Tag: dwsrf

Navigating the Complicated Maze of Funding Opportunities for Water and Wastewater Projects

Navigating the complicated maze of funding opportunities can be, well, complicated; there’s the time it takes to research applicable programs, time to understand them and their application guidelines, then there’s organizing your own initiatives and keeping track of deadlines. Municipalities also have to weigh the pros and cons of choosing a public or private program (or maybe a hybrid!) or if they should venture into federal initiatives or state-specific programs.

Combined, all of these decisions can make a necessary task a daunting one.

Each source of funding comes with its own set of requirements, benefits, funding parameters, and other considerations. By taking the time and care to properly research the available opportunities, water and wastewater utilities can secure the critical resources they need in order to deliver better outcomes for their communities.

But where do you start? Right here!

While this is by no means an exhaustive list of all of the funding opportunities available to us in New England, it’s an informative and comprehensive starting point.

State Revolving Funds (SRFs)

Clean Water State Revolving Fund (CWSRF)

The Clean Water State Revolving Fund (CWSRF) is a federal-state partnership program with the EPA that provides funding to projects focused on reducing water pollution and protecting our vital water sources.

Eligible projects include, but are not limited to, ones with a focus on constructing or repairing existing sewer systems, creating green infrastructure, mitigating nonpoint source pollution from runoff and urban stormwater, and other water management projects. In the form of zero percent interest to low-interest loans (and a 20% match by the state), the CWSRF is able to help municipalities upgrade their wastewater treatment facilities, which is crucial in removing contaminants and providing residents with clean, safe, and accessible drinking water.

Drinking Water State Revolving Fund (DWSRF)

The Drinking Water State Revolving Fund (DWSRF) is another federal-state partnership program that provides funding for municipalities needing to make crucial improvements to their infrastructure, specifically those in small and economically disadvantaged communities.

Funding is given in low-interest loans and grants to eligible projects that are in need of repairing and upgrading wells and storage tanks to mitigate contamination, connecting multiple water systems, replacing broken or damaged pipes, building water treatment plants, or creating entirely new systems. In doing so, the DWSRF helps municipalities also fall in compliance with the EPA’s Safe Drinking Water Act (SDWA) by not only promoting public health but also ensuring residents can have access to clean, safe, and reliable drinking water.

It’s important to note that a stipulation of the funding is that eligible states must be able to match 20% of the grant.

Compared to the CWSRF, the DWSRF mainly aids projects with a focus on the safety and reliability of our drinking water. Whereas the CWSRF focuses on addressing wastewater infrastructure needs head-on, However, both are critical funding opportunities that focus on maintaining and improving our nation’s water infrastructure, protecting public health, and fostering environmental sustainability.

To read more information about these two SRFs, you can read our previous blog.

Water Infrastructure Finance and Innovation Act (WIFIA)

The EPA’s WIFIA is a federal initiative that provides funding for eligible water and wastewater infrastructure projects. The funding is long-term and in the form of low-cost loans for projects that require substantial financial assistance on both a regional and national level. What is particularly great about this act is that the WIFIA funds are able to cover up to 49% of eligible project costs, meaning this kind of funding can make a serious impact on local municipalities that are in great need.

WIFIA is open to eligible projects that are also eligible for the Clean Water SRF, Drinking Water SRF, and other water facility energy efficiency projects. Other projects like desalination, aquifer recharge, water recycling, and drought mitigation, among others, are also eligible. More information on WIFIA can be found here.

Emerging Contaminants in Small or Disadvantaged Communities Grant (EC-SDC Grant)

The EC-SDC Grant is a great resource for small or disadvantaged communities that are in critical need of improving their drinking water. With the funding, eligible municipalities can develop projects and activities in response to emerging contaminants, including PFAS. In doing so, they have the necessary tools to provide their citizens with continuous, clean drinking water. It should be taken into consideration that only municipalities with a population of 10,000 or less are eligible for this grant.

By focusing on communities with limited resources, this grant is able to better bridge the gap we often see in water quality and public health protection compared to more privileged communities, while supporting critical infrastructure improvements and instilling environmental justice across the state.

United States Department of Agriculture (USDA)’s Water and Waste Disposal Loan and Grant Program

The United States Department of Agriculture (USDA) supports rural water and wastewater utilities through its Water and Waste Disposal Loan and Grant Program. This initiative focuses on only rural areas and small towns with populations of 10,000 or fewer, which, as we know, are often in need of financial assistance to take care of their critical infrastructure needs.

Funding is in the form of long-term, low-interest loans and can be used for acquiring, building, or improving drinking water systems, sewer systems, solid waste management, and stormwater systems. The program also covers other areas of the project, such as legal and engineering fees, land acquisition, permits, equipment, start-up operations, etc., that are vital for public health and environmental sustainability.

In addition to federal programs, there are funding opportunities for each state. States often have their own grant and loan programs that are tailored specifically to their own unique regional challenges and priorities. For example, you can find more information on water resources grants and other financial assistance for projects such as drinking water, wastewater, septic systems, wetlands, and watersheds within the Commonwealth here.

Conclusion

Remaining proactive in the hunt for water and wastewater financial assistance is not for the faint of heart. But it is evident that there are a range of options out there that are often able to be combined. Navigating federal programs, state-specific funds, private grants, and public-private partnerships can be overwhelming, but they provide communities with the robust framework they require in order to take the next steps in addressing their infrastructure needs.

By prioritizing these opportunities, utilities can not only overcome financial barriers, but they can also gain the necessary tools to find long-term solutions while completing their goal of providing their communities with accessible, clean, and safe drinking water.

You can also read more about other funding opportunities by visiting our previous blog, Funding 101: Where to Find Money for Critical Water and Wastewater Projects.

Funding 101 – Where to Find Money for Critical Water and Wastewater Projects

When communities grow and expand, utilities must do the same while keeping up with quality and regulatory requirements. With aging infrastructure and limited capital dollars, utilities must find alternative ways of funding crucial projects. Fortunately, several state and federal agencies realize this pressing issue and are collectively helping utilities and private organizations procure the resources they need. While making decisions on which projects and issues to be addressed first may be challenging, acquiring the capital to complete these projects is available – if you know where to look.

Drinking Water State Revolving Fund (DWSRF)

The newly completed 8.0 mgd DAF Long Pond Water Treatment Plant in Falmouth, MA was funded through the DWSRF program.

The EPA’s DWSRF can be used for infrastructure improvements in drinking water systems. The DWSRF emphasizes funding to small and economically disadvantaged communities, allowing them to finance improvements needed to comply with the Safe Drinking Water Act and to address the most serious risks to human health. The DWSRF authorizes the EPA to make grants to states each year to which each state must match 20% of its grant and develop intended use plans indicating how the allotted funds will be used. The six categories of projects that are eligible to receive DWSRF assistance include the following:

  • Treatment: Projects to install or upgrade facilities to improve drinking water quality to comply with SDWA regulations.
  • Transmission and Distribution: Rehabilitation, replacement, or installation of pipes to improve water pressure to safe levels or to prevent contamination caused by leaky or broken pipes.
  • Source: Rehabilitation of wells or development of eligible sources to replace contaminated sources
  • Storage: Installation or upgrade of finished water storage tanks to prevent microbiological contamination from entering the distribution system.
  • Consolidation: Interconnecting two or more water systems.
  • Creation of New Systems: Construction of a new system to serve homes with contaminated individual wells, or consolidation of existing systems into a new regional water system.

Public water systems are eligible to receive DWSRF assistance if they have the capacity to ensure compliance with the Safe Drinking Water Act or meet certain conditions to return to compliance. Systems owned by federal agencies are not eligible.

Clean Water State Revolving Fund (CWSRF)

The Lyndon, VT wastewater treatment plant upgrade project received over $7.2 million in CWSRF and USDA Rural Development funding.

The CWSRF program is a federal-state partnership with the EPA that provides communities a permanent, independent source of low-cost financing for a wide range of water quality infrastructure projects. The EPA provides grants to all 50 states plus Puerto Rico to capitalize state CWSRF loan programs. These programs function like environmental infrastructure banks by providing low interest loans to eligible recipients for high priority water quality activities. Projects that are eligible for DWSRF funding include the following:

CWSRF funding for public, private, and nonprofit entities:

  • National Estuary Program Projects: Development and implementation of a conservation and management plan
  • Nonpoint Source: Implementation of a state nonpoint source pollution management program
  • Stormwater: Measures to manage, reduce, treat, or recapture stormwater or subsurface drainage water
  • Decentralized Wastewater Treatment Systems: Construction, repair, or replacement of decentralized wastewater treatment systems that treat municipal wastewater or domestic sewage
  • Watershed Pilot Projects: Development and implementation of watershed projects
  • Security Measures at Publicly Owned Treatment Works: Measures to increase the security of publicly owned treatment works
  • Water Reuse: Projects for reusing or recycling wastewater, stormwater, or subsurface drainage water

CWSRF funding for municipalities, inter-municipal, interstate, or state agencies

  • Water Conservation, Efficiency, and Reuse: Measures to reduce the demand for publicly owned treatment works capacity through water conservation, efficiency, or reuse
  • Construction of Publicly Owned Treatment Works: Construction of publicly owned treatment works
  • Energy Efficiency: Measures to reduce the energy consumption needs for publicly owned treatment works

CWSRF funding for qualified nonprofit entities:

  • Technical Assistance: Provide technical assistance to owners and operators of small and medium sized publicly owned treatment works to plan, develop, and obtain financing for CWSRF eligible projects and to assist each treatment works in achieving compliance with the CWA.

Water and Environmental Programs (WEP)

USDA Rural Development provides funding for the construction of water and waste facilities in rural communities and also provides funding to organizations that provide technical assistance and training to rural communities in relation to their water and waste activities. WEP is the only Federal program exclusively focused on water and waste infrastructure needs of rural communities with populations of 10,000 or less. WEP is administered through National Office staff in Washington, DC, and a network of field staff in each State. Types of grants offered by WEP funding include the following.

  • Emergency Community Water Assistance Grants: Helps eligible communities prepare for, or recover from, an emergency that threatens the availability of safe, reliable drinking water for households and businesses. Emergencies include drought or flood; earthquake; tornado; hurricane; disease outbreak; chemical spill, leak, or seepage; or other disasters.
  • Water & Waste Disposal Loan & Grant Program: Provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and stormwater drainage to households and businesses in eligible rural areas. This program assists qualified applicants that are not otherwise able to obtain commercial credit on reasonable terms.
  • Water & Waste Disposal Predevelopment Planning Grants: Assists low income communities with initial planning and development of an application for USDA Rural Development Water and Waste Disposal direct loan/grant and loan guarantee programs.

Community Development Block Grant (CBDG)

The Town of Palmer, MA benefited from a CBDG for a recent water main project.

CDBG funds are generally used for long-term community needs, including mitigation. Beginning in 1974, the CDBG program is one of the longest continuously run programs at the Department of Housing and Urban Development (HUD). The CDBG program provides annual grants on a formula basis to 1209 general units of local government and States. Utilities can use these grants to buy, construct, or fix public facilities such as water and sewer systems. They can also match FEMA grants. Grantees may fund activities that meet urgent community development needs. CDBG funds may be allocated for many different activities including the following:

  • Construction or reconstruction of water and sewer facilities, streets, and other public works
  • Relocation and demolition
  • Rehabilitation of public and private buildings
  • Planning activities
  • Activities relating to energy conservation and renewable energy resources

Public Works Program

 The U.S. Economic Development Administration’s (EDA) Public Works Program helps distressed communities revitalize, expand, and upgrade their physical infrastructure. This program enables communities to attract new industry, encourage business expansion, diversify local economies, and generate or retain long-term, private-sector jobs and investment through the acquisition or development of land and infrastructure improvements needed for the successful establishment or expansion of industrial or commercial enterprises. EDA invests in public works projects, including water and sewer systems improvements, that meet the following criteria:

  • The project’s demonstrated alignment with at least one of EDA’s current investment priorities
  • The project’s potential to promote job creation and private investment in the regional economy
  • The likelihood that the project will achieve its projected outcomes
  • Ability of the applicant to successfully implement the proposed project, including financial and management

OF NOTE: Funding Programs Targeted by Trump’s FY18 Budget

Trump’s proposed FY18 budget includes deep cuts to the nation’s major infrastructure programs. Both the DWSRF and CWSRF, funded by the EPA, are slated for drastic reduction under Trump’s budget, while the CBDG program is marked for elimination. In fact, Trump’s budget proposes to completely eliminate 66 federal programs including not only CBDG but also the United States Department of Agriculture’s Rural Water and Waste Disposal Program, and the Northern Border Regional Commission, which is a Federal-State partnership for economic and community development within the most distressed counties of Maine, New Hampshire, Vermont, and New York. Without these funding programs, some communities may not be able to implement needed system improvements.

In Conclusion

Utilities face an uphill battle when it comes to keeping their distribution systems up to date and running efficiently. Both public and private entities are seeing the increase in demand outpacing capital, threatening crucial projects. Fortunately, state and federal funding is available to help alleviate the financial burden facing many communities, while capital efficiency planning helps communities prioritize projects. Sufficient funding and planning today can assure efficiency and deliverability for future generations.

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Ribbon Cutting Ceremony for New Water Storage Tank in New Britain, CT

Elam Street water storage tank ribbon cutting ceremony in New Britain, Connecticut was held on June 17, 2016
Elam Street water storage tank ribbon cutting ceremony in New Britain, Connecticut was held on June 17, 2016

On Friday, June 17, 2016, New Britain Mayor Erin E. Stewart hosted a ribbon cutting ceremony to mark the completion of the construction of the new Elam Street water storage tank. In addition to Mayor Stewart, other attendees included Director of Utilities Gilbert Bligh, Raul Tejada from the Connecticut Department of Public Health, and Tata & Howard Vice President Steve Rupar, P.E.

Tata & Howard provided design, bidding, construction administration, and resident observation services for this important New Britain Water Department Project.  The new 2.0 million gallon, precast, prestressed, wire-wound, concrete water storage tank replaces an existing deteriorated 4 million gallon water storage tank constructed in 1956.  The project also included construction of  approximately 450 linear feet of new 16-inch diameter water main, mechanically cleaning and cement mortar lining approximately 430 linear feet of 20-inch diameter main, upgrades to the Corbin Avenue Pump Station and West Main Street Gatehouse, and demolition of much of  the existing water storage tank.  The lower portion of the existing water storage tank was repurposed as a drainage and overflow retention basin for the new storage tank.  Construction of the $3.3 million project was funded through the Drinking Water Revolving Fund, administered by the Department of Public Health.

Funding Assistance to Meet Water and Wastewater Infrastructure Needs

 

Water and Wastewater Infrastructure

Water and Wastewater Infrastructure Infographic courtesy of WaterIsLife.net
Water and Wastewater Infrastructure Infographic courtesy of WaterIsLife.net

The vast and intricate network of pipes buried beneath our feet is one of the key contributors to the economic success of our nation. Unfortunately, much of our water infrastructure was installed prior to WWII, with some east coast pipes dating back to the late 1800s. Also, many of our nation’s wastewater treatment plants were built in response to the passage of the 1974 Clean Water Act and are now 30-40 years old. Therefore, much of our nation’s water and wastewater infrastructure has reached the end of its useful life and requires repair or replacement.

The ASCE gave both Drinking Water and Wastewater a “D” grade in its 2013 Report Card for America’s Infrastructure; and because water has been so historically undervalued in America, municipalities simply do not have the funds to make the required improvements. In fact, a 2002 US EPA study titled Clean Water and Drinking Gap Analysis Report compared America’s drinking water and wastewater infrastructure needs to the available revenues of utilities. Without including exacerbating factors such as population growth or climate change, the report showed a projected gap in funding over the next 20 years of over $500 billion.

Certainly, our nation must find a way to bridge the funding gap, which will require rate increases and, therefore, community education on conservation practices as well as the value of water. And while these rate increases will provide a portion of the necessary funding, utilities and consumers alone cannot carry the full burden of the funding gap. Thankfully, there are myriad funding opportunities available to assist communities with critical water and wastewater improvements, some of which are listed below:

USDA Rural Development Water & Waste Disposal Loan & Grant Program

Burst water main
Burst water main

The USDA Rural Development (RD) Water & Waste Disposal Loan & Grant Program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and stormwater drainage to households and businesses in eligible rural areas. This program assists qualified applicants that are not otherwise able to obtain commercial credit on reasonable terms. Areas that may be served include rural areas and towns with fewer than 10,000 people, tribal lands in rural areas, and colonias.

USDA RD funding provides long-term, low-interest loans which may be combined with grants if necessary to keep user costs reasonable. Funds may be used to finance the acquisition, construction, or improvement of drinking water sourcing, treatment, storage and distribution; sewer collection, transmission, treatment, and disposal; solid waste collection, disposal and closure; and stormwater collection, transmission, and disposal.

Clean Water State Revolving Fund (CWSRF) Program

stormwater drainEstablished by the 1987 amendments to the Clean Water Act, the CWSRF Program is a federal-state partnership that provides a permanent, independent source of low-cost financing to communities for a wide range of water quality infrastructure projects. The program is a powerful partnership between EPA and the states that gives states the flexibility to fund a range of projects that address their highest priority water quality needs.

Using a combination of federal and state funds, state CWSRF programs provide loans to eligible recipients for many types of water infrastructure projects, including construction of publicly owned treatment works; nonpoint source; national estuary program projects; decentralized wastewater treatment systems; stormwater; water conservation, efficiency, and reuse; watershed pilot projects; energy efficiency; water reuse; security measures at publicly owned treatment works; and technical assistance.

Drinking Water State Revolving Fund (DWSRF) Program

Water storage tank in Somersworth, NH
Water storage tank in Somersworth, NH

The DWSRF Program is a federal-state partnership to help ensure safe drinking water. Created by the 1996 Amendments to the Safe Drinking Water Act (SDWA), the DWSRF is a financial assistance program to help water systems and states achieve the health protection objectives of the SDWA. The program is a powerful partnership between EPA and the states. Building on a federal investment of over $17.3 billion, the state DWSRFs have provided more than $27.9 billion to water systems through 2014. This assistance was provided through over 11,400 assistance agreements for improving drinking water treatment; fixing leaky or old pipes (water distribution); improving source of water supply; replacing or constructing finished water storage tanks; and other infrastructure projects needed to protect public health.

The DWSRF Program funds a wide range of drinking water infrastructure projects, including treatment projects to install or upgrade facilities to improve drinking water quality to comply with SDWA regulations; transmission and distribution rehabilitation, replacement, or installation to improve water pressure to safe levels or to prevent contamination caused by leaky or broken pipes; rehabilitation of wells or development of eligible sources to replace contaminated sources; installation or upgrade of finished water storage tanks to prevent microbiological contamination from entering the distribution system; interconnecting two or more water systems; constructing a new system to serve homes with contaminated individual wells; and consolidating existing systems into a new regional water system.

Water Infrastructure Finance and Innovation Act (WIFIA)

Business concepts - ship from dollar money on water

Enacted in 2014 as part of the Water Resources and Reform Development Act, WIFIA establishes a financing mechanism for water and wastewater infrastructure projects to be managed by EPA Headquarters. The WIFIA program provides low interest rate financing for the construction of water and wastewater infrastructure. Funded projects must be nationally or regionally significant, and individual projects must be anticipated to cost no less than $20 million.

WIFIA works separately from, but in coordination with, the State Revolving Fund (SRF) programs to provide subsidized financing for large dollar-value projects. Eligible projects include CWSRF eligible projects; DWSRF eligible projects; projects for enhanced energy efficiency at drinking water and wastewater facilities; acquisition of property if it is integral to the project or will mitigate the environmental impact of a project; bundled SRF projects submitted under one application by an SRF program; and combinations of projects secured by a common security pledge.

Northern Border Regional Commission (NBRC)

Troy-Jay, VT received $250,000 from NBRC for upgrades to the community's wastewater treatment plant pump station
Troy-Jay, VT received $250,000 from NBRC for upgrades to the community’s wastewater treatment plant pump station

The NBRC was formed by Congress in 2008 in order to help fund economic and community development projects in Maine, New Hampshire, Vermont, and New York. NBRC was formed to help alleviate distress in the hard-hit northern counties of each state.  Bordering Canada, these counties generally have higher levels of unemployment,  population loss, and lower incomes.

Eligible projects include those that develop the transportation, telecommunication, and basic public infrastructure within the region; assist the region in obtaining job skills and employment related education, as well as entrepreneurship, technology, and business development; provide basic health care and other public services for those areas that are severely economically distressed and underdeveloped; encourage resource conservation, tourism, recreation, and preservation of open spaces in a manner consistent with economic development goals; or support the development of renewable and alternative energy sources.

Other Funding Sources

Wastewater treatment plant in Flagstaff, AZ
Wastewater treatment plant in Flagstaff, AZ

In addition to those listed above, there are many other funding sources. Some of these include SWMI Grants, Water Infrastructure Assessment and Planning Grants, Community Block Development Grants (CBDG), and Watersheds & Water Quality in Massachusetts; Water Infrastructure Finance Authority of Arizona (WIFA) and Water and Wastewater Energy Efficiency Rebates through Arizona Public Service (APS) in Arizona; State Aid Grant Program (SAG) in New Hampshire; and Texas Water Development Fund (TWDF), Economically Distressed Areas Program (EDAP), Rural Water Assistance Fund (RWAF), and the State Participation Program (SPP) in Texas.

In Conclusion

Investing in water and wastewater infrastructure now is critical to the sustainability of our economy and the health of our nation. By implementing necessary rate increases and conservation techniques along with community education and robust funding assistance, our nation will have the ability to successfully to bridge the infrastructure funding gap and ensure the economic and environmental viability of our nation for both present and future generations.

EPA Provides New England with over $165 Million for Water Infrastructure Projects

 

606px-Environmental_Protection_Agency_logo.svgThe U.S. Environmental Protection Agency (EPA) has awarded funds to all six New England states to help finance improvements to water projects that are essential to protecting public health and the environment. The funds will be primarily used to upgrade sewage plants and drinking water systems, as well as replacing aging infrastructure, throughout the state. Awards were made to the Clean Water State Revolving Fund (CWSRF) program in each state, which provides low-interest loans for water quality protection projects to make improvements to wastewater treatment systems, control pollution from stormwater runoff, and protect sensitive water bodies and estuaries; and to the Drinking Water State Revolving Fund (DWSRF) program in each state, which provides low-interest loans to finance improvements to drinking water systems, with a particular focus on providing funds to small and disadvantaged communities and to programs that encourage pollution prevention as a tool for ensuring safe drinking water.

The awards are as follows:

  • Connecticut: $26 million — $17.1 million CWSRF, $8.9 million DWSRF
  • Maine: $19.6 million — $10.8 million CWSRF, $8.8 million DWSRF
  • Massachusetts: $63.7 million — $47.4 million CWSRF, $16.3 million DWSRF
  • New Hampshire: $22.7 million — $13.9 million CWSRF, $8.8 million DWSRF
  • Rhode Island: $18.2 million — $9.4 million CWSRF, $8.8 million DWSRF
  • Vermont: $15.6 million — $6.8 million CWSRF, $8.8 million DWSRF

Since the beginning of this program, EPA has awarded approximately $4.554 billion to New England states for the construction, expansion, and upgrading of clean water infrastructure resulting in decreased pollution entering waterbodies throughout the state.

As communities develop and climate patterns shift, water infrastructure needs are expected to grow. Green infrastructure is a cost-effective and resilient approach to water infrastructure needs that provides benefits to communities across the nation.