Report 2021-118 Recommendation 2 Responses

Report 2021-118: State Water Resources Control Board: It Lacks the Urgency Necessary to Ensure That Failing Water Systems Receive Needed Assistance in a Timely Manner (Release Date: July 2022)

Recommendation #2 To: Water Resources Control Board

To minimize the prolonged periods during which Californians suffer without safe drinking water, the State Water Board should do the following by January 2023, streamline its application process by eliminating the need to submit unnecessary application documents and financial information.

6-Month Agency Response

The Drinking Water State Revolving Fund 2022-23 Intended Use Plan was adopted on October 3, 2022: https://www.waterboards.ca.gov/water_issues/programs/grants_loans/docs/2022/dwsrf-iup-sfy2022-23-final.pdf

The plan allows for reduced financial documentation and review process in the following cases.

1. 100% non-repayable Planning project

2. 100% non-repayable Consolidation/Regionalization project

As an additional measure, staff are also developing the Expedited Drinking Water Grant Funding Program. The draft guidelines for this program outline a new streamlined application process to enable DFA to commit state grant funds to projects more quickly. State Water Board consideration of adoption is planned for March 7, 2023. More info online at: https://www.waterboards.ca.gov/drinking_water/services/funding/expedited-grant-funding.html

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

Revising the Financial Application submittal and review for 100% non-repayable funded projects.

Pending adoption of Drinking Water State Revolving Fund 2022-23 Intended Use Plan. Revise the financial capacity review process for one hundred percent (100%) non-repayable planning and consolidation projects: 1. For one hundred percent (100%) non-repayable planning projects, the Division of Financial Assistance (DFA) will generally not require the applicant to submit a complete financial security package or undergo financial security review prior to receiving funding, as long as the planning project will address financial capacity. 2. A Public Water System will generally not require to demonstrate financial capacity to operate and maintain its system if it will be consolidated into another PWS, but the receiving water system must satisfy financial capacity requirements. DFA may apply alternative financial capacity review for the receiving water system(s) under certain circumstances.

California State Auditor's Assessment of 60-Day Status: Pending

We look forward to reviewing the State Water Board's revised financial application review process.

All Recommendations in 2021-118

Agency responses received are posted verbatim.