Report 2021-118 Recommendation 3 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 #3 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, review and revise its credit review process, including the creation of a limited credit review process for grant-funded projects.

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 projects receiving 100% non-repayable financing. This will allow the Financial Review unit to create a new process for 100% non-repayable financing projects with a higher priority and a concise list of financial documentation. In addition of establishing a Fundable List tracking mechanism for better communication with Applicants of the various stages of their application. Pending adoption of Drinking Water State Revolving Fund 2022-23 Intended Use Plan.

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

We look forward to reviewing the State Water Boards revised financial application review process.

All Recommendations in 2021-118

Agency responses received are posted verbatim.