Water infrastructure projects could get funding boost

Cities and counties play an essential role in protecting Minnesota waters, but their aging wastewater and stormwater systems can make it difficult to meet state and federal regulations.

Sponsored by Rep. Jeanne Poppe (DFL-Austin), HF411 would appropriate $128 million for clean water capital investment projects.

The bill was approved without opposition by the House Greater Minnesota Jobs and Economic Development Finance Division Wednesday. It now heads to the House Ways and Means Committee. The companion, SF587, awaits action by the Senate Capital Investment Committee. Sen. Gary Dahms (R-Redwood Falls) is the sponsor.

The funding would come from the sale and issuance of state general-obligation bonds. The $128 million would be split between three projects or programs:

• $62 million for grants under the point source implementation grants program, which helps cities upgrade treatment facilities to reduce discharge of specific pollutants to meet regulatory requirements;
• $55 million for grants under the water infrastructure funding program; and
• $11 million to match federal grants for the clean water revolving fund and the drinking water revolving fund. The revolving funds provide low-interest loans for municipal wastewater, stormwater treatment and drinking water projects.

Public Facilities Authority Executive Director Jeff Freeman explained a big portion of those funds, which the PFA administers, ultimately go to the replacement of aging infrastructure.

“It’s more of a financial challenge for smaller communities, which is where the grant programs come in,” he said. “The key thing is to have the funding steady and predictable so that cities can plan for it.”

Advocates urged the Legislature to move quickly on the bill, noting that funding for water infrastructure projects that had been included in the 2018 bonding bill never materialized following a lawsuit from several environmental groups. The groups contend much of the funding for those projects is coming from the Environmental and Natural Resources Trust Fund, which they say is not to be used for those purposes.

Craig Clark, administrator for the City of Austin, said this is delaying several of the city’s planned projects to improve its aging wastewater and stormwater systems.

“These projects are ready to go, and construction can begin this year in many instances,” he said. “Delaying action on this legislation only continues to hurt the environment and I plead for quick action on this.”

Rep. Jeff Brand (DFL-St. Peter), shared a similar story from his district, mentioning a Lake Jefferson Wastewater Association project awaiting funds in order to upgrade its facilities to meet state and federal regulations.

“I’m very supportive of getting this stuff done,” he said. “We’ve got a lot of good projects that are meant to be compliant that are being held up right now.”