State Assistance to Disadvantaged Communities During California s Historic Drought

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STATE WATER RESOURCES CONTROL BOARD DIVISION OF FINANCIAL ASSISTANCE State Assistance to Disadvantaged Communities During California s Historic Drought November 6, 2017 Presented By: Joe Karkoski P.E. 1

Outline Background on Drought in California Policy Considerations Funding Emergency Drought Response Funding post-drought Lessons Learned/Challenges 2

California s Drought The drought that spanned water years 2012 through 2016 included: The driest four-year statewide precipitation on record (2012-2015). The smallest Sierra-Cascades snowpack on record (2015, with 5 percent of average). Extraordinary heat: 2014, 2015 and 2016 were California s first, second and third warmest year in terms of statewide average temperatures. 3

California s Drought 4

California s Drought 5

Groundwater and Drought 6

Groundwater Use/Contamination Contaminant levels in drinking water aquifers increased during the drought Contamination of groundwater wells requires treatment or that the well not be used 7

Human Right to Water Policies On September 25, 2012, the State of California adopted the Human Right to Water "every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes." Focuses agency efforts on Disadvantaged Communities community median household income (MHI) < 80% of Statewide MHI 8

DAC Income vs. Rent $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Chart Title 2012 2013 2014 2015 Rent/MHI Median Rent 80% Annual MHI 30.6% 30.4% 30.2% 30.0% 29.8% 29.6% 29.4% 29.2% 29.0% Data from US Census Bureau American Community Survey 9

Policies (cont.) Drought Emergency Declaration On January 17, 2014, Governor Brown signed a Proclamation of a State of Emergency Assist Californians facing drinking water shortage. Gave state water officials more flexibility to manage supply throughout California under drought conditions Provide emergency food/water supplies, financial assistance, and unemployment services in communities that suffer high levels of unemployment from the drought. 10

Water Action Plan Policies (cont.) The California Water Action Plan (WAP) was released by the administration of Governor Brown in January 2014 as a roadmap The WAP has been developed to meet three broad objectives: 1) more reliable water supplies 2) the restoration of important species and habitat; and 3) a more resilient, sustainably managed water resources system (water supply, water quality, flood protection, and environment) that can better withstand inevitable and unforeseen pressures in the coming decades. 11

Consolidation Policies (cont.) State Water Board can require water systems that consistently fail to provide safe drinking water to consolidate with, or receive an extension of service from, another public water system. Consolidation can be physical or managerial. Workers lay water pipe near Matheny Tract in 2013. LEWIS GRISWOLD lgriswold@fresnobee.com 12

Policies (cont.) Sustainable Groundwater Management Act (SGMA) Establishes a definition of sustainable groundwater management Requires formation of Groundwater Sustainability Agencies (GSAs) Requires that a Groundwater Sustainability Plan be adopted for the most important groundwater basins in California Establishes a timetable for adoption of Groundwater Sustainability Plans Empowers local agencies to manage basins sustainably Establishes basic requirements for Groundwater Sustainability Plans Provides for a limited state role 13

FEDERAL DROUGHT EMERGENCY FUNDING SOURCES Below is summary table of the various funding from Federal Agencies for various projects addressing drought related issues. Funding Agency U.S. Department of Agriculture (USDA) Funding Program Emergency Community Water Assistance Grants (ECWAGs) Purpose Grants for decline in quantity or quality of drinking water in towns up to 10,000 population. U.S. Department of Agriculture (USDA) U.S. Department of Agriculture (USDA) U.S. Department of Agriculture (USDA) Rehabilitation Loan & Grant (504) Rural Housing Direct Loan Program (502) Rural Utilities Service (RUS) Loans and grants to homeowners to repair their homes in towns up to 25,000 population. Grants limited to age 62 or older. Loans to individuals to repair their homes in towns up to 25,000 population. Applicants must meet repayment requirements. Administers programs that provide much-needed infrastructure or infrastructure improvements to rural communities (population less than 10,000). Grants are available to non-profit organizations to provide technical assistance and training to help rural communities with their water problems. 14

STATE DROUGHT EMERGENCY FUNDING SOURCES Below is summary table of the various funding from other State Agencies for various projects addressing drought related issues. Funding Agency Office of Emergency Services (OES) Housing and Community Development (HCD) Housing and Community Development (HCD) Funding Program California Disaster Assistance Act (CDAA) $ 2.1 Million Community Development Block Grant Program (CDBG) Drought Housing Relocation Assistance Program Purpose Provide bulk water (at County OES request) to local governments. Grant to cities and counties for water or sewer infrastructure systems (public or private), private lateral installation, and well abandonment. Relocation grant to cities and counties for families that wish to move from a community / residence lacking potable water to a new residence that has potable water. Department of Water Resources Drought Emergency Response Program (DERP) Grants for connections to public water system, new wells, and other non-eligible cost from other agencies (County and State OES, USDA, SWRCB, HCD). 15

STATE WATER BOARD DROUGHT EMERGENCY FUNDING SOURCES The State Water Board, through the Cleanup and Abatement Account (CAA) and Public Water System Drought Emergency Response (PWSDER) has provided emergency grant funding to address drought and contamination Year Amount to Address Contamination 2012 $ 2.1 Million Public Agencies Eligible Applicants Non-Profit Organizations and Tribal Governments serving DACs Status Currently Accepting Applications 2014 $ 4 Million 2015 $ 4 Million Public Agencies, Non-Profit Water Districts, Non- Profit Organizations and Tribal Governments serving DACs Public Agencies Community Water Systems, Non-Profit Organizations and Tribal Governments serving DACs Closed Closed 2016 $4 Million Public Agencies, Non-Profit Water Districts, Non-Profit Organizations and Tribal Governments serving DACs Currently Accepting Applications 16

STATE WATER BOARD DROUGHT EMERGENCY FUNDING SOURCES The State Water Board, through the Cleanup and Abatement Account (CAA) and Public Water System Drought Emergency Response (PWSDER) has provided emergency grant funding to address drought and contamination Year Amount to Address Drought Eligible Applicants Status 2014 $ 15 Million 2015 $ 15 Million Community Water Systems, Public Water Systems (owned by school districts) Public Agencies Community Water Systems, Non-Profit Organizations and Tribal Governments serving DACs Closed Closed 2016 $15 Million Public Agencies, Non-Profit Water Districts, Non-Profit Organizations, Tribal Governments Closed 17

Bottled Water Types of Projects (include, but not limited to) Well Repair, Rehabilitation, and Replacement Hauled Water Emergency Interties/Consolidation Treatment Systems 18

Emergency Drought Projects funded by the State Water Board (2014 Present) Number of Projects 12 21 57 116 Total Funded = $50,506,838 Total Projects = 353 Approx. # of Residents =528,811 Approx. # of Connections/Households= 166,123 Residents/Households served includes some double-counting when multiple projects funded a given community 123 24 $25,000,000 $22,740,640 $20,000,000 $15,000,000 $14,253,718 Bottled Water $10,000,000 Consolidation Well $5,000,000 $- $4,090,121 $4,114,032 $781,248 $4,527,078 Tank Other* Treatment *Water vending machine, Offset water costs, Seismoelectric survey 19

BOTTLED WATER PROJECTS County has established two bottled water programs: Countywide Bottled Water Program: Over 1500 Households East Orosi with ($199,167) : dry or contaminated wells. A severely disadvantaged Countywide Schools Bottled Water Program: County has community with wells that identified 28 eligible schools (only 10 have accepted), that exceeded have the MCL for nitrate. contaminated water sources. Bottled water was provided for 105 households with 500 residents. Tooleville ($49,992): Tooleville Water Company serving a disadvantaged community with two wells exceeding the MCL for nitrate. Bottled water provided for 76 households. 20

CONSOLIDATION PROJECTS City of Farmersville ($463,894): The project consists of expanding the water distribution system to the Cameron Creek Colony community with 400 residents and 105 connections. 21

WELL INFRASTRUCTURE PROJECTS Ali Mutual Water Company ($267,158) : The project consists of installing a new well, storage tank and booster pump for hauled water. The project will provide water to 50 residents and 14 connections. 22

PUMP INSTALLATION PROJECTS Seville Water Company ($275,000): The project consists of installing a new storage tank and installing two booster pumps. The project will provide water for 400 residents and 77 connections. 23

HOUSEHOLD & SMALL WATER SYSTEM DROUGHT ASSISTANCE PROGRAM (HSWSDAP) 24

Program Background - Purpose On December 15, 2015, the Board approved the allocation of up to $5 Million for providing interim or permanent drinking water solutions to individual households and small water systems serving less than 15 connections. Funding limited to address drought-related emergencies only 25

Program Background - Funding Funding Administered by 3 Non-Profits: Self Help Enterprises - $3.5M Rural Community Assistance Corporation - $1M California Rural Water Association - $500,000 Funds are available as: Grants, Loans, or some combination Eligibility is based on: Household Income (as % of the Statewide MHI) and Affordability (as Debt to Income ratio) 26

Program Background - Funding Funding Limits Up to $45,000 for Individual Households Up to $100,000 for Small Water Systems Funding Priority Disadvantaged communities and low-income households 27

Program Background Eligible Projects Eligible Project costs include, but are not limited to: New Well Construction Well Rehabilitation/Repair Distribution/Conveyance Pipelines Interconnections Private Laterals Design costs, permits etc. 28

HSWSDA Program Cumulative Summary Report*: 7/1/16 to 06/30/17 Non-Profit Organization Total Grant Allocation Approved Funding Amount No. of Applications Received No. of Applications Approved Self-Help Enterprises $3,500,000 $1,248,154 413 78 (SHE) Rural Community $1,000,000 $763,112 39 36 Assistance Corporation (RCAC) California Rural Water $500,000 $0 22 0 Association (CRWA)** Totals $5,000,000 $2,011,266 474 114 29

Funding Long-term Solutions Technical Assistance available for small (<10,000) disadvantaged communities Develop, fund, and implement projects Includes project development/coordination, legal assistance, engineering/environmental $40 million / year in grants/principal forgiveness for construction Proposition 1 (2014) - $ 260 million in grants State Revolving Fund low interest loans/ principal forgiveness Up to $30,000 to $60,000 (for regional projects) per connection 30

New Funding Source to Assist Disadvantaged Communities Senate Bill (SB) 108 (Stats. 2017, ch. 54) $8 million from the General Fund to the State Water Resources Control Board to ensure California s economically disadvantaged citizens have adequate access to clean drinking water and adequate sanitation to protect public health. Eligible projects identified include: Replacing failed drinking water wells, including private wells; Making emergency drinking water repairs to community water systems that lack the funds to make immediate repairs; and Connecting homes to public wastewater treatment. 31

Lessons Learned Households or water systems that are located in rural parts of California have limited options for a permanent solution, including drilling a new well or point-of-use treatment. Permanent solutions after addressing immediate emergency may take years to fully implement, such as consolidation projects. 32

Future Needs and Challenges Many groundwater basins in the Central Valley are still impacted by the drought. Drought emergency still applies to: Fresno, Kern, Kings, Madera, Mariposa, Merced, Stanislaus, Tulare and Tuolumne County Additional interim emergency assistance may be needed for these counties, until a long-term solution is in place. Small water systems and communities need additional technical assistance to assist in the planning and implementation of a long-term solution. 33

Future Needs and Challenges Some smaller water systems lack the Technical, Managerial and Financial (TMF) capacity to continue operating or make any improvements to their water system. Consolidation with larger water systems is preferred, however Consolidation is often not feasible due to distance between small system and nearest larger system Smaller systems/households do not want to give up control 34

QUESTIONS??? 35