Agenda - Environmental Policy Board - 01/13/2020

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EXHIBIT B Clean Water Fund Grant Program Overview & Goal, Structure, and Qualified Activities (should anything herein be contradicted by the Agreement language, the Agreement terms prevail). Overview The Metropolitan Council (Council) will implement a water efficiency grant program effective September 30, 2019 to June 30, 2022. Grants will be awarded on a competitive basis to municipalities that manage municipal water systems. The Council will provide 75% of the program cost; the municipality must provide the remaining 25%. Municipalities will use the combined Council and municipality funds to run their own grant or rebate programs. Grants will be made available in amounts with a minimum of $2,000 and a maximum of $50,000. Grantees will be required to provide estimated water savings achieved through this program for Clean Water, Land & Legacy Amendment reporting purposes. Legislative Directive - Minnesota 2019 Session Law $375,000 the first year and $375,000 the second year are for the water demand reduction grant program to encourage municipalities in the metropolitan area to implement measures to reduce water demand to ensure the reliability and protection of drinking water supplies. Fiscal year 2020 appropriations are available until June 30, 2021, and fiscal year 2021 appropriations are available until June 30, 2022. Grant Program Goal The goal of the water efficiency grant program is to support technical and behavioral changes that improve municipal water use efficiency in the seven -county metropolitan area. Critical Points to Remember • The applying municipality must be a water supplier • New construction and new developments are not eligible • Funds are for rebates or grants only; consulting and city staff time are ineligible • Combined Council and municipality funds cannot pay for 100% of an eligible activity's cost • A portion of each eligible activity's cost must be paid by the property owner • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program -related web pages and paper communications Grant Program Structure: Administration and Funding The Water Efficiency Grant Program will be administered by Metropolitan Council Environmental Services (MCES) and will be funded with $750,000 appropriated by the 2019 Minnesota Legislature. Grant applications will be reviewed and ranked by the MCES Water Supply Planning Unit staff. Grants are only for water efficiency programs offering rebates or grants to property owners who are customers of the municipal water supply system and who replace specified water using devices with approved devices that use substantially less water. Grants will be awarded to municipalities in amounts ranging from $2,000 to $50,000 for providing rebates or grants to property owners. Municipalities will be responsible for the design and operation of their rebate or grant program and its details. Grant payments to the municipality will be for 75% of approved program amounts. The municipality must provide the remaining 25% of the program cost. Municipality rebates or grants are eligible for reimbursement on device replacements conducted September 30, 2019 through June 30, 2022.