Grant Program

Background. Engrossed Substitute Senate Bill 5396, passed by the 2005 Legislature and signed by the Governor on May 6, 2005, establishes a new Riparian Habitat Account within the Washington Wildlife and Recreation Program to be administered by IAC (see Attachment I). Riparian habitat is defined as follows:

What can be funded? The purpose of this program is to acquire an interest in, and enhance or restore, riparian habitat. This will be done by providing grants to:

• Acquire interests in real property. The acquisition can include purchase in full, options, rights of first refusal, conservation easements, leases, and mineral rights.
• Enhance or restore property in which an interest is acquired under this program. (Note: acquisition in some manner is a required component of any enhancement or restoration project proposed under this program.)
• Extend the duration of leases for riparian areas currently enrolled in the conservation reserve enhancement program (CREP).
• Fund mitigation banking projects (see separate memo).

The bill requires state agencies to provide payment in lieu of taxes (PILT) for acquisitions, and provides that the match requirement for local agencies is 50%. State agencies have no match requirement.

Who is eligible? The following entities can apply for funding:

• Certain state agencies – Parks and Recreation Commission, Department of Natural Resources, Department of General Administration, and the Department of Fish and Wildlife.
• Local agencies –cities, counties, towns, federally recognized Indian tribes, and other local agencies.
• Lead entities under RCW 77.85 (Salmon Recovery.)

What criteria are mentioned in the bill? Subsection 10 of the bill (see attachment) provides specific minimum criteria for awarding grants. In summary, these criteria are:

1. Whether projects extend the duration of leases of riparian areas that are currently enrolled in the CREP program;
2. Whether projects are recommended in other plans such as 2514 watershed plans, salmon recovery plans, or habitat recovery plans;
3. Whether there is community support;
4. Whether the proposal includes an ongoing stewardship program;
5. Whether there is an immediate threat to the site;
6. Whether there is enhancement or restoration proposed and whether the habitat is linked to other high quality habitat;
7. Whether the project is consistent with local, regional or state recreational or resource plans (including specific mention of shoreline master program or comprehensive plan updates)
8. Whether the site has educational or scientific value; and
9. Whether the site has passive recreational values.

What are the next steps? In preparation for soliciting grant proposals for the program in the spring of 2006, the following actions by the IAC Board and IAC staff are anticipated (Table 1).  Doug Osterman has agreed to participate on the Ad Hoc Advisory Committee to represent the interests of Lead Entities. Subject to scheduling, the final adoption of policy manuals and WACs will be in early February of 2006.

Table 1

Development of Riparian Habitat Program Policies

July 2005	·      Identify people and organizations likely to be interested ·      Begin to identify potential members of advisory committee
August	·      Establish web page with program description and, as available, documents for public comment ·      Email announcement of new program and invite interested parties to get on mailing list ·      Appoint Advisory Committee
September	·      IAC meeting:  progress report; public testimony
October	·     Work with Advisory Committee on first draft of program policies ·     Possible workshops around the state
November	·      IAC meeting:  review proposed policies and rules; review public comments; hear public testimony; approve draft policies and rules for public review
December	·      File draft rule language (CR102) ·      Solicit public comments on draft policies and rule(s)
January 2006	·      Review public comments with Advisory Committee and develop recommendations to IAC
February	·      IAC meeting:  review public comments; conduct public hearing; adopt policy manual, rule(s) ·      Announce grant cycle and make application materials available ·      Begin application workshops around state
March	·      Continue application workshops around state ·      Work with potential applicants
May	·      Applications due
June - August	·      Evaluate applications, develop prioritized list
September	·      IAC meeting:  presentation of proposed projects; public testimony; approve prioritized list for submission to Governor
October	·      Submit prioritized list to Governor by November 1

Attachment I. Riparian Habitat Program Language From ESSB5396 

Sec. 1   RCW 79A.15.010 and 1990 1st ex.s. c 14 s 2 are each amended to read as follows:
     The definitions set forth in this section apply throughout this chapter…    

     …”(7) “Riparian habitat” means land adjacent to water bodies, as well as submerged land such as streambeds, which can provide functional habitat for salmonids and other fish and wildlife species. Riparian habitat includes, but is not limited to, shorelines and near-shore marine habitat, estuaries, lakes, wetlands, streams, and rivers.”

NEW SECTION.  Sec. 6   A new section is added to chapter 79A.15 RCW to read as follows:
     (1) The riparian protection account is established in the state treasury. The committee must administer the account in accordance with chapter 79A.25 RCW and this chapter, and hold it separate and apart from all other money, funds, and accounts of the committee.
     (2) Moneys appropriated for this chapter to the riparian protection account must be distributed for the acquisition or enhancement or restoration of riparian habitat. All enhancement or restoration projects, except those qualifying under subsection (10)(a) of this section, must include the acquisition of a real property interest in order to be eligible.
     (3) State and local agencies and lead entities under chapter 77.85 RCW may apply for acquisition and enhancement or restoration funds for riparian habitat projects under subsection (1) of this section. Other state agencies not defined in RCW 79A.15.010, such as the department of transportation and the department of corrections, may enter into interagency agreements with state agencies to apply in partnership for funds under this section.
     (4) The committee may adopt rules establishing acquisition policies and priorities for distributions from the riparian protection account.
     (5) Except as provided in RCW 79A.15.030(7), moneys appropriated for this section may not be used by the committee to fund staff positions or other overhead expenses, or by a state, regional, or local agency to fund operation or maintenance of areas acquired under this chapter.
     (6) Moneys appropriated for this section may be used by grant recipients for costs incidental to restoration and acquisition, including, but not limited to, surveying expenses, fencing, and signing.
     (7) Moneys appropriated for this section may be used to fund mitigation banking projects involving the restoration, creation, enhancement, or preservation of riparian habitat, provided that the parties seeking to use the mitigation bank meet the matching requirements of subsection (8) of this section. The moneys from this section may not be used to supplant an obligation of a state or local agency to provide mitigation. For the purposes of this section, a mitigation bank means a site or sites where riparian habitat is restored, created, enhanced, or in exceptional circumstances, preserved expressly for the purpose of providing compensatory mitigation in advance of authorized project impacts to similar resources.
     (8) The committee may not approve a local project where the local agency share is less than the amount to be awarded from the riparian protection account. In-kind contributions, including contributions of a real property interest in land may be used to satisfy the local agency's share.
     (9) State agencies receiving grants for acquisition of land under this section must pay an amount in lieu of real property taxes equal to the amount of tax that would be due if the land were taxable as open space land under chapter 84.34 RCW except taxes levied for any state purpose, plus an additional amount for control of noxious weeds equal to that which would be paid if such lands were privately owned. The county assessor and county legislative authority shall assist in determining the appropriate calculation of the amount of tax that would be due.
     (10) In determining acquisition priorities with respect to the riparian protection account, the committee must consider, at a minimum, the following criteria:
     (a) Whether the project continues the conservation reserve enhancement program. Applications that extend the duration of leases of riparian areas that are currently enrolled in the conservation reserve enhancement program shall be eligible. Such applications are eligible for a conservation lease extension of at least twenty-five years of duration;
     (b) Whether the projects are identified or recommended in a watershed planning process under chapter 247, Laws of 1998, salmon recovery planning under chapter 77.85 RCW, or other local plans, such as habitat conservation plans, and these must be highly considered in the process;
     (c) Whether there is community support for the project;
     (d) Whether the proposal includes an ongoing stewardship program that includes control of noxious weeds, detrimental invasive species, and that identifies the source of the funds from which the stewardship program will be funded;
     (e) Whether there is an immediate threat to the site;
     (f) Whether the quality of the habitat is improved or, for projects including restoration or enhancement, the potential for restoring quality habitat including linkage of the site to other high quality habitat;
     (g) Whether the project is consistent with a local land use plan, or a regional or statewide recreational or resource plan. The projects that assist in the implementation of local shoreline master plans updated according to RCW 90.58.080 or local comprehensive plans updated according to RCW 36.70A.130 must be highly considered in the process;
     (h) Whether the site has educational or scientific value; and
     (i) Whether the site has passive recreational values for walking trails, wildlife viewing, or the observation of natural settings.
     (11) Before November 1st of each even-numbered year, the committee will recommend to the governor a prioritized list of projects to be funded under this section. The governor may remove projects from the list recommended by the committee and will submit this amended list in the capital budget request to the legislature. The list must include, but not be limited to, a description of each project and any particular match requirement.