STATE WATER RESOURCES CONTROL BOARD
WORKSHOP--DIVISION OF CLEAN WATER PROGRAMS
JUNE 1, 2000
ITEM 1
SUBJECT
PROPOSED STATE FISCAL YEAR (SFY) 2000/01 STATE REVOLVING FUND (SRF) LOAN PROGRAM PROJECT PRIORITY LIST
DISCUSSION
Staff of the Division of Clean Water Programs (Division) has published, revised, and updated the draft SFY 2000/01 SRF Loan Program Project Priority List in accordance with the Clean Water Act and federal regulations. The revised list contained in Exhibit A (the list was mailed initially to the public on April 27, 2000) reflects requests submitted by all of the Regional Water Quality Control Boards.
It is estimated that about $1.35 billion will be appropriated by Congress nationally for Federal Fiscal Year 2001 for SRF loans. California is expected to receive 7.24 percent of this or about $100 million, as a Capitalization grant for the SRF. With the 20 percent State match, the total will be $120 million. Another $96 million in repayments is also expected to be available for a total of $216 million. These monies have already been committed to projects by the State Water Resources Control Board (SWRCB). The funds can be used for construction of wastewater treatment and water reclamation facilities, correction of nonpoint source and stormwater pollution problems, and implementation of estuary enhancement activities. The adopted SFY 2000/01 Project Priority List will be used to determine the projects that can compete for loan assistance in SFY 2000/01.
Because it is difficult to predict how many projects will be ready in any given year, we are proposing that Priority Classes A through D be placed on the list. All projects scheduled for loans in SFY 2000/01 will compete on a first-come, first-served basis to obtain a preliminary loan commitment until the available funds are committed. The amount of funding available for preliminary loan commitments for new projects will be based on the cash flow system and is estimated to be at least $220 million at this time. A project must appear on the Statewide Priority List to qualify for loan assistance. Though a project may be identified on the Statewide Priority List, this is not a commitment to provide loan assistance, except for projects on the fundable portion (first year) of the Statewide Priority List.
The fundable portion of the Statewide Priority List includes only those projects which have received a preliminary loan commitment from the SWRCB and are scheduled for loan assistance during the first year of the five-year planning period.
Projects that become ready for construction in SFY 2000/01, but are not on the fundable portion of the Statewide Priority List, will be moved to the fundable portion after the preliminary loan commitment is issued. A number of key issues were identified in the Public Hearing announcement regarding the development of the SFY 2000/01 List. Exhibit B is a summary of written comments received to date on the Statewide Priority List.
The following is a discussion of the key issues taking into consideration all the input received to date:
I. Funding Cap - The SWRCB estimates that about $220 million will be available in SFY 2000/01 for new commitments by the SWRCB. The cap for SFY 2000/01 has been set at $25 million by the SWRCB in action taken on May 20, 1999 when it approved the cash flow system for approval of loans. This cap would only apply to projects brought before the SWRCB for a preliminary loan commitment in SFY 2000/01.
II. Deferral of Funding for Major Sewer Rehabilitation - Major sewer rehabilitation projects are
eligible for funding. Since the current Statewide Priority List contains over $1 billion in rehabilitation projects that could be funded in SFY 2000/01, staff recommends that the SWRCB continue its funding deferral of major sewer rehabilitation projects. Staff believes the money is better spent on the other eligible projects.
III. Adoption of the SFY 2000/01 SRF Loan Program Project Statewide Priority List – Staff
recommends that the SWRCB adopt the SFY 2000/01 SRF Loan Program Project Statewide Priority List.
POLICY ISSUE
Should the final SFY 2000/01 SRF Project Statewide Priority List be adopted?
FISCAL IMPACT
The development and adoption of the Statewide Priority List is a requirement of the Federal Clean Water Act and regulations. The staff effort required to administer loans for projects on the fundable portion of the Statewide Priority List is funded by a four percent administrative set-aside from each SRF Capitalization Grant. Staffing levels approved for the Division for SFY 2000/01 will be sufficient to review and process projects from the fundable portion of the list which are expected to submit documents for review.
RWQCB IMPACT
Yes - All regions
STAFF RECOMMENDATION
That the SWRCB
adopt the final SFY 2000/01 SRF Project Statewide Priority List.
DRAFT May 22, 2000
STATE WATER RESOURCES CONTROL BOARD
RESOLUTION NO. 2000 -___
ADOPTION OF THE STATE FISCAL YEAR (SFY) 2000/01 STATE REVOLVING FUND (SRF) LOAN PROGRAM PROJECT PRIORITY LIST
WHEREAS:
1. The Division of Clean Water Programs (Division) has developed the SFY 2000/01 SRF Loan Program Priority List based on Regional Water Quality Control Board and public input consistent with the Federal Clean Water Act;
2. The availability of funds under the SRF Loan Program and the interest expressed for developing and implementing wastewater treatment and water recycling, nonpoint source and storm drainage pollution correction, and estuary enhancement programs and projects support funding Priority Classes A through D in SFY 2000/01;
3. It is expected that the federal appropriations bill for Federal Fiscal Year (FFY) 2000 will allow the states to fund major sewer system rehabilitation (Needs Category IIIB), new collection system (Needs Category IVA), and combined sewer overflow projects (Needs Category V) projects without limitation;
4. The SWRCB adopted a $25 million cap for State Fiscal Year 2000/01 in action taken on
May 20, 1999; and
5. Up to four percent of the FFY 2001 Federal Capitalization Grant is available for state administration.
THEREFORE BE IT RESOLVED THAT:
The State Water Resources Control Board:
1. Approves the placement of Priority Classes A through D on the fundable portion of the SFY 2000/01 Priority List;
2. Directs that funding for major sewer rehabilitation projects be deferred and the projects placed on the unscheduled portion of the SFY 2000/01 list;
3. Approves the set-aside of four percent of the FFY 2001 Capitalization Grant amount for SRF Loan Program administration; and
4. Adopts the Final SFY 2000/01 SRF Loan Program Project Priority List.
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 June 15, 2000.
_______________________________
Maureen Marché
Administrative Assistant to the Board