Securing federal funding for water infrastructure projects can be a complex and competitive process. While the Bipartisan Infrastructure Law has significantly increased funding opportunities, utilities must navigate intricate application requirements, strict compliance regulations, and administrative challenges. In a recent Water Finance & Management interview, Carollo’s Emily Platt, lead grants analyst, shared her expertise on the strategies utilities can use to successfully apply for and manage federal grants and loans.
Grants vs. Loans: Understanding Your Funding Options
Utilities often wonder whether grants or loans are the better choice for financing water projects. While grants provide valuable funding, Platt explains that loans typically offer a more sustainable, long-term solution. “WIFIA, for example, has funded billions of dollars of infrastructure projects,” she notes, adding that the program allows utilities to package multiple projects under one loan. However, grants can play a crucial role in covering planning and design costs or offsetting the financial burden of a loan. In some cases, large-scale grants from the U.S. Bureau of Reclamation have provided as much as $60 million for projects exceeding $500 million.
Best Practices for Writing a Strong Application
Applying for federal funding requires a clear, well-structured, and compliant application. Platt emphasizes that utilities should avoid unnecessary complexity and focus on clarity: “Some people think you need to use a lot of fluff – no. Be clear, concise, and consistent.” She also warns that simple formatting mistakes, such as not using the required 12-point font size, can disqualify an application. Preparation is key, as some grant applications must be completed in as little as 60 days.
Compliance and Administrative Challenges
Receiving federal funding comes with regulatory requirements, including compliance with federal “cross-cutters” like Build America, Buy America (BABA) and National Environmental Policy Act (NEPA) regulations. Platt notes that while these rules can add costs and administrative burdens, funding agencies are available to help: “If you get the funding, you don’t need to be alone in figuring these things out. Talk to your program representative.”
Keys to a Smooth Funding Process
From application to project completion, organization and consistency are critical. Platt advises utilities to maintain clear and accurate documentation, engage in proactive communication with both internal stakeholders and the community, and establish a process for managing reporting requirements. “Your funding agency will want to fund you over someone else that may have had inaccurate reporting in the past,” she explains.
For more expert insights from Emily Platt on navigating federal funding for water projects, read the full interview in Water Finance & Management.