PNCWA Newsletter Article - June 2009

I wrote the following article which was published in the Pacific Northwest Clean Water Association Newsletter during the Second Quarter 2009 and is posted here because it has some good links to Oregon, Washington, and Idaho SRF information. If you are not from this region but looking for this kind of information, please start with your regional EPA website.

American Recovery and Reinvestment Act (ARRA) of 2009, the $787 billion stimulus bill congress passed in February 2009, has been a bit slow in taking effect according to some commentators, however the reality is that the law itself has some difficult requirements.

The first difficulty is the requirement that the funded projects must be “under construction” no later then February 16, 2010 (Some sources indicate February 17, 2010). The funding for all water related projects, both clean and drinking, is being dispersed through the State Revolving Fund (SRF) program, which typically has a list of projects from the previous application period that are “shovel ready”. Depending on the state, this list may already fully account for the funds allocated. To see the specific ARRA funding additions to the SRF for your state please refer to the website for EPA Region 10: http://www.epa.gov/region10/eparecovery/cleanwater.htm

The second difficulty is the requirement that the qualifying projects meet the “Buy America” clauses in the law. The “Buy America” requirements add an additional level of documentation to prove the material sourcing for any project meet some stringent requirements. There are steps that can be taken to apply for a waiver to these rules, but the review process makes the process difficult and generally ads to the difficulty of the SRF process.

A third area of difficulty is the requirement that “20 percent of the funds shall support projects providing green infrastructure, water efficiency or energy efficiency improvements, or other environmentally innovative activities” (EPA Region 10: http://www.epa.gov/region10/eparecovery/cleanwater.htm). While this seems to be fairly loosely defined, it does set aside funds specifically to focus on improvements in this efficiency improvement area, which might open up opportunities for projects that normally wouldn’t apply for funds through the SRF process.

So can the ARRA help your community make improvements in your infrastructure and/or capital investments at your plant? Since the funding has a time limit and must be spent expeditiously, it may be difficult to take advantage of the opportunity, but here are a couple of suggestions:
1.) If you already are on the SRF project list and your project is “shovel ready”, consider reviewing the project in detail to look for elements that will qualify for the “Buy America” requirements and green infrastructure investments. If you can identify ways to revise your project, you will find there is less competition for these special funds and even if your project was not scheduled to be funded beyond 2010, it might move up if it meets these requirements.
2.) Review your capital investment plan (CIP) for projects that might qualify for a “green infrastructure” project. These projects might include replacement of existing motors with premium efficiency motors that would produce an energy savings and also update some aging equipment. With this CIP list in hand, contact your SRF representative to see if these projects can get on his list this late in the SRF cycle.

Because the dispersement of the ARRA funds has political pressure to respond to the current economic situation, it seems that the policies are in a state of transition. Please contact your state SRF representative for more detailed information on the current status of the program if you would like to participate.

To find out more information on ARRA, please refer to the following websites, which are listed in order of priority:

EPA Region 10: http://www.epa.gov/region10/eparecovery/cleanwater.htm

EPA Recovery Act (ARRA) FAQ: http://www.epa.gov/water/eparecovery/faq.html

For motor information checkout information at: http://ydesign72705.blogspot.com/2009/01/motor-repair-or-replacement-decisions.html

Full document on ARRA: http://edocket.access.gpo.gov/2009/pdf/E9-9073.pdf