WHEREAS:

1. The Division of Clean Water Programs (Division) has developed the FFY 1998 SRF Loan Program Priority List based on Regional Board and public input consistent with the Federal Clean Water Act;

2. The availability of funds under the SRF Loan program and the interest expressed for developing and implementing nonpoint source pollution correction, water reclamation, storm drainage pollution correction, and estuary enhancement programs and projects support funding Priority Classes A through D in FFY 1998;

3. It is expected that the FFY 1998 appropriations bill will allow the States to fund major sewer system rehabilitation (Needs Category IIIB), new collection system (Needs Category IVA), and combined sewer overflow projects (Needs Category V) projects without limitation;

4. The SWRCB has historically deferred funding for major sewer system rehabilitation (Needs Category IIIB);

5. The SWRCB established a $50 million cap for projects on January 23, 1997, and the need exists to continue the cap for FFY 1998 to assume a reasonable distribution of the available funds; and

6. Up to four percent of the FFY 1998 federal Capitalization Grant is available for state administration.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves the placement of Priority Classes A through D on the fundable portion of the FFY 1998 Priority List;

2. Approves funding in FFY 1998 for new collection system and combined sewer overflow projects and defers funding for major sewer rehabilitation projects for FFY 1998 and directs that funding for major sewer rehabilitation projects be deferred and the projects placed on the unscheduled portion of the list;

3. Approves a $50 million funding cap on the amount of loan assistance per agency for FFY 1998;

4. Approves the set-aside of four percent of the FFY 1998 Capitalization Grant amount for SRF Loan Program administration; and

5. Adopts the Final FFY 1998 SRF Loan Program Project Priority List.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on September 18, 1997.

/s/

Maureen Marché

Administrative Assistant to the Board

Note: The priority list is not available electronically. For a copy contact Eric Torguson at (916) 227-4449