STATE WATER RESOURCES CONTROL BOARD MEETING

SACRAMENTO, CALIFORNIA

MAY 27, 1998

ITEM: 11
SUBJECT: CONSIDERATION OF APPROVAL OF A RESOLUTION TO DEOBLIGATE A STATE REVOLVING FUND (SRF) LINKED DEPOSIT PROGRAM FOR THE BIORECYCLING TECHNOLOGIES INCORPORATED (BTI) DAIRY WASTE MANURE RECYCLING FACILITY (PROJECT) (LOAN NUMBER C-06-6030-110)
DIS-

CUSSION:

 On August 17, 1995, the State Water Resources Control Board (SWRCB) adopted Resolution No. 95-17 authorizing a Linked Deposit Program to construct the Project. The amount of the SRF funding was to be $15 million. However, BTI has not proceeded with the Project and has not met the requirements of the Linked Deposit Program.


BTI indicated that there were no immediate plans to proceed with the Project and verbally consented to deobligating the funding. However, BTI requested that the Project remain on the Project Priority List. SWRCB staff sent a letter dated March 9, 1998 (Attachment) to BTI indicating that these issues will be considered at an SWRCB Workshop and Meeting in May 1998.
POLICY

ISSUE:

 Should the SWRCB deobligate the SRF Linked Deposit Program for the BTI Project?
FISCAL

IMPACT:

 None.


RWQCB

IMPACT:

 Santa Ana Regional Water Quality Control Board.


STAFF

RECOMMEN-

DATION:

 That the SWRCB deobligate the Linked Deposit Program authorized by SWRCB Resolution 95-17 and retain the Project on the Project Priority List to allow possible funding at a future date.



May 4, 1998 Draft



STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 98-


APPROVAL OF A RESOLUTION TO DEOBLIGATE

A STATE REVOLVING FUND (SRF) LINKED DEPOSIT PROGRAM

FOR THE BIORECYCLING TECHNOLOGIES INCORPORATED (BTI)

DAIRY WASTE MANURE RECYCLING FACILITY (PROJECT) (LOAN NUMBER C-06-6030-110)


WHEREAS:


1. The State Water Resources Control Board (SWRCB) adopted Resolution No. 95-17 to establish a $15 million Linked Deposit Program to construct the Project for BTI on August 17, 1995.
2. BTI has indicated that there are no immediate plans to proceed with the Project but requested that it remain on the Project Priority List.
3. Deobligation of SWRCB Resolution 95-17 will allow funds set aside for the Project to be used for other important water quality projects.


THEREFORE BE IT RESOLVED THAT:


The SWRCB:


1. Deobligates the Linked Deposit Program authorized by SWRCB Resolution 95-17.
2. Retains the Project on the Project Priority List to allow possible funding at a future date.


CERTIFICATION


The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on May 27, 1998.


_____________________________________

Maureen Marché

Administrative Assistant to the Board







ATTACHMENT

March 9, 1998




Mr. David W. Barth

Executive Vice President-Finance

Biorecycling Technologies, Inc.

6101 Cherry Avenue

Fontana, CA 92336


Dear Mr. Barth:


STATE REVOLVING FUND (SRF): BIORECYCLING TECHNOLOGIES, INC. (BTI) DAIRY MANURE RECYCLING FACILITY


We understand that BTI has not proceeded with the Dairy Manure Recycling Facility project because of a business decision but may resume plans for construction at a future date. The State Water Resources Control Board (SWRCB) originally authorized $15 million for the project at the August 17, 1995 Board Meeting. However, the $15 million set aside for the BTI project is now needed for other projects that are ready to proceed. Therefore, unless you contact us by April 15, 1998 with a schedule for initiation of construction within one year of the date of this letter, the SWRCB will consider deobligation of the $15 million set aside for the project at its May 1998 Workshop and Board Meeting.


If the SWRCB deobligates the $15 million previously set aside for this project, the project will be retained on the SRF Project Priority List. However, if BTI decides to reapply for SRF funding for construction of the facility in the future, SWRCB approval will again be required.


If you require further assistance, please telephone Paul Roggensack, the staff person most knowledgeable on this subject, at 916/657-0673. You may also call William Campbell, Chief of the Nonpoint Source Certification and Loans Unit, at 916/657-1043.


Sincerely,



Original Signed By


Jesse M. Diaz, Chief

Division of Water Quality