Last week, the Minnesota Public Facilities Authority (PFA) released its list of FY2021 applicants for the Point Source Implementation Grant (PSIG) program. This program provides matching grants of up to $7 million to local governments to upgrade water treatment facilities, such as wastewater plants and certain stormwater facilities. New applicants on the list include several CGMC members including Austin, Mankato, Fairmont, Foley and Ely. CGMC members Babbitt and Nashwauk remain on the list from last year.

The PFA has approximately $18 million in funds, which is not enough to cover these projects. To provide these communities the funding they need, a new bonding bill with an appropriation for the PSIG program is necessary.

The PFA also announced that the intended use plans (IUPs) for the Clean Water Revolving Fund and the Drinking Water Revolving Fund were approved. The IUPs detail the projects that can be funded through these programs this fiscal year. These programs provide low-interest loans, and in some cases grants, to eligible local governments to construct water pollution control projects, including wastewater and stormwater, and drinking water projects.   

CGMC Members Waseca, Ely and Worthington joined a host of other CGMC Members on the Clean Water Revolving Fund IUP. Unfortunately, as announced earlier in September, without a bonding bill appropriating additional funding to the PFA for federal matching grants, no funding will be available for the communities added to the IUPs this year.

These lists illustrate why it is important that the Legislature move forward with a bonding bill as soon as possible. Without this funding, these communities will likely be forced to delay their projects, which will likely increase project costs and could cause environmental problems.

If you have any questions regarding these PFA programs, please contact Elizabeth Wefel at eawefel@flaherty-hood.com.