Sustainable Groundwater Management Act Engaging with GSAs OUTLINE Financing Collaboration amp GSA Formation Short Term Immediate DWR Facilitation Services amp Technical Assistance ID: 599713
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Slide1
FINANCING GROUNDWATER SUSTAINABILITY
Sustainable Groundwater Management Act: Engaging with GSAsSlide2
OUTLINE
Financing Collaboration & GSA
Formation
Short Term/ ImmediateDWR Facilitation Services & Technical AssistanceSWB Technical AssistanceFee-for-Service ConsultantsLong-Term/ SustainedProp 1 Competitive SGMP Enhanced Infrastructure Financing DistrictsExisting RevenueIRWM fundsFinancing GSA Function & GSP Development:All of the above, plus:SGMA authority to levee feesState LoansFederal Grants & LoansSlide3
Financing
Collaboration
& GSA Formation: Short Term/ ImmediateSlide4
DWR Facilitation Support Services
& Technical Assistance
Continuous, as-needed basisPriority:Newly forming GroupsNo previous facilitation
Convening GSAsDeveloping GSPsApply:Contact Regional OfficeComplete Applicationhttp://www.water.ca.gov/irwm/partnership/facilitation_services.cfmSlide5
DWR Facilitation Support Services
& Technical Assistance
Who’s Eligible:
Water Management Groups meeting the following 4:Committed to collaborating w/ others on SGMA or IWM goals,Clearly defined need for professional facilitation, Committed to meeting & working toward defined goalsCommitted to providing logistical & admin support.What’s Covered:Strategic Planning Stakeholder ID & OutreachStakeholder AssessmentStakeholder Liaison & MediationGovernance AssessmentPublic OutreachSlide6
SWB Technical Assistance
Multidisciplinary
Small DACsOffice of Sustainable Water SolutionsFunding applicationsBudgetsFinancial management
Rate settingCompliance audits Troubleshooting to improve operationsApply: http://www.waterboards.ca.gov/water_issues/programs/ grants_loans/ proposition1/tech_asst_funding.shtmlSlide7
Fee-for-Service Consultants
What others are using it for
Needs assessments & technical studiesStakeholder engagement & facilitationWriting funding proposalsCollecting & analyzing dataHow to cover costsJoint funding proposal
General FundOperating BudgetCapital ImprovementsSlide8
Financing
Collaboration
& GSA Formation Long Term/ Sustained FundingSlide9
Prop 1 Groundwater $
ustainability
$800 million – GW Pollution Prevention & Clean-up (SWB)$100 million – Local GW Management Plans & Projects (DWR)-------------------------------------------------------------------$900 million – TotalSlide10
Prop 1 Competitive SGWP
“…p
rojects that develop and implement sustainable groundwater planning and projects consistent with Division 6 of the California Water Code…” $ 100 million total - $ 6.7 million allocated
---------------------------------- $ 93.3 million remaining2017 Solicitation
Who can apply:
Public agencies
Non-profits
Public utilities
Federally recognized tribes
State Indian tribes
Mutual water companies Slide11
DWR’s Sustainable Groundwater Planning (SGWP) Grant Program
Sustainable Groundwater Planning
$83 Million
Aligned w/ Regulations timeline (6/2016)Assist local agencies w/ gw sustainability governance & planningCounties with Stressed Basins$10 Million(first round past 12/2016)Update or develop local ordinances & plansFacilitate basin-wide gw sustainabilitySlide12
“Counties with Stressed Basins”
$ 10 million
allocated
- $ 6.7 million awarded-------------------------------- $3.3 million remaining(added to 2017 round)21 counties award (including San Joaquin) Project Types:Groundwater ordinancesGroundwater management plansInteragency agreementsData, research, planningSlide13
San Joaquin County Sustainable Groundwater Management Act Readiness Project
Total:
$ 499,900
Awarded: $ 249,950Work Plan:Ag Water Demands & Surface Water BudgetSan Joaquin County Hydrologic Model Comprehensive Basin-Scale Water Budget Groundwater Monitoring & Enhancement ProgramSlide14
Enhanced Infrastructure
Financing Districts (EIFDs)
SB 628 (2015)
City &/or County Specific purpose or projectNew constructionRehabilitationUtility-related infrastructureSpecial Districts (not schools) can participateCollect tax-increment revenues Recruit private investmentSlide15
EIFDs: Benefits & Limitations
Can
be used for:
Can’t
be used for:
Sewage treatment, water reclamation plants and interceptor pipes.
Facilities to collect and treat water for urban
uses.
Flood
control levees and dams, retention basins and drainage channels.
Parks
, recreational facilities and open space.
Projects that implement a sustainable communities strategy.
Routine O & M
SchoolsSlide16
EIFDs: Benefits & Limitations
Benefits
Only 55% voter approval needed to establish
No public vote
required for projects (only tax increment bonds; 55%)
Can fund large projects
Multiplier effect for future tax revenue
E
xpanded financing authority
More flexible institutional collaboration
Limitations
Reserve needed prior to bond issuance
Limited ability to repay short-term debt service
Formation process can be lengthy & costly
Need cities & counties for success
Must establish proportionality nexus between payer & beneficiary (to satisfy Prop 218 & 26)Slide17
How to Create an EIFD
Identify what needs to be done (desired outcomes)
Locate available funding streamsAssessment revenuesFee revenuesPublic DebtEstablish link between payer & beneficiarySlide18
EIFD Examples & Resources
12 Funding strategies
Guidelines
Case studies California Economic Summit,“A How-To Guide for Using New EIFDs.”https://cafwd.app.box.com/s/p8re0h7s6vkhm1st2uwqLeague of California Cities, Analysis of SB 628 (EIFD)http://www.cacities.org/CMSPages/GetFile.aspx?nodeguid=d8e42eca-7647-4f12-98d4-e93383abc48c&lang=en-USEIFDistricts.comhttp://www.eifdistricts.com/Slide19Slide20
Existing Revenue
ILGSlide21
Existing Revenue
ILGSlide22
Existing Revenue Sources
General Fund
Not restricted to specific purpose
Public services & salariesFlexibleCompetition for other prioritiesUsually limited & allocated in advanceSpecific FundSpecial public servicesDedicated funding streamFunds restricted to specific purpose
Capital Fund
Long-term investments
Planned in advance
All infrastructure & facilities costs
Cannot be used for other purposesSlide23
Existing Revenue for SGMA
General Fund
GSA Participation
Education & OutreachResearch StudiesPlanning ActivitiesPolicy developmentSpecific FundGroundwater use fee to fund SGMA-related effortsStormwater, Water supply, Wastewater funds may be applicable to groundwater-related effortsParcel tax for SGMA efforts
Capital Fund
Water conveyance &/or storage
Groundwater monitoring wells
Stormwater capture & infiltrationSlide24
Integrated Regional Water Management (IRWM)
48 Regions Across the State
$993 million public investment since 2002Leveraged $4 billion match700 projects
Fosters collaboration across sectors; bridging water & land useBut, little authoritySlide25
Draft Guidelines, PSP, & DAC Involvement
Public comment
1/22 – 3/18/2016Final 4/2016Due ~7/2016?Awards ~10-12/2016?50% local cost share
$5 M Planning
$
51 M
DAC
$418 M Implementation
+
(
$36
M internal costs)
----------------------------------------
$510 M TOTALSlide26
Prop 1 IRWM F
unds
Purpose/ Goal: “…encourage integrated regional strategies for management of water resources by providing funding for projects and programs that support integrated water management.”
CA Water Action Plan Priority 6: “Expand Water Storage Capacity and Improve Groundwater Management”Eligibility:consistent w/ IRWMPrecognized RWMGProject proponents must adopt the IRWMPMust comply w/ groundwater planning (GWMPs or GSPs)Who can apply: Public agencies Non-profitsPublic utilitiesFederally recognized tribesState Indian tribes
Mutual
water companies Slide27
IRWM Funds
Stockton: San Joaquin River Funding Area
$31 Million8 Regional Water Management GroupsStockton: #8; Eastern San JoaquinSlide28
IRWM Funds
Marysville: Sacramento River Funding
Area: $37 Million 6 Regional Water Management GroupsMarysville: Yuba County IRWMSlide29
Prop 1 IRWM funds
Can
be used for:
Water reuse & recyclingWater use efficiency & conservationSurface & groundwater storageRegional conveyanceStormwaterConjunctive use (storage)DesalDecision SupportWater qualityCan’t be used for:Adverse impacts to wild & scenic riversEminent DomainDelta conveyanceWater acquisition (except for additional env. flows)Legal or regulatory obligationsSlide30
Financing GSA Function &
GSP Development:
Facilitation services (DWR/SWB)Fee-for-Service ConsultantsProp 1 fundsEIFDsExisting RevenueIRWM Funds+
SGMA Authority to Levee FeesState loans & other grant programsFederal loans and grantsSlide31
SGMA Authority to Levee Fees
CWC, Division 6, Chapter 8, Section 10730: Financial
Authority
(a) A groundwater sustainability agency may impose fees, including, but not limited to, permits and fees on groundwater extraction or other regulated activity, to fund the costs of a groundwater sustainability program, including, but not limited to, preparation, adoption, and amendment of a groundwater sustainability plan, and investigations, inspections, compliance assistance, enforcement, and program administration, including a prudent reserve.Slide32
GSAs Can Impose 3 Types of Fees:
Permit
fees on groundwater extractionFees to fund the cost of a Groundwater Sustainability Plan (GSP)Fees to fund investigations, inspections, compliance assistance, enforcement and program administration
.Slide33
SGMA Authority to Levee Fees
PRO
Pros
Can cover a wide range of costs & services
Can assess as soon as GSA is filed with DWR
Provides stable revenue for ongoing efforts
Cons
Considered a parcel tax or use tax
Subject to Prop 218 and/or Prop 26 process
*A
GSA could enact a fee on the basis that all pumpers in a basin contribute to the costs of sustainable management regardless of whether they experience identical impacts from pumping
or recharge activities.Slide34
Other State & Federal Programs
GHGRF/ California Climate Investment
Strategic Growth Council/ Sustainable Community StrategiesState Infrastructure LoansCalConserve Revolving Fund 2015 Loan Program.Federal Grants & LoansSlide35
Next Steps
Complete LGC’s online evaluation survey.
Find out who’s leading the GSA formation process in your area.Sign up for DWR’s SGMA email list.Determine what role your organization wants to have.
Come to our next round of trainings!Slide36
Many Thanks for your attention today – we hope this was beneficial for you!
Danielle V. Dolan
Water Program Manager(916) 448-1198 x311ddolan@lgc.org