ITEM: 13

SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO APPLY FOR AND ACCEPT FISCAL YEAR (FY) 1998-99 CLEAN WATER ACT SECTION 106S (SURFACE WATER), SECTION 106G (GROUND WATER), AND SECTION 104(B)(3) (WATERSHED MANAGEMENT) WATER POLLUTION CONTROL PROGRAM GRANTS, PLUS ANY CARRY-OVER FY 1997-98 GRANT FUNDS, AND TO NEGOTIATE, APPROVE, AND/OR AMEND THE GRANTS AND THE WORKPLANS

DISCUSSION: Section 106 of the Clean Water Act authorizes the appropriation of monies for Federal grants to assist states in administering programs for the prevention, reduction, and elimination of pollution. The State Water Resources Control Board (SWRCB) annually files applications and develops workplans with the U.S. Environmental Protection Agency (U.S. EPA) for grants under Section 106 for surface water (S) and ground water (G) pollution control programs.

Section 104 of the Clean Water Act authorizes the appropriation of monies for Federal grants to assist states with specific water pollution control projects. The State Water Resources Control Board (SWRCB) annually files an application and develops a workplan with the U.S. Environmental Protection Agency (U.S. EPA) for a grant under Section 104 for specific water pollution control projects.

For FY 1998-99, U.S. EPA has indicated that they are willing to provide up to $765,000 in Section 104 grant funds, plus carryover funds from FY 1997-98 projected as $200,000, totalling $965,000 and up to $510,000 in Section 106G grant funds, plus carryover funds of $30,000 from FY 1996-97 and up to $515,000 from FY 1997-98, totalling $1,055,000, to assist in implementation of certain high priority projects as identified by the Regional Water Quality Control Boards (RWQCBs) in their April 30, 1998 Watershed Management Initiative (WMI) Chapter updates and by the SWRCB. By agreement with U.S. EPA, up to four Section 104 grants will be consolidated in a single grant application for FY 1998-99. They are a baseline watershed management grant of $500,000, plus carryover, a grant of $150,000 for Leviathan Mine, a grant of $80,000 for a statewide Sanitary Sewer Overflow Survey, and a grant of $35,000 for work related to an economic analysis of the California Toxics Rule. These grants total up to $765,000, plus carryover funds from FY 1997-98.

U.S. EPA has indicated that they may consider increasing the above grants to the extent that funds are available. It is therefore prudent to allow for expected additional monies in the initial authorization by the SWRCB. An allowance of $135,000 has therefore been made in the amount for the Section 104 grant package on the advice of U.S. EPA.

U.S. EPA has also indicated that they are willing to provide $4,034,842 in Section 106S grant funds for FY 1998-99, plus carryover FY 1997-98 funds. All of the Section 106S funds will be designated for support of the baseline NPDES Program.

With the start of implementation of the WMI in FY 1998-99, the NPDES Program is being integrated into the WMI as a pilot project. The Section 106G and Section 104 grants are specifically to assist in implementation of WMI by providing Federal funds to support specific WMI-related projects as identified by the RWQCBs in their WMI Chapters. To promote this integration of activities under WMI, the SWRCB has designated a single grant manager for these Section 106S, Section 106G, and Section 104 grants and intends to develop a single integrated workplan for all three grants. This will assist U.S. EPA in evaluating the workplan proposals and will assist the SWRCB in managing these grants under WMI. U.S. EPA has also indicated that they may consider combining these three grants, at the SWRCB's option, into a single grant for the purposes of promoting integration of activities under WMI.

POLICY ISSUE: Should the SWRCB authorize the Executive Director or his designee to apply for and accept three FY 1998-99 grants as follows and to negotiate, approve, and/or amend these grants and the workplans with U.S. EPA: Section 106S Grant in an amount not to exceed $4,034,842, Section 106G grant in an amount not to exceed $510,000, and consolidated Section 104(b)(3) Grant in an amount not to exceed $900,000, plus any carry-over FY 1996-97 and FY 1997-98 funds?

FISCAL IMPACT: The FY 1998-99 baseline budget includes authority of $3,883,563 for Section 106S Grant funds. Additional Federal fund authority for this grant will be required and may be available elsewhere in the budget. If unexpended FY 1997-98 grant funds are carried over to the FY 1998-99 grant, SWRCB will be advised and the FY 1998-99 grant amended accordingly.

The FY 1998-99 baseline budget includes authority of $750,747 for Section 106G Grant funds. Additional Federal fund authority for this grant will be required and may be available elsewhere in the budget if unexpended FY 1996-97 and FY 1997-98 grant funds are carried over to the FY 1998-99 grant. SWRCB will be advised and the FY 1998-99 grant amended accordingly if there are carryover funds.

The FY 1998-99 baseline budget includes authority of $476,839 for Section 104(b)(3) Grant funds. Additional Federal fund authority for this grant will be required and may be available elsewhere in the budget. If unexpended FY 1996-97 and FY 1997-98 grant funds are carried over to the FY 1998-99 grant, SWRCB will be advised and the FY 1998-99 grant amended accordingly.

If required, a Section 28 request would be prepared by the Division of Water Quality to obtain any additional Federal expenditure authority required for these three grants.

RWQCB IMPACT: Yes. All RWQCBs and SWRCB Division of Water Quality.

STAFF RECOMMENDATION: That the SWRCB authorize the Executive Director, or his designee, to apply for and accept a FY 1998-99 Section 106S (Surface Water) Grant in the amount of $4,034,842, a Section 106G (Ground Water) Grant in the amount of $510,000, and a consolidated Section 104(b)(3) Grant in the amount of $900,000, plus any carry-over FY 1996-97 and FY 1997-98 Grant funds, and to negotiate, approve, and/or amend the grants and the workplans.

May 4, 1998 Draft

WHEREAS:

1. The U.S. Environmental Protection Agency (U.S. EPA), Region 9, has indicated that the FY 1998-99 Section 106S Water Pollution Control Program Grant for California will not exceed $4,034,842, plus any carry-over FY 1997-98 funds; that the FY 1998-99 Section 106G Water Pollution Control Program Grant for California will not exceed $510,000, plus any carry-over FY 1996-97 and FY 1997-98 funds; and that the consolidated FY 1998-99 Section 104(b)(3) Watershed Management Grant for California will not exceed $900,000, plus any carryover FY 1997-98 funds.

2. The Section 106S grant assists the State Water Resources Control Board (SWRCB) in funding the National Pollutant Discharge Elimination System Program for regulation of surface water discharges to prevent and abate water pollution.

3. The Section 106G and Section 104(b)(3) grants assist the SWRCB in funding specific projects related to implementation of its Watershed Management Initiative and to other high priority statewide projects.

4. The SWRCB and the nine Regional Water Quality Control Boards intend to integrate program activities under the Watershed Management Initiative beginning in FY 1998-99 in order to adequately address the highest priority water pollution problems in California.

THEREFORE BE IT RESOLVED THAT:

The SWRCB authorizes the Executive Director or his designee to apply for and accept an FY 1998-99 Section 106S (Surface Water) grant in an amount not to exceed $4,034,842, plus any carry-over FY 1997-98 grant funds, an FY 1998-99 Section 106G (GroundWater) grant in an amount not to exceed $510,000, plus any carry-over FY 1996-97 and FY 1997-98 grant funds, and a consolidated FY 1998-99 Section 104(b)(3) (Watershed Management) grant in an amount not to exceed $900,000, plus any carryover FY 1997-98 funds, and to negotiate, approve, and/or amend the grants and the workplans.

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