Q & A on $31 million of federal stimulus spending for Colorado’s water quality issues
The Colorado NPS Connection recently asked Greg Naugle, Restoration & Protection Unit manager for the state’s Water Quality Control Division, about how the American Recovery and Reinvestment Act (ARRA) of 2009 will address Colorado’s water quality issues.
Q: Where will the money be directed?
A: The American Recovery and Reinvestment Act (ARRA) of 2009 funds associated with the Clean Water State Revolving Fund will be used for two important activities. The largest portion, totaling about $31.5 million, will be used to address infrastructure needs at publically owned treatment works. The Clean Water State Revolving Fund indentifies infrastructure priorities through the Intended Use Plan (IUP). The IUP is updated annually and prioritizes needs based on five discrete tiers, with tier 1 projects receiving the highest priority. The current 2009 IUP has identified over $350 million dollars in project funding needs across all five priorities. There are currently 58 projects that have met the “shovel-ready” criteria and are being considered for ARRA stimulus funding.
The second portion of the Clean Water State Revolving Fund includes a 1 percent budget allotment (about $300,000) for required planning under sections 106, 205, 303 and 305 of the Clean Water Act. These require that the state undertake regional or statewide planning to establish water quality goals and standards, and develop ongoing programs or activities to meet those goals. This is handled by the councils of governments for four designated planning areas, and by the state Water Quality Control Division (WQCD) for the remaining nondesignated areas. The WQCD will utilize the ARRA funds to develop a statewide water quality management plan, and update existing water quality plans to address new goals and green infrastructure requirements. These funds are required to be utilized for water quality planning activities.
Q: How will the funds impact the state's NPS program?
A: Currently, there are no ARRA funds available for the state’s NPS program.
Q: When will the funds be distributed, and on what terms?
A: The process to qualify for ARRA funds from the Clean Water State Revolving Fund is well underway. Several critical deadlines, included submittal of preliminary engineering reports, have already passed. The next step is final approval of the projects, which will occur on May 11 when the final list is reviewed and approved by the Water Quality Control Commission.
The terms of the funds are about 50 percent as zero percentage loans, with the remaining 50 percent of funds utilized by way of loan forgiveness. Based on existing Clean Water State Revolving Fund requirements, there are no “true” grants available. A final requirement is that 20 percent of the funds must be issued to projects that are considered green infrastructure as a whole, or a portion, of the project.
Q: Will green infrastructure/LID projects be considered for funding?
A: Not directly through the Clean Water State Revolving Fund, but there may be opportunities associated with those projects that receive final funding.