1. www.lgc.org Local Government Commission FINANCING GROUNDWATER SUSTAINABILITY Sustainable Groundwater Management Act: Engaging with GSAs

2. www.lgc.org Local Government Commission Financing Collaboration & GSA Formation Short Term/ Immediate DWR Facilitation Services & Technical Assistance SWB Technical Assistance Fee-for-Service Consultants Long-Term/ Sustained Prop 1 Competitive SGMP Enhanced Infrastructure Financing Districts Existing Revenue IRWM funds Financing GSA Function & GSP Development: – All of the above, plus: – SGMA authority to levee fees – State Loans – Federal Grants & Loans

3. www.lgc.org Local Government Commission – Leaders for Livable Communities Financing Collaboration & GSA Formation: Short Term/ Immediate

4. www.lgc.org Local Government Commission – Leaders for Livable Communities DWR Facilitation Support Services & Technical Assistance Continuous, as-needed basis Priority: 1.Newly forming Groups 2.No previous facilitation 3.Convening GSAs 4.Developing GSPs Apply: – Contact Regional Office – Complete Application http://www.water.ca.gov/irwm/partnership/facilitation_services.cfm

5. www.lgc.org Local Government Commission DWR Facilitation Support Services & Technical Assistance Who’s Eligible: Water Management Groups meeting the following 4: 1.Committed to collaborating w/ others on SGMA or IWM goals, 2.Clearly defined need for professional facilitation, 3.Committed to meeting & working toward defined goals 4.Committed to providing logistical & admin support. What’s Covered: Strategic Planning Stakeholder ID & Outreach Stakeholder Assessment Stakeholder Liaison & Mediation Governance Assessment Public Outreach

6. www.lgc.org Local Government Commission – Leaders for Livable Communities SWB Technical Assistance Multidisciplinary Small DACs Office of Sustainable Water Solutions – Funding applications – Budgets – Financial management – Rate setting – Compliance audits – Troubleshooting to improve operations Apply: http://www.waterboards.ca.gov/water_issues/programs/ grants_loans/ proposition1/tech_asst_funding.shtml

7. www.lgc.org Local Government Commission – Leaders for Livable Communities Fee-for-Service Consultants What others are using it for – Needs assessments & technical studies – Stakeholder engagement & facilitation – Writing funding proposals – Collecting & analyzing data How to cover costs – Joint funding proposal – General Fund – Operating Budget – Capital Improvements

8. www.lgc.org Local Government Commission – Leaders for Livable Communities Financing Collaboration & GSA Formation Long Term/ Sustained Funding

9. www.lgc.org Local Government Commission – Leaders for Livable Communities Prop 1 Groundwater $ustainability $800 million – GW Pollution Prevention & Clean-up (SWB) $100 million – Local GW Management Plans & Projects (DWR) ------------------------------------------------------------------- $900 million –Total

10. www.lgc.org Local Government Commission – Leaders for Livable Communities Prop 1 Competitive SGWP “…projects that develop and implement sustainable groundwater planning and projects consistent with Division 6 of the California Water Code…” $ 100 million total - $ 6.7 million allocated ---------------------------------- $ 93.3 million remaining 2017 Solicitation Who can apply: Public agencies Non-profits Public utilities Federally recognized tribes State Indian tribes Mutual water companies

11. www.lgc.org Local Government Commission DWR’s Sustainable Groundwater Planning (SGWP) Grant Program Sustainable Groundwater Planning $83 Million Aligned w/ Regulations timeline (6/2016) Assist local agencies w/ gw sustainability governance & planning Counties with Stressed Basins $10 Million (first round past 12/2016) Update or develop local ordinances & plans Facilitate basin-wide gw sustainability

12. www.lgc.org Local Government Commission “Counties with Stressed Basins” $ 10 million allocated - $ 6.7 million awarded -------------------------------- $3.3 million remaining (added to 2017 round) 21 counties award (including San Joaquin) Project Types: – Groundwater ordinances – Groundwater management plans – Interagency agreements – Data, research, planning

13. www.lgc.org Local Government Commission – Leaders for Livable Communities San Joaquin County Sustainable Groundwater Management Act Readiness Project Total: $ 499,900 Awarded: $ 249,950 Work Plan: – Ag Water Demands & Surface Water Budget – San Joaquin County Hydrologic Model – Comprehensive Basin-Scale Water Budget – Groundwater Monitoring & Enhancement Program

14. www.lgc.org Local Government Commission – Leaders for Livable Communities Enhanced Infrastructure Financing Districts (EIFDs) SB 628 (2015) City &/or County Specific purpose or project – New construction – Rehabilitation – Utility-related infrastructure Special Districts (not schools) can participate Collect tax-increment revenues Recruit private investment

15. www.lgc.org Local Government Commission – Leaders for Livable Communities EIFDs: Benefits & Limitations Can be used for: Can’t be used for: Sewage treatment, water reclamation plants and interceptor pipes. Facilities to collect and treat water for urban uses. Flood control levees and dams, retention basins and drainage channels. Parks, recreational facilities and open space. Projects that implement a sustainable communities strategy. Routine O & M Schools

16. www.lgc.org Local Government Commission – Leaders for Livable Communities EIFDs: Benefits & Limitations Benefits Only 55% voter approval needed to establish No public vote required for projects (only tax increment bonds; 55%) Can fund large projects Multiplier effect for future tax revenue Expanded financing authority More flexible institutional collaboration Limitations Reserve needed prior to bond issuance Limited ability to repay short- term debt service Formation process can be lengthy & costly Need cities & counties for success Must establish proportionality nexus between payer & beneficiary (to satisfy Prop 218 & 26)

17. www.lgc.org Local Government Commission – Leaders for Livable Communities How to Create an EIFD 1.Identify what needs to be done (desired outcomes) 2.Locate available funding streams – Assessment revenues – Fee revenues – Public Debt 3.Establish link between payer & beneficiary

18. www.lgc.org Local Government Commission – Leaders for Livable Communities EIFD Examples & Resources 12 Funding strategies Guidelines Case studies California Economic Summit,“A How-To Guide for Using New EIFDs.” https://cafwd.app.box.com/s/ p8re0h7s6vkhm1st2uwq League of California Cities, Analysis of SB 628 (EIFD) http://www.cacities.org/CMSPag es/GetFile.aspx?nodeguid=d8e42 eca-7647-4f12-98d4- e93383abc48c&lang=en-US EIFDistricts.com http://www.eifdistricts.com/

19. www.lgc.org Local Government Commission

20. www.lgc.org Local Government Commission Existing Revenue ILG

21. www.lgc.org Local Government Commission Existing Revenue ILG

22. www.lgc.org Local Government Commission Existing Revenue Sources General Fund Not restricted to specific purpose Public services & salaries Flexible Competition for other priorities Usually limited & allocated in advance Specific Fund Special public services Dedicated funding stream Funds restricted to specific purpose Capital Fund Long-term investments Planned in advance All infrastructure & facilities costs Cannot be used for other purposes

23. www.lgc.org Local Government Commission Existing Revenue for SGMA General Fund GSA Participation Education & Outreach Research Studies Planning Activities Policy development Specific Fund Groundwater use fee to fund SGMA-related efforts Stormwater, Water supply, Wastewater funds may be applicable to groundwater- related efforts Parcel tax for SGMA efforts Capital Fund Water conveyance &/or storage Groundwater monitoring wells Stormwater capture & infiltration

24. www.lgc.org Local Government Commission – Leaders for Livable Communities Integrated Regional Water Management (IRWM) 48 Regions Across the State $993 million public investment since 2002 Leveraged $4 billion match 700 projects Fosters collaboration across sectors; bridging water & land use But, little authority

25. www.lgc.org Local Government Commission – Leaders for Livable Communities Draft Guidelines, PSP, & DAC Involvement Public comment 1/22 – 3/18/2016 Final 4/2016 Due ~7/2016? Awards ~10-12/2016? 50% local cost share $5 M Planning $51 M DAC $418 M Implementation + ($36 M internal costs) ---------------------------------------- $510 M TOTAL

26. www.lgc.org Local Government Commission Prop 1 IRWM Funds Purpose/ Goal: “…encourage integrated regional strategies for management of water resources by providing funding for projects and programs that support integrated water management.” CA Water Action Plan Priority 6: “Expand Water Storage Capacity and Improve Groundwater Management” Eligibility: consistent w/ IRWMP recognized RWMG Project proponents must adopt the IRWMP Must comply w/ groundwater planning (GWMPs or GSPs) Who can apply: Public agencies Non-profits Public utilities Federally recognized tribes State Indian tribes Mutual water companies Who can apply: Public agencies Non-profits Public utilities Federally recognized tribes State Indian tribes Mutual water companies

27. www.lgc.org Local Government Commission – Leaders for Livable Communities IRWM Funds Stockton: San Joaquin River Funding Area $31 Million 8 Regional Water Management Groups Stockton: #8; Eastern San Joaquin

28. www.lgc.org Local Government Commission – Leaders for Livable Communities IRWM Funds Marysville: Sacramento River Funding Area: $37 Million 6 Regional Water Management Groups Marysville: Yuba County IRWM

29. www.lgc.org Local Government Commission Prop 1 IRWM funds Can be used for: Water reuse & recycling Water use efficiency & conservation Surface & groundwater storage Regional conveyance Stormwater Conjunctive use (storage) Desal Decision Support Water quality Can’t be used for: Adverse impacts to wild & scenic rivers Eminent Domain Delta conveyance Water acquisition (except for additional env. flows) Legal or regulatory obligations

30. www.lgc.org Local Government Commission – Leaders for Livable Communities Financing GSA Function & GSP Development: Facilitation services (DWR/SWB) Fee-for-Service Consultants Prop 1 funds EIFDs Existing Revenue IRWM Funds + SGMA Authority to Levee Fees State loans & other grant programs Federal loans and grants

31. www.lgc.org Local Government Commission – Leaders for Livable Communities SGMA Authority to Levee Fees CWC, Division 6, Chapter 8, Section 10730: Financial Authority (a) A groundwater sustainability agency may impose fees, including, but not limited to, permits and fees on groundwater extraction or other regulated activity, to fund the costs of a groundwater sustainability program, including, but not limited to, preparation, adoption, and amendment of a groundwater sustainability plan, and investigations, inspections, compliance assistance, enforcement, and program administration, including a prudent reserve.

32. www.lgc.org Local Government Commission – Leaders for Livable Communities GSAs Can Impose 3 Types of Fees: 1.Permit fees on groundwater extraction 2.Fees to fund the cost of a Groundwater Sustainability Plan (GSP) 3.Fees to fund investigations, inspections, compliance assistance, enforcement and program administration.

33. www.lgc.org Local Government Commission SGMA Authority to Levee Fees PRO Pros Can cover a wide range of costs & services Can assess as soon as GSA is filed with DWR Provides stable revenue for ongoing efforts Cons Considered a parcel tax or use tax Subject to Prop 218 and/or Prop 26 process *A GSA could enact a fee on the basis that all pumpers in a basin contribute to the costs of sustainable management regardless of whether they experience identical impacts from pumping or recharge activities.

34. www.lgc.org Local Government Commission – Leaders for Livable Communities Other State & Federal Programs GHGRF/ California Climate Investment Strategic Growth Council/ Sustainable Community Strategies State Infrastructure Loans – CalConserve Revolving Fund 2015 Loan Program. Federal Grants & Loans

35. www.lgc.org Local Government Commission – Leaders for Livable Communities Next Steps 1.Complete LGC’s online evaluation survey. 2.Find out who’s leading the GSA formation process in your area. 3.Sign up for DWR’s SGMA email list. 4.Determine what role your organization wants to have. 5.Come to our next round of trainings!

36. www.lgc.org We are a nonprofit organization that fosters innovation in local environmental sustainability, economic prosperity and social equity. Many Thanks for your attention today – we hope this was beneficial for you! Danielle V. Dolan Water Program Manager (916) 448-1198 x311 ddolan@lgc.org