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Economic Recovery Funding Drinking Water Infrastructure Projects January 2009

Economic Recovery Funding Drinking Water Infrastructure Projects January 2009. California Department of Public Health Safe Drinking Water State Revolving Fund. Economic Recovery Bill. Pending President Obama’s signature sometime after January 20, 2009, the Recovery bill will:

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Economic Recovery Funding Drinking Water Infrastructure Projects January 2009

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  1. Economic Recovery FundingDrinking Water Infrastructure ProjectsJanuary 2009 California Department of Public Health Safe Drinking Water State Revolving Fund

  2. Economic Recovery Bill Pending President Obama’s signature sometime after January 20, 2009, the Recovery bill will: • Address the nation’s need to bolster the economy and create jobs. • Provide $1.0 billion for Safe Drinking Water State Revolving Funds (SDWSRF) nationally; total allotment could increase. • Provide California an estimated amount in excess of ~$80 million; total allotment could increase. • Will focus on “shovel-ready” projects as the priority

  3. What are we doing? • What is the Federal Government doing? • What is CDPHdoing? • What should Public Water Systems be doing? • Identify projects that are "ready to proceed"*

  4. Possible Stimulus Bill Provisions Recent versions of the Economic Stimulus Bill have contained the following: • Drinking water funds will be allocated through the SDWSRF program • The U.S. EPA has until September 30, 2009 to make the grant to the state • The state shall enter into a loan contract with an applicant within 120 days after State receives grant • Current recommendation is to increase this to 180 days • No State matching funds are required • Therefore no State "labor compliance plan" required

  5. Possible Stimulus Bill Provisions • Allows for State administrative costs to implement program • But CDPH doesn’t have time to create additional positions • Allows for principal forgiveness (grants) • CA SDWSRF max grant $1 million per project • (potential state legislation to increase this) • Allows for reduction in interest rates • No CDPH plan to reduce interest rates • CA SDWSRF loans: • 0% for disadvantaged communities • <80% of statewide MHI (<$44,670 for 2008) • 2.3086% in 2008 for non-disadvantaged communities

  6. Eligible Projects for this Funding Only projects that are “ready to proceed”: • Complete application must be submitted by deadline specified by CDPH (September 2009?). • Must include final plans and specifications. • Must comply with environmental requirements at the time of application : • Must be determined to be NEPA excluded AND CEQA exempt; OR • All final CEQA documents and filings must be complete, and project must be adopted and approved by the Lead Agency. • Plus, applicant must be able to complete the federal requirements of Section 7 of the Endangered Species Act and Section 106 of the National Historic Preservation Act within 60 days.

  7. Additional Project Information • Funding agreement cannot be issued by CDPH and construction cannot begin until final environmental clearance. • Construction must begin within 60 days of executed funding agreement. • Water system must have adequate Technical, Managerial, and Financial capacity. • Our CDPH District Office can provide information on this requirement. • Any Proposition 218 requirement for a rate increase must be met prior to issuance of a funding agreement by CDPH.

  8. SDWSRF Economic RecoveryFunding Process • Applicant submits a pre-application for Economic Recovery Funding (ER$) • CDPH reviews and ranks ER$ pre-apps • CDPH publishes draft Project Priority List • CDPH invites projects to submit complete application • CDPH evaluates funding application • CDPH issues funding agreement

  9. SDWSRF ER$ Project Priority List • Only projects that are ready to proceed will be included. • Projects ranked into health-based categories • Ranking within each category is based on: • Median household income • Consolidation of systems • Population served.

  10. Funding Applications CDPH invites projects from PPL based on available funding. • Applicant will have 60 days to submit a completed application. • There will be no extensions to this deadline. • CDPH will process applications in the order received • CDPH will continue to process applications until all funds have been allocated. • CDPH to issue funding agreement within 60 days of determination of project eligibility and funding amount. • The funding application and required documents will be posted on our website in February.

  11. Upcoming Workshops/Events 2009 California Financing Coordinating Committee (CFCC) Funding Fairs February 3, 2009 – Chino – Inland Empire Utilities Agency February 5, 2009 – Bakersfield – UC Merced, Bakersfield Center March 10, 2009 – Eureka – City of Eureka April 2, 2009 – Merced – UC Cooperative Extension May 7, 2009 – Sacramento – Cal Environmental Protection Agency For location information, visit the CFCC website: www.cfcc.ca.gov

  12. Contact/Resources Information • SDWSRF program information: http://www.cdph.ca.gov/services/funding/pages/SRF.aspx • Email to request current program announcements: contact SDWSRF@cdph.ca.gov • Other funding programs for Public Water Systems: • Prop 50 and Prop 84 grant programs (thru above website) • Department of Water Resources • www.grantsloans.water.ca.gov

  13. Questions

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