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On Wednesday night the House of Representatives passed the Jobs for Main Street Act of 2010 (H.R. 2847) that includes $1 billion for the Clean Water State Revolving Fund (CWSRF) and $1 billion for the Drinking Water State Revolving Fund (DWSRF). The package is an attempt by Congress to address the persistent unemployment rate and help create jobs by providing funding for infrastructure projects around the country. The legislation passed the House by a vote of 217-212 and will likely be taken up by the Senate after the holidays.

The proposed spending package for the DWSRF and CWSRF contains similar provisions as did the American Recovery and Reinvestment Act (ARRA) enacted earlier this year. Specifically, the House language waives state matching fund requirements and requires that states distribute at least half the funds in the form of principal forgiveness, negative interest loans and/or grants. The package also includes a “Green Reserve” set-aside requiring 20 percent of funds be directed towards green infrastructure, water or energy efficiency and other environmentally innovative projects provided there are sufficient applications to do so. The package differs from the ARRA in that it would require the EPA Administrator to reallocate state awards if a state fails to have funds under contract or construction within 8 months of the date of enactment, and it requires States to prioritize projects that are ready to proceed to construction within twelve months, notwithstanding any priority list a State may already have developed. By requiring States to develop priority projects based on construction readiness, projects that may not currently be on a State’s priority list but are nonetheless ready to proceed to construction would be eligible to receive funding under this package. In addition, the package would continue the Buy American and Davis/Bacon prevailing wage conditions. NACWA played a critical role in advocating for additional subsidization requirements and for tighter State deadlines.

The $2 billion spending targeted for water and wastewater infrastructure is part of a larger infrastructure spending package that includes monies for highways, transit, airports and Corps of Engineers (which received $750 million for currently authorized projects). Congress would pay for the spending by redirecting unspent monies appropriated under the Troubled Asset Relief Program (TARP). NACWA will now turn its attention towards the Senate where we will look to build on the funding levels provided by the House. While $2 billion is far less than what is necessary to meet the on-going infrastructure need, when added to the $6 billion awarded under the ARRA, the roughly $3.5 billion provided in the FY10 EPA appropriations, and FY09 appropriated monies that States received earlier this year, Congress will have awarded nearly $15 billion to water and wastewater infrastructure projects within the past year – marking a significant shift in spending on water and wastewater infrastructure from previous years.

As noted, NACWA will continue to advocate that funding for water and wastewater infrastructure projects in this jobs package be significantly increased by the Senate and that funds be targeted to communities that have the capacity to deploy the monies quickly in projects that have the greatest job creating potential.

Attached is a state-by-state breakdown for the CWSRF. If you have questions or comments on the information provided in this alert, please contact Patricia Sinicropi at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or John Krohn at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .