Program: State Water Pollution Control State Revolving Fund Program

Bond Act: Proposition 84

Agency of Appropriation: State Water Resources Control Board

Bond Statute: 75024

Implementing Statute: Federal Water Pollution Control Act

  • Front-end
  • In-progress
  • Follow-up (Audit)

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.

ts selected for funding under the State Revolving Fund Loan Program are required to spend loan funds according to the approved project scope and budget. The State Water Resources Control Board (State Water Board) requires quarterly progress reports for all projects and conducts periodic site visits during construction for each development project. Payment requests must include a certification by the loan recipient that each expense complies with requirements outlined in the loan agreement. Loan recipients must also submit supporting documentation for each expense, with reimbursements approved only for eligible expenses pursuant to program guidelines and contained within the approved project budget. The State Water Board also withholds ten percent of the total loan agreement until the recipient submits a final revenue program for the project and the final revenue program is approved by State Board staff.
,br>An annual project accounting report is prepared and presented to the DOF. The DOF also performs audits on select projects. The State Water Board maintains a public-accessible website listing all current projects by program, the funding source and timeframe for completion. The State Revolving Fund Loan Program will be included in this current project accounting procedure.
ojects funded via the State Revolving Fund Loan Program receive a final project inspection conducted by the State Water Resources Control Board (State Water Board) during the project’s first year of operation. The purpose of the final project inspection is to ensure the project was constructed according to program guidelines and the terms of the loan agreement and that the project is functioning as designed. Loan recipients are required to certify that their projects are meeting the original objectives of the project and submit a report substantiating their certification. All loan recipients must comply with all current laws and regulations that apply to the project and submit documents summarizing total project costs and all additional funding sources.

Projects within this Program: