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TDEC tells committee ARPA water program largely on track; few extensions requested
Summary
Deputy Commissioner Karen Saimo told the Finance, Ways and Means Committee that Tennessee's ARPA water infrastructure program covers 392 grants and roughly 1,400 projects, with 825 construction projects underway and more than 99% of plans submitted; TDEC reported limited risk of returning federal funds and two extension requests.
Deputy Commissioner Karen Saimo told the Finance, Ways and Means Committee that Tennessee's ARPA water infrastructure program awarded 392 grants and has more than 1,400 water projects underway across the state. "There is 392 grants," Saimo said, describing a mix of county and municipal recipients and a handful of nonprofits.
Saimo said 825 projects are in construction stages and "over 99% of them have plans and specs that have been submitted." She described a two-step start definition (documentation by Sept. 30 and site-inspection request by Nov. 30) and reported 85% of construction projects have met both criteria so far. Saimo also said only two projects had requested extensions and that TDEC has worked with those grantees to set realistic timelines.
The deputy commissioner outlined deadlines tied to contract and reimbursement: procurements must be submitted by Dec. 15, construction completed by next summer, and the state's grant contracts terminate on Sept. 30, 2026 so federal reimbursements can be completed by Dec. 31, 2026. She noted that TDEC assigned six full-time staff to ARPA oversight and uses a contractor to supplement outreach and engagement.
Committee members asked about risk and cost overruns. Saimo said the department monitors projects closely, escalates red flags to leadership and meets with mayors and local grant admins when needed. Representative Williams asked whether administrative fees and escalation funds had been applied; Saimo and Commissioner David Salyers confirmed $49 million in admin fees was rolled into existing contracts to help address overruns and said a separate $10 million state escalation fund remains available and has not been fully committed.
The committee asked for a post-mortem on contracting and external consultants. Representative Cochran said some on-the-ground partners felt involvement of outside auditors had slowed the process; he asked for a review when the program concludes. Saimo said TDEC will share lessons learned and provide district-specific updates on request.
