Jennifer Toney, senior engineer in the Division of Financial Assistance, summarized three principal funding sources the State Water Board will use to finance urban stormwater projects: the Clean Water State Revolving Fund (SRF) with low‑interest loans and principal forgiveness (federal), the EPA‑funded Sewer Overflow and Stormwater Reuse Grants (OSG), and Proposition 4 (state bond) which allocated roughly $110 million for urban stormwater programs, with about $101.5 million available for projects after administrative and bond costs.

Toney explained program mechanics: Clean Water SRF currently offers loans (approximate interest shown at 2.2%) and principal forgiveness; staff indicated there is about $20M in principal forgiveness available for stormwater projects in the current fiscal year with a maximum award of roughly $5M per project. OSG grants provide about $4.5M annually from EPA and prioritize disadvantaged communities. Prop 4 requires projects be included in a stormwater resource plan that has state board concurrence; DFA staff plan to issue draft guidelines, run them through an emergency regulation process per legislative direction, and then open a single competitive solicitation for Prop 4 funds.

Toney urged applicants to submit a partial FAST application to get triaged to a DFA project manager early, because Clean Water SRF application packages are geared toward wastewater projects and may contain non‑applicable sections for stormwater projects. She also noted that small disadvantaged communities may be exempted from the stormwater resource plan requirement under SB 985. Toney said staff will post draft guidelines for 30 days for comment, then the emergency regulation public comment period (short) will follow; applications will then be solicited in an open and closed solicitation depending on program specifics.

Board members discussed technical assistance needs and urged DFA to consider streamlined application triage and dedicated technical assistance for school and disadvantaged community projects to build a pipeline of shovel‑ready projects for the funding windows.