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Commission adopts Phase 2 guidance amendment; staff to seek Treasury guidance on ARPA expenditure timing
Summary
The Water Sector Commission amended Phase 2 guidance to allow projects previously terminated by the commission to reapply, and directed staff to seek Treasury guidance on ARPA expenditure timing for projects under construction.
The Water Sector Commission amended its Phase 2 guidance and approved an exception that permits projects terminated by the Water Sector Commission to apply for phase 2 and future rounds.
Staff said the only change to guidance was adding the exception on page 4 and presented it for adoption. Senator Reese moved to adopt the amended guidance and the commission approved the motion by voice vote.
Commission members also discussed program timing tied to ARPA rules. Commissioners and staff said they had jointly drafted a communication, sent this week to the state's congressional delegation, asking the U.S. Treasury for clarification about expenditure deadlines when projects are under construction but not fully expended. "We're going to have projects that may very likely be under construction, midway through their process, but not having fully expended the ARPA dollars," a commissioner said, and staff said the letter asks for additional guidance so partially completed projects are not left unfinished solely due to expenditure timing.
Staff additionally announced that the water sector portal would open Friday for the 2026-27 application round: it opens at 7:30 a.m. and closes Dec. 1 at 4:30 p.m.; application materials are available on the program website and in the portal.
The commission approved the guidance change by voice vote and instructed staff to continue collecting information on projects that have provided additional match so the commission can consider options if funds must be reallocated to ensure spending.
