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The Cape Cod Islands Water Conservation Fund, created in 2018 to help communities pay for wastewater infrastructure and water quality improvement projects, has struggled to keep up with growing demand for grants and faces a severe funding shortfall. are doing.
“The number and cost of projects exceed previous expectations,” said Erin Perry, deputy director of the Cape Cod Commission. The fund will award 25 percent grants to eligible wastewater management and water quality projects in Cape Cod and Islands towns, according to the commission’s website.
A Jan. 12 letter to the chairs of the Congressional Joint Committee on Environment and Natural Resources and the Cape Cod Commission says that since the fund’s creation, revenues have largely remained in line with projections, but that local commitment and eligibility for projects has remained largely unchanged. The project cost has exceeded expectations. Islands Legislative Delegation from Cape Cod Commission Executive Director Christy Senatori;
A 2023 proposal for Clean Water State Revolving Fund financing listed by the state Department of Environmental Protection calls for more than $167 million for local projects, which puts the Cape and Islands Fund’s assumed project cost at $100 million. This exceeds the above amount, making it the “highest amount.” We toured Cape Cod in just one year,” Mr. Senatori wrote in the letter.
The state Department of Environment’s 2024 draft list of projects proposed for the state revolving fund loan program, known as planned use projects, includes more than $248 million in Cape projects, Senateri said. It pointed out.
The fund’s governing board resolved to reduce the subsidy to 12% in 2024 without additional funding, Orleans Select Board Chairman Kevin Galligan wrote in a June letter to Gov. Maura Healey. stated in a letter on the 30th.
“It could be lower than this depending on the final usage plan,” Perry said.
In the letter, Galligan said an additional $5 million is needed in fiscal year 2024 and approximately $66 million in revenue over the next three fiscal years to allow the fund to continue the 25% subsidy through the end of 2024. said it was necessary.
What is the source of funding for the Cape Islands Water Conservation Fund?
The fund’s dedicated revenue source is a 2.75% sales tax on short-term rentals in its 15 member communities. Mr Perry said this would continue to be a source of income while the board’s executive committee devised two strategies to find new sources of income.
“We’re looking at approximately $2.5 billion worth of projects over the next 10 years,” said Mark Forrest, a member of the Barnstable County Zoning Board and Yarmouth Board of Selectmen. “It’s a huge investment.”
The city of Yarmouth last year approved a $207 million project that includes a wastewater collection and treatment facility along Route 28, Forrest said.
“My concern is that wastewater investment will lose momentum,” he said, adding that the promised funding has yet to materialize as construction costs rise.
Yarmouth is ready to move the project forward more quickly, but “it’s the state that’s holding us back,” Forrest said.
In January:‘At risk’ Yarmouth seeks help from lawmakers on permitting $207 million wastewater project
What are the possible solutions?
As a short-term solution, fund managers are directing the Massachusetts Clean Water Trust to leverage funding from the federal Bipartisan Infrastructure Act to provide an additional 9% subsidy to disadvantaged communities in the Cape in 2023 and 2024. requested that the money be provided.
Perry said this would require a vote by the Massachusetts Clean Water Trust board.
“This proposal has been submitted to them and we have asked them to consider it,” he said. “The long-term strategy includes pursuing approximately $300 million in bond funding authorization, which could be included in one or more state legislative instruments.”
Galligan said in an interview that there is an opportunity to request dedicated appropriations through environmental bond legislation over the years, which could replenish the fund.
What has the fund paid for so far?
In his letter to Healy, Galligan said the foundation has awarded approximately $140 million in grants to wastewater and water quality projects in Cape Cod communities since its inception.
Mr Perry said the 25 per cent grant “motivated action” and garnered community support.
“Without significant additional revenue to the fund, the Trustees will be forced to limit subsidies for critically needed wastewater and water quality projects on Cape Cod,” Senateri wrote in a Jan. 12 letter. Deaf,” he said.
Massachusetts Clean Water Trust responds
At its Feb. 17 board meeting, the Massachusetts Clean Water Trust approved $38,169,258 and $3,610,054 in clean water loans and financing agreements to Yarmouth.
“We will be taking on a portion of the Phase 1 wastewater management plan that was approved at last year’s annual town meeting,” Forrest said.
“We have been working with Cape since the foundation’s inception and we look forward to continuing to work with them…We look forward to an update on how we can help at upcoming board meetings.” said the Trust Executive Committee.
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