Water Boards: Financial Assistance Programs - Grants and Loans

Water Recycling Funding Sources

FUNDING SOURCES

Since the mid-1970s, California has made an effort to promote water use efficiency through the Federal Clean Water Act and passage of several bond measures. In 1987, the Amendments to the Federal Clean Water Act created the State Revolving Fund (SRF) Loan Program, which provides low-interest loans to public agencies for planning, design, and construction of wastewater treatment facilities and water recycling projects. In 1978, 1979, 1984, 1988, 1996, 2000, and 2002, California passed several bond laws and created a fund, which provided loans and grants for planning and construction of water recycling projects. Please see Appendix B of the Strategic Plan for additional information regarding funding sources.

The current level of unallocated funding for the Water Recycling Funding Program (WRFP) is about $59 million for construction loans and grants, planning grants and research. Of this total, $7.6 million is available for construction grants from Proposition 13 and Proposition 50. Approximately $40 million is available for construction loans from the 1984 bond law repayments. In addition, approximately $10 million is available from Proposition 13 for planning grants and loans, and about $1.3 million is available for research under Proposition 13.

The SRF Loan Program, while primarily intended for funding water pollution control facilities, is also available to provide loans for water recycling facilities planned for water supply purposes. There is no specified allocation in the SRF for water recycling, and this program is used when other loan funds are unavailable. Currently, the SRF Loan Program is accepting water recycling loan applications; however, limited funds are available. For more information regarding the SRF Loan Program, visit http://www.waterboards.ca.gov/grants_loans/srf/index.shtml.

TABLE 1. Summary of State Water Resources Control Board WRFP Funding and Expected Deliveries, 1978 - September 2006

Funding Source	Construction Loans	Construction Grants	Planning Grants	Total Loans and Grants	Expected Recycled Water Deliveries From Construction
1978 Bond Law	N/A	$11,194,122	N/A	$11,194,122	4,791
Renewable Resources Investment Fund (General Fund)	N/A	$4,500,000	N/A	$4,500,000	3,600
1984 Bond Law	$57,437,401	N/A	N/A	$57,437,401	26,548
1988 Bond Law	$37,610,923	N/A	N/A	$37,610,923	15,985
1996 Bond Law	$1,811,841	N/A	$545,000	$2,356,841	412
2000 Bond Law (Prop. 13)	$39,350,000	$59,511,290	$4,332,500	$103,193,790	134,001
2002 Bond Law (Prop. 13)	N/A	$50,755,375	$900,000	$51,655,375	88,652
State Revolving Fund	$372,904,578	N/A	N/A	$372,904,578	65,571
TOTAL	$509,114,743	$125,960,787	$5,777,500	$640,853,030	339,561

For further information or questions, please contact:

Ms. Claudia Villacorta
cvillacorta@waterboards.ca.gov
(916) 341-5735

Division of Financial Assistance
Water Recycling Funding Program
State Water Resources Control Board
P.O. Box 944212
Sacramento, CA 94244-2120