The Proposition 84 resources will provide the State matching funds to continue the State Revolving Fund (SRF) Loan Program that was established in 1987 by amendments to the Clean Water Act and is capitalized, in part, by federal funds. The program is administered by the State Water Resources Control Board (State Water Board). The State Water Board issues SRF loans in the amount of $200 million to $300 million annually. The Governor’s proposed budget includes $73.2 million in local assistance for this program in 2007-08.
The SRF Loan Program provides low-interest loan funding for construction of publicly-owned wastewater treatment facilities, local sewers, sewer interceptors, water reclamation facilities; as well as expanded use projects such as implementation of nonpoint source (NPS) projects or programs, development and implementation of estuary Comprehensive Conservation and Management Plans, and stormwater treatment.
The State Water Board adopted Policy Guidelines for the funding process (https://www.waterboards.ca.gov/water_issues/programs/grants_loans/). In order to get funding, projects have to meet SRF criteria for four different priorities. Class A projects are those that solve public health problems. Class B projects are those impacting pollution of impaired water bodies. Class C projects are for compliance with requirements and water recycling projects. Class D projects serve as preventative measures against additional water quality degradation for impaired or unimpaired water bodies.
Eligible projects are placed on a priority list which is updated annually. Projects are funded based on readiness to proceed.
This Program is consistent with Goals 2 and 6 of the State Water Boards’ Strategic Plan adopted in November 2001. The Strategic Plan is being updated in 2007; the goals are not expected to change.