ITEM 4: STATE FISCAL YEAR (SFY) 1997/98 INTENDED USE PLAN (IUP) AND FEDERAL FISCAL YEAR (FFY) 1998 FEDERAL CAPITALIZATION GRANT ACCEPTANCE

DISCUSSION: Federal regulations (40 CFR 35.3150) require the State to submit an annual IUP to the United States Environmental Protection Agency (EPA). The Division of Clean Water Programs (DCWP) has prepared a proposed SFY 1997/98 IUP consistent with federal rules which describes the intended uses of State Revolving Fund (SRF) monies for SFY 1997/98. A copy of the SFY 1997/98 IUP based on a FFY 1998 federal appropriation of $96,306,309 is contained in Exhibit A.

The DCWP proposes that the Executive Director be authorized to accept the FFY 1998 Capitalization Grant in the amount of $96,306,309.

The federal appropriation requires a 20 percent state match. The match money ($19,261,262) for the FFY 1998 Capitalization Grant will be provided from the $80 million in SRF match money contained in the Safe, Clean, Reliable Water Supply Act passed by the voters on November 5, 1996.

POLICY ISSUE: Should the State Water Resources Control Board (SWRCB) approve the SFY 1997/98 IUP, and authorize the Executive Director to accept the FFY 1998 SRF Capitalization Grant?

FISCAL IMPACT: The State match of $19,261,262 will be provided from the $80 million in general obligation bonds made available for the SRF Loan Program in the Safe, Clean, Reliable Water Supply Act passed by the voters on November 5, 1996.

RWQCB IMPACT: None.

STAFF RECOMMENDATION: That the SWRCB adopt a resolution 1) approving the SFY 1997/98 IUP; and 2) authorizing the Executive Director to accept the FFY 1998 SRF Capitalization Grant and any amendments thereto.

DRAFT March 16, 1998

WHEREAS:

1. The Division of Clean Water Programs has prepared a draft SFY 1997/98 IUP in compliance with federal rules, and such plan must be submitted annually;

2. Congress has appropriated FFY 1998 State Revolving Fund (SRF) monies in the amount of $96,306,309 and the Division of Administrative Services will make application for the funds;

3. The state match of $19,261,262 will be provided by the Safe, Clean, Reliable Water Supply Act; and

4. Authorization to accept the FFY 1998 SRF Capitalization Grant award is needed.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves the SFY 1997/98 IUP; and

2. Authorizes the Executive Director to accept the FFY 1998 SRF Capitalization Grant, and any amendments thereto.

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 March 25, 1998.

Maureen Marché

Administrative Assistant to the Board