The American Recovery and Reinvestment Act of 2009 (ARRA) contains $13.5 billion for projects in water infrastructure construction and improvements. Just over half of those funds will go toward capitalization grants for states and local governments to improve their drinking water and wastewater treatment systems, while the other half will go to water infrastructure projects conducted by such entities as the U.S. Army Corp of Engineers (Corps) and Bureau of Reclamation (Bureau). The total ARRA funding for water-infrastructure projects is divided between five federal agencies and one commission and is subject to the general ARRA goal that at least 50 percent of the funds go to activities that can be obligated within 120 days of enactment, unless otherwise indicated.
Funding for Wastewater and Drinking Water-Infrastructure Improvements
The Clean Water Act (CWA) and Safe Drinking Water Act (SDWA) both provide for federal capitalization grants to support the Drinking Water State Revolving Fund (SRF), which in turn provides low- or no-interest loans to communities for water-infrastructure projects. Congress provided an additional $4 billion in funding for municipal wastewater-treatment facilities and $2 billion for drinking-water improvements. These funds are managed by the U.S. Environmental Protection Agency (EPA). The $6 billion represents four times the amount of funding these programs received in 2008, while the ARRA also eliminated the need for states to provide a 20-percent matching amount for each project. The chart below shows the expected amount each state will receive for both their CWA grants and SDWA SRF loans. Priority will be given to projects that can commence construction within a year of the ARRA enactment.
For communities with populations of 10,000 people or fewer, the U.S. Department of Agriculture (USDA) Rural Utilities Service (RUS) provides additional funds for water- and wastewater-related infrastructure projects. Congress approved $1.38 billion in funding for the program in the ARRA, with $968 million in grants and $412 million in direct loans, which is 2.5 times more than the 2008 funding level. This funding will help alleviate the program’s $2.4 billion in backlog requests.
General Water Efficiency Infrastructure Funding in the ARRA
Both the Corps and the Bureau oversee massive water-related infrastructure projects, including dams, levees, irrigation pipelines, and water-supply infrastructure. In the ARRA, Congress provided $4.6 billion to the Corps and $1 billion to the Bureau; however, these amounts must be used on projects that can be entirely completed with the funding and would not create any future budgetary obligations. Furthermore, Corps water-related environmental infrastructure projects such as wastewater-treatment plants, are guaranteed to receive at least $200 million of these funds, while $126 million of the Bureau money must be spent on water-reclamation and reuse projects. Congress also doubled the length of time for repayment — extending it to 50 years — for water-supply customers to repay the Bureau for the cost of placing the infrastructure. As discussed previously, these funds are subject to the ARRA’s general goal that 50 percent of the funding be obligated within 120 days of enactment.
Water Infrastructure Funding in the ARRA
|
Agency |
Program |
Final Funding |
|
EPA |
Clean Water State Revolving Fund capitalization grants |
$4 billion |
|
EPA |
Drinking Water State Revolving Fund capitalization grants |
$2 billion |
|
RUS/USDA |
Rural water and waste disposal grants and loans |
$1.38 billion |
|
Bureau of Reclamation/Department |
Water and related resources |
$1 billion |
|
Corps/U.S. Department of Defense (DOD) |
Army Corps of Engineers Civil Works Program |
$4.6 billion |
|
Natural Resources Conservation Service (NRCS)/USDA |
Small Watershed Program |
$340 million |
|
International Boundary and Water Commission (IBWC)/Department of State |
International Boundary and Water Commission |
$220 million |
|
|
TOTAL |
$13.5 billion |
State Allocation of EPA Wastewater and Drinking Water Funds in the ARRA
|
State |
Final H.R. 1 Clean Water SRF Funds |
Final H.R. 1 Drinking Water SRF Funds |
|
Alabama |
$44,163,600 |
$19,500,000 |
|
Alaska |
$23,637,900 |
$19,500,000 |
|
Arizona |
$26,676,000 |
$55,380,000 |
|
Arkansas |
$25,837,500 |
$24,570,000 |
|
California |
$282,465,300 |
$158,925,000 |
|
Colorado |
$31,590,000 |
$34,320,000 |
|
Connecticut |
$48,383,400 |
$19,500,000 |
|
Delaware |
$19,386,900 |
$19,500,000 |
|
District of Columbia |
$19,386,900 |
$19,500,000 |
|
Florida |
$133,313,700 |
$86,814,000 |
|
Georgia |
$66,775,800 |
$54,795,000 |
|
Hawaii |
$30,587,700 |
$19,500,000 |
|
Idaho |
$19,386,900 |
$19,500,000 |
|
Illinois |
$178,620,000 |
$79,560,000 |
|
Indiana |
$95,183,400 |
$27,300,000 |
|
Iowa |
$53,453,400 |
$24,375,000 |
|
Kansas |
$35,649,900 |
$19,500,000 |
|
Kentucky |
$50,267,100 |
$20,475,000 |
|
Louisiana |
$43,414,800 |
$27,690,000 |
|
Maine |
$30,572,100 |
$19,500,000 |
|
Maryland |
$95,522,700 |
$26,910,000 |
|
Massachusetts |
$134,093,700 |
$52,260,000 |
|
Michigan |
$169,817,700 |
$67,470,000 |
|
Minnesota |
$72,590,700 |
$35,100,000 |
|
Mississippi |
$35,583,600 |
$19,500,000 |
|
Missouri |
$109,484,700 |
$37,830,000 |
|
Montana |
$19,386,900 |
$19,500,000 |
|
Nebraska |
$20,202,000 |
$19,500,000 |
|
Nevada |
$19,386,900 |
$19,500,000 |
|
New Hampshire |
$39,468,000 |
$19,500,000 |
|
New Jersey |
$161,393,700 |
$43,095,000 |
|
New Mexico |
$19,386,900 |
$19,500,000 |
|
New York |
$435,930,300 |
$86,775,000 |
|
North Carolina |
$71,280,300 |
$65,715,000 |
|
North Dakota |
$19,386,900 |
$19,500,000 |
|
Ohio |
$222,339,000 |
$58,500,000 |
|
Oklahoma |
$31,909,800 |
$31,395,000 |
|
Oregon |
$44,616,000 |
$28,470,000 |
|
Pennsylvania |
$156,444,600 |
$65,715,000 |
|
Rhode Island |
$26,520,000 |
$19,500,000 |
|
South Carolina |
$40,458,600 |
$19,500,000 |
|
South Dakota |
$19,386,900 |
$19,500,000 |
|
Tennessee |
$57,372,900 |
$20,280,000 |
|
Texas |
$180,515,400 |
$160,680,000 |
|
Utah |
$20,810,400 |
$19,500,000 |
|
Vermont |
$19,386,900 |
$19,500,000 |
|
Virginia |
$80,827,500 |
$20,670,000 |
|
Washington |
$68,682,900 |
$41,730,000 |
|
West Virginia |
$61,565,400 |
$19,500,000 |
|
Wisconsin |
$106,770,300 |
$37,830,000 |
|
Wyoming |
$19,386,900 |
$19,500,000 |
|
American Samoa |
$3,545,100 |
$591,923 |
|
Guam |
$2,566,200 |
$1,723,453 |
|
Northern Mariana Islands |
$1,649,700 |
$1,126,262 |
|
Puerto Rico |
$51,511,200 |
$19,500,000 |
|
Virgin Islands |
$2,059,200 |
$3,082,346 |
|
TOTAL |
$3,899,992,200 |
$1,949,152,982 |
Source: Congressional Research Service
Additional Links
Text of the ARRA:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf
U.S. House of Representatives Committee on Appropriations press release:
http://appropriations.house.gov/pdf/PressSummary02-13-09.pdf
Legal News is part of our ongoing commitment to providing legal insight to our environmental clients and our colleagues.
Please contact your Foley Environmental attorney if you have any questions about these topics or want additional information regarding environmental matters. Authors and editors:
Bruce A. Keyes
Milwaukee, Wisconsin
414.297.5815
[email protected]
Benjamin P. Sykes
Milwaukee, Wisconsin
414.319.7333
[email protected]
