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

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

3. 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

4. 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

5. 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%

6. 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%

7. 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?

8. Estimated $32.7 billion need
ECONOMIC ANALYSIS OF WATER INFRASTRUCTURE AND FISHERIES HABITAT RESTORATION NEEDS
2017 Report
Estimated $32.7 billion need

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

10. 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

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

12. Questions