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Arizona Department of Environmental Quality
and
Water Infrastructure Finance Authority
Funding from the American Recovery and Reinvestment Act, 2009
Agency Program: The Arizona Department of Environmental Quality (ADEQ) and the Water Infrastructure Finance Authority (WIFA) have received "stimulus" funding from the American Recovery and Reinvestment Act of 2009 (ARRA). WIFA and three ADEQ Divisions received these funds designated in ARRA under Title VII appropriating funding for the U.S. Environmental Protection Agency (US EPA). The following is a summary of the funding:
| WIFA: |
| |
Clean Water Act
Drinking Water Act |
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$26,469,000
$55,340,000 |
| ADEQ: |
Air Quality Division
Waste Programs Division
Water Quality Division |
State Clean Diesel Grant Program
Leaking Underground Storage Tanks
Clean Water Act (Section 604B) |
$1,730,000
$3,219,000
$267,400 |
These projects represent improvements to sewer systems, drinking water systems, cleanup of pollution from underground storage tanks, the provision of truck electrification for diesel vehicles to improve air quality and in the southern portion of the state the distribution of clean water planning monies.
ADEQ has approved projects that are ready to be implemented in the immediate future. In addition, ADEQ has supported projects that generate maximum employment opportunities and have important beneficial impacts on the environment. The process of review and approval of these proposed projects will follow standard WIFA and ADEQ procedures, as modified by guidance from the US EPA. The review and approval process will be transparent and progress will be tracked on the AZRecovery.gov  , ADEQ and WIFA web sites. Lists of potential projects, their location, project cost, estimated jobs saved and/or gained and other key data are included with this information. These project lists will be updated, at least, on a monthly basis and will be available on the above cited websites.
Stimulus Impact
WIFA: The ARRA funding will provide significant savings on clean and drinking water infrastructure projects for many municipalities and private drinking water companies in Arizona that were able to start construction by June 17, 2009 or have signed contracts for construction by February 17, 2010. Fifty percent (50%) of the ARRA grant funds WIFA received will be awarded as forgivable principal, as a percentage of the loan amount, with caps of two million on clean water and four million on drinking water loans. Once fifty percent (50%) of the ARRA grant funds are awarded as forgivable principal the other fifty percent (50%) will be awarded as low-interest (1%, 2%, 2.5% and 3%) loans for clean and drinking water projects.
Waste Programs Division: ADEQ and the US EPA have entered into a cooperative agreement under the Leaking Underground Storage Tank (LUST) Trust Fund to perform ARRA authorized activities. The Waste Programs Division will use the existing Tanks Contract SCC060008 to perform environmental assessments and cleanups of leaking underground storage tanks. A priority list of projects eligible for ARRA funding was attached to the cooperative agreement. The two-tiered priority list includes projects from throughout the state where an existing contract is in place to perform ARRA authorized activities (priority 1) and projects where the contracting process can begin upon award of ARRA funds (priority 2). Projects can be added or removed from the priority list or re-ranked depending upon the availability of funds and/or progress made toward meeting ARRA deadlines. All projects are considered "green" in that they result in environmental cleanup and productive reuse of otherwise contaminated sites.
Air Quality Division: This is funded by the US EPA under the Diesel Emissions Reduction Act (DERA/ARRA). The project is a non-competitive grant for which ADEQ made application on 3/20/09. The grant will provide for diesel truck electrification at selected truck stops and two ports of entry in southern Arizona.
The project will deploy anti-idling technology to reduce diesel emissions from commercial freight trucks in areas that are non-attainment or impaired due to particulate matter concentrations. It will bring about infrastructure improvements through installation of electrified parking spaces (also known as truck stop electrification) to highly traveled stretches of roads in the southern portion of the state with poor air quality. The technology will also be utilized at the commercial ports of entry in Nogales and San Luis, thus enhancing infrastructure improvements and efficiencies in the movement of trade through the state.
The Arizona Department of Environmental Quality will follow the state procurement process to contract for the installation of the electrified parking spaces. It is anticipated that the contractor will in turn hire several sub-contractors to complete the installations by September 30, 2010.
An added benefit of the project is the collaboration among various agencies and private sector entities to link environmental benefits in improving trade conditions in Arizona. These currently include Arizona Department of Transportation, Arizona Department of Commerce, U.S. Federal Highway Administration, U.S. Customs and Border Protection, U.S. General Service Administration, Greater Nogales and Santa Cruz County Port Authority, and the Greater Yuma Port Authority.
This project will meet the priorities outlined for stimulus funding through the federal Diesel Emissions Reduction Act as it focuses on areas in the state that have poor air quality; receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals, and distribution centers; use a community-based multi-stakeholder collaborative process to reduce toxic emissions; verified technology that has a long expected useful life; conserve diesel fuel; and maximize public health benefits.
Water Quality Division: The development of three water quality management plans will assist the wastewater construction industry by assuring that up-to-date plans are in place. Arizona cities and towns are working through Water Infrastructure Finance Authority (WIFA) to obtain funding for new wastewater treatment projects, and they will work through ADEQ to obtain the necessary permits. The Water Quality Management (WQM) plans are vital components of Arizona's planning process for wastewater treatment facility construction. The WQM plans must be in place prior to permit approval. Updated plans will increase efficiency in getting the projects to "shovel-ready" status, and jobs will be created or maintained by expediting construction projects.
ADEQ hopes to reach a broad environmental protection audience by working in cooperation with MAG to deliver green infrastructure training. Water/wastewater professionals, planners and businesses will benefit from this program. The training will influence planners to adopt low impact development practices that will lead to resource conservation, water quality improvement, and lower costs.
The grant provides for $106,960 to be spent at the local level to update plans and to develop green infrastructure training. Planning Agencies (MAG, SEAGO, and CAAG) will be receiving pass-through funding. The monies provide a modest boost to these local urban and rural economies.
Application/Decision Making Process
WIFA: The Arizona legislature created the Water Infrastructure Finance Authority (WIFA) in Arizona Revised Statutes, Title 49, Chapter 8, Sections 49-1201 through 49-1282, and WIFA has promulgated rules for its operation in Title 18, Chapter 15 of the Arizona Administrative Code. The Authority prepares Intended Use Plans (IUPs) that describe how WIFA intends to use available funds based upon the goals and objects of the Safe Drinking Water Act (SDWA) and the Water Pollution Control (Clean Water) Act to protect public health. The IUPs for proposed ARRA projects have given preference to projects that are ready to proceed with construction within 120 days of the ARRA enactment or that will have signed contracts for construction by February 17, 2010. WIFA staff works with potential applicants to help insure that both engineering plans and financial documentation are correct. All projects are reviewed and approved by the WIFA Board of Directors, which is chaired by the Director of ADEQ. WIFA staff works with municipalities and private drinking water companies throughout the life of the construction period and conducts an annual loan review to insure that the financial terms of loan agreements are met.
ADEQ:
Waste Programs Division: A priority list of projects eligible for ARRA funding has been developed and consists of projects throughout the state. All proposed projects approved will meet all US EPA requirements for use of ARRA funds and will include shovel-ready projects (sites ready for assessment and cleanup) that are typically orphaned or abandoned sites, where the owners/operators of the USTs are unknown or unable to pay for cleanup. ADEQ's Waste Programs Division are using the existing Tanks Contract to perform the environmental assessments and cleanups of leaking underground storage tanks. The Waste Programs Division will oversee each project to ensure an effective and safe cleanup in accordance with ADEQ and ARRA requirements.
Air Quality Division: Normal grant procedures are followed by ADEQ for the non-competitive ARRA funds. Regular contracting procedures have been followed for the construction of truck stop electrification.
Water Quality Division: Similar to the Air Quality Division, the Water Quality Division will follow normal grant application and distribution procedures for 604B planning funds.
Information on Timelines, Available Funds, Proposed Projects, Federal Agency Support and Assistance
The attached spreadsheets include: WIFA, Waste Programs, Air Quality and Water Quality Divisions. These spreadsheets provide data and information on the above cited elements. In addition, efforts will be made to estimate the number of jobs created with each project and whether or not the proposed project is categorized as green. It should be noted that the proposed project spreadsheet for WIFA's programs reflects estimated project costs, funded by ARRA, higher than the allocation from US EPA. Conversely, the Waste Programs' spreadsheet has lower project costs than the total allocations from US EPA. These spreadsheets will change over time but ADEQ will ensure that the amount expended for ARRA funds will not exceed the total allocation from US EPA.
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