The CalConserve Water Use Efficiency Revolving Fund is intended to be a sustainable funding source for water use efficiency projects by establishing a loan program to local agencies for specific types of water conservation and water use efficiency projects and programs to achieve urban water use targets, specifically water use efficiency upgrades and fixing expensive and difficult to repair customer leaks.
The CalConserve program is intended to be a sustainable funding source for water use efficiency projects through loans to customers. The goal of the program is to have efficiency upgrades generate sufficient savings to customers allowing easy loan payback. As result, only projects providing loans to customers are eligible. Projects proposing grants or rebates to customers are not eligible for funding under this program. Local Agencies are eligible to apply.
There are two types of urban water use efficiency projects and programs eligible for funding under this PSP:
- Project to provide loans to local agencies for water efficiency upgrades to eligible customers at no upfront costs. Eligible customers include residential, commercial, institutional, and industrial water users.
- For local agencies to provide low-interest loans to customers to finance the installation of onsite improvements to repair or replace leaking water pipes.
Eligible for funding are water conservation and water use efficiency projects including, but not limited to:
- Provide customers efficient dishwasher or clothes washer upgrades
- Install water-saving fixtures including toilets, showerheads, faucets, and other upgrades Install hot-water recirculating pumps
- Provide leak detection, repair and/or replacement Install landscape irrigation system upgrades
- Provide for water conservation landscape conversion
- Commercial, institutional, and industrial water use efficiency improvements
- Recycled water projects
A local cost share of not less than 50% of the total project cost is required by Proposition 1. However, projects directly benefiting Disadvantaged Communities are eligible for reduced cost-share.
The financing term is up to 20 years or the useful life of the project, whichever is less. Loans serving DACs can be financed for up to 25 years.
The loan repayment to the State shall begin within 1 year of loan funding, depending on the repayment schedule established with DWR accounting.
The interest rate is equal to 0%.
The borrower is required to establish an acceptable dedicated source of revenue for repayment of the loan. Borrowers may be required to secure the services of a fiscal agent to assist in administering repayment of the loan.
DWR may waive up to 10% of the repayment amount for costs that could not be recovered by a local agency.
Maximum loan of $3,000,000 per local agency.
State funds shall not be used for local agency administrative costs.
Not less than 10 percent of the funds ($1 million) will be awarded to projects that directly benefit DACs or EDAs.
Funding is contingent upon successful sale of State General Obligation Bonds.
- Public Agency
A project proposed by a public utility that is regulated by the Public Utilities Commission or a mutual water company shall have a clear and definite public purpose and shall benefit the customers of the water system and not the investors. For a proposed project that directly affects groundwater levels or quality, the applicant must also demonstrate groundwater planning requirements prior to applying for Proposition 1 funds.
Projects throughout California are eligible for funding.
Matching Funding Requirement:
Other State funds can be included in the total project cost budget but cannot be used as local cost share. The cost-sharing requirement may be waived for projects that entirely benefit a disadvantaged community (DAC) or an economically distressed area (EDA). A proportionate credit will be applied to projects or programs that commit to providing a percentage of the funds to DACs or EDAs within their service area.
How to Apply
State agencies/departments recommend you read the full grant guidelines before applying.
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