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DANR Announces More Than $430 Million for South Dakota Rural Water System Projects

FOR IMMEDIATE RELEASE: Wednesday, April 13, 2022
MEDIA CONTACT: Brian Walsh, brian.walsh@state.sd.us
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DANR Announces More Than $430 Million for South Dakota Rural Water System Projects
 
PIERRE, S.D. – Today, the South Dakota Department of Agriculture and Natural Resources (DANR) announced the Board of Water and Natural Resources has approved $430,651,683 in grants and loans for rural water systems throughout South Dakota. These awards are part of more than $1.1 billion in statewide awards approved by the board today.
 
The $430,651,683 total includes $152,265,282 in grants and $278,386,401 in low-interest loans to be administered by the Department of Agriculture and Natural Resources.
 
“I am pleased to announce this financial assistance is available,” said DANR Secretary Hunter Roberts. “These grants and loans will result in upgraded drinking water systems which is good for the users and the environment.”
 
The grants and loans were awarded from DANR’s Drinking Water State Revolving Fund Program, Consolidated Water Facilities Construction Program, and American Rescue Plan Act (ARPA) to the following:
 
Aurora-Brule Rural Water Systems received a $4,144,734 Drinking Water State Revolving Fund loan and a $1,855,266 ARPA grant to address water pressure and reliability issues within the system by installing 10 miles of new parallel water main, a new water storage reservoir, a booster station, multiple loops within the system, and making other line improvements. These funds and local cash will cover the cost of the project. The loan terms are 1.875 percent for 30 years.
 
Bear Butte Valley Water, Inc. received a $1,115,500 Drinking Water State Revolving Fund loan and a $5,202,000 ARPA grant to make improvements to its water system. Improvements include installation of 20 miles of water mainline to 24 new services connections to meet rural, residential, and livestock drinking water demands; construction of a new well with a higher capacity pump to provide a second water source; and miscellaneous site piping and appurtenances to address system deficiencies in the Blucksberg Service area. The loan terms are 2.125 percent for 30 years.
 
BDM Rural Water System received a $8,006,917 Drinking Water State Revolving Fund loan with $507,867 in principal forgiveness and a $3,530,083 ARPA grant to construct a new water diversion system and treatment system for additional water supplies. In addition, 18 miles of pipe will be added to expand the system, lines will be looped for redundancy and pressure stabilization, and 382 water meters will be replaced. The loan terms are 1.875 percent for 30 years.
 
Big Sioux Community Water System received a $17,788,000 Drinking Water State Revolving Fund loan to replace water mains and construct 35.5 miles of parallel water lines in various sizes. The loan terms are 2.125 percent for 30 years
 
Brookings-Deuel Rural Water System received a $5,607,560 Drinking Water State Revolving Fund loan and a $2,703,240 ARPA grant to install 22 miles of 12-inch water main to meet the growing demands of rural customers including livestock and dairy operations; reduce the amount of water loss due to existing glued-joint pipe; and to interconnect the system’s two primary water sources. In addition, six miles of 6-inch watermain will be installed to the Lake Cochrane service area to improve low pressures around the lake during periods of peak water use. This funding, local cash, and other funds will cover the cost of this project. The loan terms are 2.125 percent for 30 years.
 
Clark Rural Water System received a $5,068,000 Drinking Water State Revolving Fund loan and a $2,172,000 ARPA grant to address low pressures on the upstream side of Henry Booster Pump Station and the Crocker Ground Storage Reservoir by installing 13.5 miles of 10-inch and 7 miles of 8-inch parallel main line. The loan terms are 2.125 percent for 30 years.
 
Clay Rural Water System received a $10,736,050 Drinking Water State Revolving Fund loan, a $825,850 Consolidated Water Facilities Construction Program grant, and a $4,955,100 ARPA grant to address increased water demand, outdated and undersized water mains, and storage facility limitations. The project includes new water storage reservoirs, booster station replacement, and water main improvements. The loan terms are 2.125 percent for 30 years.
 
Davison Rural Water System received a $810,385 Drinking Water State Revolving Fund loan and a $439,615 ARPA grant to address water supply and system pressure issues. In addition, the project will increase accuracy and efficiencies by upgrading from self-reading meters to automatic meter read technology. The loan terms are 2.125 percent for 30 years. This funding and local cash will cover the project costs.
 
Grant-Roberts Rural Water System received a $4,360,400 Drinking Water State Revolving Fund loan and a $2,433,600 ARPA grant to install approximately 24 miles of pipeline and other miscellaneous apparatus to add capacity so each reservoir can be filled during high water use periods. In addition, pipeline looping and parallels will be completed to distribute water to existing and new customers as well as improve the reliability of the water system. This project will include a connection to provide bulk water service to the residents of Corona. The loan terms are 2.125 percent for 30 years.
 
Hanson Rural Water System received a $2,356,165 Drinking Water State Revolving Fund loan and a $1,273,835 ARPA grant to address water supply and pressure issues within the system by paralleling and looping existing mains to meet current demands. In addition, the project will upgrade metering methodology by moving from self-reading meters to automatic meter read technology to increase accuracy. The loan terms are 1.625 percent for 30 years. This funding package along with local funds will complete the cost of the project.
 
Joint Wellfield Inc. received a $6,592,000 Drinking Water State Revolving Fund loan and a $2,868,000 ARPA grant to construct a new gravity filtration water treatment plant to
increase the treatment capacity of the system and drill two new wells. The loan terms are 2.125 percent for 30 years. These funds along with local cash will cover the cost of the project.
 
Kingbrook Rural Water System received a $22,850,000 Drinking Water State Revolving Fund loan and a $9,900,000 grant to install an elevated tank near Arlington, a booster pump station near Bryant, and relocate and resize pipeline segments along Highway 25 North of De Smet. In addition, Kingbrook has several existing facilities that are operating beyond its firm capacity and need to be replaced or improved. These include the Badger Pump Station, DeSmet Water Treatment Plant, Chester Water Treatment Plant, Oakwood Pump Station, and the Orland Pump Station. The loan terms are 2.125 percent for 30 years. These funds along with local cash will cover the cost of the project.
 
Lewis & Clark Regional Water System received a $13,136,100 ARPA grant to expand its water system and increase capacity. This grant will greatly benefit rate payers, as the project has a direct impact on the water rates paid by its customers.
 
Lincoln County Rural Water System received a $2,653,700 Drinking Water State Revolving Fund loan and a $1,137,300 ARPA grant to install 16.5 miles of new pipeline to serve the growing developments surrounding the City of Sioux Falls and City of Harrisburg without negatively impacting existing customers. The loan terms are 2.125 percent for 30 years.
 
Mid-Dakota Rural Water System received a $29,467,750 Drinking Water State Revolving Fund loan, a $2,000,000 Consolidated Water Facilities Construction Program grant, and a $13,867,250 ARPA grant to install a new water meter system, construct parallel pipe, and make improvements to the water treatment system including a new backwash recovery system and additional membrane capacity. The loan terms are 1.875 percent for 30 years.
 
Minnehaha Community Rural Water System received a $44,349,000 Drinking Water State Revolving Fund loan to install new water main to keep up with increasing demands in the area. Improvements include installation of approximately 7.3 miles of 20-inch diameter water main, 19 miles of 16-inch diameter water main, a new control valve station, a 1.5 million gallon water tower, and a new reservoir and booster station. The loan terms are 2.125 percent for 30 years.
 
Mni’ Waste Water Company received a $1,238,302 ARPA grant to make improvements to the raw water line, which will stabilize a landslide threatening the entire system’s water source. This grant and other funds will cover the cost of these improvements.
 
Mni’ Waste Water Company also received a $6,448,598 ARPA grant to replace an undersized pipeline along Highway 63 causing high friction loss and low pressure issues. In addition, new treated water pipeline, water tower, valves, pumps, and air releases will be installed.
 
Perkins County Rural Water System received a $4,589,000 Drinking Water State Revolving Fund loan and a $2,471,000 ARPA grant to add two elevated storage tanks in their Central and Lemmon service areas to provide adequate storage on high-capacity days and add a ground storage tank at the main booster station. Transmission and distribution lines will also be upgraded to accommodate increased pressure and handle peak demands.  The loan terms are 1.625 percent for 30 years.
 
Randall Community Water District received a $6,325,375 Drinking Water State Revolving Fund loan and a $2,710,875 ARPA grant to update waterlines to accommodate growth and maintain pressure to existing customers in Cedar Grove Waterline North area, Lakeview Colony Waterline North area, and Carda Tank Waterline South area. The loan terms are 1.875 percent for 30 years.
 
Shared Resources Inc. received a $69,983,400 Drinking Water State Revolving Fund loan and a $38,276,600 ARPA grant for a joint effort between Minnehaha Community Water Corporation and the Big Sioux Community Water System. The project includes a treatment plant, well field, distribution pipeline, and two storage tanks. Shared Resources will treat and deliver the water to the two systems, which will then distribute water to their existing customer base. The loan terms are 2.125 percent for 30 years.
 
Sioux Rural Water Systems received a $3,202,650 Drinking Water State Revolving Fund loan and a $1,778,350 ARPA grant to construct a new elevated tank and pipeline to address inadequate storage in the existing system. A pipeline will be installed in two locations to improve service pressure to existing customers and provide adequate delivery to the proposed elevated tank. The loan terms are 2.125 percent for 30 years. These funds and local cash will support the project.
 
South Lincoln Rural Water System received a $10,384,082 Drinking Water State Revolving Fund loan and a $5,677,918 ARPA grant to meet increasing demands on its existing service area and construct new water system facilities. The new facilities include an elevated tank south of Canton, a pump station north of Canton, and a new water treatment plant south of Worthing. The loan terms are 2.125 percent for 30 years. These funds and local cash will support the project.
 
Southern Black Hills Water System received a $540,000 Drinking Water State Revolving Fund loan and a $3,060,000 ARPA grant to install a new well, booster pump station, storage, a new chlorination system, a SCADA system, and water main to connect the Paramount Point and Spring Creek Acres Service areas. The loan terms are 2.125 percent for 30 years.
 
Tripp County Water Users District received a $9,250,000 Drinking Water State Revolving Fund loan and a $4,050,000 ARPA grant to replace two storage tanks, parallel and loop lines to increase water pressure, and expand their well field to address supply issues. The terms of the loan are 0.0 percent for 30 years.
 
TM Rural Water District received a $5,913,600 Drinking Water State Revolving Fund loan and a $2,534,400 ARPA grant to address deficiencies in its distribution system due to increasing demands attributed to drought and new customers. Improvements includes installation of 4 miles of parallel 12-inch watermain. The loan terms are 1.625 percent for 30 years.
 
WEB Water Development Association received a $6,520,000 ARPA grant to upgrade its raw water intake pipe size from 30-inch to 48-inch in anticipation of a much larger drinking water regionalization project. This funding along with other funds will support the project.
 
West River/Lyman Jones Rural Water System received a $2,800,000 Drinking Water State Revolving Fund loan and a $1,200,000 ARPA grant to install 8-inch, 6-inch, and 4-inch PVC water main pipes to replace existing undersized main services in Mellette, Haakon, and Lyman counties. In addition, a ground storage tank will be replaced in Pennington County. The terms of the loan are 1.625 percent for 30 years.
 
Western Dakota Regional Water System received a $8,000,000 ARPA grant to hire an engineering firm to complete a facility plan and preliminary design for a drinking water expansion project from the Missouri River to Western South Dakota. The study is necessary to address source water capacity and resiliency in the event of a long-term drought for the region.
 
The American Rescue Plan Act provides grants for eligible water, wastewater, storm water, and nonpoint source projects. The state of South Dakota is making a historic investment in infrastructure by dedicating $600 million of American Rescue Plan Act funding for local water and wastewater infrastructure grants.
 
The Consolidated Water Facilities Construction Program, funded in part by revenues from the Petroleum Release Compensation Tank Inspection fee and the sale of lotto tickets, provides grants and loans for water, wastewater, and watershed projects.
 
The State of South Dakota and the U.S. Environmental Protection Agency fund the Drinking Water State Revolving Fund Program, which provides low-interest loans for public drinking water system projects. The program is funded through a combination of federal appropriations, loan repayments, and bonds.  
 
The board approved the funding at today’s meeting in Pierre.
 
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