$654 million wastewater, stormwater funding bills signed into law

New State of Michigan grants available for asset management programs, planning

Lieutenant Governor Brian Calley signed HB 5673 and SBs 1155 through 1158 into law late last week, authorizing an investment of $654,000,000 in grants and loans for wastewater and stormwater infrastructure. MDEQ’s Revolving Loan Section will manage the funds and develop the application process, which we expect to take at least six months.

We do not know the amount of money available for 2013, nor do we know the percentage allotted between grants and loans. MDEQ is developing the application process and expects it to take at least six months. We expect any loans to be similar to those overseen now by the Revolving Loan Section.

Grants up to $1,000,000 with a 10% local match and up to $2,000,000 with an additional 25% local match for any amount greater than $1,000,000 and less than $2,000,000 are available for the following:

  • Developing asset management programs for wastewater systems
  • Developing asset management programs for stormwater systems
  • Developing management plans for stormwater treatment
  • Planning and design costs for projects to treat wastewater and/or stormwater
  • Planning and design costs for projects that reduce non-point source pollution
  • Testing and demonstration projects using innovative technology for wastewater and/or stormwater treatment

MDEQ will waive the match for a disadvantaged community. A disadvantaged community is one that assesses project users directly for a project’s construction costs, or has a median household income (MHI) less than 120% of the state’s overall MHI, and meets one of the following:

  • Over half of its service area resides in poverty as defined by the U.S. Census, by an income survey, or, is less than the Federal poverty level for a 4-person household in the lower 48 states.
  • Is less than State’s MHI and pays more than 1% of MHI in wastewater user charges.
  • Is less than 120% times the state’s MHI and pays more than 3% of MHI in wastewater user charges.

Disadvantaged communities also may qualify for up to $500,000 in grants to implement projects identified in its asset management plan.

The highlighted areas on the map linked below are P&N’s best guess, based upon 2010 US Census data, of areas that meet the above “disadvantaged” criteria.

2010 Median Household Income Poverty Areas

Please contact Jim Hegarty if you have any questions about this legislation.

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