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Resolutions for Wells 27 and 28 PFAS Treatment System Funding <br />September 19, 2023 <br />Page 2 <br />3 <br />7 <br />0 <br />7 <br />the City of Santa Ana is assisting OCWD to obtain approximately $4,000,000 in grant <br />funding to help offset the construction costs of the treatment system. <br />Under the Bipartisan Infrastructure Law (BIL), $5 billion has been set aside through the <br />Drinking Water State Revolving Fund (DWSRF) Program administered by the State <br />Water Resources Control Board (SWRCB) to reduce people’s exposure to PFAS and <br />other emerging contaminants (EC). The SWRCB will provide one hundred percent as <br />principal forgiveness (i.e., a Federal grant) and up to $5,000,000 for each qualified <br />applicant. Eligible projects include the construction of a new treatment facility that <br />addresses EC/PFAS such as the City of Santa Ana Wells 27 and 28 PFAS Treatment <br />System Project. OCWD is not considered as a qualified applicant for the PFAS grant <br />because OCWD does not own and operate any PFAS-contaminated well in its service <br />area. Therefore, OCWD is requesting assistance from the City of Santa Ana to apply for <br />the PFAS grant. Receiving this grant would minimize future replenishment assessment <br />(i.e., groundwater fees) increases, fees which are passed through to the customer in the <br />City of Santa Ana’s water rates. <br />If the PFAS grant funding agreement were executed, the City of Santa Ana would be <br />the recipient of grant funds as the owner and the operator of the PFAS water treatment <br />systems. OCWD would submit invoice(s) to the City of Santa Ana that total to the grant <br />amount. The City of Santa Ana would need to pay OCWD as “proof of payment” before <br />seeking and receiving grant reimbursement from the SWRCB. The City of Santa Ana <br />would be serving as a “pass through” agency between SWRCB and OCWD, and the net <br />financial impact to the City of Santa Ana would be zero. The SWRCB, the funding <br />agency of PFAS grant, is comfortable and has no issues with the pass through role of <br />the City of Santa Ana. <br /> <br />The City of Santa Ana’s adoption of an Authorization Resolution (Exhibit 2) is a <br />requirement of the PFAS grant application and is needed in order for OCWD to execute <br />a grant funding agreement with the State Water Resources Control Board. Additionally, <br />the City must adopt a resolution stating the City of Santa Ana Wells 27 and 28 PFAS <br />Treatment System Project is exempt from California Environmental Quality Act (CEQA) <br />pursuant to Section 15303 of the CEQA guidelines (Exhibit 3). This project is consistent <br />with Categorical Exemption Class 3 of Section 15303 because it consists of the <br />construction and operation of a small treatment plant at a previously disturbed site <br />representing the development of limited numbers of new, small facilities or structures, <br />and it would not result in any significant impacts to the environment. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action.