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 Ginger Bryant BRYANT & ASSOCIATES

2 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 lan prpsal prvide lans t cver up t 49% prject csts Increases maximum cmpetitive grants fr small-scale water strage, cnveyance and, water recycling prjects up t $20M r 25% f prject csts New Transfer f Title Authrity language

3 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

4 RE-Act/RIFIA Lans New Reclamatin financing tl - fr water infrastructure prjects in Western States (including Title XVI Prjects) that 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

5 RE-Act/RIFIA 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

6 Additinal RE-Act/RIFIA 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

7 Difference between RE-Act/RIFIA 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/RIFIA 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/RIFIA lans will nt cmpete with funds available t the SRFs

8 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/RIFIA that des nt cnstitute third-party finance bligatin Transfer subject t federal envirnmental requirements NEPA ESA Natinal Histric Preservatin Act

9 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 Prvides authrity t participate in prjects with cst-shared grants f up t $20M per prject r 25% f ttal, whichever is less

10 Title XVI Refrm Authrize Reclamatin t prvide assistance t currently unauthrized water reuse and desalinatin prjects Eligibility cntingent upn cmpleted feasibility study Secretary authrized t prvide same level assistance as prvided under Title XVI: 25% f ttal prject csts r $20M, whichever is less

11 Case Study frm Nrthern Califrnia Nrth Bay Water Reuse Prgram 10 members agencies; 3 cunties and 7 water and wastewater districts Prtins f Marin, Snma and Napa Cunties arund San Pabl Bay

12 Why We are Advcating fr RE-Act We have a 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 CA Prp 50 and 84 funds $74.2M in lcal rate payer funds

13 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

14 RE-Act/RIFIA 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%

15 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)

16 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

17 Maximizing RE-Act Funding Tls Prject wuld qualify fr bth the Small-scale Strage, Recycling and, Integrated Water Management Prjects and RIFIA/RE-Act lans which culd prvide assistance with the balance f the prject financing Ttal Prject Cst $49,800,000 Grant Assistance ($20M r 25% f prject cst) $12,450,000 Balance $37,350,000 RE-ACT/RIFIA lan amunt (49% f balance abve) $18,301,500 RE-Act/RIFIA lan interest rate: June 17, % 30-year Municipal Bnd rate (Revenue Bnd Index) 4.55% RIFIA/RE-Act lan Annual Debt Service $944, year Municipal Bnd Annual Debt Service $1,117,604 Annual Savings vs 30-year Municipal Bnd $ 173,060 Ptential Savings 15.48%

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

19 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 H.R. 2983, the Drught Recvery and Resilience Act f 2015, intrduced by Rep. Jared Huffman, Ranking Member f the Huse Natural Resurces Subcmmittee n Water and Pwer

20 Invitatin and Questins We invite yu t wrk with us in advcating fr the tls in RE-Act Letters t yur Cngressinal representatives advcating supprt fr new water infrastructure funding and 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 Title XVI Refrm Give unauthrized water reuse prjects a chance t cmpete fr funds Fr mre infrmatin please cntact: Ginger Bryant ~ vsbryant@sbcglbal.net Mark Limbaugh ~ mlimbaugh@tfgnet.cm