City applies for grants for new wastewater plant

The city of Whitefish is submitting two grant and loan applications to the state in hopes of obtaining funding to assist with the construction of an $18 million new wastewater treatment plant. City Council last month approved applications for the state Department of Natural Resources and Conservation Renewable Resource Grant and Loan Program and the Montana Department of Commerce Treasure State Endowment Program for the 2018 biennium.

The city is in the midst of the planning for the construction of a new sequencing batch reactor plant that would be the most cost-effective way to meet new discharge standards implemented by the state Department of Environmental Quality. The city is required to complete construction of the plant by May 1, 2021.

In 2012 Whitefish was issued an administrative order from DEQ as a result of several violations of the city’s wastewater collection and treatment system.

The city has been steadily completing projects to deal with the collection system issues, and submitted a preliminary engineering report to DEQ in 2016 detailing a new wastewater treatment plant, according to Public Works Director Craig Workman.

In order to complete the design and construction of the new wastewater plant the city is submitting the grant and loan applications. In the past Whitefish has been successful in such applications brining in more than $2.5 million for water and wastwater improvements, according to the city.

In addition to the grant and loan applications, Whitefish is also seeking a general nutrient variance for the new wastewater treatment plant. It is estimated that new general variance standards for nitrogen and phosphorous would add about $10 million in additional capital cost to the project and significantly higher operating costs, if a variance isn’t granted.

After reviewing its preliminary engineering report, DEQ notified that the general nutrient variance, the basis for the report, would need to be revised to comply with federal rule that would likely mean future discharge permit limits would contain much lower discharge standards for nitrogen and phosphorous, potentially resulting in considerable cost increases.

Whitefish has applied with DEQ for an individual variance that is intended for those who would have financial difficulties meeting the general variance and need an individual permit limit tailored to their specific economic situation. DEQ has a process to assess the degree of economic impact that compliance with a nutrient standard will impose upon a community.

The DEQ worksheets indicate an impact of the proposed plant, even with the individual variance, resulting in a user cost of 2.6 percent of median household income, while the suggested limit of affordability is set at 1.3 percent. Unemployment rates in Whitefish and a shortage of affordable housing are indicators that an increase in utility rates would be harmful, according to the city.

The costs of the proposed new plant facilities for Whitefish clearly satisfy the criteria established by DEQ demonstrating that substantial and widespread adverse economic impacts may occur if a variance isn’t granted, according to Workman.