RE-Act: Reclamation Efficiency Act of 2015

Transcription

1 RE-Act: Reclamatin Efficiency Act f 2015 Prpsed Tls fr Managing Water Resurces in the Drught Impacted West Hn. Mark Limbaugh, Managing Partner The Fergusn Grup, LLC David Rabbitt, Supervisr Snma Cunty and, Directr, Snma Cunty Water Agency

2 RE-Act: Reclamatin Efficiency Act f 2015 Hn. Mark Limbaugh, Managing Partner The Fergusn Grup, LLC

3 RE-Act: Reclamatin Efficiency Act f 2015 The RE-Act prpsal aggregates and amends existing Reclamatin authrities t prvide assistance t water managers acrss the West: Includes innvative RIFIA prpsal lans cver up t 49% prject csts Includes a budget ffset Increases maximum cmpetitive grants fr small water strage/water reuse and recycling prjects t $20M r 25% f prject csts Adds cngressinal versight n grants New Title Transfer language

4 RE-Act Water Management Tls New Water Infrastructure Funding/Financing Tls: Federal Direct and Guaranteed Lans (RIFIA) Transfer f Title t Reclamatin Facilities r Elements f Facilities Cst-Shared Cmpetitive Grants fr Small-scale Strage, Integrated Reginal Water Management and Water Recycling prjects

5 Other Key Prvisins in RE-Act Deauthrizatin prcess t create budget ffset: Expedited prcess t deauthrize Reclamatin prjects and prgrams n lnger viable Reclamatin wuld wrk with Cngress and prject/prgram spnsrs t identify prjects and prgrams n lnger viable Create a budget ffset (savings) t pay fr: Cmpetitive grant prgrams Guaranteed and secured lan prgram Cngressinal versight Grants Befre final grant awards are made, recmmendatins wuld be submitted t cngressinal cmmittees f jurisdictin. Encurage cngressinal cnsultatin n funding pririties

6 RE-Act Lans New Reclamatin financing tl - fr water infrastructure prjects in Western States (including Title XVI Prjects) and prvides: Credit assistance fr up t 49% f ttal prject csts with a repayment perid f up t 35 years at Treasury interest rates Ability t defer initiatin f repayment fr up t 5 years fllwing substantial cmpletin f a prject Annual debt service savings f 10-20% r mre Imprved flexibility and cst-savings in cmparisn t municipal financing

7 RE-Act Lans Wh s Eligible? - Water management and supply imprvements, energy efficiency r hydrpwer, water reuse/desalinatin, r ther prjects that cmplement ther federal interests Prjects must be in Western States includes Alaska and Hawaii Cngressinal Budget Office (CBO) nly scres the subsidy assciated with risk expsure Huge leveraging f small federal investment

8 Additinal RE-Act Lan Benefits N requirement t brrw fr a debt service reserve fund (Muni Bnds) A 5-year r lnger deferral n initiatin f repayment Amrtized ver 35-years rather than 30-year maximum fr municipal bnds Ability t refinance existing water infrastructure debt

9 Difference between RE-Act Lans and WIFIA Lans WIFIA lans cannt be matched with municipal financing WIFIA lans cannt be used t supprt water strage prjects beynd thse therwise eligible under the drinking water SRF Generally limited t abve grund, cntained strage RE-Act lans can be used t refinance existing debt, if refinancing creates additinal capacity t invest mre in water infrastructure; WIFIA is silent n this authrity RE-Act lans will nt cmpete with funds available t the SRFs

10 Transfer f Title Authrity Allw transfer f title t a Reclamatin prject r a cmpnent f a Reclamatin prject t a nn-federal entity where certain requirements are met Cnstructin and ther bligatins have been, r will be, paid ut by nnfederal prject beneficiaries Allw nn-federal perating entity t btain lan guarantee under RE-Act that des nt cnstitute third-party finance bligatin Transfer subject t federal envirnmental requirements NEPA ESA Natinal Histric Preservatin Act

11 Grants fr Small-scale Strage, Integrated Reginal Water Management and Recycling prjects Allws participatin with lcal water management agencies t develp strage and cnveyance facilities and ther water supply infrastructure imprvements Includes Title XVI-like water reuse, recycling and desalinatin prjects n need fr additinal prject authrizatin frm Cngress Prvides authrity t participate in prjects with cst-shared grants f up t $20 millin per prject r 25% f ttal, whichever is less

12 Nrth Bay Water Reuse Authrity Supervisr David Rabbitt, Snma Cunty Directr, Snma Cunty Water Agency Chair, Nrth Bay Water Reuse Authrity

13 Wh We Are 10 members agencies; 3 cunties and 7 water and wastewater districts Prtins f Marin, Snma and Napa Cunties arund San Pabl Bay

14 Why We are Advcating fr RE-Act We have 2 phased reginal water recycling prgram Phase 1 is valued at $100M in infrastructure implemented with: $25M in USBR Title XVI funds $4.8M in Prp 50 and 84 funds $74.2 in lcal rate payer funds

15 Why We are Advcating fr RE-Act Phase 2 is currently being studied Identified an additinal 25,000 AFY f recycled water that can be captured, stred and put t beneficial use Initial cst estimates value Phase 2 infrastructure at $250M We need funding tls that prvide financial assistance t implement Phase 2 prjects

16 RE-Act Lan Prgram A $95M prject wuld qualify t brrw 49% r $46.5M Lan amunt $46,500,000 RE-Act Lan interest rate: June 17, % 30-year Municipal Bnd rate (Revenue Bnd Index) 4.55% RE-Act Lan Annual Debt Service $2,399, year Municipal Bnd Annual Debt Service $2,839, Annual Savings vs 30-year Municipal Bnd $ 439, Savings 15.48%

17 RE-Act Transfer f Title Authrity Prv River Water Users Assciatin PRCEP Prv River Canal Enclsure Prject (PRCEP) 2004 federal legislatin authrizing the transfer f title fr the Prv Reservir Canal & crridr and ther prperty frm Reclamatin Reclamatin interpretatin f the language f the federal Prv River Prject Transfer Act delayed title transfer Further federal legislatin was enacted t finalize the transfer RE-Act language wuld allw the Secretary t make these Title Transfers withut need fr cmplicated legislative prcess (still subject t tacit apprval by Cngress)

18 RE-Act Grants fr Small-scale Strage, Integrated Reginal Water Management and Recycling prjects Small-scale strage and distributin prject - $11.5M Culd benefit frm a grant fr 25% f the prject cst r $2.875M in assistance The remaining $8.625M wuld be financed by state grants and lcal ratepayers

19 Building Supprt fr RE-Act Outreach t Key Members f the Western Water Cmmunity WSWC in Suth Lake Tahe Assn f Califrnia Water Agencies Natinal Water Resurce Assn WateReuse: Natinally, CA and AZ Family Farm Alliance The Nrth Bay Water Reuse Authrity Other state water agency assciatins in cming mnths

20 Summary: Past and Current Federal Legislatin Varius aspects and versins f RE-Act are included in: H.R. 6992, Reclamatin Title Transfer Act f 2008, intrduced by Rep. McMrris Rdgers Water Resurce Refrm and Develpment Act (WRRDA) f 2014 Title V(C) Water Infrastructure Finance and Innvatin Act (WIFIA) Water 21 bills (S. 176 and H.R. 291), intrduced by Senatr Bxer and Representative Naplitan Discussin draft f drught relief legislatin released by Rep. Jared Huffman, Ranking Member f the Huse Natural Resurces Subcmmittee n Water and Pwer

21 Invitatin and Questins We invite yu t wrk with us in advcating fr the tls in RE-Act Letters f supprt fr these cncepts frm Individual Gvernrs Western States Water Cuncil Western Gvernrs Assciatin Others Fr mre infrmatin please cntact: Mark Limbaugh ~ mlimbaugh@tfgnet.cm Rger Gwinn ~ rgwinn@tfgnet.cm