1. October 6, 2004

2. Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 Chapter 3 Water Security Chapter 4 Safe Drinking Water Chapter 5 Clean Water and Water Quality Chapter 6 Contaminant & Salt Removal Technologies Chapter 7 CALFED Bay-Delta Program Chapter 8 Integrated Regional Water Management Program Chapter 9 Colorado River Chapter 10 Coastal Watershed and Wetland Protection

3. Chapter 3: Water Security Department of Health Services Eligible Recipients: State, local and regional public water systems Eligible Projects:  Monitoring and early warning systems  Fencing  Protective structures  Contamination treatment facilities  Emergency interconnections  Communications systems  Projects designed to prevent damage to water treatment, distribution and supply facilities  Prevent disruption to drinking water deliveries  Protect drinking water supplies from intentional contamination

4. Chapter 3: Funding Total Allocation: $50 million; 25% for disadvantaged communities Current Funding Cycle: $12.5 million Min/Max: $50,000 / $10 million Not for routine / required projects (DHS compliance order, permit condition or regulation) Public Workshops: October 6 and 21 at MWD Early 2006: Execution of contracts

5. Chapter 4: Safe Drinking Water Department of Health Services Eligible Recipients: State, local and regional public water systems Total Allocation: $420 million; 25% for disadvantaged communities Current Funding Cycle: $147 million Public Workshop: Oct 6 and 21 at MWD

6. Chapter 4(a) Safe Drinking Water Infrastructure Grants: 5 New Grant Programs  Small community water system monitoring, treatment and distribution facilities  New contaminant removal and treatment technologies  Community water system monitoring facilities  Drinking water source protection  Disinfection byproduct (DBP) treatment facilities  Total Allocation: $70 million; $14 million each program  Current Funding Cycle: $12.5 million Drinking Water State Revolving Fund  $90 million  Continuous until funds exhausted Chapter 4 Funding Programs

7. Chapter 4(b) Southern California Projects to Reduce Colorado River Use  Total Allocation: $261 million  Current Funding Cycle: $39.5 million  Min /Max: $50,000 / $20 Million Projects eligible under Chapter 4(b) are not eligible under Chapter 4(a)

8. Chapter 5:Clean Water and Water Quality State Water Resources Control Board Eligible Recipients: public agencies and non- profit organizations Total Allocation: $93.2 million for 3 programs

9. Chapter 5 Funding Programs Agriculture Water Quality Grant Program  Total Allocation: $35 million (Prop 50 $29.5m; Section 319 $5.5m )  Current Funding Cycle: $9.5 million  Max: $1 million for implementation projects  Applications Due: November 10, 2004  Eligible Projects: Reduce or eliminate nonpoint source pollution discharge to surface water for irrigated agricultural lands

10. Consolidated Watershed NPS Pollution Grants Program  Multiple Funding Cycles  August 2005 - Draft Guidelines August 2005  September 2005 - Pubic Workshops  December 2005 - Guidelines Adopted  May 2006 - Grant Awards  Nonpoint Source Pollution Control  Total Allocation: $30.5 million  Coastal Nonpoint Source Pollution Control  Total Allocation: $33.15 million  Anticipated Eligible Projects  Implement storm water runoff pollution and reduction and prevention programs  diversion of dry weather flows to publicly-owned treatment works for treatment,  acquisition and development of constructed wetlands,  implementation of approved BMPs as required by storm water permits Chapter 5 Funding Programs

11. Chapter 6: Contaminant and Salt Removal Technologies Department of Water Resources (6a) and Department of Health Services (6b and 6c) Eligible Recipients: Public entities Total Allocation: $100 million  6a. Water Desalination: $50 million; $25 million this cycle; PSP October 25, 2004; due January 2005  6b. Contaminant Treatment Removal  6c. Drinking Water Disinfecting Projects:  $50 million for b and c; $12.5 million this cycle; 4 cycles

12. 6(b): Pilot and Demonstration Projects for Contaminant Removal  Projects must address an existing problem in California:  Petroleum products, such as MTBE and BTEX  N-Nitrosodimethylamine (NDMA)  Perchlorate  Radionuclides, such as radon, uranium, and radium  Pesticides and herbicides  Heavy metals, such as arsenic, mercury, and chromium  Pharmaceuticals and endocrine disruptors

13. 6(c):UV and Ozone Treatment  Drinking water disinfecting projects  Projects that address an MCL compliance violation  Recipients must meet technical, managerial, and financial capacity (TFM) requirements  25% set aside for disadvantaged communities

14. Chapter 7: CALFED Bay-Delta Program Funding Programs  Total Allocation: $162 million  Water Recycling Funding Program  Water Use Efficiency Grants Program Eligible Recipients: Public agencies

15. Chapter 7: Water Recycling Program State Water Resources Control Board  Total Allocation and Current Funding Cycle: $42 million Construction Facilities Grants Category I Only 40% to Southern California Disadvantaged Community Preference  Anticipated Application Due: January 30, 2005  Facilities Planning Grants Max: 50% of costs up to $75,000  Studies for using recycled water to offset use of potable water  Construction Facilities Grants Competitive Project List: 6 categories 25% of eligible costs or $5 million

16. Chapter 7: Water Recycling Program Construction Project Priority:  Recycled Water Distribution System  Component of a Regional Distribution System  Local Distribution System  Groundwater Recharge Facilities  Recycled Water Treatment Facilities  Groundwater Reclamation

17. Chapter 7: Water Use Efficiency Program Department of Water Resources  Total Allocation: $120 million  Current Funding Cycle: $34 million Section A Agricultural and Urban Water Use Efficiency Implementation Projects Section B Research and Development; Feasibility Studies, Pilot, or Demonstration Projects; Training, Education or Public Information; Technical Assistance 50/50 Urban and Agriculture projects 75% must be implementation projects No per project limit Labor Code compliance

18. Chapter 7: Water Use Efficiency Program Section A: Agricultural and Urban Water Use Efficiency Implementation Projects  Draft PSP includes IOUs and Mutuals for Section A only until resolved  Cost share based on relative balance of Bay-Delta and local benefits Disadvantaged Communities: No cost share required  Geographic Consideration Southern California, Bay Area, San Joaquin Valley, and Sacramento Valley

19. Chapter 7: Water Use Efficiency Program Section B: Research and Development; Feasibility Studies, Pilot, or Demonstration Projects; Training, Education or Public Information; Technical Assistance  No matching fund requirement Matching fund from non-State sources encouraged

20. Chapter 7 WUE Eligibility Sections A and B  Cities, counties, cities and counties, JPAs, water districts, tribes, and nonprofits Section B Only  Universities and colleges, and state and federal agencies

21. Chapter 7 WUE Schedule Draft Modified 2004 PSP: September 30,2004 Public Comment: October 29, 2004 Proposal Solicitation: late-October 2004 Workshops: December 2004 Anticipated Due Date: January 3, 2004 Recommendations: mid-February 2005 Contract Execution: September 2005

22. WUE Section A: Eligible Projects Agricultural and Urban Water Use Efficiency Implementation Projects a) Urban Best Management Practices b) Agricultural Efficient Water Management Practices c) Other Urban/Ag WUE projects contributing to CALFED objectives d) Urban landscape and CII water use efficiency are encouraged

23. WUE Section B: Eligible Projects Research and Development; Feasibility Studies, Pilot, or Demonstration Projects; Training, Education or Public Information; Technical Assistance  Urban/Ag WUE research and development, feasibility studies, pilot or demonstration projects  Statewide Urban/Ag WUE training, education, or public education programs  Statewide Urban/Ag WUE technical assistance programs

24. Chapter 8: Integrated Regional Water Management Ten funding programs / three agencies Eligible Recipients: state, local and regional public water systems Total Allocation: $526 million Current Funding Cycle: $257.5 million

25. Chapter 8: IRWM Funding Agencies State Water Resources Control Board and Department of Water Resources Integrated Regional Water Management Program $380 million; $160 million current funding cycle Department of Water Resources Local Groundwater Assistance Program $6 million: total and current funding cycle Wildlife Conservation Board Seven Funding Programs $140 million; $91.5 million current funding cycle

26. Chapter 8: Local Groundwater Assistance Program (AB 303) Department of Water Resources  $6 million: total and current cycle  Max Per Project: $250,000  Local public agencies  Eligible Projects: Groundwater Management Plan implementation projects/programs groundwater studies, monitoring and/or management  Workshops: Oct 19 – Sacramento, Oct 20 – San Diego, Oct 22 – Redding, Oct 26 - Bakersfield  Applications Due: December 2, 2004

27. Chapter 8: WCB 7 Funding Programs Wildlife Conservation Board  $140 million; $91.5 million current funding cycle  No min/max; determined per project  Continuous applications  Board meets every three months

28. Chapter 9: Colorado River Reduced Water Use Wildlife Conservation Board  Seven Funding Programs  Total Allocation: $50 million  Current Funding Cycle: $25.7 million  No min/max; determined per project  Continuous applications  Board meets every 3 months

29. Chapter 10: Coastal Watershed and Wetland Protection Wildlife Conservation Board  Seven Funding Programs  Total Allocation: $750 million  Current Funding Cycle: $279.4 million  No min/max; determined per project  Continuous applications  Board meets every 3 months

30. Chapter 8 Integrated Regional Water Management Program Department of Water Resources and State Water Resources Control Board

31. IRWM Program Objectives Promote Integrated Regional Planning Protect communities from drought Achieve multiple benefits and objectives Protect and improve water quality Reduce dependence on imported water = Water Supply and Water Quality

32. IRWM Funding Total Allocation: $380 million Current Funding Cycle: $160 million  Planning Grants - $10 million  Implementation Grants - $150 million Next Funding Cycle: $220 million

33. IRWM Funding Planning Grants  Max: $500,000  Local Match: 50% Implementation Grants  Max: $50 million  Local Match: 10% Disadvantaged Communities  Match waived or reduced  <80% Statewide Average Median Household Income

34. IRWM Eligibility Public Agencies  Local governments  State agencies or departments  Eligible for tech assistance under Clean Water Act Section 319 or for grants under CWA Section 320 Non-profit Organizations  California corporations organized under Sections 501(c)(3),…(4),…or (5) Labor Code Compliance  Awarded grants must ensure compliance Limitations on use of volunteer labor and payment of prevailing wages for work done with grant funds

35. IRWM Submission Requirements Regional Agency or Group  Agency: statutory authority over land-use and water management covering more than one local public agency boundary  Group: At least 3 public agencies, two with statutory authority over water supply and participate by agreement Urban Water Management Plan Groundwater Management Plan Compliance Consistency with Adopted IRWM Plan  Formally accepted by governing bodies of the participating entities and have responsibility for implementation  Meet standards set forth in Appendix A of Guidelines Include range and integration of water management strategies Stakeholder involvement and coordination of state and federal agencies  Waiver if developing IRWM Plan, adopted by 1/1/07, and projects fit into Plan objectives in Draft

36. IRWM Program Preferences Six Program Preferences 1. Multiple benefits 2. Local and regional water supply reliability 3. Long-term attainment/maintenance of water quality standards 4. Eliminate/reduce pollution in impaired waters and sensitive habitat areas, including coastal watersheds that influence water quality in areas of special biological significance 5. Safe drinking water/water quality projects that serve disadvantaged communities 6. Groundwater management/recharge projects located: 1) in San Bernardino or Riverside counties; 2) outside MWD service area; and 3) within one mile of established residential/commercial development

37. IRWM Statewide Priorities Eight Statewide Priorities 1. Reduce conflict between water users and resolve water rights disputes 2. Implement TMDLs; 3. Implement RWQCB Watershed Management; Initiative Chapters, Plans, and Policies 4. Implement SWRCB Non-Point Source Program Plan 5. Meet Delta Water Quality Objectives 6. Implement various task force recommendations 7. Address environmental justice concerns 8. Assist CALFED program goals

38. IRWM Planning Grant: Eligible Projects New IRWM Plans Complete or modify IRWM Plans in progress Develop Integrated Coastal Watershed Management Plans

39. IRWM Implementation Grant: Eligible Projects Contain at least one element listed:  Water supply reliability, water conservation, water use efficiency  Storm water capture, storage, treatment, management  Removal of invasive non-native plants, creation/enhancement of wetlands, and the acquisition, protection, and restoration of open space and watershed lands  Non-point source pollution reduction, management, monitoring  Groundwater recharge and management  Contaminant and salt removal  Water banking, exchange, reclamation, and water quality  Multipurpose flood control programs  Watershed management  New drinking water treatment and distribution methods On-stream/Off-stream surface water storage facilities not eligible

40. Anticipated Schedule Approval of Final Guidelines: November 2004 Issue Planning & Step 1 PSP: December 2004 Planning Applications Due: February 2005  Planning Grant Awards: July 2005 Step 1 Applications Due: March 2005 Announce Step 2 Call Back List: June 2005 Step 2 Applications Due: September 2005  Implementation Grant Awards: December 2005

41. Integrated Regional Water Management Grant Program Benefits of collaboration Examples from other areas Next steps