2023 DWSRF DRAFT IUP 12-16-2022 — File 23-0300

DRAFT 2023 INTENDED USE PLAN For the DRINKING WATER STATE REVOLVING FUND December 16, 2022 Charles D. Baker Governor Karyn E. Polito Lieutenant Governor Bethany A. Card Secretary Martin Suuberg Commissioner

EXECUTIVE SUMMARY The Massachusetts Department of Environmental Protection (MassDEP) is pleased to present the Draft Calendar Year 2023 Intended Use Plan (IUP), which lists the projects, borrowers, and amounts that are being recommended for financing through the Drinking Water State Revolving Fund (DWSRF) loan program. The DWSRF is a joint federal-state financing program that provides subsidized loans to protect public health by improving water supply infrastructure systems and protect drinking water in the Commonwealth. Massachusetts is offering approximately $375 million to finance drinking water projects across the Commonwealth. As noted in Table 1, approximately $300 million is being offered to finance 38 new construction projects, and $60 million towards financing 9 previously approved multi- year projects. An additional $10 million has been set-aside to finance planning projects and PFAS design projects in calendar year 2023; MassDEP will begin accepting loan applications for planning projects and PFAS design projects, on a rolling basis, as soon as the Final IUP is published. An additional $5 million has been allocated to the emergency set-aside account. Twelve proposals, totaling $2 million, as noted in Table 2. are recommended to receive financial assistance for their asset management planning (AMP) projects. Communities will receive 60% of the project cost, up to $150,000, as a grant from the Massachusetts Clean Water Trust (the Trust), totaling approximately $1 million for the 2023 applicants. The remaining costs may be funded by local contributions of cash, or a combination of cash and in-kind services. All or part of the local contribution may be financed by a loan from the Trust at the standard 2% interest rate for a term of up to five years. 2023 Highlights • On November 15, 2021, President Biden signed the Bipartisan Infrastructure Law (BIL) that provides three new federal grants through the DWSRF: 1. Supplemental Drinking Water State Revolving Fund Grant 2. Lead Service Line Replacement Grant 3. Emerging Contaminants Grant These grants will be provided annually over the next five years. For fiscal year 2023, Massachusetts expects to receive $48.2 million for the Supplemental DWSRF Grant, $65.6 million for the Lead Service Line Replacement Grant and $17.5 million for the Emerging Contaminants Grant focusing on PFAS. Each of these grants requires that Massachusetts provide a portion of the funding as loan forgiveness. The Supplemental DWSRF Grant requires that $23.6 million, or 49% of the total grant amount, be provided as loan forgiveness to Disadvantaged Communities. The Lead Service Line Grant requires that $32.1 million, or 49% of the total grant amount, be provided as loan forgiveness to Disadvantaged Communities. The Emerging Contaminants Grant requires that the full amount of the grant be provided as loan forgiveness and that at least 25% of the grant be directed to Disadvantaged Communities. 1

Using supplemental funds, Massachusetts anticipates being able to offer fixed percentages of additional loan forgiveness for eligible projects on the 2023 IUP. These fixed percentages are anticipated to be consistently applied to the future IUPs covered under these new BIL federal grants subject to funds availability. MassDEP, in consultation with the Massachusetts Clean Water Trust, may amend this IUP as necessary given that the United States Environmental Protection Agency (USEPA) continues to issue guidance to states on the implementation of the expanded SRF program. The substantial increase in the 2023 IUP capacity is evidence of the additional BIL funds being put to use in the state, and Massachusetts looks forward to financing more projects at a lower cost to communities throughout the Commonwealth. Some of the key provisions of BIL include amendments to the Safe Drinking Water Act (DWSRF Base Program of SDWA): American Iron and Steel - BIL makes the American Iron and Steel (AIS) procurement requirement permanent for all DWSRF construction projects going forward. Build America, Buy America (BABA) Act – BIL also expands domestic sourcing requirements with the inclusion of the BABA. Starting on May 14, 2022, all steel, iron, manufactured products, non-ferrous metals, plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables), glass (including optic glass), lumber, and drywall used in infrastructure projects for federal financial assistance programs must be produced in the United States, unless (i) the SRF borrower has requested and obtained a waiver from the EPA pertaining to the Project or the Project is otherwise covered by a general applicability waiver; or (ii) the MassDEP has otherwise advised the borrower in writing that the Build America, Buy America requirement is not applicable to the project. The Made in America Office at the Office of Management and Budget (OMB) has developed initial overarching implementation guidance: https://www.whitehouse.gov/wp-content/uploads/2022/04/M-22-11.pdf. Additionally, USEPA issued an adjustment period waiver for projects that initiated planning design prior to May 14, 2022, a small project applicability waiver for projects with SRF loans of $250,000 or less, and a De Minimis waiver: https://www.epa.gov/cwsrf/build-america-buy-america- baba-approved-waivers. The USEPA will be issuing BABA implementation guidance specific to the SRF program. BIL raised the minimum Safe Drinking Water Act requirement for Additional Subsidy to Disadvantaged Communities from 6% to 12%, establishing an additional subsidy range of 12% to 35% for the annual DWSRF capitalization grants, while Congress requires that states use 14% of the annual DWSRF grant for additional subsidy. Massachusetts expects an award of $25.5 million in 2023. Additional subsidy will be provided in the form of loan forgiveness for communities that might otherwise be unable to afford to undertake a project. MassDEP and the Trust will continue to provide loan forgiveness as a fixed percentage of principal. Further details may be found in section II(A) of this IUP. Information about the Trust’s annual Affordability Calculation may be found on the following webpage: https://www.mass.gov/info-details/the-disadvantaged-community-program#the-affordability- calculation. 2

• BIL allows states the flexibility to move funds between the CWSRF and the DWSRF programs. Due to great demand for PFAS remediation in drinking water, Massachusetts will transfer $7.2 million of CWSRF Emerging Contaminant funds to the DWSRF Emerging Contaminant program (100% of the grant amount). Further details may be found in section V(E) of this IUP. • During the 2023 calendar year, PFAS remediation projects will continue to be eligible to receive additional subsidy in the form of a 0% interest rate loans contingent on the availability of funds. • MassDEP is also offering additional loan forgiveness for projects with a renewable energy component. • The USEPA requires that 15% of total IUP assistance be directed toward Small Systems, those serving populations fewer than 10,000. Thirteen of the 2023 Small System applicants are being recommended for financing from the 2023 IUP with projects totaling approximately $77 million. Since financing for small systems exceeds 15% of $375 million, or $56 million, Massachusetts expects to meet this requirement. • 100% Loan Forgiveness Lead Service Line Identification and Planning Projects - Massachusetts is offering loans with 100% loan forgiveness for planning activities assisting public water suppliers (PWS) to complete Lead Service Line (LSL) inventories and for the development of LSL replacement programs. MassDEP is accepting loan applications for LSL planning projects on a rolling basis while funding is available. It is recommended that PWS apply as soon as possible as funding will be provided at a first come, first served basis. MassDEP appreciates the efforts that proponents have invested in the development of applications and recognizes their efforts to enhance and protect the public health of the Commonwealth. 3

Calendar Year 2023 DWSRF Draft Intended Use Plan DRINKING WATER STATE REVOLVING FUND TABLE 1 Rating Applicant SRF ID Project Project Cost NEW PROJECTS IUP Cost 2023 553 SPRINGFIELD WATER AND SEWER COMMISSION (PF)(RE)(BG)(W) 12550 Replacement of Water Treatment Plant – Phase 2B $280,900,000 $9,540,000 553 SPRINGFIELD WATER AND SEWER COMMISSION (PF)(RE)(BG)(W) 12465 Replacement of Water Treatment Plant – Phase 2A $5,460,000 $5,460,000 546 SOMERVILLE (H)(LR)(PF) 10382 Somerville LSL Replacement Program Phase 3 $2,068,800 $2,068,800 541 SCITUATE (BG) 7348 Surface Water Treatment Plant $41,382,000 $15,000,000 537 SHARON (RE)(SG) 12443 Wells 2 & 4 Water Treatment Plant $20,057,875 $15,000,000 536 ANDOVER (H)(LR) 12495 Lead Service Line Replacement $4,050,000 $4,050,000 534 MASSACHUSETTS WATER RESOURCES AUTHORITY 7331 Cp-2 NEH Improvements $13,640,000 $1,000,000 532 FALL RIVER (LR)(PF) 12468 Lead Service Line Replacement $4,150,000 $4,150,000 532 WEBSTER (PF)(SG) 10380 PFAS Water Treatment Plants $32,800,000 $15,000,000 530 LITTLETON WATER DEPARTMENT (H)(SG) 12397 Water Supply Main Extension Littleton/Boxborough $19,078,000 $15,000,000 * 530 FOXBOROUGH (SG) 12535 Chestnut Street WTP Improvements $14,000,000 $14,000,000 529 SUDBURY (H)(SG) 11383 East Street WTP PFAS Treatment $5,810,000 $5,810,000 529 CONCORD (BG) 12423 Nagog Pond Water Treatment Plant $35,488,084 $15,000,000 528 YARMOUTH (EC)(PF) 12531 Yarmouth Well 4&5 Package PFAS Treatment System $4,723,700 $4,723,700 527 ACTON WATER SUPPLY DISTRICT (EC)(H) 12506 PFAS Treatment at South Acton WTP $8,700,000 $8,700,000 527 ACTON WATER SUPPLY DISTRICT (EC)(H) 12517 PFAS Treatment at Central Acton WTP $5,420,000 $5,420,000 526 MIDDLEBOROUGH (EC)(H)(PF) 9373 East Grove Street Water Treatment Plant $18,500,000 $15,000,000 526 WESTBOROUGH (EC) $6,311,731 $6,311,731 526 WOBURN (PF) $18,990,000 $15,000,000 525 EAST BROOKFIELD (PF) $8,080,000 $8,080,000 * 525 MELROSE (H)(LR) $1,035,000 $1,035,000 524 CHATHAM $19,800,000 $15,000,000 523 RAYNHAM (PF) $23,500,000 $15,000,000 523 AQUARION WATER COMPANY - MILLBURY $3,275,000 $3,275,000 * 522 STOUGHTON (H)(PF) $5,279,500 $5,279,500 522 WEST BRIDGEWATER (PF) 7272 Oak Street WTP PFAS Improvements 12538 Horn Pond Water Treatment Plant PFAS Removal 12438 West Street Fe and Mn WTP 8359 Melrose Lead Service Replacement 12457 Training Field Road PFAS Water Treatment Plant 11390 PFAS Water Treatment Plants 12509 Oak Pond Well GAC Treatment Facility 7298 Muddy Pond Pump Station PFAS Treatment 12432 West Bridgewater Long Term PFAS Compliance $3,163,200 $3,163,200 * 4

* - Small System (BG) - Base Capitalization Grant (D) - Dropped by Applicant (EC) - BIL DWSRF Emerging Contaminants Grant (H) - Housing Choice Communities (L) - Water Infrastructure Funding Transfer Act (WIFTA) Projects (LR) - BIL DWSRF Lead Service Line Replacement Grant (PF) - Disadvantaged Community (RE) - Potential Renewable Energy Projects (SG) - BIL DWSRF Supplemental Grant (W) - Water Infrastructure Finance and Innovation Act (WIFIA) # - Projects contains Energy Efficiency, Renewable Energy and/or meets EPA's definition of a Green Project (https://www.epa.gov/greeningepa/energy-and-emissions-epa) 522 FRANKLIN (H) 12544 Franklin Well 7/7A PFAS Treatment $5,600,000 $5,600,000 521 BELLINGHAM (PF) 12475 PFAS Treatment at Hartford Avenue WTP $20,800,000 $15,000,000 520 HOPEDALE (PF) 12478 Greene Street WTP PFAS Treatment $4,500,000 $4,500,000 * 520 LYNNFIELD CENTER WATER DISTRICT 7322 Glen Drive WTP & Station 2 Pipeline $18,960,000 $15,000,000 * 520 EVERETT (H)(LR)(PF) 12399 Everett Lead Service Line Replacements Phase 4 $1,881,000 $1,881,000 517 AQUARION WATER COMPANY - MILLBURY 11382 Jacques Wells Water Treatment Facility $6,731,250 $6,731,250 * 516 WEST BRIDGEWATER (PF) 12428 Cyr Street and Norman Avenue Fe/Mn Treatment $11,740,001 $11,740,001 * 513 AQUARION WATER COMPANY - OXFORD 12519 North Main Street Water Treatment Plant $2,904,453 $2,904,453 * 511 CONCORD (LR) 12477 Concord, MA Lead Service Line Replacements Project $2,000,000 $2,000,000 509 AQUARION WATER COMPANY – DOVER (PF) 12458 Chickering Drive Station $980,000 $980,000 * 507 AQUARION WATER COMPANY – DOVER (PF) 12511 Springdale Farms Treatment System Improvements $1,248,750 $1,248,750 * 507 HARVARD 7285 Harvard-Devens Water System Interconnection $4,850,000 $4,850,000 * $299,502,385 TOTAL OF NEW PROJECTS $687,858,344 (Count: 38) (Average Rating: 526.03) 5

Applicant SRF ID Project Project Cost MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS IUP Cost 2023 ABINGTON-ROCKLAND JOINT WATER WORKS (PF) 7152 Hannigan and Myers Avenue WTP PFAS Treatment $26,672,000 $11,672,000 BRAINTREE #(RE)(PF) 7258 Tri-Town Regional Water Treatment Plant $55,212,683 $10,000,000 HOLBROOK #(RE)(PF) 7259 Tri-Town Regional Water Treatment Plant $19,904,296 $3,200,000 MASSACHUSETTS WATER RESOURCES AUTHORITY 4564 Weston Aqueduct Supply Main Rehabilitation $19,382,850 $5,882,850 MASSACHUSETTS WATER RESOURCES AUTHORITY 6691 Northern Intermediate High Section 89 Replacement $32,619,000 $7,117,150 MASSACHUSETTS WATER RESOURCES AUTHORITY 7218 Section 23, 24, 47 Water Mains Rehab $14,700,000 $1,000,000 NEW BEDFORD 7173 Highway Bridge Crossing Replacement Project $6,300,000 $1,300,000 NEW BEDFORD (PF) 7172 Quittacas Water Treatment Plant Upgrades $23,637,500 $13,637,500 RANDOLPH #(RE)(PF) 7260 Tri-Town Regional Water Treatment Plant $39,780,862 $6,800,000 $60,609,500 TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS $238,209,191 (Count: 9) Applicant SRF ID Project Project Cost MassDEP PRIORITY PROJECTS IUP Cost 2023 EMERGENCY SRF SET-A- SIDE 2978 $5,000,000 $5,000,000 PLANNING AND PFAS DESIGN SRF SET-A-SIDE 13574 $10,000,000 $10,000,000 $15,000,000 TOTAL OF MassDEP PRIORITY PROJECTS $15,000,000 (Count: 2) $375,111,885 TOTAL OF DRAFT INTENDED USE PLAN $941,067,535 6

Rating Applicant SRF ID SRF Loan 89 AUBURN WATER DISTRICT 12463 85 CHESTER 12426 82 RUSSELL 12497 81 DOUGLAS 12556 81 WEST SPRINGFIELD 12424 79 FITCHBURG 11393 73 SUDBURY 12520 73 PEABODY 8354 68 MILFORD 12545 61 SOUTHAMPTON 12425 58 MARION 12435 51 MIDDLEBOROUGH 12451 $0 $0 $2,059,700 $1,096,800 $1,096,800.00 $2,059,700.00 TOTAL OF PROJECT PRIORITY LIST Water Utility Asset Management Planning $209,000 $125,400 TOTAL OF ASSET MANAGEMENT PLANNING PROJECTS (Count: 12) Expand and Improve Asset Management System $80,000 $48,000 Marion DPW Asset Management Planning $55,000 $33,000 Peabody Water Asset Management $250,000 $150,000 Milford Asset Management Plan $73,200 $43,500 Fitchburg Water System Asset Management $102,000 $61,200 Sudbury Water System Asset Management Plan $250,000 $150,000 $140,000 $84,000 West Springfield Water SCADA Improvements $481,000 $150,000 TABLE 2 DRINKING WATER STATE REVOLVING FUND Calendar Year 2023 DWSRF ASSET MANAGEMENT PLANNING PROJECTS ASSET MANAGEMENT PLANNING PROJECTS Project Project Cost Grant Amount Auburn Water District Water Asset Management Plan $155,000 $93,000 Chester Water Asset Management Plan $113,500 $68,100 Russell Water and Wastewater Asset Management Plan $151,000 $90,600 Water Asset Management Plan 7

I. BACKGROUND The Federal Safe Drinking Water Act Amendments of 1996 authorized the award of capitalization grants to the States to create individual DWSRF loan programs. These programs provide state-administered subsidized loans to finance publicly and privately owned community water supply projects. Under the DWSRF program, states provide a 20% match to the federal capitalization grant to create the loan fund. Projects to be financed are selected using a priority ranking system based upon protection of the public health and improved compliance together with affordability. The DWSRF is jointly administered by MassDEP and the Trust. MassDEP manages the technical aspects of project development while the Trust manages the disbursement of funds and the sale of bonds to provide capital to the program. Pursuant to the applicable provisions of the Federal Safe Drinking Water Act Amendments of 1996, Chapter 78 of the Acts of 1998, and 310 CMR 45.00, MassDEP has developed its Calendar Year 2023 Intended Use Plan/Project Priority List (IUP/PPL), with its attendant ranking of drinking water projects, as noted in Table 3. A project must appear on the PPL and the IUP Project Listing to receive financial assistance under the DWSRF Loan program. This Draft IUP includes $375 million in financing and describes Massachusetts’ intended uses for all funds available in the DWSRF program for calendar year 2023. It includes the projects that Massachusetts expects to provide financial assistance to and an overview of how the state will comply with federally mandated requirements. To ensure communities continue to protect the health of our residents while maintaining low costs for consumers, the Commonwealth is pleased to offer subsidized financing to our water suppliers for projects in this Intended Use Plan that remove PFAS from drinking water. In doing so, the Commonwealth reserves its rights to assert claims and causes of action to recover funds from third parties, including product manufacturers, otherwise responsible for the PFAS contamination impacting the Commonwealth’s drinking water, groundwater, surface waters or environment in any manner This Draft IUP contains 12 Asset Management Planning (AMP) projects, totaling $2 million. These communities will receive 60% of the project cost, up to $150,000, as a grant from the Trust, totaling $1 million. The remaining project costs are to be funded by local contributions of cash and/or in-kind services. All or part of the local contribution may also consist of a loan from the Trust at the standard 2% interest rate with a term of up to five years. All new projects receiving financial assistance from the DWSRF will be eligible for loans at 2% interest rate or, in certain instances, below 2%. The Commonwealth subsidizes these loans, funding the spread between market interest rates and the awarded rate. This subsidy will continue to be allotted to the SRF programs in this and upcoming budget cycles. Certain priority projects, with the primary purpose of PFAS mitigation, may be eligible for 0% interest loans. Prior to committing to permanent financing, MassDEP will review all submitted information to determine a project’s eligibility for the reduced interest rate. The standard term for constructions 8

loans is 20 years. To be considered for financing priority, communities must have appropriated the necessary local project funds or have committed to a schedule to obtain those funds by June 30, 2023. Completed applications must be submitted to MassDEP at the earliest possible time, but not later than October 13, 2023. A complete application must contain the local debt authorization and the required supporting documentation. Any project not meeting these deadlines will be removed from the IUP Project Listing. Projects offered financing that do not advance, may be replaced by the highest ranked project on the Project Priority List that is ready to proceed. Following receipt of a complete loan application package, MassDEP must issue a Project Approval Certificate to the Trust no later than December 31, 2023, certifying the total costs of the project determined to be eligible for financial assistance. The Trust then proceeds to execute loan commitments. All SRF related documents, including this IUP, the priority ranking system, loan application forms, regulations, and IUPs from the previous year, may be found on the MassDEP web site at: https://www.mass.gov/state-revolving-fund-srf-loan-program. II. CALENDAR YEAR 2023 PROJECT FINANCING In 2023, MassDEP expects to finance 38 new construction projects and 9 carryover projects totaling approximately $375 million. Included in this amount is a $5 million emergency reserve to finance unanticipated problems of acute public health concern that may arise during the year, and an additional $10 million to finance planning projects and PFAS design. Table 1 is the list of projects being offered financing for 2023 and Table 3 is the extended PPL. Tables 2 and 4 list the projects that have been selected to receive grants from the Trust for their Asset Management Planning projects. Massachusetts expects to receive $25.5 million, plus a combined $131 million in supplemental funds, from the United States Environmental Protection Agency (USEPA) to fund the DWSRF for 2023. Following are some of the more notable DWSRF program components and requirements: A. Additional Subsidy Eligible construction projects appearing on the 2023 IUP will receive additional subsidy, to the extent that funds are available, in the form of loan forgiveness, based on the affordability tier system described below and provided as a set percentage based on the community's tier ranking. Massachusetts has established an affordability criteria to calculate and distribute loan forgiveness. The assignment of communities to an affordability tier is based on an adjusted per capita income (APCI) calculation. Tier rankings are calculated annually by comparing a 9

community’s APCI as a percentage of the Commonwealth’s APCI. See the following table for the tier breakdown. Tier Percent of State APCI Minimum Loan Forgiveness 1 80% or greater, but less than 100% 6.6% 2 60% or greater, but less than 80% 13.2% 3 Less than 60% 19.8% BIL funding may increase the amount of loan forgiveness to Disadvantaged Communities beyond these standard offerings. With the establishment of the Disadvantaged Communities program, all projects that are eligible for additional subsidy on the 2023 DWSRF IUP and PPL are now considered Disadvantaged Communities and will be reported as such. The establishment of a formal DWSRF Disadvantaged Communities program does not change the distribution of loan forgiveness and does not require any additional actions from eligible communities beyond the requirements already in place for loan forgiveness. Projects that have a renewable energy component will qualify as a Tier 1 community and receive loan forgiveness for the portion of the loan that is financing the renewable energy component. Loan forgiveness will be awarded to construction contracts that are executed by June 30, 2024, and may be limited to the lesser of the executed contracts or the IUP cost. Planning projects are not eligible for loan forgiveness. In addition to meeting the affordability criteria, under Chapter 259 of the Acts of 2014, An Act Improving Drinking Water and Wastewater Infrastructure, applicants for additional subsidy are required to: a. establish water enterprise funds (or equivalent separate restricted accounts); and b. not have made any transfers from such enterprise fund in the last 5 years to fund the community’s general operating budget. B. Housing Choice Initiative Communities that have earned the Housing Choice designation at the time of the SRF project solicitation are eligible to have their loan’s interest rate reduced by 0.5% (for example from 2% to 1.5% for a standard term loan). However, under no circumstance can the interest rate fall below 0%. For example, if a community qualifies for a 0% interest loan for a PFAS mitigation project, it cannot receive an added discount through the Housing Choice designation. Housing Choice initiative communities must also certify to the enterprise account requirements noted above. 10

C. Applicant Cap The Massachusetts SRF regulations (310 CMR 45) place a limit on any one proponent receiving any more than 25% of the available financing each year. Because of the shortfall of available funds relative to the number of worthwhile projects, and to extend financial assistance to as many highly ranked projects as possible, MassDEP is implementing an applicant cap of $15 million for the 2023 financing period. MassDEP reserves the right to waive the applicant cap limitation if MassDEP and the Trust determines that one or more projects on the IUP Project Listing are not ready to proceed. If the applicant cap is waived, communities may see an increase in financing for projects not fully financed on the IUP listing. D. Small Systems Congress requires that 15% of the total amount of DWSRF funds be dedicated to Small Systems, i.e., drinking water systems serving fewer than 10,000 customers. The total DWSRF funds expected to be available for 2023 is $375 million. Fifteen percent of that amount is $56 million. The IUP list contains 12 small system projects totaling approximately $77 million, which exceeds the 15% requirement. Therefore, Massachusetts expects to meet this requirement. E. Set-Aside Activities Congress allows states to apply set-asides from the DWSRF grant, and the supplemental BIL grants, to provide management of the program and technical assistance to Public Water Suppliers. MassDEP's objectives for DWSRF set-aside activities are included as Appendix A. For 2023, these set-aside activities include funds that will be earmarked for issues involving small water supply systems, local assistance for wellhead protection, capacity implementation, and program management and administration. Appendix A details how MassDEP intends to utilize these set-aside funds in FY 2023 to implement the federal SDWA. III. SHORT- AND LONG-TERM GOALS The following are the goals that Massachusetts has set for its DWSRF: Short-Term Goals • Finance highly ranked, construction ready, drinking water improvement projects. • Prioritize projects that undertake full replacements of lead service lines. • Prioritize projects that remediate PFAS in drinking water. • Promote the asset management planning and cybersecurity best management practices by providing grants through the Trust’s AMP grant program. • Finance eligible projects addressing unanticipated problems of acute public health concern that arise during the year and constitute an imminent public health threat. 11

• Provide targeted outreach and engage with communities across the Commonwealth about SRF program benefits, priorities, and opportunities to improve water quality and reduce project costs. Long-Term Goals • Ensure that the DWSRF program remains accessible to assist communities across the Commonwealth to maintain compliance with the Safe Drinking Water Act, particularly communities with small systems. • Identify and prioritize additional subsidy for projects in the IUP that serve Disadvantaged Communities. • Ensure that water treatment projects financed through the SRF fully consider cost- effective energy efficiency measures and/or renewable energy strategies. • Assist public water suppliers to finance projects to address the impact of climate change and resiliency concerns on the safe and continuous operation of the utility. • Promote systematic Asset Management Planning for drinking water utilities to achieve long-term sustainability and deliver consistent service in a cost-efficient manner. • Establish and efficiently manage a permanent source of financing for drinking water infrastructure to enhance and protect public health. • Promote public engagement and program transparency by publishing informative and readily accessible program materials and reports. IV. ALLOCATION OF FUNDS A. Criteria and Method for Distribution of Funds Massachusetts rates projects using the Commonwealth’s priority ranking system. The criteria used to rank potential projects can be found on the MassDEP website at http://www.mass.gov/eea/agencies/massdep/water/grants/state-revolving-fund.html. The ranking system is reviewed annually to reflect changing priorities at MassDEP. The criteria emphasize the nature of the public health problem that the project will address, compliance with the Safe Drinking Water Act, project affordability, the extent to which the project is consistent with regional or watershed wide plans and the extent to which the project qualifies as a green project, a project that minimizes greenhouse gas emissions and energy use. Once all project proposals have been rated and ranked, the PPL is developed (Table 3). With input from the Trust, MassDEP identifies all the sources of funds and spending limits and develops the IUP Project Listing (Table 1). To be considered for financing, projects must meet State and Federal eligibility requirements, must be ready to proceed during the financing period, must have appropriated local funds necessary to finance the entire project, and have a MassDEP approved planning element. An approvable planning element can be a Project Evaluation Report, Integrated Water Resource Management Plan, or other MassDEP sanctioned planning document. Projects proposing to 12

replace lead service lines must ensure that lines will be replaced to the users’ meters to preserve priority ranking. Furthermore, no community can receive financial assistance unless it can demonstrate that it has adequate technical, financial, and managerial capacity, as approved by MassDEP. Eligibility includes consistency with the assurances described in this document and the requirements contained within MassDEP’s financial assistance regulations. B. Project Bypass Procedure A project on the IUP Project Listing may be bypassed if MassDEP determines that the bypassed project will not be ready to proceed during the financing period. Project(s) bypassed may be replaced by the highest ranked priority project(s) on the PPL that are ready to proceed, or the funds may be used to provide emergency financing, or for project cost increases to other projects approved previously. If complete loan applications are not received by MassDEP by October 13, 2023, the project will be automatically considered for bypassing. The Trust and MassDEP will not add projects to the PPL/IUP beyond those that may qualify for emergency assistance, planning or PFAS design. MassDEP, considering any material program change that would require amendments to this IUP, will provide public notice and an appropriate comment period before issuing an amended IUP. C. Types of Projects to be Financed and Financing Rates Any drinking water project of an eligible borrower is eligible to receive financial assistance from the Trust. Such eligible projects include, but are not limited to: • Projects to address or prevent violation of public health standards, including projects to come into or maintain compliance. • Projects to replace aging infrastructure, if such projects are needed to maintain compliance or further public health goals and requirements, including projects to rehabilitate or develop sources to replace contaminated sources, install or upgrade treatment or storage facilities, and install or replace transmission and distribution pipes to prevent contamination or improve water pressure to safe levels. • Projects to consolidate and/or restructure a public water system. • Planning and/or design of any eligible project. Costs of construction that MassDEP determines as being necessary for the completion of the project are eligible for financing in the loan and to receive a subsidy under the loan, subject to the applicant cap. Costs for planning projects are eligible for financing during the 2023 financing period. Although costs for design are eligible, only PFAS design will be financed during this funding period due to the high demand for construction financing. MassDEP may limit the SRF loan for PFAS design to 10% of the total estimated cost of the remedy. 13

All projects on the IUP are eligible for 2% interest rate loans. Certain projects that are primarily for PFAS mitigation are eligible for 0% interest loans. A determination will be made as to the eligibility for 0% interest loans before the loan is permanently financed. V. FINANCIAL MANAGEMENT A. Source of State Match Based on the anticipated 2023 DWSRF grant of $25.5million from USEPA, the required 20% state match equals $5.1 million. In addition, it is estimated that for 2023, Massachusetts will receive $48.2 million for the Supplemental DWSRF Grant. The required 10% state match equals $4.8 million. These state match funds are provided to the Trust from the Commonwealth’s Capital Plan. B. Fee Income The Trust may charge an amount not to exceed $5.50 per $1,000 as a loan origination fee to offset the costs incurred during its bond issuances. Recipients of SRF loans are charged an annual administrative fee of 0.15% (15 basis points) against the outstanding loan principal to fund salaries and expenses of the Trust and MassDEP related to SRF project development and loan management. As of June 30, 2022, the Trust has a balance approximately $51.5 million in its Administrative Account. The Trust’s Administrative Account funds the 10% state management set-aside. Use of those funds is detailed in the attached Set-Aside plan (Appendix A). C. Program Administration The Commonwealth intends to use the full 4% of the federal capitalization and supplemental BIL grant funds for administrative support of activities related to the DWSRF. Use of those funds is detailed in the DWSRF Grant Application that the Trust files each year with the USEPA and in the attached Set-Aside plan (Appendix A). D. Anticipated Cash Draw Ratio Massachusetts will draw 100% of the state match funds before drawing federal funds. This will ensure that Massachusetts remains in compliance with the required cash draw ratios. E. Transfer of Funds Between CWSRF and DWSRF Section 302 of the 1996 Safe Drinking Water Act Amendments allows states the flexibility to move funds between the Clean and the Drinking Water SRF programs, to better address specific state priorities. The USEPA allows an equivalent of up to 33% of the Drinking Water grant to be transferred between the CWSRF and DWSRF. The CWSRF IUP capacity frequently allows Massachusetts to finance all the priority projects each year accounting for about two thirds of the proposed construction projects. Generally, over half of requested DWSRF construction projects go unfinanced. The level of federal grant 14

funding of the DWSRF is insufficient to meet the need for project financing. Transferring a limited amount of funds from the CWSRF to the DWSRF this year and in the future will help increase the overall capacity of the DWSRF and reduce the number of unfinanced projects without any impacts to the CWSRF IUP. Massachusetts will transfer non-federal funds from the CWSRF to the DWSRF program in the amount of $24.3 million (33% of the 2023 DWSRF capitalization grant amount of $25.5 million and the supplemental grant amount of $48.2 million). Furthermore, Massachusetts reserves authority of future transfers of Supplemental BIL funds. BIL allows states the flexibility to move funds between the CWSRF and the DWSRF programs. Due to great demand for PFAS remediation in drinking water projects, Massachusetts will transfer $7.2 million of CWSRF Emerging Contaminant supplemental funds to the DWSRF Emerging Contaminant program (100% of the grant amount). This transfer will not adversely impact the CWSRF project financing in the 2023 IUP. F. Estimated Sources and Uses The sources of funds available to the Massachusetts DWSRF include the federal capitalization grant, the federal supplemental BIL grants, state match and borrower loan repayments. The Trust may leverage these funds up to 3 times. Under this authority, the Trust will finance approximately $375 million of DWSRF eligible projects. G. Additional Subsidy and the Disadvantaged Communities Program As may be required in federal law applicable to the 2023 DWSRF capitalization grant, 26% of the grant amount shall be provided as additional subsidy, but no less than 12% and no more than 35%, to Disadvantaged Communities, provided eligible applicants exist. In the 2023 DWSRF IUP, Massachusetts intends to award a minimum of $6.6 million of the capitalization grant in additional subsidy to eligible projects. In addition, Massachusetts expects to receive $48.2 million for the Supplemental DWSRF Grant, $65.6 million for the Lead Service Line Replacement Grant and $17.5 million for the Emerging Contaminants Grant focusing on PFAS. Each of these grants requires that Massachusetts provide a portion of the funding as loan forgiveness. The Supplemental DWSRF Grant requires that $23.6 million, or 49% of the total grant, be provided as loan forgiveness to Disadvantaged Communities. The Lead Service Line Replacement Grant requires that $32.1 million, or 49% of the total grant, be provided as loan forgiveness to Disadvantaged Communities. The Emerging Contaminants Grant requires that the full amount, $17.5 million, net of set asides taken, of the grant be provided as loan forgiveness and that at least 25% of the grant be provided to Disadvantaged Communities. 15

VI. Program Management A. Assurances and Special Conditions MassDEP and the Trust have provided the required assurances and certifications as part of the Operating Agreement (OA) between Massachusetts and the USEPA. The OA describes the mutual obligations among USEPA, MassDEP and the Trust. The purpose of the OA is to provide a framework of procedures to be followed in the management and administration of the DWSRF. Title XIV of the Federal Safe Drinking Water Act amendments of 1996 and subsequent regulations and guidance require that the Commonwealth certify compliance with or acceptance of a number of conditions. These include compliance with the applicable provisions of s. 1452, State Revolving Loan Fund, as follows: • Environmental Reviews: DWSRF borrowers are required to meet the standards of the National Environmental Policy Act (NEPA) or a State equivalent. Some projects, owing to their relatively minor environmental impacts, if any, do not trip the threshold of the Massachusetts Environmental Policy Act (MEPA) and are therefore not subject to the rigorous environmental review process set forth in MEPA. The Commonwealth reasons that these projects are categorically exempt from the NEPA review process as well. A planning level review of each of the eligible projects concludes that since these projects almost uniformly are the upgrade or rehabilitation of existing infrastructure, most will not usually require MEPA review. A final determination of project relevancy under MEPA cannot be made until the preliminary design phase of work is complete on each project. • Binding Commitments: The DWSRF will enter binding commitments for 120 percent of each quarterly grant payment within one year of receipt of the payment. • Expeditious and Timely Expenditures: The DWSRF will expend all funds in the DWSRF in a timely manner. • Set-Aside Programs. The Commonwealth will conduct set-aside activities consistent with the plan provided as Appendix A to this document. B. Federal Requirements A number of federal requirements apply to DWSRF projects in an amount equal to the capitalization grant including: • Single Audit Act (2 CFR 200 Subpart F) • Federal Funding Accountability and Transparency Act (FFATA) reporting • Disadvantaged Business Enterprise compliance (all projects)Federal environmental crosscutters (all projects) • Federal Flood Risk Management Standard (FFRMS) to comply with Executive Order (EO) 14030 that reinstated EO 13690 • Project signage to enhance the public awareness • Ineligible Costs: any costs that are prohibited including but not limited to: 2 CFR 200.216, Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment. 16

MassDEP and the Trust will identify the group of projects that must comply with these requirements in the USEPA grant applications. Frequently, the group of projects changes as projects move towards construction, usually due to attrition. If changes are made to the group of projects, appropriate amendments to the grant application will be made. In addition, the SDWA requires that states meet specific mandates or risk losing a portion of their federal grant. Failure to implement a Capacity Development Program and/or Operator Certification Program that are at least as stringent as the federal guidelines will result in a state losing up to 20% of their Capitalization Grant each year. MassDEP will comply with the capacity development authority, capacity development strategy, and operator certification program provisions. C. Davis‐Bacon Wage Rates The USEPA’s appropriation bill requires the application of Davis‐Bacon prevailing wage rates to all drinking water projects funded in whole or in part by the DWSRF. MassDEP ensures that the required Davis-Bacon language is included in contracts and conducts field verifications of project compliance with the wage rate requirements. D. American Iron and Steel and the Build America, Buy America Act On November 15, 2021, the Bipartisan Infrastructure Law made the American Iron and Steel (AIS) procurement requirements permanent for all DWSRF construction projects going forward. Furthermore, BIL extends this procurement requirement to all DWSRF construction projects going forward with the inclusion of the Build America, Buy America Act (BABA). Starting on May 14, 2022, all steel, iron, manufactured products, non-ferrous metals, plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables), glass (including optic glass), lumber, and drywall used in infrastructure projects for federal financial assistance programs must be produced in the United States, unless (i) the SRF borrower has requested and obtained a waiver from the EPA pertaining to the Project or the Project is otherwise covered by a general applicability waiver; or (ii) the Department has otherwise advised the borrower in writing that the Build America, Buy America requirement is not applicable to the project. MassDEP ensures that the required procurement language is included in contracts and conducts field verifications of project compliance. Appropriate AIS and BABA language has also been included in the Project Regulatory Agreement and the Financing Agreement. E. Audits and Reporting MassDEP and the Trust will comply with all the auditing and reporting requirements of the USEPA. A single audit is conducted annually and reporting to the USEPA is done through the Office of Water State Revolving Fund (OWSRF) data system, Biennial Report and FFATA reporting. 17

VII. Public Review and Comment Notice of the availability of the Draft Calendar Year 2023 IUP/PPL will be made on December 16, 2022. Pursuant to the provisions for adequate alternative public access to agency hearings, set forth in Section 20 of Chapter 20 of the Acts of 2021, an Act Extending Certain COVID-19 Measures Adopted During the State of Emergency, a public hearing on the Draft IUP will take place virtually on January 19, 2023. Records of the testimony received will be maintained in MassDEP's files. MassDEP will take into consideration the testimony received to finalize this IUP. 18

Calendar Year 2023 DWSRF Project Priority List DRINKING WATER STATE REVOLVING FUND TABLE 3 Rating Applicant SRF ID Project Project Cost NEW PROJECTS PWSID Pop. SPRINGFIELD WATER AND SEWER COMMISSION (PF)(RE)(BG)(W) 12550 Replacement of Water Treatment Plant – Phase 2B $280,900,000 553 1281000 170211 SPRINGFIELD WATER AND SEWER COMMISSION (PF)(RE)(BG)(W) 12465 Replacement of Water Treatment Plant – Phase 2A $5,460,000 553 1281000 170211 SOMERVILLE (H)(LR)(PF) 10382 Somerville LSL Replacement Program Phase 3 $2,068,800 546 3274000 81045 SCITUATE (BG) 7348 Surface Water Treatment Plant $41,382,000 541 4264000 19760 SHARON (RE)(SG) 12443 Wells 2 & 4 Water Treatment Plant $20,057,875 537 4266000 16262 ANDOVER (H)(LR) 12495 Lead Service Line Replacement $4,050,000 536 3009000 36569 MASSACHUSETTS WATER RESOURCES AUTHORITY 7331 Cp-2 NEH Improvements $13,640,000 534 6000000 2550000 WEBSTER (PF)(SG) 10380 PFAS Water Treatment Plants $32,800,000 532 2316000 17776 FALL RIVER (LR)(PF) 12468 Lead Service Line Replacement $4,150,000 532 4095000 94000 LITTLETON WATER DEPARTMENT (H)(SG) 12397 Water Supply Main Extension Littleton/Boxborough $19,078,000 * 530 2158000 9561 FOXBOROUGH (SG) 12535 Chestnut Street WTP Improvements $14,000,000 530 4099000 18618 SUDBURY (H)(SG) 11383 East Street WTP PFAS Treatment $5,810,000 529 3288000 18665 CONCORD (BG) 12423 Nagog Pond Water Treatment Plant $35,488,084 529 3067000 16610 YARMOUTH (EC)(PF) 12531 Yarmouth Well 4&5 Package PFAS Treatment System $4,723,700 528 4351000 40857 ACTON WATER SUPPLY DISTRICT (EC)(H) 12506 PFAS Treatment at South Acton WTP $8,700,000 527 2002000 19915 ACTON WATER SUPPLY DISTRICT (EC)(H) 12517 PFAS Treatment at Central Acton WTP $5,420,000 527 2002000 19915 WESTBOROUGH (EC) 7272 Oak Street WTP PFAS Improvements $6,311,731 526 2328000 21567 MIDDLEBOROUGH (EC)(H)(PF) 9373 East Grove Street Water Treatment Plant $18,500,000 526 4182000 16900 WOBURN (PF) $18,990,000 526 3347000 40876 MELROSE (H)(LR) $1,035,000 525 3178000 29817 EAST BROOKFIELD (PF) $8,080,000 * 525 2084000 1526 CHATHAM $19,800,000 524 4055000 30000 RAYNHAM (PF) $23,500,000 523 4245000 10378 AQUARION WATER COMPANY - MILLBURY 12538 Horn Pond Water Treatment Plant PFAS Removal 8359 Melrose Lead Service Replacement 12438 West Street Fe and Mn WTP 12457 Training Field Road PFAS Water Treatment Plant 11390 PFAS Water Treatment Plants 12509 Oak Pond Well GAC Treatment Facility $3,275,000 * 523 2186000 9449 19

STOUGHTON (H)(PF) 7298 Muddy Pond Pump Station PFAS Treatment $5,279,500 522 4285000 29287 WEST BRIDGEWATER (PF) 12432 West Bridgewater Long Term PFAS Compliance $3,163,200 * 522 4322000 7669 FRANKLIN (H) 12544 Franklin Well 7/7A PFAS Treatment $5,600,000 522 2101000 33261 BELLINGHAM (PF) 12475 PFAS Treatment at Hartford Avenue WTP $20,800,000 521 2025000 15575 HOPEDALE (PF) 12478 Greene Street WTP PFAS Treatment $4,500,000 * 520 2138000 5966 LYNNFIELD CENTER WATER DISTRICT 7322 Glen Drive WTP & Station 2 Pipeline $18,960,000 * 520 3164000 8263 EVERETT (H)(LR)(PF) 12399 Everett Lead Service Line Replacements Phase 4 $1,881,000 520 3093000 49075 AQUARION WATER COMPANY - MILLBURY 11382 Jacques Wells Water Treatment Facility $6,731,250 * 517 2186000 9449 WEST BRIDGEWATER (PF) 12428 Cyr Street and Norman Avenue Fe/Mn Treatment $11,740,001 * 516 4322000 7669 AQUARION WATER COMPANY - OXFORD 12519 North Main Street Water Treatment Plant $2,904,453 * 513 2226000 6845 CONCORD (LR) 12477 Concord, MA Lead Service Line Replacements Project $2,000,000 511 3067000 16610 AQUARION WATER COMPANY – DOVER (PF) 12458 Chickering Drive Station $980,000 * 509 3078006 1809 HARVARD 7285 Harvard-Devens Water System Interconnection $4,850,000 * 507 2125000 1650 AQUARION WATER COMPANY – DOVER (PF) 12511 Springdale Farms Treatment System Improvements $1,248,750 * 507 3078008 126 BROCKTON (H)(PF) 12448 Aquaria Desalination Plant $57,000,000 453 4044000 105643 FITCHBURG (PF) 7341 Meetinghouse Gatehouse Rehabilitation $3,000,000 447 2097000 41946 NEW BEDFORD (PF) 12427 Phase 3 Quittacas WTP Upgrades $3,125,000 443 4201000 101079 TAUNTON (H)(PF) 12528 WTP Electrical System Improvements $2,196,000 436 4293000 59290 LOWELL (H)(PF) 11386 Finished Water Redundancy & Electrical Upgrades $14,380,000 435 3160000 115554 FALL RIVER (PF) 12518 Water Treatment Plant Upgrades $3,934,900 432 4095000 94000 LOWELL (H)(PF) 7316 Lowell High Pressure Zone Interconnection $5,959,000 432 3160000 115554 IPSWICH 11388 Dow Brook Dam and Drain Improvements $2,260,213 432 3144000 13830 HAVERHILL (PF) 8363 Phase 3 - Transmission Main Improvements $7,560,000 430 3128000 61208 HAVERHILL (PF) 12480 Haverhill, MA Radial Collector Well $21,325,000 430 3128000 61208 PEABODY (PF) 8350 Suntaug Gatehouse and Coolidge RWPS Rehabilitation $3,799,500 428 3229000 52377 ANDOVER (H) 7283 Phase 2 Water Transmission Main Improvements $12,006,000 426 3009000 36569 BARNSTABLE (H)(PF) 7299 Mary Dunn 4 Pump Station and Transmission Main $3,914,000 426 4020004 35000 MATTAPOISETT RIVER VALLEY WATER DISTRICT 7338 MRVWD Water Treatment Plant Upgrades $6,885,000 426 4173001 29600 ___________________________________________________________________________________________________________________ 20

LAWRENCE (H)(PF) 12402 Tower Hill Transmission Main Redundancy $1,953,600 425 3149000 80162 BELCHERTOWN (H)(PF) 12512 Pine Valley Plantation Water System Replacement $5,173,910 * 425 1024002 600 NEWBURYPORT (H) 12562 Indian Hill Pump Station and Raw Water Main $18,820,000 425 3206000 20335 WINCHENDON (PF) 7289 Water Transmission Main Replacement $9,560,000 * 423 2343000 5706 WEST SPRINGFIELD (PF) 12417 West Springfield Control Valve Improvements $2,113,000 423 1325000 28833 GEORGETOWN 12472 Water Treatment System Improvements $20,000,000 * 419 3105000 8766 WESTFIELD (PF) 12491 New Provin Mountain Water Storage Tank $4,953,300 418 1329000 42000 SPENCER (PF) 12542 Meadow Road Water Treatment Facility Filter Repair $1,975,200 * 415 2280000 7037 HOLDEN 12418 Holden Water System Improvements $14,000,000 323 2134000 17275 LANESBOROUGH FIRE AND WATER DISTRICT (PF) 12553 Water Infrastructure Improvements Project $9,000,000 * 320 1148000 2324 WARE (PF) 7340 Barnes Street Well Connection $1,500,000 * 319 1309000 7376 FRANKLIN (H) 12532 Franklin Fisher St. WTP Improvements $13,600,000 318 2101000 33261 RUSSELL (PF) 12548 Strathmore Park Well Water Treatment Facility $3,250,000 * 315 1256000 1228 WEST BOYLSTON WATER DISTRICT (PF) 12559 Lee St Water Main Replacement $950,000 * 315 2321000 6656 LINCOLN (H) 8351 Water Main Replacement $4,410,000 * 314 3157000 6865 AVON (PF) 10379 Glendower Neighborhood AC Pipe Removal Project $1,478,180 * 314 4018000 4777 AGAWAM (PF) 7280 Northeast Area Water Main Replacement $6,178,000 312 1005000 28692 LUNENBURG (PF) 11387 Lunenburg Water District $7,220,000 * 312 2162000 7116 AGAWAM (PF) 7279 Belvidere & Brookline Water Main Replacement $2,060,000 311 1005000 28692 DALTON (PF) 12486 Greenridge Park Water Main Replacement Project $4,295,000 * 311 1070000 6413 ACTON WATER SUPPLY DISTRICT (H) 12523 Clapp/Whitcomb Backwash Upgrades $650,000 241 2002000 19915 LOWELL (H)(PF) 7315 Lowell Regional Water Utility Lagoon Construction $5,260,000 237 3160000 115554 MASSACHUSETTS WATER RESOURCES AUTHORITY 7330 CP-1 Section 53 Connection Construction $16,044,600 237 6000000 2550000 MASSACHUSETTS WATER RESOURCES AUTHORITY 7332 Steel Tank Improvements Construction $11,518,000 237 6000000 2550000 LAWRENCE (H)(PF) 12404 Water Treatment Plant & Source Improvements $5,575,770 230 3149000 80162 EASTON (H) 12416 Bay Road Water Storage Tank Rehabilitation $1,520,000 230 4088000 23112 ANDOVER (H) 12534 Water Treatment Plant Upgrades $18,282,000 229 3009000 36569 WEST SPRINGFIELD (PF) 12412 West Springfield Route 5 Water Main $13,123,000 228 1325000 28833 WEBSTER (PF) 12569 Water Meter Systems Upgrades $4,200,000 228 2316000 17776 21

SOMERVILLE (H)(PF) 12552 Somerville Central Broadway Water Main Upgrades $7,080,000 226 3274000 81045 BARNSTABLE (H)(PF) 7313 Mary Dunn 1: Water Storage Tank Rehabilitation $975,000 226 4020004 35000 ANDOVER (H) 8357 North Reading Transmission Main Improvements $6,284,520 226 3009000 36569 NEWBURYPORT (H) 12421 AMI and Water Meter Replacement Program $5,258,155 226 3206000 20335 MARION 11381 Point Road and Delano Road Water Main Replacement $3,690,000 * 223 4169000 6328 HOLBROOK (PF) 7304 Sycamore Street Water Storage Tank $3,173,500 222 4133000 11407 FRANKLIN (H) 12405 Hillside Tanks No. 1 and No. 2 Replacement $7,784,000 222 2101000 33261 RANDOLPH (PF) 12474 Joint Water Board Storage Tank Replacement $15,961,026 222 4244001 41935 BILLERICA (H)(PF) 12488 Distribution System Upgrades $28,519,500 222 3031000 42119 HOLYOKE (PF) 12492 Phase 3A Water Main Replacement Project $8,670,000 222 1137000 40124 ANDOVER (H) 8355 Chandler Road Water Main Improvements $2,846,664 221 3009000 36569 ACTON WATER SUPPLY DISTRICT (H) 12521 Bedrock Wells at Central Acton WTP $2,400,000 221 2002000 19915 BILLERICA (H)(PF) 7286 Crosby Hill Storage Tank Replacement $6,375,000 220 3031000 42119 BILLERICA (H)(PF) 8361 Water Treatment Plant Upgrades $5,158,500 220 3031000 42119 LAWRENCE (H)(PF) 12420 Water Main Improvements $6,565,040 220 3149000 80162 DIGHTON WATER DISTRICT (PF) 12539 Brook Street Well Acquisition $6,000,000 * 220 4076000 4925 AVON (PF) 12409 Emergency Interconnection $1,840,500 * 219 4018000 4777 YARMOUTH (PF) 12471 Route 28 Water Main Replacement $15,591,000 219 4351000 40857 SWANSEA WATER DISTRICT (PF) 12407 Water Meter Replacement $2,410,000 219 4292000 17358 YARMOUTH (PF) 12546 Route 6A Water Main Replacement $3,799,500 218 4351000 40857 EASTON (H) 12482 Easton 2023 Water Main Improvements $2,948,000 216 4088000 23112 SAUGUS (PF) 12489 Oceanview Ave Water Booster Station Improvements $480,000 216 3262000 24529 FALMOUTH (PF) 12516 Falmouth Water Main Improvements Project $2,850,000 216 4096000 77500 HARWICH (PF) 7314 Harwich Rt. 28 Waterline Replacement Project $14,306,195 215 4126000 40062 AVON (PF) 10377 East Main Street Water Mains Improvement Project $2,542,400 * 214 4018000 4777 ATHOL (PF) 12459 Water Main & Lead Service Replacement $1,596,000 214 1015000 10290 ACTON WATER SUPPLY DISTRICT (H) 10374 LCRR Lead Removal Program $2,822,050 213 2002000 19915 BILLERICA (H)(PF) 7287 Phase 1 Water Main Replacement $9,325,000 212 3031000 42119 MILTON 7344 Water Main Replacement $2,380,000 212 3189000 28630 MIDDLEBOROUGH (H)(PF) 12434 Water Main & Lead Service Line Replacement $5,955,300 212 4182000 16900 22

* - Small System (BG) - Base Capitalization Grant (D) - Dropped by Applicant (EC) - BIL DWSRF Emerging Contaminants Grant (H) - Housing Choice Communities (L) - Water Infrastructure Funding Transfer Act (WIFTA) Projects (LR) - BIL DWSRF Lead Service Line Replacement Grant (PF) - Disadvantaged Community (RE) - Potential Renewable Energy Projects (SG) - BIL DWSRF Supplemental Grant (W) - Water Infrastructure Finance and Innovation Act (WIFIA) # - Projects contains Energy Efficiency, Renewable Energy and/or meets EPA's definition of a Green Project (https://www.epa.gov/greeningepa/energy-and-emissions-epa) WEST NEWBURY 7312 Church St. & Prospect St. Water Main Replacement $2,395,000 * 211 3324000 3027 ANDOVER (H) 12452 SCADA & Cybersecurity Improvements $2,016,960 128 3009000 36569 EASTHAM (H)(PF) 12557 Eastham Water System - Phase 2F $10,050,000 * 105 4086095 4904 $1,243,915,327 TOTAL OF NEW PROJECTS (Count: 114) (Average Rating: 371.38) Applicant SRF ID Project Project Cost TOTAL OF MassDEP PRIORITY PROJECTS (Count: 2) MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS PWSID Pop. 7152 Hannigan and Myers Avenue WTP PFAS Treatment $26,672,000 4001000 33404 $55,212,683 4040002 25 $19,904,296 4040002 25 $19,382,850 6000000 2550000 $32,619,000 6000000 2550000 $14,700,000 6000000 2550000 $6,300,000 4201000 95072 $23,637,500 4201000 95072 ABINGTON-ROCKLAND JOINT WATER WORKS (PF) BRAINTREE #(RE)(PF) HOLBROOK #(RE)(PF) MASSACHUSETTS WATER RESOURCES AUTHORITY MASSACHUSETTS WATER RESOURCES AUTHORITY MASSACHUSETTS WATER RESOURCES AUTHORITY NEW BEDFORD NEW BEDFORD (PF) RANDOLPH #(RE)(PF) 7258 Tri-Town Regional Water Treatment Plant 7259 Tri-Town Regional Water Treatment Plant 4564 Weston Aqueduct Supply Main Rehabilitation 6691 Northern Intermediate High Section 89 Replacement 7218 Section 23, 24, 47 Water Mains Rehab 7173 Highway Bridge Crossing Replacement Project 7172 Quittacas Water Treatment Plant Upgrades 7260 Tri-Town Regional Water Treatment Plant $39,780,862 4040002 25 $238,209,191 TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 9) Applicant SRF IDProject Project Cost MassDEP PRIORITY PROJECTS 2978 $5,000,000 EMERGENCY SRF SET-A- SIDE PLANNING AND PFAS DESIGN SRF SET-A-SIDE 13574 $10,000,000 $15,000,000 TOTAL OF PROJECT PRIORITY LIST $1,497,124,518 23

Calendar Year 2023 DWSRF ASSET MANAGEMENT PLANNING PROJECTS DRINKING WATER STATE REVOLVING FUND TABLE 4 Applicant SRF ID Project Project Cost ASSET MANAGEMENT PLANNING PROJECTS Rating AUBURN WATER DISTRICT 12463 Auburn Water District Water Asset Management Plan $155,000 89 CHESTER 12426 Chester Water Asset Management Plan $113,500 85 RUSSELL 12497 Russell Water and Wastewater Asset Management Plan $151,000 82 DOUGLAS 12556 Water Asset Management Plan $140,000 81 WEST SPRINGFIELD 12424 West Springfield Water SCADA Improvements $481,000 81 FITCHBURG 11393 Fitchburg Water System Asset Management $102,000 79 SUDBURY 12520 Sudbury Water System Asset Management Plan $250,000 73 PEABODY 8354 Peabody Water Asset Management $250,000 73 MILFORD 12545 Milford Asset Management Plan $73,200 68 SOUTHAMPTON 12425 Expand and Improve Asset Management System $80,000 61 MARION 12435 Marion DPW Asset Management Planning $55,000 58 MIDDLEBOROUGH 12451 Water Utility Asset Management Planning $209,000 51 $2,059,700 TOTAL OF ASSET MANAGEMENT PLANNING PROJECTS (Count: 12) TOTAL OF PROJECT PRIORITY LIST $2,059,700 24

APPENDIX A – Base, Supplemental and Lead Service Line Grants DRINKING WATER STATE REVOLVING FUND (DWSRF) Fiscal Year 2023 Set-asides for Base, Supplemental, and Lead Service Line Grants Funds Authorized Under the Federal Safe Drinking Water Act 25

Information on Set-asides Base DWSRF Grant The Commonwealth of Massachusetts plans to set aside $5,040,600 (31% of $16,260,000 - 2022 Grant Amount) of the Capitalization Grant for various non-construction related activities that are authorized in the Safe Drinking Water Act Amendments of 1996. These activities are often vital to water systems so that they can develop and maintain the financial, technical, and managerial capacity to run their system effectively. A portion of the set-aside money will be used to develop and implement programs within state government necessary to implement the DWSRF and the SDWA Amendments of 1996. The SDWA provides guidance for a variety of uses of the set-aside money. The set-aside money will be placed in separate accounts outside the Project Fund. The SDWA allows for transfers between the set-aside accounts and are the current best estimates of the funds required to complete the programs and projects described in the IUP. Transfers of funds between accounts and projects in accordance with EPA requirements will be made as necessary to accomplish the programs and projects described and efficiently and effectively use the available funds. The SDWA limits the percentage of the capitalization grant that can be used in each of these set-asides and whether the set-aside funds can be “banked” or reserved for future use. I. 4% DWSRF ADMINISTRATION – 3 FTEs MassDEP anticipates applying for the full 4% ($650,400) from the 2022 DWSRF Capitalization Grant for DWSRF Program Administration. These funds will be combined with any remaining prior year funds in order to provide comprehensive DWSRF program assistance. Duties will include (but not be limited to): A. MANAGE DWSRF COORDINATION of projects and liaison with the Massachusetts Water Pollution Abatement Trust. B. OVERSEE ADMINISTRATION AND MANAGEMENT of the DWSRF Priority List/Intended Use Plan process and fiscal administrative aspects of the set-asides, such as grant application and fiscal reporting, and coordinate with the Drinking Water Program in regard to the set-asides. C. SUPPORT, CONDUCT, AND ANALYZE SRF PROJECT APPLICATIONS AND PROJECT REVIEWS 4% Set-Aside Deliverables Coordination of all DWP Source Protection and Technical Services Activities Set-Aside IUP and Work Plan Sections that Reflect Drinking Water Program Needs and Priorities Oversight of DWSRF Loans and Grants 4% Set-Aside Measures of Success Drinking Water Source Protection and Technical Services Section activities that support Drinking Water Program goals and priorities and are coordinated with the DWSRF Set-Aside activities achieve stated deliverables and measures of success that are consonant with Drinking Water Program objectives. Award of loans and grants in a timely manner. II. 2% FOR SMALL SYSTEMS SET-ASIDE- (1.75 FTEs) MassDEP anticipates applying for the full 2% ($325,200) from the 2022 DWSRF Capitalization Grant for small systems technical assistance. Duties may include (but not limited to), staffing to support safe drinking

water act compliance. In providing technical assistance in support of Small System Capacity Development. FTEs will continue to be provided in the region to follow up with individual small systems on specific compliance issues and other system operation issues. 2% Set-Aside Deliverables: • On-site training and support to Public Water Suppliers. • Perform TNC compliance assistance sanitary surveys and provide Groundwater Under the Influence evaluations. • Technical assistance given to targeted systems that have specific SDWA treatment compliance issues • Technical assistance to public water systems on GWR. • Reviews of technical reports related to water supply technology and analysis. • Technical reviews of state initiatives such as disinfection byproduct treatment or groundwater disinfection. • Supervision of technical staff and training programs for suppliers. • Technical reviews of major water quality projects and public health data. • Information for the public and for water suppliers on major water quality problems. • Seminars on SDWA Topics. • Establishment and operation of mentoring groups. • Training sessions (with credits) providing Certified Operator Training. 2% Set-Aside Measures of Success: • Compliance issues are successfully addressed in the targeted systems. • Completion of planned capacity sanitary survey visits. • Effective technical assistance given as scheduled. Each group seminar will be followed by an evaluation form to be filled out by participants to assess the efficacy of the seminar. Evaluation of the results will be considered as part of the contract assistance, and provided to the MassDEP staff responsible for implementing training initiatives and reporting on Capacity Development, for their assessment and future planning. Evaluation of all training and assistance will consider the success of recruiting recalcitrant and high-priority systems. • Reports reviewed as scheduled. III. 10% FOR STATE PROGRAM MANAGEMENT – 8.5 FTEs MassDEP anticipates applying for the full 10% ($1,626,000) from the 2022 DWSRF Capitalization Grant for Program Management. The State Program Management Set-aside is used to fund: A) Administrative assistance to the PWSS program; B) Technical assistance for source water protection activities; C) Assistance for capacity development initiatives; and, D) support for state operator certification program. A. PWSS SUPPORT – 4.5 FTEs The money will provide funding for approximately 4.5 FTEs and their associated operating costs. Duties of the FTEs include capacity development, consumer confidence report assistance, adoption and implementation of new regulations, implementation of new and existing federal rules, source water assessments and protection, planning, outreach, data management, engineering and construction supervision, compliance supervision and other drinking water program activities. B. SOURCE PROTECTION SUPPORT – 1 FTEs The Source Protection function has been integrated into the general drinking water program activities.

MassDEP is still funding 3 FTEs worth of this work from the 10% set-aside, but the source protection tasks are now distributed among more individuals and reaching more PWS. It also includes implementing the chemical monitoring waiver program which provides incentive to do source protection as well as promoting preparedness and sustainability. C. CAPACITY DEVELOPMENT SUPPORT – 2.0 FTEs MassDEP has designated specific regional staff as capacity development specialists. The Drinking Water Program has discerned that it is more productive to train all staff that do Sanitary Surveys in the elements of Capacity Development. The Drinking Water Program will focus on promoting the following four elements during the coming year; 1. Asset Management 2. Cyber Security 3. Water Quality 4. Emerging Contaminants D. OPERATOR CERTIFICATION SUPPORT – 1 FTEs The MassDEP has a very active operator certification program. The program activities have been integrated into daily activities of staff. Program activities range from chairing the Board of Certification of Drinking Water Operators to providing general and specialized training of and guidance for drinking water operators at all levels. IV. 15% -SOURCE WATER PROTECTION AND CAPACITY DEVELOPMENT – 12.5 FTEs MassDEP anticipates applying for the full 15% ($2,439,000) from the 2022 DWSRF Capitalization Grant for Source Water Protection and Capacity Development. The authorized activities under this set-aside can include: land acquisition and conservation easement program, source water protection, wellhead protection and technical and financial capacity implementation. (12.5) FTE’s and contracted services. A. WELLHEAD PROTECTION AND CAPACTIY IMPLEMENTATION-12.5 FTEs 1. Assist with source protection program activities related to groundwater sources, as well as operation of the UIC program (a.k.a. “Underground Source Water Protection Program”). Ensure consistency of this work among regions; coordinate with GIS and Internet programs; coordinate with other MassDEP programs; investigate available data for usefulness to groundwater protection; and develop relevant policies and procedures. 2. Develop and maintain spatial data related to public water sources and potential contamination threats. Work with regional staff and resources to locate regulated facilities including locating information in files and making site visits to collect location information. Assist with GIS management. 3. Assist in Zone II delineation (and re-delineation as needed) and other wellhead protection-related work. 4. Provide technical assistance on source protection to public water suppliers and local officials, and assist with the source water assessment program and with protection of groundwater sources from contamination by septic systems. This includes providing system-specific protection recommendations. 5. In accordance with the Capacity Strategy, provide technical assistance in implementing capacity development, including the ability to provide adequate quantities of source water. Provide Capacity Outreach. 6. Provide assistance, primarily with protection of groundwater sources.

15% Set-Aside Deliverables • UIC program operating under State Primacy • Spatial data, maps. • Zone II Reviews • On-Site training and support to water suppliers • UIC tracking and reports • Outreach materials, technical assistance meetings, training for regions, and bylaw reviews. • Implementation of water conservation capacity improvement grant program. • Implementation of Capacity Development program. • Implementation of the Source Water Protection program. • Plan for implementation of the Lead and Copper Rule Revisions (LCRR) 15% Set-Aside Measures of Success: • Improved source protection for ground water sources at state and local levels • GIS databases are properly reviewed and maintained • Reviews are conducted in a timely manner • Contract oversight is effective • Technical Assistance is appropriate and timely and leads to improved source and aquifer protection in the systems visited • Methods to assure capacity to deliver adequate quantities of drinking water are developed • Program goals meet MassDEP objectives • Improved protection at the local level 2022 IUP Drinking Water Set-Asides Base Grant Budget Grant Amount $16,260,000 Set-Asides 4% Admin 2% Small System 10% State Program 15%Local Asst Total Set Asides Salary $641,022 $321,167 $1,619,867 $2,435,749 $5,017,805 Travel $4,000 $4,033 $4,000 $3,251 $15,284 Supplies $2,500 $0 $2,133 $0 $4,633 Equipment $2,878 $0 $0 $0 $2,878 Total $650,400 $325,200 $1,626,000 $2,439,000 $5,040,600 FTE 3 1.75 8.5 12.5 25.75

Information on Supplemental DWSRF Grant Set-asides The Commonwealth of Massachusetts plans to set aside $5,830,500 of the Supplemental DWSRF Grant for various non-construction related activities that are authorized in the Safe Drinking Water Act Amendments of 1996. I. 4% DWSRF ADMINISTRATION – 9 FTEs MassDEP anticipates applying for $1,670,000 from the 2022 DWSRF Supplement Grant for DWSRF Program Administration. These funds will be combined with any remaining prior year funds in order to provide comprehensive DWSRF program assistance. Duties may include (but not be limited to): A. MANAGE DWSRF CORRDINATION of projects and liaison with the Massachusetts Water Pollution Abatement Trust B. OVERSEE ADMINISTRATION AND MANAGEMENT of the DWSRF Priority List/Intended Use Plan process and fiscal administrative aspects of the set-asides, such as grant application and fiscal reporting, and coordinate with the Drinking Water Program in regard to the set-asides. C. SUPPORT, CONDUCT, AND ANALYZE DWSRF PROJECT APPLICATIONS AND PROJECT REVIEWS 4% Set-Aside Deliverables • Coordination of all DWP Source Protection and Technical Services Activities • Set-Aside IUP and Work Plan Sections that Reflect Drinking Water Program Needs and Priorities Oversight of DWSRF Loans and Grants 4% Set-Aside Measures of Success • Drinking Water Source Protection and Technical Services Section activities that support Drinking Water Program goals and priorities and are coordinated with the DWSRF • Set-Aside activities achieve stated deliverables and measures of success that are consistent with Drinking Water Program objectives. • Award of loans and grants in a timely manner II. 2% FOR SMALL SYSTEMS SET-ASIDE- (1.25 FTEs) MassDEP anticipates applying for $583,000 from the 2022 DWSRF Supplemental Grant for small systems technical assistance. These funds will be combined with any remaining prior year funds in order to provide comprehensive technical assistance to small public water systems. Duties may include (but not limited to): A. STAFFING TO SUPPORT SAFE DRINKING WATER ACT COMPLIANCE (1.25 FTEs) In providing technical assistance in support of Small System Capacity Development. FTEs will continue to be provided in the region to follow up with individual small systems on specific compliance issues and other system operation issues. B. CONTRACTED SERVICES –TECHNICAL ASSISTANCE AND TRAINING

MassDEP will fund a contractor(s) to provide a variety of direct technical, financial and managerial assistance to small drinking water system. Priority given to disadvantaged communities. Activities will focus on the Safe Drinking Water Act requirements and Massachusetts Drinking Water Regulations and creating an environment of transparency with the DWP Data. The proposed activities may include (but not be limited to): Asset management planning, engineering assistance and evaluations, loan application assistance, emergency response, cyber security, leak detection and well identification. Trainings may include Very Small System Operator Training, Cyber Security, Annual Statistical Reporting, Emerging Contaminants, Cross Connection Control, Opening and Closing a Seasonal System, Regulatory Updates, pump and motor maintenance, rate setting, disinfection, sampling, and exam review. Trainings must meet the requirements established by Division of Licensure (DOL) and can include classroom, self-guided and on-line. All activities are subject to change and are dependent upon the availability of funding. 2% Set-Aside Deliverables: • On-site training and support to Public Water Suppliers. • Perform TNC compliance assistance sanitary surveys and provide Groundwater Under the Influence evaluations. • Technical assistance given to targeted systems that have specific SDWA treatment compliance issues • Technical assistance to public water systems on GWR. • Reviews of technical reports related to water supply technology and analysis. • Technical reviews of state initiatives such as disinfection byproduct treatment or groundwater disinfection. • Supervision of technical staff and training programs for suppliers. • Technical reviews of major water quality projects and public health data. • Information for the public and for water suppliers on major water quality problems. • Seminars on SDWA Topics. • Establishment and operation of mentoring groups. • Training sessions (with credits) providing Certified Operator Training. 2% Set-Aside Measures of Success: • Compliance issues are successfully addressed in the targeted systems. • Completion of planned capacity sanitary survey visits. • Effective technical assistance given as scheduled. • Each group seminar will be followed by an evaluation form to be filled out by participants to assess the efficacy of the seminar. Evaluation of the results will be considered as part of the contract assistance, and provided to the MassDEP staff responsible for implementing training initiatives and reporting on Capacity Development, for their assessment and future planning. Evaluation of all training and assistance will consider the success of recruiting recalcitrant and high-priority systems. • Reports reviewed as scheduled.

8 III. 10% FOR STATE PROGRAM MANAGEMENT MassDEP anticipates applying for $2,150,000 from the 2022 DWSRF Supplemental Grant for Program Management. The State Program Management Set-aside is used to fund the following: A. CONTRACT SERVICES - PWSS SUPPORT The money will provide funding for a third-party contractor to provide approximately 4 FTEs and their associated operating costs. Duties of the FTEs include fiscal management, grant support, implementation support for new regulations (e.g., lead, PFAS, etc.), data management, and other drinking water program activities B. CONTRACT SERVICES – PUBLIC WATER SYSTEM TECHNICAL ASSISTANCE MassDEP will fund a third-party contractor to provide approximately 4 FTEs and their associated operating costs. Duties of the FTEs involve compliance technical assistance support to the DWP and PWS. Activities will focus on the Safe Drinking Water Act requirements and Massachusetts Drinking Water Regulations and support for Small and Disadvantaged Communities, Lead Service Line Replacement Inventory, Unregulated Contaminants and the SRF Process. The SDWA Programs include: Revised Total Coliform Rule, Disinfectants and Disinfection By-products Rule, Ground Water Rule, Surface Water Treatment Rules, Distribution System Protection, Database Management, Filter Backwash Rule, Emergency Response, Cyber security, Asbestos, Acrylamide, Epichlorohydrin, Consecutive Systems, , Fluoride, Legionella, Source Water Approval, Ice Making Sources, Metering, New System Registration, Permitting and Guidelines, Point of Use/Point of Entry Treatment, Rule Development, Vinyl-lined Asbestos Cement and Pipes, Drinking Water Vending, and Wellhead Protection. C. CONTRACT SERVICES - PUBLIC WATER SYSTEM INFORMATION MANAGEMENT MassDEP will fund Information Technology (IT) staff to assist with data management support for programs related to public water systems and implementation of the Safe Drinking Water Act. Key activities include reporting and database maintenance and improvement. All activities are dependent upon the availability of funding. D. CONTRACTED SERVICES – PUBLIC WATER SYSTEM TECHNICAL ASSISTANCE MassDEP will fund a third-party contractor to provide technical assistance support to the DWP and PWS. Activities will focus on the Safe Drinking Water Act requirements and Massachusetts Drinking Water Regulations and support for electronic submission of data to DWP. The proposed activities may include (but not be limited to) the following: Supporting PWS and DEP in submittal of Annual Statistical Report and Water Quality Monitoring Reports. Development of training programs to support DWP staff and PWS in the proper submission of electronic data. IV. 15% -SOURCE WATER PROTECTION AND CAPACITY DEVELOPMENT – 4 FTEs MassDEP anticipates applying for $1,427,500 from the 2022 DWSRF Supplemental Grant for Source Water Protection and Capacity Development. The authorized activities under this set-aside can include: land acquisition and conservation easement program, source water protection, wellhead protection and technical and financial capacity implementation. A. WELLHEAD PROTECTION AND CAPACTIY IMPLEMENTATION-4 FTEs • Assist with source protection program activities related to groundwater sources, as well as operation of the UIC program (a.k.a. “Underground Source Water Protection Program”). Ensure consistency of this work among regions; coordinate with GIS and Internet programs; coordinate with other MassDEP programs; investigate available data for usefulness to groundwater protection; and develop relevant policies and procedures.

9 • Develop and maintain spatial data related to public water sources and potential contamination threats. Work with regional staff and resources to locate regulated facilities including locating information in files and making site visits to collect location information. Assist with GIS management. • Assist in Zone II delineation (and re-delineation as needed) and other wellhead protection- related work. • Provide technical assistance on source protection to public water suppliers and local officials, and assist with the source water assessment program and with protection of groundwater sources from contamination by septic systems. This includes providing system-specific protection recommendations. • In accordance with the Capacity Strategy, provide technical assistance in implementing capacity development, including the ability to provide adequate quantities of source water. Provide Capacity Outreach. • Provide assistance, primarily with protection of groundwater sources B. CONTRACTED SERVICES – Statewide Well Location Parcel Matching MassDEP will fund a contractor(s) to continue work associated with well completion report parcel matching and spatial data improvements to well locations in Massachusetts. Activities will focus on the Safe Drinking Water Act requirements and Massachusetts Drinking Water Regulations in protecting the groundwater quality in the Commonwealth by acquiring as many accurate locations as possible for the 200,000+ wells currently housed in the Well Driller database. All activities are subject to change and are dependent upon the availability of funding. C. CONTRACTED SERVICES – Hydrogeological Services MassDEP will fund a contractor(s) to continue work associated with assisting the Drinking Water Program with SDWA source approval/ hydrogeologic reviews. Activities will focus on the Safe Drinking Water Act requirements and Massachusetts Drinking Water Regulations in protecting the groundwater quality and quantity in the Commonwealth by reviewing the hydrogeologic components of New Source Approvals, Zone II delineations, Groundwater Discharge Permits near Public Water Supplies, and potential contamination threats to Public Water Supplies. All activities are subject to change and are dependent upon the availability of funding. 15% Set-Aside Deliverables • UIC program operating under State Primacy • Spatial data, maps. • Zone II Reviews • On-Site training and support to water suppliers • UIC tracking and reports • Outreach materials, technical assistance meetings, training for regions, and bylaw reviews. • Implementation of water conservation capacity improvement grant program. • Implementation of Capacity Development program. • Implementation of the Source Water Protection program. • Plan for implementation of the Lead and Copper Rule Revisions (LCRR) 15% Set-Aside Measures of Success: • Improved source protection for ground water sources at state and local levels • GIS databases are properly reviewed and maintained • Reviews are conducted in a timely manner • Contract oversight is effective

10 • Technical Assistance is appropriate and timely and leads to improved source and aquifer protection in the systems visited • Methods to assure capacity to deliver adequate quantities of drinking water are developed • Program goals meet MassDEP objectives • Improved protection at the local level 2022 IUP Drinking Water Set-Asides Supplemental DWSRF Grant Budget Grant Amount: $41,750,000 4% Admin 2% Small System 10% State Program 15%Local Asst Total Grant Funded Salary 1,665,430 $ 242,363 $ - $ 766,786 $ 2,674,579 $ Travel 4,570 $ 637 $ - $ 714 $ 5,921 $ Supplies - $ - $ - $ - $ - $ Equipment - $ - $ - $ - $ - $ Contracts - $ 340,000 $ 2,150,000 $ 660,000 $ 3,150,000 $ Total 1,670,000 $ 583,000 $ 2,150,000 $ 1,427,500 $ 5,830,500 $ FTE 9 1.25 - 4 14.25 Set-Aside

11 Information on Set-asides – Lead Service Line DWSRF Grant The Commonwealth of Massachusetts plans to use $17,103,580 (26% of $65,783,000) of the Lead Service Line DWSRF Grant’s set-aside funding to support activities that are authorized in the Safe Drinking Water Act Amendments of 1996. The 4%, 10%, and a portion of the 15% set-aside funds will be allocated to provide loan forgiveness to eligible borrowers. Starting on July 1, 2022, the Commonwealth is accepting SRF loan applications with 100% loan forgiveness for planning activities that assist public water suppliers with completing planning projects for lead service line inventories and replacement programs. The Lead Service Line (LSL) Planning Loan Forgiveness Program will follow all SRF program requirements. I. 4% DWSRF ADMINISTRATION SET-ASIDE MassDEP plans to apply for the full 4%, $2,631,320, to allocate to the LSL Planning Loan Forgiveness Program. II. 2% FOR SMALL SYSTEMS SET-ASIDE MassDEP plans to apply for the full 2%, $1,315,660, to fund the following: CONTRACTED SERVICES - Assistance for Small Community Water Systems and Non- Transient, Non-Community Systems - Lead Service Line Planning Program MassDEP will use these set-aside funds to contract with a qualified technical assistance provider to complete the following eligible planning projects working with the PWS: • LSL Inventory - Find, map, and inventory water distribution and customer service lines to complete a comprehensive LSL inventory that will be made publicly available by MassDEP. • LSL Replacement Program - Completion of an LSL replacement program that complies with LCRRs. MassDEP’s technical assistance program will support the goal of planning to remove all lead service lines in 5 years. This program will be managed and operated by MassDEP’s Drinking Water Program. All activities are subject to change and are dependent upon the availability of funding. III. 10% FOR STATE PROGRAM MANAGEMENT SET-ASIDE MassDEP plans to apply for the full 10%, $6,578,300, to allocate to the LSL Planning Loan Forgiveness Program. IV. 15% -SOURCE WATER PROTECTION AND CAPACITY DEVELOPMENT MassDEP plans to apply for the 10%, $6,578,300, of the 15% set-aside, to allocate to the LSL Planning Loan Forgiveness Program.

12 2022 IUP Set-Asides Lead Service Line DWSRF Grant Budget Grant Amount: $65,783,000 Set-Asides 4% Admin 2% Small System 10% State Program 15%Local Asst (applying for 10% only) Total Set Asides Principal Forgiveness $ 2,631,320 $ 6,578,300 $ 6,578,300 $ 15,787,920 Contract - $ 1,315,660 - - $ 1,315,660 Total $ 2,631,320 $ 1,315,660 $ 6,578,300 $ 6,578,300 $ 17,103,580