Providing Better Technical Assistance To Help Underserved Communities Access Federal Funds For Water Infrastructure Investments

The Infrastructure Investment and Jobs Act (IIJA) includes nearly $55 billion to invest in water infrastructure over the next 5 years. This significant federal investment in water services–the largest since the construction grants program in the 1970s–has the potential to deliver profound benefits to the environment, economic development, and public health. State and federal funds are a crucial source of alternative financing. Systems that are unable to take on more debt or repay loans rely on grants. Ensuring underserved communities have access to SRFs is critical to enhancing equity. The problem is that many underserved communities struggle to access federal funds. For example, the State Revolving Fund (SRFs)–which will be used to allocate over 80 percent of the IIJA funding for water infrastructure–has not been equitably distributed: - Only 10 percent of drinking water systems have received SRF funds. - Less than 25 percent of SRF funds reach disadvantaged communities. - Small and racially diverse communities are less likely to access SRFs. In this presentation, we propose to share lessons learned and case studies about how to use this once-in-a-generation opportunity to enhance equity and resilience by ensuring underserved communities access assistance. We are a group of community engagement, finance, and technical experts who connect water utilities serving under-resourced communities with the support they need to secure federal funds. Water utilities need experts to help develop individualized, creative solutions to the specific challenges they face. We have developed a model to help water systems plan, design, and build resilient water infrastructure projects. We do this, at scale, in four main steps: 1. Identifying and recruiting communities with the greatest needs to apply for federal funds. 2. Rapidly diagnosing problems. 3. Developing appropriate infrastructure projects for communities. 4. Helping utilities complete applications, secure funding, and implement projects.
In this presentation, we will share case studies and lessons from each of these steps.
1. Identifying and recruiting communities with the greatest needs to apply for federal funds. The financial, physical, and demographic conditions within the state determine the potential for how much state and federal funds could do. We compile financial, physical, and demographic data from various sources to determine which projects are most likely to enhance environmental justice and climate resilience. We will present how we analyzed these data to identify communities to assist in the Great Lakes. We then will explain how we worked with multiple partner groups, with trusted relationships with the communities, and recruit water systems to consider water infrastructure investments. 2. Rapidly diagnosing problems. Utilities without the technical expertise often ignore their challenges, leading to disrepair of infrastructure. We help utilities diagnose problems with a playbook that identifies the top ten categories for infrastructure renewal. We will present examples and case studies that highlight the multiple benefits from the investment and the improvements to performance, reduction of operating and capital costs, and improved resilience. 3. Developing appropriate infrastructure projects for communities. One of the biggest issues small communities and poorly resourced communities face is developing projects that fit the needs. When a community faces infrastructure and regulatory challenges, there can be more than one way to solve these issues. Sometimes a simple operation or maintenance fix is all that is needed, other times a rehabilitation can address the concerns while in the most extreme cases, a new facility may be required. The problem is, too many times, consultants jump to the last, most expensive option for the community. This option can cost the most and may only solve a short-term problem. If the original facility was in disrepair due to poor operation and maintenance practices and nothing is done to improve those, the new facility will only help in the short term while the assets are 'new' and need little maintenance but over time, the facility will deteriorate just like the last one. It is necessary to consider all aspects of the current situation, and not just assume new construction is the answer. Part of our role is to encourage the consideration of a wider range of options and to select the most appropriate option for the community. We connect the community to a wide array of entities who can help from technical assistance providers, to engineers, to environmental scientists to ensure that all aspects of the project and funding applications are addressed. 4. Helping utilities identify funding opportunities and complete applications. The universe of funding programs that can be applied to water infrastructure is large and complex. Differing application requirements, eligible applicants, timelines for submittal, prerequisites, and funding priorities across programs can make it difficult if not prohibitive for time-constrained utility staff to execute applications. We work with utilities to develop baseline fluency in water funding programs, identify appropriate funding sources for priority projects, and provide assistance in managing the process to complete applications. The program emphasizes a community-driven approach that engages in authentic dialogue with community members about projects and funding proposals to ensure equitable outcomes.