Cape Cod and Islands Water Protection Fund Management Board Votes to Modify Funding Model, Award Subsidies
FOR IMMEDIATE RELEASE (March 22, 2024) – Today, the Cape Cod and Islands Water Protection Fund Management Board (Management Board) took necessary steps to stabilize the Fund and ensure its ability to continue supporting critical wastewater and water quality projects.
During its meeting on March 22, 2024, the Management Board voted to adopt a new model for providing subsidies to projects listed on the Clean Water Intended Use Plan (IUP), beginning with projects listed on the 2023 IUP. Fund disbursements will shift from a principal forgiveness model to a model that provides a portion of the 25% subsidy over the loan term. Subsidy payments are made when principal payments on the loan are due.
“Cape Cod towns have made significant progress in implementing projects since the Fund’s inception,” said Kevin Galligan, Chair of the Management Board. “The adjustments we made today will help sustain funding for clean water projects for years to come.”
Established in 2018, the Cape Cod and Islands Water Protection Fund helps Cape Cod towns pay for necessary wastewater infrastructure and water quality remediation projects. The subsidy provided by the Fund has been a primary driver of long overdue progress on local wastewater projects.
“The certainty of the subsidy has helped garner community support for water quality project implementation and has resulted in significant action,” said Kristy Senatori, Cape Cod Commission Executive Director. “This shift allows the Fund to continue to support important local projects, without the need for supplemental funding.”
The Fund provides a 25% subsidy to projects listed on the Massachusetts Department of Environmental Protection (MassDEP) Clean Water Intended Use Plan (IUP). Since its inception, the Fund has awarded approximately $204 million in subsidies for wastewater and water quality projects.
While revenue has been largely consistent with projections, local commitment to project implementation and eligible project costs have exceeded expectations. In 2023, the IUP listed over $167 million in local projects, which, at that time, represented the most significant amount on Cape Cod for a single year. The draft 2024 IUP includes nearly $300 million in Cape projects, demonstrating the continued commitment of Cape Cod towns to advancing wastewater and water quality projects in their communities.
The Management Board also voted on March 22 to provide subsidies to thirteen projects in eight Cape Cod towns that appear on the 2024 IUP. For a list of subsidies awarded, please visit www.capecodcommission.org/cciwpf.
The Cape Cod and Islands Water Protection Fund is a dedicated fund within the state’s Clean Water Trust. It was established in 2018 to help Cape Cod and Islands towns pay for necessary wastewater infrastructure and water quality remediation projects. Its funding comes from a 2.75% excise tax on traditional lodging and short-term rentals. Find more information by visiting www.capecodcommission.org/cciwpf.
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