ITEM: 1

SUBJECT: HEARING ON PROPOSED FEDERAL FISCAL YEAR 1998 STATE REVOLVING FUND LOAN PROGRAM PROJECT PRIORITY LIST

DISCUSSION: Refer to the hearing notice -- see below

It is estimated that about $1.0 billion will be appropriated nationally for FFY 1998 (October 1, 1997 to September 30, 1998) for SRF loans. These monies can be used for construction of wastewater treatment and water reclamation facilities, correction of nonpoint source and stormwater pollution problems, and implementation of estuary enhancement activities. California can expect to have about $148 million available for FFY 1998. The adopted FFY 1998 Project Priority List will be used to determine the projects that can compete for loan assistance in FFY 1998.

This announcement is to inform interested and affected parties of the scheduled Public Hearing to discuss approval of the draft FFY 1998 Project Priority List.

The Division of Clean Water Programs (Division) has developed a draft FFY 1998 Project Priority List. Attachment A is a copy of the draft list which reflects current comments and recommendations from the Regional Water Quality Control Boards and the State Water Resources Control Board (SWRCB) staff. Due to lack of complete submittals, some Regional Board FFY 1998 recommendations have not yet been incorporated in the list. In these Regions, FFY 1997 projects have been carried forward. The staff recommendations for these Regions should be available at the Public Hearing.

Projects must appear on the Priority List to qualify for loan assistance. Though projects may be identified on the fundable portion of the Priority List, appearance on the list is not a commitment to provide loan assistance.

Projects that fail to meet scheduled dates may be bypassed in favor of lower ranked projects that are ready to proceed to construction.

ISSUE 1: Should a cap on the loan amount per agency be imposed for FFY 1998?

RECOMMENDATION: The SWRCB, on January 23, 1997, adopted new procedures for making preliminary loan commitments and also raised the cap on the amount of loan assistance per agency to $50 million per year. It is proposed to continue the funding cap at $50 million for FFY 1998.

ISSUE 2: Should the SWRCB set aside SRF loan funds in FFY 1998 for major sewer rehabilitation?

RECOMMENDATION: Major sewer rehabilitation activities may be funded from the regular allotment. Since the current Priority List contains over $4 billion in projects for funding already scheduled for FFY 1998, the staff proposes that the SWRCB not fund major sewer rehabilitation projects in FFY 1998.

ISSUE 3: Should the SWRCB adopt the FFY 1998 SRF Loan Program Project Priority List?

RECOMMENDATION: The staff recommends approval of the FFY 1998 SRF Loan Program Project Priority List.

You may submit written comments and/or give oral statements. Written comments should be submitted as early as possible to allow for thorough staff analysis. All comments are due by 5:00 p.m. on August 6, 1997 and should be directed to Mr. Eric Torguson, Chief of the Management Support Section, Division of Clean Water Programs, P.O. Box 944212, Sacramento, California 94244-2120

Public parking is available in the State Garage on Tenth Street between "O" and "P" Streets, in metered spaces on area streets, and the State Garage at 1517 Eleventh Street. The Bonderson Building First-Floor Hearing Room is accessible to persons with disabilities.

1. SWRCB Workshop, September 3, 1997, commencing at 9:00 a.m. (Hearing Room, First Floor, 901 P Street).

2. SWRCB Meeting, September 18, 1997, commencing at 9:00 a.m. (Hearing Room, First Floor, 901 P Street).

3. Environmental Protection Agency (EPA) approval of the FFY 1997 SRF Loan Program Priority List by November 1, 1997.

Gus Atkins, Division of Clean Water Programs (916) 227-4475.

_______________________________________

Maureen Marché

Administrative Assistant to the Board

Dated: June 20, 1997

Note: For a copy of the Draft priority list contact Gus Atkins (see above)