State gets $38.7 Million for Water and Wastewater Projects

Press Release

State gets $38.7 Million for Water and Wastewater Projects

Gov. Mike Rounds says South Dakota has been awarded $38.7 million for water and sewer projects as part of the American Recovery and Reinvestment Act (ARRA) of 2009.

"The federal stimulus funds will help create jobs and boost local economies as the funds are forwarded to local government entities and rural water systems," the Governor said. "The money will finance improvements to aging water and wastewater systems that are essential to protecting public health and the environment."

The U.S. Environmental Protection Agency (EPA) awarded the funds this week to the state Department of Environment and Natural Resources. The South Dakota Board of Water and Natural Resources will disburse the funds for eligible drinking water, wastewater, and storm water projects.

The Clean Water State Revolving Fund Program received $19.2 million in stimulus funds. The program provides low-interest loans for wastewater and storm sewer projects. The Drinking Water State Revolving Fund Program, which provides low-interest loans for public drinking water systems, received $19.5 million from EPA.

ARRA requires at least 50 percent of the EPA State Revolving Funds to be given out in the form of increased subsidization. The Board of Water and Natural Resources has chosen to apply principal forgiveness of at least 10 percent to qualifying loans from those funds. An additional requirement is that at least 20 percent of the funds be used for green infrastructure, water and energy-efficiency improvements, and other environmentally innovative projects.

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