WHEREAS:

1. The Division of Clean Water Programs (Division) has developed the SFY 1998/99 SRF Loan Program Priority List based on Regional Water Quality Control Board and public input consistent with the Federal Clean Water Act;

2. The availability of funds under the SRF Loan Program and the interest expressed for developing and implementing wastewater treatment and water recycling, nonpoint source and storm drainage pollution correction, and estuary enhancement programs and projects support funding Priority Classes A through D in SFY 1998/99;

3. It is expected that the federal appropriations bill for Federal Fiscal Year (FFY) 1999 will allow the states to fund major sewer system rehabilitation (Needs Category IIIB), new collection system (Needs Category IVA), and combined sewer overflow projects (Needs Category V) projects without limitation;

4. The SWRCB has historically deferred funding for major sewer system rehabilitation (Needs Category IIIB);

5. Because there is a shortage of funds to assist all projects likely to request loans, the Division proposes that a $10 million cap be set for SFY 1998/99; and

6. Up to four percent of the FFY 1999 federal Capitalization Grant is available for state administration.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves the placement of Priority Classes A through D on the fundable portion of the SFY 1998/99 Priority List;

2. Approves funding in SFY 1998/99 for new collection system and combined sewer overflow projects and directs that funding for major sewer rehabilitation projects be deferred and the projects placed on the unscheduled portion of the SFY 1998/99 list;

3. Approves a $10 million funding cap on the amount of loan assistance per agency for SFY 1998/99;

4. Approves the set-aside of four percent of the FFY 1998 Capitalization Grant amount for SRF Loan Program administration; and

5. Adopts the Final SFY 1998/99 SRF Loan Program Project Priority List.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on June 18 1998.

/s/

Maureen Marché

Administrative Assistant to the Board

For a copy of the Priority List contact: Eric Torguson at (916) 227-4449