BOISE — A major infusion of state and federal funding could help communities across Idaho update their drinking water and wastewater facilities.
Much of the money comes from federal stimulus programs. That includes $300 million over five years from the American Rescue Plan Act, plus another $253 million from the Infrastructure Investment and Jobs Act.
Gov. Brad Little is also recommending a one-time expenditure of $44 million in state general funds to meet the required match for the Infrastructure Investment monies.
If approved by the Legislature, the combined $597 million would go into the Water Pollution Control Account, which offers grants and low-interest loans to communities for drinking water and wastewater projects.
The account historically provides about $70 million per year for such projects, mostly in the form of low-interest loans.
Alex Adams, the governor’s budget director, said the additional funding offers a “once-in-a-lifetime opportunity” to address critical statewide infrastructure needs.
“This is one of the areas that has the most potential to affect the trajectory of Idaho in a positive way,” he said.
Jess Byrne, director of the Idaho Department of Environmental Quality discussed the proposed appropriation during his presentation to the joint budget committee Thursday.
Byrne said the agency notified communities earlier this year that more pollution control funding could be available. That generated 263 letters of interest, for projects totaling about $1.4 billion
Boise alone requested more than $500 million, he said.
That’s a concern for Rep. Caroline Troy, R-Genesee.
“Boise has a tax base to cover the cost of a project,” she said. “Deary or Harvard doesn’t. I’d like to see (the available funding) limited to communities that don’t have a lot of growth or resources.”
Byrne said there’s already a process in place to prioritize traditional pollution control requests. It gives preference to disadvantaged communities and communities with water systems that are seriously out of compliance with regulatory requirements.
However, he’s hearing that some legislators want to adopt specific prioritization criteria for at least a portion of the new funding, to help ensure that it benefits rural communities.
They’ll have to scramble if they want to tap into the American Rescue Plan funds, though. The governor is recommending that $60 million be included in the Department of Environmental Quality’s fiscal 2023 budget. Federal rules require that it be allocated by the end of 2024 and be fully spent by the end of 2026.
Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.