Used Oil Competitive Used Oil Competitive Grants’ Cycle Frequency Grants’ Cycle Frequency

and Funding Levels (Used and Funding Levels (Used Oil Recycling Fund, FY Oil Recycling Fund, FY

2006/07 and FY 2007/08)2006/07 and FY 2007/08)

Oil Program StatuteOil Program Statute

Grant and Outreach Programs:Grant and Outreach Programs:– Block Grants (administered annually)Block Grants (administered annually)– Competitive Grants (OG, UNP, URD)Competitive Grants (OG, UNP, URD)

Annual award not requiredAnnual award not required Funding is continuously Funding is continuously

appropriatedappropriated

- - Outreach and EducationOutreach and Education

Funding FrameworkFunding Framework

Funding Framework:Funding Framework:–Cycle FrequencyCycle Frequency–Funding LevelsFunding Levels

1. Cycle Frequency1. Cycle Frequency

Local Program NeedLocal Program Need– Regular & predictable fundingRegular & predictable funding– Time to evaluate effectivenessTime to evaluate effectiveness

Three Options for Cycle Frequency:Three Options for Cycle Frequency:– AnnualAnnual– Biennial (Board adopted Nov. Biennial (Board adopted Nov.

2001)2001)– Other Cycle OptionsOther Cycle Options

Annual Cycle: Annual Cycle:

RecommendedRecommended Each grant is awarded annuallyEach grant is awarded annually Effects are:Effects are:

– Most responsive to fluctuations in Most responsive to fluctuations in Fund ConditionFund Condition

– All Stakeholders eligible for grants All Stakeholders eligible for grants – Potential for overlapping grantsPotential for overlapping grants– Lack of program evaluationLack of program evaluation– Lower funding levels for each cycleLower funding levels for each cycle

Biennial Cycle: Biennial Cycle: Not Not RecommendedRecommended

Each grant awarded every two yearsEach grant awarded every two years Current Board modelCurrent Board model Biennial Cycles have been successful:Biennial Cycles have been successful:

– PredictabilityPredictability– Funding flexibilityFunding flexibility– Less focus on administration, more Less focus on administration, more

on project management & on project management & evaluationevaluation

– Does not limit available funding for Does not limit available funding for local governmentlocal government

Other Cycle OptionsOther Cycle Options: : Not Not RecommendedRecommended

Any cycle other than Any cycle other than Annual/BiennialAnnual/Biennial

Effects are:Effects are:– Flexibility on when to awardFlexibility on when to award– Unpredictable cyclesUnpredictable cycles– Decreased administrative tasksDecreased administrative tasks– Funding flexibilityFunding flexibility

2. 2. Funding LevelsFunding Levels

Two Issues:Two Issues:

A.A.Total annual Competitive Total annual Competitive Grant fundingGrant funding

B.B.Funding amount for Funding amount for individual Competitive individual Competitive GrantsGrants

Statutory Framework for Statutory Framework for Funding LevelsFunding Levels

Total Resources Total Resources – – Mandatory ExpensesMandatory Expenses “ “ Remaining Balance”Remaining Balance”

Statutory for Funding Statutory for Funding Levels for Grants: 60% Levels for Grants: 60%

MinimumMinimum

GrantGrant Percent of Remaining Percent of Remaining BalanceBalance

OG Minimum 40%OG Minimum 40%UNP Minimum 10%UNP Minimum 10%URD 10-15% URD 10-15%

maximummaximum

A. A. Total Annual Total Annual Competitive Grant Competitive Grant

FundingFunding Other Board Options:Other Board Options:

– Increase total grant $ up to 80% Increase total grant $ up to 80% – Decrease total grant $ below 60%Decrease total grant $ below 60%

Preferred Option – 60% levelPreferred Option – 60% level– Prudent carry-overPrudent carry-over– Obligation to stakeholdersObligation to stakeholders– Facilitates local planningFacilitates local planning

Scenario 1: No Grants in 06-07/Annual Grants Year 1 Year 2 Year 3 Year 4 $ #

Grants $ # Grants $ #

Grants $ # Grants

Total Grants

Opportunity (40%)

0 0 $1.363M 4.5 $495K 1.6 $321K 1 7.1

Non-Profit (10%)

0 0 $340K 1 $124 .3 $80K .25 1.55

Research (10%)

0 0 $340K 1 $124 .3 $80K .25 1.55

Scenario 2: Statutory Min./Annual Allocation Grants Year 1 Year 2 Year 3 Year 4 $ #

Grants $ # Grants $ #

Grants $ #

Grants

Total Grants

Opportunity (40%)

0 0 $1.07M 3.5 $436K 1.5 $310K 1 6

Non-Profit (10%)

$367K 1.2 $268K .9 $109K .3 $77K .25 1.45

Research (10%)

$367K 1.2 $268K .9 $109K .3 $77K .25 1.45

Funding Framework: Funding Framework: Annual Cycles after 4 Annual Cycles after 4 yrsyrs Scenario 1: No Grants in 06/07; Scenario 1: No Grants in 06/07; Annual Grants Year 2Annual Grants Year 2 Result: 7 OG grantsResult: 7 OG grants 1.5 NP/R&D grants1.5 NP/R&D grants Scenario 2: Statutory Min. 06/07Scenario 2: Statutory Min. 06/07 Annual Grants Year 2Annual Grants Year 2 Result: 6 OG grantsResult: 6 OG grants 1.5 NP/R&D grants1.5 NP/R&D grants

Scenario 3: 15/45/60 Biennial Grants Year 1 Year 2 Year 3 Year 4 $ #

Grants $ # Grants $ #

Grants $ #

Grants

Total Grants

Opportunity (60%)

0 0 $725K 2.4 0 0 $429K 1.4 3.8

Non-Profit (45%)

$1.65M 5.5 0 0 $359K 1.2 0 0 6.7

Research ( 15%)

$550K 1.8 0 0 $120K .4 0 0 2.2

Scenario 4: 15/15/60 Biennial Grants Year 1 Year 2 Year 3 Year 4 $ #

Grants $ # Grants $ #

Grants $ #

Grants

Total Grants

Opportunity (60%)

0 0 $1.38M 4.6 0 0 $639K 2.13 6.73

Non-Profit (15%)

$550K 1.8

0 0 $153K .5 0 0 2.3

Research (15%)

$550K 1.8 0 0 $153K .5 0 0 2.3

Funding Framework: Funding Framework: Biennial Cycles after 4 Biennial Cycles after 4 yrsyrs Scenario 3: Biennial 15/45/60Scenario 3: Biennial 15/45/60 Result: 3.8 OG grantsResult: 3.8 OG grants 6.7 NP grants6.7 NP grants

2.2 RD grants2.2 RD grants Scenario 4: 15/15/60Scenario 4: 15/15/60 Result: 6.7 OG grantsResult: 6.7 OG grants 2.3 NP/R&D grants 2.3 NP/R&D grants

eacheach

B. Preferred Funding B. Preferred Funding FrameworkFramework

Annual CycleAnnual Cycle Defer Grant Funding until FY Defer Grant Funding until FY

2007/082007/08 60% total annual limit for competitive 60% total annual limit for competitive

grantsgrants– UNP = UNP = 10%10% of remaining balance of remaining balance– URD = URD = 10%10% of remaining balance of remaining balance– OG = OG = 40%40% of remaining balance of remaining balance

Joint Solicitation of 3 GrantsJoint Solicitation of 3 Grants Offer Grants earlier (July-Sept)Offer Grants earlier (July-Sept)

Recommended Action for Recommended Action for Cycle Frequency & Cycle Frequency &

Funding LevelsFunding Levels Choose Choose

– Option #2 Option #2 Annual Cycles beginning in Annual Cycles beginning in FY 2007/08FY 2007/08

Adopt Resolution #2007-35 Adopt Resolution #2007-35 with revisionswith revisions