Funds Available for Infrastructure Improvements
Municipal Projects May Qualify for Federal Aid
100% grants are now available for municipal water and sewer improvements! The American Rescue Plan Act (ARPA) established a fund that may be used by municipalities to make necessary investments in water and/or sewer infrastructure, or broadband infrastructure. These investments can improve access to clean drinking water, improve wastewater and stormwater infrastructure, and provide access to high-quality broadband service. Municipal governments can use discretion to identify investments in water and sewer infrastructure that are of the highest priority for their own communities.
What are Eligible Projects?
The ARPA aligns eligible uses of the funds with the wide range of types of projects that would be eligible for financial assistance through the Environmental Protection Agency's (EPA) Clean Water State Revolving Fund (CWSRF) or Drinking Water State Revolving Fund (DWSRF). Here's some examples.
CWSRF Eligible Projects
- Construct, improve and repair wastewater treatment plants
- Manage and treat stormwater or subsurface drainage water
- Address cybersecurity needs to protect sewer infrastructure
- Control non-point sources of pollution
- Improve resilience of infrastructure to severe weather events
- Create green infrastructure and protect waterbodies from pollution
DWSRF Eligible Projects
- Construct water infrastructure capital improvements
- Install and/or replace failing treatment and distribution systems
- Ensure compliance with applicable health and environmental safety requirements
- Replace lead service lines
Stormwater Eligible Projects
- Green infrastructure investments, such as projects to improve resilience to the effects of climate change
- Green insrastruicture projects that support stormwater system resilience
- Rain gardens
- Green streets
Here's What Else You Should Know
For all investments, cost must be incurred (obligated) by December 31, 2024. Federal funds will be dispersed 50% immediately, and 50% in FY 2022. Non-entitlement units of govenment (NEUs) must file a "Project and Expenditure Report" by October 31, 2021, and then annually thereafter.
That's a lot of information to digest! Reach out to Mark Hurley with any questions or if our team can help this unprecedented opportunity.