1. Used Oil Competitive Grants’ Cycle Frequency and Funding Levels (Used Oil Recycling Fund, FY 2006/07 and FY 2007/08)

2. Oil Program Statute Grant and Outreach Programs: Grant and Outreach Programs: –Block Grants (administered annually) –Competitive Grants (OG, UNP, URD) Annual award not required Annual award not required Funding is continuously appropriated Funding is continuously appropriated - Outreach and Education - Outreach and Education

3. Funding Framework Funding Framework: –Cycle Frequency –Funding Levels

4. 1. Cycle Frequency Local Program Need Local Program Need –Regular & predictable funding –Time to evaluate effectiveness Three Options for Cycle Frequency: Three Options for Cycle Frequency: –Annual –Biennial (Board adopted Nov. 2001) –Other Cycle Options

5. Annual Cycle: Recommended Each grant is awarded annually Each grant is awarded annually Effects are: Effects are: –Most responsive to fluctuations in Fund Condition –All Stakeholders eligible for grants –Potential for overlapping grants –Lack of program evaluation –Lower funding levels for each cycle

6. Biennial Cycle: Not Recommended Each grant awarded every two years Each grant awarded every two years Current Board model Current Board model Biennial Cycles have been successful: Biennial Cycles have been successful: –Predictability –Funding flexibility –Less focus on administration, more on project management & evaluation –Does not limit available funding for local government

7. Other Cycle Options : Not Recommended Any cycle other than Annual/Biennial Any cycle other than Annual/Biennial Effects are: Effects are: –Flexibility on when to award –Unpredictable cycles –Decreased administrative tasks –Funding flexibility

8. 2. Funding Levels Two Issues: Two Issues: A.Total annual Competitive Grant funding B.Funding amount for individual Competitive Grants

9. Statutory Framework for Funding Levels Total Resources – Mandatory Expenses – Mandatory Expenses “ Remaining Balance” “ Remaining Balance”

10. Statutory for Funding Levels for Grants: 60% Minimum GrantPercent of Remaining Balance OG Minimum 40% UNP Minimum 10% URD 10-15% maximum

11. A. Total Annual Competitive Grant Funding Other Board Options: Other Board Options: –Increase total grant $ up to 80% –Decrease total grant $ below 60% Preferred Option – 60% level Preferred Option – 60% level –Prudent carry-over –Obligation to stakeholders –Facilitates local planning

13. Funding Framework: Annual Cycles after 4 yrs Scenario 1: No Grants in 06/07; Scenario 1: No Grants in 06/07; Annual Grants Year 2 Annual Grants Year 2 Result: 7 OG grants Result: 7 OG grants 1.5 NP/R&D grants 1.5 NP/R&D grants Scenario 2: Statutory Min. 06/07 Scenario 2: Statutory Min. 06/07 Annual Grants Year 2 Annual Grants Year 2 Result: 6 OG grants Result: 6 OG grants 1.5 NP/R&D grants 1.5 NP/R&D grants

15. Funding Framework: Biennial Cycles after 4 yrs Scenario 3: Biennial 15/45/60 Scenario 3: Biennial 15/45/60 Result: 3.8 OG grants Result: 3.8 OG grants 6.7 NP grants 6.7 NP grants 2.2 RD grants 2.2 RD grants Scenario 4: 15/15/60 Scenario 4: 15/15/60 Result: 6.7 OG grants Result: 6.7 OG grants 2.3 NP/R&D grants each 2.3 NP/R&D grants each

16. B. Preferred Funding Framework Annual Cycle Annual Cycle Defer Grant Funding until FY 2007/08 Defer Grant Funding until FY 2007/08 60% total annual limit for competitive grants 60% total annual limit for competitive grants –UNP = 10% of remaining balance –URD = 10% of remaining balance –OG = 40% of remaining balance Joint Solicitation of 3 Grants Joint Solicitation of 3 Grants Offer Grants earlier (July-Sept) Offer Grants earlier (July-Sept)

17. Recommended Action for Cycle Frequency & Funding Levels Choose Choose –Option #2 Annual Cycles beginning in FY 2007/08 Annual Cycles beginning in FY 2007/08 Adopt Resolution #2007-35 with revisions Adopt Resolution #2007-35 with revisions