The Cost of Clean Water - Bipartisan Infrastructure Law

MASSACHUSETTS WATER WORKS ASSOCIATION

PO BOX 1064

 

 

FOR IMMEDIATE RELEASE

April 28, 2022

 

Many of you have heard about the Bipartisan Infrastructure Law (BIL) signed in 2021. After much negotiation in Congress, the bill authorizes significant funding in areas such as roads, transit, and finally – after decades of little to no Federal investment – drinking water and wastewater projects. Almost $1.2 billion will be coming to Massachusetts for water-related projects alone.

 

Great news, right? Indeed, this historic influx of Federal funding is certainly something to celebrate. But even though we all rely on clean, safe water to live every day, the irony is that water infrastructure is still relegated as a local issue without nearly the Federal support it deserves. It’s for this reason that the Chelmsford Water District needs the support of our community now more than ever. And even then, the reality remains that your rates are still likely to rise.

 

Most people might not be aware that a key component of this new BIL funding for water projects is that it will be distributed through a competitive loan program. Per directives from Congress, the Commonwealth will use BIL funding to award attractive low-interest loans with some possibility of grants and principal forgiveness. Any local water project must first score high enough in a competitive process to even be eligible for a loan.

Those projects that are deemed eligible then must demonstrate that they have local support to apply. So supporting the Chelmsford Water District when water projects come before Chelmsford Water District annual or special meeting, is paramount to take advantage of this historic funding.

 

But residents should be aware that this is not all “free” money. Grants and loan forgiveness are going to be largely targeted toward assisting disadvantaged communities. Much of the loans will need to be paid back. And with current supply chain issues, inflation, and the compressed timeframe in which these funds need to be spent, project costs may escalate during the time from bid to construction. Residents should be aware of these facts now, so they won’t be surprised if the Chelmsford Water District raises them while important water projects are discussed.

 

What cannot be disputed is the critical importance of investing in water projects. The last large infusion of Federal investment in water infrastructure was in the 1970s, and for many communities, the list of deferred maintenance and necessary upgrades to meet modern standards has become unavoidable.