Division staff told the board that federal American Rescue Plan Act (ARPA) funds set aside for secondary‑meter grants are returning to the program and that several existing recipients are behind schedule. Shalane DeBernardi, who oversees grant administration, said staff would ask the board in October to identify projects that are unlikely to spend their award so those funds can be reallocated before federal deadlines.
"We need to reallocate it and find someone to use it," DeBernardi said, noting that one project completed work and returned just over $1 million. Staff said about $5.3 million has returned so far and about $18 million of awarded but unspent ARPA funds require review to avoid lapse.
Marissa Egbert, who manages program reporting, walked the board through a backward schedule that requires applicants to submit final invoices by October for staff to process reimbursements and reallocate funds in time to meet federal processing dates. "We are telling the applicants, October, we need to have your final reimbursements," she said, citing holidays and state processing deadlines that compress the schedule.
Board members expressed support for staff outreach and suggested the board might press slow applicants to explain progress in October. "If you get a few million dollars from the state of Utah, the federal government, you should anticipate having to come in and talk about it at least once," said Dana Van Horn, a board member representing the Upper Colorado River District.
Staff also briefed the board on other fund lines. Shalane DeBernardi said the Division submitted a budget request for additional dam safety funds because Jo's Valley Reservoir was re‑evaluated and will likely need about $25 million in board grant funds for repairs. The division noted the Colorado River reuse program remains over‑subscribed and that revolving construction and conservation and development funds still have limited capacity for new commitments.
Why it matters: ARPA funds are federal and may lapse if not spent by statutory or administrative deadlines. The board must balance reallocation to ready applicants with preserving the original intent of funds (secondary metering and drinking‑water protection). Jo's Valley represents a near‑term dam safety obligation that could draw large state funds.
What happens next: Staff will prepare a list of at‑risk ARPA grants and bring those applicants to the October meeting to justify retaining funds. The board asked staff to explore contractual and statutory options for clawing back unspent awards and to provide clear spending milestones in future contracts.