The North Bay Water Reuse Program
New Tools and Funding Options
Grant Davis, General Manager, Sonoma County Water Agency
H...
Overview


The North Bay Water Reuse Authority (NBWRA)



The Authority‟s Program and what we‟ve achieved



The Future...
The North Bay Water Reuse Authority


Located in Northern California, in the northern part of the Bay Area
known as San P...
NBWRA Program Area – Phases 1 & 2
NBWRA Member Agencies
Counties, Water and Sanitation Districts
 Marin, Sonoma and Napa
 Sonoma Valley County
Counties
 ...
Water Supply Challenges


Dependence on water from adjacent watersheds, limited local
surface supplies & groundwater



...
Environmental Challenges


Regulatory limits on treated wastewater discharge to the Bay



Restoration needs of 640 acre...
Institutional and Financial Challenges
Difficult to plan and implement projects individually



Impacts on agency staffin...
The Program and What We’ve Achieved


NBWRA is a “virtual” Authority - organized under an MOU, the
Sonoma County Water Ag...
Our Approach - Economies of Scale


We are a regional Program comprised of member agencies projects



We conduct studie...
Our Approach - Economies of Scale con’t.


Members share costs for Program Development, Federal and State
Advocates and h...
North Bay Water Reuse Program


The Program supply‟s recycled water to meet diverse needs of the
region; urban, agricultu...
The Program’s objectives reflect this approach


Offset urban and agricultural demands on potable supplies and
impacted g...
Program Milestones


2009 – Authorized under the US Bureau of Reclamation‟s Title XVI
Program for a 2-phased program and ...
Program Milestones con’t.


Phase 1 is valued at $104 million and projects include:
o

46 miles of pipelines

o

100 AFY ...
Program Partners and Funding to Date


The US Bureau of Reclamation has been key to our success:
o
o

Provided 50% cost-s...
Phase 1 Implementation Summary


Initiated design and construction in 2009 and estimate completion
in 2019



Phase 1 is...
Where we are now: Shaping Phase 2


Currently completing Scoping Studies to “size” future feasibility and
environmental s...
Shaping Phase 2


Phase 2 will build on the infrastructure developed in Phase 1



The critical component will be storag...
Shaping Phase 2 con’t.


Preliminary studies have identified:
o
o
o



28,000 AFY within the Program area
3,400 AFY or 1...
Phase 2 Requires New and Diverse Funding Tools



Engineering, Program Development, Federal and State Advocacy
teams work...
21st Century Reclamation Infrastructure
Finance and Innovation Act of 2013
(RIFIA)
New Tools and Funding Options
Three key “tools” addressed in RIFIA:


The RIFIA proposal aggregates and amends existing Reclamation
authorities to prov...
Bureau of Reclamation Guaranteed Loans


Offer new Reclamation financing tool for water infrastructure
projects associate...
Bureau of Reclamation Guaranteed Loans con’t.



Projects eligible include water management and supply
improvements, ener...
Transfer of Title Authority
Reclamation Facilities or Elements of Facilities



Allow transfer of a Reclamation project t...
Integrated Regional Water Management and
Regulating Storage Grants



Allows participation with local water management en...
Building Support for RIFIA


Outreach to Key Members of the Western Water Community
o
o

Western States Water Council – w...
Questions?
Grant Davis
grant.davis@scwa.ca.gov
or
Mark Limbaugh
mlimbaugh@tfgnet.com
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The North Bay Water Reuse Program - New tools and funding options

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Grant Davis, General Manager, Sonoma County Water Agency

Hon. Mark Limbaugh, Managing Partner, The Ferguson Group

Presented at the October 24, 2013 Texas Water Conservation Association Fall Conference in San Antonio, Texas.

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The North Bay Water Reuse Program - New tools and funding options

  1. 1. The North Bay Water Reuse Program New Tools and Funding Options Grant Davis, General Manager, Sonoma County Water Agency Hon. Mark Limbaugh, Managing Partner, The Ferguson Group October 24, 2013 Texas Water Conservation Association San Antonio
  2. 2. Overview  The North Bay Water Reuse Authority (NBWRA)  The Authority‟s Program and what we‟ve achieved  The Future of the NBWRA  New Tools and Funding Options
  3. 3. The North Bay Water Reuse Authority  Located in Northern California, in the northern part of the Bay Area known as San Pablo Bay  Who are our members  What are the drivers that got us to work together
  4. 4. NBWRA Program Area – Phases 1 & 2
  5. 5. NBWRA Member Agencies Counties, Water and Sanitation Districts  Marin, Sonoma and Napa  Sonoma Valley County Counties  Marin Municipal Water District  North Marin Water District  Sonoma County Water Agency  Las Gallinas Valley Sanitary District  Novato Sanitary District Sanitation District  Napa Sanitation District
  6. 6. Water Supply Challenges  Dependence on water from adjacent watersheds, limited local surface supplies & groundwater  Surface water subject to drought year fluctuation  Reduced groundwater levels, impaired quality, & salt water intrusion  Competing demands on the resource from local communities, agriculture and the environment
  7. 7. Environmental Challenges  Regulatory limits on treated wastewater discharge to the Bay  Restoration needs of 640 acres of tidal wetlands around the Bay  Reduced stream flow due to surface diversions impacts habitat and aquatic species
  8. 8. Institutional and Financial Challenges Difficult to plan and implement projects individually  Impacts on agency staffing & expertise  Costs – planning, design, securing funding and construction  Limited political “know-how” to operate on a regional-scale
  9. 9. The Program and What We’ve Achieved  NBWRA is a “virtual” Authority - organized under an MOU, the Sonoma County Water Agency acts as the fiscal agent  We have a 2-phased regional-scale recycling Program providing planning and project implementation support to member agencies  Phase 1 is a $104 million recycled water program delivering high quality water to urban, agricultural and environmental projects  The US Bureau of Reclamation is our partner in developing recycled water and is key to our success  The State of California is also a partner - our watershed approach is consistent with their Integrated Water Resources Planning program
  10. 10. Our Approach - Economies of Scale  We are a regional Program comprised of member agencies projects  We conduct studies from a watershed perspective detailing both project specific and programmatic benefits  The Authority allows members to share costs for planning, engineering and environmental studies they could not afford to conduct on their own
  11. 11. Our Approach - Economies of Scale con’t.  Members share costs for Program Development, Federal and State Advocates and have access to expertise often beyond the reach of small districts  Members share Program costs but implement their own projects and in turn, incrementally contribute toward regional supply reliability
  12. 12. North Bay Water Reuse Program  The Program supply‟s recycled water to meet diverse needs of the region; urban, agricultural and environmental  Through thoughtful design we often serve several of these users in one project; we call this the multi-benefit approach  This approach is consistent with and supported by the Federal and State agencies we partner with for project implementation
  13. 13. The Program’s objectives reflect this approach  Offset urban and agricultural demands on potable supplies and impacted groundwater basins  Enhance local and regional ecosystems  Improve local and regional water supply reliability  Maintain and protect public health & safety  Promote sustainable practices  Give top priority to local needs for recycled water  Implement facilities in economically viable manner
  14. 14. Program Milestones  2009 – Authorized under the US Bureau of Reclamation‟s Title XVI Program for a 2-phased program and provided for $25 million in federal assistance for Phase 1 construction  2009 – Completed Phase 1 Feasibility and Environmental Studies
  15. 15. Program Milestones con’t.  Phase 1 is valued at $104 million and projects include: o 46 miles of pipelines o 100 AFY of storage o 6.5 mgd of new tertiary treatment o These projects deliver 3,800 AFY for irrigation and up to 1,700 AFY for environmental restoration
  16. 16. Program Partners and Funding to Date  The US Bureau of Reclamation has been key to our success: o o Provided 50% cost-share for Phase 1 studies totaling $3 million Authorized to provide up to $25 million for Phase 1 construction and to date have contributed: • $7.3 million in ARRA grants • $9.2 million in Title XVI WaterSMART grants  State of California Department of Water Resources: o Provided $3.9 million in State Proposition‟s 50 and 84 grants (water bonds)
  17. 17. Phase 1 Implementation Summary  Initiated design and construction in 2009 and estimate completion in 2019  Phase 1 is currently at 66% completion  Cost of Phase 1 projects valued at $104 million o Federal Reclamation Grants - $25 million o State of California Grants - $7.8 million o NBWRA members agency‟s - $71.2 million
  18. 18. Where we are now: Shaping Phase 2  Currently completing Scoping Studies to “size” future feasibility and environmental studies  Process includes: o Adding 2 new member agencies o Clearly defining local agency and funding agency objectives o Identifying and compiling member‟s projects into conceptual alternatives o Conceptual estimates of the scale of Phase 2 – currently $150-200 million o Determining member‟s financial commitment and ability to pay o Defining the projects to be studied next in Title XVI feasibility studies
  19. 19. Shaping Phase 2  Phase 2 will build on the infrastructure developed in Phase 1  The critical component will be storage of recycled water for yearround use – Phase 1 used most of the summer water
  20. 20. Shaping Phase 2 con’t.  Preliminary studies have identified: o o o  28,000 AFY within the Program area 3,400 AFY or 12% is water available for summer use 24,600 AFY or 88% is winter water and needs to be stored New member projects include: o o o Treatment, storage, and distribution Stormwater and groundwater management Environmental enhancement
  21. 21. Phase 2 Requires New and Diverse Funding Tools  Engineering, Program Development, Federal and State Advocacy teams work together  As Phase 2 projects are described, funding options are identified or developed to assist with project implementation  Funding information informs member‟s decision making in selecting projects for Phase 2  Funding implementation strategy is specifically developed to support members as they transition from planning into project implementation  This iterative approach incorporates ongoing collaboration between Engineering, Program Development and Lobbyists and is key to our success – this is not a linear process
  22. 22. 21st Century Reclamation Infrastructure Finance and Innovation Act of 2013 (RIFIA) New Tools and Funding Options
  23. 23. Three key “tools” addressed in RIFIA:  The RIFIA proposal aggregates and amends existing Reclamation authorities to provide assistance to the NBWRP and other water managers across the west  The tools: o Federally Guaranteed Loans o Transfer of Title of Reclamation Facilities or Elements of Facilities o Integrated Regional Water Management and Regulating Storage Competitive Cost-Shared Grants
  24. 24. Bureau of Reclamation Guaranteed Loans  Offer new Reclamation financing tool for water infrastructure projects associated with Reclamation projects:  Loan guarantees to institutional investors to make loans to project sponsor  Credit assistance for up to 90% of total project costs with a repayment period of up to 40 years at Treasury interest rates
  25. 25. Bureau of Reclamation Guaranteed Loans con’t.  Projects eligible include water management and supply improvements, energy efficiency or hydropower, or other projects that meet other federal interests  Congressional Budget Office (CBO) scores the subsidy associated with the guarantee, which with water facilities has generally been around 2-3% (e.g. $3 million in appropriations leverages about $100 million in federal loan guarantees).
  26. 26. Transfer of Title Authority Reclamation Facilities or Elements of Facilities  Allow transfer of a Reclamation project to a non-federal entity where construction and other obligations have been paid out by nonfederal project beneficiaries  Allow non-federal operating entity to obtain loan guarantee under RIFIA that does not constitute „third-party‟ finance obligation (2-3% CBO score vs. 100% score)  Transfer subject to meeting (NEPA/ESA) requirements and no objection from committee of jurisdiction within 60-days of transfer
  27. 27. Integrated Regional Water Management and Regulating Storage Grants  Allows participation with local water management entities to develop storage and conveyance associated with integrated water management and reuse projects  Provides authority to participate in projects with cost-shared grants of up to $15 million per project to be expended over five-year
  28. 28. Building Support for RIFIA  Outreach to Key Members of the Western Water Community o o Western States Water Council – webinar on Oct 3 o Assn of California Water Agencies o National Water Resource Assn o WateReuse o  TWCA meeting in San Antonio Oct 24 Family Farm Alliance The North Bay Water Reuse Authority invites you to consider joining them in supporting this proposed legislation
  29. 29. Questions? Grant Davis grant.davis@scwa.ca.gov or Mark Limbaugh mlimbaugh@tfgnet.com

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