Water Quality Program

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• Water Quality Program
• Financial Assistance
• IACC 2006

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Introduction

• Todays Speakers
• Cindy Price, WQ Program [phone]
• Sarah Davenport-Smith [phone]
• David Dunn [phone]
• Important Contacts
• Steve Carley, WQ Program Section Manager (360)
  407-6572
• Jeff Nejedly Unit Supervisor [phone]
• Water Quality Program Web Address http//www.ecy
  .wa.gov/programs/wq/wqhome.html

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Session Goals

• Brief update on FY 2008 Funding Cycle
• Update on The Current Rule Amendment Process
• Brief Discussion on Facilities Project Technical
  Prerequisites

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FY 2008 Application Cycle

• Closed on October 31, 2006, at 500 p. m.
• Next steps?

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Funding List Development Process
FY 2008 Annual Water Quality Funding Cycle
Process Steps
Agreement Development
July 2007 - June 2008
Final Offer List and Funding Letters
June 2007
Draft Offer List (Starts 30-day Public Comment
Period)
May 2007
Legislature Appropriates Funds
Preliminary Priority List (to Legislature prior
tobudget development)
Jan 2007
Statement of Agreed Priority Due December 14,
2006
Application Ratingand Ranking
Nov Dec 2006
Funding Application Submittal
Sept 1 Oct 31, 2006
Estimated Date
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Estimated Funding For FY 2008 and FY 2009
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2007-09 Biennial Budget Estimated Funding
Summary

• a. Based on the FY 2007 Supplemental Budget
• b. Based on FFY 2007 Presidential Budget
• Based on FFY 2007 Presidential Budget and
  Legislative Appropriation

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Looking Ahead to Funding Cycle FY 2009

• Application Funding Cycle for FY 2009 opens on
  September 1, 2007.
• Other things to watch for in FY 2009 major rule
  amendment implementation.

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Ongoing Rule Amendment Initiative

• Rule scheduled to become effective for FY 2009

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Amendment Recommendations to theFinancial
Assistance Regulations Chapter 173.95A WAC
Uses and Limitations of Centennial Clean Water
FundsChapter 173.98 WACUses and Limitations of
the Water Pollution Control Revolving Fund
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Major Categories to Review, Update, or Revise

• Identified through internal external review
• Fund Structure
• Allocation of Funds
• General Eligibility
• Engineering Initiatives
• General Housekeeping

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Major Categories
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Our efforts to date

• 4 initial public comment meetings
• 1 Alternative Contracting public comment meeting
• 8 multi-regional internal rule development
  workgroup meetings
• 2 Financial Advisory Council (FAC) meetings
• 3 FAC rule sub-committee meetings
• 3 PMT meetings

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• 1. Fund Structure

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A. SRF Interest Rates Perpetuity
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B. Hardship Provisions
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Loan Only Hardship Provisions
(Interest rates as a of Market Rate for Tax
Exempt Municipal Bonds)
0 20 (MR) 40 (MR)
60 (MR) MR
5.0 and above Between 3.0 -5. 0 Between
2.0-3.0 2.0 and below N/A
(Sewer User Fee as a percentage of Median
Household Income (MHI)
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For Example

• Loans (assuming that the Market Rate is
  5) If the applicant meets the following
  criteria
• Population is less than 25k, and
• Demonstrates a financial need (sewer user rates
  for the proposed project are between 3 and 5
  percent of Median Household Income)
• The following outcome may apply
• The applicant may be eligible for a 1 Loan
  (which also represents 20 percent of Market Rate)

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Grant Only Hardship Provisions
(Grant eligibility is based on existing need and
a 5 million cap)
5.0 and above Between 3.0 -5. 0 Between
2.0-3.0 2.0 and below N/A
(Sewer User Fee as a percentage of
Median Household Income (MHI))
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For Example

• Grants If the applicant meets the following
  criteria
• Population is less than 25k, and
• Demonstrates a financial need (sewer user rates
  for the proposed project are between 3 and 5
  percent of Median Household Income)
• The following outcome may apply
• The applicant may be eligible for a 75 grant for
  existing residential need (not to exceed 5M).

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C. Timely Use of Funds
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• 2. Allocation of Funds

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D. Allocation of Competitive Centennial Grants
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E (1). Centennial Grant Ceiling Amount
(facilities construction hardship grants)
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E (2). Centennial Ceiling Grant Amount
(activities grants)
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F. Percent of Grants and Grant Matching
Requirements
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• 3. General Eligibility

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G. Application Evaluation Criteria
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H. Funding List Cutoff
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I. BMPs on Private Property
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J. Upland BMPs as In-Kind Match
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• 4. Engineering Initiatives

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K. Alternative Contracting
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M. Step 4, Design/Construct
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N. Stormwater Activities Facilities
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O. Water Reclamation Facilities
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P. Value Engineering
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Additional Facilities Technical Prerequisite

• Technical Requirements
• Approved Plans by Application Deadline
• Facility Plan for Design Loan
• Design/Specifications for Construction Loan
• State Environmental Review Process (SERP)
• Performed in Conjunction with Facilities Planning
• Requires Active Consultation with Agencies to
  Identify Environmental Impacts
• Increased focus on Governors Executive order
  05-05cultural resources review.

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5. General Housekeeping

• Q. Clarifications on Existing Language
• Inconsistencies exist within the rule and between
  the guidelines. The task is removing the
  inconsistencies and clarifying the rule.

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• Thank You

We will be available after the presentation and
during the conference to answer more questions.