Oregon DEQ: Economic Stimulus Funding for Environmental Priorities in Oregon

The American Recovery and Reinvestment Act (ARRA) provides $6 billion to help communities with water quality, wastewater and drinking water infrastructure needs; $300 million for grants and loans to help with projects that reduce diesel emissions; $200 million for cleanup of petroleum leaks from underground storage tanks; $100 million for competitive grants to evaluate and clean up brownfields (former industrial and commercial sites) and $600 million for the cleanup of hazardous “Superfund” sites.

Oregon is focused on accelerating our state's economic recovery by creating jobs and economic stability for communities throughout the state during this volatile time. Governor Ted Kulongoski's approach is comprehensive, leveraging state and federal dollars and private investment to maximize efforts that deliver short-term stimulus and long-term economic prosperity. The ARRA empowers Oregon to invest in its economy by pursuing smart, sustainable, and transformational efforts - doing this "The Oregon Way."

DEQ will administer an estimated $53 million or more in Recovery Act funding for environmental projects in Oregon.

Oregon DEQ Administered Funds
Clean Water State Revolving Fund
Water Quality Planning Grant
Clean Diesel Grants
Leaking Underground Storage Cleanups

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Oregon DEQ Administered Funds

The Oregon Department of Environmental Quality will receive the following Recovery Act funding:

Approximately $45 million for the Clean Water State Revolving Fund (CWSRF) loan program
$447,200 to conduct water planning projects
$1.7 million in state clean diesel funding for grants. DEQ will also apply for approximately $3.25 million in competitive diesel grant funds under the National Clean Diesel Funding Assistance Program, and
Up to $2.8 million to protect human health and the environment by cleaning up petroleum leaks from underground storage tank sites.

DEQ may receive additional funding for grants related to brownfield cleanups and is awaiting information from EPA on how funding for these projects will be administered.

Clean Water State Revolving Fund

Oregon DEQ was awarded about $45 million through an additional capitalization grant for the Clean Water State Revolving Fund (CWSRF) loan program. The CWSRF program provides low-cost loans to communities for water quality and wastewater infrastructure needs.

Project Certifications

DEQ has certified the following projects as ARRA grant recipients through the Clean Water State Revolving Fund:

City of St. Helens	City of Milwaukie
City of Albany	City of Pendleton
City of Astoria	City of Scappoose
Clackamas County Service District #1	Metropolitan Waste Management Commission
Central Oregon Irrigation District	Swalley Irrigation District
Farmers Irrigation District	Three Sisters Irrigation District
City of Millersburg

Funding requirements

The ARRA requires all funds to be committed to eligible projects by Feb. 17, 2010. Loan agreements must be signed with DEQ for projects that are committed to contracts for construction or in which construction has begun.

Green Project Reserve Funding

At least 20 percent of the capitalization grant was required for projects that address green infrastructure, water or energy efficiency improvements or other environmentally innovative activities. This is known as the Green Project Reserve and amounts to $8.8 million in Oregon. DEQ evaluated project applications and identified those projects that qualify for this portion of the funding. Three water efficiency irrigation projects will be funded under this Reserve that will significantly reduce the amount of water loss in their delivery systems, and will increase the return of water to nearby streams to improve water quality.

Loan Financial Terms

States are also required to use at least 50 percent of the capitalization grant to provide additional subsidization to eligible applicants. Oregon will provide principal forgiveness on a loan as the additional subsidization. A loan made to a borrower that is a small community (defined in CWSRF administrative rules as a public agency serving a population of 5,000 or less) will include 75 percent principal forgiveness. All other loans made under the Act will include 50 percent principal forgiveness. For both types of loans, the remaining loan amount will be repaid at zero percent interest.

Additional Information can be found at:
DEQ Clean Water State Revolving Fund Loan Program
EPA Region 10 Recovery Funding for Clean Water/Drinking Water Projects

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Water Quality Planning Grant

DEQ anticipates receiving a grant of approximately $447,200 to conduct water planning projects; 40 percent of this grant − $178,880 − is to be allocated to regional public planning organizations that assist in the development and implementation of water quality management plans that include watershed restoration and other water-related implementation activities. The projects include:

"Watershed Project Implementation in Oregon Watersheds" (DEQ)
Identify the priority water quality problems in a selected Oregon basin, with stakeholder input, and develop strategies to address the priority problems.
"Mercury Total Maximum Daily Load Assessment: Willamette and Umpqua Basins" (DEQ)
Implement a monitoring plan to develop a mercury Total Maximum Daily Load (TMDL) and point source mercury minimization plan in the Willamette and Umpqua basins. The project will build on previous Oregon Department of Environmental Quality’s (DEQ) efforts to implement a mercury minimization plan.
"Regulatory Approach for Industrial Stormwater Discharges to TMDL approved Waterbodies: Project in Support of Reconsideration of NPDES Industrial Stormwater General Permits" (DEQ)
Evaluate and develop a regulatory approach for industrial stormwater discharges to impaired waterbodies with adopted and EPA approved Total Maximum Daily Loads (TMDLs). Developing permit requirements for industrial stormwater discharges to TMDL basins to ensure they comply with TMDLs is a new regulatory approach for industrial stormwater general permits that will result in significant improvements to water quality and provide clarity to facilities on how to comply with TMDLs.
"Lower Columbia River Habitat Restoration Project Development" (to be implemented by the Lower Columbia River Estuary Partnership)
Provide a staff person through 2010 to be jointly shared by the Scappoose Bay Watershed Council, Lower Columbia River Watershed Council and Columbia Soil and Water Conservation District to help these organizations develop new habitat restoration projects. Habitat restoration projects that come from this work will help improve water quality and implement goals in the draft Oregon Recovery Plan and the goal of restoring 16,000 acres of wetland and upland habitat by 2010 in the Lower Columbia River Estuary Partnership’s Comprehensive Conservation and Management Plan and the EPA 2006-2011 Strategic Plan.
"Water Quality Planning Work to Support the Bear Creek and Rogue River Basin TMDLs" (to be implemented by the Rogue Valley Council of Governments (RVCOG))
For the Bear Creek Watershed TMDL and the Rogue River Basin TMDL, provide: professional planning assistance to the 26 Designated Management Agencies (DMAs) to produce in-depth and effective TMDL implementation plans; professional assistance to present/support the implementations plans to the public and the DMA governing boards (city councils, county board of commissioners, irrigation district board of directors; low-cost water quality monitoring to interested DMAs to provide these small communities an opportunity to investigate areas of potential concern; and, development of a prioritized tree planting restoration plan for the TMDL areas which will ensure the success of riparian restoration projects undertaken by the DMAs.

Clean Diesel Grants

The ARRA provides $300 million to support clean diesel activities meeting the following priorities:

Maximize public health benefits;
Are the most cost effective;
Are in area with high population density, that are poor air quality areas (including nonattainment or maintenance areas, Federal Class 1 areas; or areas with toxic air pollutant concerns);
Are in areas that receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals and distribution centers or that use a community based multi stakeholder collaborative process to reduce diesel emissions;
Include a certified engine configuration or verified technology that has a long expected useful life;
Maximizes the useful life of any certified engine configuration or verified technology;
Conserves diesel fuel; and
Utilizes ultra low sulfur diesel ahead of EPA’s mandate for non-road applications.

Oregon DEQ will receive $1.7 million in state clean diesel funding for grants. DEQ will also apply for approximately $3.25 million in competitive diesel grant funds under the National Clean Diesel Funding Assistance Program. Several other eligible entities in Oregon plan to apply for the competitive grant funding as well. The goal for both programs is to create jobs and reduce emissions from diesel engines. DEQ projects will focus on exhaust controls and engine upgrades.

The National Clean Diesel Funding Assistance Program is open to state, local, regional and tribal governments with jurisdiction over transportation and air quality, nonprofits representing or providing pollution reduction or educational services to persons or organization that operate diesel fleets, or whose principle purpose is the promotion of transportation or air quality. Applications for competitive grants are due to EPA in late April. DEQ is available to provide support for those entities who wish to develop their own proposals.

More information about EPA's National Clean Diesel Recovery Act funding

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Leaking Underground Storage Cleanups

Oregon expects to receive approximately $2.7 million to protect human health and the environment by cleaning up petroleum leaks from underground storage tank sites. The site assessment and cleanup work will largely be performed by private environmental engineering firms under contract to DEQ. Although final guidelines have not yet been issued by the EPA, DEQ has developed a list of approximately 13 sites it believes will be eligible for funding. The highest priority will be given to sites that pose the greatest threat to human health and the environment and lack an owner who can undertake the cleanup.

Brownfield Cleanups

Brownfield grants are typically awarded to local governments to facilitate investigation, cleanup and productive reuse of vacant and underutilized of contaminated properties. EPA has not yet announced how it will select projects for these additional grant funds.

Superfund Site Cleanups

EPA usually cleans up Superfund sites itself, rather than granting funds to DEQ perform the cleanup work. There are currently 12 Oregon sites on the National Priorities List (Superfund). EPA has not yet announced which Oregon sites, if any, will receive funding.

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