About ARPA Funding
In December 2021, the Clean Water Trust (the Trust) received $86.6 million in American Rescue Plan Act (ARPA) funding provided by line item 1599-2032 of Chapter 102 of the Acts of 2021. In November 2022, the Trust received an additional $115.0 million in ARPA funding provided by line item 1599-6079 of the Act Relating to Economic Growth and Relief for the Commonwealth.
At its December 2022 and February 2023 Board Meetings, the Board of Trustees approved ARPA funds for specific project types and for disadvantaged communities in the amount of $110.8 million to 45 projects that are expected to be under construction in the spring or summer of 2023.
These amounts will be funded by the ARPA funds described above in the form of loan forgiveness. The following table shows how loan forgiveness is distributed to specific types of projects. For more information on the grants to disadvantaged communities.
| Loan Categories | Loan Forgiveness Percentage |
|---|---|
| PFAS Remediation Projects | 20% |
| Loans to Small Drinking Water Systems1 | 15% |
| All Other Drinking Water Projects | 10% |
| Combined Sewer Overflow (CSO) Projects | 15% |
| Nitrogen Enrichment Reduction 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.
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.
6. Do ARPA disbursements from the Clean Water Trust count as federal funds?
No. Treasury is not collecting subaward data for projects categorized under Expenditure Category Group 6 “Revenue Replacement.” Treasury has determined that there are no subawards under this eligible use category. The definition of subrecipient in the Uniform Guidance provides that a subaward is provided for the purpose of “carrying out” a portion of a federal award. Recipients’ use of revenue loss funds does not give rise to subrecipient relationships given that there is no federal program or purpose to carry out in the case of the revenue loss portion of the award.