ITEM: 15 CONSIDERATION OF AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO APPLY FOR AND ACCEPT FEDERAL FUNDS FOR CONTINUED FUNDING OF THE MORRO BAY NATIONAL ESTUARY PROGRAM

DISCUSSION: In 1995, Morro Bay was nominated by the Governor and accepted by U.S. Environmental Protection Agency (U.S. EPA) for funding through the National Estuary Program (NEP) under Section 320 of the Clean Water Act for the purpose of preparing a comprehensive restoration and management plan for the estuary. The Morro Bay Estuary has been impacted by accelerated sedimentation and by excessive nutrients and other contaminating substances in runoff to the Bay. In 1995, U.S. EPA awarded a start-up grant of $60,851 to State Water Resources Control Board (SWRCB) for use by the Central Coast Regional Water Quality Control Board (CCRWQCB) in support of the Morro Bay NEP. In 1996 this grant was augmented by $133,900; and in 1997, the grant was further augmented by $113,490, bringing the total to $308,241 to date (Additional funding for the Estuary is provided through a separate grant from U.S. EPA directly to the Foundation of Morro Bay). This will be the final year for funding the planning phase of the Morro Bay NEP. The precise level of U.S. EPA funding and the distribution of funds between SWRCB and the Bay Foundation (or other recipient) during this remaining year of the planning phase has not yet been determined. The grant is estimated to be between $150,000 to $192,000.

Recipients of NEP funds are responsible for providing 25 percent in matching expenditures of non-federal funds. The CCRWQCB provides this match in the form of various in-kind services, including rental of office space, telephone lines, printing, postage, and laboratory analyses. Administration of the grant is accomplished within budgeted resources by the Water Quality Planning Unit within the Division of Water Quality.

The cumulative amount of $308,241 in U.S. EPA funds provided to date will be augmented by the grant amendment, not to exceed $500,000 in the aggregate for the planning phase. The total presently exceeds the $200,000 threshold which requires SWRCB authorization. Resolution No. 97-68 was approved by the SWRCB to permit the Executive Director to apply for and accept the grant augmentation.

POLICY ISSUE: Should the SWRCB adopt a resolution authorizing the Executive Director to apply for and accept Federal funds, not to exceed in the aggregate $500,000 from U.S. EPA to support the final year of the planning phase of the Morro Bay NEP?

FISCAL IMPACT: Provision of in-kind matching expenditures by the CCRWQCB and grant administration by the Division of Water Quality will be accommodated within budgeted resources.

RWQCB IMPACT: Yes, CCRWQCB.

STAFF RECOMMENDATION: That the SWRCB approve a resolution authorizing the Executive Director to apply for and accept Federal funds to support the final year of the planning phase of the Morro Bay NEP Project.

May 4, 1998 Draft

WHEREAS:

1. Morro Bay has been designated a "State Estuary" by the California Legislature, which requires that a management plan for the Estuary be prepared; and

2. Section 320 of the Federal Clean Water Act establishes the National Estuary Program (NEP) for the purpose of funding development of resource conservation and management plans in selected estuaries of national interest; and

3. In 1995, the Central Coast Regional Water Quality Control Board prepared a nomination of Morro Bay to the NEP, which the State Water Resources Control Board (SWRCB) supported and authorized by Resolution No. 95-13, and which was approved by the Administrator of U.S. Environmental Protection Agency (U.S. EPA); and

4. The Morro Bay NEP was established in 1995 as a cooperative venture among the SWRCB, U.S. EPA, and other State and local agencies and interest groups and has received NEP funding partly through SWRCB since that time; and

5. The Morro Bay NEP expects to receive NEP funds for this final year in the planning phase; and

6. Through U.S. EPA Assistance Agreement No. CE999410, by which the SWRCB receives funds for the Morro Bay NEP, SWRCB has currently to date accepted $308,241 in NEP funds; and

7. U.S. EPA has indicated that future funds for the Morro Bay NEP will be granted through an amendment to Assistance Agreement No. CE999410, which will not thereby exceed $500,000 in the aggregate for the planning phase. The acceptance of this grant augmentation by the Executive Director requires specific authorization by the SWRCB; and

8. SWRCB continues to support the Morro Bay NEP effort and wishes to see the project achieve its goals.

THEREFORE BE IT RESOLVED THAT:

The SWRCB authorizes the Executive Director to apply for and accept Federal funds, not to exceed in the aggregate $500,000, to support the final year of the planning phase of the Morro Bay NEP Project.

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