MWRA’s Local Water System Assistance Program (LWSAP) provides $210 million in interest-free loans to member water communities to perform water system improvement projects.  Community loans will be repaid to MWRA over a 10-year period.  Loan funds are approved for distribution from fiscal year 2011 through fiscal year 2020.

ALLOCATION OF LOAN FUNDS TO MEMBER COMMUNITIES

The $210 million LWSAP budget is allocated among 45 member water communities (42 metro-Boston/metro-west water communities and three Chicopee Valley Aqueduct water communities). Please see the link to the table “LWSAP Allocation and Funding Utilization by Community” which is updated periodically.  For communities that are partially served by MWRA, their allocation is prorated based on the percent use of MWRA water.  Distribution of Program funds is spread over a 10-year period FY11 through FY20.  Each community’s annual allocation is restricted to the larger of (1) 10 percent of their total allocation or (2) $500,000.  If not utilized in a given year, annual allocations roll-over and accumulate up to the community’s total allocation. The annual allocation restrictions are intended to limit MWRA loan distributions to about $21 million per year.

ELIGIBLE PROJECT COSTS

The LWSAP Program Guidelines and Application Form (see link at right) are similar to those used for the prior Local Pipeline Assistance Program.  Binding commitments to provide financial assistance for local water projects will be issued by the MWRA in the form of a financial assistance and loan agreement subject to the availability of funds.  The loan agreement will incorporate an opinion from the community's bond counsel stating that the loan is a valid general obligation of the municipality.  Financial assistance will be distributed quarterly, on or about: February 15, May 15, August 15, and November 15.  The financial assistance award will be transferred into a Massachusetts Municipal Depository Trust (MMDT) account established by the community.  All financial assistance funds, together with the earned interest from the MMDT account, will be applied to the cost of approved community water system rehabilitation projects.  The interest-free loan will be repaid to the MWRA over a ten-year period, beginning one year after the original quarterly funding distribution date.

Local projects that rehabilitate water distribution systems, improve water quality, and/or enhance system efficiency are eligible for MWRA financial assistance.  All project costs incurred on or after January 1, 2010 will be considered for eligibility in an application under the LWSAP.  Communities may utilize 100 percent of their LWSAP funding allocation on water quality based projects, as listed below:

• Replacement or abandonment of unlined water mains;
• Sliplining of unlined water mains;
• Water main cleaning and lining of unlined water mains;
• Replacement or abandonment of asbestos cement pipe or other water pipeline work performed for water quality purposes;
• Identification and replacement of water service connections constructed of lead or other services in poor condition;
• Looping of dead-end water mains;
• Water valve and hydrant installation or replacement;
• Water storage tank installation, rehabilitation or replacement; and,
• Engineering planning, design and construction services associated with the above items.

To provide communities with some flexibility with regard to water system rehabilitation needs, additional community projects (known as "tier two" projects) that target water system efficiency are also eligible for LWSAP loan funding. To emphasize the Program's goal of improving water quality, there shall be a direct correlation between the maximum amount of LWSAP funds that may be used for tier two projects and the percentage of lined water main miles in each community. Specifically, the amount of LWSAP funds that may be used for tier two projects shall be restricted to the percent of lined water main miles times the community's total LWSAP allocation. Tier two eligible projects include:

• Water meter purchase and installation;
• Water meter reading system purchase and installation;
• Water booster pump station installation and/or upgrades;
• GIS mapping and system modeling; and,
• Engineering planning, design and construction services associated with the above items.

PROGRAM BENEFITS

MWRA’s goal in providing financial assistance to member communities is to improve local water systems to help maintain high quality water as it passes from MWRA’s facilities through local pipelines to customers’ taps.  Continued improvement of local water systems is a critical element of MWRA’s Integrated Water Supply Improvement Program.  Older water mains, particularly those constructed of unlined cast-iron pipe, need to be replaced or cleaned and lined to prevent tuberculation (rust build-up), loss of disinfectant residual and potential bacteria growth.  To date, about 34 percent of local distribution systems remain unlined; representing a regional need of about $1.0–1.5 billion for future water main rehabilitation.  The LWSAP continues the efforts of the MWRA’s Local Pipeline Assistance Program that also provides water system loans to communities during the period fiscal year 2000 through fiscal year 2013.

Unlined water pipe in each community (PDF)

Lined / unlined community water mains system wide

To ensure pipeline improvements, MWRA annually rehabilitates portions of the regional network of larger pipelines that distribute water to member community systems and provides financial assistance for local water system improvements.  At present, the regional water system consists of about 66% lined water pipe.  Since 1998, MWRA has provided local communities over $240 million in interest-free loans to fund over 340 miles (about 5%) of community water main cleaning and lining or water main replacement projects. Additionally, communities have funded 40 miles (about 1%) of water main rehabilitation projects.

Unlined, tuberculated water mains

New, cement-lined water mains

PARTICIPATING WATER COMMUNITIES

MWRA has a total of 50 water communities (with Dedham/Westwood Water District counted as one), of which 45 are allocated loan funds under the Local Water System Assistance Program. The five communities ineligible for LWSAP loan funds are special cases, as follows: Clinton, Leominster (emergency only), and Worcester (emergency only), that receive untreated water from the Wachusett Reservoir; Cambridge, that receives water on an emergency-only basis; and Lynn, that receives water for the GE plant only.

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Updated September 20, 2011