Montpelier Water Resource Recovery Facility Receives Major Grant from USDA Rural Development and the VT Dept. of Environmental Conservation
City officials are excited to announce the United States Department of Agriculture – Rural Development (USDA-RD) and the Vermont Agency of Natural Resources – Department of Environmental Conservation (DEC), are providing grant funding and financing to aid in the cost of major infrastructure improvements at the city’s Water Resource Recovery Facility.
The infrastructure improvements will cost approximately $16.75 million to refurbish the plant, improve digester performance and significantly reduce water consumption and waste disposal costs. Methane production (a natural by-product of waste processing) will be captured more efficiently and utilized for plant heating needs and will lead to an overall reduction in greenhouse gases. In addition to traditional sewage processing, the improvements will allow the facility to process high-strength waste products from breweries and food product manufacturers. This update will reduce land application of solids and run-off into waterways, lowering the amount of phosphorus content entering the waterways in the Lake Champlain Basin.
USDA-RD has been committed to helping Montpelier reach these goals and has championed a financing package which includes fixed-rate financing over 30 years and grant funding of $2.589 million. In addition, DEC has committed to $2.3 million in grant funding for the project under the VT Pollution Control Grant program. The combination of grant funds and below market rate interest is expected to save ratepayers in Montpelier and Berlin over $10 million in financing costs over the next 30 years.
“It is important for Montpelier to be making investments in water infrastructure to accommodate the current and future capacity. These types of infrastructure improvements are essential for community development and are the foundation for enhancing quality of life and prosperity. I give a lot of credit to the City of Montpelier’s public utilities for being national leaders in this innovative project, making long overdue upgrades to their wastewater plant and offsetting costs with energy/operational efficiencies and adding revenue streams. USDA Rural Development is proud to finance this project in partnership with the Agency of Natural Resources.”
Kurt Motyka, Deputy Director of Public Works, who is overseeing the project for the City and worked with both state and federal agencies to ensure the project was eligible for funding expressed his appreciation for the hard work of USDA-RD and VT DEC staff. Motyka said, “this project has tremendous benefit to both the local and regional environment and will allow Montpelier to reliably treat wastewater to the high-quality standards we are committed to.” Motyka went on to say “the professional team of Operators led by Chief Operator Christopher Cox has made this project possible by gaining national recognition from efficiency projects.”
Christopher will be awarded the Alfred E. Peloquin Award for operator excellence by the New England Water Environment Association in January. Neil Kamman, Water Investment Division Director with DEC added “The Department applauds Montpelier for taking on such a robust project, and are pleased to be a funding partner. This project will maintain and improve critical water resources infrastructure to support Montpelier, and the broader regional, for many years to come. These forward-looking investments save money over time, by providing opportunities for growth locally and statewide, and supporting federally-required reductions in phosphorus loading to Lake Champlain.“
“This project is a great example of a state and federal funding partnership that provides regional benefits while assisting the community in making responsible and thoughtful infrastructure improvements for future generations. Montpelier voters supported the project from day one, not because it was the least expensive option but because it was the best decision for the community. The combined grants and loan structure will reduce the financial burden on ratepayers moving forward and provide a valuable and responsible outlet for various waste streams in the region.”
Project construction is expected to be completed near the end of 2020. The city has engaged Energy Systems Group, LLC (ESG) for the design and construction of the upgrades. ESG specializes in energy efficiency, sustainability, and infrastructure modernization solutions.