Page 10 - July-Aug 2021 Vol 39 No 2

STATEWIDE By Calvin D. Clifton and Jason E. Mumpower
American Rescue Plan Act

What it Means for Tennessee’s Public Works Agencies

From the Comptroller’s Office
Introduction by Calvin D. Clifton, Mattern & Craig, Inc. The Comptroller’s office appreciates this opportunity
When I first read the March 17, 2021 Memorandum from the to share information with the public works agencies
Tennessee Comptroller of the Treasury’s office regarding the across the State of Tennessee. We recognize and
American Rescue Plan Act of 2021, I immediately thought: “great, understand the importance of what you do on a daily
this must be all about infrastructure. This would be a great topic basis and appreciate your commitment to the citizens of
for the Tennessee Public Works Magazine…” So, I spoke with Jason the Volunteer State.
Mumpower, a good friend who happens to be the Comptroller, and First, regarding the ARPA, it is important to express that
he agreed that this is information that needs to be shared with all this is not a general infrastructure funding package. It is
public agencies across the State. a funding package intended to provide support to State,
Comptroller Mumpower and his staff, including John Dunn local, and Tribal governments (together, recipients) in
and John Greer, were ready and eager to provide some extremely responding to the impact of COVID-19 and in their
important information that is summarized in this article. efforts to contain COVID-19 on their communities,
The Comptroller’s Office has, to date, issued three (3) very residents, and businesses. Funds build on and expand the
detailed memoranda regarding the ARPA and guidance for public support provided to these governments over the last year,
agencies. These are available on the Comptroller’s website at this including through the Coronavirus Relief Fund (CRF).
link: https://comptroller.tn.gov/about-us/learn-about-our-office/ Tennessee cities and counties are set to share about
administration/covid-19-guidance-for-local-governments.html
Also included on this website are the Interim Final Rule, fact $2.2 billion in American Rescue Plan (ARP) money.
sheets, and related guidance from the U.S. Treasury; a video message All counties and 18 cities will receive funding directly
from Mumpower; and other additional resources. from the U.S. Treasury. These governments will need
While infrastructure expenditures for water, wastewater, to request the funding by using the U.S. Treasury’s
stormwater, and broadband projects are certainly allowed and Submission Portal. The remaining cities will receive
encouraged, this is not a comprehensive infrastructure funding their funding through the Tennessee Department of
project. In fact, transportation projects including roads and bridges Finance and Administration. One half of the funds will
are simply not allowed. The Fiscal Recovery Funds are intended to be available in 2021 (now) and the second half will be
provide support to State, local, and Tribal governments (together, available in 2022.
recipients) in responding to the impact of COVID-19 and in their Regarding public works and public utility agencies
efforts to contain COVID-19 in their communities, residents, and across the nation, Sections 602(c)(1) and 603(c)(1)
businesses. of the Act provide that funds may be used to make
necessary investments in water, sewer, or broadband
Water and Sewer Infrastructure Spending infrastructure. Stormwater infrastructure is also included
Mumpower has stated that of all the eligible uses for the American in the Interim Final Rule. The Interim Final Rule outlines
Rescue Plan money, his “personal favorite” is water and sewer eligible uses within each category, allowing for a broad
infrastructure spending. He says, “When else is money like this going
to fall out of the sky that can be used to replace Tennessee’s aging water range of necessary investments in projects that improve
and sewer infrastructure?” He also said, “The biggest financial risk to access to clean drinking water, improve wastewater and
local governments in Tennessee lies underground--in our utilities.” stormwater infrastructure systems, and provide access to
The Interim Final Rule aligns eligible uses of the Fiscal Recovery high-quality broadband service.
Funds (FRF) with the wide range of types or categories of projects By permitting funds to be used for water and sewer
that would be eligible to receive financial assistance through the infrastructure needs, Congress recognized the critical
Environmental Protection Agency’s (EPA) Clean Water State role that clean drinking water and services for the
Revolving Fund (CWSRF) or Drinking Water State Revolving Fund collection and treatment of wastewater and stormwater
(DWSRF). This could be considered the “rule of thumb” for the play in protecting public health. Understanding that
use of these funds for water and wastewater utility systems and State, local, and Tribal governments have a broad range
stormwater improvements as they apply to the CWSRF. of water and sewer infrastructure needs, the Interim
We are very fortunate to live in a state that is virtually debt-free; Final Rule provides these governments with wide
has a low cost of living and taxation; and is managed in a fiscally latitude to identify investments in water and sewer
conservative and responsible manner. We should strive to utilize infrastructure that are of the highest priority for their
these funds to improve the existing utility systems, extend service own communities.
to areas that are presently not served or are underserved by public Fiscal Recovery Funds may also be used to support the
utilities, and improve the overall quality of life for the nearly consolidation or establishment of drinking water systems.
7 million residents that we serve every day. With respect to wastewater infrastructure, recipients may
use Fiscal Recovery Funds to construct publicly owned
10 TPW July/August 2021