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Many communities invest a large share of their financial resources in the construction and maintenance of water and wastewater facilities. Capital costs for new construction can be immense, especially in small, rural communities that do not have public facilities. Upgrading existing treatment plants, replacing obsolete service lines, or extending service to development sites requires careful planning and a thorough consideration of potential funding opportunities. Information in this section can help you determine the financing methods that will help you develop the most effective and efficient infrastructure. Grants and loans from these programs are the most commonly used for community infrastructure projects in Appalachia. Contact these sources directly for the most up-to-date information about their programs and funding priorities. Recent Funding Announcements
Funding Available for Projects that Clean Contaminated Water from Abandoned
Mines
Public health, safety, and environmental quality in many Appalachian communities
are affected by acid mine drainage (AMD), the runoff of contaminated water from
abandoned mines. Funds are available for non-profit watershed groups whose construction
projects clean streams affected by AMD. Grants of up to $100,000 are available
for projects in Alabama, Kentucky, Maryland, Ohio, Pennsylvania, Tennessee, Virginia,
and West Virginia, as part of the Appalachian Clean Streams Initiative.
To be
eligible for funding, the cleanup activity should have public support, and the
project must produce tangible results, such as fishery restored, stream miles
improved, or pollutants removed from the streams. For more information, visit the
U.S. Office of Surface Mining Web site and click on "Application
for funds."
StEPP Foundation Offering Funding for Projects that Benefit the Environment
The StEPP Foundation is looking to fund projects that improve air and water quality, reduce solid waste, or connect land use to the ecosystem or public health. Projects must have significant, measurable environmental benefits. Project ideas will be kept in the Foundation's pipeline and may be matched to funding sources as available. For more information, visit www.steppfoundation.org. Ongoing Sources of Funding U.S. Environmental Protection Agency (EPA)
EPA is the largest source of federal funds for environmental infrastructure; most of these funds are distributed by the states through revolving loan funds for drinking water and wastewater infrastructure. The states determine their own priority systems and financing approaches. EPA-funded revolving loan fund offices for drinking water infrastructure: EPA-funded revolving loan fund offices for wastewater infrastructure:
EPA's Office of Water also includes information on funding and grants.
Brownfields Funding
The EPA's Web site has guidelines for grants to help communities address brownfields—property
that has been abandoned or underused because it may be contaminated by hazardous
materials. Three brownfields grant programs are available: assessment grants,
revolving loan fund (RLF) grants, and cleanup grants. Eligible applicants, including
those with existing brownfields grants, may apply for one, or all, of the grant
programs. For more information on these grants, visit EPA's website. For more information on brownfields, see Brownfields Reuse in Rural Communities.
Community Development Block Grant (CDBG) Program
Each year, the U.S. Department of Housing and Urban Development (HUD) divides its appropriation for the CDBG program between states and larger local jurisdictions called entitlement communities. States determine the distribution of funds to smaller localities. HUD awards grants directly to entitlement communities, based on their own local program designs. In all cases, CDBG projects must have a substantial benefit for low-to-moderate-income people; housing improvements and environmental infrastructure for low-income communities are often priorities. CDBG offices for the Appalachian states:
Economic Development Administration (EDA)
EDA is a federal agency that provides matching-grant assistance to economically distressed areas, primarily for projects that will create and retain private-sector jobs. Communities may use EDA grants to support utility construction, industrial site development, transportation facilities, business incubators, or other development projects. EDA's economic development representatives for the Appalachian states:
USDA Rural Development
Rural Development, part of the U.S. Department of Agriculture, is an important funding source for infrastructure projects in most Appalachian communities. Rural Development administers Rural Business-Cooperative Service, Rural Housing Service, Rural Utilities Service, and Office of Community Development programs that provide grants, loans, and other support for community infrastructure, housing development, and business assistance.
Rural Development offices for the Appalachian states:
State-Sponsored Financing Programs
Many states provide a variety of additional funding opportunities for community infrastructure construction. Funds are available as loans or grants that address priorities determined by the states; targets often include low-income communities, industrial site development, or wastewater treatment plant upgrades. These resources are distributed through economic development offices, environmental agencies, or other independent agencies designated by the states. Because of the wide variety of financing options provided by the Appalachian states, you should contact your ARC program manager or your local development district for help with finding the best resources for your needs. Examples of state-supported infrastructure financing programs: Georgia Environmental Facilities Authority
Offers low-interest loans for water and wastewater system financing.
Mississippi Office of Pollution Control, Surface Water Division
Provides emergency loans. North Carolina Rural Economic Development Center
Offers grant and loan programs. Pennsylvania Infrastructure Investment Authority
Provides funding for wastewater, stormwater, and water projects. Appalachian Regional Commission
For information on Appalachian Regional Commission funding, see ARC Program Grants.
Related links:
Water and Wastewater Infrastructure
Sources of Funding
Best Practices in Water and Wastewater
Research and Data
News and Events
Water/Wastewater Resource Directory
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