About ARPA Funding
In December 2021, the Baker-Polito Administration and the Massachusetts Legislature approved $100 million in American Rescue Plan Act (ARPA) funding to the Clean Water Trust (the Trust) as grants for water infrastructure projects. The funding was provided by the line item 1599-2032 of Chapter 102 of the Acts of 2021. Included in the line item was over $12 million in earmarks that will not be administered by the Trust and is not included in the following reporting.
At its February 2, 2022, Board Meeting, the Trust’s Board of Trustees approved $66.8 million in grants to 52 projects beginning construction in the spring or summer of 2022. The grants are one portion of subsidy being provided to total project costs of $661.7 million. Many of these projects also qualify for grants as Disadvantaged Communities. The following table shows how the funds are being distributed to specific types of projects.
| Loan Categories | Grant Percentage |
|---|---|
| PFAS Remediation Projects | 20% |
| Loans to Small Drinking Water Systems1 | 15% |
| All Other Drinking Water Projects | 10% |
| Combined Sewer Overflow (CSO) Projects | 15% |
| All other Wastewater Projects | 7.5% |
Footnotes
1 Systems serving less than 10,000 users
Program Details
The funding is being provided to the projects below. The Trust will update the table monthly as the ARPA funds are disbursed to the projects.
Total ARPA Funds Disbursed
| Program | No. of Projects | Total ARPA Funds | ARPA Funds Disbursed |
|---|---|---|---|
| Clean Water State Revolving Fund (CWSRF) | 32 | $39,496,339 | |
| Drinking Water State Revolving Fund (DWSRF) | 20 | $27,287,146 | |
| Total | 52 | $66,783,485 |
CWSRF ARPA Grant Projects
Footnotes
[1] CSO project receiving 20% loan forgiveness
DWSRF ARPA Grant Projects
Footnotes
[2] PFAS project receiving 20% loan forgiveness
[3] Small system receiving 15% loan forgiveness
Frequently Asked Questions
This FAQ addresses certain questions regarding the ability of a municipality, water district or other borrower to use its American Rescue Plan Act (ARPA) monies with respect to projects financed through the Massachusetts Clean Water Trust (the Trust).
1. Can I use my ARPA monies to fund my Clean Water or Drinking Water project?
"[The United States Department of the] Treasury considers an investment in infrastructure to be necessary if it is (1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which for some eligible project categories may include a reasonable projection of increased need, whether due to population growth or otherwise and (2) a cost-effective means for meeting that need, taking into account available alternatives. In addition, in the case of investments in drinking water service infrastructure to supply drinking water to satisfy a projected increase in population, the project must also be projected to be sustainable over its estimated useful life. As detailed further below, [Drinking Water State Revolving Fund] DWSRF and [Clean Water State Revolving Fund] CWSRF eligible projects continue to be presumed to be necessary investments under the final rule, with exception of projects for the rehabilitation of dams and reservoirs..."
2. If I have already entered into an Interim Loan with the Trust, but not requisitioned all the amounts available under the Interim Loan, can I stop drawing down the Interim Loan and use my ARPA monies to complete the project?
Yes, you can use your ARPA monies to complete the remainder of the project and not requisition any remaining amounts from the Trust. You cannot use your ARPA monies to pay back amounts already requisitioned. In this scenario, the principal balance of the Interim Loan will be limited to the requisitioned amounts.
3. If I have already entered into an Interim Loan with the Trust and requisitioned all the amounts available under the Interim Loan, can I use my ARPA monies to pay down the Interim Loan?
No, ARPA monies cannot be used to pay debt service. The Interim Loan is a debt instrument and therefore payment of any amounts with respect to the outstanding Interim Loan would be an ineligible use of your ARPA monies.
4. My loan was permanently financed, but the project is not complete, can I use my ARPA monies to complete the project instead of drawing remaining funds from the Trust?
No, this use of ARPA monies would result in payment of the permanent loan. This scenario is similar to #3 (and distinguishable from #2) in that the full amount of the permanent loan has already been borrowed. The use of ARPA monies to complete the project would result in unspent money in the permanent loan project account which unspent monies would be applied to pay down the permanent loan at approximately two years from permanent financing.
5. Can I use my ARPA monies to pay debt service on, or redeem, Bonds/Local Obligations issued to the Trust?
No, your ARPA monies cannot be used to pay debt service or redeem debt obligations.
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