Funding Application Workshop for State Fiscal Year 2014 (SFY 2014)

1. Funding Application Workshop forState Fiscal Year 2014 (SFY 2014) Water Quality Program

2. Welcome! • Facility basics • Introduce Ecology FMS staff • Introduce Ecology regional staff • Our audience

3. Today’s Schedule • 9:00 Program Overview • 10:00 Break • 10:15 Breakout Sessions – • Project eligibility • Environmental review & cultural resources • Application prerequisites • Guidance for your application • 12:00 Adjourn (but we’ll stay around to answer questions until our blood sugar crashes)

4. This Morning’s Topics • Overview of funding programs and eligible projects • State Fiscal Year 2014 (SFY14) funding cycle • Estimated funding available • Application process

5. Overview of Funding Programs and Eligible Projects

6. Ecology WQ Funding Sources • Water Pollution Control Revolving Fund (Revolving Fund) • Centennial Clean Water Program (Centennial) • Clean Water Act Section 319 Program (Section 319)

7. Integrated Funding Program

8. Revolving Fund Program • ~$80 million per year • Federal loan program • Now with forgivable principal • Funded through: • Federal capitalization grants • 20% State grant match • Repaid principal and interest • De-obligated (unused) funds from prior years • Funds a variety of facilities and activities projects

9. Revolving Fund Program • SFY 2014 Loan Interest Rate • Based on a percent of tax-exempt municipal bonds: • Twenty-year loan: 2.3% (60% of MR) • Five-year loan: 1.1% (30% of MR) • MR = Market Rate for tax-exempt municipal bonds

10. Centennial Program • ~$10-15 million per year • State grant program • Funded through the State Building Construction Account or State Toxics Account • Funds a variety of facilities and activities projects

11. Section 319 Program • ~$1.5 - $2.0 million per year • Funded through federal grant • Funds a variety of nonpoint source activities projects

12. Types of Projects Funded • Wastewater Facility Projects • Nonpoint Source Activity Projects (including NP stormwater projects) • On-site Septic System Projects • Stormwater Facility Projects • Plus: • Green Project Reserve (GPR) • Hardship • Pre-Construction set aside

13. Facilities Project - Definition • A facility is a domestic wastewater or stormwater system, including: • Control • Collection • Storage • Treatment • Disposal • Recycling • Or any project required by an NPDES permit

14. Nonpoint Source Activities Project –Definition • An action to: • Control Nonpoint Sources of Water Pollution that impact Surface and Ground Water • Protect and restore the water quality of: • Streams • Lakes • Estuary • Marine waters • Groundwater • Wetlands

15. Eligible Wastewater Facilities Projects(SRF Loan and Hardship) • Wastewater Planning: • Comprehensive sewer planning • Site-specific planning • Environmental review • Value engineering • Feasibility studies • Design • Facility Construction: • Treatment plant upgrades or expansion • Collection sewers and pump stations • Infiltration and inflow correction • Combined sewer overflow abatement • Large on-site systems (LOSS) • New systems

16. Eligible Nonpoint Source Activities Projects(Centennial & 319 Grant) • Implementation of approved BMPs • Public outreach and education • Lake/riparian/wetland restoration • Groundwater/aquifer/wellhead protection • Total Maximum Daily Load (TMDL) support projects • Watershed planning • Water quality monitoring • Stormwater planning and outreach in non-permitted communities

17. Eligible On-site Sewage System Projects(SRF Loan and Centennial) • Planning, surveys, and public education and outreach • Local loan programs for repair and replacement of residential or small commercial systems

18. Eligible Stormwater Facility Projects(SRF Loan) • Planning, design, and construction of Stormwater Infrastructure • Implementation of low impact development (LID) techniques • Any other work required by a stormwater NPDES permit

19. Water Quality Program Goals Agency water quality goals guide the programs and eligibility To prevent and clean up water pollution To help communities make sustainable choices that reduce and prevent water quality problems To provide water quality partners with technical and financial assistance

20. Reserved Funding • Ecology reserves funding to ensure that certain types of projects will receive funding • 33% of Centennial is reserved for Nonpoint Activities Projects • 33% of Centennial is reserved for Construction of Facility Projects in Hardship communities • 20% of the SRF fund is reserved for Non-Point Activity Projects • 5% of the SRF fund is reserved for Pre-Construction Projects • An amount equal to 10% of federal capitalization grant is reserved for Green Projects

21. Hardship Consideration Wastewater Treatment Plant Construction • For financially distressed communities • <25,000 people • Based on Impact to Ratepayer • User fee >2% of MHI • For existing residential need only • Standard loan for rest of project • Hardship subsidy (grant/forgivable principal) depends on level of hardship and percentage of existing residential need

22. Hardship Consideration On-site Sewage System Projects • For local loan repair and replacement program • A combination of grants and loans • The final interest rate will be reduced if loans are made to land owners with incomes below the MHI

23. Pre-Construction • Wastewater and Stormwater infrastructure planning and design projects • Comprehensive sewer planning • Feasibility studies • Site-specific facility planning • Environmental review • Value engineering • Pre-design reports • Design • Reserved for applicants with a population less than 25,000 and a MHI below the statewide MHI • Applicants with MHI below 80% of the statewide MHI are eligible for up to 50% principal forgiveness

24. GreenProject Reserve (GPR) • EPA defines Green Projects as practices that: • Compliment hard or gray infrastructure with soft-path technologies • Reduce the environmental footprint of water treatment, collection, & distribution • Help utilities adapt to climate change • Enhance water and energy conservation • Adopt more sustainable solutions to wet weather flows • Promote innovative approaches to water management problems

25. GPR Eligibility • Must be a Revolving Fund eligible project • Can stand alone or part of a larger project • Must meet the EPA criteria for one of the GPR subcategories: • Green Infrastructure • Energy Efficiency • Water Efficiency • Environmentally Innovative • GPR elements are eligible for up to 25% principle forgiveness

26. State Fiscal Year 2014 (SFY14) Funding Cycle

27. SFY 2014 • Applications accepted Sept. 1 - November 2, 2012 • Runs from July 1, 2013 to June 30, 2014 • Funding cycle is based on State Legislature funding for the 2013-2015 biennium (April 2013)

28. SFY 2014 Water Quality Funding Cycle

29. Funding Levels for SFY 2014 • Funding levels presented are estimated and subject to change • All funding is subject to State Legislative appropriations for the 2013-15 Biennial Budget • Federal funding subject to acts of Congress

30. SFY14 Estimated Funding *Based on past 2011-13 Biennial Budget appropriations. ** Based on past (FFY12) Congressional Budget and 2011-13 WA Biennial Budget appropriations.

31. Estimated Fund Allocations SFY2014 Centennial ---------- Spokane Extended Payment Grant $5.00 M Competitive Centennial $7.00 M Hardship Facilities $2.33 M Nonpoint Source Activities$2.33 M Competitive $2.33 M Revolving Fund ----------- Competitive Revolving Fund Loans $125.00 M 75% to Facility Loans $93.75 M 5% to Preconstruction Loans $6.25 M 20% to Nonpoint Activity Loans $25.00 M Green Project Reserves (Facility or Activity) $2.40 M Section 319 ----------- Nonpoint Source Activities Grants $ 1.5 M

32. Funding Ceiling Amounts • SRF Loans • 50% of the funding in any loan category per applicant • No more than 20% of Pre-Construction • Facility Hardship Subsidy • $5 M per project • Centennial/319 Activity Grants • $250,000 per project with 25% match (cash plus in-kind) • Maximum $500,000 with 25% match (cash)

33. Application Process

34. General Application Tips • Please do not use binders • One application per project • Have a well defined PROJECT • Keep answers to 1 page of text. • Technical Q/A review and a plain-talk review • WORK WITH ECOLOGY’S REGIONAL OFFICE STAFF

35. Application Writing Workshop • Washington Stormwater Center and WSU Puyallup Research Extension • Training available for: • Phase II Municipal Stormwater Permittees • Small Communities • 4 Locations statewide • Spokane: Friday, September 21, 2012 • Ellensburg: Tuesday, September 25th, 2012 • Everett: Thursday, September 27th, 2012 • Olympia: Friday, September 28th, 2012

36. Who is Eligible to Apply? • Local Governments • Federally Recognized Tribes • Special Purpose Districts • Non-profits (Section 319 only)

37. Application Prerequisites Puget Sound Watersheds • WRIAs 1-19 • Applications for funding in the Puget Sound watershed must be consistent with the Puget Sound Partnership’s Action Agenda

38. Questions? • Funding Programs • Application Cycle

39. Next……Breakout Sessions stormwater Activities Facilities