Gov. Perdue Notes Infrastructure Projects for Areas

Gov. Sonny Perdue recently announced the approval of 11 state and federally funded environmental infrastructure projects totaling $91.5 million. Five of the projects were either fully or partially financed by the American Recovery and Reinvestment Act (ARRA) at a total of $40.5 million.

The Georgia Environmental Facilities Authority (GEFA) board of directors approved the commitments to help finance water and sewer infrastructure projects in Cobb County, ColquittCounty and Gwinnett County, and the cities of Camilla, Hiawassee, Port Wentworth, Portal, Sparta, Stillmore, Valdosta and West Point.

GEFA helps communities prepare for economic growth and development through the provision of low interest loans. The Clean Water State Revolving Fund (CWSRF) is a federal loan program administered by GEFA for wastewater infrastructure and water pollution abatement projects. Eligible projects include a wide variety of storm water and wastewater collection and treatment projects. The Drinking Water State Revolving Fund (DWSRF) is a federal loan program administered by GEFA for water infrastructure projects. Eligible projects include public health-related water supply construction. The Georgia Fund is a state funded program administered by GEFA for water, wastewater and solid waste infrastructure projects. The Georgia Fund provides loans and grants to local governments for projects such as water and sewer lines, treatment plants, pumping stations, wells, water storage tanks and water meters. Low interest loans from this program are available up to $10 million.

Under the ARRA financing terms adopted by the GEFA board of directors, cities or counties that are OneGeorgia-eligible qualify for a 70 percent subsidy. Cities or counties that are not OneGeorgia-eligible qualify for a 40 percent subsidy. Green projects receive a 60 percent subsidy. For example, if a OneGeorgia-eligible community applies for a $1 million loan, then 70 percent of the loan will be forgiven and the community will close on a 20-year loan of $300,000 at a three percent interest rate. OneGeorgia-eligible communities are located outside the state’s metropolitan areas and have a population of 50,000 or less with a poverty rate of 10 percent or greater. The unprecedented amounts of subsidy in the ARRA financing terms will help Georgia meet the ARRA’s short-term goals of job creation and economic stimulus.

Georgia local governments expressed a tremendous amount of interest in the ARRA funds. Cities and counties submitted more than 1,600 clean water, drinking water and green projects with a total cost that exceeded $6 billion. Total available funding for projects through the ARRA is $144 million. Funding is obligated to projects on a first-come-first-served basis.