Press Release  Healey-Driscoll Administration Awards $1.4 Billion in Loans and Grants to Fund Wastewater and Drinking Water Infrastructure Projects

BOSTON — The Healey-Driscoll Administration today announced that more than $1.4 billion in low-interest-rate loans and grants will fund 168 projects across the Commonwealth designed to improve water quality, upgrade or replace aging drinking water and wastewater infrastructure, and promote energy efficiency measures at water treatment facilities.

“This is a substantial investment in our communities that will increase the availability of safe, clean drinking water and ensure the proper disposal of wastewater,” said Governor Maura Healey. “These vital water and sewer projects will boost the quality of life for our residents, protect the environment, and foster economic development and job growth across Massachusetts.”

“Our administration remains committed to protecting public health and safety by rebuilding and improving local clean water and drinking water infrastructure,” said Lieutenant Governor Kim Driscoll. “This important funding helps to forge a partnership between state and local officials that produces more sustainable, reliable, and affordable water infrastructure projects for all.”

Projects were selected through the State Revolving Fund (SRF) process administered by the Massachusetts Clean Water Trust – a joint effort of the Massachusetts Department of Environmental Protection (MassDEP), the Executive Office of Administration and Finance (ANF), and the State Treasurer’s Office. The SRF has provided more than $8.6 billion to Massachusetts communities and water suppliers for wastewater and drinking water infrastructure improvements.

“These projects are critical to the health and wellbeing of everyone here in Massachusetts,” said Treasurer Deborah B. Goldberg, Chair of the Massachusetts Clean Water Trust. “The grant funding and low interest rate loans from the Trust helps cities and towns to finance cost-effective projects, especially in our most vulnerable communities.”

The latest round of funding supports 49 clean water construction projects totaling approximately $932 million and 50 drinking water construction projects totaling approximately $503 million. An additional $8 million will be offered as grants for 69 Asset Management Planning projects. These initiatives will help address issues increasingly confronting municipalities, including PFAS contamination, elevated lead levels in drinking water, and failed septic systems.

“Flooding caused by climate change has overwhelmed many local water and sewer treatment facilities, adding urgency to the need to address this aging infrastructure,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “These low-interest loans and grants provide critical assistance for projects that will replace water mains, expand treatment plant capacity, and install cost-effective renewable energy upgrades.”

Twenty water infrastructure projects receiving financing promote renewable energy, energy efficiency or green infrastructure objectives in accordance with MassDEP’s Clean Energy Results Program. Energy use at wastewater and drinking water treatment facilities is a major contributor to overall energy consumption for many cities and towns, with communities statewide spending approximately $150 million each year on electricity to treat approximately 662 billion gallons of wastewater and drinking water. About 30 percent of municipal energy use is attributed to water treatment.

“Upgrading aging water infrastructure to withstand extreme weather events and combat lead and PFAS contamination poses serious challenges for our cities and towns,” said MassDEP Commissioner Bonnie Heiple. “By providing more than $1.4 billion for 168 projects in communities across Massachusetts, we are helping these facilities install state-of-the-art technologies to provide safe and clean water, reduce their energy costs and become more climate resilient.”

Fifty-six of these new projects are eligible to receive principal forgiveness, including renewable energy projects and those in communities that meet affordability criteria.

The Commonwealth has also offered to reduce the borrowing rate from 2 percent to 1.5 percent for communities that support the Housing Choice Initiative. Eighteen applicants have the Housing Choice designation this year: Amherst, Barnstable, Billerica, Boston, Brockton, Easton, Gloucester, Lawrence, Littleton, Lowell, Nantucket, Newton, North Reading, Quincy, Provincetown, Revere, Scituate, and Wellfleet.

Statements of Support

“I’m thrilled that seven capital improvement projects in my district will receive vital stimulus funding through the Department of Environmental Protection’s and Clean Water Trust’s State Revolving Fund. This funding will enable interlocking water enhancement, sewer infrastructure, and flood mitigation projects in key areas on the Southcoast,” said State Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “These major improvements driven and guided by the local municipalities, will spur smart growth, economic development, and improve the overall quality of life for the residents and businesses in the district.”

“On behalf of the residents of the Hampden, Hampshire, and Worcester district that we work together to serve, I want to thank the Department of Environmental Protection and all the municipal leaders across the region for their work in securing these loans and grants for FY24 and congratulate them on their successful applications,” said State Senator Jake Oliveira (D-Ludlow), Senate Chair of the Committee on Municipalities and Regional Government. “These significant and vital funds will help to enhance our water infrastructure and safeguard public health in our communities, building a more sustainable and resilient future for all.”

“Westport is incredibly appreciative of this commitment from the State Revolving Fund which will help us to improve water quality in the Westport River, provide clean drinking water for north end residents, and create planned economic growth along Route 6,” said State Representative Paul Schmid (D-Westport), House Chair of the Committee on Agriculture. “These types of projects are important to the health of a community, and the opportunity to finance them affordably makes all the difference to small communities.”

“I am tremendously appreciative to the Healey-Driscoll Administration for this award. The folks who live at Pine Valley have endured years of insecurity surrounding the future of their drinking water,” said State Representative Aaron Saunders (D-Belchertown). “The financial security for this project will ensure that the residents will not have to worry about the quality and the amount of drinking water available for the foreseeable future.”

MassDEP will open the next SRF solicitation for proposals by May 15, 2024.

More information on the State Revolving Fund programs can be found on MassDEP’s website.

MassDEP’s mission is to protect and enhance the Commonwealth’s natural resources – air, water and land – to provide for the health, safety and welfare of all people, and a clean and safe environment for future generations. In carrying out this mission, MassDEP commits to address and advance environmental justice and equity for all people of the Commonwealth, provide meaningful, inclusive opportunities for people to participate in agency decisions that affect their lives and ensure a diverse workforce that reflects the communities served by the agency.

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