About the American Rescue Plan (ARP)

In March of 2021, Congress passed the American Rescue Plan (ARP) Act. This Act provided $1.9 trillion in COVID-19 relief for state and local governments, hard-hit industries, and communities; tax changes affecting individuals and business; and other provisions. ARP will provide Tennessee state government with $3.91 billion and Tennessee local governments will receive $2.28 billion between cities and counties.

One way that ARP funds may be used is for necessary investments in water infrastructure. Addressing Tennessee’s drinking water, wastewater, and stormwater infrastructure is a critical need. Reports produced by various sources cite necessary investment in Tennessee drinking water, wastewater, and stormwater infrastructure ranging from $5 to 15 billion dollars between now and 2040. 

Tennessee’s communities and economy rely on access to clean, reliable, and abundant water resources and services. Water makes Tennessee thrive and supports many significant activities, such as:

• Drinking water and sewer services for residents and businesses,
• Agriculture,
• Major industrial operations,
• Transportation of goods on navigable waters, and
• Recreational activities on lakes, rivers, and streams.

In August 2021, Tennessee’s Financial Stimulus Accountability Group (FSAG) dedicated $1.35 billion of Tennessee’s Fiscal Recovery Funds from the American Rescue Plan (ARP) to water, wastewater, and stormwater infrastructure projects. In January 2022, the US Treasury released the Final Rule on eligible uses of the funds.

The Tennessee Department of Environment and Conservation (TDEC) awarded approximately $1 billion in the form of non-competitive grants to communities for eligible water, wastewater, and stormwater infrastructure projects as part of the Tennessee Water Infrastructure Investment Program. This summary pertains to these grants only. Roughly $269 million will be allocated towards state-initiated priority projects. For more information, please refer to TDEC's Water Infrastructure Investment Plan.

Most water, wastewater, and stormwater projects are eligible for American Rescue Plan dollars. Eligibility for water, wastewater, and stormwater projects using American Rescue Plan dollars aligns with Clean Water and Drinking Water State Revolving Fund project eligibility with some additional eligible activities. This alignment is defined in the US Treasury's Final Rule (released January 6, 2022) describing the American Rescue Plan Act state and local fiscal recovery funds.”

• Overview of Clean Water State Revolving Fund Eligibilities
• Drinking Water State Revolving Fund Eligibility Handbook
• Additional Guidance for Eligible Stormwater Projects
• Sustainability and the Clean Water State Revolving Fund; A Best Practices Guide

Background

The State of Tennessee is dedicating $1.35 billion dollars in funding for water, wastewater, and stormwater infrastructure enhancements as part of the 2021 American Rescue Plan (ARP). Several entities within state government currently have responsibilities in statute and rule relating to water, wastewater, and stormwater infrastructure, including but not limited to the Tennessee Department of Environment and Conservation (TDEC), the Tennessee Department of Economic and Community Development (ECD), and the Comptroller of the Treasury. Further, a variety of stakeholders both internal and external to state government, including communities and organizations representing their interests, have a vested interest in ensuring strategic use of this funding to improve Tennessee’s water infrastructure. Given the volume of funding that the State of Tennessee will be receiving and distributing, it is prudent for the State of Tennessee to form a multidisciplinary advisory group, a Water Infrastructure Advisory Committee (WIAC), to support identification of water infrastructure priorities to advance with this funding, identifying projects and activities well suited for these funds, ensuring responsible, transparent, and compliant administration of these funds, and tracking progress, outputs and outcomes associated with projects and activities. The WIAC is chaired and convened by TDEC and reports out to the Governor’s Office Financial Stimulus Accountability Group (FSAG).

Membership

The WIAC includes representation of a wide variety of interests germane to water, wastewater, and stormwater infrastructure. TDEC serves as convener and chair of this group and provide basic administrative support. Representation on the committee follows.

Goals & Objectives

Roles/Responsibilities for WIAC Members

Meeting Materials