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Town accepts conditional $6.85 million federal offer for PFAS treatment projects

Percival Town Council · May 26, 2026
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Summary

Staff said Virginia Department of Health preliminarily offered $6,846,200 in principal forgiveness for two groundwater PFAS treatment projects (Nature Park and Main Street). Council authorized staff to notify VDH and pursue the funding, while noting the award is contingent on federal/state appropriations and compliance with grant conditions including achieving structural balance.

The Town of Percival received preliminary notices of award from the Virginia Department of Health totaling $6,846,200 in principal forgiveness for two PFAS treatment projects: $4,597,200 for the Nature Park groundwater treatment plant and $2,249,000 for the Main Street groundwater treatment plant. Staff said the funds originate from the Bipartisan Infrastructure Law and that the awards are being offered as principal forgiveness (effectively grants), but remain contingent on federal appropriations and additional conditions.

Senior Director of Engineering Andrea Broshkowitz told the council these offers would materially reduce the town's capital burden for PFAS treatment. Staff noted several contingencies: the town must notify VDH by June 8 whether it will accept the offer, conduct a self‑assessment of financial sustainability, and meet target rate criteria—specifically achieving structural balance within the water enterprise fund by project completion. Councilors pressed staff on timing, reimbursement rules (design costs are not reimbursed until a construction contract is executed), and the town's ability to meet structural balance by the regulatory deadlines. The council approved a motion directing staff to notify VDH in writing of the town's acceptance of the initial funding package and authorized the town manager to execute project documents once the funds are appropriated.