Why? A number of reasons; some of which include:
- Current low interest rates WILL be going up.
- Federal funding including low-interest loans and grants are available now.
- Your infrastructure is not getting any younger.
- Your customers expect to receive clean, safe, and reliable drinking water from you.
In addition to the annual DWSRF funding, the Federal American Rescue Plan Act of 2021 (ARPA) provides $25 million of funds that may be used for drinking water infrastructure (among other uses). The DWP is planning to target the funds at the areas of need listed below:
- Approximately $5,000,000 of the funds for additional subsidies (GRANTS) for ALL 2021 DWSRF Projects on the Primary List evenly distributed.
- Approximately $8,000,000 of the funds for additional subsidies (GRANTS) for the 2022 DWSRF Projects on the Primary List. Applications were due October 1, 2021.
- Approximately $5,000,000 of the funds for additional subsidies (GRANTS) for all 2023 DWSRF Projects on the Primary List. Applications due SEPTEMBER 30, 2022.
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Approximately $6,000,000 will be added to the State Drinking Water GRANT Fund. This fund will be used to address lead contamination mitigation, emerging contaminants, imminent threats to public health, and sustainability for small community water systems.
Median Household Income (MHI) and your user rates play a critical role in determining the level of Principal Forgiveness (grants). If you have not raised your rates in the last 5 years you should now.
The DWSRF program assists public water systems with the cost of improving drinking water infrastructure, including but not limited to:
- New and replacement well sources.
- Treatment and pump house upgrades.
- Storage tank construction and repair.
- Water main replacements.
- New or replacement service water meters; and
- Interconnections between two or more existing public water systems.
A significant increase in money available for DWSRF Capacity Grants is also taking place. Upwards of $500,000 of money is allocated for Capacity Grants in the FY 22 DWSRF program. This will provide up to 75% of principal forgiveness up to $30,000 of project costs. The deadline for these applications is March 31, 2022.
