1. 1 PUBLIC WORKSHOP Draft 2007 Water Use Efficiency Proposal Solicitation Package (PSP) October 30 and 31, 2006 Manucher Alemi Department of Water Resources

2. 2 Workshop agenda Introductions Introductions Purpose of the Workshop Purpose of the Workshop Draft WUE PSP Draft WUE PSP Contents Contents Requirements Requirements Funding Funding Process Process Q/A Q/A

3. 3 2007 PSP Materials Draft 2007 WUE PSP Draft 2007 WUE PSP Draft 2007 WUE PSP Exhibits Draft 2007 WUE PSP Exhibits PSP Frequently Asked Questions PSP Frequently Asked Questions Reference 1- Targeted Benefits Reference 1- Targeted Benefits Reference 2- Monitoring Guidelines Reference 2- Monitoring Guidelines Reference 3- Accessing Census Data Reference 3- Accessing Census Data Training Manual for on-line Application by FAAST Training Manual for on-line Application by FAAST Application Attachment Templates for Steps 1&2 Application Attachment Templates for Steps 1&2 Find them on DWR Web site at: www.owue.water.ca.gov/finance/index.cfm

4. 4 Contents of the PSP Eligibility Eligible applicant Eligible project State benefit Cost share Intellectual interest, right to privacy, conflict of interest Funding Rules Project Priority Funding Programs Agreement Requirements Schedule Review, Selection, Award Process Proposal Submittal (what, where, when)

5. 5 Eligibility Requirements Must be an eligible applicant Must be an eligible applicant Must submit an eligible project Must submit an eligible project Provide State benefit Provide State benefit Provide local cost share (Section A only) Provide local cost share (Section A only) Have no conflict of interest Have no conflict of interest Intellectual interest belongs to the State Intellectual interest belongs to the State No right to privacy-submitted application is public information No right to privacy-submitted application is public information Meet application deadline Meet application deadline Meet Urban Water Management Planning Act requirement, if applicable Meet Urban Water Management Planning Act requirement, if applicable

6. 6 Urban Water Management Planning Act If you intend to apply for the grant and are subject to UWMP Act contact DWR’s Dave Todd. (916) 651-7027. If you intend to apply for the grant and are subject to UWMP Act contact DWR’s Dave Todd. (916) 651-7027. Your Plan review will be given high priority. Your Plan review will be given high priority.

7. 7 Eligible applicants Entities involved with water management including: cities, counties, cities and counties, joint power authorities, public water districts Non Profit Organizations Tribes Universities, Colleges, State and Federal Agencies (Section B Projects Only) Investor owned utilities and incorporated mutual water companies (subject to conditions)

8. 8 Eligible project categories Section A: Local and Regional 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

9. 9 Eligible projects Eligible projects: Eligible projects: Urban BMPs Urban BMPs Landscape Task Force Recommendations Landscape Task Force Recommendations Agricultural EWMPs Agricultural EWMPs Projects linked to Targeted Benefits Projects linked to Targeted Benefits See Exhibit I of the PSP for details

10. 10 Ineligible Projects- Sections A and B Wellhead rehabilitation New storage tanks providing expanded capacity Water supply development Water treatment Wastewater treatment Flood control Conjunctive use Recycled water Groundwater banking

11. 11 Ineligible Projects- Sections A and B Replace existing funding sources for on-going projects Political advocacy Purchase of water Establishment of a reserve fund Applicant’s litigation costs Projects that do not achieve water savings, improve in- stream flow and timing, improved water quantity, or water quality and energy conservation benefits to the State Projects required by regulation, law, or contract Visitor centers

12. 12 Ineligible projects- Section A Projects with life span of less than 7 years Projects with life span of less than 7 years New construction weather-based evapotranspiration controller projects, other irrigation system devices, or software New construction weather-based evapotranspiration controller projects, other irrigation system devices, or software Water meter replacement, water meter for new construction (existing non-metered buildings are eligible), new landscape, and new irrigation systems Water meter replacement, water meter for new construction (existing non-metered buildings are eligible), new landscape, and new irrigation systems

13. 13 Eligibility-State benefits Section A project must provide State Benefit Section A project must provide State Benefit Section B projects must have potential to create State Benefit Section B projects must have potential to create State Benefit State Benefit is defined as State Benefit is defined as Water saving and/or in-stream flow improvements, water quality improvement and energy conservation (that leads to water conservation) Water saving and/or in-stream flow improvements, water quality improvement and energy conservation (that leads to water conservation)

14. 14 Project Priority First Priority: First Priority: Projects that result in a greater water quantity being available to the Bay Delta Watershed through a reduction in either current or future diversions Projects that result in a greater water quantity being available to the Bay Delta Watershed through a reduction in either current or future diversions Projects that address high priority stream-flow TBs (see Reference 1) Projects that address high priority stream-flow TBs (see Reference 1)

15. 15 Project Priority-continued Second Priority Second Priority Projects that address medium or low priority stream-flow TBs Projects that address medium or low priority stream-flow TBs Projects that address one or more of the water quality TBs Projects that address one or more of the water quality TBs Urban projects that expedite or improve landscape-related BMPs recommended by the Landscape Task Force Report, Water Smart Landscape for California Urban projects that expedite or improve landscape-related BMPs recommended by the Landscape Task Force Report, Water Smart Landscape for California

16. 16 Project Priority- continued Third Priority Third Priority Projects not in the Bay-Delta Watershed that will result in improved local water supply reliability Projects not in the Bay-Delta Watershed that will result in improved local water supply reliability Water conservation practices and projects that will conserve energy Water conservation practices and projects that will conserve energy

17. 17 Eligibility- Cost share Section A applicants must provide local cost share Section A applicants must provide local cost share Section B applicants are not required but encouraged to provide cost share Section B applicants are not required but encouraged to provide cost share Cost share is proportionate to the split between applicant benefits and State Benefits Cost share is proportionate to the split between applicant benefits and State Benefits

18. 18 Eligibility-Cost share Locally NOT cost effective projects: Locally NOT cost effective projects: Maximum State Share of project costs Maximum State Share of project costs =[project costs] – [local monetary benefits] + [ 0.10]x[costs] Locally cost effective projects are eligible for up to 10% of project costs as State share if they meet additional criteria. Locally cost effective projects are eligible for up to 10% of project costs as State share if they meet additional criteria.

19. 19 -continued Cost Share Example- Cost Share Example- A project demonstrates state benefit by saving water A project demonstrates state benefit by saving water Project costs $100,000 Project costs $100,000 Present value of local monetary benefits is $30,000 Present value of local monetary benefits is $30,000 Maximum State Share= (100,000-30,000)+ (0.1)(100,000) =$80,000 =$80,000 Minimum Local Share= $20,000

20. 20 Cost share-disadvantaged community Disadvantaged Community may provide less local cost share: Disadvantaged Community may provide less local cost share: The population served by the water from the proposed project must meet the Medium Household Income of less than ($38,000) The population served by the water from the proposed project must meet the Medium Household Income of less than ($38,000) Successful Step 1 applicants will be asked to provide documentation in Step 2 Successful Step 1 applicants will be asked to provide documentation in Step 2

21. 21 Disadvantaged Com.-continued Not locally cost effective: Not locally cost effective: Maximum State share = cost –project local monetary benefits+ 25% of project costs Maximum State share = cost –project local monetary benefits+ 25% of project costs Minimum local share =cost – State share Minimum local share =cost – State share Locally cost effective: Locally cost effective: Maximum State share = 25% of project cost Maximum State share = 25% of project cost Minimum local share = cost – State share Minimum local share = cost – State share

22. 22 Cost share- modification Applicants may offer greater than calculated minimum local cost share Applicants may offer greater than calculated minimum local cost share

23. 23 Other requirements Geographic scope (eligibility) Geographic scope (eligibility) No conflict of interest (eligibility) No conflict of interest (eligibility) Labor code (Agreement) Labor code (Agreement) Intellectual interest (eligibility) Intellectual interest (eligibility) Right to privacy (eligibility) Right to privacy (eligibility)

24. 24 Geographic Scope & Duration of Projects Geographic Scope Projects from Statewide contributing to water use efficiency goals Duration Expended within 2 years of contract execution

25. 25 Conflict of Interest & Confidentiality Conflict of Interest All applicants and reviewers are subject to State and Federal conflict of interest laws Confidentiality Applicant waives any right to privacy and confidentiality once the application is signed and submitted to DWR Project’s intellectual property belongs to the State

26. 26 Labor Code Compliance Entities awarded grants must ensure compliance with Labor Code Compliance programs for public works projects and limitations on use of volunteer labor Entities awarded grants must ensure compliance with Labor Code Compliance programs for public works projects and limitations on use of volunteer labor

27. 27 Agreement requirements Standard terms and conditions Standard terms and conditions Report requirements Report requirements Cost share commitment letter Cost share commitment letter Resolution Resolution

28. 28 Fund Programs The WUE grant is structured into four Funding Programs: Urban grants- $15.068 M Urban grants- $15.068 M 1. Section A: Urban Water Use Efficiency Implementation $12.81 M (85%) 2. Section B: Urban Water Use Efficiency R&D $2.26 M (15%) Agricultural grants- $20.26 M ($5.193 M from last cycle) Agricultural grants- $20.26 M ($5.193 M from last cycle) 3. Section A: Agricultural Water Use Efficiency Implementation $18.0 M 4. Section B: Agricultural Water Use Efficiency R&D $2.26 M

29. 29 Funding Cap $3.0 million per project for Section A projects $3.0 million per project for Section A projects $100,000 to $200,000 for Section B projects depending on the project category $100,000 to $200,000 for Section B projects depending on the project category Total fund: $35 million Total fund: $35 million 85% Section A Projects 85% Section A Projects 15% Section B Projects 15% Section B Projects

30. 30 Funding rules Limit administration costs to 5 to 10% Limit administration costs to 5 to 10% Vehicles are not eligible Vehicles are not eligible Buildings are not eligible for Section B Buildings are not eligible for Section B Capital outlay must be exclusively tied to project benefits Capital outlay must be exclusively tied to project benefits For more information see the PSP For more information see the PSP

31. 31 PSP Process Two-step process Two-step process Step 1- Concept proposal Step 1- Concept proposal Step 2- Full proposal Step 2- Full proposal

32. 32 Step 1 Concept Proposal Selection Criteria CriteriaScore Benefits50 Costs45 Innovation5 Non-compliance with water management planning Interact with DWR Compliance with AWMC -25-10+5

33. 33 Step 2 Full Proposal Selection Criteria CriteriaScore Benefits55 Costs40 Innovation5 Non-compliance with water management planning Interacting with DWR Compliance with AWMC -25-10+5

34. 34 Review and Selection Process (*- Step 2 only) Applications Received Administrative Eligibility Review (Legal and DWR Staff) Conduct Eligibility Threshold Review Deadline Requirement- Water Use Efficiency Review Panel (agency members, stakeholders*, subject matter experts) Score Proposals DWR Ranks and produces Draft Recommendations

35. 35 Review and Selection Process (continued) DWR Management Conduct Public Workshop* Comments received on Draft Recommendations* Approval on Draft Recommendations List Approved by DWR Posted to DWR Website Reviews Draft Recommendations Water Use Efficiency Agency Team

36. 36 Anticipated Schedule November 6, 2006 Public comments due November 21, 2006Final PSP released November 2006Public Workshops December 15, 2006Step 1 Proposals due February 2, 2007Selected proposals invited back March 16, 2007Step 2 Full Proposals due May 21, 2007DWR makes funding decision

37. 37 Contents of Step 1 Concept Proposals On-line Application using FAAST Attachment 1- Project Description Attachment 2- Project costs

38. 38 Application submittal Amy Young DWR

39. 39 Step 1 Concept Proposal Submittal You may submit applications for each of the four Funding Programs on FAAST You may submit applications for each of the four Funding Programs on FAAST Separate applications are required for each project on each Funding Program Separate applications are required for each project on each Funding Program

40. 40 Step 1 Concept Proposal Submittal Complete FAAST Application online Complete FAAST Application online Attach two files using DWR templates Attach two files using DWR templates Attachment 1-Project Description Attachment 1-Project Description Attachment 2- Project costs Attachment 2- Project costs For FAAST Application Instructions visit DWR Web site: http://www.owue.water.ca.gov/finance/index. cfm

41. 41 FAAST Training Manual Introduction to FAAST Introduction to FAAST How to start a FAAST application How to start a FAAST application FAAST Application Instructions FAAST Application Instructions Application Questions (one per funding program) Application Questions (one per funding program) http://www.owue.water.ca.gov/finance/index.cfm http://www.owue.water.ca.gov/finance/index.cfm

42. 42 Contents of Step 2 Proposals required of applicants invited in Step 2 Updated FAAST Application online Attachment 1- Signature Page Attachment 2- ROD Consistency and Priority Attachment 3- Technical/Scientific Merit Attachment 4- Project Description Attachment 5- Monitoring Plan Attachment 6 and 7-Costs and Benefits Attachment 8- Disadvantaged Community reduction of local cost share Attachment 8- Disadvantaged Community reduction of local cost share Attachment 9- Qualification of Applicants & Cooperators Attachment 9- Qualification of Applicants & Cooperators Attachment 10- Outreach, Community Involvement & Acceptance Attachment 10- Outreach, Community Involvement & Acceptance Attachment 11- Innovation

43. 43 Hint Follow instructions in the PSP Follow instructions in the PSP For each attachment, read the respective section of the PSP to provide complete and concise answer For each attachment, read the respective section of the PSP to provide complete and concise answer Find attachment templates at: www.owue.water.ca.gov/finance/index.cfm

44. 44 Comments must be received by: 5 PM on November 6, 2006 Office of Water Use Efficiency & Transfers DWR 1416 Ninth Street Sacramento, CA 95814 Attention: Baryohay Davidoff (916) 651 – 9666