ITEM: 1

SUBJECT: NOTICE OF PULIC HEARING ON PROPOSED STATE FISCAL YEAR (SRY) 1998/99 STATE REVOLVING FUND (SRF) LOAN PRORAM PROJECT PRIORITY LIST

[Attachments to the Hearing Notice not available electronically but can be obtained by calling Eric Torguson at (916) 227-4449.]

The State Water Resources Control Board (SWRCB) is changing the SRF Loan Program as well as the SRF Priority List from a Federal Fiscal Year (October 1 to September 30) to a State Fiscal Year (July 1 to June 30).

It is estimated that about $1.0 billion will be appropriated nationally for State Fiscal Year (SFY) 1998/99 for SRF loans. These monies can be used for construction of wastewater treatment and water reclamation facilities, correction of nonpoint source and stormwater pollution problems, and implementation of estuary enhancement activities. California can expect to have about $90 million available for loans in SFY 1998/99. The adopted SFY 1998/99 Project Priority List will be used to determine the projects that can compete for loan assistance in SFY 1998/99.

This announcement is to inform interested and affected parties of the scheduled Public Hearing to discuss approval of the draft SFY 1998/99 Project Priority List.

The Division of Clean Water Programs (Division) has developed a draft SFY 1998/99 Project Priority List. Attached is a copy of the draft list which reflects current comments and recommendations from the Regional Water Quality Control Boards and the State Water Resources Control Board (SWRCB) staff. Due to lack of complete submittals, some Regional Board recommendations have not yet been incorporated in the list. In these Regions, last year's projects have been carried forward. The staff recommendations for these Regions should be available at the Public Hearing.

Projects must appear on the Priority List to qualify for loan assistance. Though projects may be identified on the fundable portion of the Priority List, appearance on the list is not a commitment to provide loan assistance. Projects that fail to meet scheduled dates may be bypassed in favor of lower ranked projects that are ready to proceed to construction.

ISSUE 1: Should a cap on the loan amount per agency be imposed for SFY 1998/99?

RECOMMENDATION: The SWRCB estimates that about $90 million will be available in SFY 1998/99 for commitment by the SWRCB. The Division, based on analysis of project schedules and costs recommends that the cap be set at $10 million for SFY 1998/99. This cap would only apply to projects brought before the SWRCB for a preliminary loan commitment in SFY 1998/99. This action would not effect applicants who received preliminary loan commitments from the SWRCB prior to July 1, 1998.

ISSUE 2: Should the SWRCB set aside SRF loan funds in SFY 1998/99 for major sewer rehabilitation projects?

RECOMMENDATION: Major sewer rehabilitation projects may be funded from the regular allotment. Since the current Priority List contains over $4 billion in projects for funding already scheduled for SFY 1998/99, the staff proposes that the SWRCB not fund major sewer rehabilitation projects in SFY 1998/99.

ISSUE 3: Should the SWRCB adopt the SFY 1998/99 SRF Loan Program Project Priority List?

RECOMMENDATION: The staff recommends approval of the SFY 1998/99 SRF Loan Program Project Priority List.

You may submit written comments and/or give oral statements. Written comments should be submitted as early as possible to allow for thorough staff analysis. All comments are due by 5:00 p.m. on May 13, 1998 and should be directed to Mr. Eric Torguson, Chief of the Management Support Section, Division of Clean Water Programs, P.O. Box 944212, Sacramento, California 94244-2120

Public parking is available in the State Garage on Tenth Street between "O" and "P" Streets, in metered spaces on area streets, and the State Garage at 1517 Eleventh Street. The Bonderson Building First-Floor Hearing Room is accessible to persons with disabilities.

1. SWRCB Workshop, June 3, 1998, commencing at 9:00 a.m. (Hearing Room, First Floor, 901 P Street).

2. SWRCB Meeting, June 18, 1998, commencing at 9:00 a.m. (Hearing Room, First Floor, 901 P Street).

3. Environmental Protection Agency (EPA) approval of the SFY 1998/99 SRF Loan Program Priority List by August 1, 1998.

Gus Atkins, Division of Clean Water Programs (916) 227-4475.

_______________________________________

Maureen Marché

Administrative Assistant to the Board

Dated: March 27, 1998