Water Quality Financial Management Section Rule Revisions - Table of Issues

            Email comments on this rule | Send comments by mail | Return to Main Page

  1. State Revolving Fund Perpetuity and Interest rates

     

    Present Provision: Challenges: Questions or Comments:
    The federal Clean Water Act requires the SRF program to be self-sustaining A recent study on the sustainability of the SRF program determined that the current interest rates are too low to ensure Fund perpetuity State Revolving Fund Perpetuity and Interest rates

     

  2. Hardship Provisions

     

    Present Provision: Challenges: Questions or Comments:
    The current hardship threshold is a sewer rate of 1.5% of median household income.  Rates higher than 1.5 indicate hardship.

    Hardship funding usually consist of longer loan terms, lower interest rtes, companion grants, and occasionally an unemployment differential.

    Declining revenue

    About 20% of SRF portfolio is at zero (0%) interest

    Maintaining perpetuity

    Can some communities afford some level of interest on loans?

    Making loans affordable for communities that demonstrate hardship

    Hardship Provisions

     

  3. Allocation for Centennial Grants for Facilities and Activities

     

    Present Provision: Challenges: Questions or Comments:
    Two-thirds (2/3) of competitive funding is set aside for facilities hardship grants, and one-third (1/3) is set aside for nonpoint activities grants such as TMDL implementation. What is an appropriate allocation?

    Does the current allocation still work?

    Allocation for Centennial Grants for Facilities and Activities

     

  4. Maximum Financial Assistance Provisions--Centennial

     

    Present Provision: Challenges: Questions or Comments:
    Activities--$250,000 grant with a 25% cash, in-kind, or interlocal match,
    or
    $500,000 grant with a 25% cash only match.

    Activities--loan ceiling of $500,000 with no matching requirement

    Are ceiling amounts appropriate?

    Do they suit current and emerging needs?

    Maximum Financial Assistance Provisions--Centennial

     

  5. Evaluation Criteria

     

    Present Provision: Challenges: Questions or Comments:
    Present rule criteria are:

    1. Public health & water quality impairments--34%

    2. How project will address water quality problem & measures of success--34%

    3. Local initiatives taken to make project a success-12%

    4. State of Washington or federal mandates project addresses-10%

    5. Local Priority setting-10%

    What is an appropriate benchmark to set baseline priorities? Evaluation Criteria

     

  6. Funding Threshold

     

    Present Provision: Challenges: Questions or Comments:
    No provisions in rule for a cutoff level in which projects that fall below that level would not be funded.  However the Joint Legislative Audit and Review Committee (JLARC) recommended consideration What is the appropriate benchmark or cutoff level in which to consider projects for funding?  Funding Threshold

     

  7. Grant Eligibility --Best Management Practices (BMPs) on Private Property

     

    Present Provision: Challenges: Questions or Comments:
    Grant eligible BMPs are currently limited to the riparian (streamside) corridors, for activities such as fencing and revegetation Limited grant dollars

    Appropriate use of public funds on private property

    Grant Eligibility --Best Management Practices (BMPs) on Private Property

     

  8. "Step-4"Design-Construct (this is different than Alternative Contracting--Design build)

     

    Present Provision: Challenges: Questions or Comments:
    The existing rule provisions permit Ecology to enter into "Step 4" Design-Construct agreement for relatively small projects that do not exceed $1 million of the total eligible project costs funded through Ecology Ecology has been asked to raise the ceiling amount for "Step 4" to reflect higher construction costs.

    Projects that have completed facilities planning (only) often face unknown issues that can prevent the progression through the design and into construction in a timely way

    "Step-4"Design-Construct

     

  9. Alternative Contracting/Service Agreements (AC/SA--Design/Build)

     

    Present Provision: Challenges: Questions or Comments:
    No formal rule, but there is an SRF pilot rule in place that provides for large- scale, long-term loans under this provision.  AC/SA projects can proceed without first completing the "STEP" process (plan, design, build) in which one step must be completed before the next step is started. Obligating the entire project costs from the SRF may result in financially distressed communities receiving hardship loans.

    Large-scale, long-term, and low-interest loans threaten the perpetuity of the SRF

    At what point should an entity apply for funding (after they've secured the design team . .?)

    Alternative Contracting/Service Agreements (AC/SA--Design/Build)

     

  10. Outcome Funding

     

    Present Provision: Challenges: Questions or Comments:
    Existing rules contain "measures of success" as an evaluation criterion

    The Joint Legislative Audit and Review Committee (JLARC) recommended, and the Legislature  mandated (in 2002) that Ecology implement a more formal outcome-based strategy

    Outcomes take time to document

    Resources to document the measures are limited

    Requirements may need more regulatory direction to address the statute

    Outcome Funding

     

  11. Timeline for The Rule Amendment Process

     

    Present Options: Challenges: Questions or Comments:
    Shorter timeframe--complete process for all issues and implement rule amendments for the Fiscal Year (FY) 2007 funding Cycle

    Shorter timeframe--narrower scope of work--only amend "financial aspects" of the rule and amend the "technical" aspects later.

    Longer timeline--complete process for all issues and implement for FY2009 funding cycle

    May need more time for adequate/thoughtful input

     

    Can the financial and technical issues be effectively separated or is it detrimental to try and separate them?

    Longer timeline may jeopardize perpetuity of the SRF Fund

    Timeline for The Rule Amendment Process


     

  12. Miscellaneous  Comments Not Found Under Topics Above

     

    Present Options: Challenges: Questions or Comments:
        Miscellaneous comments not found under topics above

 

Back to top of page