Funding Application Workshop

for

State Fiscal Year 2014

(SFY 2014)

Water Quality Program

1

Welcome! Facility basics

Introduce Ecology FMS staff

Introduce Ecology regional staff

Our audience

2

Today’s Schedule 9:00 Program Overview 10:00 Break 10:15 Breakout Sessions –

Project eligibility

Environmental review & cultural resources

Application prerequisites

Guidance for your application

12:00 Adjourn(but we’ll stay around to answer questions

until our blood sugar crashes) 3

This Morning’s Topics

Overview of funding programs and eligible projects

State Fiscal Year 2014 (SFY14) funding cycle

Estimated funding available

Application process

4

Overview of Funding Programs and Eligible

Projects

5

Ecology WQ Funding

Sources

Water Pollution Control Revolving Fund (Revolving Fund)

Centennial Clean Water Program (Centennial)

Clean Water Act Section 319 Program (Section 319)

6

Integrated Funding Program

7

Revolving Fund Program~$80 million per yearFederal loan program Now with forgivable principalFunded through:

Federal capitalization grants 20% State grant match Repaid principal and interest De-obligated (unused) funds from prior years

Funds a variety of facilities and activities projects 8

Revolving Fund Program

SFY 2014 Loan Interest Rate

Based on a percent of tax-exempt municipal bonds:

Twenty-year loan: 2.3% (60% of MR)

Five-year loan: 1.1% (30% of MR)

MR = Market Rate for tax-exempt municipal bonds9

Centennial Program

~$10-15 million per year

State grant program

Funded through the State Building Construction Account or State Toxics Account

Funds a variety of facilities and activities projects

10

Section 319 Program

~$1.5 - $2.0 million per year

Funded through federal grant

Funds a variety of nonpoint source activities projects

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Types of Projects Funded

Wastewater Facility Projects Nonpoint Source Activity Projects

(including NP stormwater projects)

On-site Septic System Projects Stormwater Facility Projects Plus:

Green Project Reserve (GPR)

Hardship

Pre-Construction set aside12

Facilities Project - Definition

A facility is a domestic wastewater or stormwater system, including: Control Collection Storage Treatment Disposal Recycling

Or any project required by an NPDES permit

13

Nonpoint Source Activities Project –Definition

An action to: Control Nonpoint Sources of Water Pollution

that impact Surface and Ground Water Protect and restore the water quality of:

Streams

Lakes

Estuary

Marine waters

Groundwater

Wetlands

14

Eligible Wastewater Facilities Projects

(SRF Loan and Hardship) Wastewater Planning:

Comprehensive sewer planning Site-specific planning Environmental review Value engineering Feasibility studies

Design Facility Construction:

Treatment plant upgrades or expansion Collection sewers and pump stations Infiltration and inflow correction Combined sewer overflow abatement Large on-site systems (LOSS) New systems

15

Eligible Nonpoint Source Activities Projects

(Centennial & 319 Grant)

Implementation of approved BMPs

Public outreach and education

Lake/riparian/wetland restoration

Groundwater/aquifer/wellhead protection

Total Maximum Daily Load (TMDL) support projects

Watershed planning

Water quality monitoring

Stormwater planning and outreach in non-permitted communities

16

Eligible On-site Sewage System Projects

(SRF Loan and Centennial)

Planning, surveys, and public education and outreach

Local loan programs for repair and replacement of residential or small commercial systems

17

Eligible Stormwater Facility Projects(SRF Loan)

Planning, design, and construction of Stormwater Infrastructure

Implementation of low impact development (LID) techniques

Any other work required by a stormwater NPDES permit

18

Water Quality Program Goals

Agency water quality goals guide the programs and eligibility

To prevent and clean up water pollution

To help communities make sustainable choices that reduce and prevent water quality problems

To provide water quality partners with technical and financial assistance 19

Reserved Funding Ecology reserves funding to ensure that

certain types of projects will receive funding 33% of Centennial is reserved for Nonpoint

Activities Projects 33% of Centennial is reserved for Construction of

Facility Projects in Hardship communities 20% of the SRF fund is reserved for Non-Point

Activity Projects 5% of the SRF fund is reserved for Pre-

Construction Projects An amount equal to 10% of federal capitalization

grant is reserved for Green Projects20

Hardship ConsiderationWastewater Treatment Plant Construction For financially distressed communities <25,000 people Based on Impact to Ratepayer

User fee >2% of MHI

For existing residential need only Standard loan for rest of project

Hardship subsidy (grant/forgivable principal) depends on level of hardship and percentage of existing residential need 21

Hardship Consideration

On-site Sewage System Projects

For local loan repair and replacement program

A combination of grants and loans

The final interest rate will be reduced if loans are made to land owners with incomes below the MHI

22

Pre-Construction Wastewater and Stormwater infrastructure

planning and design projects Comprehensive sewer planning Feasibility studies Site-specific facility planning Environmental review Value engineering Pre-design reports Design

Reserved for applicants with a population less than 25,000 and a MHI below the statewide MHI

Applicants with MHI below 80% of the statewide MHI are eligible for up to 50% principal forgiveness 23

Green Project Reserve (GPR)

EPA defines Green Projects as practices that: Compliment hard or gray infrastructure

with soft-path technologies

Reduce the environmental footprint of water treatment, collection, & distribution

Help utilities adapt to climate change

Enhance water and energy conservation

Adopt more sustainable solutions to wet weather flows

Promote innovative approaches to water management problems 24

GPR Eligibility

Must be a Revolving Fund eligible project Can stand alone or part of a larger project Must meet the EPA criteria for one of the

GPR subcategories: Green Infrastructure

Energy Efficiency

Water Efficiency

Environmentally Innovative

GPR elements are eligible for up to 25% principle forgiveness

25

State Fiscal Year 2014 (SFY14) Funding Cycle

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SFY 2014

Applications accepted Sept. 1 - November 2, 2012

Runs from July 1, 2013 to June 30, 2014

Funding cycle is based on State Legislature funding for the 2013-2015 biennium (April 2013)

27

SFY 2014 Water Quality Funding Cycle

28

Funding Levels for SFY 2014

Funding levels presented are estimated and subject to change

All funding is subject to State Legislative appropriations for the 2013-15 Biennial Budget

Federal funding subject to acts of Congress

29

SFY14 Estimated Funding

Fund SourceFund SourceFunding

Cycle SFY FY 20132013

Funding Cycle SFY FY

20142014

Centennial Fund (Grants & Loans)

$12 million* $12 million*

Section 319 Fund (Grants Only)

$1.8 million** $1.5 million**

Revolving Fund (Loans w/possible forgivable principal)

$74 million**$125

million***Based on past 2011-13 Biennial Budget appropriations. ** Based on past (FFY12) Congressional Budget and 2011-13 WA Biennial Budget appropriations. 30

Estimated Fund Allocations

SFY2014SFY2014Centennial ---------- Spokane Extended Payment GrantSpokane Extended Payment Grant $5.00 M$5.00 M Competitive Centennial Competitive Centennial $7.00 M$7.00 M

Hardship FacilitiesHardship Facilities $$2.33 M2.33 MNonpoint Source ActivitiesNonpoint Source Activities $2.33 M$2.33 MCompetitiveCompetitive $2.33 M$2.33 M

Revolving Fund ----------- Competitive Revolving Fund LoansCompetitive Revolving Fund Loans $125.00 M$125.00 M

75% to Facility Loans 75% to Facility Loans $93.75 M$93.75 M5% to Preconstruction Loans 5% to Preconstruction Loans $6.25 M$6.25 M20% to Nonpoint Activity Loans20% to Nonpoint Activity Loans $25.00 M$25.00 M

Green Project Reserves (Facility or Activity)Green Project Reserves (Facility or Activity)$2.40 M$2.40 M

Section 319 ----------- Nonpoint Source Activities GrantsNonpoint Source Activities Grants $$ 1.5 M 1.5 M

31

Funding Ceiling Amounts

SRF Loans 50% of the funding in any loan category per applicant

No more than 20% of Pre-Construction

Facility Hardship Subsidy $5 M per project

Centennial/319 Activity Grants $250,000 per project with 25% match (cash plus in-

kind)

Maximum $500,000 with 25% match (cash)

32

Application Process

33

General Application Tips Please do not use binders

One application per project

Have a well defined PROJECT

Keep answers to 1 page of text.

Technical Q/A review and a plain-talk review

WORK WITH ECOLOGY’S REGIONAL OFFICE STAFF

34

Application Writing Workshop

Washington Stormwater Center and WSU Puyallup Research Extension

Training available for: Phase II Municipal Stormwater Permittees Small Communities

4 Locations statewide Spokane: Friday, September 21, 2012 Ellensburg: Tuesday, September 25th, 2012 Everett: Thursday, September 27th, 2012 Olympia: Friday, September 28th, 2012

35

Who is Eligible to Apply?

Local Governments

Federally Recognized Tribes

Special Purpose Districts

Non-profits (Section 319 only)

36

Application Prerequisites

Puget Sound Watersheds

WRIAs 1-19

Applications for funding in the Puget Sound watershed must be consistent with the Puget Sound Partnership’s Action Agenda

37

Questions?

Funding Programs

Application Cycle

38

Next……Breakout Sessions

39