President Obama signed the economic stimulus bill today during a stop in Denver.

"We have begun the essential work of keeping [the American] dream alive," he told an audience of about 250 at the Denver Museum of Science and Nature.

The bill (HR1) contains $2 billion in funding for drinking water infrastructure. A few hours after the House approved the measure (246–183) Feb. 13, the Senate voted its approval (60–38). Congressional leaders had a goal of getting the final bill to him by Presidents’ Day, Feb. 16.

Because legislators were determined not to create new federal bureaucracies with the bill, the $2 billion will be distributed via the state revolving loan fund (SRF) program. The money will be divided among the 50 states according to the existing SRF allocation formula. While details of how to apply for funding have yet to be announced, officials at the US Environmental Protection Agency urge interested utilities to immediately contact their own state SRF officials for information about applying for funds. A roster (PDF) of those officials is available on the Government Affairs Web page.

The total cost of the stimulus bill, also known as the American Economic Recovery and Reinvestment Act, is about $787 billion. Congress also provided $4 billion for wastewater utilities and $1.4 billion for rural drinking water, wastewater and waste disposal projects. Following are highlights with regard to drinking water funding:

• $2 billion was authorized for drinking water infrastructure.
• States will not be required to provide matching funds.
• Priority for project funding will be given to projects on a state priority list that are ready to proceed to construction within 12 months of enactment of HR1 (Feb. 17, 2010).
• Each state shall use no less than 50 percent of its capitalization funds to provide “additional subsidization…in the form of forgiveness of principal, negative interest loans or grants or any combination of these…”
• At least 20 percent of the funds shall be used for “projects that address green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities…” to the extent that there are sufficient eligible project applications.
• Funds may be used to buy, refinance or restructure debt obligations of eligible recipients only when that debt was incurred on or after Oct. 1, 2008.
• USEPA shall reallocate funds where projects are not under contract or construction within 12 months of enactment.
• No funds may be used to acquire land or a conservation easement for source water protection, to implement source water protection measures, or to establish or implement wellhead protection programs.
• USEPA (and all other federal agencies receiving stimulus funds) must post its plans for using those funds on the Recovery.gov Web site, which will be publicly accessible.

"We applaud Congress's decision to waive requirements that states provide matching funds, which would be difficult in today's economic climate and will speed distribution of funds," said AWWA Executive Director Gary Zimmerman in a statement released today. "The renewed focus on water infrastructure has helped bring the conversation about our buried water pipes above ground."

Another $1 billion was designated for water and related resources under the US Bureau of Reclamation. Several allocations were specified: at least $126 million for water reclamation and reuse projects, $50 million for the Central Utah Project, $50 million for projects under the California Bay – Delta Restoration Act, and $60 million for rural water projects, primarily for intake and treatment facilities.

The act also provides $4.6 billion for the US Army Corps of Engineers for completion of current water projects and new projects to improve flood protection, navigation, hydropower, and the existing water resource infrastructure. The priority is for projects that could be completed in one year.

Source: http://www.awwa.org/publications/StreamlinesArticle.cfm?itemnumber=45992