Governor Ivey Announces Funds Transferred to ADEM for Statewide Water and Sewer Projects

MONTGOMERY- Governor Kay Ivey announced today that the Alabama Department of Finance has signed an agreement with the Alabama Department of Environmental Management (ADEM) that officially provides $225 million in relief funds COVID-19 to ADEM for grants to provide or improve water and sewer services to residents across the state.

The money comes from Alabama’s share of American Rescue Plan Act (ARPA) funds passed by Congress in 2021. The Alabama Legislature earmarked the $225 million for water projects and high-need sewers at a special session called by Governor Ivey in January. In its appropriation, the legislature directed the funds to the Ministry of Finance and designated ADEM to oversee the program.

The Memorandum of Understanding signed by the Ministry of Finance and ADEM will provide the funds to ADEM which will be distributed in the form of grants to “eligible public water and sanitation systems with the aim of improving access drinking water and sanitation infrastructure projects and the economic impact thereof, “in accordance with the agreement. ADEM will implement the “COVID-19 Water and Sewer Infrastructure Recovery Fund Program” using criteria that weigh the infrastructure needs of water and sewer systems and their financial needs.

“Every Alabamian should have access to safe drinking water and safe and hygienic wastewater disposal,” said Governor Ivey. “We are extremely pleased that through this program we are able to make this a reality for many of our fellow citizens who have lacked such basic services. Not only will these projects improve access to clean water and sanitary sewers, but they will also generate economic activity and create jobs by injecting millions of dollars into communities, many of which are rural and far from major industries. and large employers. It really is a win-win situation for the people of Alabama.

Of the $225 million, the legislature earmarked $120 million for grants to public water or sewer systems with previously identified emergency or high-needs projects not requiring local matching; $100 million for subsidies to public water and sewer systems that may require local matching funds depending on their ability to pay; and $5 million for Black Belt Demonstration Project Grants to address sewage disposal issues prevalent in sparsely populated rural areas where poor soil conditions prevent sewage from pits septic tanks from being absorbed into the soil.

ADEM already manages two State working capital loan programs, one for drinking water networks, the other for sanitation networks.

He announced Tuesday that 398 of the state’s 1,061 public water and sewer systems — 37% — have already applied for grants under the COVID-19 stimulus fund program.

“This is an indication of the enormous needs that exist among water and sewage systems,” said the director of ADEM, Lance LeFleur. “It also points to the vast needs for water and sewer infrastructure across the country due to aging systems, increased demand due to population growth and the need to provide services to currently unserved people. or underserved. Many of these systems haven’t upgraded their infrastructure for 40-50 years.

For more information on water and sewer projects, visit www.alabamawaterprojects.com. The site also provides regular updates on grant applications, links to water and sewer grant application forms and contact details for ADEM.

ADEM ARPA MOA

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