ITEM 4: USE OF TITLE II DEOBLIGATIONS TO ADMINISTER CONSTRUCTION GRANT PROJECTS

DISCUSSION: The Federal Clean Water Act of 1972 (Act) established the Clean Water Grant Program (CWGP). This enabling legislation authorized annual federal funding for the program and provided for allotments to the states.

Section 205(g) of the Act required the U.S. Environmental Protection Agency (EPA) to annually reserve four percent of each state=s allotment for administration of the CWGP. These funds had then been awarded to the states as Construction Management Assistance Grants (CMAG). The appropriations have ceased and currently the administration of the CWGP is funded with the 1984 State Bond monies.

The EPA, in their memorandum dated December 3, 1996, made available deobligated Title II funds for State administration of construction grant and Special Appropriation projects. Congress in the Federal Fiscal Year 1997 Appropriations Act permits EPA to make grants to the States for the administration of completion and closeout of a State=s Title II construction grants program.

Per EPA=s memorandum, beginning in Federal Fiscal Year 1997, assistance may be awarded to States from funds available. The first priority for the use of these funds is the completion/closeout of the construction grants program. Assistance will be awarded using the mechanisms and procedures employed for the award of CMAG under Section 205(g). While the legislation does not limit the dollar amount which may be awarded in any Fiscal Year, the award will reflect an annual budget negotiated with the State based on a specific work plan.

POLICY ISSUE: Should the State Water Resources Control Board (SWRCB) authorize the Executive Director, or his designee, to accept the Title II funds on the State Board=s behalf?

FISCAL IMPACT: The Title II funds would replace the limited 1984 Bond funds that are currently being used for program administration. If funding is received, we will need to take the appropriate budget actions to assure we have sufficient authority prior to spending any of the funds. SWRCB staff estimates that approximately $1.5 million will be needed in Fiscal Year 1997-98 to fund costs of completing the Clean Water Grants Program. In Fiscal Year 1998-99, the cost will be approximately $865,000.

REGIONAL BOARD IMPACT: None

STAFF RECOMMENDATION: That the SWRCB adopt a resolution authorizing the Executive Director, or RECOMMEN- his designee, to accept Title II funds for administering the completion and closeout of the State=s construction grants program.

WHEREAS:

1. The State Water Resources Control Board (SWRCB) is applying to the U.S. Environmental Protection Agency (U.S. EPA), Region 9, for Title II deobligations funds;

2. The funds will finance the administrative costs of California=s Clean Water Grant Program.

THEREFORE BE IT RESOLVED:

That the SWRCB authorizes the Executive Director, or his designee, to accept the U.S. EPA funds.

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 May 14, 1997.