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erae i s Minnesota Pollution Control Agency Policy and Planning Division Introduction Development of the Proposal Components of the Proposal There currently exist a number of state and federal programs which fmance activities designed to improve Minnesota's water quality through grants and low interest loans. This funding is passed through to local units of govern- ment to finance various projects, ranging from wastewater-treatment facilities to erosion-control structures. These programs have proven essential in the protection and restoration of the states's water quality. Although these programs provide an excellent opportunity to improve the state's environmental condition, the limited supply of funding cannot meet the high demand.. Since the programs are housed in a variety of state and federal agencies, it is difficult to target these limited resources to a particular environ- mental problem in a watershed. The current system is also cumbersome and difficult to understand. And, it can discourage applicants because they potentially must apply to several agen- cies for the same project. The Minnesota Pollution Control Agency (MPCA) is proposing a strategy that would integrate the water quality grants and loans prc~cess into one system. The MPCA began development by focusing on its funding programs. Other state and federal agencies with water quality funding programs encouraged the agency to broaden the scope of this project to include non-MPCA funding. While these programs fund different activities, they are complementary and would be enhanced through a single process that allocates these funds. The MPCA proposes that a single application process for federal and state water quality funding programs be adopted. The process would include a pre-application stage in which potential applicants would learn the funding priorities for that application cycle. The second comment of the integrated system is that point-source (wastewater projects) and non-point source (best management practices) activities be ranked together on a single, prioritized list of projects. The overall priorities would focus on priorities established by the watershed basin (for example, the Minnesota River or Lake Superior). The priorities will also incorporate state and federal priorities in the overall system. Considering all applications for multiple funding sources together using one set of criteria and priorities will help ensure that the projects that will be funded will effectively deliver the best environmental results for the money spent. The proposed system would streamline the existing system by combining many of the administrative aspects of these funding programs, including a single funding application, integrated priorities and criteria for funding, and a unified scoring and ranking process. In addition to the proposed system being more accessible by applicants, this would eliminate existing duplication of effort by administering agencies. Programs involved in the Integrated Funding System: Approximately S15m Million Annually Source Financial Assistance:.~23 Million/Year Clean Water Partnership Grants (Minnesota Pollution Control Agency) Clean Water Partnership Loans (Minnesota Pollution Control Agency) ISTS Grant Program (Minnesota Pollution Control Agency) 319 Non-point source grants (Minnesota Pollution Control Agency) Agriculture Best Management Practices Program (Minnesota Department of Agriculture) BWSR Financial Assistance Programs MRCS Environmental Quality Improvement Program Source Water Protection Grants (Minnesota Department of Health) Metro Partners Program (Metropolitan Council of the Twin Cities) Financial Assistance: ,~I231i~lillion/Year Water Pollution Control Revolving Fund (Minnesota Pollution Control Agency/ Public Facilities Authority) USDA Rural Dcvelopment Wastewater Program Small Cities Development Block Grants (Minnesota Department of Trade & Economic Development) Timeline The MPCA proposes the following timeline for implementing the integrated funding system: ® February-March 2000: Review proposal with internal and external partners Apri12000: Final framework and implementation plan to the U. S. Environ- mental protection Agency and other partners May 2000: Establish interagency team(s) to develop details and implemen the system. ® September 2002: Fully integrated system in place. For More Information contact Faye Sleeper, MPCA Policy and Planning Division (phone 651-297-3365, email her at faye.sleeper@pca.state.mn.us) or Myrna Halbach, MPCA South District (320-214- 3794, mvrna.halbachCpca.state.mn.us).