The Safe Drinking Water State Revolving Fund (SDWSRF) provides funding to correct public water system deficiencies based upon a prioritized funding approach that addresses the systems' problems that pose public health risks, systems with needs for funding to comply with requirements of the Safe Drinking Water Act, and systems most in need on a per household affordability basis.
Proposition 50
Proposition 50, The Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 was passed by California voters in the November 2002 general election. .
The California Department of Health Services is the responsible agency for Chapter 3 (Water Security) and Chapter 4 (Safe Drinking Water) of The Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002.
CDHS is using a "universal pre-application" for projects to be considered for funding under SDWSRF, Proposition 50 and Proposition 84. The pre-application period for Round 2 will end July 31, 2007.
Project Ranking Criteria
Process
Pre-applications must be submitted no later than July 31, 2007.
- Based on the information submitted, the projects will be ranked according to the criteria for each separate grant program(s). A separate ranking list will be established for each grant program.
- The draft ranking lists will be subject to review by a stakeholders' group and then released for public comment before they are made final. Once the lists are in final form, grant application forms will be sent to applicants whose projects rank highest down through those projects representing the total amount of available funding.
Proposition 50 Criteria Chapters 3 and 4
- Complete application.
- After an application is deemed complete, DHS will issue a letter of commitment to the applicant with a list of conditions to be met before issuing of a funding agreement. Commitment letters will include a deadline for meeting all such conditions. These conditions include completion of California Environmental Quality Act (CEQA) compliance and submittal of final project plans and specifications. Upon the applicant's timely compliance with all conditions, the project will be reviewed and, if satisfactory, a funding agreement will be executed.
- Twenty-five percent of the program grant funds in Chapters 3 and 4 will be allocated to disadvantaged communities.
Definitions
- "Community water system" is defined as a public water system that serves at least 15 service connections used by year-long residents or regularly serves at least 25 year-long residents of the area served by the water system.
- "Disadvantaged community" means a community with an annual household income that is less than 80 percent of the statewide annual median household income.
- "Matching funds" means funds made available by nonstate sources, which may include, but are not limited to, donated services from nonstate sources. Matching funds for state agencies may include state funds and services except for Proposition 50 funds.
- "Noncommunity water system" is defined as a public water system that is not a community water system.
- "Nontransient noncommunity water system" is defined as a public water system that is not a community water system and that regularly serves at least 25 of the same persons over six months per year.
- "Public water system" is defined as a system for the provision of water that has 15 or more service connections or regularly serves at least 25 individuals at least 60 days out of the year.
- "Small water system" is defined as a public water system serving less than or equal to 1,000 service connections or less than or equal to 3,300 population.
Proposition 50 Criteria Chapters 3 and 4
General Criteria
- Proposition 50 grant funds cannot be used for operation and maintenance activities.
- Applicants cannot receive funds for the same project from other Proposition 50 grant programs.
- Applicants may be reimbursed for expenses determined to be eligible by DHS. Preliminary costs incurred by the applicant after DHS grant criteria are adopted may be eligible for reimbursement. Preliminary costs may include planning, preliminary engineering, design, environmental documentation, and interim financing. Construction costs, in order to be eligible, must have been incurred after the applicant receives a letter of commitment from DHS. Actual reimbursement will occur only after the funding agreement is executed.
- Matching funds are required on a one-to-one basis except for disadvantaged communities and small water systems.
- Water system expenses incurred prior to the funding agreement award may be used as matching funds.
- Grants to privately owned water systems that are regulated by the California Public Utilities Commission (PUC) will be subject to the PUC's review and approval and the PUC's directives and/or general order(s) addressing the water system's use of Proposition 50 funds. Any privately owned water system receiving funding will be prohibited from earning a profit from the use of these funds and achieving financial benefit from the later disposition of assets purchased by these funds regardless of whether or not said assets are a useful part of the water system.
- For privately owned public water systems that are not regulated by the PUC, DHS will institute comparable controls and requirements on the use of Proposition 50 funds with regard to assets and return of profit.
- Construction of the project must start within one year after funding agreement execution, including CEQA compliance. The project shall conclude within three years after funding agreement execution. Requests for time extensions will be considered.
- A review of the cost effectiveness of the project will be part of the approval process.