Michigan Leverages Funding Streams to Support Water Infrastructure

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There is a growing stream of support in Michigan for water infrastructure.

“Few things are more important to our households and businesses than drinking water, surface water and groundwater,” Governor Gretchen Whitmer said. “I am excited to work with the Legislature and all partners to keep investments flowing to strengthen Michigan’s vital water infrastructure and support a healthy and prosperous future.”

The 2023 bipartisan state budget, passed July 1 for the fiscal year that begins Oct. 1, includes $48 million in technical assistance that can help communities apply for funds to replace lead water pipes. or other water infrastructure, and $7.9 million for potable water. both through the Michigan Department of Environment, Great Lakes and Energy (EGLE).

And the annual budget is only part of the picture. Here are the other main current sources of funding and funding for water infrastructure:

MI Water Sanitation Plan: Governor Whitmer’s bipartisan plan beginning in 2020 announced 169 awards totaling $124 million to address water infrastructure needs in communities across Michigan. Some programs started under the plan will continue under the Building Michigan Together plan (described below), and other grants are expected to be finalized by early fall. In total, MI Clean Water has allocated $102.1 million in federal funds to replace lead service lines in low-income communities and $105 million for general fund programs that address PFAS or other contaminants, identification of lead service lines, planning and pricing studies, and asset management plan. development.

Michigan building plan together: On March 30, 2022, Governor Whitmer signed into law the nearly $5 billion bipartisan plan, also known as Public Law 53. The state’s largest-ever investment in rebuilding infrastructure includes more than 1 $.9 billion for water improvements, including $1.26 billion in the form of federal funds from the American Rescue Plan Act allocated in fiscal years 2023-24 to state revolving funds for the drinking water and waste water (see below). Building Michigan Together also promises to create up to 27,000 jobs with at least $341 million to replace 20,000 lead water pipes, including 100% of lead service lines in Benton Harbor. Also on the program:

  • $40.5 million to help communities address toxic contaminants such as PFAS in drinking water and wastewater. This includes $18 million for the Consolidation and Risk Reduction Grant Program, of which $8.5 million is earmarked for Oscoda, a PFAS hotspot near the former Wurtsmith Air Force Base.
  • $20 million for the Drinking Water Asset Management grant program to help drinking water providers develop and update asset management plans and material updates for their systems distribution, such as lead service entrances.

State working capital: The Drinking Water State Revolving Fund offers low-interest loans over 20, 30, or 40 years to help eligible water providers complete projects to meet federal water safety law requirements. drinkable. Loan funds available for FY2023 projects total $256.5 million, including $91 million in the form of loan principal forgiveness. The Clean Water State Revolving Fund offers similar low-interest loans to help qualified local municipalities build the facilities needed to control water pollution. The fund will provide $881 million in financing for 2023, including $68.3 million in the form of loan principal cancellation.

EGLE provides regulatory oversight of all Michigan public water supplies, including approximately 1,400 community water supplies and 10,000 non-community water supplies. The ministry also regulates the water well drilling industry, investigates contamination of drinking water wells, and oversees remedial activities at sites where groundwater contamination affects drinking water wells. Michigan has nearly 1.12 million households served by private wells, with approximately 15,000 domestic wells drilled each year.

EGLE invests more than half of its budget in Michigan communities in the form of financial assistance to address water infrastructure and other efforts to protect the environment and public health. Learn about funding opportunities for Michigan communities or view an interactive grants and loans dashboard on the department’s Grants and Funding webpage.

Legend: Potable water construction project by Lansing Board of Water and Light in 2021.

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