The Water Infrastructure Finance Authority (WIFA) approved on June 25 the Arizona American Water loan/grant application to receive funding from the federal stimulus package funds.

Securing these funds was part of Arizona American Water’s effort along with leadership from Tubac and the Arizona Corporation Commission to mitigate the cost impact to customers of unfunded and more stringent federal requirements. Although construction on the project began on June 15, 2009, on-site construction will not occur until late summer. It is expected that the arsenic removal facility will be in service by the end of this year.

In April, WIFA announced that residents of Tubac who receive water service from Arizona American Water will benefit from a combination of federal grants and loans. Arizona American Water applied for $2.3 million in grants and loans to fund the arsenic removal facility. Final disbursements will not be determined by WIFA until after the project is completed. WIFA is responsible for administering funds provided to the State of Arizona from the federal stimulus package for water and sewer projects.

The removal facility is needed to bring local drinking water into compliance with new stringent U.S. Environmental Protection Agency (EPA) standards for arsenic levels in drinking water. In January of 2001, the EPA reduced the amount of arsenic allowable in drinking water from 50 parts per billion to 10 parts per billion. Arsenic is naturally occurring in the Southwest and the new mandate impacted hundreds of groundwater water systems in Arizona.