ITEM: 13

SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO APPLY FOR AND ACCEPT FISCAL YEAR (FY) 1999-00 CLEAN WATER ACT SECTION 106 AND SECTION 104(B)(3) WATER POLLUTION CONTROL PROGRAM GRANTS, PLUS ANY CARRY-OVER FY 1998-99 GRANT FUNDS, AND TO NEGOTIATE, APPROVE, AND/OR AMEND THE GRANTS AND THE WORKPLANS

DISCUSSION:  Section 106 of the Clean Water Act (CWA) authorizes the appropriation of monies for Federal grants to assist states in administering programs for the prevention, reduction, and elimination of pollution. The State Water Resources Control Board (SWRCB) annually files an application and develops workplans with the U.S. Environmental Protection Agency (USEPA) for a continuing annual grant under CWA Section 106 to support the National Pollutant Discharge Elimination System (NPDES) Program and Total Maximum Daily Load (TMDL) work.
Section 104 of the CWA authorizes the appropriation of monies for Federal grants to assist states with specific water pollution control projects. SWRCB annually files an application and develops a workplan with USEPA for a grant under CWA Section 104 for specific water pollution control projects.
For FY 1999-00, USEPA has indicated that it is willing to provide up to $623,253 in CWA Section 104 grant funds, plus carry-over funds from FY 1998-99, projected as $750,000, totaling $1,373,253; and up to $6,334,878 in CWA Section 106 grant funds, plus carry-over funds from FY 1998-99, projected as $600,000, totaling $6,934,878.
For FY 1999-00, $4,883,131 of CWA Section 106 funds will be allocated to the NPDES wastewater regulatory program, $500,000 will be allocated to the NPDES storm water regulatory program, and $951,747 will be allocated for TMDL development work, as agreed upon with USEPA. Of the projected $600,000 in carry-over FY 1998-99 CWA Section 106 funds, $60,000 will be allocated to the NPDES wastewater program and $540,000 to completion of TMDL work begun in FY 1998-99.
For FY 1999-00, $548,253 of the new CWA Section 104(b)(3) funds will be allocated to TMDL work and $75,000 will be allocated to continuation of the Leviathan Mine remediation project in Region 6. Of the projected $750,000 in carry-over FY 1998-99 CWA Section 104(b)(3) funds, approximately $625,000 will be allocated to completion of TMDL work begun in FY 1998-99 and $125,000 will be allocated to completion of other special projects begun in FY 1998-99.
The exact amount of carry-over CWA Section 106 funds will not be ascertainable until a final Financial Status Report (FSR) is prepared in September 1999. For carry-over CWA Section 104(b)(3) funds, the FSR will be available in January 2000.

POLICY ISSUE:  Should the SWRCB authorize the Executive Director or his designee to apply for and accept two FY 1999-00 grants as follows and to negotiate, approve, and/or amend these grants and the workplans with USEPA: a CWA Section 106 Grant in an amount not to exceed $6,334,878 and a CWA Section 104(b)(3) Grant in an amount not to exceed $623,253, plus any carry-over FY 1998-99 funds?

FISCAL IMPACT:  The FY 1999-00 baseline budget includes authority of $4,714,006 for CWA Section 106 Grant funds. Additional Federal fund authority for this grant will be required and may be available elsewhere in the budget. If unexpended FY 1998-99 grant funds are carried over to the FY 1999-00 grant, SWRCB will be advised and the FY 1999-00 grant amended accordingly.
The FY 1999-00 baseline budget includes authority of $1,125,673 for CWA Section 104(b)(3) Grant funds. Additional Federal fund authority for this grant will be required and may be available elsewhere in the budget. If unexpended FY 1998-99 grant funds are carried over to the FY 1999-00 grant, SWRCB will be advised and the FY 1999-00 grant amended accordingly.
If required, a Section 28 request would be prepared by the Division of Water Quality to obtain any additional Federal expenditure authority required for these two grants.

RWQCB IMPACT: Yes. All RWQCBs and SWRCB Division of Water Quality and Office of the Chief Counsel.

STAFF RECOMMENDATION:  That the SWRCB authorize the Executive Director or his designee to apply for and accept two FY 1999-00 grants as follows and to negotiate, approve, and/or amend these grants and workplans with USEPA: a CWA Section 106 Grant in an amount not to exceed $6,334,878 and a CWA Section 104(b)(3) Grant in an amount not to exceed $623,253, plus any carry-over FY 1998-99 funds.

WHEREAS:
1.  The U.S. Environmental Protection Agency (USEPA), Region 9, has indicated that the FY 1999-00 Clean Water Act (CWA) Section 106 Water Pollution Control Program Grant for California will not exceed $6,334,878, plus any carry-over FY 1998-99 funds, and that the FY 1999-00 CWA Section 104(b)(3) Grant for California will not exceed $623,000, plus any carry-over FY 1998-99 funds.

2.  The CWA Section 106 Grant assists the State Water Resources Control Board (SWRCB) in funding the National Pollutant Discharge Elimination System Program for regulation of surface water discharges to prevent and abate water pollution and in funding Total Maximum Daily Load (TMDL) development work.

3.  The CWA Section 104(b)(3) Grant assists the SWRCB in funding specific projects related to implementation of its Watershed Management Initiative and in funding TMDL work.

4.  The SWRCB and the nine Regional Water Quality Control Boards are integrating various program activities under the Watershed Management Initiative in FY 1999-00 in order to adequately address the highest priority water pollution problems in California.

THEREFORE BE IT RESOLVED THAT:
The SWRCB authorizes the Executive Director or his designee to apply for and accept two FY 1999-00 grants as follows and to negotiate, approve, and/or amend these grants and workplans with USEPA: a CWA Section 106 Grant in an amount not to exceed $6,334,878 and a CWA Section 104(b)(3) Grant in an amount not to exceed $623,253, plus any carry-over FY 1998-99 funds.