DENR Stimulus Funding - EPA State Revolving Funds
Construction is well underway on State Revolving Fund (SRF) projects funded through the American Recovery and Reinvestment Act (ARRA) of 2009. Nearly $38 million in ARRA funding
was awarded for wastewater, drinking water, and storm sewer projects. As of June 1, 2010, nearly $12.8 million of these funds had been disbursed to South Dakota municipalities, sanitary districts, and regional water systems.
Davis-Bacon and Buy American Compliance
Several new programmatic requirements were prescribed by ARRA. Compliance with Davis-Bacon wage rates and Buy American Iron, Steel and Manufactured Goods is required of ARRA funding recipients. For most SRF funding recipients, compliance monitoring for Davis-Bacon is being undertaken by the state’s regional planning districts. The borrower’s consulting engineer plays a major role in ensuring compliance with the Buy American provisions. The recipient, however, has the ultimate responsibility for compliance with the Davis-Bacon and Buy American provisions. Guidance for compliance with these activities can be found in the following documents:
Green Project Reserve
The Department was required to earmark 20 percent of ARRA funds for projects to address green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities. These four categories of projects are collectively referred to as the Green Project Reserve. Sufficient ARRA projects were identified to reach the 20 percent threshold.
Future SRF Requirements
Several of the ARRA provisions are being carried over to future SRF projects. Loan recipients will again be required to comply with the Davis-Bacon provisions, but not the Buy American provisions.
In 2010, the Department will again need to identify projects to meet the 20 percent Green Project Reserve requirement. This equates to about $2.7 million of Drinking Water SRF “green” projects and $2.0 million of Clean Water “green” projects to fund. Guidance on the types of projects that meet the green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities criteria can be found in the EPA 2010 Clean Water and Drinking Water State Revolving Fund 20% Green Project Reserve: Guidance for Determining Project Eligibility.
For more information regarding the EPA State Revolving Funds, contact:
Department of Environment and Natural Resources
Division of Financial and Technical Assistance
523 East Capitol
Pierre, South Dakota 57501-3181
Phone: (605) 773-4216
Fax: (605) 773-4068
E-mail: Mike Perkovich