There are a number State and Federal grant and loan opportunities which provide funding for infrastructure projects. Grant and low-interest loan programs can help reduce the financial burden of large construction projects. Each funding agency has specific requirements and some opportunities will fit a project better than others.
Below is a list of potential funding opportunities for the Saco Wastewater Preliminary Engineering Report (PER) update. The Town will not necessary apply to all of these funding sources.
ARPA
The American Rescue Plan Act (ARPA) is a new program in 2021. It was passed by Congress and signed into law in March of 2021 (PUB. L. NO 117-2 SEC 602 (c)(1)(d)). The act was primarily focused on covid-19 relief for communities. As part of the ARPA funding package, the federal government allotted funds to be used for eligible water and wastewater improvements as considered critical infrastructure. The act allowed for each individual state to determine how the funds for each state were to be distributed. The American Rescue Plan Act of 2021 provides state and local aid to make necessary investments in water and sewer infrastructure. The 67th Montana Legislature passed HOUSE BILL 632 which directed the federal funds available under the American Rescue Plan Act for use in Montana. Section 1 – Section 5 address how the federal funds will be distributed to necessary water and sewer infrastructure projects. House Bill 632 created the Infrastructure Advisory Commission who oversees spending on water and sewer infrastructure projects along with the Governor of Montana. Funds were directed to Counties and Cities in Montana for use of water and sewer infrastructure with direct treasury funds and minimum allocation (non-competitive grants). There is also a competitive grant option. As of February, 2022 two rounds of competitive grant applications have been carried out. The first-round competitive grants were due July 15, 2021 and the round 2 applications were due January 14, 2022. The Town of Saco applied for and received an award the first-round of competitive grant funding for the Phase 1 wastewater improvement project.
Montana Coal Endowment Program (MCEP)
MCEP is a state funded grant program administered by the Montana Department of Commerce (MDOC). MCEP provides financial assistance to local governments for infrastructure improvements. Grants can be obtained from MCEP for up to $500,000 if the projected user rates are less than 125% of the target rate, $625,000 if projected user rates are between 125% and 150% of the target rate, and up to $750,000 if the projected user rates are over 150% of the target rate. MCEP grant recipients are required to match the grant dollar for dollar, but the match may come from a variety of sources including other grants, loans, or cash contributions. The Town is eligible for and is considering applying for an MCEP grant due in May 2022.
Renewable Resource Grant and Loan Program (RRGL)
Funded through interest accrued on the Resource Indemnity Trust Fund and the sale or Coal Severance Tax Bonds, RRGL is a state program administered by the Montana Department of Natural Resources and Conservation (DNRC). RRGL’s primary purpose is to conserve, manage, develop, or protect Montana’s renewable resources. Grants of up $125,000 are available for projects that meet one of more of these objectives. The Town is eligible for and is considering applying for a RRGL grant.
State Revolving Fund (SRF)
SRF provides low-interest loan funds for solid waste projects through the Water Pollution Control State Revolving Fund (WPCSRF). The SRF program is administered by the Montana Department of Environmental Quality. Current loan terms include an interest rate of 2.5% for a 20-year period. SRF funding will be considered with the funding package.
Community Development Block Grant (CDBG)
The Montana Department of Commerce administers the federally funded CDBG program. The primary purpose of the CDBG Program is to benefit low to moderate-income (LMI) families. To be eligible for CDBG funding an applicant must have an LMI of 51% or greater.
The CDBG grant funds can be applied for in an amount of up to $450,000 with a limit of $15,000 per LMI household, so a community needs 30 LMI households to apply for the maximum grant funds. The use of CDBG funds requires a 25% local match that can be provided through cash funds, loans, or a combination thereof. The Town is eligible for and considering applying for CDBG funding.
USDA Rural Development (RD)
RD provides grant and loan funding to districts, municipalities and counties for infrastructure projects that improve the quality of life and promote economic development in Rural America. Communities with populations less than 10,000 are eligible to apply; however, RD gives the highest priority to projects that serve rural areas with populations equal to or less than 1,000. The Town is eligible for and considering applying for RD funding.