NOTE: Projects can receive reduced borrowing rates for participating in Housing Choice Initiative and principal forgiveness for financing renewable energy projects or by meeting affordability criteria

The Healey-Driscoll Administration recently announced that 185 projects across the Commonwealth are eligible to receive approximately $1.3 billion in low-interest-rate loans and grants to fund construction, planning and asset management projects designed to improve water quality, upgrade or replace aging drinking water and wastewater infrastructure and cut treatment plant energy use and costs. These offerings include nearly $173 million in additional funding from the federal Bipartisan Infrastructure Law (BIL).

 The following projects in the Second Worcester District are eligible to receive loans and grants:

• Millbury Aquarion Water Company Jacques Wells Water Treatment Facility - $6,731,250 Millbury/Upper Blackstone Water Pollution Abatement District Standby Power for Resiliency – $10,000,000 

• Shrewsbury Rolfe & Maple Ave PS Upgrade and FM Replacement – $9,820,000

• Westborough Oak Street WTP PFAS Improvements – $6,311,731

• Worcester Quinsigamond Avenue CSO Facility Upgrades – $14,090,000

• Worcester Lake Avenue Pumping Station Improvements – $6,200,000

“Clean water is non-negotiable,” said Sen. Michael Moore (D-Millbury).“These investments announced by the Healey Administration will improve our drinking water systems and make our wastewater infrastructure more resilient, preserving our clean water supply while also protecting us from dangers like PFAS contamination. I will continue to support initiatives that put the health and safety of Bay Staters first – the way it should be.”

The State Revolving Fund (SRF) financing is administered by the Massachusetts Clean Water Trust and finances projects implemented by cities and towns, regional water supply and wastewater treatment districts, and the Massachusetts Water Resources Authority (MWRA). The projects include 61 clean water construction projects (see Table 1) totaling approximately $880 million and 50 drinking water construction projects (see Table 1) totaling approximately $381 million. An additional $4 million will be offered by the Trust as grants for 39 Asset Management Planning projects. Communities offered SRF financing in this round must decide to move forward with the project by June 30, 2023, and secure local funding authority. 

In accordance with the Clean Energy Results Program under the direction of the Massachusetts Department of Environmental Protection (MassDEP), 35 of the water infrastructure projects receiving financing are for renewable energy, energy efficiency or green infrastructure initiatives. Energy use at wastewater and drinking water treatment facilities is a major contributor to overall energy consumption for many cities and towns, with communities statewide spending approximately $150 million per year on electricity to treat 662 billion gallons of wastewater and drinking water. About 30 percent of municipal energy use derives from water treatment.

Sixty-four of the new projects are eligible to receive principal forgiveness. Principal forgiveness is awarded to renewable energy projects and for projects in communities that meet the affordability criteria established by the Massachusetts Clean Water Trust. The affordability criteria factors in per capita income, unemployment rate and population trends.

The Commonwealth has also offered to reduce the SRF borrowing rate from 2 percent to 1.5 percent for communities that support the Housing Choice Initiative. Twenty applicants have the Housing Choice designation: Acton, Andover, Barnstable, Billerica, Brockton, Everett, Franklin, Lawrence, Littleton, Lowell, Melrose, Nantucket, Plymouth, Quincy, Somerville, Stoughton, Sudbury, Taunton, Tyngsborough, and Worcester. 

The SRF is composed of two programs that have provided more than $8 billion to Massachusetts projects: the Clean Water Fund, first capitalized in 1989; and the Drinking Water Fund, which began operation in 1999. More information on the two SRF programs can be found here.

This year, the Clean Water SRF provides $903 million in financing for clean water projects across the Commonwealth. Approximately $878 million will finance 59 new construction projects, $2 million will be allocated towards financing two previously approved multi-year projects, $3 million has been allocated to the emergency set-aside account, $5 million will be directed to the Community Septic Management Program to remediate failed septic systems in participating communities, and $15 million has been set-aside to finance planning and PFAS design projects.

The Drinking Water SRF provides $431 million in financing for drinking water projects across the Commonwealth. Approximately $311 million will finance 39 new construction projects, approximately $69 million will be allocated towards financing 11 previously approved multi-year projects, $5 million will fund an emergency set-aside account, $10 million has been set-aside to finance planning and PFAS design projects, and $35 million has been set-aside to finance lead service line replacement projects. 

An additional $4 million will be offered by the Trust as grants for 39 Asset Management Planning projects, with 27 communities qualifying with Clean Water projects and 12 communities qualifying with Drinking Water projects.

Massachusetts awards subsidized infrastructure financing under the SRF, which is administered by the Trust – a joint effort of MassDEP, the Executive Office of Administration and Finance and the State Treasurer’s Office.

To be eligible for Clean Water or Drinking Water SRF loans, municipalities, wastewater districts, and water suppliers filed applications with MassDEP last year demonstrating that proposed projects offer significant public health or water quality benefits, have local funding authorization, and demonstrate that there is a commitment on the borrower’s part to file a timely loan application. The projects on the 2023 SRF list must now file loan applications and receive MassDEP approval to obtain funding.

The next SRF project solicitation for proposals to be considered for the 2023 intended use plan will open by MassDEP no later than June 5, 2023.