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Economic Recovery FundingEconomic Recovery Funding

Drinking Water Infrastructure ProjectsDrinking Water Infrastructure Projects

January 2009January 2009

California Department of Public HealthSafe Drinking Water State Revolving Fund

Economic Recovery BillEconomic Recovery BillPending President Obama’s signature sometime Pending President Obama’s signature sometime

after January 20, 2009, the Recovery bill will:after January 20, 2009, the Recovery bill will:• Address the nation’s need to bolster the Address the nation’s need to bolster the

economy and economy and create jobscreate jobs..• Provide $1.0 billion for Safe Drinking Water State Provide $1.0 billion for Safe Drinking Water State

Revolving Funds (SDWSRF) nationally; total Revolving Funds (SDWSRF) nationally; total allotment could increase.allotment could increase.

• Provide California an estimated amount in excess Provide California an estimated amount in excess of ~$80 million; total allotment could increase.of ~$80 million; total allotment could increase.

• Will focus on “shovel-ready” projects as the Will focus on “shovel-ready” projects as the prioritypriority

• What is the What is the Federal GovernmentFederal Government doing? doing?

• What is What is CDPHCDPH doing?doing?

• What should What should Public Water SystemsPublic Water Systems be doing? be doing?• Identify projects that are "ready to Identify projects that are "ready to

proceed"*proceed"*

What are What are wewe doing? doing?

Possible Stimulus Bill ProvisionsPossible Stimulus Bill Provisions

Recent versions of the Economic Stimulus Recent versions of the Economic Stimulus Bill have contained the following:Bill have contained the following:

• Drinking water funds will be allocated through the Drinking water funds will be allocated through the SDWSRF programSDWSRF program

• The U.S. EPA has until September 30, 2009 to make The U.S. EPA has until September 30, 2009 to make the grant to the statethe grant to the state

• The state shall enter into a loan contract with an The state shall enter into a loan contract with an applicant within 120 days after State receives grant applicant within 120 days after State receives grant

• Current recommendation is to increase this to 180 daysCurrent recommendation is to increase this to 180 days• No State matching funds are required No State matching funds are required

• Therefore no State "labor compliance plan" requiredTherefore no State "labor compliance plan" required

Possible Stimulus Bill ProvisionsPossible Stimulus Bill Provisions• Allows for State administrative costs to Allows for State administrative costs to

implement programimplement program• But CDPH doesn’t have time to create additional But CDPH doesn’t have time to create additional

positionspositions• Allows for principal forgiveness (grants)Allows for principal forgiveness (grants)

• CA SDWSRF max grant $1 million per projectCA SDWSRF max grant $1 million per project• (potential state legislation to increase this)(potential state legislation to increase this)

• Allows for reduction in interest ratesAllows for reduction in interest rates• No CDPH plan to reduce interest ratesNo CDPH plan to reduce interest rates• CA SDWSRF loans: CA SDWSRF loans:

• 0% for disadvantaged communities 0% for disadvantaged communities • <80% of statewide MHI (<$44,670 for 2008)<80% of statewide MHI (<$44,670 for 2008)

• 2.3086% in 2008 for non-disadvantaged communities2.3086% in 2008 for non-disadvantaged communities

Eligible Projects for this FundingEligible Projects for this FundingOnly projects that are “Only projects that are “ready to proceedready to proceed”: ”: • Complete application must be submitted by deadline Complete application must be submitted by deadline

specified by CDPH (September 2009?).specified by CDPH (September 2009?).• Must include final plans and specifications.Must include final plans and specifications.• Must comply with environmental requirements at the Must comply with environmental requirements at the

time of application :time of application : Must be determined to be NEPA excluded Must be determined to be NEPA excluded ANDAND CEQA CEQA

exempt; exempt; OROR All final CEQA documents and filings must be complete, and All final CEQA documents and filings must be complete, and

project must be adopted and approved by the Lead Agency.project must be adopted and approved by the Lead Agency.• Plus, applicant must be able to complete the federal Plus, applicant must be able to complete the federal

requirements of Section 7 of the Endangered Species Act requirements of Section 7 of the Endangered Species Act andand Section 106 of the National Historic Preservation Act within 60 Section 106 of the National Historic Preservation Act within 60 days.days.

Additional Project InformationAdditional Project Information• Funding agreement cannot be issued by Funding agreement cannot be issued by

CDPH and construction cannot begin until CDPH and construction cannot begin until final environmental clearance.final environmental clearance.

• Construction must begin within 60 days of Construction must begin within 60 days of executed funding agreement.executed funding agreement.

• Water system must have adequate Water system must have adequate Technical, Managerial, and Financial Technical, Managerial, and Financial capacity. capacity.

• Our CDPH District Office can provide information Our CDPH District Office can provide information on this requirement. on this requirement.

• Any Proposition 218 requirement for a rate Any Proposition 218 requirement for a rate increase must be met prior to issuance of a increase must be met prior to issuance of a funding agreement by CDPH.funding agreement by CDPH.

SDWSRF Economic RecoverySDWSRF Economic RecoveryFunding ProcessFunding Process

• Applicant submits a pre-application for Applicant submits a pre-application for Economic Recovery Funding (ER$)Economic Recovery Funding (ER$)

• CDPH reviews and ranks ER$ pre-apps CDPH reviews and ranks ER$ pre-apps • CDPH publishes draft Project Priority ListCDPH publishes draft Project Priority List• CDPH invites projects to submit complete CDPH invites projects to submit complete

applicationapplication• CDPH evaluates funding applicationCDPH evaluates funding application• CDPH issues funding agreementCDPH issues funding agreement

SDWSRF ER$ Project Priority ListSDWSRF ER$ Project Priority List

• Only projects that are ready to proceed will Only projects that are ready to proceed will be included. be included.

• Projects ranked into health-based Projects ranked into health-based categoriescategories

Ranking within each category is based on: Ranking within each category is based on: • Median household incomeMedian household income• Consolidation of systemsConsolidation of systems• Population served. Population served.

Funding ApplicationsFunding ApplicationsCDPH invites projects from PPL based on CDPH invites projects from PPL based on

available funding. available funding. • Applicant will have 60 days to submit a completed Applicant will have 60 days to submit a completed

application. application. • There will be There will be no extensionsno extensions to this deadline. to this deadline. • CDPH will process applications in the order receivedCDPH will process applications in the order received• CDPH will continue to process applications until all CDPH will continue to process applications until all

funds have been allocated.funds have been allocated.• CDPH to issue funding agreement within 60 days of CDPH to issue funding agreement within 60 days of

determination of project eligibility and funding determination of project eligibility and funding amount. amount.

• The funding application and required documents will The funding application and required documents will be posted on our website in February.be posted on our website in February.

Upcoming Workshops/EventsUpcoming Workshops/Events

2009 California Financing Coordinating Committee 2009 California Financing Coordinating Committee (CFCC) Funding Fairs(CFCC) Funding Fairs

February 3, 2009February 3, 2009 – Chino – Inland Empire Utilities Agency – Chino – Inland Empire Utilities AgencyFebruary 5, 2009February 5, 2009 – Bakersfield – UC Merced, Bakersfield Center – Bakersfield – UC Merced, Bakersfield CenterMarch 10, 2009March 10, 2009 – Eureka – City of Eureka – Eureka – City of Eureka April 2, 2009April 2, 2009 – Merced – UC Cooperative Extension – Merced – UC Cooperative ExtensionMay 7, 2009May 7, 2009 – Sacramento – Cal Environmental Protection – Sacramento – Cal Environmental Protection

AgencyAgency

For location information, visit the CFCC website: For location information, visit the CFCC website: www.cfcc.ca.govwww.cfcc.ca.gov

Contact/Resources InformationContact/Resources Information

http://www.cdph.ca.gov/services/funding/pages/SRF.aspx• SDWSRF program information:

• 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

• Email to request current program announcements:contact SDWSRF@cdph.ca.gov

QuestionsQuestions