Water Desalination Grant Program Continuous Application Process Group 6 (CAP6)

The California Department of Water Resources administers the Water Desalination Grant Program, a state-funded initiative created to support the development of new potable water supplies through desalination. The program provides financial assistance to local agencies undertaking projects to desalinate naturally occurring brackish water and seawater, while also funding pilot studies, demonstration efforts, and applied research. Funding has historically been provided through voter-approved bonds, including Proposition 50 (2002) and Proposition 1 (2014). As of May 2024, more than $123 million in grants, ranging from $45,000 to $10,000,000, have been awarded to 65 projects. These efforts have contributed to advancing California’s water resilience and infrastructure during periods of drought and long-term climate variability. The program has operated through multiple funding rounds, beginning in 2005. The first three rounds were financed with Proposition 50 funds, and the fourth round, along with a Continuous Application Process (CAP), was funded through a combination of Proposition 50 and Proposition 1 allocations. The CAP was designed to accept proposals on an ongoing basis, allowing applicants to submit projects as funding became available, but this option has since been suspended. Currently, the Department of Water Resources is not accepting applications under this program. The application process historically followed a structured format outlined in a Proposal Solicitation Package (PSP) issued for each funding round. The PSP detailed eligible applicants, project types, and evaluation criteria. It also included application instructions, review procedures, and the method of ranking and selection. Draft PSPs were made available for public comment before final adoption. Once the application period opened, submissions were reviewed against the selection criteria, followed by the release of a draft funding recommendation list, which was again opened for public comment before awards were finalized. Successful applicants were required to enter into a formal Funding Agreement with the Department. Disbursements were made on a reimbursement basis, requiring grantees to submit expense documentation, and post-project reporting obligations could extend up to five years after completion. The funding sources underpinning the program are linked to legislative actions. Proposition 50, approved in 2002, authorized $50 million specifically for desalination grants. Later, Proposition 1, passed in 2014, dedicated $100 million of its broader $725 million water supply and infrastructure allocation to desalination projects, with approximately $93.1 million reserved for grants after accounting for administrative and financing costs. Proposition 1 specified that funds be administered consistently with Proposition 50 requirements, ensuring continuity in oversight and compliance provisions. Eligibility was defined within each PSP and generally limited to local public agencies and water suppliers in California. Applicants were required to demonstrate technical feasibility and financial capacity to complete their projects. Project types included construction of full-scale facilities, design and feasibility studies, and technology demonstration projects. The Department of Water Resources evaluated proposals based on criteria such as project readiness, cost-effectiveness, expected water supply benefits, environmental considerations, and alignment with statewide water management priorities. At present, no open deadlines are available because the Continuous Application Process has been suspended and no new funding round has been announced. Interested applicants and stakeholders are encouraged to monitor the Department of Water Resources’ Water Desalination Program webpage for updates. For inquiries, the program identifies two key contacts: Sean Sou, Program Lead, who can be reached by email at Sean.Sou@water.ca.gov or by phone at (916) 902-7722, and Jennifer Pulido, reachable at Jennifer.Pulido@water.ca.gov or (916) 902-7185. These officials provide direct assistance to potential applicants and can clarify program requirements, funding cycles, and future opportunities.