Proposition 4 - Water Recycling
State Water Resources Control Board
Free. Verify your email, then we send one reminder only.
- Posted
- Jul 13, 2026
- Amount
- Generally up to $15 million; qualifying Small SDAC projects up to $35 million
- Portal deadline
- Jun 30, 2030 (in 1403 days)
Similar opportunities open now
- Proposition 68 – Water RecyclingSame funderOpenState Water Resources Control BoardNo deadline listedUp to $3M
- Proposition 1 – Water RecyclingSame funderOpenState Water Resources Control BoardNo deadline listedUp to $4.6M
- Proposition 13 – Water Recycling – Planning GrantSame funderOpenState Water Resources Control BoardNo deadline listedUp to $300K
- Clean Water State Revolving Fund (CWSRF) ProgramSame funderOpenState Water Resources Control BoardNo deadline listed
- Drinking Water State Revolving Fund (DWSRF) PlanningSame funderOpenState Water Resources Control BoardNo deadline listedUp to $500K
FundingLandscape analysis
California Proposition 4 Water Recycling
The California Grants Portal directs applicants to the FAAST system and lists this opportunity as active through June 30, 2030. Treat that as the portal window, not permission to wait: the effective regulations direct Division of Financial Assistance staff to recommend complete, eligible applications until funds are exhausted, including a partial grant when the remaining eligible funding cannot cover the full request. A complete application requires engineering, environmental, market-assurance, and financial-capacity packages. Confirm current funding availability and project-specific instructions with the Division before relying on the outer date.
Primary sources verified 2026-08-08.
Why it matters
The California Grants Portal lists $150 million for this active opportunity. That is the current enacted appropriation governed by the emergency regulations, not an individual award and not the full historical Proposition 4 water-recycling allocation.
The current allocation report shows a $383.354 million net allocation under Public Resources Code section 91014, with $150 million in 2025-26 project appropriation and $75 million proposed for 2026-27. The proposed amount is not part of the current $150 million opportunity unless enacted and made available under applicable program rules.
The ordinary maximum grant is $15 million. A large-scale project may receive up to $15 million per phase, while a qualifying Small Severely Disadvantaged Community project may receive up to $35 million. Those are different caps, not a $1 million to $35 million range open to every applicant.
For large-scale and ordinary non-large-scale projects, the regulations cap the grant at 35% of total eligible project cost. A qualifying Small DAC or Small SDAC project may receive up to 100% if the State Water Board applies the regulatory criteria. The portal also displays a 50% matched-funding field, so applicants should obtain project-specific financing confirmation rather than reducing these rules to one match percentage.
Program pool versus individual award
- Current active opportunity funding
- $150 million enacted appropriation
- Broader net Prop 4 section 91014 allocation
- $383.354 million in the current allocation report
- Ordinary maximum grant
- $15 million
- Large-scale maximum
- $15 million per project phase
- Qualifying Small SDAC maximum
- $35 million
- Grant share of eligible project cost
- Generally up to 35%; qualifying Small DAC or Small SDAC projects may reach 100%
Who can actually apply
- Eligible applicants include public and local agencies, nonprofit organizations, special districts, joint powers authorities, Tribes, public utilities, local publicly owned utilities, and mutual water companies.
- A mutual water company, a joint powers authority with municipal water-company members, or a California Public Utilities Commission-regulated public utility must demonstrate a clear and definite public purpose that benefits customers rather than investors.
- The project must offset or augment state or local freshwater supplies, and at least 50% of eligible project capacity must serve existing users. A project consisting exclusively of planning is not eligible.
- Large-scale projects are those expected to deliver at least 10,000 acre-feet per year when all construction phases are complete. They are not required to submit user agreements or water-delivery contracts as an eligibility condition.
- Ordinary projects generally receive funding for actual eligible construction costs. Large-scale projects can also include specified ancillary facilities and eligible planning costs. Qualifying Small DAC or Small SDAC projects receiving 100% funding can include eligible planning costs and construction allowances.
- Operation and maintenance, land acquisition, decorative items, work outside the original application scope, costs reimbursed by another source, and capacity beyond eligible project capacity are ineligible under the current regulations.
Deadline, forms, and submission sequence
- Use the California Grants Portal record to open the current FAAST application and confirm availability, deadlines, contacts, and any program-specific instructions with the Division of Financial Assistance.
- Confirm the legal applicant category, authorized representative, governing-body resolution when required, Unique Entity Identifier, tax identifier, service-area population, median household income, and Small DAC or Small SDAC status if claimed.
- Prepare the General Information Package with project location, objectives, plans-and-specifications status, schedule, requested grant amount, total project cost, and every agency involved in funding, planning, construction, or environmental review.
- Prepare a Project Report signed and stamped by a registered Professional Engineer. Address the project area, water and wastewater conditions, treatment objectives, recycled-water market, alternatives, implementation constraints, agreements and permits, financing, and projected revenue, costs, and debt.
- Document recycled-water market assurances and the connection schedule and estimated deliveries for potential users. Confirm whether the project qualifies for the large-scale exception to user-agreement requirements.
- Complete the California Environmental Quality Act package and a Financial Security Package showing capacity to operate and maintain the completed project. The regulations request current and projected revenue, other funding, material obligations, recent financial records, debt, rates, and related agreements.
- Separate eligible construction, large-scale ancillary or planning costs, any Small DAC or Small SDAC allowances, and ineligible costs. Reconcile the request to the correct $15 million, per-phase, or $35 million cap and the applicable share of total eligible project cost.
- Submit the complete package through FAAST and respond to Division of Financial Assistance review. An approved application becomes an award only after all parties execute a financing agreement.
How the State Water Board reviews applications
- The regulations do not establish a conventional point rubric. Division of Financial Assistance staff review whether the application is complete under section 3437.
- Staff review applicant, project, and cost eligibility under sections 3433 through 3435, including freshwater benefit, existing-user capacity, applicant type, and cost category.
- Division staff recommend an application to the Deputy Director when it is complete and the applicant and project are eligible. Recommendations continue until grant funds are exhausted; if the remaining eligible funding is less than the approved request, staff recommend a partial grant amount.
- The Division of Financial Assistance Deputy Director has delegated authority to approve applications and confirms whether staff findings comply with the effective regulations. Approval authorizes the State Water Board to prepare a financing agreement; the grant is binding only after all parties sign that agreement.
- For a Small DAC or Small SDAC request above the ordinary 35% share, the Board considers support for discharge-permit compliance, increased recycled-water supply or use, and offset of potable-water use.
Readiness checklist
- Confirm the applicant category, public-purpose condition when applicable, authority to sign, service population, and income status.
- Classify the project as ordinary, large-scale, Small DAC, or Small SDAC and document the facts supporting that classification.
- Show how the project offsets or augments freshwater supplies and how at least half of eligible capacity serves existing users.
- Reconcile requested funding to the $15 million ordinary cap, $15 million large-scale per-phase cap, or $35 million Small SDAC cap.
- Model the generally applicable 35% grant share and confirm any Small DAC or Small SDAC request for up to 100% against the regulatory criteria.
- Separate eligible construction, large-scale ancillary and planning costs, qualifying community costs, and ineligible expenses.
- Complete the engineer-stamped Project Report, alternatives analysis, market assurances, user-delivery schedule, and permitting plan.
- Assemble the CEQA and Financial Security packages, governing resolution, rates, debt, financial statements or returns, and two-year projections.
- Confirm FAAST access and current Division of Financial Assistance instructions before submitting.
- Recheck available funding, the official portal record, regulations, and allocation report before committing the financing plan.
Primary sources
Related opportunities and the next search
- Search current California water-recycling funding
Compare current source-linked programs, then save the search or start an alert if water-reuse finance is a continuing responsibility.
- Search wastewater infrastructure funding
Monitor a separate infrastructure lane so treatment, conveyance, reuse, and resilience programs can be qualified against their own cost rules.
- Review the California grants guide
Use California-wide funding discovery without treating every water or climate program as eligible for the same project costs.
Analysis change log
- 2026-08-08: Initial analysis verified against the active California Grants Portal record, OAL-approved emergency regulations effective February 17, 2026, Proposition 4 allocation report, FAAST route, and Public Resources Code. It separates the $150 million current appropriation, $383.354 million broader net allocation, $15 million ordinary cap, $15 million large-scale per-phase cap, and $35 million Small SDAC exception.
Amount
Generally up to $15 million; qualifying Small SDAC projects up to $35 million
Who can apply
Eligible applicants include California public and local agencies, special districts, joint powers authorities, Tribes, nonprofit organizations, and eligible utilities or mutual water companies, subject to the regulations.
About this opportunity
Eligible Applicants: Local public agencies, 501(c)(3) nonprofit organizations qualified to do business in California, Public Utilities, Federally and non-federally recognized Native American tribes on the Native American Heritage Commission’s list, and Mutual water companies. Eligible Uses: Eligible projects include recycled water treatment; recycled water storage, distribution, and pumping; groundwater recharge; indirect potable reuse; surface water augmentation; and large scale recycled water projects. Ineligible Uses: Operation and maintenance costs. Eligible Costs: Construction Grant Funding - Construction costs only Construction Grant Funding - Large Scale Recycled Water Projects - Planning, Design, and Construction. Eligible Communities: All community types are eligible for funding. ...