AWU seeks SRF loans for Girdwood and Tenaina Hills projects; AWWU and Solid Waste discuss waste‑to‑energy options

Anchorage Water & Wastewater Utility (AWWU) officials briefed the Assembly on two state revolving fund (SRF) loan opportunities they seek to use for water-supply and water-main work in Girdwood and Tenaina Hills, and discussed a joint waste-to-energy exploration with Solid Waste Services to manage biosolids and landfill residuals.

“A program that the state through the DEC is offering” includes two competitive SRF tracks—emerging contaminants and compliance order funding—AWWU said. The utility identified Girdwood well replacement and a Tenaina Hills distribution project as candidates that meet program eligibility for partial forgivability.

Nut graf: AWWU said $9.5 million in potential funding is available to apply to a new Girdwood well project via a mix of SRF and a congressionally directed spending (CDS) grant; the project’s rough order-of-magnitude is $15–$20 million, and AWWU expects to supplement grants with capital funds and future assembly approvals to accept loans.

Mark Shimsharma, director of engineering, said Girdwood currently has two wells: one with an emerging‑contaminant manganese issue and another under a DEC compliance order because groundwater may be under the influence of surface water. The utility has advanced exploratory work on two wells at a new town site and plans a potential 500,000‑gallon storage tank and treatment options. Shimsharma said AWWU has committed $5,000,000 from the emerging contaminant program, $1,500,000 from an intended‑use plan allocation and a $3,000,000 CDS grant applied for through Senator Murkowski’s office; the combined available funds total about $9.5 million but additional capital will be required.

On Tenaina Hills, AWWU said the project addresses PFOS/other emerging contaminants linked to airport-area impacts. The DEC is encouraging on-property hookups for affected households in that neighborhood; AWWU described about $3.3 million committed for mainline work plus roughly $1 million projected for on-property hookups, with a likely total in the $4.5–$5.0 million range. AWWU said on‑property connection charges would be levied upon connection so non-participants would not pay.

AWWU described timeline and next steps: staff will present to the Girdwood board, introduce supplemental CIP budget amendments and resolutions to accept SRF loans, and anticipate a public hearing in the assembly schedule as required by municipal process.

On waste-to-energy, AWWU staff said biosolids production at the Aspen Water Pollution Control Facility is high‑energy material—roughly 20 dry tons per day—and the plant’s aging multi‑hearth incinerator consumes about $3 million a year in fuel and electricity. Replacing the incinerator and moving toward a combined solution with Solid Waste Services could reduce energy use, eliminate a Title V air-permitting obligation and create opportunities for energy recovery; the departments plan a characterization and siting study under a program-management office approved by resolution.

AWWU said the waste‑to‑energy effort remains at planning and procurement‑definition stages; procurement and contractor selection will follow normal municipal purchasing rules and the municipality will retain oversight of any projects and ownership structures.

Ending: Assembly members acknowledged the potential to deliver clean water to affected neighborhoods at low or no cost to homeowners if funds are awarded, and asked staff to proceed with outreach and to return with formal budget and loan acceptance items for the assembly to consider.