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Water Recycling Funding Program (WRFP)

Economic Analysis for water recycling projects: guidance and templates available for downloading:

Report recommending a mechanism for allocation of capital and operating costs among project beneficiaries:

ECONOMIC ANALYSIS TASK FORCE (EATF)

In 2002 the Governor convened the Recycled Water Task Force to examine how water recycling projects were funded by state and federal agencies and to make recommendations with the objective of promoting the use of recycled water. In June 2003, the Recycled Water Task Force published their findings in a report titled Water Recycling 2030 (Report). This report included a recommendation for the development of a uniform analytical method for economic analysis that could be used across funding agencies, and a recommendation to develop a mechanism for identifying equitable capital and operating funding schemes according to the beneficiaries based on allocation of the benefits and costs in the economic analysis.

In 2008 the State Water Resources Control Board (State Water Board) convened the Economic Analysis Task Force (EATF), to commence implementation of recommendations 5.1.1 and 5.2. The agencies represented on the EATF were the:

  • State Water Resources Control Board
  • California Department of Public Health
  • California Department of Water Resources
  • California Public Utilities Commission, and
  • the US Bureau of Reclamation

The EATF employed University of California, Davis, staff to produce the guidance document and templates (available above). The Economic Analysis Guidance provides the theoretical background to the economic and financial analysis for water recycling projects and provides specific instructions on how to use the templates. The University also produced the Beneficiary Pays Analysis of Water Recycling Projects report that provides a recommended mechanism to allocate project capital and operating costs according to the benefits and costs developed in the economic analysis.

Questions or comments should be directed to David Balgobin at (916)341-6914 or by email to WRFP@waterboards.ca.gov

Resources

The following resource documents are available to view and download.

U.S. Bureau of Reclamation WaterSMART (Sustain and Manage America’s Resources for Tomorrow)

California faces an increasing set of water resource challenges. Aging infrastructure, rapid population growth, depletion of groundwater resources, impaired water quality associated with particular land uses and land covers, water needed for human and environmental uses, and climate variability and change, all play a role in determining the amount of fresh water available at any given place and time. These water issues are exacerbating the challenges facing traditional water management approaches which no longer meet today’s water management needs. The growing competition for water resources has driven the need for new water management strategies to aid water resource managers. The US Department of Interior, Bureau of Reclamation’s (USBR) WaterSMART program is working to achieve a sustainable water strategy to meet the Nation’s water needs. Go to the USBR WaterSMART Website.

Further Information

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