You asked what federal, state, or private resources are available for a lake association to restore a pond that borders Connecticut and Massachusetts.

SUMMARY

Both the federal government and the states provide a limited amount of funding for lake restoration.

The U. S. Environmental Protection Agency (EPA) provides pollution control grants to states, which they may use for lake restoration as part of a broader pollution management plan. But it does not earmark funding specifically for lake restoration projects.

Both Connecticut and Massachusetts' environmental protection departments have competitive grant funding available for lake restoration. Generally, this funding is available only for lakes that are publicly owned or accessible to the general public.

We were unable to identify any private funding sources for lake restoration.

FEDERAL PROGRAMS

EPA provides grants to states under Section 319 of the Federal Clean Water Act (33 USC § 1329) to control nonpoint source (NPS) pollution. NPS pollution occurs over a wide area, making it difficult to pinpoint its source. By contrast, “point” pollution flows from a pipe, ditch, or other identifiable source. EPA may grant Section 319 funding for a lake restoration project if the state can show that the project is part of the state's NPS management program. But EPA does not specifically earmark funding for lake restoration, according to analyst Steve Colvin of the North American Lake Management Society.

In the past, EPA directly funded lake restoration projects through Section 314 of the Clean Water Act, also known as the Clean Lakes Program. Congress authorized Section 314 through 2005, but it has not funded the program since 1994. As an alternative, EPA suggests that lake restoration projects eligible under Section 314 may be funded under Section 319 (see “Guidance on Use of Clean Water Act and Safe Drinking Water Act Authorities to Address Management Needs for Lakes and Reservoirs,” EPA (July 9, 1998)).

Yet Section 319's primary goal is controlling NPS pollution, not restoring lakes. EPA's 1998 memo pointed out that Section 319 could not fund typical lake restoration projects, such as harvesting or dredging to control invasive plants, “unless the sources of pollution have been addressed sufficiently to assure that the pollution being remediated will not recur” (emphasis in original).

Finally, EPA suggested using the Clean Water State Revolving Fund to fund lake restoration projects. States typically borrow from this fund to finance new wastewater treatment systems, but may use it for any water quality project identified in a state's NPS management program.

STATE PROGRAMS

Connecticut

Connecticut's Environmental Protection Department (DEP) administers a competitive grant program for municipalities and lake associations to fund restoration programs on lakes used for public recreation (CGS § 22a-339(a-e)). OLR Report 99-R-0918 provides a comprehensive summary of the program's eligibility requirements and application process. It also describes DEP's scoring system for lake restoration projects. DEP uses a 200-point scale, evaluating the lake's (1) water quality (35 points maximum); (2) recreational opportunities (70 points maximum); (3) size (45 points maximum); (4) project status (30 points maximum), and (5) natural tropic tendency, meaning the level of sediment and nutrients in the water (20 points maximum).

Lakes that do not offer public access are ineligible for DEP's lake restoration program. To qualify for DEP funding, the state, municipality, or lake association must offer public access to people who live outside the town in which the lake is located (see OLR Report 00-R-1117).

Additionally, qualifying municipalities may apply for special act funding, such as the Small Town Economic Assistance Program (STEAP) or Urban Action bonds, to finance lake restoration projects, according to Chuck Lee of DEP's water management bureau. Bristol recently used $ 1. 7 million in Urban Action funding to restore a city owned lake, Lee stated. Municipalities may use Urban Action funds for projects involving economic development, transit, recreation, solid waste disposal, social services, housing, historic preservation, and redevelopment (CGS § 4-66c). The Urban Action Grant Program is open to towns designated as (1) economically distressed as defined by CGS § 32-9p(b); (2) public investment communities, or; (3) urban centers under the state's Plan of Conservation and Development. These criteria primarily apply to larger, urbanized towns. STEAP, on the other hand, is primarily aimed at towns with fewer than 30,000 residents.

Massachusetts

Massachusetts' Conservation and Recreation Department (DCR) manages recreational lakes and ponds. It administers lake restoration projects at publicly owned lakes. But it does not provide funding for privately owned lakes, according to Jim Straub of the Lakes and Ponds Program at DCR. Instead, lake associations often receive funding for restoration projects through state budget line items, Straub stated.

Also, any public or private organization in Massachusetts may apply for NPS grants through the environmental protection department. Eligible projects must (1) address the prevention, control, and abatement of NPS pollution; (2) target the major source of pollution within a watershed area; (3) match 40% of the project's total cost without use of federal funds; (4) have an appropriate method for measuring results; and (5) address activities identified within Massachusetts' NPS management plan.

Massachusetts also has a program for restoring publicly owned lakes and ponds (see OLR Report 02-R-0131).

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