As we reported in 2022, President Biden signed the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) into law in 2021. The IIJA appropriated significant funds to the State Revolving Fund Programs (SRF), which is administered by the Co
lorado Water Resources and Power Development Authority, Department of Local Affairs, and CDPHE. The Authority is the grant recipient for the SRF. DOLA evaluates the financial structure of the applicant’s application to the SRFs, and CDPHE manages the technical and compliance aspects of the SRFs. The funding is being allocated in essentially three “buckets,” including general infrastructure, emerging contaminants, and lead service lines. Initially, Colorado was projected to receive approximately $680 million over the five years. However, the actual awards have fluctuated to some degree due to adjustments made in Congress and reallocations of some of the lead money.
At this point, we are four years in and have one more to go. This funding represents a major opportunity for Colorado. But the need for continued water infrastructure support is enormous, especially considering the new federal drinking water rules mentioned above. There has been talk across the sector about extending the federal infrastructure investment. At the recent annual conference of the Association of State Drinking Water Administrators (ASDWA), a panel regarding funding and finance recommended emphasizing the following points when communicating about water infrastructure needs:
- Positive impact for affordability. With so much pressure on rate payers these days, supporting water infrastructure is one way to support overall economic vitality and help keep water rates affordable.
- Impact to small, rural communities. These communities tend to struggle most with tackling complicated, expensive infrastructure projects and these funding sources tend to help small, rural communities the most.
- Share responsibility. Federal, state and local governments all share roles and responsibilities for safe water, and infrastructure investments like IIJA demonstrate that commitment.
- Fundamental societal need. Adequate infrastructure is a cornerstone of safe water which is foundational for the economy and national security.
- Specifically, for restoring SRF funding, the following points were discussed:
- Without the SRFs, loan forgiveness and many great assistance programs that benefit small, rural communities will be lost.
- SRF funding is vital to ensure the efficacy of many state primacy programs, which is a preferred option compared to direct federal implementation.
- The SRFs support water affordability in small, rural communities that cannot afford modern water infrastructure.
- Commitment to the SRFs is needed because they provide below-market loans, even 0% interest loans and loan forgiveness (like grants), especially to small, rural communities.
We share a collective commitment with local governments to protect public health and ensure safe tap water for all. Sustained infrastructure funding can help us move forward toward that goal. Contact us if your community is interested in pursuing this funding. Thank you.
➽ Ron Falco, P.E., Safe Drinking Water Program Manager
