STATE WATER RESOURCES CONTROL BOARD

WORKSHOP SESSION - DIVISION OF CLEAN WATER PROGRAMS

JUNE 1, 2000

 

ITEM  3

 

 

SUBJECT

 

STATUS REPORT REGARDING PROPOSALS FOR IMPLEMENTING PROPOSITION 13 PROGRAMS FOR THE STATE REVOLVING FUND (SRF) LOAN, THE SMALL COMMUNITIES GRANT (SCG), THE WATER RECYCLING LOAN AND GRANT, THE SEAWATER INTRUSION CONTROL LOAN, AND THE WASTEWATER CONSTRUCTION GRANT PROGRAMS (INFORMATION ITEM)

 

DISCUSSION

 

This is an information item summarizing the Division of Clean Water Program's (DCWP) proposals for administering the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act (2000 Bond) passed by the voters on March 7, 2000.  The 2000 Bond authorizes grant and loan funding totaling $158 million for five programs to be administered by the Division of Clean Water Programs (DCWP).  The DCWP proposes that these programs be implemented as quickly as possible, thus enabling these funds to be awarded quickly to prospective applicants.  Consistent with this premise, the DCWP proposes to implement the five programs in the following manner:

 

1.  SRF Loan Program - $23.5 million

 

This program provides low interest loans for construction of publicly-owned wastewater treatment and water recycling facilities, correction of nonpoint source, and stormwater pollution problems, and estuary enhancement activities.

 

The SRF is an ongoing continuous program administered using procedures adopted by the State Water Resources Control Board (SWRCB) on June 18, 1998.  No further action is necessary on the part of the SWRCB to make this money available to eligible recipients.

 

2.  SCG Program - $34 million

 

This is a grant program for small communities with populations of less than 10,000 people.  It provides assistance of up to 97.5 percent of the eligible costs, not to exceed $3.5 million per grant.

 

The DCWP proposes to administer this program using procedures adopted by the SWRCB on April 30, 1997, with an amendment to increase the eligible population to 10,000 people.

A separate agenda item has been prepared for the SWRCB's consideration later in this Workshop.

 

3.  Clean Water Construction Grant Program - $35.5 million

 

This program provides grant funds for the cities of Stockton, Manteca, Tracy, and Orange Cove for construction of wastewater treatment facilities.  The DCWP proposes to implement this program using the state review requirements contained in the SRF procedures adopted by the SWRCB on June 18, 1998.  This proposal would waive all of the federal requirements applicable to the SRF program leaving only the state requirements to be met by these four cities.

 

The distribution of the available funds to the four cities has not been resolved at this time.  A separate agenda item will be prepared for a later Workshop with staff recommendations for distributing the funds.

 

4.  Seawater Intrusion Loans - $25 million

 

This program provides low interest loans for local agencies to design and construct seawater intrusion control facilities in a basin where groundwater is threatened by seawater intrusion, that is subject to a local groundwater management plan, and where restrictions on groundwater pumping, a physical solution, or both, are necessary to prevent groundwater degradation.

 

The 2000 Bond Law added $25 million to augment the existing Seawater Intrusion Control Loan Program.  The provisions in the law are the same as those set forth in the 1996 Bond Law.  Therefore, the program will continue to function under the procedures in the Seawater Intrusion Control Program Guidelines.

 

5.  Water Recycling Financial Assistance Program - $40 million

 

a.  Water Recycling Construction Assistance Program

 

The 2000 Bond Law added $40 million to augment the existing water recycling funding activities for facilities planning and design and construction, as well as for special studies and research.  The law provides that grants, as well as low-interest loans, can be provided for design and construction of water recycling projects.  It is proposed to establish a priority list of potential projects for funding of design and construction.  Information on all prospective recycling projects will be requested.  The projects will be ranked using the criteria in the Bond Law and other criteria as appropriate.  Projects ready to proceed will not be held up.  Because grants and a priority list are not provided for in the current Water Recycling Funding Guidelines, the details will be specified at a later Workshop and Board meeting when the priority list is submitted to the SWRCB for approval.

 

b.  Water Recycling Facilities Planning Grant Program

 

The 2000 Bond Law continues the provisions for grants up to $75,000 for facilities planning studies for water recycling projects.  This program will continue to operate under the provisions in the Water Recycling Funding Guidelines.

 

c.  Water Recycling Special Studies and Research Program

 

The 2000 Bond Law specified that up to three percent of the water recycling funds may be used for special studies and research.  The DCWP proposes to meet with a group of interested parties to discuss possible procedures for soliciting and approving projects.  There will probably be an advisory committee established, including representatives from government and research institutions, to assist in evaluating proposals.  After a firm concept is developed, the SWRCB will be advised at a later Workshop and Board meeting.

 

POLICY ISSUES: 

 

The DCWP's proposal to implement the five programs using previous SWRCB approved documents acceptable to the SWRCB with the provision that additional material on the Wastewater Construction Grants, and the Water Recycling Grant and Loan Programs will be brought before the SWRCB for its consideration at a later date.

 

FISCAL IMPACT

 

A total of three percent of the monies placed in the five program subaccounts can be used to administer the programs.  A Finance Letter has been submitted to the Department of Finance requesting necessary funded positions for State Fiscal

Year 2000-20001.

 

RWQCB IMPACT

 

None.