North Dakota advances $91M in wastewater projects under Clean Water SRF program

In a recent meeting of the North Dakota Senate Appropriations Committee, significant discussions centered around the state's wastewater infrastructure funding and the Clean Water State Revolving Fund (SRF). The meeting, held on April 7, 2025, highlighted the challenges and opportunities facing communities as they seek to improve their wastewater systems.

The Clean Water SRF is a federally funded program that offers low-interest loans to communities for wastewater projects. In 2024, the program approved 91 projects, with an annual allocation of approximately $7 million in grants, a substantial increase from the $800,000 in loan forgiveness provided prior to 2022. This funding is crucial as many small communities struggle to afford the high costs associated with wastewater infrastructure, which can range from $2 million to $5 million per project.

The committee discussed the draft project priority list for 2025, which includes 257 projects totaling $1.4 billion. Many of these projects are expected to remain on the list for years due to the financial constraints faced by smaller communities. The committee noted that while the Clean Water SRF provides a 75% loan forgiveness rate, the remaining costs can still be prohibitive for these communities.

Senators raised questions about the balance between grants and loans, with some advocating for a greater focus on grant funding to support smaller communities that may not be able to repay loans. The Community Development Block Grant program and the U.S. Army Corps of Engineers also contribute to wastewater funding, with the latter providing $8 million for two projects in 2024.

The discussions underscored the need for a strategic approach to funding, particularly as the anticipated federal funding is expected to decrease significantly by 2027. The committee is considering a proposed $25 million appropriation that could benefit eight projects on the priority list, but concerns were raised about whether these projects would be ready to proceed under the current cost-sharing model.

Overall, the meeting highlighted the ongoing challenges in securing adequate funding for wastewater infrastructure in North Dakota, particularly for smaller communities. As the committee continues to evaluate funding strategies, the implications of these discussions will be critical for the future of water quality and public health in the state. The next steps will involve further assessments of community needs and the potential restructuring of funding mechanisms to ensure that all communities can access the necessary resources for their wastewater projects.