February 17th marked the one–year anniversary of the American Recovery and Reinvestment Act (ARRA), commonly known as the economic stimulus. Included in the economic stimulus package was $6 billion for the clean water and drinking water state revolving funds. 1.2 billion (20% percent) of this water infrastructure money was set aside for projects that incorporated green infrastructure and water and energy efficiency.

During the week of February 15th,  EPA reported that states used an average of 28% of their revolving funds for these green reserve projects, even though Congress only required they use 20%. In addition, our friends at American Rivers conducted a survey of 16 states and found that demand for green reserve projects from the clean water state revolving fund exceeded availability by an average of at least 1.5 times and demand for the drinking water state revolving fund exceeded availability by an average of at least 1.2 times.

This green reserve funding will continue in 2010 as part of the regular clean water and drinking water revolving funds. This year there is nearly $700 million available nation wide for state projects. Many states are already starting to make their project lists and some states are also beginning to change the criteria governing how projects are selected for funding. A recent report from the Inspector General Office found that the EPA did not provide clear guidance for states on how to solicit and select green reserve projects under the federal stimulus. Updated guidance from EPA is forthcoming but we encourage you to monitor the selection process in your own state to ensure that the best projects are solicited and funded. For more information visit the EPA’s Clean Water and Drinking Water State Revolving Funds information page.