Washington State Infrastructure Financing Jim Skalski Financial Services Manager – Water Resources Program & Office of Columbia River March 19, 2019

Strategic Priorities Protect and restore Puget Sound Prevent and reduce toxic threats Deliver integrated water solutions Reduce and prepare for climate change

Ten Environmental Programs Air Quality Environmental Assessment Hazardous Waste and Toxics Reduction Nuclear Waste Shorelands and Environmental Assistance Solid Waste Spill Prevention, Preparedness and Response Toxics Cleanup Water Quality (WQP) Water Resources (WRP) Two environmental offices Office of Columbia River (OCB) Office of Chehalis Basin (OCR) Ten Environmental Programs

Washington State Infrastructure Financing Ecology Programs Water Quality Program Water Resources Program Office of Columbia River Office of Chehalis Basin WRP & OCR Funding Programs Columbia Basin Water Supply Yakima Basin Integrated Plan Streamflow Restoration Program Irrigation Efficiencies Program Watershed Flow Enhancement

Water Quality Program Accounts Capital Fund Sources Amount % Uses Water Pollution Control Revolving – State (727) $245,302,636  59% State funds for loans for constructing or replacing water pollution control facilities, nonpoint source control activities, and estuary management. State Building Construction (057) $80,863,581 19% New appropriations and re-appropriations for the Centennial Clean Water Program provide grants for water pollution control facilities and nonpoint source control. New appropriations provide grants for the Stormwater Financial Assistance Program. Water Pollution Control Revolving – Federal (727) $50,400,000 12% Federal funds for loans for constructing or replacing water pollution control facilities, nonpoint source control activities, and estuary management. Local Toxics Control (174) $24,561,908 6% Grants for statewide stormwater projects to local governments for plan, design, and construct stormwater retrofit or low-impact development projects. Environmental Legacy Stewardship (19G) $14,143,915 3% Funding for long-term competitive stormwater projects (statewide). State Toxics Control (173) $2,614,124 1% Re-appropriations for the Centennial Clean Water Program provide grants for water pollution control facilities and nonpoint source control. Capital Budget Total $417,886,164 100%

WRP & OCR Accounts Capital Fund Sources Amount % Uses State Building Construction (057) $76,981,662 67% New appropriations and re-appropriations for installation of water measuring devices, on-farm irrigation efficiencies, water conveyance improvements or equipment replacement, water storage investigations, water acquisition, watershed councils, agriculture water supply, Comprehensive Irrigation District Management Plans, Columbia River feasibility studies and implementation, Sunnyside Valley Irrigation District conservation projects, and the Yakima River Basin Water Storage Feasibility Study. Columbia River Basin Water Supply Development (10P) $22,441,650 20% Capital new appropriations and re-appropriations support grants for feasibility studies and construction of storage and water conservation projects, along with purchase or leases of water rights. State Taxable Building Construction (355) $4,526,038 4% Capital new appropriations to support grants and feasibility studies and construction of storage and water conservation projects, along with purchase or leases of water rights supporting implementation of the Yakima Integrated Plan. Columbia River Basin Water Supply Revenue Recovery (296) $4,081,929 Capital new appropriations to support grants and feasibility studies and construction of storage and water conservation projects, along with purchase or leases of water rights. Watershed Restoration & Enhancement Bond (366) $3,442,898 3% Capital new appropriations to support grants that assess, plan and develop projects that include acquiring senior water rights, water conservation, water reuse, stream gaging, groundwater monitoring, and developing natural and constructed infrastructure designed to provide access to new water supplies. State Drought Preparedness (05W) $1,696,040 1% Capital new appropriations to provide grants and the purchase or lease of water rights to mitigate impacts to statewide agricultural, municipal, and environmental (fishery) sectors suffering from drought conditions. Columbia River Basin Taxable Bond Water Supply Development (18B) $1,016,162 <1%   State & Local Improvements Revolving – Water Supply Facilities (Referendum 38) (072) $294,784 Grants and loans for agricultural water supply facilities. Grants for on-farm water use efficiency improvements, water conveyance improvements, and storage studies. Capital Budget Total $114,481,163 100%

State Infrastructure Financing Does your state have a special water project funding account(s) or program(s)? Please name? What funding alternatives has the state considered or tried? Is the state’s funding mechanism tied to the state’s water plan? What types of water infrastructure projects receive the highest priority for state funds, and how are they weighed? Are funds used solely for state projects (and local subdivisions of the state), or are they used to cost-share projects with federal, tribal, or private funding, i.e., public private partnerships (P3s)? What lessons have you learned since structuring and implementing your state’s funding account(s) or program(s)? What recommendations would you make to another state seeking to structure and implement a new funding account or program to meet a significant backlog of water infrastructure needs?

Estimated $32.7 billion need ECONOMIC ANALYSIS OF WATER INFRASTRUCTURE AND FISHERIES HABITAT RESTORATION NEEDS 2017 Report Estimated $32.7 billion need https://ofm.wa.gov/sites/default/files/public/legacy/reports/WaterInfrastructureReport.pdf

Water Infrastructure Need 2017 – OFM Report - ECONOMIC ANALYSIS OF WATER INFRASTRUCTURE AND FISHERIES HABITAT RESTORATION NEEDS

Yakima Basin (Phase III) Bipartisan public lands bill that includes funding for Yakima water plan recently signed by “The President”. A collective of irrigators, farmers, fish advocates, tribes and political officials has been working on the estimated $4 billion plan for about a decade. Washington State has invested millions into conservation projects already as part of the 30-year-plan. Now, at least 10 years of federal financial support is all but ensured to follow

SB 5136 Water Supply, Stormwater, flooding and fish passage $500M per biennium up to $5B total. Proposed in current legislative session

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