ARRA Funding Process:
Division of Water Quality

Funding Available for Water Quality and Wastewater Infrastructure Projects

The Utah Division of Water Quality’s (DWQ) Clean Water State Revolving Fund Loan Program (SRF) received approximately $20 million dollars as part of the American Recovery and Reinvestment Act of 2009 (ARRA) to fund water quality and wastewater infrastructure projects in Utah. A portion of the funding is targeted toward green infrastructure, water and energy efficiency, and environmentally innovative projects. 50% of the funds must be used for grants and the remainder will be loaned out.

Eligible Projects

All funds within the SRF must be used solely to provide loans and other authorized forms of financial assistance for the construction of publicly owned wastewater treatment works as defined in Section 212 of the Clean Water Act (CWA), and implementation of a nonpoint source pollution control management program under Section 319 of the CWA.

  • Wastewater Project means a sewer, storm or sanitary sewage system, sewage treatment facility, lagoon, sewage collection facility and system and related pipelines and all similar systems, works and facilities necessary or desirable to collect, hold, cleanse or purify any sewage or other polluted waters of this State; and a study, pollution prevention activity, or pollution education activity that will protect waters of this state.
  • Green (Nonpoint Source) Project means a facility, system, practice, study, activity or mechanism that abates, prevents or reduces the pollution of water of this state by a nonpoint source.

Who Could Apply?

Wastewater Projects

Any Political Subdivision of the state of Utah can apply for financial assistance for the construction of publicly owned wastewater treatment. A Political Subdivision means any county, city, town, improvement district, metropolitan water district, water conservancy district, special service district, drainage district, irrigation district, separate legal or administrative entity created under the Interlocal Co-operation Act or any other entity constituting a political subdivision under the laws of Utah.

Green (Nonpoint Source) Projects

Individuals, businesses, corporations, associations, private entity and government agencies are eligible for nonpoint source projects loans and grants.

Green (Nonpoint Source) Project Application

Prioritizing Projects

Financial Assistance is intended to be used for activities within watersheds that protect human health and/or address a critical water quality need. Thus, the Project Priority System is used to prioritize projects to allocate wastewater revolving loan and grant funds which may be available through the state and federal governments. The priority system is intended to identify those projects which will remedy the most severe water quality problems and to provide funds for the most beneficial program of public health protection and water quality improvement.

Recovery Act Requirements

Reference the detailed guidance EPA has issued outlining how they will award and administer State Revolving Fund Capitalization Grants appropriated to the State and Tribal Assistance Grants under the “American Recovery and Reinvestment Act of 2009.”

A brief summary of several of the key requirements:

Green Project Reserve

The ARRA states: “Provided further, That to the extent there are sufficient eligible project applications, not less than 20 percent of the funds shall be for projects, or portions of projects, that include green infrastructure, water or energy efficiency improvements or other environmentally innovative activities.” Please refer to Attachment 7 in EPA’s Guidance for detailed project descriptions and examples for Green Reserve Projects.

Additional Subsidization Reserve

The ARRA contains the following requirement: “Provided further, That notwithstanding the requirements of section 603(d) of the Federal Water Pollution Control Act or section 1452(f) of the Safe Drinking Water Act, for the funds appropriated herein, each State shall use not less than 50 percent of the amount of its capitalization grants to provide additional subsidization to eligible recipients in the form of forgiveness of principal, negative interest loans, or grants, or any combination of these:”

Davis Bacon

Section 1606 of the ARRA contains the following language: “Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, all laborers and mechanics employed by contractors and sub contractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C.App.) and section 3145 of title 40, United States Code.” The purpose of this language is to apply Davis-Bacon Act wage rules to all assistance agreements made in whole or in part with funds appropriated under the ARRA. The Department of Labor provides all pertinent information related to compliance with labor standards, including prevailing wage rates and instructions for reporting.

American Iron, Steel, and Manufactured Goods

Section 1605 of the ARRA requires that none of the appropriated funds may be used for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project is produced in the United States unless (a) a waiver is provided to the recipient by EPA or (b) compliance would be inconsistent with United States obligations under international agreements.

SRF Project Process

Review a detailed summary of the SRF project process entitled, “A Community’s Guide to the Utah Water Quality Project Assistance Program.”

A brief overview of the process follows:

  • Application Submitted
  • Application reviewed by DWQ staff
  • DWQ staff meet with applicant and city council/district reps
  • Funding request to the WQ Board for action (two meetings required)
  • Project is designed
  • DWQ design review
  • NEPA review
  • Public Hearings
  • Construction Permit
  • Advertise Bids
  • Bid Opening
  • Loan Closing
  • Contract Award

Additional Resources

If this page does not answer your questions, please contact Ken Hoffman (, (801) 536-4313.