CA Governor Schwarzenegger Statement on $440 Million Recovery Act Funds for Water Quality Projects

05/21/2009 -- California Governor Arnold Schwarzenegger issued the following statement today on the approval of American Recovery and Reinvestment Act (Recovery Act) money that will allow the state to allocate more than $440 million in funding to create jobs, protect water quality and improve drinking water around California:

“This Recovery Act funding will create jobs while updating sewage and water treatment facilities and supporting drinking water projects that protect public health and the environment,” said Governor Schwarzenegger. “The State Water Board and Department of Public Health have been working for months to identify shovel ready projects where work can begin within months, meaning jobs for California communities and a much-needed boost to the state’s economy. I will continue to fight for every stimulus dollar that California deserves.”

The Recovery Act money will be distributed by the State Water Resources Control Board (Water Board) and the California Department of Public Health (CDPH). The Water Board will provide funds for $280 million in water projects in the form of grants, zero-percent and one-percent loans to finance much-needed sewer and sewage treatment projects in all parts of the state. The money is administered by the Clean Water State Revolving Fund which, in normal years distributes about a quarter billion dollars in low-interest loans. Using stimulus dollars in a strategic manner, it will double the normal amount and reach many communities which normally don’t apply for loans.

CDPH has tentatively awarded $159 million in drinking water grants to 75 awardees. More than 2,000 applications for $6.8 billion in funding were made to the Department in February. The Department selected awardees based on criteria in the federal Recovery Act that placed a premium on moving quickly. The complete list is posted at http://ww2.cdph.ca.gov/services/funding/Pages/SRF.aspx.

A public hearing about the tentative awards is scheduled for Tuesday, May 26 at the Crest Theater in Sacramento. The drinking water projects are expected to create at least 2,800 new jobs. CDPH expects to encumber half the funds by June of this year and the remaining half by early December. To receive funding, all projects must break ground before February of next year.

Source: California Governor