The Arkansas Agriculture Department’s Natural Resources Division will distribute more than $25 million in loans and grants to public water systems throughout the state, pending further legislative approval.
The Arkansas Legislative Council’s Performance Evaluation and Expenditure Review (PEER) subcommittee approved the money Tuesday for the third year of a five-year, federally-funded program, the Drinking Water State Revolving Loan Fund. The full council will review PEER’s decision Friday.
Uses for the money include “improving drinking water treatment, water distribution, improving sources of water supply, replacing or constructing finished water storage tanks, and other infrastructure projects needed to protect public health,” according to legislative documents.
Water loans docs
The U.S. Environmental Protection Agency distributed the money to the state through the federal Infrastructure Investment and Jobs Act of 2021.
Chris Colclasure, director of the Natural Resources Division, told lawmakers that the agency usually underwrites loans for any community in need of water infrastructure improvements. Water systems can also qualify to have loans forgiven, he said.
A community qualifies to have the loan principal forgiven if it is “rate burdened,” meaning at least 1.5% of the area’s median household income is spent on water bills, and if local leaders have put their proposed project on a priority list with the Natural Resources Division.
Once the division has a queue of projects, “we fund off that list until we run out of money,” Colclasure said. He added that the division provides 10% contingency funding to projects that go over budget.
Lawmakers from both parties expressed concerns Tuesday that rural communities in the greatest need of water system improvements might not be aware of the available aid.
“Those areas that don’t know how to ask [for financial aid] are traditionally those areas that probably need it the most,” said Sen. Linda Chesterfield, D-Little Rock. “We can’t continue to do business as we’ve always done it.”
Rep. DeAnn Vaught, R-Horatio, agreed, saying some rural communities might not know enough about the eligibility requirements for aid.
“Even if they do, they probably can’t take on more debt to actually fix the problems that we have,” she said.
Colclasure said the Natural Resources Division works closely with the Arkansas Municipal League and the Arkansas Water and Wastewater Managers Association to raise awareness of the loan and grant program. He also said the Arkansas Department of Health, which also monitors drinking water statewide, will publish information about the program in its newsletter.
Sen. Fredrick Love, D-Mabelvale, suggested to Colclasure that the Agriculture Department make sure local planning and development districts throughout the state are aware of the program. Those districts frequently draw up financial aid applications for smaller communities, Love said.
Upon request from Rep. Howard Beaty, R-Crossett, Colclasure said he will provide the program’s distribution guidelines to lawmakers so they can share the information with their rural constituents.
In February, the Arkansas Natural Resources Commission authorized the distribution of $42 million in federal funding to six water and wastewater projects throughout the state, including four allocations from the Drinking Water State Revolving Loan Fund.
Two of the six projects, totaling $11,100,000, are in Helena-West Helena after citizens in the Delta city went without drinking water for a week in January.
The cities of Mena, Mountainburg and Mulberry in western Arkansas received approximately $11.6 million, $7 million and $7.6 million respectively. The Tri County Regional Water Distribution District in Pope County received $5 million.
The six projects will serve more than 22,000 Arkansans, according to Gov. Sarah Huckabee Sanders’ office.
