ARRA funds for wastewater and water

Upgrading wastewater treatment facilities

Metropolitan Council Environmental Services (MCES) is eligible for about $8.2 million of the $82 million the State of Minnesota is receiving for clean water projects. MCES competitively bid for, and has been awarded federal loans, which will be forgiven, of $2 million for each of the following projects:

Improved liquid treatment facilities at the Blue Lake Wastewater Treatment Plant in Shakopee (total project cost: $85 million).
Additional solids processing facilities at the Blue Lake Plant (total project cost: $55 million).
Improved wastewater collection facilities with additional capacity in the Victoria-Waconia area (total project cost: $38 million).
Replacement of an aging regional sewer serving South St. Paul and Inver Grove Heights (total project cost: $29 million).

An additional award of nearly $200,000 will pay for a tunnel lighting project, which ranks as a green energy project.

The federal funds will be administered through the Minnesota Public Facilities Authority (PFA), which will also make other federal and state funds available to offer additional low-interest loans for infrastructure projects. The interest rate on these loans is discounted from market rates, which helps wastewater agencies like MCES reduce debt service costs.

MCES is eligible to receive $80 million in PFA loans in 2009 at the usual below-market interest rate, compared with $50 million in previous years. The ability to obtain more of its loans at below-market interest rates will save MCES an additional $3 million.