The North Bay Water Reuse Program in Northern California aims to increase water supply reliability and sustainability through water recycling. Phase 1 of the program cost $104 million and involved building 46 miles of pipelines, 100 acre-feet of storage, and increasing treatment capacity by 6.5 million gallons per day. This infrastructure delivers recycled water for irrigation and environmental restoration. Phase 2 is in planning and will focus on additional storage to allow year-round recycled water use. New funding tools like the proposed Reclamation Infrastructure Finance and Innovation Act could help finance Phase 2 projects through loan guarantees, ownership transfers of existing infrastructure, and competitive grants.

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. 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. 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. NBWRA Program Area – Phases 1 & 2

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 21st Century Reclamation Infrastructure
Finance and Innovation Act of 2013
(RIFIA)
New Tools and Funding Options

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. 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. 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. 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. 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. 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. Questions?
Grant Davis
grant.davis@scwa.ca.gov
or
Mark Limbaugh
mlimbaugh@tfgnet.com