Funding Application Workshop for State Fiscal Year 2014 (SFY 2014) Water Quality Program 1

Welcome!  Facility basics  Introduce Ecology FMS staff  Introduce Ecology regional staff  Our audience 2

Today’s Schedule 9:00 Program Overview 10:00 Break 10:15 Breakout Sessions –  Project eligibility  Environmental review & cultural resources  Application prerequisites  Guidance for your application 12:00 Adjourn (but we’ll stay around to answer questions until our blood sugar crashes) 3

This Morning’s Topics  Overview of funding programs and eligible projects  State Fiscal Year 2014 (SFY14) funding cycle  Estimated funding available  Application process 4

Overview of Funding Programs and Eligible Projects 5

Ecology WQ Funding Sources Water Pollution Control Revolving Fund (Revolving Fund) Centennial Clean Water Program (Centennial) Clean Water Act Section 319 Program (Section 319) 6

Integrated Funding Program 7

Revolving Fund Program ~$80 million per year Federal loan program Now with forgivable principal Funded through:  Federal capitalization grants  20% State grant match  Repaid principal and interest  De-obligated (unused) funds from prior years Funds a variety of facilities and activities projects 8

Revolving Fund Program SFY 2014 Loan Interest Rate Based on a percent of tax-exempt municipal bonds:  Twenty-year loan: 2.3% (60% of MR)  Five-year loan: 1.1% (30% of MR) MR = Market Rate for tax-exempt municipal bonds 9

Centennial Program ~$10-15 million per year State grant program Funded through the State Building Construction Account or State Toxics Account Funds a variety of facilities and activities projects 10

Section 319 Program ~$1.5 - $2.0 million per year Funded through federal grant Funds a variety of nonpoint source activities projects 11

Types of Projects Funded Wastewater Facility Projects Nonpoint Source Activity Projects (including NP stormwater projects) On-site Septic System Projects Stormwater Facility Projects Plus:  Green Project Reserve (GPR)  Hardship  Pre-Construction set aside 12

Facilities Project - Definition A facility is a domestic wastewater or stormwater system, including:  Control  Collection  Storage  Treatment  Disposal  Recycling Or any project required by an NPDES permit 13

Nonpoint Source Activities Project – Definition An action to:  Control Nonpoint Sources of Water Pollution that impact Surface and Ground Water  Protect and restore the water quality of: Streams Lakes Estuary Marine waters Groundwater Wetlands 14

Eligible Wastewater Facilities Projects (SRF Loan and Hardship) Wastewater Planning:  Comprehensive sewer planning  Site-specific planning  Environmental review  Value engineering  Feasibility studies Design Facility Construction:  Treatment plant upgrades or expansion  Collection sewers and pump stations  Infiltration and inflow correction  Combined sewer overflow abatement  Large on-site systems (LOSS)  New systems 15

Eligible Nonpoint Source Activities Projects (Centennial & 319 Grant) Implementation of approved BMPs Public outreach and education Lake/riparian/wetland restoration Groundwater/aquifer/wellhead protection Total Maximum Daily Load (TMDL) support projects Watershed planning Water quality monitoring Stormwater planning and outreach in non-permitted communities 16

Eligible On-site Sewage System Projects (SRF Loan and Centennial) Planning, surveys, and public education and outreach Local loan programs for repair and replacement of residential or small commercial systems 17

Eligible Stormwater Facility Projects (SRF Loan) Planning, design, and construction of Stormwater Infrastructure Implementation of low impact development (LID) techniques Any other work required by a stormwater NPDES permit 18

Water Quality Program Goals Agency water quality goals guide the programs and eligibility  To prevent and clean up water pollution  To help communities make sustainable choices that reduce and prevent water quality problems  To provide water quality partners with technical and financial assistance 19

Reserved Funding Ecology reserves funding to ensure that certain types of projects will receive funding  33% of Centennial is reserved for Nonpoint Activities Projects  33% of Centennial is reserved for Construction of Facility Projects in Hardship communities  20% of the SRF fund is reserved for Non-Point Activity Projects  5% of the SRF fund is reserved for Pre- Construction Projects  An amount equal to 10% of federal capitalization grant is reserved for Green Projects 20

Hardship Consideration Wastewater Treatment Plant Construction For financially distressed communities <25,000 people Based on Impact to Ratepayer  User fee >2% of MHI For existing residential need only  Standard loan for rest of project Hardship subsidy (grant/forgivable principal) depends on level of hardship and percentage of existing residential need 21

Hardship Consideration On-site Sewage System Projects For local loan repair and replacement program A combination of grants and loans The final interest rate will be reduced if loans are made to land owners with incomes below the MHI 22

Pre-Construction Wastewater and Stormwater infrastructure planning and design projects  Comprehensive sewer planning  Feasibility studies  Site-specific facility planning  Environmental review  Value engineering  Pre-design reports  Design Reserved for applicants with a population less than 25,000 and a MHI below the statewide MHI Applicants with MHI below 80% of the statewide MHI are eligible for up to 50% principal forgiveness 23

Green Project Reserve (GPR) EPA defines Green Projects as practices that:  Compliment hard or gray infrastructure with soft-path technologies  Reduce the environmental footprint of water treatment, collection, & distribution  Help utilities adapt to climate change  Enhance water and energy conservation  Adopt more sustainable solutions to wet weather flows  Promote innovative approaches to water management problems 24

GPR Eligibility Must be a Revolving Fund eligible project Can stand alone or part of a larger project Must meet the EPA criteria for one of the GPR subcategories:  Green Infrastructure  Energy Efficiency  Water Efficiency  Environmentally Innovative GPR elements are eligible for up to 25% principle forgiveness 25

State Fiscal Year 2014 (SFY14) Funding Cycle 26

SFY 2014  Applications accepted Sept. 1 - November 2, 2012  Runs from July 1, 2013 to June 30, 2014 Funding cycle is based on State Legislature funding for the biennium (April 2013) 27

SFY 2014 Water Quality Funding Cycle 28

Funding Levels for SFY 2014 Funding levels presented are estimated and subject to change All funding is subject to State Legislative appropriations for the Biennial Budget Federal funding subject to acts of Congress 29

SFY14 Estimated Funding Fund Source FY 2013 Funding Cycle SFY 2013 FY 2014 Funding Cycle SFY 2014 Centennial Fund (Grants & Loans) $12 million * Section 319 Fund ( Grants Only) $1.8 million ** $1.5 million ** Revolving Fund (Loans w/possible forgivable principal) $74 million ** $125 million ** *Based on past Biennial Budget appropriations. ** Based on past (FFY12) Congressional Budget and WA Biennial Budget appropriations. 30

Estimated Fund Allocations SFY2014 Centennial Spokane Extended Payment Grant$5.00 M Spokane Extended Payment Grant$5.00 M Competitive Centennial $7.00 M Competitive Centennial $7.00 M Hardship Facilities $ 2.33 M Nonpoint Source Activities $2.33 M Competitive$2.33 M Revolving Fund Competitive Revolving Fund Loans$ M Competitive Revolving Fund Loans$ M 75% to Facility Loans $93.75 M 5% to Preconstruction Loans $6.25 M 20% to Nonpoint Activity Loans$25.00 M Green Project Reserves (Facility or Activity)$2.40 M Green Project Reserves (Facility or Activity)$2.40 M Section Nonpoint Source Activities Grants$ 1.5 M Nonpoint Source Activities Grants$ 1.5 M 31

Funding Ceiling Amounts SRF Loans  50% of the funding in any loan category per applicant  No more than 20% of Pre-Construction Facility Hardship Subsidy  $5 M per project Centennial/319 Activity Grants  $250,000 per project with 25% match (cash plus in- kind)  Maximum $500,000 with 25% match (cash) 32

Application Process 33

General Application Tips Please do not use binders One application per project Have a well defined PROJECT Keep answers to 1 page of text. Technical Q/A review and a plain-talk review WORK WITH ECOLOGY’S REGIONAL OFFICE STAFF 34

Application Writing Workshop Washington Stormwater Center and WSU Puyallup Research Extension Training available for:  Phase II Municipal Stormwater Permittees  Small Communities 4 Locations statewide  Spokane: Friday, September 21, 2012  Ellensburg: Tuesday, September 25th, 2012  Everett: Thursday, September 27th, 2012  Olympia: Friday, September 28th,

Who is Eligible to Apply? Local Governments Federally Recognized Tribes Special Purpose Districts Non-profits (Section 319 only) 36

Application Prerequisites Puget Sound Watersheds WRIAs 1-19 Applications for funding in the Puget Sound watershed must be consistent with the Puget Sound Partnership’s Action Agenda 37

Questions? Funding Programs Application Cycle 38

Next……Breakout Sessions 39