Wisconsin devotes $444M to address wastewater systems

Gov. Tony Evers announced Thursday that the state is devoting $444 million to address aging wastewater systems in Wisconsin next year.

The money is awarded through the Clean Water Fund Program that’s overseen by the Wisconsin Department of Natural Resources. The program provides financial assistance for wastewater and stormwater projects through low-interest loans and principal forgiveness, which means it reduces the amount that must be repaid. 

For the first time in the program’s history, demand exceeded available funds. Communities requested more than $535 million for wastewater projects. Financing will be available to 50 communities for building or improving wastewater infrastructure.

“We’re working to make sure Wisconsinites have safe, clean water straight from their tap to drink and that community water systems are safe, reliable, and can help effectively prevent harmful contaminants from being in our water supplies,” Evers said in a statement.

The vast majority of the funds will be made available as low-interest loans. Around $44 million will be awarded as principal forgiveness.

The funding can be used to reduce phosphorus levels in wastewater leaving treatment plants. Too much phosphorus can contribute to algae formation on lakes and streams. The money can also address aging equipment.

The Milwaukee Metropolitan Sewerage District is receiving a roughly $81.5 million loan, with $2.1 million awarded in principal forgiveness for upgrades to wastewater equipment and aeration basins, which are large ponds to treat wastewater. The city of Sun Prairie is receiving a nearly $68.2 million loan to upgrade its wastewater treatment plant.

The funding is a mix of state financing and additional funding from the federal Bipartisan Infrastructure Law passed three years ago. The state’s environmental loan programs, including the Clean Water Fund Program, are receiving more than $900 million in extra funding under the federal law between fiscal years 2022 to 2026.

During the same timespan, the federal law also awarded $1 billion nationwide to address emerging contaminants like perfluoroalkyl and polyfluoroalkyl substances, or PFAS, in wastewater and stormwater systems. That includes around $5.7 million in clean water funding that’s set aside to address PFAS in Wisconsin over the next fiscal year.

Money will be awarded to local governments over the next year as they’re reimbursed for costs of wastewater projects. Around $6.1 billion has been awarded under the Clean Water Fund Program to more than 1,300 projects since 1991.