1. Division of Financial Assistance (DFA)
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
April 2019
RECENT CHANGES TO THE POLICY FOR IMPLEMENTING THE CLEAN WATER STATE REVOLVING FUND (CWSRF)
Good Afternoon, I am here to discuss financing available thru the SWRCB, specifically the CWSRF Program. I will also touch on a few other funding programs.
Presented by:
Robert Pontureri
Division of Financial Assistance (DFA)

2. Division of Financial Assistance
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Division of Financial Assistance
Clean Water State Revolving Fund
Office of Sustainable Water Infrastructure
Small Disadvantaged Community funding for both Wastewater and Drinking Water
Water Recycling Funding Program
Many other funding programs:
Drinking Water State Revolving Fund
Sea Water Intrusion
Ground Water
Cleanup & Abatement
Areas of Special Biological Significance
Clean Beaches
Nonpoint Source Pollution
Storm Water
Underground Petroleum Tank Cleanup & Replacement
We are going to discuss the CWSRF, WRFP and Small Disadvantaged Community financing available from DFAs Office of Sustainable Water Solutions or OSWS.
Also I have listed some of the many other financing available from the State Water Boards DFA.

3. Clean Water State Revolving Fund
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Clean Water State Revolving Fund
Primarily Low Interest Loans with Limited Principal Forgiveness
$10.9 Billion Since 1989; Average $628 Million Annually
Annual Funding Target - $1 Billion
CWSRF Provides low interest loans for all types of wastewater infrastructure projects.
13 year average is $628 Million.
Funding target is $1B each year.

4. CWSRF Funding Activity
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
CWSRF Funding Activity
This slide presents a historical view of financing provided by the CWSRF over the last 13 yrs.
13-Year Avg = $628 Million
Demand is currently exceeding $8 Billion !!!

5. CWSRF Policy Background
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
CWSRF Policy Background
Policy covers CWSRF and complementary financing
Last Amended on November 28, 2018
Historical Average: 2 – 3 years
Demand on the CWSRF has greatly increased
>$8 billion
The Policy has been amended many times over the years to keep up with new regulations and an ever changing issues that arise. We are always looking to streamline our process.

6. Drivers for Recent Change
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Drivers for Recent Change
Prioritize applications
Maintain sustainable finances
Additional flexibility to deal with wide range of borrower credits
Consistency between CWSRF and DWSRF Policies
Additional Clarity
Recent changes were largely driven by our own success. Previous changes created a high demand for CWSRF funding, the recent amendment hopefully will help us manage expectations, But its tough to make everyone happy.

7. CWSRF Eligibility Projects
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
CWSRF Eligibility
Projects
(1) Publicly-Owned Treatment Works (Wastewater & Storm Water)
Plant Construction & Upgrades
Sewers and Sewer Rehabilitation
Septic-to-Sewer
Water Reclamation – Upgrades/Distribution/Storage
Solids Handling Systems
Combined Sewers
(2) Non-Point Source & Storm Water
(3) Estuary Plans (SF Bay, Morro Bay, Santa Monica Bay)
Applicants
Cities, Counties, Districts, Joint Powers Authorities, State Agencies, Non-Profits and Private Entities (Select Categories), and Tribes
Costs
Planning, Design, Construction, Construction Management, Administration, and Value Engineering
These are some of the eligible Project types, Applicant types and fundable Costs associated with the CWSRF.
Please note that we can now fund some private entities.

8. CWSRF Financing Terms Interest Rate
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
CWSRF Financing Terms
Interest Rate
Current = 1.9% (½ last CA General Obligation bond rate)
Deadlines
Applications Accepted Continuously.
Fundable List Priority Scoring Deadline: December 31st each year.
Term
Up to 30 Years or Useful Life of the Project.
Financing Amount
No Maximum! No Disbursement Cap!
Approval Based on Cash Flow.
Repayment
Annual Payments Begin 1 Year After Completion of Construction; Limited Principal Forgiveness.
CWSRF Financing Terms and Deadlines.
Note we offer limited principle forgiveness – think “grant”

9. New to CWSRF - Fundable List
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
New to CWSRF - Fundable List
Only projects on Fundable List will be eligible for financing
Small SDAC, Small DAC, and Public Health Projects automatically Fundable; not subject to scoring
All other applications will be ranked by “Priority Score”
All applications will be scored – complete & incomplete
New to the Policy is the Fundable List with project being scored and ranked based on the priority score.
All projects must be scored and placed on the Fundable list to receive funding.
Except Public Health projects and all DAC are automatically placed on the fundable list and are not scored.

10. Fundable List Applications roll over if not funded
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Fundable List
90%  125% of sustainable funding level ~ $ 1.0 billion/year
Execute agreements for all Fundable applications by end of fiscal year
Applications roll over if not funded
Our yearly Funding target is $1 Billion.
We hope to execute all Fundable list projects by the end of the fiscal year. Wait and See how that works.
Its ok, if we don’t make it the projects remain and roll to the next years fundable list at the same funding level.

11. Process DFA staff completes scoring worksheet for each Project
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
DFA staff completes scoring worksheet for each Project
Applicants review worksheets
Scores are compiled and analyzed
Draft IUP developed; routed for management approval; Board members briefed
Public Review
Address comments
IUP adopted by Board
Process
The overall process for developing the Fundable List of projects that are contained in the CWSRF IUP. The process starts January 1st and ends with adoption in June of each year.

12. Priority Scoring System
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Priority Scoring System
Priority Score will be the sum of three components:
Primary Score,
Secondary Score, and
Readiness Score
Maximum Priority Score = 16
Primary score can range between 2 Pts to 9 Pts
Secondary score range is 0 pts to 3 Pts
Readiness score can be 0 Pts to 4 Pts
Maximum score is 16 Pts

13. Priority Score Calculation Example: Critical Improvements at a WWTP
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Priority Score Calculation Example: Critical Improvements at a WWTP
Priority Score = 13
Priority Score = Primary Score + Secondary Score + Readiness Score
Readiness Score: Verify the status of the application and Plans & Specifications
Application Status: 100 % complete; Application Readiness = 2
P & S Status: 100% Complete; Construction Readiness = 2
Readiness Score = 4
Secondary Score: Verify which secondary characteristic best describes the project
The applicant has adopted a detailed Climate Change Action Plan;
the Project would help implement the plan’s objectives
Secondary Score = 3
Primary Score: Verify the purpose of the project and
the resource or impact associated with the project
Project would prevent future water quality permit violations
Primary Score = 6
This is a example of how the scores add up. 13 Pts is the total in this case.

14. Developing the Fundable List
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Developing the Fundable List
Iterative Process
After applicants review scores, all scores will be compiled and sorted highest to lowest
Applications with the same score either Fundable or not Fundable
Pick a cutoff score:
If total $ < 90% of funding target, pick a lower score
If total $ > 90% and < 125%, then ✓
If total $ > 125%, then modify scores = or > proposed cutoff score
This is where the rubber hits the road. All projects have been scored and its time to determine who is in and who is out.

15. Financial Review Changes
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Financial Review Changes
Allow Deputy Director discretion in cases where applicants have existing debt programs and are highly rated
Can accept existing definitions and covenants
New Credit Review appendix (Appendix N)
Allows Deputy Director to update process consistent with Policy requirements
Debt Service Coverage
Increased senior and parity coverage from 1.1 to 1.2 times
Lowered subordinate coverage to 1.0 times
Additional changes made within the CWSRF Policy

16. American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Other Changes
Eligible Start Date
Redefining term to allow construction costs to be eligible starting with Notice to Proceed
Planning/Design Loans
Changing from refinance to restructure to match DWSRF Policy
Also, Planning/Design Loan Application is subject to scoring and must be on Fundable List

17. American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Other Changes (cont.)
Align Water Conservation and Management with current State Law
Water Suppliers must certify meeting Division 6 of Water Code
Non-Water Suppliers must certify that area water suppliers meet Division 6
Dropping Pledged Revenues Fund Resolution, but must submit a closing resolution consistent with Gov. Code §5852.1

18. Other Changes (cont.) No longer using term “ Expanded Use” Projects
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Other Changes (cont.)
Appraisal requirement dropped for purchase of land or easements, but will be required if land is used as security
Policy generalized to apply to all types of project (i.e., “Project” Financing)
No longer using term “ Expanded Use” Projects
Pre-Payments require consent
Dropped the term for expanded use projects. They are still eligible as a NPS project.

19. Office of Sustainable Water Solutions
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Office of Sustainable Water Solutions
Disadvantaged Community Assistance
Wastewater Rate DAC: Rate >1.5% of MHI;
DAC/SDAC Population < 20,000;
Community MHI < 80% of statewide MHI = DAC
Community MHI < 60% of statewide MHI = SDAC
Technical Assistance available to assist DACs
Loan and Grant financing available:
Principal Forgiveness, Small Community Grant (SCG) Fund, Bond Funds from Prop 1 and Prop 68
Application forms and approval process same as CWSRF
Applications Accepted Continuously – No deadlines!
Office of Sustainable Water Solutions has funding available. Low interest loan and grant funds available for planning and construction projects. Loan terms are the same as the CWSRF. Utilizes the CWSRF Policy.
Our IUP will have specific eligibility requirements and funding limits for grants may apply.
No Deadlines, always accepting applications.

20. Water Recycling Funding Program
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Water Recycling Funding Program
Promote Wastewater Reuse to Augment/Offset State/Local Fresh Water
Applications Accepted Continuously
Application forms and approval process is the same as the CWSRF
Low Interest Loans + Minimal Grants
1.9% Rate ($137M Prop 1 loans) (Limited Prop 68 construction grants)
Planning grants – 50% of eligible costs up to $75,000
Applicants
Public Agencies and Privately-Owned Utilities Regulated by Public Utilities Commission
Projects
Treatment, Distribution, Groundwater Recharge, Feasibility Studies, Research
Costs
Planning, Design, Construction, Construction Management, Administration, and Value Engineering

21. Financial Assistance Application Submittal Tool (FAAST)
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Financial Assistance Application Submittal Tool (FAAST)
Now accepting All CWSRF, Wastewater, Water Recycling, and SDAC Funding Applications
Easy Document Uploading
Accepts both Initial and Post Submittals

22. American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Contacts
CWSRF/WRFP Program Management Mr. Christopher Stevens Supervising Engineer (916) Wastewater Mr. Robert Pontureri Senior Engineer (916) Water Recycling Mr. Michael Downey (916)
OSWS Program Management Ms. Nicole Morgan Supervising Engineer (916) Small Communities Ms. Jennifer Toney Senior Engineer (916) Ms. Wennilyn Fua (916)

23. More Information Division of Financial Assistance
American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
More Information
Division of Financial Assistance
Clean Water State Revolving Fund
Office of Sustainable Water Solutions
Water Recycling Funding Program

24. American Public Works Association Annual Streets & Technology Conference 2019
April 10, 2019
Questions
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