ITEM 10: WATER RECYCLING FACILITIES PLANNING GRANT PROGRAM, APPROVAL OF GRANT FOR FACILITIES PLANNING STUDY FOR INLAND EMPIRE UTILITIES AGENCY, CHINO GROUNDWATER BASIN RECYCLED WATER GROUNDWATER RECHARGE PROJECT

DISCUSSION: The Safe, Clean, Reliable Water Supply Act (1996 Bond Law) established the Water Recycling Subaccount and provided $60 million for low-interest loans for design and construction of water recycling projects and for grants for facilities planning of recycling projects.

On April 17, 1997, the State Water Resources Control Board (SWRCB) approved the Water Recycling Funding Guidelines (WRF Guidelines) governing the Water Recycling Loan Program and the Water Recycling Facilities Planning Grant Program (FPGP). Planning grants are authorized to cover 50 percent of eligible costs up to a maximum of $75,000.

The Inland Empire Utilities Agency (IEUA, formerly Chino Basin Municipal Water District) has applied for an FPGP grant for the Chino Basin Recycled Water Groundwater Recharge Project facilities planning study. The estimated eligible cost of the study is $200,000 and the grant requested is $75,000. The study will investigate the use of recycled water for groundwater recharge at various sites in the northern half of IEUA.

The WRF Guidelines provide that costs for planning are not eligible for a grant unless incurred after the date of execution of the grant contract. The applicant desires to commence this study as soon as possible. The Division of Clean Water Programs staff has concluded that costs should be eligible if incurred after SWRCB approval of the grant commitment. This would allow an agency to begin work about two months earlier. A change in the WRF Guidelines will be requested the next time that the WRF Guidelines are brought before the SWRCB for revision. In the meantime, the Division is requesting that the SWRCB approve funding for the costs incurred after SWRCB approval of the grant commitment for this project.

POLICY ISSUE: Should the SWRCB approve FPGP grant funding in the amount of $75,000 for the Inland Empire Utilities Agency Chino Groundwater Basin Recycled Water Groundwater Recharge facilities planning study? Should the SWRCB approve funding for costs incurred after approval of the grant commitment?

RWQCB IMPACT: Santa Ana Regional Water Quality Control Board.

FISCAL IMPACT: A total of $49.3 million is available for water recycling loans or facilities planning grants. The SWRCB's approval of the $75,000 grant will leave a balance of $49.2 million.

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving the $75,000 FPGP grant to the Inland Empire Utilities Agency for the subject study and authorizing eligibility for costs incurred after approval of the grant commitment.

DRAFT December 28, 1998

WHEREAS:

1. The Safe, Clean Reliable Water Supply Act (1996 Bond Law) established the Water Recycling Subaccount and provided $60 million for low interest loans for the design and construction of water recycling projects and for planning grants;

2. The State Water Resources Control Board established the Water Recycling Facilities Planning Grant Program (FPGP) by adoption of the Water Recycling Funding Guidelines (WRF Guidelines) on April 17, 1997, which implemented provisions of the 1996 Bond Law as well as other bond laws;

3. A grant application was submitted by the Inland Empire Utilities Agency (IEUA) requesting funding for the Chino Groundwater Basin Recycled Water Groundwater Recharge Project facilities planning study;

4. The Office of Water Recycling staff has reviewed the application, Plan of Study, and other supporting information for the facilities planning study and has determined that the submitted documents comply with the WRF Guidelines; and

5. The WRF Guidelines provide that eligible costs are costs incurred after execution of the grant contract, IEUA has asked to commence the study as soon as possible, and the Office of Water Recycling staff has concluded that it is desirable to allow costs incurred after approval of the grant commitment to be eligible.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves a FPGP grant of 50 percent of the eligible costs but not to exceed $75,000 to the Inland Empire Utilities Agency for the Chino Groundwater Basin Recycled Water Groundwater Recharge Project facilities planning study;

2. Approves a condition requiring submittal of the final facilities planning report by March 1, 2000. The Office of Water Recycling may approve up to a 12-month extension for good cause; and

3. Approves funding for costs incurred after January 21, 1999.

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 January 21, 1999.

______________________________

Maureen Marché

Administrative Assistant to the Board