive Operations and Maintenance Manuals

· System Vulnerability Assessments

· Emergency Response Plans

· Management Review Studies/Reports

· Planning Software Designed for Improving System Operations

· Engineering Studies for New or Supplemental Water Sources

· Engineering Studies for Improved Water Treatment Operations

· Other professionally prepared documents that enhance system capacity, as determined by the DWP

Table 2. Number of Capacity Development Grant applicants and recipients from 1998 to Oct. 2001

15 eligible community water systems applied for grants;

3 systems withdrew;

12 plans were completed, accepted and reimbursed.

Table 3. Number of applicants for Capacity Development Grants since 2002

39 eligible water systems have applied for grants since 2002;

8 projects are currently underway;

3 water systems withdrew their applications;

1 water system applied but has never undertaken a project;

26 water systems plans and studies completed, accepted and reimbursed

Capacity Development Grant reimbursements from 1998 to present

$107,404.00 for the period of 1998 to 2001

+$210,656.45 for the period of 2002 to the present

$318,404.45 total reimbursement outlays for the Capacity Development Grants

SELF-ASSESSMENT SURVEYS

The Strategy calls for the development of self-assessment surveys for all regulated public systems. The self-assessment surveys had two purposes: gather baseline information on the TMF capacity of the water systems, and provide an assessment instrument that water systems could use on their own. This effort began in 2002 when the PUC-regulated systems were surveyed. Conducting the surveys is a large and demanding task for the results. Additionally, there are doubts that the self-assessment surveys provide reliable results. Rather, consideration to be given to the use of electronic sanitary surveys conducted by trained field staff. This approach can more reliably accomplish the gathering of baseline information for accurate information. The field staff is also one of the best identifiers of public water systems in need of capacity assistance. Adopting the electronic sanitary surveys will require altering the strategy goal of employing self-assessment surveys.

GENERAL OPERATIONS PERMITS

All new community (CWS) and non-transient, non-community (NTNC) water systems commencing operations after October 1, 1999 must receive a General Operations Permit (GOP) before serving water. The requirement for new CWS and NTNC systems to obtain GOPs is to assure that the new systems possess adequate TMF capacity before operating, and to be assured that the systems will continue to possess TMF capacity into the future. Of the 17 water systems that have been permitted to the present, only one system had a single violation, a single failure to monitor for lead and copper. The violation was resolved, and all of the others have had no violations at all.

Table 4. Numbers of public General Operations Permit (GOP) actions

39 public water systems applied for GOPs

17 public water systems have received GOPs

14 public water systems are pending GOP approval

7 public water systems were deregulated and don’t require GOPs

EDUCATIONAL OUTREACH—TRUSTEE TRAINING

The DWP, working with the Maine Rural Water Association, has funded, helped develop subject content, and assisted in presenting training sessions and topics for public water trustees, commissioners, selectmen, system managers and administrators. Topics have included subjects such as conflicts of interest, better board operations, employment policies, rate setting, freedom of access laws, trustee duties and responsibilities, understanding contracts and insurance requirements

Since the trustee training sessions began in 2003, 274 overseers, managers and administrators from water and wastewater systems attended 14 evening training sessions held at various locales around the state. The sessions have been well received by the attendants who state that they would like to attend more classes of this sort in the future. They also appreciated the opportunity to network with other trustees and overseers.

OTHER DWP SECTIONS AND PROGRAMS SUPPORTING CAPACITY DEVELOPMENT

Other DWP sections and programs that directly aid capacity development are:

Ø Operator Certification Program—supports technical and managerial capacity through the licensing and educating of water operators;

Ø Field Services—supports technical capacity through the formal assessment of operating water systems and providing technical advice for complying with the SDWA;

Ø Source Water Protection—supports technical and managerial capacity by educating and assisting public water systems and communities in protecting public water supply sources;

Ø Drinking Water State Revolving Fund (DWSRF)—supports technical capacity by loaning capital funds for public water systems to make improvements to water system infrastructure. Infrastructure improvements and upgrades usually lead to better compliance with SDWA water quality and safety standards.

CHANGES IN THE CAPACITY DEVELOPMENT PROGRAM—GENERAL OPERATIONS PERMITS

State of Maine drinking water rules in effect beginning November 2, 2004 require all community water systems and non-transient, non-community water systems changing ownership to notify the DWP of the change of ownership. Prior to these rule changes, once a public water system was established ownership could change unimpeded. The rule change also requires that public water systems undergoing a change of ownership must undergo a capacity review to determine the adequacy of the system’s TFM capacity. A system that passes the review will receive a General Operations Permit. A system that fails to pass the capacity review cannot be transferred until it meets capacity requirements.

To date, no water system transferring ownership required to secure a General Operations Permit has done so. The work load imposed by the rule change has significantly increased the burden on the Capacity Development Coordinator. There has not been time to attend to the new permit requirements. It is very difficult to keep current with the new water systems requiring General Operations Permits; adding transfer of ownership to the permitting process has been overwhelming.

CAPACITY DEVEOPMENT COLLABORATION WITH OTHER ORGANIZATIONS

The DWP directly collaborates with several professional organizations and governmental agencies on drinking water issues. Some of the closest and most active collaborations are with the Maine Municipal Bond Bank, the Maine Rural Water Association, the Maine Water Utilities Association, RCAP Solutions, and the Rural Utilities Service.

MAINE MUNICIPAL BOND BANK (MMBB)

STATE OF MAINE

Drinking Water Program

Section: A managerial subdivision of the Drinking Water Program responsible for the administration of a particular aspect of the SDWA. The DWP is subdivided into several sections.