Hawaii will be eligible for at least $7 million in water and waste disposal loans and over $2 million in grants under a new distribution formula implemented by the United States Department of Agriculture (USDA), United States Senator Daniel K. Akaka (D - Hawaii) announced. The new Rural Utilities Service (RUS) formula is a significant increase from fiscal year 1999 funding levels of $1.3 million and $856,000, respectively, for loans and grants. The funds are available for water and wastewater projects to improve the quality of life in rural Hawaii.

The program is administered at the state and local level by USDA Rural Development field offices. The USDA loan and grant programs have helped finance water system improvements and upgrades on Maui and Hawaii County. In January, the Maui County Department of Water Supply received a $1.4 million loan and grant package to assist in the upgrade of the Makawao Ranch Estates Subdivision water system. Starting in 1997, water system improvement projects at former sugar plantation camps in Ookala, Paauilo, and Paauhau on the Big Island also received loans and grants to replace and upgrade disintegrating water systems.

"This significant boost in funding will help provide Hawaii's small communities with the clean, safe, and affordable drinking water they deserve," Akaka noted. "It also reduces future deterioration of water resources by helping rural communities improve water and waste disposal facilities. Best of all, it accomplishes these goals at reasonable costs and in an environmentally sound way."

Water and waste disposal direct and guaranteed loans and grants, technical assistance grants, and solid waste management grants are available to cities and towns with a population of 10,000 or less. Funds are available to public entities, such as counties and municipalities, and nonprofit corporations. Preference is given to projects serving low-income communities and those that involve merging small facilities.