Recycled Water Funding Programs
Financial assistance programs play a critical role in the development of recycled water supplies. There are a number of financial assistance programs available to San Diego County agencies: the Authority's Financial Assistance Program (FAP) and Reclaimed Water Development Fund (RWDF); the Metropolitan Water District of Southern California’s Local Resources Program (LRP); the U.S. Bureau of Reclamation's Title XVI Grant Program; and the State Water Resources Control Board's low-interest loan programs. Together, these programs offer funding assistance for all project phases, from initial planning and design to construction and operation.
Financial Assistance Program (FAP)
FAP provides loans to Authority member agencies for water recycling facilities
planning, feasibility investigations, preliminary engineering studies and research
projects related to water recycling and/or groundwater development. The Authority
provides funding on a 50:50 cost sharing basis up to $50,000 for any given project
activity. The total FAP funds allocated to one water recycling project or groundwater
basin cannot exceed $150,000. Agencies receiving FAP funds are required to reimburse
the Authority when implementation of the project results in funding from other
sources, such as the RWDF or LRP, or within 5 years of certification of the
project environmental report, whichever occurs first.
FAP funds are also now available for research and development in the form of
grants. In order to receive FAP funding for these types of studies, a local
agency must have secured partial funding from at least one other source such
as the American Water Works Association Research Foundation (AWWARF), Desalination
Research and Innovation Partnership (DRIP), Water Environmental Research Foundation
(WERF), Proposition 13, etc. Two or more local agencies grouping together for
research and development studies will not be required to secure funding from
other sources. Funding will be limited to 25 percent of the remaining local
agency study cost, up to a maximum of $25,000.
Reclaimed Water Development Fund (RWDF)
The RWDF provides Authority member agencies financial assistance
up to $100 per acre foot for the development of recycled water projects capable
of relieving a demand on the Authority. Project expenses must exceed project
revenues. Funding is available for up to 25 years based on financial need.
Local Resources Program (LRP)
The LRP is designed to ensure the financial feasibility of local projects during
the initial years of operation. The Metropolitan Water District of Southern
California offers an incentive of up to $250 per acre foot for up to 25 years
for recycled water and groundwater development projects that offset demands
for imported water. Agencies interested in obtaining LRP funding for new projects
must submit project proposals to Metropolitan for consideration. Proposals for
LRP funding will be accepted by Metropolitan until 4:00 p.m. on Dec. 1, 2003.
A copy of Metropolitan's Request for Proposals for LRP funding may be obtained
at Metropolitan's web site at www.mwdH2O.com.
Reclamation Wastewater and Groundwater Study and Facilities Act - Title XVI
The Title XVI is a significant source of funding for San Diego area water recycling
projects. Title XVI of Public Law 102-575, the Reclamation Wastewater and Groundwater
Study and Facilities Act, authorizes the federal government to fund up to 25%
of the capital cost of authorized recycling projects, including the San Diego
Area Water Reclamation Program, an interconnected system of recycling projects
serving the Metropolitan Sewage System service area. PL 104-266, the Reclamation
Recycling and Water Conservation Act of 1996, authorized two additional projects
in northern San Diego County - The North San Diego County Area Water Recycling
Project and the Mission Basin Brackish Groundwater Desalting Demonstration Project.
State Revolving Fund (SFR) / Water Recycling Loan Program (WRLP) / Water
Recycling Grants (WRG)
The SRF, WRLP and WRG provide agencies with low interest construction loans
for water recycling and groundwater development projects. These loans carry
an interest rate equal to half of the State's general obligation bond interest
rate. This below market interest rate can result in substantial savings on debt
service. Water Recycling Grants, subject to availability, provide up to 25%
of eligible construction costs with a maximum $5 million cap per agency. Planning
grants of up to $75,000 maximum are also provided for eligible facilities planning
/ feasibility study costs.
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