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Summary of ARRA Funds to Be Distributed by the Department of Environmental Quality

Tracy Stone-Manning The Department of Environmental Quality's mission is to protect, sustain, and improve a clean and healthful environment to benefit present and future generations. We will be overseeing recovery projects that help lower energy use in state buildings and promote energy efficiency and conservation, reduce emissions from diesel engines, clean up leaking underground tanks, and provide upgrades to community drinking water and wastewater systems. These projects will create jobs while helping the DEQ better fulfill its mission. For a more in-depth look at how the DEQ is putting these funds to work visit our expanded Recovery web site.

DEQ Director Tracy Stone-Manning

DEQ ARRA Summary Funds 

 Total ARRA Funds to DEQ - $82,819,993

State Energy Program (SEP) - $25,855,000

State Buildings Energy Conservation Program - $22,310,376
Contact: DEQ Energy & Pollution Prevention Bureau, Chris Batson, 406-841-5258

The State Buildings Energy Conservation (SBEC) Program reduces operating costs in state facilities, including Montana Universities and Community Colleges. Cost effective energy efficiency projects in state-owned buildings are identified, investigated and funded. The resulting energy savings are captured and used to repay the investment. Montana will expand this existing program and fund about 60 projects identified through energy audits and approved by the 2009 Montana Legislature. Data on energy use will be collected before and after the energy conservation building retrofits. Annual energy savings are anticipated to be nearly $2 million and 430,000 MMBTU.

Renewable Energy Loan Programs - $1,711,366
Renewable Energy Loans Contact: DEQ Energy & Pollution Prevention Bureau, Kathi Montgomery, 406-841-5243

The Renewable Energy Loan program provides a financing option for homeowners, small businesses and non-profits to install alternative energy systems. Funding for this program has been primarily from air quality penalties collected by the DEQ. Using ARRA funding, Montana will supplement current state funds for loans over the next two years. These additional ARRA funds will be repaid and revolve into future renewable energy loans. Recovery funding allows DEQ to set a higher dollar amount for loans and to extend loan terms from 10 years up to 15 years while helping to keep interest rates low.

Alternative Energy Development Grant RFA - $1,000,000
Contact: DEQ Financial Services, Vicki Woodrow, 406-444-3101

In April of 2009, the Montana Legislature appropriated $1 million in federal recovery funds for grants for renewable energy development in Montana. This is a new grant program to fund technology development and to advance alternative energy systems and the feasibility of these systems. These technologies must have completed the research phase and be in production, but not yet well known or well utilized in Montana. DEQ is authorized to provide grants up to $500,000 to eligible projects for this program.

Recycling Grants - $526,300
Contact: DEQ Energy & Pollution Prevention Bureau, Bonnie Rouse, 406-841-5251

The DEQ will use ARRA funds to provide grants to increase the recycling infrastructure for Montana communities. The public benefits and energy savings realized through these efforts will be widespread and long-lasting. The greatest recycling infrastructure needs in Montana are in-state markets for collected recyclables, and community resources, such as equipment to collect, store, and transport recyclables to markets. The Montana Recycling Infrastructure Grants program will be designed to encourage innovative responses to these needs. Grant funds will be made available to local governments, as well as private businesses and nongovernmental organizations.

Education and Information Activities - $306,958
Contact: DEQ Energy & Pollution Prevention Bureau, Bonnie Rouse, 406-841-5251

Recovery funds will be used to develop an expanded information campaign directed at homeowners and businesses about the benefits of weatherizing buildings and benefits available through federal and state tax credits for energy conservation and renewable energy investments during 2009 and 2010. Funds will also be used to provide implementation and training for the adoption the 2009 International Energy Conservation Code (IECC). DEQ will also update the existing state energy emergency plan with a small portion of the funds.


Forest Service Lake Como Fly Ash Concrete Award - $165,328 - Completed

Contact: DEQ Energy & Pollution Prevention Bureau, Dusti Johnson, 406-841-5253

The U.S. Forest Service (USFS) has awarded Recovery funding to DEQ to support and coordinate an innovative pilot project using environmentally friendly fly ash concrete to construct a boat ramp at the Lake Como Recreation Area in the Bitterroot National Forest. A goal is for greater quantities of fly ash to be recycled in more valuable ways. The DEQ is offering design review, engineering design management, and requisition of construction services. DEQ is also providing the construction contract scope origination for earth work and fly ash concrete batch and placement.


State Energy Efficiency & Conservation Block Grants (EECBGs) - $9,593,500

Contact: DEQ Energy & Pollution Prevention Bureau, Bonnie Rouse, 406-841-5251 

Grants totaling $9,593,5000 will be awarded to local governments to conserve energy in their operations and services they provide. Grants of up to $200,000 will be available on a competitive basis to cities and towns in late fall.  Grants may be used for energy audits and retrofits for buildings and facilities, energy conservation in transportation, building codes and inspection services, and energy distribution and renewable energy applications. These grants will be administered to local governments. DEQ will also provide technical assistance and training for local governments who do not receive direct funding.

Energy Efficiency and Conservation Block Grants are also available to some local governments directly from the Department of Energy.  These direct grants are formula based and are available to the 10 largest cities and 10 largest counties in Montana.  Communities that receive these direct grants for an amount less than $200,000 will be eligible to compete for additional grant funding up to a combined level of $200,000.  More information on the direct or formula based grants can be found on our Energy Efficiency & Conservation Block Grants page. 


State Energy Efficient Appliance Rebate Program - $928,000 - Completed

Contact: DEQ Energy & Pollution Prevention Bureau, Lou Moore, 406-841-5280 

The Recovery Act provides $296 million for all states to establish rebate programs for residential ENERGY STAR-rated appliance products. Montana’s allotment is $928,000.

Montana Program Status: The Montana program is expected to start in May 2010. ENERGY STAR-rated refrigerators, clothes washers, freezers and dishwashers will be eligible for rebates. Consumers wishing to take part in the program will be prequalified for the rebates when the program is launched. Watch the Appliance Rebate website for further news about the program as it becomes available.

Diesel Emissions Reduction (DERA) - $1,730,000 - Completed

Contact: DEQ Energy & Pollution Prevention Bureau, Brian Spangler, 406-841-5250

In order to reduce motor vehicle diesel emissions and diesel fuel use, the DEQ will fund through a competitive grant program a number of new school bus replacements for school districts. The buses must meet 2010 EPA emission standards. The agency will also administer pass-through grants to upgrade older diesel engines to meet higher emission standards and to conserve fuel.


Diesel Coal Clean Diesel Engine Repower Grant - $700,000 - Completed

Contact: DEQ Energy & Pollution Prevention Bureau, Brian Spangler, 406-841-5250

Montana Department of Environmental Quality (DEQ) was awarded a National Clean Diesel Funding Assistance Program Grant to fund a repower project in partnership with Decker Coal Company targeting four coal hauling and dump truck engines.  The general purpose of the grant is to reduce diesel emissions and improve air quality. A $700,000 diesel engine repower project on Decker Coal haul trucks is underway. Two energy efficient engines have been fitted on haul trucks at a cost of $175,000 per unit. The old engines have been rendered unfit for use. Two more engines will be fitted during the grant period, also at $175,000 per unit.

Energy Assurance Planning (EAP) Grant - $288, 765

Contact: DEQ Energy & Pollution Prevention Bureau, Brian Spangler, 406-841-5250

The Department of Energy award for Energy Assurance Planning was signed on August 14th. The goal of this funding is for Montana to plan for energy supply disruption risks and vulnerabilities and lessen the impact that such incidents might have on the economy and the health and safety of the public. The state will use the funding to track energy emergencies and to assess the restoration and recovery times of any supply disruptions. Cyber security concerns will also be addressed. The state will also prepare for the challenges of integrating smart grid technologies and renewable energy sources into the transmission network.

 Water Quality Improvement Total Funds- $38,933,400

Program: Clean Water State Revolving Fund (SRF) - $19,239,100 - Completed
Contact: DEQ Technical & Financial Assistance Bureau, Paul Lavigne, 406-444-5321

Funds will be provided to local governments for water pollution control infrastructure including the upgrade and expansion of wastewater, reclaimed water and stormwater facilities statewide. The program uses existing water quality loan and grant program criteria and eligibility and provides additional funding to meet high priority water quality needs statewide.

Program: Drinking Water State Revolving Fund (DWSRF) - $19,500,000 - Completed
Contact: DEQ Technical & Financial Assistance Bureau, Mark Smith, 406-444-5325 

The ARRA funds will supplement the existing Drinking Water State Revolving Fund. This federal/state partnership provides loans to public water systems for to make capital improvements aimed at increasing public health protection and to provide a source of funds for other safe drinking water activities.

Program: Water Quality Planning  - $194,300 - Completed
Contact: DEQ Water Quality Planning Bureau, Mark Bostrom, 406-444-2680 

Funds will be used for data collection and planning efforts that are currently being implemented by local, regional, and interstate agencies, including approximately $28,000 towards the Flathead Lake Biological Station, and $50,000 towards the Aquatic Task Group.

 Environmental Cleanup Total Funds - $4,626,000

Program: Leaking Underground Storage Tanks - $1,301,000 - Completed
Contact: DEQ Hazardous Waste Site Cleanup Bureau, Mike Trombetta, 406-841-5045

DEQ has initiated remedial investigations and cleanup at seven locations in four communities across the State where Leaking Underground Storage Tanks have contaminated soil and groundwater. Work has included soil sampling, groundwater investigations, indoor air sampling, surveying, excavation and landfarming of contaminated soils, installation of soil vapor extraction (SVE) and air sparging (AS) remediation systems, and installation of electrical resistance heating (ERH) remediation systems. Work began in fall of 2009 and is anticipated to be completed in fall of 2011. DEQ contracts have put to work environmental engineers, sampling technicians, drill rig operators, surveyors, truck drivers, heavy equipment operators, electricians, UST installer/removers, clerical staff, and public employees.

Program: Zortman-Landusky Reclamation, Phillips County - $3,000,000
Contact: DEQ Environmental Management Bureau, Wayne Jepson, 406-444-0529

Federal stimulus funding has been received to improve the capabilities of the existing water treatment systems at the mines, reduce annual utility costs, and to repair and augment necessary site maintenance equipment. Projects include: construction of three lined 11-million gallon settling ponds at the Landusky mine and upgrading the components of the associated lime treatment facility; evaluating wind power generation potential and installing a wind turbine; upgrading components for the Swift Gulch water treatment system; purchasing sludge removal equipment; and performing preventative maintenance on existing equipment.

Program: Great Divide Sand Tailings Reclamation Project, Lewis and Clark County, Montana - $325,000
Contact: DEQ Mine Waste Cleanup Bureau, Steve Opp, 406-841-5030

The US Bureau of Land Management (BLM) has granted the Montana Department of Environmental Quality (DEQ) $325,000 in stimulus funding for the Great Divide Sand Tailings Reclamation Project in Lewis and Clark County. The Great Divide Sand Tailings Site is the remnants of the abandoned Belmont and Bald Mountain Mine Sites. It’s located about 21 miles west/northwest of Helena and approximately 0.75 mile west of Marysville. All tailings material from the site will be excavated and disposed of in an off-site repository. This project will benefit the public by having more land reclaimed, improved local water quality and protection of human health and the environment.

Project documents can be found at: