The Commonwealth Financing Agency this week approved guidelines for reviewing applications for funding $800 million in water infrastructure projects under the H2O PA Program.

Applicants should apply for the funding as soon as possible under the Department of Community and Economic Development's single application for assistance process.

A total of $1.2 billion in water infrastructure funding was approved in July by the General Assembly and Gov. Rendell with the passage of Senate Bill 1341 (Musto-D-Luzerne) and voter approval of a ballot question in November authorizing a $400 million bond issue voter referendum for water, wastewater and stormwater projects and Senate Bill 2 (Earll-R-Erie) establishing the H2O PA Program providing $800 million in funding for drinking water, wastewater, flood protection and high hazard dam repair projects outside of Allegheny and Philadelphia counties financed by gaming revenue.

Water infrastructure funding was supported by the PA Fair Share For Clean Water Coalition to meet stringent new federal and state clean water requirements, however, funding for needed farm conservation projects was not addressed.

In addition, over the last seven years, more than $784 million in environmental funding from the Department of Environmental Protection and Department of Conservation and Natural Resources has been diverted to either balance the budget or to provide funding for programs that could not get funding on their own. (See 11/24/08 PA Environment Digest and a separate budget story in this Digest.)

"The funding available through H2O PA -- combined with the $400 million clean water referendum that was approved by voters in November -- will provide more Pennsylvanians with dependable, quality water," Gov. Rendell said. "These investments are expected to put approximately 12,000 people to work."

The Commonwealth Financing Authority will evaluate applications with technical review and assistance from the Department of Environmental Protection and the Pennsylvania Infrastructure Investment Authority, Gov. Rendell said.

Throughout Pennsylvania there are 900 community drinking water facilities and 1,100 community wastewater operations that are owned by a municipality or municipal authority that could qualify for this funding. More than 10 million Pennsylvanians depend on the promise of clean and safe drinking water every day.

The CFA approved H2O PA guidelines in three areas:

-- High Hazard Dams/Unsafe Dam projects include those involving repair, rehabilitation or removal, security measures, engineering or other costs. Municipalities must provide at least 25 percent matching funds;

--Flood Control projects include construction, improvement, repair or rehabilitation. Applicants must provide easements and rights of way, relocation of buildings and utilities, alterations or rebuilding of inadequate bridges and operation and maintenance of the completed project; and

--Water Supply, Sanitary Sewer and Storm Water projects are open to municipalities or municipal authorities for acquisition, construction, improvement, expansion or rehabilitation of all or part of a water supply, sewage disposal, or storm water systems they own and maintain. Eligible projects also include consolidation or regionalization of systems managed or operated as an integrated system. Applicants must provide matching funds of at least 50 percent of the amount awarded under the program.

The new guidelines and applications are available online.

While funding for wastewater plant upgrades was welcome news this summer, the General Assembly and the Governor did not take action to provide funding for farm conservation projects which are also needed to meet specific Chesapeake Bay and other federal and state clean water regulations.

In the Chesapeake Bay watershed alone, the Department of Environmental Protection estimates nearly $600 million is needed to fund farm conservation efforts.

The Fair Share For Clean Water Coalition supports taking these additional steps to help address Pennsylvania’s remaining clean water issues:

-- Reforms to the state's nutrient credit trading program that will help to make it a viable alternative to provide for both environmental improvements to the Bay and sufficient future sewage capacity for new development;

-- $50 million in direct cost share aid to farmers to install conservation practices ($35 million for Resource Enhancement and Protection (REAP) farm tax credits and $15 million in cost share grants);

-- $10 million to county conservation district to expand technical assistance to farmers; and

-- $10 million to restore cuts to the Department of Agriculture budget in farm programs.

The Coalition includes over 45 farm and conservation groups, businesses, and local government entities, including Pennsylvania Farm Bureau, Pennsylvania Municipal Authorities Association, Pennsylvania Builders Association, Chesapeake Bay Foundation and the Pennsylvania Association of Conservation Districts.

For more information, visit the PA Fair Share For Clean Water Coalition website

NewsClip: Guidelines Issued For Water, Sewer Funding

Video Blog: Fair Share Coalition Says Farmers Left Behind In Environmental Funding

12/12/2008