Existing Municipal Utilities have been utilized by multiple generations for Public Health, Growth of Commerce and High Quality of Life. Most American water systems have been in operation for 75 to 100 years – well past their intended lifespans. Unfortunately, this infrastructure is in critical need for Replacement or Rehabilitation for the next generations.
BG Consultants recently attended a seminar and talked with KDHE regarding potential infrastructure funding that will be distributed to Kansas when the infrastructure bill is passed. Because Congress has yet to agree and vote, this information is preliminary, but it is anticipated that an updated funding program would become available in 6-9 months.
We want to help our clients start planning and putting together infrastructure improvement lists for consideration so that you will be ready when Congress passes the plan. We encourage you to start the planning early and we can help you through that process.
There appears to be three main categories:
- Typical KDHE Projects (Drinking Water and Clean Water)
- Emerging Containments
- Lead Service Lines
| Year | Drinking Water Loan Funds |
Drinking Water Loan Forgiveness |
Clean Water Loan Funds |
Clean Water Loan Forgiveness |
|---|---|---|---|---|
| 2022 |
$77M |
$46M | $31M | $12M |
| 2023 | $80M | $48M | $35M | $15M |
| 2024 | $83M | $50M | $37M | $16M |
| 2025 | $85M | $51M | $39M | $17M |
| 2026 | $85M | $51M | $39M | $17M |
There will different categories, but the table above shows the anticipated overall funding amounts being considered with the new infrastructure bill.
Anticipated information for funding:
- Typical Drinking Water (DW) and Clean Water (CW) Projects will have both Loan and Loan Forgiveness in a 1.6:1 ratio available.
- DW Loans for Emerging Contaminants will be 100% Loan Forgiveness.
- Lead Service Lines will have DW Loan and Loan Forgiveness at 1.6:1 ratio available.
All information is subject to change, Congress will have to agree, but it appears that some type of infrastructure funding will become available and that a significant portion will be earmarked for Water Projects (DW & CW).
The best recommendation that BG can give is to start your planning process soon. Feel free to reach out to the professionals you know at BG and they can assist you with the planning process.
