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Environmental Services outlines $340M budget dominated by SRF loans; PFAS and ARPA funds drive new programs
Summary
Department of Environmental Services (DES) managers told lawmakers the agency’s operating budget is driven by pass‑through loans and federal grants, including the state revolving funds (SRF) for wastewater and drinking water and recent PFAS, ARPA and settlement monies used for remediation and grants.
DES Commissioner Bob Scott and agency leaders told the House Finance Division I that the Department of Environmental Services’ 2026–27 efficiency budget centers on large federal grants and revolving loan programs, not general‑fund spending.
Nut Graf: The department said roughly 69% of its operating budget moves out the door as loans, grants, rebates or reimbursements and that the Clean Water and Drinking Water State Revolving Funds (SRFs) constitute the single largest share of spending. DES also described a sizable portfolio of ARPA capital allocations, a drinking‑water trust fund (from prior litigation), and new PFAS response funding that municipal water systems can access.
Commissioner Scott and Susan Carlson, DES’s chief operating officer, told the panel the agency’s proposed efficiency budget totals about $340 million across funds but only about $29.5 million…
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