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

The Water Desalination Grant Program is administered by the California Department of Water Resources (DWR), a state agency committed to sustainable water resource management in California. The program is supported by funding from two voter-approved propositions: Proposition 50, passed in 2002, and Proposition 1, passed in 2014. These propositions allocated specific funds to support desalination initiatives in the state to enhance potable water supplies. DWR has awarded more than $123 million in grants to 65 projects as of May 2024, with individual awards ranging from $45,000 to $10 million. These projects include planning, design, construction, pilot studies, demonstrations, and research activities related to desalination of brackish and ocean water. The purpose of the grant program is to advance water supply reliability and drought resilience by supporting local agencies in California that seek to implement desalination technologies. The scope of eligible projects includes those targeting naturally occurring brackish and ocean water sources to generate potable water. Pilot and demonstration projects, as well as research aimed at innovation in desalination practices, are also eligible. Funding rules and allowable expenditures vary by round and are detailed in each Proposal Solicitation Package (PSP), which outlines grant conditions, application instructions, evaluation criteria, and other procedural details. DWR has conducted four formal rounds of grant funding, followed by a Continuous Application Process (CAP) that allowed applicants to submit proposals at any time, provided funds were available. However, as of now, the Continuous Application Process is suspended, and DWR is not accepting any new applications. Each round begins with a draft PSP issued for public comment, after which a final PSP is published, initiating the application period. Applications submitted by the deadline are reviewed based on PSP-defined selection criteria, and a draft list of recommended projects is released for public review. Successful applicants must sign a Funding Agreement with DWR and are reimbursed after costs are incurred, contingent on submission and review of expense documentation. Funding for the program is sourced from Proposition 50 and Proposition 1. Proposition 50 allocated $50 million specifically for desalination projects under Section 79545 of the California Water Code. Proposition 1 allocated $100 million for desalination efforts as part of a broader $725 million program for water recycling and advanced treatment. Of the Proposition 1 funds, approximately $93.1 million is allocated directly for grant recipients, with the remainder designated for bond financing and administrative costs. Proposition 1 funding is managed consistent with Proposition 50 rules and is distributed over several fiscal years, notably in FY 2015/16 and FY 2018/19. Eligible applicants are limited to local agencies within California. The specific definition of eligible agencies and project types is detailed in each PSP. Applicants must register in DWR’s online GRanTS system to submit proposals. Awarded recipients are subject to annual reporting for up to five years post-completion to document project outcomes. For further information, interested parties can contact Sean Sou, Program Lead, at Sean.Sou@water.ca.gov or (916) 902-7722, or Jennifer Pulido at Jennifer.Pulido@water.ca.gov or (916) 902-7185. Although the grant is currently closed, future funding may be possible depending on new appropriations, such as those proposed under Proposition 4.