American Recovery and Reinvestment Coordinating Council Report 

In order to ensure proper coordination and communication with state agencies and other partners, Secretary of Environment J.D. Strong coordinated with the Secretaries of Energy and Agriculture to establish a working group for ARRA (“stimulus”) funds the state will receive for natural resource programs. Agencies included are the Department of Environmental Quality (DEQ), Water Resources Board (OWRB), Department of Wildlife Conservation (ODWC), Scenic Rivers Commission (OSRC), Corporation Commission (OCC), Department of Mines, Department of Agriculture, Food and Forestry (ODAFF) and Conservation Commission (OKCC).

Drinking Water State Revolving Fund (DWSRF) – EPA $2B nationwide OK allocation of $31,481,000 (DEQ administers technical aspects; OWRB administers financing aspects)

Clean Water State Revolving Fund (CWSRF) – EPA $4B nationwide OK allocation of $31,662,100
(OWRB administers both technical and financing aspects of program)

DWSRF eligible projects include water facility expansion, replacement improvement, and/or repair. CWSRF eligible projects include construction of new wastewater facilities or the replacement or rehabilitation of existing facilities for secondary and advanced treatment, inflow and infiltration correction, collector and interceptor sewers, combined sewer overflow correction, and related wastewater projects, nonpoint source, brownfields, green infrastructure, and related stormwater pollution control projects.

• Stimulus projects will be reviewed and ranked according to existing regulatory criteria.
• Funds are only available for projects that are listed on the OWRB’s and DEQ’s priority lists.
• Projects must have contracts awarded or be under construction within 12 months (2/17/2010).
• To be eligible, applicants must be shovel ready, meaning the following are complete:
  
• All applications and permits approved
• Environmental reviews completed
• Engineering plans approved

Diesel Emission Reduction (DERA) – EPA $300M nationwide OK allocation of $1.73 million; applying for up to $2 million in competitive grants (DEQ Air Quality Division) Thirty-percent of funding will be allocated equally to the 50 states and the District of Columbia. DEQ will partner with small school districts in the Tulsa and Oklahoma City metropolitan areas to utilize the formula funding allocation and large school districts in these areas to seek competitive grant funding for school bus retrofits, repowers, and/or replacements. Both Tulsa and Oklahoma City are considered near non-attainment areas for ozone and have been targeted to achieve emission reductions to improve air quality and help address potential non-attainment problems in these metropolitan areas.

Superfund is the federal government's program to clean up the nation's uncontrolled hazardous waste sites. No guidance from EPA has been received to-date. *Area of concern is the 10% State match requirement.

Competitive grants for evaluation and cleanup of former industrial and commercial sites are awarded largely to developers of land (private and public), rather than State agencies. DEQ will aggressively market the availability of funds, but getting the funds into the economy will depend on having willing borrowers.

Funds can be used to oversee the cleanup of underground fuel storage tank leaks, or directly pay for cleaning up leaks from federally regulated tanks where the responsible party is unknown, unwilling, unable, or the cleanup is an emergency response. Guidance is expected in 1-2 months

No funds will go directly to the OKCC, but it will partner with the Natural Resources Conservation Commission (NRCS) to utilize $14.1 million for 7 high priority dam rehabilitation projects. Oklahoma NRCS has applied for an additional $10 million to be used for new dam construction and remedial repairs to dams already built. A 35% state match will be required for the construction portion of rehabilitation projects, which the Commission will provide should bond reauthorization be passed in the current Legislative session.

Of this amount, Oklahoma can compete for $250 million in Wildland Fire Management funding. Eligible projects on state and private forestry lands include hazardous fuels reduction, ecosystem improvement, forest health and similar activities. Up to $50 million can be used “to increase biomass use on all lands.” The ODAFF submitted $6.475 million worth of proposals by the February 18, 2009 deadline for the following projects:

• Rehabilitation & Restoration of Oklahoma’s Urban & Community Forests - $2.975M
• Rural Forestry Stimulus to Create Jobs for Oklahoma - $1.25M
• Restore Riparian & Cross Timbers Forests and Enhance Water Supplies in Oklahoma - $500,000
• Expanding Non-Traditional and Energy Uses of Wood in Oklahoma - $750,000
• CWPP and Firewise Community Wildfire Risk Reduction - $1M
  

• Significant, temporary increase in administrative oversight necessary to manage programs, coupled with concern that the legislature might supplant appropriations for such oversight with ARRA funds
• Multiple reporting requirements to federal government, state government, Congress, & legislature
• Increased demands on DCS contracting process given the extremely short deadlines under ARRA
• Funding for additional auditing and oversight costs